[Federal Register Volume 63, Number 251 (Thursday, December 31, 1998)]
[Rules and Regulations]
[Pages 72167-72171]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-34131]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

18 CFR Parts 46 and 131

[Docket No. RM99-4-000; Order No. 601]


Filing Requirements Under Parts 46 and 131 for Persons Holding 
Interlocking Directorates

December 18, 1998.
AGENCY: Federal Energy Regulatory Commission.

ACTION: Final rule.

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SUMMARY: The Federal Energy Regulatory Commission. (Commission) is 
revising its regulations for filings by persons holding interlocking 
directorates. These revisions: delete reference to a provision which no 
longer exists; eliminate the need for notarization; simplify and 
clarify a form and its instructions; reduce the number of photocopies 
to be filed; and permit changes to be made on an electronic version 
(presently a diskette) instead of by hand on a printed form. The 
Commission believes that, by allowing these revisions, it will improve 
administrative efficiency.

EFFECTIVE DATE: January 1, 1999.

FOR FURTHER INFORMATION CONTACT:
Hadas Z. Kozlowski (Legal Information), Office of the General Counsel, 
Federal Energy Regulatory Commission, 888 First Street, NE, Washington, 
DC 20426, Telephone: (202) 208-1029
Patricia W. Morris (Technical Information), Office of Electric Power 
Regulation, Federal Energy Regulatory Commission, 888 First Street, NE, 
Washington, DC 20426, Telephone: (202) 208-6990

SUPPLEMENTARY INFORMATION: In addition to publishing the full text of 
this document in the Federal Register, the Commission also provides all 
interested persons an opportunity to inspect or copy the contents of 
this document during normal business hours in the Public Reference Room 
at 888 First Street, N.E., Room 2A, Washington, D.C. 20426.
    The Commission Issuance Posting System (CIPS) provides access to 
the texts of formal documents issued by the Commission. CIPS can be 
accessed via Internet through FERC's Homepage (http://www.ferc.fed.us) 
using the CIPS Link or the Energy Information Online icon. The full 
text of this document will be available on CIPS in ASCII and 
WordPerfect 6.1 format. CIPS is also available through the Commission's 
electronic bulletin board service at no charge to the user and may be 
accessed using a personal computer with a modem by dialing 202-208-
1397, if dialing locally, or 1-800-856-3920, if dialing long distance. 
To access CIPS, set your communications software to 19200, 14400, 
12000, 9600, 7200, 4800, 2400, or 1200 bps, full duplex, no parity, 8 
data bits and 1 stop bit. User assistance is available at 202-208-2474 
or by E-mail to [email protected].
    The document is also available through the Commission's Records and 
Information Management System (RIMS), an electronic storage and 
retrieval system of documents submitted to and issued by the Commission 
after November 16, 1981. Documents from November 1995 to the present 
can be viewed and printed. RIMS is available in the Public Reference 
Room or remotely via the Internet through FERC's Homepage using the 
RIMS link or the Energy Information Online icon. User assistance is 
available at 202-208-2222, or by E-mail to [email protected].
    Finally, the complete text on diskette in WordPerfect format may be 
purchased from the Commission's copy contractor, RVJ International Inc. 
RVJ International Inc., is located in the Public Reference Room at 888 
First Street, N.E., Washington, DC 20426.

UNITED STATES OF AMERICA, FEDERAL ENERGY REGULATORY COMMISSION

    Before Commissioners: James J. Hoecker, Chairman; Vicky A. 
Bailey, William L. Massey, Linda Breathitt, and Curt Hebert, Jr.
    Filing Requirements Under Parts 46 and 131 for Persons Holding 
Interlocking Directorates

Docket No. RM99-4-000

ORDER NO. 601

FINAL RULE

(Issued December 18, 1998)

I. Introduction

    This Final Rule revises Parts 46 and 131 of the Commission's 
regulations.1 These revisions simplify and clarify both Part 
46 of the regulations and FERC Form No. 561 (Form No. 561), and reduce 
from two to one the number of copies of this form which must be filed 
along with one original. In addition, the Final Rule encourages, but 
does not require, that changes to the so-called pre-filed Form No. 561 
2 be made on an electronic version rather than by hand. 
Finally, this Final Rule deletes reference, in Part 46, to section 
131.60

[[Page 72168]]

of the Commission's regulations, which has been deleted, and eliminates 
the need for notarization.
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    \1\ 18 CFR Parts 46 and 131.
    \2\ Currently, the Commission sends annually to each person 
holding an interlocking directorate a copy of the Form No. 561 
submitted by that person in the prior year, i.e., a pre-filed Form 
No. 561.
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II. Information Collection Statement

    The Office of Management and Budget (OMB) regulations require OMB 
to approve certain reporting and recordkeeping (collections of 
information) imposed by agency rule.3 The collection of 
information that is the subject of this Final Rule, Form No. 561, most 
recently received OMB approval on December 11, 1998 for the period 
through December 31, 2001.
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    \3\ 5 CFR 1320.12.
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    Respondents subject to the filing requirements of this Final Rule 
will not be penalized for failing to respond to these collections of 
information, unless the collections of information display a valid OMB 
control number.
    Title: FERC No. Form 561, Annual Report of Interlocking Positions.
    Action: Proposed Data Collection.
    OMB Control No.: 1902-0099.
    Respondents: Persons who hold certain defined positions with public 
utilities.
    Frequency of Responses: Annually.
    Reporting Burden: There are currently 1600 officers and directors 
of public utilities engaged in the generation, transmission, and sale 
of electric power who file reports with the Commission on an annual 
basis. The Commission estimates an average overall response rate of 0.5 
hours, for a total burden of 800 hours (1600  x  1  x  0.5 = 800).
    The Final Rule, if adopted, would simplify and streamline the 
existing reporting requirements to reduce by one half the burden on 
industry.
    Necessity of Information: The Final Rule revises the filing 
requirements in 18 CFR Part 46 and 131, necessary for fulfilling the 
requirements of Section 211 of the Public Utility Regulatory Policies 
Act which amended Part III, Section 305 of the Federal Power Act. The 
information is collected by the Commission in order to exercise 
oversight of interlocking directorates involving public utilities and 
their related activities. This oversight is for officers and directors 
of public utilities who also hold an officer, director, partner, 
appointee, or representative position with any other delineated entity.
    The Commission has submitted a copy of this Final Rule to OMB for 
informational purposes only.
    Interested persons may obtain information on the reporting 
requirements by contacting the Federal Energy Regulatory Commission, 
888 First Street, N.E., Washington, DC 20426 (Attention: Michael 
Miller, Office of the Chief Information Officer, (202) 208-1415), or 
send comments to the Office of Management and Budget, Room 10202 NEOB, 
Washington, DC 20503 (Attention: Desk Officer for the Federal Energy 
Regulatory Commission, (202) 395-3087, fax: (202) 395-7285).

III. Background

    Section 305(c) of the Federal Power Act, as amended by section 211 
of the Public Utility Regulatory Policies Act of 1978,4 
provides that, on or before April 30 of each year, any person who 
during the previous calendar year was an officer or director of a 
public utility and who held, during such calendar year, the position of 
officer, director, partner, appointee, or representative of any other 
delineated entity (i.e., an interlocking directorate), shall file with 
the Commission a written statement concerning such positions held by 
such person. Such statement must be available to the public.
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    \4\ 16 U.S.C. Sec. 825d(c).
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    Part 46 of the Commission's regulations sets forth these filing 
requirements. Section 46.4 requires that each holder of an interlocking 
directorate must annually file the information detailed in section 
46.6, in the form specified in section 131.31, i.e., Form No. 561.
    This Final Rule revises sections 46.6(d) and 131.31.

IV. Discussion

    As currently written, section 46.6(d)(1) provides, among other 
things, that the original written statement filed by the holder of an 
interlocking directorate shall be ``verified under oath in accordance 
with Sec. 131.60 of this chapter.'' Section 131.60, however, no longer 
exists. Moreover, the Commission does not believe it necessary that 
this statement be notarized. Accordingly, the Final Rule removes this 
provision.
    Similarly, the Commission no longer believes it necessary for the 
filed original written statement to be accompanied by two copies; one 
is sufficient. Accordingly, the Final Rule amends section 46.6(d)(1) to 
require only an original and one copy to be filed.
    The Final Rule also amends Form No. 561, at section 131.31, 
similarly to eliminate the notarization section and the requirement for 
the filing of two copies. Additionally, there are sections on the 
current form that are labeled ``DOE USE ONLY,'' which are unnecessary, 
and more space is provided for ``FERC Docket Number'' than currently is 
necessary. The Final Rule also makes certain minor wording changes to 
Form No. 561 and the accompanying instructions to clarify them, and 
corrects the title of section 131.31. Consequently, the Final Rule 
redesigns Form No. 561 to simplify it, and modifies the accompanying 
instructions accordingly.
    Finally, the Commission believes that it would be in the public 
interest to permit holders of interlocking directorates to make changes 
to Form No. 561 electronically, rather than by hand. To accomplish 
this, the Final Rule renumbers section 46.6(d)(2) as 46.6(d)(3) and 
adds a new section 46.6(d)(2). If this option is selected, the changes 
should be made to the pre-filled electronic version provided by the 
Commission,5 and filed with the Commission, along with a 
signed original printout of that amended form and one copy. The 
Commission emphasizes that filing electronic amendments will be 
optional, not mandatory, but will be preferred.
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    \5\ Presently, ``electronic version'' means the pre-filled 
diskette sent annually by the Commission. In the future, however, 
the Commission may make alternative methods of electronic filing 
available.
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V. National Environmental Policy Act Analysis

    The Commission concludes that promulgating this Final Rule does not 
represent a major Federal action having a significant adverse effect on 
the human environment under the Commission's regulations implementing 
the National Environmental Policy Act.6 This Final Rule is 
procedural in nature and does not substantially change the effect of 
the regulation being amended. In addition, the Final Rule involves 
information gathering, analysis, and dissemination. Therefore, this 
Final Rule falls within the categorical exemptions provided in the 
Commission's regulations.7 Consequently, neither an 
environmental impact statement nor an environmental assessment is 
required.
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    \6\ 42 U.S.C. Sec. 4332.
    \7\ 18 CFR 380.4(a)(2)(ii), (a)(5).
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VI. Regulatory Flexibility Act Certification

    The Regulatory Flexibility Act (RFA) 8 generally 
requires a description and analysis of final rules that will have 
significant economic impact on a substantial number of small entities. 
Most of the persons holding interlocks required to comply with this 
Final Rule are not officers or directors of small entities, as defined 
by the RFA. Moreover, this Final Rule is procedural

[[Page 72169]]

and ministerial in nature and will not add any burdens to any entities; 
rather it will reduce the burden on all persons to whom it applies. 
Therefore, the Commission certifies that promulgating this Final Rule 
does not represent a major Federal action having a significant economic 
impact on a substantial number of small entities.
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    \8\ 5 U.S.C. Sec. 601-612.
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VII. Administrative Findings and Effective Date

    Because this rule does not itself alter the substantive rights or 
interests of any interested persons, but rather merely reduces the 
burden on those persons who must file Form No. 561, the Commission 
finds that prior notice and comment are unnecessary under the 
Administrative Procedure Act.9
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    \9\ 5 U.S.C. Sec. 553(b)(B).
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    Because this rule does not alter the substantive rights or 
interests of any interested persons but rather relieves a restriction 
otherwise applicable to those persons who must file Form No. 561, and 
because it reduces the burden on those who must file Form No. 561, the 
Commission finds good cause to allow this rule to become effective upon 
less than 30 days' notice.10 This Final Rule therefore will 
be made effective January 1, 1999.
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    \10\ 5 U.S.C. Secs. 553(d)(1), (3).
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VIII. Congressional Notification

    The Small Business Regulatory Enforcement Fairness Act of 1996 
requires agencies to report to Congress on the promulgation of certain 
final rules prior to their effective dates.11 That reporting 
requirement does not apply to this Final Rule, however. The Commission 
finds that this Final Rule, which reduces the burden on persons who 
must file Form No. 561, does not substantially affect the rights or 
obligations of non-agency parties, and therefore falls within a 
statutory exception for rules relating to agency procedures or 
practices that do not substantially affect the rights or obligations of 
non-agency parties.12
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    \11\ 5 U.S.C. Sec. 801.
    \12\ 5 U.S.C. Sec. 804(3)(C).
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List of Subjects in 18 CFR Parts 46 and 131

    Antitrust, Electric utilities, Holding Companies, Reporting and 
recordkeeping requirements; Electric Power.

    By the Commission.
David P. Boergers,
Secretary.
    In consideration of the foregoing, the Commission amends Parts 46 
and 131, Chapter I, Title 18, Code of Federal Regulations, as set forth 
below.

PART 46--PUBLIC UTILITY FILING REQUIREMENTS AND FILING REQUIREMENTS 
FOR PERSONS HOLDING INTERLOCKING POSITIONS

    1. The authority citation for Part 46 continues to read as follows:

    Authority: Federal Power Act, as amended, 16 U.S.C. 792-828c; 
Public Utility Regulatory Policies Act of 1978, 16 U.S.C. 2601-2645; 
Department of Energy Organization Act; 42 U.S.C. 7101-7352; E.O. 
12009, 3 CFR 142 (1978).

    2. In Sec. 46.6, paragraph (d)(1) is revised, paragraph (d)(2) is 
redesignated as (d)(3), and a new paragraph (d)(2) is added to read as 
follows:


Sec. 46.6  Contents of the written statement and procedures for filing.

* * * * *
    (d)(1) Each person shall file an original and one copy of such 
written statement with the Office of Secretary of the Commission on or 
before April 30 of each year immediately following the calendar year 
during any portion of which such person held a position described in 
Sec. 46.4. The original of such statement shall be dated and signed by 
such person. The copy shall bear the date that appeared on the 
original; the signature on the copy may be stamped or typed on the 
copy.
    (2) Instead of submitting changes to the Commission on the pre-
printed Form No. 561 sent annually by the Commission, a person may 
choose to make changes to the pre-filled electronic version provided by 
the Commission. This electronic version, along with the signed original 
and one copy (as required by Paragraph (d)(c)) shall also be filed with 
the Commission.
* * * * *

PART 131--FORMS

    1. The authority citation for Part 131 continues to read as 
follows:

    Authority: 16 U.S.C. 791a-825r, 2601-2645; 31 U.S.C. 9701, 42 
U.S.C. 7101-7352.

    2. Section 131.31 is revised to read as follows:


Sec. 131.31  FERC Form No. 561, Annual report of interlocking 
positions.

    (See section 46.4 of this chapter.)

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[[Page 72170]]

[GRAPHIC] [TIFF OMITTED] TR31DE98.003



BILLING CODE 6717-01-C

[[Page 72171]]

INSTRUCTIONS FOR COMPLETING ANNUAL REPORT OF INTERLOCKING POSITIONS

GENERAL INFORMATION:

Purpose of Report
    The data collected by this report will be used by the Federal 
Energy Regulatory Commission's staff for the review and oversight of 
interlocking positions between public utilities and certain other 
entities as described below.
Who Must Submit
    This report must be completed by all persons holding 
interlocking positions between public utilities and certain other 
entities (described in the specific instructions) during any portion 
of the calendar year.
When to Submit
    Submit this report on or before April 30 of each year for the 
preceding calendar year. (For example, the report for the year 1999 
would be filed on or before April 30, 2000.)
What and Where to Submit
    Submit an original and one (1) copy of this report to: Federal 
Energy Regulatory Commission, Office of the Secretary, Attention 
FERC 561, 888 First Street NE, Washington, DC 20426
Sanctions
    This report is mandatory and is prescribed by Section 305(c)(1) 
of the Federal Power Act and 18 CFR 46.4. Failure to report may 
result in certain penalties and other sanctions as provided by law.
Where to Send Comments on Public Reporting Burden
    The public reporting burden for this collection of information 
is estimated to average 0.25 hours per response, including the time 
for reviewing the instructions, searching existing data sources, 
gathering and maintaining the data needed, and completing and 
reviewing the collection of information. Send comments regarding 
this burden estimate or any other aspect of this collection of 
information to: Federal Energy Regulatory Commission, Attn: Federal 
Energy Regulatory Commission Information Clearance Officer, 888 
First Street NE, Washington, DC 20426.
    You shall not be penalized for failure to respond to this 
collection of information unless the collection of information 
displays a valid OMB control number.

GENERAL INSTRUCTIONS

    1. Prepare this report in conformity with the requirements 
prescribed in 18 CFR 46.4.
    2. Leave blank any columns that are not applicable.

SPECIFIC INSTRUCTIONS

Item and Instruction

Respondent Information

1 and 2  Enter your full name and your business address.
3  Enter the calendar year for which this report is filed.
4 and 5  If you are authorized by this Commission to hold the 
position of officer or director in accordance with Part 45 of the 
Commission's regulations: enter in space 4 the complete FERC docket 
number of such authorization; enter in space 5 the latest date of 
such authorization. Otherwise, leave these spaces blank.
6  Enter the public utility or public utility holding company to 
which you want next year's Form 561 sent.

Public Utility Data

Col (1) and Col (2)  Enter in column (1) the name of each public 
utility in which you hold an executive position. In column (2) enter 
the appropriate code for each such position, according to the list 
below:

Code and Name

Dir  Director
CEO  Chief Executive Officer
PRES  President
VP  Vice President
SEC  Secretary
TREA  Treasurer
GM  General Manager
COMP  Comptroller
PURA  Chief Purchasing Agent
OEP  Other Executive Position

Interlocking Entity Data

Col (3) and Col (4)  Enter in Column (3) the name of each entity in 
which you hold an interlocking position. Enter the appropriate code 
for each executive position you hold in the entity named in Column 
(3), using the list below:

Code and Name

DIR  Director
CEO  Chief Executive Officer
PRES  President
VP  Vice President
SEC  Secretary
TREA  Treasurer
GM  General Manager
COMP  Comptroller
PURA  Chief Purchasing Agent
PART  Partner
APPT  Appointee
REP  Representative
OEP  Other Executive Position
Col (5)  Enter in Column (5) the appropriate code type for each 
entity listed in Column (3), using the list below:

Code and Name

FIN  Investment bank; bank holding company; foreign bank or 
subsidiary thereof doing business in the United States; other 
organization primarily engaged in the business of providing 
financial services or credit; mutual savings bank; or savings and 
loan association
FINI  Insurance company
SECU  Entity authorized by law to underwrite or participate in the 
marketing of securities of a public utility
ELEQ  Entity which produces/supplies electric equipment for the use 
of any public utility
FUEL  Entity which produces/supplies coal, natural gas, nuclear 
fuel, or other fuel for the use of any public utility
20CL  Entity specified in 18 CFR 46.3 (one of the 20 largest 
purchasers of electric energy from a utility)
CNEN  Entity which is controlled by any one of the above named 
entities
305B  Entity referred to in Section 305(b) of the Federal Power Act 
(not otherwise identified above)
Col (6)  For each entity that supplies electric equipment (ELEQ) 
named in Column (3) enter the aggregate amount of revenues from 
producing or supplying electrical equipment to any public utility 
named in column (1) in the subject calendar year, rounded to the 
nearest $100,000. Otherwise, leave this column blank.
Signature  The original of this report must be dated and signed. The 
copy must bear the date that appeared on the original. The signature 
on the copy may be stamped or typed on the copy.

[FR Doc. 98-34131 Filed 12-30-98; 8:45 am]
BILLING CODE 6717-01-P