[Federal Register Volume 64, Number 192 (Tuesday, October 5, 1999)]
[Proposed Rules]
[Pages 53959-53960]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-25797]



[[Page 53959]]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

18 CFR Part 385

[Docket No. RM98-13-002; Order No. 602-B]


Complaint Procedures

Issued September 29, 1999.
AGENCY: Federal Energy Regulatory Commission.

ACTION: Order on rehearing.

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SUMMARY: On July 28, 1999, the Commission issued Order No. 602-A, an 
order on rehearing and clarification of its final rule revising the 
Commission's complaint procedures (Order No. 602). On August 27, 1999, 
a request for rehearing of Order No. 602-A was filed. The petitioners 
are concerned that removal of references to ``preliminary'' and 
``interim'' relief would somehow preclude a complainant from seeking 
what it characterizes as ``immediate'' or ``early'' Commission action. 
The order denies rehearing but clarifies that under the complaint 
regulations a potential complainant may request ``immediate'' action on 
the merits of its claims and that any complaint in which time is of the 
essence could be filed under the Fast Track procedure in 
Sec. 385.206(h).

FOR FURTHER INFORMATION CONTACT: David Faerberg, Office of the General 
Counsel, Federal Energy Regulatory Commission, 888 First Street, NE, 
Washington, DC, 20426 (202) 208-1275.

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, NE, Room 2A, Washington, DC 20426.
    The Commission Issuance Posting System (CIPS) provides access to 
the texts of formal documents issued by the Commission from November 
14, 1994, to the present. CIPS can be accessed via Internet through 
FERC's Home Page (http://www.ferc.fed.us) using the CIPS Link or the 
Energy Information Online icon. Documents will be available on CIPS in 
ASCII and WordPerfect 8.0. User assistance is available at 202-208-2474 
or by E-mail to [email protected].
    This 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 Internet through FERC's Home Page 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, NE, Washington, DC 20426.
    On July 28, 1999, the Commission issued Order No. 602-
A,1 an order on rehearing and clarification of its final 
rule revising the Commission's complaint procedures (Order No. 
602).2 A request for rehearing has been filed urging the 
Commission to add the phrase ``immediate remedial action'' to the 
regulations to replace the references to preliminary relief that were 
deleted by Order No. 602-A.
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    \1\ 64 FR 43600 (August 11, 1999), FERC Stats. & Regs. para. 
31,076 (1999).
    \2\ 64 FR 17087 (April 8, 1999), FERC Stats. & Regs. para. 
31,071 (1999).
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    Order No. 602 revised the Commission's regulations governing 
complaints filed under the Federal Power Act, the Natural Gas Act, the 
Natural Gas Policy Act, the Public Utility Regulatory Policies Act of 
1978, the Interstate Commerce Act, and the Outer Continental Shelf 
Lands Act. Among other things, Order No. 602 provided that a complaint 
could include a request for preliminary relief pending a final merits 
decision on the complaint itself. The order stated that the standard 
for granting affirmative preliminary relief would be that employed by 
the courts for such relief: (1) likelihood of success on the merits; 
(2) whether irreparable injury to the complainant will occur if the 
relief is not granted; (3) whether the injury outweighs harm to the 
respondent or other parties if the relief is granted; and (4) other 
public interest considerations.3
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    \3\ Virginia Petroleum Jobbers Ass'n v. FPC, 259 F.2d 921, 925 
(D.C. Cir. 1958).
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    In Order No. 602-A, responding to rehearing requests, the 
Commission eliminated the preliminary relief procedure and clarified 
what types of relief the Commission may provide under the complaint 
rule. The Commission made it clear that it would act only where it has 
authority under the various statutes administered by the Commission. 
The Commission acknowledged that use of certain terminology in the 
final rule may have led to confusion and concern on the part of many 
parties. The Commission eliminated all references to preliminary relief 
other than stays or extensions of time in the complaint regulations. In 
addition, the standards in Sec. 385.206 (b)(7)(i) through (iv), which 
were based on Virginia Petroleum Jobbers Ass'n v. FPC, 259 F.2d 921 
(D.C. Cir. 1958), were deleted. These changes were designed to 
eliminate certain parties' concern that the Commission was attempting 
to establish procedures for granting relief akin to preliminary 
injunctions under standards different than those specified in the 
statutes administered by the Commission.
    The Commission stated that there may be cases in which it could 
issue what could be categorized as an ``interim'' or ``preliminary'' 
order in a complaint proceeding pursuant to existing authorities. For 
example, the Commission stated that a complainant may assert that a 
respondent's conduct is so egregious or the evidence is so substantial 
supporting its case that the Commission needs to take some immediate 
action. A complainant could indicate that its evidence is so 
substantial as to establish a prima facie case of a violation of the 
relevant statutory standard or regulatory requirement. The Commission 
stated that if the Commission were to find the complainant's case 
compelling based upon substantial evidence, the Commission sua sponte 
could issue a show cause or declaratory order based on the facts known 
at that time prior to the answer being filed. The respondent would then 
be directed to address the requirements of the order rather than file 
an answer. The Commission stated that this type of relief may be 
appropriate in certain limited circumstances and is within the 
Commission's authority to grant. Further, the Commission stated that it 
could also take such other ``interim'' or ``preliminary'' actions, as 
it can now, such as issuing an order granting a stay or an order 
granting an extension of time, stop work order, or other orders 
contemplated by certificate or hydroelectric licensing conditions. 
Finally, the Commission stated that a complainant may request forms of 
relief which it believes is within the Commission's authority to grant 
and the Commission will decide whether the relief may be granted on a 
case-by-case basis.
    On August 27, 1999, a request for rehearing of Order No. 602-A was 
filed by Undersigned Parties (hereinafter

[[Page 53960]]

referred to as the Petitioners).4 The Petitioners assert 
that a complainant's right to some form of prompt or immediate 
Commission remedy is essential in a complaint procedure responsive to 
the needs of the restructured gas and electric power industries. The 
Petitioners submit that some form of Commission remedial action as soon 
as possible after the filing of a formal complaint must be available. 
The Petitioners contend that to suggest that such remedies might be 
within the Commission's authority to grant while removing from the 
Commission's new and comprehensive complaint regulations any reference 
to such remedies, creates ambiguity about whether the Commission truly 
intends to make early remedial action a component of its revised 
complaint procedure. The Petitioners argue that where, as here, the 
Commission is adopting a comprehensive new complaint procedure, it 
should include therein some codification of each element of its new 
complaint policy.
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    \4\ The Undersigned Parties consist of the Pipeline Customer 
Coalition, American Public Power Association, Transmission Access 
Policy Study Group, National Rural Electric Cooperative Association, 
Pennsylvania Office of Consumer Advocate, and Transmission Dependent 
Utility Systems.
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    The Commission finds it unnecessary to modify the regulations as 
requested because they already encompass the kind of relief sought. In 
the Commission's view, there is a difference between preliminary and 
interim relief on the one hand, and what the Petitioners refer to as 
``immediate'' or ``early'' Commission action on complaints on the other 
hand. References to preliminary and interim relief, as well as the use 
of the Virginia Jobbers standards, led many parties to believe that the 
Commission would be granting relief akin to temporary restraining 
orders or preliminary injunctions, and that such relief would be based 
on standards other than those contained in the applicable statutes. 
Order No. 602-A eliminated such references to make clear that the 
Commission would not and could not exercise any authority beyond its 
statutory authority.
    The elimination of the references to preliminary and interim relief 
does not mean that the Commission lacks the authority to address 
complaints quickly. The Petitioners have recognized that the Commission 
may issue an interim order, which resolves some issues while leaving 
others to be determined at a later time, that is based on findings made 
pursuant to the standards contained in NGA section 5 or FPA section 
206. Moreover, as recognized in Order No. 602-A, the Commission could 
also take such interim actions as granting a stay, granting an 
extension of time, issuing stop work orders or others orders 
contemplated by certificate or hydroelectric license conditions, or 
issuing show cause orders. Other actions, such as issuing show cause or 
declaratory orders, while not final action, also convey a message to 
the parties that in the Commission's view a complainant has presented a 
solid case for the relief sought that will be granted in the absence of 
convincing evidence to the contrary.
    The Commission recognizes that timely redress of a complaint is 
essential in today's constantly evolving energy markets. In Order No. 
602, the Commission introduced the Fast Track procedures precisely for 
this reason. Because the Commission realizes that time is of the 
essence in many complaint proceedings, it committed to issuing merits 
order on Fast Track complaints within 20 days after the answer is 
filed.5 The Commission also stated that if the development 
of a factual record was necessary to the resolution of a complaint, 
hearing procedures could be compressed into a few days.
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    \5\ See, for example, North American Energy Conservation, Inc. 
v. CNG Transmission Corporation, 88 FERC para. 61255 (1999), where 
the answer to the complaint was filed on September 3, 1999, and the 
order on the merits of the complaint was issued September 17, 1999.
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    The Petitioners request for rehearing essentially deals with the 
timing of Commission action, hence their use of the words ``prompt,'' 
``immediate'' and ``early.'' In the Commission's view, the 
Petitioners'' concerns can be adequately addressed under the 
regulations adopted because any complaint in which time is of the 
essence can be filed under the Fast Track procedure in Sec. 385.206(h). 
A party filing such a complaint can show that the standard complaint 
resolution process may not provide timely relief as quickly as 
circumstances may demand and that expedited resolution under the Fast 
Track is thus appropriate. In resolving the merits of a complaint, 
whether under the Fast Track or standard procedures, the Commission 
must apply the standards contained in the statutes it administers. The 
Commission thus can reach a final resolution under its governing 
statutes through standard procedures or using expedited processing.
    The modifications contained in Order No. 602-A were not meant to 
suggest that complaints could only be resolved through a lengthy 
administrative hearing. As Sec. 385.206(h)(1) states, ``Fast Track 
procedures may include expedited action on the pleadings by the 
Commission, expedited hearing before an ALJ, or expedited action on 
requests for stay, extension of time, or other relief by the Commission 
or an ALJ.'' The revised complaint regulations do not prevent a 
potential complainant from requesting ``immediate'' action on the 
merits of its claims, but rather, are specifically designed to address 
particular situations that demand the immediate resolution requested by 
the Petitioners. The Petitioners' concerns thus already have been taken 
into account and incorporated into the regulations to provide for the 
prompt and immediate resolution they seek.

List of Subjects in 18 CFR Part 385

    Administrative practice and procedure, Electric power, Penalties, 
Pipelines, Reporting and recordkeeping requirements.

    In consideration of the foregoing, the Commission denies rehearing.

    By the Commission.
David P. Boergers,
Secretary.
[FR Doc. 99-25797 Filed 10-4-99; 8:45 am]
BILLING CODE 6717-01-P