[Federal Register Volume 66, Number 148 (Wednesday, August 1, 2001)]
[Notices]
[Pages 39738-39740]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-19109]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. IC01-721-000, FERC-721]


Proposed Information Collection and Request for Comments

July 26, 2001.
AGENCY: Federal Energy Regulatory Commission, DOE.

ACTION: Request for Office of Management and Budget emergencyprocessing 
of proposed information collection and request for comments.

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SUMMARY: In compliance with the requirements of section 3507(j)(1)of 
the Paperwork Reduction Act of 1995 (Pub. L. No.104-13), and 5 CFR 
1320.13 of the Office of Management and Budget (OMB) regulations, the 
Federal Energy Regulatory (Commission) is providing notice of its 
request to OMB for emergency processing of a proposed collection of 
information in connection with the ``Order Imposing Reporting 
Requirement on Natural Gas Sales to California Market,'' issued in 
Docket No. RM01-9-000. The Commission is soliciting public comment on 
the specific aspects of the information collection described below.

DATES: The Commission and OMB must receive comments on or before August 
1, 2001. Because the Commission has requested OMB to process the 
proposed collection of information in Docket No. IC01-721-000 on an 
emergency basis, comments on this collection of information should be 
filed with OMB, attention FERC Desk Officer, as soon as possible. The 
Commission is requesting that OMB make a determination on this 
information collection requirement by August 7, 2001.

ADDRESSES: FERC-721 responses should be filed with the Office of the 
Secretary (and should refer to Docket No. IC01-721-000), Federal Energy 
Regulatory Commission,888 First Street, NE., Washington, DC 20426.

FOR FURTHER INFORMATION CONTACT: Richard Howe, Office of the General 
Counsel, Federal Energy Regulatory Commission, 888 First Street, NE., 
Washington, DC 20426, (202) 208-1274; Thomas Brownfield, Office of 
Markets Tariffs and Rates, Federal Energy Regulatory Commission, 888 
First Street, NE., Washington, DC 20426, (202) 208-0666.

SUPPLEMENTARY INFORMATION: This reporting requirement is intended to 
provide the Commission with the necessary information to determine what 
action if any, it should take within its jurisdiction, with respect to 
the price of natural gas sold in the California market. Specifically, 
the Commission wants to understand better how the California natural 
gas market functions in light of the fact that the price of natural gas 
in the California market has, for substantial periods been higher than 
the prices in other markets and trading hubs throughout the country. 
The Commission is also concerned about the operation of the California 
natural gas market since gas-fired generators in California help to 
establish the market

[[Page 39739]]

clearing price for electric generation pursuant to the bidding system 
used by the California Independent System Operator. The Commission 
intends to collect information on the volumes, and prices of sales to 
the California market including transportation rates, the daily 
operational capacity of pipelines to, and in the California market, and 
the actual volumes flowing to, and in California, plus gas sales and 
transportation requirements of local distribution companies.
    The information is to assist the Commission in carrying out its 
regulatory responsibilities. First, it will help the Commission 
determine what part of the problem, if any, is within the scope of its 
jurisdiction. The information proposed to be collected will give the 
Commission an accurate picture of overall average gas costs being 
incurred by all purchasers of natural gas moving into the California 
market. The information to be collected will also enable the Commission 
to determine the extent to which the cost of interstate transportation, 
which is subject to the Commission's jurisdiction, affects the price 
for the gas commodity at the California border.
    The Commission's need for this information is enhanced by the 
relationship of natural gas prices and the price for electric power. On 
June 19, 2001, the Commission issued an order involving price 
mitigation for the California power markets. In the mitigation plan, 
electric generators' price bids during reserve emergencies must reflect 
the marginal cost of obtaining natural gas used for generation. That 
number is derived by using an average of the midpoint of the monthly 
bid-week prices at certain reported California natural gas market price 
points. Thus, the price for electric power would be dependent, to some 
extent on the price of natural gas at certain California market points.
    Accordingly, because the Commission requires the information as 
soon as possible, the Commission will require submission of the 
information on a monthly basis, to be submitted 30 days after the end 
of each month, for the six months commencing August 1, 2001 and ending 
January 31, 2002. The first report will be due October 1, 2001. The 
Commission in a separate action will request OMB approval to extend the 
reporting period to September 30, 2002, to coincide with the 
termination of the Commission's June 19, 2001 California electric power 
mitigation order.
    The information will enable the Commission and its staff to carry 
out their regulatory responsibilities of determining the extent to 
which the high price of natural gas involves a matter over which the 
Commission has jurisdiction under the Natural Gas Act and what actions 
if any, the Commission should take within its jurisdiction.

Background

    On May 18, 2001, the Commission issued an Order in Docket No. RM01-
09-000 proposing reporting requirements for natural gas sales to and in 
the California market and requested comments on this proposal. The 
reporting requirements are in response to the fact, prices of natural 
gas in California rose dramatically and exceeded the increases in other 
markets. Several complaints have requested the Commission to take 
various actions as identified in the Order. In response to these 
complaints the Commission needs to determine what part of the problem, 
if any is within the scope of its jurisdiction and what actions within 
that jurisdiction would be appropriate. The information provided so far 
by complainant and intervening parties has not been adequate to make 
these determinations.
    The Commission's statutory obligations contained in the Natural Gas 
Act are to regulate the transportation of natural gas by interstate 
pipelines, and Section 7 of the Natural Gas Act (NGA) also authorizes 
the Commission to issue certificates for the construction of new 
interstate pipelines. The Commission also has jurisdiction to regulate 
sales for resale of domestic gas by pipelines, LDCs, and their 
affiliates. These obligations authorize the Commission to ensure that 
the rates, terms and conditions of service for natural gas pipeline 
companies within the Commission's jurisdiction are just and reasonable. 
To enable the Commission to fulfill this duty, the NGA authorizes the 
Commission to conduct investigations of, and collect information. If 
after the investigation, the Commission is of the opinion that rates 
within its jurisdiction are ``unjust and unreasonable or unjustly 
discriminatory or unduly preferential,'' the Commission is authorized 
to determine and prescribe just and reasonable rates. The NGA also 
provides the Commission with the ability to consider the reasonableness 
of rates through settlement conferences or hearings.

Information Collection Statement

    The Paperwork Reduction Act of 1995, 44 U.S.C. 3507, and Office of 
Management and Budget (OMB) implementing regulations at 5 CFR 1320.10 
require OMB to approve certain reporting and recordkeeping requirements 
(collections of information) imposed by a federal agency. Upon approval 
of a collection of information, OMB will assign an OMB control number 
and an expiration date.
    The proposed information collection request will be done under a 
temporary data collection, FERC-721, ``Reporting of Natural Gas Sales 
to the California Market'' (OMB Control No. to be assigned). The 
respondents will be natural gas pipelines, marketers and local 
distribution companies. Responses to the information collection request 
will be mandatory.
    Burden Statement: Public reporting burden for this collection is 
estimated as:

------------------------------------------------------------------------
    Number of         Number of      Average burden  Total annual burden
   respondents      responses per      hours per      hours (1) x (2) x
  annually (1)     respondent (2)     response (3)           (3)
------------------------------------------------------------------------
            89              *534              208             19,847
------------------------------------------------------------------------
* Initial Reports: 178 Hours Per Respondent for data collection=15,842
  hours 30 hours per respondent for utilizing Information
  technology=2,670 hours. Subsequent reports: 3 hrs. per
  respondent=1,335 hours.

    Estimated cost burdens to respondents: The Commission estimates 
that it will cost each respondent $25,096 to respond to this 
information collection request for a total cost of $2,2334,570 (19,857 
 2,080 hours  x  $117,041).
    The reporting burden includes the total time, effort, or financial 
resources expended to generate, maintain, retain, disclose, or provide 
the information including: (1) Reviewing instructions; (2) developing, 
acquiring, installing, and utilizing technology and systems for the 
purposes of collecting, validating, verifying, processing, maintaining, 
disclosing and providing information; (3) adjusting the existing ways 
to comply with any previously applicable

[[Page 39740]]

instructions and requirements; (4) training personnel to respond to a 
collection of information; (5) searching data sources; (6) completing 
and reviewing the collection of information; and (7) transmitting, or 
otherwise disclosing the information.
    The estimate of cost for respondents is based upon salaries for 
professionals and clerical support, as well as direct and indirect 
overhead costs. Direct costs include all costs directly attributable to 
providing this information, such as administrative costs and the cost 
for information technology. Indirect or overhead costs are costs 
incurred by an organization in support of its mission. These costs 
apply to activities which benefit the whole organization rather than 
any one particular function or activity.
    Comments are invited on: (1) Whether the proposed collection of 
information is necessary for the proper performance of the functions of 
the Commission, including whether the information will have practical 
utility; (2) the accuracy of the agency's estimate of the burden of the 
proposed collection of information, including the validity of the 
methodology and assumptions used; (3) ways to enhance the quality, 
utility and clarity of the information to be collected; and (4) ways to 
minimize the burden of the collection of information on those who are 
to respond, including the use of appropriate automated, electronic, 
mechanical, or other technological collection techniques or other forms 
of information technology e.g. permitting electronic submission of 
responses.
    For copies of the OMB submission, contact Michael Miller at (202) 
208-1415. Interested persons may send comments regarding these burden 
estimates or any other aspect on the proposed information collection, 
including suggestions for reductions of burden, to the Desk Officer 
FERC, Office of Management and Budget, Room 10202 NEOB, Washington, DC 
20503, phone (202) 395-7318 or by fax at (202) 395-7285. A copy of any 
comments filed with OMB should also be sent to Michael Miller, Office 
of the Chief Information Officer, CI-1, 888 First Street NE., 
Washington, DC 20426. Michael Miller may also be reached by fax at 
(202) 208-2425, and by e-mail at [email protected].

Document Availability

    In addition to publishing the full text of this document in the 
Federal Register, the Commission also provides interested persons an 
opportunity to inspect or copy contents of this document during normal 
business hours in the Public Reference Room at 888 First Street, NE., 
Room 2A, Washington, DC 20426. Additionally, comments may be viewed and 
printed remotely via the Internet through FERC's home page, 
www.ferc.gov, and in FERC's Public Reference Room during normal 
business hours (8:30 a.m. to 5:00 p.m. Eastern time) 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 the Internet through 
FERC's Home Page, www.ferc.gov and using the CIPS link or the Energy 
Information Online icon. Documents will be available on CIPS in ASCII 
and Word Perfect 6.1. User assistance is available at (202) 208-0874 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 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 Word perfect format may 
be purchased from the Commission's copy contractor, RVJ International, 
Inc. located in the Public Reference Room at 888 First Street, NE., 
Washington, DC 20426.

Linwood A. Watson, Jr.,
Acting Secretary.
[FR Doc. 01-19109 Filed 7-31-01; 8:45 am]
BILLING CODE 6717-01-P