[Federal Register Volume 67, Number 153 (Thursday, August 8, 2002)]
[Notices]
[Pages 51551-51552]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-20043]


-----------------------------------------------------------------------

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. IC02-907-000, FERC-907]


Public Information Collection and Request for Comments August 2, 
2002.

AGENCY: Federal Energy Regulatory Commission.

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

-----------------------------------------------------------------------

SUMMARY: The Federal Energy Regulatory Commission (Commission) has 
received Office of Management and Budget (OMB) approval for the 
following public information collection pursuant to 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 OMB's regulations. An agency may not 
conduct or sponsor and a person is not required to respond to a 
collection of information unless it displays a currently valid control 
number.

DATES: The Commission and OMB must receive comments on or before August 
15, 2002.

ADDRESSES: Send comments to: (1) Michael Miller, Office of the Chief 
Information Officer, CI-1, Federal Energy Regulatory Commission, 888 
First Street, NE., Washington, DC 20426. Mr. Miller can be reached by 
telephone at (202) 502-8415 and by e-mail at 
[email protected]; and
    (2) Ms. Ruth Solomon, FERC Desk Officer, Office of Information and 
Regulatory Affairs, Office of Management and Budget, Room 10202 NEOB, 
725 17th Street, NW., Washington, DC 20503. Ms. Solomon may be reached 
by telephone at (202) 395-7856 or by fax at (202) 395-7285. Ms. Solomon 
should be contacted by phone or fax.

FOR FURTHER INFORMATION CONTACT: Mark Klose, Office of the Executive 
Director, Division of Regulatory Accounting Policy, (202) 219-2595; 
Federal Energy Regulatory Commission, 888 First Street NE., Washington, 
DC 20426.

SUPPLEMENTARY INFORMATION: The Federal Energy Regulatory Commission 
(Commission) in Docket No. RM02-14-000, issued a proposed rule, to 
amend its Uniform System of Accounts for public utilities, natural gas 
companies and oil pipeline companies by establishing the documentation 
necessary to furnish readily full information concerning cash 
management agreements created by a Commission-regulated subsidiary and 
a non-regulated parent. Specifically, the Commission is requiring that 
all such cash management arrangements be in writing and specify the 
duties and responsibilities of participants in a cash management system 
(a system in which funds are transferred from multiple accounts to a 
single account in the parent company's name or a single account with 
interest earned or charged on the net cash balance position, or in 
which balances in affiliated companies' accounts are at the same bank 
as the parent company and transfers are made daily to the parent's 
account).
    The Commission's staff has reviewed several cash management 
agreements between Commission-regulated companies and their non-
regulated parent companies. With only one exception, there was no 
formal, written agreements at the gas pipelines, electric utilities and 
oil pipelines among the companies reviewed. There is potential for 
serious financial harm to Commission-regulated entities if non-
regulated parent companies default on accounts payable owed to their 
regulated subsidiaries. Accordingly, the Commission is proposing to 
require written cash management agreements for the entities it 
regulates. Cash management agreements serve to define the rights and 
responsibilities of the

[[Page 51552]]

parties to the agreements plus clarify how the funds will be advanced/
transferred and whether interest will be paid and at what rate of 
interest to the companies providing the funds.
    The Commission intends to clearly define the roles and 
responsibilities of all parties regarding transfers of cash, payment of 
bills, payment of interest, and the funds that can be taken from the 
regulated subsidiary. Cash management agreements should be reviewed and 
updated periodically to ensure that change in the corporate structure 
has not made the agreements obsolete. Additionally, cash management 
agreements must provide assurance for Commission-regulated entities and 
regulators that non-regulated parents aren't exposing their 
subsidiaries to severe financial harm for the benefit of non-regulated 
affiliated companies.
    Under the statutes that it administers, the Commission has broad 
authority to act in the public interest and to ensure that adequate 
supplies of energy are available to the nation at a reasonable cost. 
Because of the Commission's concern that cash management accounts not 
be used improperly to impair the financial health of regulated 
entities, so as to cause harm to the rate paying public, it believes it 
is appropriate to put into place these requirements to protect the 
ratepayers.
    The Commission has submitted this collection of information to OMB 
for approval. OMB's regulations describe the process that federal 
agencies must follow in order to obtain OMB approval for collections of 
information. See 5 CFR 1320. The standards for emergency processing of 
information collections appear at 5 CFR 1320.13. If OMB approves a 
reporting requirement, then it will assign an information control 
number to that requirement. OMB requires federal agencies seeking 
approval of information collections to allow the public an opportunity 
to comment on the proposed information collection. 5 CFR 
1320.5(a)(1)(iv). Therefore, the Commission is soliciting comment on:
    (1) Whether the collection of information is necessary for the 
proper performance of the Commission's functions, including whether the 
information will have practical utility:
    (2) The accuracy of the Commission's estimate of the burden of the 
collection of this information, including the validity of methodology 
and assumptions used;
    (3) The quality, utility, and clarity of the information to be 
collected; and
    (4) How to minimize the burden of the collection of this 
information on respondents, including the use of appropriate automated 
electronic, mechanical, or other forms of information technology.
    OMB Control No.: (to be assigned).
    Expiration Date: 01/31/2002.
    Title: Regulation of Cash Management Practices.
    IC No.: FERC-907.
    Respondents: Businesses or other for -profit.
    Estimated annual burden: 896 hours.
    Estimated Annual Reporting and/or Recordkeeping cost: $50,418.
    Frequency of Response: On occasion.
    Obligation to Respond: Mandatory.

Linwood A. Watson, Jr.,
Deputy Secretary.
[FR Doc. 02-20043 Filed 8-7-02; 8:45 am]
BILLING CODE 6717-01-P