[Federal Register Volume 69, Number 124 (Tuesday, June 29, 2004)]
[Notices]
[Page 38892]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-14655]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. PL04-10-000]


Federal Power Act; Section 305(b) Obligations; Order Advising 
Public Utilities and Their Officers and Directors of Federal Power Act 
Section 305(b) Obligations

June 22, 2004.
    Before Commissioners: Pat Wood, III, Chairman; Nora Mead Brownell, 
Joseph T. Kelliher, and Suedeen G. Kelly.
    1. Under section 305(b) of the Federal Power Act (FPA),\1\ any 
person seeking to hold the positions of officer or director of a public 
utility and officer or director of another public utility, or an 
electrical equipment supplier, or securities underwriter (with certain 
statutorily-defined exceptions) must seek prior Commission approval to 
hold any such positions.
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    \1\ 16 U.S.C. 825d (2000).
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    2. The Commission's regulations \2\ require that an application for 
approval be filed with the Commission within thirty (30) days of 
election or appointment to a qualifying position.\3\ If an application 
is filed after the 30-day period, it is considered late. The Commission 
is concerned about the timeliness of applications. The Commission has 
previously stated that it ``does not look favorably on untimely 
applications to hold interlocking positions.'' \4\ Furthermore, if 
individuals or public utilities are confused or unclear about whether 
positions mandate prior Commission approval under section 305(b), they 
are strongly encouraged to ``[seek] Commission clarification 
promptly.'' \5\
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    \2\ 18 CFR part 45 (2003).
    \3\ Certain interlocking positions require only a more limited 
filing under our regulations. See 18 CFR 45.9 (2003). Likewise, 
individuals holding other interlocking positions are permitted to 
make a more limited filing under our precedent. See, e.g., San 
Manuel Power Company LLC, 96 FERC ] 61,089 at 61,371 and Ordering 
Paragraph (E) (2001); Bridgeport Energy LLC, 83 FERC ] 61,307 at 
62,262 and Ordering Paragraph (E) (1998).
    \4\ Thomas Madison McDaniel, Jr., 24 FERC ] 61,026 at 61,107 
(1983).
    \5\ Walter F. Torrance, Jr., 29 FERC ] 61,288 at 61,588 (1984).
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    3. While the statute applies to the individual officer or director, 
the Commission urges public utilities to exercise due diligence when 
selecting individuals to serve as officers or directors and to ensure 
that current officers or directors are in compliance with the 
requirements of section 305(b). Furthermore, the Commission expects 
that all individuals who seek to serve or are serving as an officer or 
director of a public utility will be aware of their responsibilities 
under section 305(b) of the FPA and will comply with all requirements.
    4. This order is intended to reiterate these obligations and 
emphasize the importance the Commission places on compliance with the 
statute. The Commission will exercise remedial authority, as 
appropriate, to persons that fail to obtain the prior approval required 
by FPA section 305(b).
    5. The Secretary is directed to publish this order in the Federal 
Register.

    By the Commission.
Linda Mitry,
Acting Secretary.
[FR Doc. 04-14655 Filed 6-28-04; 8:45 am]
BILLING CODE 6717-01-P