[Federal Register Volume 70, Number 116 (Friday, June 17, 2005)]
[Proposed Rules]
[Pages 35184-35187]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-11531]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

18 CFR Parts 45, 46, and 131

[Docket No. RM05-13-000]


Electronic Filing of Interlocking Positions and Twenty Largest 
Purchasers Information

May 26, 2005.
AGENCY: Federal Energy Regulatory Commission, DOE.

ACTION: Notice of proposed rulemaking.

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

SUMMARY: The Federal Energy Regulatory Commission (Commission) proposes 
to revise its regulations for filings by persons holding interlocking 
positions and for utilities listing their twenty largest purchasers of 
electricity. The proposed revisions provide for electronic filing. The 
modifications in this Proposed Rule are the result of a review 
conducted by the Commission's Information Assessment Team (FIAT), 
identifying the Commission's current information collections, 
evaluating their original purposes and current uses, and proposing ways 
to reduce the reporting burden on industry through the

[[Page 35185]]

elimination, reduction, streamlining or reformatting of current 
collections.

DATES: Comments are due on this Notice of Proposed Rulemaking August 
16, 2005.

ADDRESSES: Comments on this Notice of Proposed Rulemaking may be filed 
electronically via the eFiling link on the Commission's Web site at 
http://www.ferc.gov . Commenters unable to file comments electronically 
must send an original and 14 copies of their comments to: Federal 
Energy Regulatory Commission, Office of the Secretary, 888 First Street 
NE., Washington, DC, 20426. Refer to the Comment Procedures section of 
the preamble for additional information on how to file comments.

FOR FURTHER INFORMATION CONTACT:

Samuel Berrios, Jr. (Technical Information), Office of Market Oversight 
and Investigations, Federal Energy Regulatory Commission, 888 First 
Street, NE., Washington, DC 20426, (202) 502-6212.
Patricia Morris (Technical Information), Office of the Executive 
Director, Federal Energy Regulatory Commission, 888 First Street, NE., 
Washington, DC 20426, (202) 502-8730.
Joseph A. Lynch (Legal Information), Office of the General Counsel, 
Federal Energy Regulatory Commission, 888 First Street, NE., 
Washington, DC 20426, (202) 502-8497.

I. Introduction

    1. The Commission proposes modifying its regulations to modernize 
the filing method and standardize the filing format to ensure easier 
filing and use of the Application for Authority To Hold Interlocking 
Directorate Positions (FERC 520), the Annual Report of Interlocking 
Positions (FERC Form 561), and the Annual Report of a Utility's Twenty 
Largest Purchasers (FERC 566).
    2. In this Notice of Proposed Rulemaking, the Commission is 
proposing to allow for electronic filing (eFiling) of FERC 520, FERC 
Form 561, and FERC 566. As described more fully below, we propose to 
implement software changes to the Commission's Web site (http://www.ferc.gov) that will allow filers to electronically submit 
interlocking position information and related information, as well as 
to submit amended filings.
    3. The requirements for these information collections and 
descriptions of the contents of the filings are found in the Commission 
regulations at 18 CFR parts 45, 46 and 131.

II. Discussion

    4. Section 305(b) of the Federal Power Act \1\ (FPA) prohibits 
individuals from holding positions as an officer or director of more 
than one public utility, to hold the positions of officer or director 
of a public utility and of an entity authorized by law to underwrite or 
participate in the marketing of public utility securities; or to hold 
the positions of officer or director of a public utility and of an 
entity supplying electrical equipment to that particular public 
utility, unless the Commission has granted prior authorization to hold 
the positions upon a finding that neither public nor private interests 
will be adversely affected. The Commission implements this statutory 
mandate using FERC 520.
---------------------------------------------------------------------------

    \1\ 16 U.S.C. 825d(b).
---------------------------------------------------------------------------

    5. Once the Commission approves the holding of interlocking 
positions, the officer or director must file a FERC Form 561 annually 
by April 30th. FERC Form 561 is currently filed in hardcopy format. To 
assist filers in submitting the information in the prescribed format, 
however, the Commission, through Order No. 601,\2\ e-mails a 
spreadsheet to each filer. Each filer must then update the previous 
year's information on the spreadsheet to reflect that year's positions. 
The officer or director then prints the spreadsheet out in hard copy, 
signs it, and mails it to the Commission.
---------------------------------------------------------------------------

    \2\ Filing Requirements Under Parts 46 and 131 for Persons 
Holding Interlocking Directorates, Order 601, 63 FR 72167 (1998), 
FERC Stats. & Regs. Regulations Preambles 1996-2000 ] 31,069 (1998).
---------------------------------------------------------------------------

    6. In addition, each public utility must file a report, FERC 566, 
identifying its twenty largest customers annually by January 31st.
    7. The Commission proposes to require the electronic filing of FERC 
520, FERC Form 561, and FERC 566. The Commission, in recognition of the 
E-Government Act initiatives,\3\ has a Web-based FERC Online \4\ portal 
system, which, among other things, allows for electronic filing of 
certain information. It is through this system that the Commission 
proposes to accept FERC 520 and FERC 566 filings.
---------------------------------------------------------------------------

    \3\ 44 U.S.C. 36.
    \4\ http://www.ferc.gov/docs-filing/ferconline.asp. Further 
information on FERC Online can be found at http://www.ferc.gov/docs-filing/egov-act-2004.pdf.
---------------------------------------------------------------------------

    8. While the FERC 520 and FERC 566 will be filed through the 
eFiling \5\ portal, the FERC Form 561 will be filed through the eForms 
\6\ application on the Commission's Web site. The filer will complete 
the electronic FERC Form 561 using Commission provided software then 
transmit the completed form to the Commission.
---------------------------------------------------------------------------

    \5\ http://www.ferc.gov/docs-filing/efiling.asp.
    \6\ http://www.ferc.gov/docs-filing/eforms-elec.asp.
---------------------------------------------------------------------------

    9. Electronic filing of this information will allow for easier 
storage, access, retrieval, and analysis.

III. Regulatory Flexibility Act Statement

    10. The Regulatory Flexibility Act (RFA) requires rulemakings to 
contain either a description and analysis of the effect that the rule 
will have on small entities or to contain a certification that the rule 
will not have a significant economic impact on a substantial number of 
small entities.\7\
---------------------------------------------------------------------------

    \7\ 5 U.S.C. 601-12.
---------------------------------------------------------------------------

    11. The Commission concludes that this rule would not have such an 
impact on small entities. Most public utilities to which the proposed 
rule would apply do not fall within the RFA's definition of a small 
entity.\8\ Consequently, the Commission certifies that this Final Rule 
will not have ``a significant economic impact on a substantial number 
of small entities.''
---------------------------------------------------------------------------

    \8\ 5 U.S.C 601(3), citing to section 3 of the Small Business 
Act, 15 U.S.C. 632, section 3 of the Small Business Act defines a 
``small-business concern'' as a business which is independently 
owned and operated and which is not dominant in its field of 
operation. In addition, the RFA definition of ``small entity'' 
refers to the definition provided in the Small Business Act, which 
defines a ``small business concern'' as a business that is 
independently owned and operated and that is not dominant in its 
field of operation. 15 U.S.C. 632. The Small Business Size Standards 
component of the North American Industry Classification System 
defines a small electric utility as one that, including its 
affiliates, is primarily engaged in the generation, transmission, 
and/or distribution of electric energy for sale and whose total 
electric output for the preceding fiscal year did not exceed 4 
million MWh. 13 CFR 121.201.
---------------------------------------------------------------------------

IV. Environmental Analysis

    12. The Commission is required to prepare an Environmental 
Assessment or an Environmental Impact Statement for any action that may 
have a significant adverse effect on the human environment.\9\ The 
Commission has categorically excluded certain actions from this 
requirement as not having a significant effect on the human 
environment.\10\ The actions proposed to be taken here fall within the 
categorical exclusions in the Commission's regulations for rules that 
involve information gathering, analysis, and dissemination and that 
involve interlocking positions.\11\ Therefore, an environmental 
assessment is

[[Page 35186]]

unnecessary and has not been prepared for this rulemaking.
---------------------------------------------------------------------------

    \9\ Regulations Implementing the National Environmental Policy 
Act, Order No. 486, 52 FR 47897 (Dec. 17, 1987), FERC Stats. & Regs. 
Preambles 1986-1990 ] 30,783 (1987).
    \10\ 18 CFR 380.4(a)(2)(ii).
    \11\ 18 CFR 380.4(a)(5).
---------------------------------------------------------------------------

V. Information Collection Statement

    13. The Office of Management and Budget (OMB) regulations require 
OMB to approve certain information collection requirements imposed by 
agency rule.\12\ Comments are solicited on the Commission's need for 
this information, whether the information will have practical utility, 
the accuracy of provided burden estimates, ways to enhance the quality, 
utility and clarity of the information to be collected, and any 
suggested methods for minimizing respondents' burden, including the use 
of automated information techniques.
---------------------------------------------------------------------------

    \12\ 5 CFR 1320.11.
---------------------------------------------------------------------------

Estimated Annual Burden

    14. The current reporting burden is as follows:

----------------------------------------------------------------------------------------------------------------
                                                     Number of       Number of       Number of     Total annual
                 Data collection                    respondents        hours         responses         hours
----------------------------------------------------------------------------------------------------------------
FERC 520........................................              28              51               1            1450
FERC Form 561...................................            1649             .25               1             412
FERC 566........................................             183               6               1            1098
                                                 -----------------
    Total.......................................  ..............  ..............  ..............            2960
----------------------------------------------------------------------------------------------------------------

    The burden reduction will be twenty percent for each information 
collection. A total of 592 hours combined will be eliminated, resulting 
in a total annual burden of 2,368 hours.
    Title: Application for Authority to Hold Interlocking Positions 
(FERC 520).
     Annual Report of Interlocking Positions (FERC Form 561).
     Annual Report of Utility Twenty Largest Purchasers (FERC 566).
    Action: Electronic Filing of Information.
    OMB Control Nos.: 1902-0083, 1902-0099, and 1902-0114.
    Respondents: Businesses, other for profit and not-for-profit 
institutions, and persons.
    Frequency of Responses: Annual (FERC Form 561 and FERC 566) and 
Occasional (FERC 520).
    Necessity of Information: The proposed regulations will revise the 
filing methods for the FERC 520 (Application for Authorization to Hold 
Interlocking Positions), FERC Form 561 (Annual Report of Interlocking 
Positions), and FERC 520 (Annual Report of Utility's Twenty Largest 
Purchasers).
    The Commission uses the FERC 520, which is filed as necessary in 
hardcopy, to gather information to act on a filer's request to hold 
interlocking positions. The FERC 520 is a narrative that details the 
interlocking positions applied for as well as existing interlocking 
positions held by the filer. The Commission, in turn, uses the 
information (in conjunction with the filer's FERC Form 561), to make a 
determination whether or not the filer should be granted authorization 
to hold the position.
    The FERC Form 561, expressly required by section 305(c) of the 
Federal Power Act and filed annually, lists the interlocking positions 
held by the filer and is typically submitted in hardcopy. The 
Commission uses the FERC Form 561 in conjunction with the FERC 520 to 
determine if a person is currently holding an interlocking position (as 
listed in the FERC Form 561) that they did not apply for originally in 
the FERC 520. In turn, the Commission checks to see if the person was 
approved to hold an interlocking position (as stated in the FERC 520) 
but did not list the respective interlocking position in the FERC Form 
561. The Commission also uses FERC Form 561 in conjunction with FERC 
566 to identify potential conflicts of interest between utilities and 
other corporate entities.
    The FERC 566, expressly required by section 305(c) of the Federal 
Power Act and filed annually, lists the filing utility's twenty largest 
purchasers and the amount of electricity sold. As stated previously, 
the Commission uses the FERC 566 in conjunction with the FERC Form 561 
to identify potential conflicts of interest.
    The proposed revisions will reduce respondent burden by allowing 
this information to be submitted electronically. More specifically, 
respondent burden will be lowered by eliminating or substantially 
reducing printing and mailing costs thereby lessening the time to file 
and/or refile the aforementioned information. The Commission will also 
benefit through the elimination/reduction of paper processing costs.
    Internal Review: The Commission has reviewed the proposed amendment 
to its regulations modifying the filing methods for interlocking 
directorates. The filings submitted are required by the Federal Power 
Act and allow the Commission to ensure that filers are in compliance. 
The revisions to the filing requirements will provide more effective 
analysis by reducing data errors and by preserving the integrity of the 
data. Electronic filing will allow for efficient dissemination of 
information, allowing the Commission to more effectively analyze the 
information. The Commission has assured itself, by means of internal 
review, that there is specific, objective support for the burden 
estimates associated with the information retention requirements.
    Interested persons may obtain information on the filing 
requirements by contacting the following: Federal Energy Regulatory 
Commission (FERC), 888 First Street, NE., Washington, DC 20426 
[Attention: Michael Miller, Information Clearance Officer, Office of 
the Executive Director, Phone: (202) 502-8415, Fax: (202) 273-0873, e-
mail: [email protected]]. For submitting comments concerning the 
collection of information and associated burden estimates, please send 
your comments to the contact listed above and to: Office of Management 
and Budget (OMB), Office of Information and Regulatory Affairs (OIRA), 
Washington, DC 20503 [Attention: Desk Officer for FERC] Phone: (202) 
395-4650, Fax: (202) 395-7285.

VI. Comment Procedures

    15. The Commission invites interested persons to submit comments on 
the matters and issues proposed in this notice, including any related 
matters or alternative proposals that commenters may wish to discuss. 
Comments are due August 16, 2005. Comments must refer to Docket No. 
RM05-13-000, and must include the commenters name, the organization 
they represent, if applicable, and their address in their comments.
    16. Comments may be filed electronically via the eFiling link on 
the Commission's Web site at http://www.ferc.gov . The Commission 
accepts most standard word processing formats and commenters may attach 
additional files with supporting information in

[[Page 35187]]

certain other file formats. Commenters filing electronically do not 
need to make a paper filing. Commenters that are not able to file 
comments electronically must send an original and 14 copies of their 
comments to: The Federal Energy Regulatory Commission, Office of the 
Secretary, 888 First Street NE., Washington, DC 20426.
    17. All comments will be placed in the Commission's public files 
and may be viewed, printed, or downloaded remotely as described in the 
Document Availability section below. Commenters discussing this 
proposal are not required to serve copies of their comments on other 
third parties.

VII. Document Availability

    18. In addition to publishing the full text of this document in the 
Federal Register, the Commission provides all interested persons an 
opportunity to view and/or print the contents of this document via the 
Internet through the Commission's home page (http://www.ferc.gov) and 
in the Commission's Public Reference Room during normal business hours 
(8:30 a.m. to 5 p.m. eastern time) at 888 First Street, NE., Room 2A, 
Washington, DC 20426. E-mail the Public Reference Room at 
[email protected] or (202) 502-8371.
    19. From the Commission's home page on the Internet, this 
information is available in its eLibrary. The full text of this 
document is available in the eLibrary both in PDF and Microsoft Word 
format for viewing, printing, and/or downloading. To access this 
document in eLibrary, type the docket number, excluding the last three 
digits, of this document in the docket number field.
    20. User assistance is available for eLibrary and the Commission's 
Web site during our normal business hours. For assistance, contact FERC 
Online Support at [email protected] or toll-free at (866) 208-
3676, or for TTY, contact (202) 502-8659.

List of Subjects in 18 CFR Part 45, 46, and 131

    Interlocking directorates; public utilities.

    By direction of the Commission.
Linda Mitry,
Deputy Secretary.

    In consideration of the foregoing, the Commission proposes to amend 
parts 45, 46, and 131, Chapter I, Title 18, Code of Federal 
Regulations, as follows.

PART 45--APPLICATION FOR AUTHORITY TO HOLD INTERLOCKING POSITIONS

    1. The authority citation for part 45 continues to read as follows:

    Authority: Department of Energy Organization Act, 42 U.S.C. 
7101-7352 (1982); Exec. Order No. 12,009, 3 CFR 142 (1978); 
Independent Offices Appropriations Act, 31 U.S.C. 9701 (1982); 
Federal Power Act, 16 U.S.C. 971a-825r (1982); Public Utility 
Regulatory Policy Act, 16 U.S.C. 2601-2645 (1982).

    2. Revise Sec.  45.7 to read as follows:


Sec.  45.7  Form of application.

    The application, supplemental application, statement of 
supplemental information, notice of change and report required by this 
part, shall be filed with the Commission. An original hardcopy of such 
filing shall be dated, signed by the applicant and verified under oath 
in accordance with Sec.  131.60 of this chapter, and retained at the 
applicant's business address. Such filing is an electronic file that is 
classified as a ``qualified document'' in accordance with Sec.  
385.2003(c)(1) and (2) of this chapter. As a qualified document, no 
paper copy version of the filing is required unless there is a request 
for privileged or protected treatment or the document is combined with 
another document as provided in Sec.  385.2003(c)(3) or (4). Submit 
each such filing in electronic form in accordance with Sec.  385.2003.

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. Section 46.3 is amended by revising paragraph (a) to read as 
follows:


Sec.  46.3  Purchaser list.

    (a) Compilation and filing list. On or before January 31 of each 
year, each public utility shall compile a list of the purchasers 
described in paragraph (b) of this section and shall identify each 
purchaser by name and principal business address. The filing is an 
electronic file that is classified as a ``qualified document'' in 
accordance with Sec.  385.2003(c)(1) and (2) of this chapter. As a 
qualified document, no paper copy version of the filing is required 
unless there is a request for privileged or protected treatment or the 
document is combined with another document as provided in Sec.  
385.2003(c)(3) or (4). Submit the filing in electronic form in 
accordance with Sec.  385.2003. A hardcopy of the list shall be made 
publicly available through the public utility's principal business 
office.
* * * * *
    3. Section 46.6 is amended by revising paragraph (d)(1), removing 
paragraph (d)(2), and redesignating paragraph (d)(3) as paragraph 
(d)(2) and revising it to read as follows:


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

* * * * *
    (d)(1) Each person shall file an electronic version of such written 
statement in accordance with Sec.  385.2003 of this chapter with the 
Office of the 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. An original 
hardcopy of such statement shall be dated and signed by such person and 
retained at the person's business address.
    (2) Such statement shall be available to the public during regular 
business hours through the Commission's Public Reference Room and shall 
be made publicly available through the principal business offices of 
the public utility and any entity to which it applies on or before 
April 30 of the year the statement was filed with the Commission.
* * * * *

PART 131--FORMS

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

    Authority: 16 U.S.C. 791a--825n, 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.)


(Submit in electronic format in accordance with Sec.  385.2003).

[FR Doc. 05-11531 Filed 6-16-05; 8:45 am]
BILLING CODE 6717-01-P