[Federal Register Volume 77, Number 55 (Wednesday, March 21, 2012)]
[Proposed Rules]
[Pages 16494-16500]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-6759]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

18 CFR Part 35

[Docket No. RM01-8-012]


Revised Public Utility Filing Requirements for Electric Quarterly 
Reports

AGENCY: Federal Energy Regulatory Commission, Energy.

ACTION: Notice of Proposed Rulemaking.

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SUMMARY: The Federal Energy Regulatory Commission (Commission) proposes 
to revise the Electric Quarterly Report (EQR) Data Dictionary to add 
``Simultaneous Exchange'' to the list of available Product Names in the 
EQR. This revision would allow for greater transparency in wholesale 
electricity markets through a greater understanding of these complex 
transactions. The Commission invites comment on this proposal.

DATES: Comments on the proposal are due May 21, 2012.

ADDRESSES: You may submit comments on the proposal, identified by 
Docket No. RM01-8-012, by one of the following methods:
     Agency Web Site: http://www.ferc.gov. Documents created 
electronically using word processing software should be filed in native 
applications or print-to-PDF format and not in a scanned format.
     Mail/Hand Delivery: Commenters unable to file comments 
electronically must mail or hand deliver an original copy of their 
comments to: Federal Energy Regulatory Commission, Secretary of the 
Commission, 888 First Street NE., Washington, DC 20426. Additional 
requirements can be found on the Commission's Web site, see, e.g., the 
``Quick Reference Guide for Paper Submissions,'' available at http://
www/ferc.gov/docs-filing/efiling.asp, or via phone from FERC Online 
Support at 202-502-6652 or toll-free at 1-866-208-3676.

FOR FURTHER INFORMATION CONTACT: Andrew Knudsen, Federal Energy 
Regulatory Commission, Office of the General Counsel, 888 First Street 
NE., Washington, DC 20426, (202) 502-6527, [email protected];
    Andrew Weinstein, Federal Energy Regulatory Commission, Office of 
the General Counsel, 888 First Street NE., Washington, DC 20426, (202) 
502-6230, [email protected].

SUPPLEMENTARY INFORMATION:

Notice of Proposed Rulemaking

(Issued March 15, 2012)

    1. The Commission proposes to revise the Electric Quarterly Report 
(EQR) Data Dictionary to add ``Simultaneous Exchange'' to the list of 
available Product Names in the EQR. This revision would allow for 
accurate reporting of simultaneous exchange transactions, which will 
bolster transparency in wholesale electricity markets by facilitating a 
greater understanding of these complex transactions. The Commission 
invites comment on this proposal.

I. Background

A. Order No. 2001

    2. On April 25, 2002, the Commission set forth the EQR filing 
requirements in Order No. 2001.\1\ Order No. 2001 requires public 
utilities to electronically file EQRs summarizing transaction 
information for short-term and long-term cost-based sales and market-
based

[[Page 16495]]

rate sales and the contractual terms and conditions in their agreements 
for all jurisdictional services.\2\ The Commission established the EQR 
reporting requirements to help ensure the collection of information 
needed to perform its regulatory functions over transmission and 
sales,\3\ while making data more useful to the public and facilitating 
the ability of public utilities to fulfill their responsibility under 
FPA section 205(c) \4\ to have rates on file in a convenient form and 
place.\5\ As noted in Order No. 2001, the EQR data are designed to 
``provide greater price transparency, promote competition, enhance 
confidence in the fairness of the markets, and provide a better means 
to detect and discourage discriminatory practices.'' \6\ The 
requirement to file EQRs replaced the requirement to file quarterly 
transaction reports summarizing a utility's market-based rate 
transactions and sales agreements that conformed to the utility's 
tariff.
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    \1\ Revised Public Utility Filing Requirements, Order No. 2001, 
67 FR 31043 (May 8, 2002), FERC Stats. & Regs. ] 31,127, reh'g 
denied, Order No. 2001-A, 100 FERC ] 61,074, reh'g denied, Order No. 
2001-B, 100 FERC ] 61,342, order directing filing, Order No. 2001-C, 
101 FERC ] 61,314 (2002), order directing filing, Order No. 2001-D, 
102 FERC ] 61,334, order refining filing requirements, Order No. 
2001-E, 105 FERC ] 61,352 (2003), order on clarification, Order No. 
2001-F, 106 FERC ] 61,060 (2004), order revising filing 
requirements, Order No. 2001-G, 72 FR 56735 (Oct. 4, 2007), 120 FERC 
] 61,270, order on reh'g and clarification, Order No. 2001-H, 73 FR 
1876 (Jan. 10, 2008), 121 FERC ] 61,289 (2007), order revising 
filing requirements, Order No. 2001-I, 73 FR 65526 (Nov. 4, 2008), 
125 FERC ] 61,103 (2008).
    \2\ Order No. 2001, FERC Stats. & Regs. ] 31,127.
    \3\ Id. P 13-14.
    \4\ 16 U.S.C. 824d(c).
    \5\ Order No. 2001, FERC Stats. & Regs.] 31,127 at P 31.
    \6\ Id. P 31.
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    3. In Order No. 2001, the Commission also adopted a new section in 
its regulations, 18 CFR 35.10b, which requires that the EQRs must 
conform to the Commission's software and guidance posted and available 
from the Commission Web site. This obviates the need to revise 18 CFR 
35.10b to implement revisions to the software and guidance.
    4. Since issuing Order No. 2001, the Commission has provided 
guidance and refined the reporting requirements, as necessary, to 
simplify the filing requirements and to reflect changes in the 
Commission's regulations.\7\ For instance, in 2007 the Commission 
adopted an Electric Quarterly Report Data Dictionary, which provides in 
one document the definitions of certain terms and values used in filing 
EQR data.\8\ Moreover, in 2007, the Commission required transmission 
capacity reassignment to be reported in the EQR.\9\ The refinements to 
the existing EQR requirements proposed in this NOPR build upon the 
Commission's prior improvements to the reporting requirements and 
enhance the goals of providing greater price transparency, promoting 
competition, instilling confidence in the fairness of the markets, and 
providing a better means to detect and discourage discriminatory and 
manipulative practices.
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    \7\ See, e.g., Revised Public Utility Filing Requirements for 
Electric Quarterly Reports, 124 FERC ] 61,244 (2008) (providing 
guidance on the filing of information on transmission capacity 
reassignments in EQRs); Notice of Electric Quarterly Reports 
Technical Conference, 73 FR 2477 (Jan. 15, 2008) (announcing a 
technical conference to discuss changes associated with the EQR Data 
Dictionary).
    \8\ Order No. 2001-G, 120 FERC ] 61,270.
    \9\ Preventing Undue Discrimination and Preference in 
Transmission Service, Order No. 890, 72 FR 12266 (Mar. 15, 2007), 
FERC Stats. & Regs. ] 31,241, at P 817, order on reh'g, Order No. 
890-A, 73 FR 2984 (Jan. 16, 2008), FERC Stats. & Regs. ] 31,261 
(2007), order on reh'g and clarification, Order No. 890-B, 73 FR 
39092 (July 8, 2008), 123 FERC ] 61,299 (2008), order on reh'g, 
Order No. 890-C, 74 FR 12540 (March 25, 2009), 126 FERC ] 61,228 
(2009), order on clarification, Order No. 890-D, 74 FR 61511 (Nov. 
25, 2009), 129 FERC ] 61,126.
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B. Docket No. EL10-71-000

    5. In an order issued on February 16, 2012, addressing a petition 
for declaratory order filed by Puget Sound Energy, Inc. (Puget), the 
Commission expressed concerns that certain ``simultaneous exchange'' 
transactions may resemble transmission service because they involve a 
party placing power onto the power grid at one delivery point and then 
simultaneously receiving power at another delivery point.\10\ The 
Commission defined simultaneous exchanges as:
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    \10\ Puget Sound Energy, Inc., 138 FERC ] 61,121, at P 13 
(2012).

    Simultaneous exchanges occur when a pair of simultaneously 
arranged (i.e., part of the same negotiations) wholesale power 
transactions between the same counterparties in which party A sells 
an electricity product to party B at one location and party B sells 
a similar electricity product to party A at a different location 
have an overlapping delivery period. The simultaneous exchange is 
the overlapping portion (both in volume and delivery period) of 
these wholesale power transactions.\11\
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    \11\ Id. P 12.

In addressing Puget's petition, the Commission determined that when a 
simultaneous exchange transaction involves the marketing function of a 
public utility transmission provider, the public utility must seek 
prior approval from the Commission if the transaction involves its 
affiliated transmission provider's system.\12\ The Commission concluded 
that all other simultaneous exchange transactions do not require prior 
Commission approval beyond the necessary authorization under section 
205 of the Federal Power Act for the sale for resale of electric 
energy.\13\ However, due to general concerns regarding the potential 
for simultaneous exchanges to provide what amounts to transmission 
service without the reservation of service on the transmission system, 
the Commission stated that it would consider ways to enhance the 
transparency of these arrangements, including potential modifications 
to the EQR reporting requirements.\14\
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    \12\ Id. P 1.
    \13\ Id.
    \14\ Id. P 16.
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II. Discussion

A. Reporting of Product Name

    6. The Commission proposes to add the Product Name ``Simultaneous 
Exchange'' to the EQR Data Dictionary and to require all EQR filers to 
use this term, when appropriate, in the Contract Data section and the 
Transaction Data section. The Commission will define ``Simultaneous 
Exchange'' in the EQR Data Dictionary as follows:

    Simultaneous exchanges occur when a pair of simultaneously 
arranged (i.e., part of the same negotiations) wholesale power 
transactions between the same counterparties in which party A sells 
an electricity product to party B at one location and party B sells 
a similar electricity product to party A at a different location 
have an overlapping delivery period. The simultaneous exchange is 
the overlapping portion (both in volume and delivery period) of 
these wholesale power transactions.

    7. EQR filers engaging in simultaneous exchange transactions must 
report each transaction as a ``Simultaneous Exchange'' in the 
Transaction Data section. In the Contract Data section, appropriate 
reporting of these transactions depends on the contractual arrangement 
that governs the particular simultaneous exchange. If an EQR filer 
engages in simultaneous exchange arrangements under a general power 
sales contract, the EQR filer would not identify such general power 
sales agreements as ``Simultaneous Exchange'' in the Contract Data 
section, but rather the specific simultaneous exchange arrangements 
under such power sales contracts would be reported in the Transaction 
Data section. However, if an EQR filer enters into a contract that 
specifically sets forth the terms for simultaneous exchange 
arrangements, the EQR filer would categorize the contract product as 
``Simultaneous Exchange'' in the Contract Data section.
    8. Adding ``Simultaneous Exchange'' to the list of Product Names in 
the EQR Data Dictionary will enhance transparency in energy markets. 
The Commission understands that simultaneous exchanges occur in both 
organized and unorganized energy markets. These transactions are 
complicated and varied. Simultaneous exchanges may be executed through 
short-term or long-term contracts; may be arranged a day-ahead, many 
months in advance or in real-time; and may range in size. The 
Commission is

[[Page 16496]]

generally concerned that the complexity of simultaneous exchanges may 
obscure the true nature of these transactions, and may enable market 
participants to circumvent market rules. Thus, in order to enhance 
transparency, the Commission believes it is important that EQR filers 
report simultaneous exchanges in the EQR.

B. Reporting of Overlapping Transactions

    9. As described above, a simultaneous exchange occurs when a pair 
of wholesale power transactions between the same counterparties is 
arranged as part of the same negotiations, and involves overlapping 
volumes of power purchased and sold and overlapping delivery periods 
for the power purchased and sold. Only the overlapping portion of a 
simultaneous exchange transaction should be reported as a simultaneous 
exchange. The non-overlapping portions of the arrangements should be 
reported in a separate entry as a power sale. Below are two examples of 
how to report a simultaneous exchange transaction involving two power 
sales involving overlapping volumes of power sold and overlapping 
periods for the power sold.

Example A

    Transactions: Party A sells 100 MWh to Party B from 1 p.m. to 2 
p.m. at point X. Party B sells 50 MWh to Party A from 1 p.m. to 2 p.m. 
at point Y.
[GRAPHIC] [TIFF OMITTED] TP21MR12.000

    There are 2 separate transactions in this scenario that must be 
reported in the EQR (as indicated in the graphic).
    (1.) Party A will report a power sale of 50 MWh to Party B from 1 
p.m. to 2 p.m.
    (2.) Parties A and B will each report a simultaneous exchange of 50 
MWh from 1 p.m. to 2 p.m. at points X and Y.\15\
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    \15\ This assumes that both parties A and B are entities that 
are required to file EQR reports under the Commission's regulations. 
See 18 CFR 35.10b (2011).
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Example B

    Transactions: Party A sells 50 MWh to Party B for every hour from 1 
p.m. to 3 p.m. at point X. Party B sells 50 MWh to Party A for every 
hour from 2 p.m. to 4 p.m.
[GRAPHIC] [TIFF OMITTED] TP21MR12.001


[[Page 16497]]


    There are 3 separate transactions in this scenario that must be 
reported in the EQR (as indicated in the graphic).
    (1.) Party A will report a power sale of 50 MWh to Party B from 1 
p.m. to 2 p.m.
    (2.) Parties A and B will each report a simultaneous exchange of 50 
MWh from 2 p.m. to 3 p.m. at points X and Y.\16\
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    \16\ This assumes that both parties A and B are entities that 
are required to file EQR reports under the Commission's regulations. 
See 18 CFR 35.10b (2011).
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    (3.) Party B will report a power sale of 50 MWh to Party A from 3 
p.m. to 4 p.m.

C. Price Reporting of Simultaneous Exchanges

    10. The Commission proposes that parties reporting simultaneous 
exchange transactions report the price spread for these transactions, 
rather than the price assigned by the parties of the individual power 
sales that make up the simultaneous exchange.\17\ The Commission 
proposes that the price spread be listed in the Price column (Field 
64) and be reported as the net price that the filing entity 
receives per MWh for the overall simultaneous exchange position.\18\ A 
simple example of determining a price spread is given below:
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    \17\ In a simultaneous exchange, a party sells power at one 
point in return for power at another point. Under current EQR rules, 
a company reports a ``sale price'' for the point in which it makes a 
power sale. The proposed rules for reporting prices are consistent 
with this existing policy in that they treat each filer as a net 
``seller,'' with net buyers reporting a negative price spread.
    \18\ There may be transactions in which credits or compensation 
other than the nominal prices are negotiated as part of the 
simultaneous exchange. In such cases, all relevant compensation 
should be included in the determination of the price spread.

    Company A and Company B enter into a simultaneous exchange 
transaction that involves Company A selling 100 MWh to Company B at 
$100/MWh and Company B selling 100 MWh back to Company A for $110/
MWh. This transaction does not include any other credits or 
compensation as part of settlement for the simultaneous exchange. 
The price spread for this transaction would therefore be $10/MWh. 
Company A would report the price for this simultaneous exchange 
transaction as -$10/MWh (because it makes a net payment of $10 per 
MWh), and Company B would report the price for this locational 
exchange transaction as +$10/MWh (because it receives a net payment 
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of $10 per MWh).

    11. The Commission proposes the adoption of the price spread 
reporting requirement to provide necessary transparency. For the 
parties to a simultaneous exchange transaction, prices assigned to the 
power at either point in the transaction (if applicable) do not 
necessarily represent the economic values of the power being exchanged 
at those points. Such prices are merely nominal, since the parties know 
that any price at one location is partially offset by the price at the 
other location. In such cases, the nominal prices may be meaningless, 
and the relevant value of the transaction is the price spread, i.e., 
the difference between the prices at the points in a simultaneous 
exchange.\19\ Moreover, in some transactions, parties may not assign 
nominal prices to the power at either point in the simultaneous 
exchange and may simply negotiate a price spread that applies to the 
simultaneous exchange. Thus, to ensure the presence of meaningful price 
information in EQR, the Commission proposes to adopt the requirement 
that EQR filers report the price spread of each simultaneous exchange.
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    \19\ In a simultaneous exchange, the parties may be indifferent 
to the market price assigned to each point of the exchange. Thus, an 
exchange in which the power at point A is assigned a price of $10 
and the power at point B is assigned a price of $12 is economically 
the same to the parties as an exchange where the power at point A is 
assigned a price of $20 and the power at point B is assigned a price 
of $22.
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D. Special Reporting Requirement for Simultaneous Exchange Transactions

    12. Because simultaneous exchange transactions involve 
simultaneously-arranged overlapping power sales, both the point of 
delivery and the point of receipt are relevant information that should 
be reported in the EQR. Thus, the Commission proposes to require each 
party entering into a simultaneous exchange to report both the point of 
delivery and the point of receipt associated with the simultaneous 
exchange transaction.
    13. To implement this special reporting requirement, the Commission 
proposes to add a ``Simultaneous Exchange'' selection (SIMX) to the 
Point of Delivery Balancing Authority field (Field 56) in the 
Transaction Data section of the EQR. After selecting Simultaneous 
Exchange in the Product field (Field 62), EQR filers must 
select Simultaneous Exchange (SIMX) in Field 56 to ensure that 
Point of Delivery Specific Location field (Field 57) allows 
for unrestricted text. In Field 57,\20\ the entity reporting 
the transaction should specify the points of both receipt and delivery. 
The proposed reporting conventions are described and illustrated in 
Appendix B. If no specific reporting requirement is indicated for a 
particular field in Appendix B, the general reporting requirements 
associated with the EQR Data Dictionary apply.
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    \20\ EQR filers must select Simultaneous Exchange (SIMX) in 
Field 56 to ensure that Field 57 allows for 
unrestricted text.
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III. Information Collection Statement

    14. The Office of Management and Budget (OMB) regulations require 
approval of certain information collection requirements imposed by 
agency rules.\21\ Upon approval of a collection of information, OMB 
will assign an OMB control number and an expiration date. Respondents 
subject to the filing requirements of an agency rule will not be 
penalized for failing to respond to these collections of information 
unless the collections of information display a valid OMB control 
number. The Paperwork Reduction Act (PRA) \22\ requires each federal 
agency to seek and obtain OMB approval before undertaking a collection 
of information directed to ten or more persons or contained in a rule 
of general applicability or addressed to all or a substantial majority 
of an industry.\23\
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    \21\ 5 CFR 1320.8.
    \22\ 44 U.S.C. 3501-3520.
    \23\ OMB's regulations at 5 CFR 1320.3(c)(4) require that ``Any 
recordkeeping, reporting, or disclosure requirement contained in a 
rule of general applicability is deemed to involve ten or more 
persons'', or ``Any collection of information addressed to all or a 
substantial majority of an industry is presumed to involve ten or 
more persons.''
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    15. The following collection of information contained in this 
Proposed Rule is subject to review by the Office of Management and 
Budget (OMB) under section 3507(d) of the Paperwork Reduction Act of 
1995.\24\ OMB's regulations require approval of certain information 
collection requirements imposed by agency rules.\25\ The Commission 
solicits comments on the Commission's need for this information, 
whether the information will have practical utility, the accuracy of 
the burden estimates, ways to enhance the quality, utility, and clarity 
of the information to be collected or retained, and any suggested 
methods for minimizing respondents' burden, including the use of 
automated information techniques.
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    \24\ 44 U.S.C. 3507(d) (2006).
    \25\ 5 CFR 1320.11 (2010).
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    16. The Commission's estimate of the additional average annual 
Public Reporting Burden and cost \26\ related to the proposed rule in 
Docket RM01-8-012 follows.
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    \26\ For purposes of calculating the annual average, the 
implementation burden and cost have been averaged, spread over the 
3-year period, and added to the recurring burden and cost.

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[[Page 16498]]

[GRAPHIC] [TIFF OMITTED] TP21MR12.002

    17. In calculating the number of respondents per year, the 
Commission looked at only those respondents that reported transactions 
during 2011. There were 1,143 respondents that filed transaction data 
in the EQR in 2011; therefore, the Commission proposes to use 1,143 as 
the total number of respondents. Although the Commission estimates the 
total number of current respondents to be 1,143, this figure overstates 
the number of corporate families filing the EQR because some of the 
filings were made separately by affiliates from the same company. For 
instance, of the 1,143 unique respondent names, 72 were affiliates of 
NextEra Energy. This trend is common among EQR filers.
    18. The Commission recognizes that there will be an increased 
burden involved in the initial implementation associated with filing 
simultaneous exchange transactions in the EQR. This burden may include 
modifying the utility's software to capture the transaction data from 
the utility's internal computer systems and to place that data into a 
format that captures the new product name ``Simultaneous Exchanges'' 
and associated data as required by this order. It is difficult to 
estimate how many parties use simultaneous exchanges. However, we 
believe that many parties currently report their simultaneous exchanges 
using the existing Product Name ``Exchange.'' Of the 1,143 respondents 
that filed transaction data in 2011, 21 respondents (or approximately 2 
percent of the total respondents) filed transaction data using the 
Product Name ``Exchange.'' With such a small portion of the population 
of respondents using the current ``Exchange'' Product Name, we estimate 
that fewer than the 1,143 respondents will be affected if the proposed 
Product Name were adopted. In an effort to provide a fair estimate, we 
will assume that the percentage of affected respondents will be twice 
the current 2 percent that are reporting exchange transactions in the 
EQR. We estimate that 4 percent of the respondents, or 46 respondents, 
will be affected by the proposed change. For these estimated 46 
respondents, we estimate that the additional data requirement will 
involve an initial burden of 10 hours.
    19. For the recurring effort involved in filing the EQR each 
subsequent quarter, we anticipate that the burden will be minimal, 
particularly as filing transaction data will be automated for companies 
that have designed their systems to account for the required format. We 
have estimated that current filers spend about 16 hours to meet the 
existing recurring requirements of filing EQRs. With the additional 
proposed Product Name, we estimate that filers' recurring burden will 
increase by 0.5 hours.
    Cost to Comply: The Commission has projected the cost of compliance 
to be $16,927.77.
    Total Annual Hours for Collection 245.33 hours @ $69 an hour \27\ = 
$16,927.77
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    \27\ It is assumed that this collection of information requires 
some effort from many types of employees. Therefore, the Commission 
is using an estimate that is derived from an average FERC employee 
cost (wages plus benefits), which includes analysts, managers, 
attorneys, administrative staff, and others. This methodology 
assumes that respondent entities employee costs are similar to FERC 
employee costs.
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    Average cost per entity 16,927.77/46 = $368 (rounded).
    Title: FERC-516, Electric Rate Schedules and Tariff Filings.
    Action: Proposed Modification to Existing Collection.
    OMB Control No. 1902-0096.
    Respondents for this Rulemaking: Businesses or other for profit 
and/or not-for-profit institutions.
    Frequency of Information: As indicated in the table.
    Necessity of Information: The Commission is proposing to revise the 
EQR Data Dictionary to add ``Simultaneous Exchange'' to the list of 
available Product Names in the EQR. This proposal would allow for 
greater transparency in wholesale electricity markets through a greater 
understanding of these complex exchange transactions. The Commission is 
generally concerned that the complexity of simultaneous exchanges may 
obscure the true nature of these transactions, and may enable market 
participants to circumvent market rules. Thus, in order to enhance 
transparency, the Commission believes it is important that EQR filers 
report simultaneous exchanges in the EQR.
    Internal Review: The Commission has reviewed the proposed changes 
and has determined that the changes are necessary. These requirements 
conform to the Commission's need for efficient information collection, 
communication, and management within the energy industry. The 
Commission has assured itself, by means of internal review, that there 
is specific, objective support for the burden estimates associated with 
the information collection requirements.
    20. Interested persons may obtain information on the reporting 
requirements by contacting the following: Federal Energy Regulatory 
Commission, 888 First Street NE., Washington, DC 20426 [Attention: 
Ellen Brown, Office of the Executive Director], email: 
[email protected], Phone: (202) 502-8663, fax: (202) 273-0873.
    21. Comments on the collections of information and the associated 
burden estimates in the proposed rule should be sent to the Commission 
in this docket and may also be sent to the Office of Information and 
Regulatory Affairs, Office of Management and Budget, Washington DC 
20503 [Attention: Desk

[[Page 16499]]

Officer for the Federal Energy Regulatory Commission]. For security 
reasons, comments to OMB should be submitted by email to: [email protected]. Comments submitted to OMB should include Docket 
Number RM01-8-012 and OMB Control Number 1902-0096.

IV. Environmental Analysis

    22. 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.\28\ The 
actions taken here fall within categorical exclusions in the 
Commission's regulations for information gathering, analysis, and 
dissemination.\29\ Therefore, an environmental assessment is 
unnecessary and has not been prepared in this rulemaking.
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    \28\ Regulations Implementing the National Environmental Policy 
Act, Order No. 486, FERC Stats. & Regs. ] 30,783 (1987).
    \29\ 18 CFR 380.4(a)(5).
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V. Regulatory Flexibility Act

    23. The Regulatory Flexibility Act of 1980 (RFA) \30\ generally 
requires a description and analysis of final rules that will have 
significant economic impact on a substantial number of small entities. 
The RFA mandates consideration of regulatory alternatives that 
accomplish the stated objectives of a proposed rule and that minimize 
any significant economic impact on a substantial number of small 
entities. The Small Business Administration's (SBA) Office of Size 
Standards develops the numerical definition of a small business.\31\ 
The SBA has established a size standard for electric utilities, stating 
that a firm is small if, including its affiliates, it is primarily 
engaged in the transmission, generation and/or distribution of electric 
energy for sale and its total electric output for the preceding twelve 
months did not exceed four million megawatt hours.\32\
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    \30\ 5 U.S.C. 601-612.
    \31\ 13 CFR 121.101.
    \32\ 13 CFR 121.201, Sector 22, Utilities & n.1.
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    24. Since the proposed change may affect small entities that file 
the EQR, the EIA Form 861 was analyzed to determine the potential 
impact on these filers. Based on EIA data, 198 public utilities 
reported wholesale sales in the Form 861. Of those 198 entities, 56 
entities reported a combined total of wholesale and retail sales of 
less than 4 million MWh. The Commission expects that fewer than the 
identified 56 entities will be impacted by this proposed rule. While 
this may be a substantial number, the direct, economic cost is 
estimated at $368 per entity. The Commission does not consider this a 
significant impact. Furthermore, those small entities that may be 
impacted may have IT systems that are capturing the necessary 
information and no modifications to those systems may be necessary. 
Finally, we note that public utilities may request, on an individual 
basis, waiver from the EQR reporting requirements.\33\
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    \33\ The Commission has granted requests for waiver of the EQR 
filing requirements. See Bridger Valley Elect. Assoc., Inc., 101 
FERC ] 61,146 (2002). Entities with a waiver will continue to have a 
waiver and will not need to file a new request for waiver.
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    25. Based on the above, the Commission certifies this rule will not 
have a significant economic impact on a substantial number of small 
entities, and therefore no initial regulatory flexibility analysis is 
required.

VI. Comment Procedures

    26. The Commission invites interested persons to submit comments on 
the matters and issues proposed in this notice to be adopted, including 
any related matters or alternative proposals that commenters may wish 
to discuss. Comments are due 60 days from publication in the Federal 
Register. Comments must refer to Docket No. RM10-12-000, and must 
include the commenter's name, the organization they represent, if 
applicable, and their address in their comments.
    27. The Commission encourages comments to 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. Documents created electronically using word processing 
software should be filed in native applications or print-to-PDF format 
and not in a scanned format. Commenters filing electronically do not 
need to make a paper filing.
    28. Commenters that are not able to file comments electronically 
must send an original and 14 copies of their comments to: Federal 
Energy Regulatory Commission, Secretary of the Commission, 888 First 
Street NE., Washington, DC 20426.
    29. 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 on this proposal are 
not required to serve copies of their comments on other commenters.

VII. Document Availability

    30. 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 FERC's Home Page (http://www.ferc.gov) and in FERC'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.
    31. From FERC's Home Page on the Internet, this information is 
available on eLibrary. The full text of this document is available on 
eLibrary 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. User assistance is available for eLibrary and the FERC's 
Web site during normal business hours from FERC Online Support at (202) 
502-6652 (toll free at 1-866-208-3676) or email at 
[email protected], or the Public Reference Room at (202) 502-
8371, TTY (202) 502-8659. Email the Public Reference Room at 
[email protected].

    By direction of the Commission.

    Dated: March 15, 2012.
Nathaniel J. Davis, Sr.,
Deputy Secretary.

Appendix A: Proposed Addition to Existing EQR Product Names

[[Page 16500]]



----------------------------------------------------------------------------------------------------------------
                                           Contract       Transaction
             Product name                  product          product                     Definition
----------------------------------------------------------------------------------------------------------------
SIMULTANEOUS EXCHANGE................         [check]          [check]   Simultaneous exchanges occur when a
                                                                          pair of simultaneously arranged (i.e.,
                                                                          part of the same negotiations)
                                                                          wholesale power transactions between
                                                                          the same counterparties in which party
                                                                          A sells an electricity product to
                                                                          party B at one location and party B
                                                                          sells a similar electricity product to
                                                                          party A at a different location have
                                                                          an overlapping delivery period. The
                                                                          simultaneous exchange is the
                                                                          overlapping portion (both in volume
                                                                          and delivery period) of these
                                                                          wholesale power transactions.
----------------------------------------------------------------------------------------------------------------

Appendix B: Proposed Special Conventions for Reporting Simultaneous 
Exchange Transactions

    The Example column is meant for illustrative purposes only and 
may not reflect the actual data to be submitted.

------------------------------------------------------------------------
   Field No.       Field name      Special conventions       Example
------------------------------------------------------------------------
46............  Transaction       .....................  T1.
                 Unique ID.
47............  Seller Company    Reporting EQR seller.  Company A.
                 Name.
48............  Customer Company  Counterparty in the    Company B.
                 Name.             simultaneous
                                   exchange.
49............  Customer DUNS     .....................  485948157.
                 Number.
50............  FERC Tariff       .....................  FERC Electric
                 Reference.                               Tariff
                                                          Original
                                                          Volume No. 1.
51............  Contract Service  .....................  SE-34.
                 Agreement ID.
52............  Transaction       .....................  SE-01122012.
                 Unique
                 Identifier.
53............  Transaction       Begin Date/Time of     201201120600.
                 Begin Date.       overlapping
                                   transaction.
54............  Transaction End   End Date/Time of       201201120800.
                 Date.             overlapping
                                   transaction.
55............  Time Zone.......  .....................  MS.
56............  Point of          List ``SIMX'' to       SIMX.
                 Delivery          represent
                 Balancing         simultaneous
                 Authority.        exchange.
57............  Point of          Indicate the receipt   R: PACE-Bonanza/
                 Delivery          point first with the   D: PACE-Mona.
                 Specific          entry ``R:'' Then
                 Location.         enter a space
                                   followed by the four
                                   letter abbreviation
                                   for the balancing
                                   authority of the
                                   filer's receipt
                                   point followed by a
                                   dash (-) and the
                                   specific location
                                   for the receipt
                                   point. Then enter a
                                   slash (``/'') to
                                   separate the receipt
                                   and delivery point
                                   information. Then
                                   indicate the filer's
                                   delivery point with
                                   the entry ``D:''
                                   Then enter the four
                                   letter abbreviation
                                   of the balancing
                                   authority for the
                                   seller's delivery
                                   point, followed by a
                                   dash (-) and the
                                   specific location
                                   for the delivery
                                   point.
58............  Class Name......  .....................  NF.
59............  Term Name.......  .....................  ST.
60............  Increment Name..  .....................  H.
61............  Increment         .....................  OP.
                 Peaking Name.
62............  Product Name....  List ``SIMULTANEOUS    SIMULTANEOUS
                                   EXCHANGE'' Product     EXCHANGE.
                                   Name.
63............  Transaction       List the amount        50.
                 Quantity.         delivered by the
                                   Seller Company..
64............  Price...........  List the price spread  -10.00.
                                   representing the
                                   amount of net
                                   compensation that
                                   the filing party
                                   received for the
                                   simultaneous
                                   exchange.
65............  Rate Units......  .....................  $/MWH.
66............  Total             .....................  0.
                 Transmission
                 Charge.
67............  Total             .....................  -500
                 Transaction
                 Charge.
------------------------------------------------------------------------

[FR Doc. 2012-6759 Filed 3-20-12; 8:45 am]
BILLING CODE 6717-01-P