    [Federal Register Volume 85, Number 168 (Friday, August 28, 2020)]
    [Notices]
    [Page 53357]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 2020-18992]

    [[Page 53357]]

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    DEPARTMENT OF ENERGY

    Federal Energy Regulatory Commission

    Order on Intent To Revoke Market-Based Rate Authority

                                                               Docket Nos.

    Electric Quarterly Reports............................     ER02-2001-020
    ResCom Energy LLC.....................................     ER12-1296-000
    PowerOne Corporation..................................      ER14-209-001
    Capital Energy LLC....................................     ER14-2232-001
    HIC Energy, LLC.......................................     ER15-2473-000
    Veritas Energy Group, LLC.............................     ER17-1751-000
    Iridium Energy, LLC...................................      ER18-777-000

        1. Section 205 of the Federal Power Act (FPA), 16 U.S.C. 824d
    (2018), and 18 CFR part 35 (2019), require, among other things, that
    all rates, terms, and conditions for jurisdictional services be filed
    with the Commission. In Order No. 2001, the Commission revised its
    public utility filing requirements and established a requirement for
    public utilities, including power marketers, to file Electric Quarterly
    Reports.\1\
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        \1\ Revised Public Utility Filing Requirements, Order No. 2001,
    99 FERC ] 61,107, 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, 120 FERC ] 61,270,
    order on reh'g and clarification, Order No. 2001-H, 121 FERC ]
    61,289 (2007), order revising filing requirements, Order No. 2001-I,
    FERC Stats. 125 FERC ] 61,103 (2008). See also Filing Requirements
    for Electric Utility Service Agreements, 155 FERC ] 61,280, order on
    reh'g and clarification, 157 FERC ] 61,180 (2016) (clarifying
    Electric Quarterly Reports reporting requirements and updating Data
    Dictionary).
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        2. The Commission requires sellers with market-based rate
    authorization to file Electric Quarterly Reports summarizing
    contractual and transaction information related to their market-based
    power sales as a condition for retaining that authorization.\2\
    Commission staff's review of the Electric Quarterly Reports indicates
    that the following six public utilities with market-based rate
    authorization have failed to file their Electric Quarterly Reports:
    ResCom Energy LLC, PowerOne Corporation, Capital Energy LLC, HIC
    Energy, LLC, Veritas Energy Group, LLC, and Iridium Energy, LLC. This
    order notifies these public utilities that their market-based rate
    authorizations will be revoked unless they comply with the Commission's
    requirements within fifteen days of the date of issuance of this order.
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        \2\ See Refinements to Policies and Procedures for Market-Based
    Rates for Wholesale Sales of Electric Energy, Capacity and Ancillary
    Services by Public Utilities, Order No. 816, 153 FERC ] 61,065
    (2015), order on reh'g, Order No. 816-A, 155 FERC ] 61,188 (2016);
    Market-Based Rates for Wholesale Sales of Electric Energy, Capacity
    and Ancillary Services by Public Utilities, Order No. 697, 119 FERC
    ] 61,295, at P 3, clarified, 121 FERC ] 61,260 (2007), order on
    reh'g, Order No. 697-A, 123 FERC ] 61,055, clarified, 124 FERC ]
    61,055, order on reh'g, Order No. 697-B, 125 FERC ] 61,326 (2008),
    order on reh'g, Order No. 697-C, 127 FERC ] 61,284 (2009), order on
    reh'g, Order No. 697-D, 130 FERC ] 61,206 (2010), aff'd sub nom.
    Mont. Consumer Counsel v. FERC, 659 F.3d 910 (9th Cir. 2011).
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        3. In Order No. 2001, the Commission stated that,

    [i]f a public utility fails to file a[n] Electric Quarterly Report
    (without an appropriate request for extension), or fails to report an
    agreement in a report, that public utility may forfeit its market-based
    rate authority and may be required to file a new application for
    market-based rate authority if it wishes to resume making sales at
    market-based rates.\3\
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        \3\ Order No. 2001, 99 FERC ] 61,107 at P 222.

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        4. The Commission further stated that,

    [o]nce this rule becomes effective, the requirement to comply with this
    rule will supersede the conditions in public utilities' market-based
    rate authorizations, and failure to comply with the requirements of
    this rule will subject public utilities to the same consequences they
    would face for not satisfying the conditions in their rate
    authorizations, including possible revocation of their authority to
    make wholesale power sales at market-based rates.\4\
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        \4\ Id. P 223.

        5. Pursuant to these requirements, the Commission has revoked the
    market-based rate tariffs of market-based rate sellers that failed to
    submit their Electric Quarterly Reports.\5\
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        \5\ See, e.g., Electric Quarterly Reports, 82 FR 60,976 (Dec.
    26, 2017); Electric Quarterly Reports, 80 FR 58,243 (Sep. 28, 2015);
    Electric Quarterly Reports, 79 FR 65,651 (Nov. 5, 2014).
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        6. Sellers must file Electric Quarterly Reports consistent with the
    procedures set forth in Order Nos. 2001, 768,\6\ and 770.\7\ The exact
    filing dates for Electric Quarterly Reports are prescribed in 18 CFR
    35.10b (2019). As noted above, Commission staff's review of the
    Electric Quarterly Reports for the period up to the first quarter of
    2020 identified six public utilities with market-based rate
    authorization that failed to file Electric Quarterly Reports.
    Commission staff contacted or attempted to contact these entities to
    remind them of their regulatory obligations. Despite these reminders,
    the public utilities listed in the caption of this order have not met
    these obligations. Accordingly, this order notifies these public
    utilities that their market-based rate authorizations will be revoked
    unless they comply with the Commission's requirements within fifteen
    days of the issuance of this order.
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        \6\ Electricity Market Transparency Provisions of Section 220 of
    the Federal Power Act, Order No. 768, 140 FERC ] 61,232 (2012),
    order on reh'g, Order No. 768-A, 143 FERC ] 61,054 (2013), order on
    reh'g, Order No. 768-B, 150 FERC ] 61,075 (2015).
        \7\ Revisions to Electric Quarterly Report Filing Process, Order
    No. 770, 141 FERC ] 61,120 (2012).
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        7. In the event that any of the above-captioned market-based rate
    sellers have already filed their Electric Quarterly Reports in
    compliance with the Commission's requirements, those sellers' inclusion
    herein is inadvertent. Such market-based rate sellers are directed,
    within fifteen days of the date of issuance of this order, to make a
    filing with the Commission identifying themselves and providing details
    about their prior filings that establish that they complied with the
    Commission's Electric Quarterly Report filing requirements.
        8. If any of the above-captioned market-based rate sellers do not
    wish to continue having market-based rate authority, they may file a
    notice of cancellation with the Commission pursuant to section 205 of
    the FPA to cancel their market-based rate tariff.
        The Commission orders:
        (A) Within 15 days of the date of issuance of this order, each
    public utility listed in the caption of this order shall file with the
    Commission all delinquent Electric Quarterly Reports. If a public
    utility subject to this order fails to make the filings required in
    this order, the Commission will revoke that public utility's market-
    based rate authorization and will terminate its electric market-based
    rate tariff. The Secretary is hereby directed, upon expiration of the
    filing deadline in this order, to promptly issue a notice, effective on
    the date of issuance, listing the public utilities whose tariffs have
    been revoked for failure to comply with the requirements of this order
    and the Commission's Electric Quarterly Report filing requirements.
        (B) The Secretary is hereby directed to publish this order in the
    Federal Register.

        By the Commission.

        Issued: August 24, 2020.
    Nathaniel J. Davis, Sr.,
    Deputy Secretary.
    [FR Doc. 2020-18992 Filed 8-27-20; 8:45 am]
    BILLING CODE 6717-01-P