[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