[Federal Register Volume 87, Number 101 (Wednesday, May 25, 2022)]
[Proposed Rules]
[Pages 31783-31787]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-11243]


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

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

18 CFR Parts 154, 260, and 284

[Docket No. RM21-18-000]


Revised Filing and Reporting Requirements for Interstate Natural 
Gas Company Rate Schedules and Tariffs

AGENCY: Federal Energy Regulatory Commission, Department of Energy.

ACTION: Notice of proposed rulemaking.

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

SUMMARY: The Federal Energy Regulatory Commission proposes to establish 
a rule to require natural gas pipelines to submit all supporting 
statements, schedules and workpapers in native format (e.g., Microsoft 
Excel) with all links and formulas intact when filing a Natural Gas Act 
section 4 rate case.

DATES: Comments are due June 24, 2022.

ADDRESSES: Comments, identified by Docket No. RM21-18-000, may be filed 
in the following ways. Electronic filing through http://www.ferc.gov is 
preferred.
     Electronic Filing: Documents must be filed in acceptable 
native applications and print-to-PDF, but not in scanned or picture 
format.
     For those unable to file electronically, comments may be 
filed by USPS mail or by hand (including courier) delivery.
    [cir] Mail via U.S. Postal Service Only: Addressed to: Federal 
Energy Regulatory Commission, Secretary of the Commission, 888 First 
Street NE, Washington, DC 20426.
    [cir] Hand (including courier) delivery: Deliver to: Federal Energy 
Regulatory Commission, 12225 Wilkins Avenue, Rockville, MD 20852.
    The Comment Procedures Section of this document contains more 
detailed filing procedures.

FOR FURTHER INFORMATION CONTACT: 
    Tehseen Rana (Technical Information), Office of Energy Market 
Regulation, 888 First Street NE, Washington, DC 20426, (202) 502-8639, 
[email protected].
    Caitlin Tweed (Legal Information), Office of the General Counsel, 
888 First Street NE, Washington, DC 20426, (202) 502-8073, 
[email protected].

SUPPLEMENTARY INFORMATION:

Table of Contents

 
                                                         Paragraph Nos.
 
I. Introduction......................................                  1
II. Background.......................................                  3
III. Discussion......................................                  5
IV. Information Collection Statement.................                  9
V. Environmental Analysis............................                 25
VI. Regulatory Flexibility Act Certification.........                 26
VII. Comment Procedures..............................                 28
VIII. Document Availability..........................                 31
 

I. Introduction

    1. On June 24, 2021, American Gas Association, American Public Gas 
Association, American Forest & Paper Association, Industrial Energy 
Consumers of America, Process Gas Consumers Group and Natural Gas 
Supply Association (collectively, Petitioners) filed a petition 
requesting that the Commission institute a rulemaking to revise its 
regulations, or at the minimum, issue an order revising and updating 
the FERC Implementation Guide for Electronic Filing of Parts 35, 154, 
284, 300 and 341 Tariff Filings (FERC Implementation Guide) to require 
natural gas pipelines to submit all supporting statements, schedules 
and workpapers in native format \1\ with all links and formulas intact 
when filing a general Natural Gas Act (NGA) section 4 \2\ rate case 
(Petition). Petitioners state that the Commission's current policy does 
not ensure that Commission staff and stakeholders have access to all 
the information needed to perform routine rate analyses.
---------------------------------------------------------------------------

    \1\ As stated in the FERC Implementation Guide, native format, 
or native application format, ``refers to the software used to 
create the file. When a file is submitted in native application 
format it is submitted in the format of the software used to create 
the file. For example, if the file is created in Microsoft Excel 
2010, submit the file in an Excel format, generally denoted by an 
extension of XLSX. All files submitted in native application format 
must be saved and filed using one of the Commission's accepted 
electronic document file formats. The list of FERC Acceptable File 
Formats is available on www.ferc.gov.'' FERC Implementation Guide 
for Electronic Filing of Parts 35, 154, 284, 300 and 341 Tariff 
Filings (2016).
    \2\ 15 U.S.C. 717c.
---------------------------------------------------------------------------

    2. CenterPoint Energy Resources Corporation (CenterPoint), National 
Grid Gas Delivery Companies (National

[[Page 31784]]

Grid),\3\ and Exelon Corporation, Exelon Generation Company, LLC, and 
affiliates (collectively, Exelon) filed general comments in support of 
the Petition. In its comments, CenterPoint states that the changes 
proposed in the Petition may expedite proceedings by removing the 
additional step where intervenors must submit separate requests for 
supporting statements, schedules and workpapers in native format, in 
effect reducing time and expense for all stakeholders. National Grid 
states that when a natural gas pipeline does not file in native format, 
a party's only recourse is either the time-consuming process of raising 
the matter in protests and waiting for the Commission to direct the 
filer to provide all statements, schedules and workpapers in native 
format and subsequently the pipeline's compliance with those directives 
or pursuing this necessary information even later in the process 
through discovery. National Grid further states that these recourses 
are not only inefficient but cost parties time waiting on workpapers 
that allow for a complete and thorough assessment of the rate filing. 
Exelon maintains that supporting statements, schedules and workpapers 
should be provided in native format for stakeholders to review and 
determine whether a natural gas pipeline's proposed rate increase is 
just and reasonable and in conformance with Commission policies. Exelon 
argues that it is difficult to conduct a thorough analysis of a rate 
case if supporting statements, schedules and workpapers are submitted 
in Adobe PDF format.
---------------------------------------------------------------------------

    \3\ The Brooklyn Union Gas Company d/b/a National Grid NY; 
KeySpan Gas East Corporation d/b/a National Grid; Boston Gas Company 
d/b/a National Grid; The Narragansett Electric Company d/b/a 
National Grid; and Niagara Mohawk Power Corporation d/b/a National 
Grid, all subsidiaries of National Grid USA, Inc. (collectively, the 
National Grid Gas Delivery Companies).
---------------------------------------------------------------------------

II. Background

    3. As required by Sec.  284.10 of the Commission's regulations,\4\ 
interstate natural gas pipelines generally have stated rates for their 
services, which are approved in a rate proceeding under NGA sections 4 
or 5 and remain in effect until changed in a subsequent section 4 or 5 
proceeding. When a natural gas pipeline files under NGA section 4 to 
change its rates, the Commission requires the pipeline to provide 
detailed support for all the components of its cost of service.\5\ 
Further, section 4(c) of the NGA requires that a natural gas pipeline 
file proposed changes in rates with the Commission 30 days prior to the 
proposed effective date.\6\
---------------------------------------------------------------------------

    \4\ 18 CFR 284.10 (2021).
    \5\ 18 CFR 154.312 & 154.313 (2021).
    \6\ 15 U.S.C. 717c(d).
---------------------------------------------------------------------------

    4. Commission regulations require that natural gas pipelines filing 
general section 4 rate cases provide certain statements (Statements A 
through P).\7\ In 1995, the Commission issued its Filing and Reporting 
Requirements for Interstate Natural Gas Company Rate Schedules and 
Tariffs (Order No. 582), stating that Statements I, J and a portion of 
H (containing state tax formulations) must be received in spreadsheet 
format with formulas included, as the data provided in these statements 
are essential to understanding a natural gas pipeline's position with 
regard to cost allocation and rate design.\8\ The Commission found that 
although these spreadsheets could be obtained through discovery, that 
process is burdensome, often redundant of the initial filing and 
inhibits better-informed protests.\9\ Subsequently, the FERC 
Implementation Guide stated that the ``submission of spreadsheets in 
native file format is preferred for Statements A through M, including 
related schedules. Statements O and P may use any electronic format 
that renders text, graphics, spreadsheets or data bases that the 
Commission accepts (the list of FERC Acceptable File Formats is 
available on http://www.ferc.gov).'' \10\ Furthermore, for Statements 
I, J and a portion of H, the FERC Implementation Guide stated that if 
spreadsheets in native format (e.g., Microsoft Excel) are not available 
that the natural gas pipeline may submit using any of the 
aforementioned acceptable electronic formats which the Commission 
accepts.\11\
---------------------------------------------------------------------------

    \7\ 18 CFR 154.312.
    \8\ Filing and Reporting Requirements for Interstate Nat. Gas 
Co. Rate Schedules & Tariffs, Order No. 582, 60 FR 52,960, 52,994 
(Oct. 11, 1995), FERC Stats. & Regs. ] 31,025 (1995), order on 
clarification, 76 FERC ] 61,077 (1996) (Order on Clarification).
    \9\ In Order No. 703, the Commission confirmed this requirement 
that pipelines submit spreadsheets in native format for Statements 
I, J and a portion of H, including intact formulas. Filing Via the 
Internet, Order No. 703, 72 FR 65659 (Nov. 23, 2007), 121 FERC ] 
61,171 at P 26 (2007).
    \10\ FERC Implementation Guide for Electronic Filing of Parts 
35, 154, 284, 300 and 341 Tariff Filings (2016).
    \11\ Id.
---------------------------------------------------------------------------

III. Discussion

    5. Pursuant to NGA section 4, we propose to establish a rule to 
require natural gas pipelines to submit all statements, schedules and 
workpapers in native format with formulas and links intact \12\ when 
filing a general NGA section 4 rate case.
---------------------------------------------------------------------------

    \12\ ``Formulas and links intact'' includes formulas and links 
within individual spreadsheets and between spreadsheets. For 
example, the proposal will require that formulas and links within 
Schedule I-2 be intact within Schedule I-2, and intact for any 
progressive calculations that flow data from Schedule I-2.
---------------------------------------------------------------------------

    6. First, requiring all statements, schedules and workpapers to be 
filed in native format will reconcile any ambiguity in the current 
requirements with a formal requirement for all natural gas pipelines to 
file accordingly. For example, in the Order on Clarification of Order 
No. 582, the Commission states that if there are no underlying links 
used to develop a spreadsheet (i.e., the spreadsheets are prepared 
separately from each other) then links do not need to be created. 
Currently, when a natural gas pipeline submits a section 4 rate case 
filing, the Commission often cannot verify whether there were 
underlying links used to develop a spreadsheet or whether a pipeline 
severed those links before filing its rate case. We seek to address 
this information gap and require natural gas pipelines to file 
statements and schedules linking progressive calculations regardless of 
how the statements and schedules were created. Furthermore, requiring 
spreadsheets with links and formulas intact will enable rate case 
participants to manipulate the cost-of-service components (including 
billing determinants) to evaluate different rate outcomes without the 
need to create their own rate models. This will expedite settlement 
negotiations and will allow all rate case participants to evaluate the 
filing on equal footing with the natural gas pipeline and without the 
need to hire experts or rely on other parties to recreate a pipeline's 
rate model.
    7. Second, submitting all statements, schedules and workpapers in 
native format will provide for a timely and comprehensive analysis of a 
rate case filing. If natural gas pipelines are required to submit all 
statements, schedules and workpapers in native format with links and 
formulas intact in the initial filing, stakeholders will be provided 
with pertinent information to analyze the rates and determine if they 
are just and reasonable. Parties can begin examining the entire filing 
during the typical 12-day comment period and thus file more informed 
protests. Furthermore, if natural gas pipelines are required to file 
all statements and schedules with formulas and links intact, all rate 
case participants will be able to evaluate the filing and any 
settlement offers from the same baseline, as opposed to all parties 
creating their own rate models. This will streamline the rate case 
process, including settlement discussions, and

[[Page 31785]]

avoid parties exchanging multiple rounds of discovery and testimony 
merely to understand the rate model's underlying calculations. The 
Commission acknowledged this in the Order on Clarification of Order No. 
582, stating: ``Requiring parties, including staff, to input all the 
figures from the rate case and spend weeks and rounds of discovery to 
recreate the pipeline's computations is grossly inefficient and unduly 
burdensome. Receiving the rate case in a manipulable format is critical 
given the 12-day period for comment and protest.'' \13\
---------------------------------------------------------------------------

    \13\ Order on Clarification, 76 FERC at 61,455.
---------------------------------------------------------------------------

    8. Third, the current regulations are outdated. Order No. 582 was 
issued in 1995. Since then, information technology has significantly 
improved. Section 4 rate cases are now generally developed using 
Microsoft Excel and submitted electronically. The concerns raised in 
the comments submitted in the rulemaking underlying Order No. 582 no 
longer exist (e.g., outdated software programs, or submitting numerous 
diskettes). With this rulemaking, we seek to update the filing 
requirements to reflect current information technology capabilities. We 
recognize that a final rule adopting these proposals could increase the 
burden on natural gas pipelines associated with submitting section 4 
rate case filings. Currently, natural gas pipelines are only required 
to submit Statements I, J and the state income taxes portion of 
Schedule H-3 in native format with formulas and links intact. One 
specific burden mentioned in the Order on Clarification of Order No. 
582 is the need to create links in files where they do not naturally 
occur when the spreadsheet is developed. As stated above, the 
Commission cannot verify whether underlying links exist or not but to 
the extent natural gas pipelines will need to create links among 
multiple spreadsheets that did not naturally occur when the 
spreadsheets were generated, their filing burden will increase. 
However, we do not anticipate that this requirement will be excessively 
burdensome on natural gas pipelines, as any entity that wants to 
calculate rates, including the pipeline, needs a linked rate model, and 
must create one if it is not provided in the original rate case filing.

IV. Information Collection Statement

    9. The information collection requirements contained in this NOPR 
are subject to review by the Office of Management and Budget (OMB) 
under section 3507(d) of the Paperwork Reduction Act of 1995.\14\ OMB's 
regulations require approval of certain information collection 
requirements imposed by agency rules.\15\ Upon approval of a collection 
of information, OMB will assign an OMB control number and expiration 
date. Respondents subject to the filing requirements of this proposed 
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.
---------------------------------------------------------------------------

    \14\ 44 U.S.C. 3507(d).
    \15\ 5 CFR 1320.11 (2021).
---------------------------------------------------------------------------

    10. This NOPR will modify the currently approved information 
collection associated with FERC-545, Gas Pipeline Rates: Rate Change 
(Non-Formal) (OMB Control No. 1902-0154) (FERC-545) by updating the 
requirements for submitting a rate case under section 4 of the NGA.
    11. Interested persons may obtain information on the reporting 
requirements by contacting Ellen Brown, Office of the Executive 
Director, Federal Energy Regulatory Commission, 888 First Street, NE, 
Washington, DC 20426 via email ([email protected]) or telephone 
((202) 502-8663).
    12. 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.
    13. Please send comments concerning the collection of information 
and the associated burden estimates to: Office of Information and 
Regulatory Affairs, Office of Management and Budget, 725 17th Street, 
NW, Washington, DC 20503 [Attention: Desk Officer for the Federal 
Energy Regulatory Commission]. Due to security concerns, comments 
should be sent electronically to the following email address: 
[email protected]. Comments submitted to OMB should refer to 
OMB Control No. 1902-0154.
    14. Please submit a copy of your comments on the information 
collection to the Commission via the eFiling link on the Commission's 
website at http://www.ferc.gov. If you are not able to file comments 
electronically, please send a copy of your comments to: Federal Energy 
Regulatory Commission, Secretary of the Commission, 888 First Street 
NE, Washington, DC 20426. Comments on the information collection that 
are sent to FERC should refer to RM21-18-000.
    15. Title: Gas Pipeline Rates: Rate Change (Non-Formal).
    16. Action: Proposed modification of collection of information in 
accordance with RM21-18-000.
    17. OMB Control No.: 1902-0154.
    18. Respondents for this Rulemaking: Gas pipelines filing an NGA 
section 4 rate case.
    19. Frequency of Information Collection: As needed for section 4 
rate cases.
    20. Necessity of Information: The proposed rule will require all 
statements, schedules and workpapers submitted during a section 4 rate 
case to be submitted in native format with all links and formulas 
intact. The modification to this collection is intended to reduce the 
overall burden for all parties involved in a section 4 rate case.
    21. Internal Review: The Commission has reviewed the changes and 
has determined that such 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 specific, objective support for the burden estimates 
associated with the information collection requirements.
    22. The Commission estimates that the NOPR will affect the burden 
\16\ and cost \17\ as follows:
---------------------------------------------------------------------------

    \16\ ``Burden'' is the total time, effort, or financial 
resources expended by persons to generate, maintain, retain, 
disclose or provide information to or for a Federal agency. For 
further explanation of what is included in the information 
collection burden, refer to 5 CFR 1320.3.
    \17\ The estimated hourly cost (salary plus benefits) provided 
in this section is based on the salary figures for May 2021 posted 
by the Bureau of Labor Statistics for the Utilities sector 
(available at https://www.bls.gov/oes/current/naics3_221000.htm) and 
scaled to reflect benefits using the relative importance of employer 
costs for employee compensation from June 2021 (available at https://www.bls.gov/news.release/ecec.nr0.htm). The hourly estimates for 
salary plus benefits are: Computer and Information Systems Manager 
(Occupation Code: 11-3021), $103.61; Computer and Information 
Analysts (Occupation Code: 15-1120(1221), $67.99; Electrical 
Engineer (Occupation Code: 7-2071), $72.15; Legal (Occupation Code: 
23-0000), $142.25. The average hourly cost (salary plus benefits) 
weighting all of the above skill sets evenly, is $96.50. We round it 
to $97/hour.

[[Page 31786]]



                                         Proposed Modifications to FERC 545 From NOPR in Docket No. RM21-18-000
--------------------------------------------------------------------------------------------------------------------------------------------------------
               A.                       B.              C.              D.                        E.                                  F.
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                      Annual
                                                      Annual         estimated
                                     Number of       estimated       number of      Average burden hours & cost per     Total estimated burden hours &
      Area of modification          respondents      number of       responses                 response                total estimated cost (Column D x
                                                   responses per    (Column B x                                                    Column E)
                                                    respondent       Column C)
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                 Section 4 Rate Case
--------------------------------------------------------------------------------------------------------------------------------------------------------
FERC 545: Annual Section 4 Rate                8               1               8  100 hours; $9,700.................  800 hours; $77,600.
 Cases.
--------------------------------------------------------------------------------------------------------------------------------------------------------

    23. For the purposes of estimating burden in this NOPR, in the 
table above, we conservatively estimate the annual total of general 
section 4 rate cases to be eight. This number is higher than the 
Commission's average number of section 4 rate cases, but we created our 
estimate to allow for additional rate case submissions.
    24. FERC-545 is required to implement rates pursuant to sections 4, 
5, and 16 of NGA, (15 U.S.C. 717 & 717o, Pub. L. 75-688, 52 Stat. 822 
and 830). NGA sections 4, 5, and 16 authorize the Commission to inquire 
into rate structures and methodologies and to set rates at a just and 
reasonable level. Specifically, a natural gas pipeline must obtain 
Commission authorization for all rates and charges made, demanded, or 
received in connection with the transportation or sale of natural gas 
in interstate commerce. The proposed modification as described in this 
NOPR in Docket No. RM21-18-000 only impacts filings under section 4 of 
the NGA. The collections associated with sections 5 and 16 remain 
unchanged.

V. Environmental Analysis

    25. 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.\18\ The 
actions proposed to be taken here fall within categorical exclusions in 
the Commission's regulations for rules regarding information gathering, 
analysis, and dissemination, and for rules regarding sales, exchange, 
and transportation of natural gas that require no construction of 
facilities.\19\ Therefore, an environmental review is unnecessary and 
has not been prepared in this rulemaking.
---------------------------------------------------------------------------

    \18\ Reguls. Implementing the Nat'l Envt'l Pol'y Act, Order No. 
486, 52 FR 47897 (Dec. 17, 1987), FERC Stats. & Regs. ] 30,783 
(1987) (cross-referenced at 41 FERC ] 61,284).
    \19\ See 18 CFR 380.4(a)(2)(ii), 380.4(a)(5) & 380.4(a)(27) 
(2021).
---------------------------------------------------------------------------

VI. Regulatory Flexibility Act

    26. The Regulatory Flexibility Act of 1980 (RFA) \20\ requires the 
Commission to determine the effect of the NOPR on small entities. The 
Commission intends to pose the least possible burden on all entities 
both large and small.
---------------------------------------------------------------------------

    \20\ 5 U.S.C. 601-612.
---------------------------------------------------------------------------

    27. The NOPR only applies to natural gas pipelines who file a 
section 4 rate case. There are a total of 145 entities that may file a 
rate change and may be impacted by the NOPR. The Small Business 
Administration (SBA) defines a small entity in the category of, 
``Pipeline Transportation of Natural Gas'' \21\ by entities with fewer 
than $30 million of annual receipts. Out of the total number of 
entities, only five are small entities (~3% of the total population). 
We estimate the annual additional costs of filing a section 4 rate case 
to be $9,700. We further estimate an average of eight responses per 
year and conservatively estimates that one may be a small entity. 
Therefore, this proposed rule does not pose a significant change to 
small entities.
---------------------------------------------------------------------------

    \21\ Small Business Administration NAICS Category 486210, 
``Pipeline Transportation of Natural Gas'' under 13 CFR chapter 1 
part 121.
---------------------------------------------------------------------------

VII. Comment Procedures

    28. The Commission invites interested persons to submit comments on 
the matters and issues proposed in this rulemaking to be adopted, 
including any related matters or alternative proposals that commenters 
may wish to discuss. Comments are due June 24, 2022. Comments must 
refer to Docket No. RM21-18-000, and must include the commenter's name, 
the organization they represent, if applicable, and their address in 
their comments. 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.
    29. The Commission encourages comments to be filed electronically 
via the eFiling link on the Commission's website at http://www.ferc.gov. The Commission accepts most standard word processing 
formats. Documents created electronically using word processing 
software must 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.
    30. Commenters that are not able to file comments electronically 
may file an original of their comment by USPS mail or by courier or 
other delivery services. For submission sent via USPS only, filings 
should be mailed to: Federal Energy Regulatory Commission, Office of 
the Secretary, 888 First Street NE, Washington, DC 20426. Submission of 
filings other than by USPS should be delivered to: Federal Energy 
Regulatory Commission, 12225 Wilkins Avenue, Rockville, MD 20852.

VIII. Document Availability

    31. 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). At 
this time, the Commission has suspended access to the Commission's 
Public Reference Room due to the President's March 13, 2020 
proclamation declaring a National Emergency concerning the Novel 
Coronavirus Disease (COVID-19).
    32. From the Commission'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

[[Page 31787]]

last three digits of this document in the docket number field.
    33. User assistance is available for eLibrary and the Commission's 
website during normal business hours from the Commission's 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.

    Issued: May 19, 2022.
Debbie-Anne A. Reese,
Deputy Secretary.
[FR Doc. 2022-11243 Filed 5-24-22; 8:45 am]
BILLING CODE 6717-01-P