Notice2022-21764
Commission Information Collection Activity (FERC-549); Comment Request; Extension
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
October 6, 2022
Issuing agencies
Energy DepartmentFederal Energy Regulatory Commission
Abstract
In compliance with the requirements of the Paperwork Reduction Act of 1995, the Federal Energy Regulatory Commission (Commission or FERC) is soliciting public comment on the currently approved information collections, FERC-549 (NGPA Section 311 Transactions and NGA Blanket Certificate Transactions).
Full Text
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<title>Federal Register, Volume 87 Issue 193 (Thursday, October 6, 2022)</title>
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[Federal Register Volume 87, Number 193 (Thursday, October 6, 2022)]
[Notices]
[Pages 60670-60673]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-21764]
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DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
[Docket No. IC22-17-000]
Commission Information Collection Activity (FERC-549); Comment
Request; Extension
AGENCY: Federal Energy Regulatory Commission, DOE.
ACTION: Notice of information collection and request for comments.
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SUMMARY: In compliance with the requirements of the Paperwork Reduction
Act of 1995, the Federal Energy Regulatory Commission (Commission or
FERC) is soliciting public comment on the currently approved
information collections, FERC-549 (NGPA Section 311 Transactions and
NGA Blanket Certificate Transactions).
DATES: Comments on the collections of information are due December 5,
2022.
ADDRESSES: You may submit your comments (identified by Docket No. IC22-
17-000) on FERC-549 by one of the following methods:
Electronic filing through <a href="https://www.ferc.gov">https://www.ferc.gov</a> is preferred.
<bullet> Electronic Filing: Documents must be filed in acceptable
native applications and print-to-PDF, but not in scanned or picture
format.
<bullet> 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.
Instructions: All submissions must be formatted and filed in
accordance with submission guidelines at: <a href="https://www.ferc.gov">https://www.ferc.gov</a>. For
user assistance, contact FERC Online Support by email at
<a href="/cdn-cgi/l/email-protection#b3d5d6c1d0dcdddfdaddd6c0c6c3c3dcc1c7f3d5d6c1d09dd4dcc5"><span class="__cf_email__" data-cfemail="84e2e1f6e7ebeae8edeae1f7f1f4f4ebf6f0c4e2e1f6e7aae3ebf2">[email protected]</span></a>, or by phone at (866) 208-3676 (toll-free).
Docket: Users interested in receiving automatic notification of
activity in this docket or in viewing/downloading comments and
issuances in this docket may do so at <a href="https://www.ferc.gov">https://www.ferc.gov</a>.
FOR FURTHER INFORMATION CONTACT: Ellen Brown may be reached by email at
<a href="/cdn-cgi/l/email-protection#d490b5a0b597b8b1b5a6b5bab7b19492918697fab3bba2"><span class="__cf_email__" data-cfemail="7733160316341b12160516191412373132253459101801">[email protected]</span></a>, or by telephone at (202) 502-8663.
SUPPLEMENTARY INFORMATION:
Title: NGPA Section 311 Transactions and NGA Blanket Certificate
Transactions.
OMB Control No.: 1902-0086.
Type of Request: Three-year extension of the FERC-549 information
collection requirements with a revision to account for the differences
between filings seeking initial approval and those disclosing a change
in circumstances.
Abstract: FERC-549 is required to implement portions of the
following statutory provisions: (1) Section 311 of the Natural Gas
Policy Act (NGPA) (15 U.S.C. 3371); (2) Section 4(f) of the Natural Gas
Act (NGA) (15 U.S.C. 717c(f)); and (3) Section 7 of the NGA (15 U.S.C.
717f). The reporting requirements for implementing these provisions are
contained in 18 CFR part 284.
Transportation by Interstate Pipelines for Intrastate Pipelines and
Local Distribution Companies
Under section 311(a)(1) of the NGPA and 18 CFR 284.101 and 284.102,
any interstate pipeline may transport natural gas without prior
Commission approval ``on behalf of'' an intrastate pipeline or a local
distribution company (LDC). The regulation at 18 CFR 284.102(d)
provides that the transportation is not ``on behalf of'' an intrastate
pipeline or an LDC unless one of three conditions is met:
[[Page 60671]]
(1) The interstate pipeline or LDC has physical custody of and
transports the natural gas at some point;
(2) The intrastate pipeline or LDC holds title to the natural gas
at some point, which may occur prior to, during, or after the time that
the gas is being transported by the interstate pipeline, for a purpose
related to its status and functions as a local distribution company; or
(3) The gas is delivered at some point to a customer that either is
located in an LDC's service area or is physically able to receive
direct deliveries of gas from an intrastate pipeline, and the LDC or
intrastate pipeline certifies that it is on its behalf that the
interstate pipeline is providing transportation service.
The certification requirement in the third condition described at
18 CFR 284.102(d)(3) is included in the burden table (below) as part of
the information collection activity labeled ``Transportation by
Pipelines.'' Before commencing service as described in paragraph
(d)(3), the interstate pipeline that is providing the transportation
must receive certification from the pertinent LDC or intrastate
pipeline consisting of a letter from the intrastate pipeline or LDC
authorizing the interstate pipeline to ship gas on its behalf, and
sufficient information to verify that the service qualifies under 18
CFR 284.102.
Transportation by Intrastate Pipelines for Interstate Pipelines or LDCs
Served by an Interstate Pipeline
Under section 311(a)(2) of the NGPA and 18 CFR 284.122 and 284.123,
any intrastate pipeline may, without prior Commission approval,
transport natural gas on behalf of any interstate pipeline or any LDC
served by an interstate pipeline. No rate charged for such
transportation may exceed a fair and equitable rate. The filing
requirements described below are included in the burden table (below)
as part of the information collection activity labeled ``Transportation
by Pipelines.''
The regulation at 18 CFR 284.123(b) provides that intrastate gas
pipeline companies must file for Commission approval of rates for
services performed in the interstate transportation of gas. An
intrastate gas pipeline company may elect to use rates contained in one
of its then effective transportation rate schedules on file with an
appropriate state regulatory agency for intrastate service comparable
to the interstate service or file proposed rates and supporting
information showing the rates are cost based and are fair and
equitable. It is the Commission policy that each pipeline must file at
least every five years to ensure its rates are fair and equitable.
Depending on the business process used, either 60 or 150 days after the
application is filed, the rate is deemed to be fair and equitable
unless the Commission either extends the time for action, institutes a
proceeding or issues an order providing for rates it deems to be fair
and equitable.
The regulation at 18 CFR 284.123(e) requires that within 30 days of
commencement of new service any intrastate pipeline engaging in the
transportation of gas in interstate commerce must file a statement that
includes the interstate rates and a description of how the pipeline
will engage in the transportation services, including operating
conditions. If an intrastate gas pipeline company changes its
operations or rates it must amend the statement on file with the
Commission. Such amendment is to be filed not later than 30 days after
commencement of the change in operations or change in rate election.
Initial Approval of Market-Based Rates for Storage
Section 4(f) of the NGA authorizes the Commission to permit natural
gas storage service providers to charge market-based rates for storage,
subject to conditions and requirements set forth in the statute. The
Commission implements this authority under 18 CFR 284.501 through
284.505. An applicant may apply for market-based rates by filing a
request for a market-power determination that complies with the
following:
(a) The applicant must set forth its specific request and
adequately demonstrate that it lacks market power in the market to be
served, and must include an executive summary of its statement of
position and a statement of material facts in addition to its complete
statement of position. The statement of material facts must include
citation to the supporting statements, exhibits, affidavits, and
prepared testimony.
The regulation at 18 CFR 284.503 requires that an application to
charge market-based rate for storage services must include the
following information:
(1) Statement A--geographic market. This statement must describe
the geographic markets for storage services in which the applicant
seeks to establish that it lacks significant market power. It must
include the market related to the service for which it proposes to
charge market-based rates. The statement must explain why the
applicant's method for selecting the geographic markets is appropriate.
(2) Statement B--product market. This statement must identify the
product market or markets for which the applicant seeks to establish
that it lacks significant market power. The statement must explain why
the particular product definition is appropriate.
(3) Statement C--the applicant's facilities and services. This
statement must describe the applicant's own facilities and services,
and those of all parent, subsidiary, or affiliated companies, in the
relevant markets identified in Statements A and B in paragraphs (b)(1)
and (2) of this section. The statement must include all pertinent data
about the storage facilities and services.
(4) Statement D--competitive alternatives. This statement must
describe available alternatives in competition with the applicant in
the relevant markets and other competition constraining the applicant's
rates in those markets. Such proposed alternatives may include an
appropriate combination of other storage, local gas supply, LNG,
financial instruments and pipeline capacity. These alternatives must be
shown to be reasonably available as a substitute in the area to be
served soon enough, at a price low enough, and with a quality high
enough to be a reasonable alternative to the applicant's services.
Capacity (transportation, storage, LNG, or production) owned or
controlled by the applicant and affiliates of the applicant in the
relevant market shall be clearly and fully identified and may not be
considered as alternatives competing with the applicant. Rather, the
capacity of an applicant's affiliates is to be included in the market
share calculated for the applicant. To the extent available, the
statement must include all pertinent data about storage or other
alternatives and other constraining competition.
(5) Statement E--potential competition. This statement must
describe potential competition in the relevant markets. To the extent
available, the statement must include data about the potential
competitors, including their costs, and their distance in miles from
the applicant's facilities and major consuming markets. This statement
must also describe any relevant barriers to entry and the applicant's
assessment of whether ease of entry is an effective counter to attempts
to exercise market power in the relevant markets.
(6) Statement F--maps. This statement must consist of maps showing
the applicant's principal facilities, pipelines to which the applicant
intends to interconnect and other pipelines within the area to be
served, the direction of flow of each line, the
[[Page 60672]]
location of the alternatives to the applicant's service offerings,
including their distance in miles from the applicant's facility. The
statement must include a general system map and maps by geographic
markets. The information required by this statement may be on separate
pages.
(7) Statement G--market-power measures. This statement must set
forth the calculation of the market concentration of the relevant
markets using the Herfindahl-Hirschman Index. The statement must also
set forth the applicant's market share, inclusive of affiliated service
offerings, in the markets to be served. The statement must also set
forth the calculation of other market-power measures relied on by the
applicant. The statement must include complete particulars about the
applicant's calculations.
(8) Statement H--other factors. This statement must describe any
other factors that bear on the issue of whether the applicant lacks
significant market power in the relevant markets. The description must
explain why those other factors are pertinent.
(9) Statement I--prepared testimony. This statement must include
the proposed testimony in support of the application and will serve as
the applicant's case-in-chief, if the Commission sets the application
for hearing. The proposed witness must subscribe to the testimony and
swear that all statements of fact contained in the proposed testimony
are true and correct to the best of his or her knowledge, information,
and belief. The regulation at 18 CFR 284.505(a), requires: (1) a
demonstration that market-based rates are in the public interest and
necessary to encourage the construction of storage capacity in an area
needing storage services, and (2) an explanation of what means the
storage service provider will use to protect customers from the
potential exercise of market power.
Market Based-Rates--Notice of Change in Circumstances
The Commission's regulations at 18 CFR 284.504(b) provide that a
storage service provider granted the authority to charge market-based
rates is required to notify the Commission within 10 days of acquiring
knowledge of significant change occurring in its market power status.
The notification should include a detailed description of the new
facilities/services and their relationship to the storage service
provider. Significant changes include: (1) The storage provider
expanding its storage capacity beyond the amount authorized; (2) The
storage provider acquiring transportation facilities or additional
storage capacity; (3) An affiliate providing storage or transportation
services in the same market area; and (4) The storage provider or an
affiliate acquiring an interest in or is acquired by an interstate
pipeline.
Code of Conduct Record Retention
The Commission's regulations at 18 CFR 284.288(b) and 284.403(b),
respectively, impose a record retention requirement contained in a Code
of Conduct applicable to: (1) interstate pipelines that provide
unbundled natural gas sales service,\1\ and (2) persons who are not
interstate pipelines and whose sales of natural gas are authorized by
the ``automatic'' blanket marketing certificate granted by operation of
18 CFR 284.402.\2\ Any entity fitting one of those descriptions must
retain, for a period of five years, all data and information upon which
it billed the prices it charged for natural gas it sold pursuant to its
market based sales certificate or the prices it reported for use in
price indices.
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\1\ As defined at 18 CFR 284.282(c), unbundled sales service is
gas sales service that is sold separately from transportation
service.
\2\ The regulation at section 284.402(a) provides that any
person who is not an interstate pipeline is granted a blanket
certificate of public convenience and necessity, pursuant to section
7 of the NGA, that authorizes the certificate holder to make sales
for resale of natural gas at negotiated rates in interstate
commerce. Section 2(1) of the NGA (15 U.S.C. 717a(1)) defines a
``person'' to include an individual or corporation.
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FERC uses these records to monitor the jurisdictional
transportation activities and unbundled sales activities of interstate
natural gas pipelines and blanket marketing certificate holders.
The record retention period of five years is necessary due to the
importance of records related to any investigation of possible
wrongdoing and related to assuring compliance with the codes of conduct
and the integrity of the market. The requirement is necessary to ensure
consistency with 18 CFR 1c.1 (``Prohibition of Natural Gas Market
Manipulation'') and the generally applicable five-year statute of
limitations where the Commission seeks civil penalties for violations
of the anti-manipulation rules or other rules, regulations, or orders
to which the price data may be relevant.
Failure to have this information available would mean the
Commission would have difficulty performing its regulatory functions
and to monitor and evaluate transactions and operations of interstate
pipelines and blanket marketing certificate holders. The Code of
Conduct Record Retention burden \3\ associated with the FERC-549
includes both labor \4\ and storage costs.
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\3\ 18 CFR 284.288(b) and 18 CFR 284.403(b)
\4\ The $35.83 hourly cost figure comes from the average cost
(wages plus benefits) of a file clerk (Occupation Code 43-4071) as
posted on the BLS website (<a href="http://www.bls.gov/oes/current/naics2_22.htm">http://www.bls.gov/oes/current/naics2_22.htm</a>).
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Type of Respondents: Jurisdictional interstate and intrastate
natural gas pipelines.
Estimate of Annual Burden: \5\ The Commission estimates the annual
burden and labor costs for the information collection as follows:
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\5\ The Commission defines burden as the total time, effort, or
financial resources expended by persons to generate, maintain,
retain, or disclose or provide information to or for a federal
agency. For further explanation of what is included in the
information collection burden, refer to 5 CFR 1320.3.
FERC-549--Estimated Labor Costs for NGPA Section 311 Transactions, NGA Blanket Certificate Transaction, and Record Retention
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B Annual
A Number of number of C Total number of D Average burden hrs. & cost E Total annual burden hours & total F Cost per
respondents responses per responses ($) \6\ per response annual cost respondent
respondent
(Column A x Column B) ($)..................................... ($)
(Column C x Column D)................... (Column E /
Column A)
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Transportation by Pipelines............. 43 2 86 50 hrs.; $4,550................... 4,300 hrs.; $391,300.................... $9,100
MBR--Initial Approval................... 1 1 1 350 hrs.; $31,850................. 350 hrs.; $31,850....................... 31,850
MBR--Change in Circumstances \7\........ 5 1 5 75 hrs.; $6,825................... 375 hrs.; $6,825........................ 1,365
[[Page 60673]]
Record Retention........................ 299 1 299 1 hr.; $38.71..................... 299 hrs.; $11,574.29.................... 38.71
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Totals.............................. 348 .............. 391 .................................. 5,324 hrs.; $441,549.................... ..............
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Storage Cost: \8\ In addition to the labor costs for record
retention, non-labor costs of record retention and storage are
estimated as follows:
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\6\ For the information collection activities labeled
``Transportation by Pipelines,'' ``MBR--Initial Approval,'' and
``MBR--Change in Circumstances,'' Commission staff estimates that
respondents' hourly labor cost is approximated by the Commission's
average hourly cost (for wages and benefits) for 2022, or $91.00 per
hour.
For the information collection activity labeled ``Record
Retention,'' Commission staff estimates that respondents' hourly
labor cost is $38.71 (for wages and benefits), based on $27.24 (the
mean hourly wage for an information and record clerk, Occupation
Code 43-4000 for Utilities as posted at <a href="http://www.bls.gov/oes/current/naics2_22.htm">http://www.bls.gov/oes/current/naics2_22.htm</a>), plus $11.47 (the average hourly cost for
benefits for private industry, as posted at <a href="https://www.bls.gov/news.release/pdf/ecec.pdf">https://www.bls.gov/news.release/pdf/ecec.pdf</a>.
\7\ This new row was added to account for the differences
between initial MBR filings and filings pertaining to a change in
circumstances.
\8\ Each of the 299 entities is assumed to have both paper and
electronic record retention. Internal analysis assumes 50 percent
paper storage and 50 percent electronic storage.
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<bullet> Paper storage costs (using an estimate of 12.5 cubic feet
x $6.46 per cubic foot): $80.75 per respondent annually. Total annual
paper storage cost to industry ($80.75 x 299 respondents): $24,144.25.
This estimate assumes that a respondent stores 12.5 cubic feet of
paper. We expect that this estimate should trend downward over time as
more companies move away from paper storage and rely more heavily on
electronic storage.
<bullet> Electronic storage costs: $3.18 per respondent annually.
Total annual electronic storage cost to industry ($3.18 x 299
respondents): $950.82. This calculation estimates storage of
approximately 200 MB per year with a cost of $3.18.
Comments are invited on: (1) whether the collection of information
is necessary for the proper performance of the functions of the
Commission, including whether the information will have practical
utility; (2) the accuracy of the agency's estimate of the burden and
cost of the collection of information, including the validity of the
methodology and assumptions used; (3) ways to enhance the quality,
utility and clarity of the information collection; and (4) ways to
minimize the burden of the collection of information on those who are
to respond, including the use of automated collection techniques or
other forms of information technology.
Dated: September 30, 2022.
Kimberly D. Bose,
Secretary.
[FR Doc. 2022-21764 Filed 10-5-22; 8:45 am]
BILLING CODE 6717-01-P
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