Safe Harbor Policy for Data Providers to Price Index Developers

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Published

November 25, 2025

Issuing agencies

Energy DepartmentFederal Energy Regulatory Commission

Abstract

The Federal Energy Regulatory Commission is withdrawing a notice of proposed rulemaking, which proposed to amend its regulations to codify the Safe Harbor Policy established in the Commission's Policy Statement on Natural Gas and Electric Price Indices. The Commission is also terminating this rulemaking proceeding.

Full Text

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<title>Federal Register, Volume 90 Issue 225 (Tuesday, November 25, 2025)</title>
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[Federal Register Volume 90, Number 225 (Tuesday, November 25, 2025)]
[Proposed Rules]
[Pages 53250-53251]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-20897]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

18 CFR Parts 35 and 254

[Docket No. RM20-7-000]

Safe Harbor Policy for Data Providers to Price Index Developers

AGENCY: Federal Energy Regulatory Commission.

ACTION: Withdrawal of notice of proposed rulemaking and termination of
rulemaking proceeding.

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SUMMARY: The Federal Energy Regulatory Commission is withdrawing a
notice of proposed rulemaking, which proposed to amend its regulations
to codify the Safe Harbor Policy established in the Commission's Policy
Statement on Natural Gas and Electric Price Indices. The Commission is
also terminating this rulemaking proceeding.

DATES: The notice of proposed rulemaking published in the Federal
Register at 86 FR 12132 on March 2, 2021, is withdrawn as of November
25, 2025.

FOR FURTHER INFORMATION CONTACT: Gabe Sterling, Legal Information,
Office of Enforcement, Division of Investigations, Federal Energy
Regulatory Commission, 888 First Street NE, Washington, DC 20426, (202)
502-8891 <a href="/cdn-cgi/l/email-protection#9cfbfdfeeef5f9f0b2efe8f9eef0f5f2fbdcfaf9eeffb2fbf3ea"><span class="__cf_email__" data-cfemail="b9ded8dbcbd0dcd597cacddccbd5d0d7def9dfdccbda97ded6cf">[email&#160;protected]</span></a>.

SUPPLEMENTARY INFORMATION:

I. Background

1. On December 17, 2020, the Federal Energy Regulatory Commission
(Commission) issued a notice of proposed rulemaking (NOPR), proposing
to amend 18 CFR 35.41(c), 284.288(a), and 284.403(a) of the
Commission's regulations by adding language to indicate: (1) that there
will be a rebuttable presumption of accuracy, timeliness, and good
faith for data providers, i.e., market participants that submit
transaction data to price index developers; and (2) that inadvertent
reporting errors by data providers will not constitute violations of
the Commission's regulations.\1\
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\1\ Safe Harbor Pol'y for Data Providers to Price Index
Developers, 86 FR 12132 (March 2, 2021) 173 FERC ] 61,238 (2020)
(NOPR).
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2. The Commission received nine comments in response to the
NOPR.\2\ Eight of the comments generally supported the proposal,
reasoning that codification of the Commission's existing policies
regarding natural gas data providers could encourage more price
reporting to index developers.\3\ One commenter objected to the
proposal, arguing that there was no evidence that the regulation would
result in any meaningful improvement in reporting to index
developers.\4\ Commenters also included some proposals beyond the scope
of the NOPR, including changes to the Commission's audit and
investigation processes and creation of natural gas indices directly by
the Commission.
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\2\ Comments were filed by the Electric Power Supply
Association, Argus Media Inc., Pacific Gas and Electric Company, EQT
Energy, LLC, Public Citizen, Inc., the Natural Gas Supply
Association, Edison Electric Institute, the American Public Gas
Association, and American Gas Association.
\3\ See comments of the Electric Power Supply Association, Argus
Media Inc., Pacific Gas and Electric Company, EQT Energy, LLC, the
Natural Gas Supply Association, Edison Electric Institute, the
American Public Gas Association, and American Gas Association.
\4\ Comments of Public Citizen, Inc. at 4.
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3. For the reasons set forth below, we are exercising our
discretion to withdraw the NOPR and terminate the rulemaking
proceeding.

II. Discussion

4. As discussed in the NOPR, the Commission initially adopted and
clarified policies on index development in the wake of the 2000-2001
Western Energy Crisis.\5\ In this Price Index Policy Statement, the
Commission affirmed the need for robust, reliable indices and accurate
reporting of transaction data to price index developers. The Commission
issued the Price Index Policy Statement, in part, ``to explain what the
Commission expects of natural gas and electric price indices and under
what conditions the Commission will give industry participants safe
harbor protection for good faith reporting of transaction data to
entities that develop price indices.'' \6\ Regarding this safe harbor,
``the Commission [created] a rebuttable presumption that companies and
individuals that report trade data to price index developers in
accordance with the standards adopted here are doing so in good faith,
and will not be investigated or subjected to administrative penalties
for inadvertent mistakes made in the course of reporting energy
transaction information.'' \7\
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\5\ Price Discovery in Nat. Gas & Elec. Mkts., 104 FERC ]
61,121, at P 37, clarified, 105 FERC ] 61,282 (2003), further
clarified, 112 FERC ] 61,040 (2005) (collectively, Price Index
Policy Statement).
\6\ Price Index Policy Statement, 104 FERC ] 61,121 at P 5.
\7\ NOPR, 173 FERC ] 61,238 at P 6 (explaining the ``Safe Harbor
Policy'' adopted in the Price Index Policy Statement).
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5. The NOPR proposed to codify the Safe Harbor Policy in the
Commission's regulations to eliminate concern that the Commission might
choose to depart

[[Page 53251]]

from the Safe Harbor Policy in future enforcement proceedings. The NOPR
postulated that, by providing reassurance through codification,
regulatory risk would be reduced and more participants would elect to
report transactions to price index developers.\8\
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\8\ Id. at P 11.
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6. Concurrent with the issuance of the NOPR, the Commission issued
a Proposed Revised Policy Statement \9\ on price indices to encourage
additional market participants to report their transactions to price
index developers, provide greater transparency into the natural gas
price formation process, and increase confidence in the accuracy and
reliability of wholesale natural gas prices. Subsequently, on April 21,
2022, the Commission adopted a Revised Policy Statement addressing
these matters.\10\ In the Revised Policy Statement, the Commission
stated that it did not intend to act on the NOPR at that time but
reiterated that the Safe Harbor Policy ``remains in effect.'' \11\
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\9\ Actions Regarding the Comm'n's Pol'y on Price Index
Formation & Transparency, & Indices Referenced in Nat. Gas & Elec.
Tariffs, 85 FR 83940 (Dec. 23, 2020) 173 FERC ] 61,237 (2020)
(Proposed Revised Policy Statement).
\10\ Actions Regarding the Comm'n's Pol'y on Price Index
Formation & Transparency, & Indices Referenced in Nat. Gas & Elec.
Tariffs, 87 FR 25237 (April 28, 2022) 179 FERC ] 61,036 (2022)
(Revised Policy Statement). The Revised Policy Statement allowed
greater flexibility for market participants choosing to provide data
to index developers. The Revised Policy Statement permitted market
participants that report transaction data to price index developers
to report either their non-index based next-day transactions, their
non-index based next-month transactions, or both, to price index
developers. In addition, the Commission encouraged data providers to
report transactions to as many Commission-approved price index
developers as possible, and allowed data providers to self-audit on
a biennial basis.
\11\ Id. at P 106.
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7. Since the issuance of the NOPR, the price reporting burden for
data providers has lessened and the number of new data providers has
increased, thereby, bolstering price index formation. The Revised
Policy Statement, issued in 2022, reduced the price reporting burden by
allowing data providers to report their monthly transactions to price
index developers without also being required to report their daily
transactions. The next year, 2023, twenty-three new companies began
reporting to price index developers according to Form No. 552
submissions.\12\ Some of these newly-reporting companies report monthly
(rather than monthly and daily) transactions to price index developers,
taking advantage of the data reporting flexibilities announced in the
Revised Policy Statement. In addition, some price index developers have
increased the robustness of their price indices by including a large
number and volume of fixed-priced transactions from the
Intercontinental Exchange (ICE).\13\ Further, consistent with the
Revised Policy Statement, four natural gas price index developers
submitted successful reapprovals in Docket No. PL03-3 demonstrating
that their processes continue to meet all or substantially all of the
Commission's standards for price index developers' indices to be
referenced in Commission-jurisdictional tariffs.\14\ These events
indicate that formal amendment of the Commission's regulations is not
necessary to promote reporting of transactions to price index
developers at this time.
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\12\ Form No. 552 information may be accessed at <a href="http://www.ferc.gov/industries-data/natural-gas/industry-forms/form-no-552-download-data">www.ferc.gov/industries-data/natural-gas/industry-forms/form-no-552-download-data</a>.
\13\ See, e.g., S&P Global Commodity Insights, FERC Policy
Statement Price Index Developer Commission Re-approval, Docket No.
PL03-3-000, at P 4 (February 9, 2023) (noting inclusion of ICE data
in the relevant price indices).
\14\ Revised Policy Statement, 173 FERC ] 61,237 at P 76.
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8. Consistent with the Safe Harbor Policy, for over two decades the
Commission has neither investigated nor imposed penalties on any
company for inadvertent reporting errors. As noted above, in 2022, the
Commission reiterated the Safe Harbor Policy in the Revised Policy
Statement.\15\ We remain committed to the Safe Harbor Policy, as it
promotes robust, voluntary reporting to index developers. Consistent
application of the Safe Harbor Policy and the Revised Policy Statement
will continue to reduce any lingering concerns by data providers and
other market participants about the regulatory risk of reporting to
index developers.
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\15\ Id. at P 106.
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The Commission orders: The NOPR is hereby withdrawn and Docket No.
RM20-7-000 is hereby terminated.

By direction of the Commission.

Issued: November 20, 2025.
Carlos D. Clay,
Deputy Secretary.
[FR Doc. 2025-20897 Filed 11-24-25; 8:45 am]
BILLING CODE 6717-01-P

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