FERC is obligated by statute to regulate key economic aspects of the electric, natural gas and oil industries. The law requires the CommissionÂs economic regulatory activity because the transmission of electricity, natural gas, and oil has often been a natural monopoly. In enacting Part II of the Federal Power Act (FPA) in 1935, one of the primary Congressional goals was to protect electric ratepayers from abuses of market power. To accomplish this goal, Congress directed the FERC to oversee sales for resale and transmission service provided by public utilities in interstate commerce. Under Section 203 of the FPA, the FERC must review proposed mergers, acquisitions and dispositions of jurisdictional facilities by public utilities, if the value of facilities exceeded $50,000, (now $10 million for certain transactions due to EPACT 2005, see above) and must approve such transactions if they are consistent with the public interest. Today, one of FERCÂs overarching goals is to promote competition in wholesale power markets, having determined that effective competition, as opposed to traditional forms of price regulation, can best protect the interests of ratepayers. Market power, however, can be exercised to the detriment of effective competition and exercise of market power in bulk power markets. The Final Rule adopted the proposal in the Blanket Authorization NOPR to pre-authorize a public utility to dispose of less than 10 percent of its voting securities to a public utility holding company if, after the disposition, the holding company and any associate or affiliate companies in aggregate will own less than 10 percent of the outstanding voting interests of that public utility. Based on comments to the Blanket Authorization NOPR, the Final Rule adopted NOPR's proposal and added five blanket authorizations under section 203(a)(1). The Final Rule on Rehearing (RM07-21-001) affirms the five categories of blanket authorizations and clarifies specific authorizations contained in the final rule. A supplemental order RM07-21-002 seeks comment on a proposed information collection on the expanded blanket authorization under 18 CFR 33.1(c)(12). The Commission seeks comment on how to tailor the reporting requirements.
Section 203 of the FPA provides that FERC approval is required for transactions in which a public utility disposes of jurisdictional facilities, merges such facilities with facilities owned by another person, or acquires the securities of another public utility. Under the statute, FERC must find that the proposed transaction will be consistent with the public interest. The filing requirements under review and define the terms of information necessary to investigate the possible impact of the proposed transaction on public interest.
While the Commission is implementing the amended provisions of section 203, the changes do not substantially change the filing requirements, and also will result in minimal changes to the reporting burden as provided for in the Final Rule on Rehearing. With respect to the Supplemental Order, there will be a program change that results in a burden increase to reflect transactions that will be permitted under the expanded blanket authorization.
On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).
The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control number;
If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.
RM07-21-002 Supplemental Order and Data Request.doc
Supporting Statement RM7-21-001 On Rehearing.docm
Application Under Federal Power Act Section 203,