FERC-65B Supp Stmt 2008 Final

Docket No. IC08-65B-000 & 001 16

Supporting Statement for

FERC-65B "Waiver Notification”

(Three Year Extension Requested through February 29, 2012)

The Federal Energy Regulatory Commission (FERC or Commission) requests that the Office of Management and Budget (OMB) review and extend its approval of FERC-65B “Waiver Notification” (OMB No. 1902-0217) through February 29, 2012. Current OMB approval expires on February 28, 2008.

A. Justification

1. CIRCUMSTANCES THAT MAKE THE COLLECTION OF INFORMATION NECESSARY

Section 1264 of PUHCA 2005¹, (Attachment A), generally provides that holding companies and associated entities are required to give the Commission access to books and records relevant to costs incurred by a public utility which are necessary or appropriate for the protection of utility customers with respect to jurisdictional rates. Section 1275 of PUHCA² 2005 addresses the Commission’s review and authorization of the allocation of costs for non-power goods or administrative or management services when requested by a holding company system or state commission. In addition, the Commission’s rate authorities under the Federal Power Act³ enable the Commission to detect and disallow from jurisdictional rates any imprudently incurred, unjust or unreasonable, or unduly discriminatory or preferential costs resulting from affiliate transactions between companies in the same holding company system. This includes both power transactions and non-power goods or services transactions between Commission-regulated companies that have captive customers and their “unregulated” affiliates. The Commission routinely places code of conduct restrictions on power sales at market-based rates between regulated and non-regulated affiliates and has also placed conditions on non-power goods and services transactions involving public utilities to help ensure these businesses engage in appropriate market behavior.

The Commission issued Order No. 667 in 2005 to implement the repeal of the Public Utility Holding Company Act of 1935 and the enactment of the Public Utility Holding Company Act of 2005. The new FERC regulations this Order put in place adopted, modified, and streamlined the reporting requirements for holding companies which the Securities and Exchange Commission specified in 17 CFR §§250.1, 250.26, 250.80, 250.93, 250.94, and 259.313.

The Commission is concurrently requesting a collection approval extension from OMB for the related collection FERC-65 “Notification of Holding Company Status.” This collection is used to track the corporate identities of public utility and natural gas companies as well as the organizational structure of business unit constituents in holding company systems. The Commission needs this information to discern whether the reported businesses fall within its jurisdiction.

Companies seeking to claim a waiver from the PUHCA 2005 Section 1264 requirements would file a FERC-65B (Waiver Notification)⁴. A waiver is allowed by the Commission if the books, accounts, memoranda, and other records of any person or entity are not relevant to the jurisdictional rates of a public utility or natural gas company; or if any class of transactions is not relevant to the jurisdictional rates of a public utility or natural gas company. Commission regulations (Attachment B) in 18 CFR 366.4 describe the exemption criteria in more detail. The regulations do not specify a format in which respondents must submit the required information. These filings are docketed as PH08-, PH07-, etc. in the Commission’s eLibrary system (http://www.ferc.gov/docs-filing/elibrary.asp).

2. HOW, BY WHOM AND FOR WHAT PURPOSE IS THE INFORMATION TO BE USED AND THE CONSEQUENCES OF NOT COLLECTING THE INFORMATION

The FERC-65B is submitted by those entities requesting a waiver from the PUHCA 2005 Section 1264 requirements. The Commission has allowed waivers of these requirements for any holding company if the fit into one or more of the following groups: (1) single-state holding company systems; (2) holding companies that own generating facilities that total 100 MW or less in size and are used fundamentally for their own load or for sales to affiliated end-users; and (3) investors in independent transmission-only companies.

The waivers allowed benefit many small entities. Without the waiver option, the burden on small entities would be significant.

3. DESCRIBE ANY CONSIDERATION OF THE USE OF IMPROVED INFORMATION TECHNOLOGY TO REDUCE BURDEN AND TECHNICAL OR LEGAL OBSTACLES TO REDUCING BURDEN

To minimize filer burden, the Commission accepts FERC-65B electronically through its website-based eFiling system (see http://www.ferc.gov/docs-filing/efiling.asp). Filers preferring to not eFile may submit hardcopy filings to the Commission by mail or via courier services.

4. DESCRIBE EFFORTS TO IDENTIFY DUPLICATION AND SHOW SPECIFICALLY WHY ANY SIMILAR INFORMATION ALREADY AVAILABLE CANNOT BE USED OR MODIFIED FOR USE FOR THE PURPOSE(S) DESCRIBED IN INSTRUCTION NO. 2

Commission staff who use the information and who are knowledgeable of the requirements have not been able to find any other source of the information. In addition, the public, in response to a Commission Federal Register Notice, and filers of the information have not identified any other source of this information.

5. METHODS USED TO MINIMIZE THE BURDEN IN THE COLLECTION OF INFORMATION INVOLVING SMALL ENTITIES

This filing exists to benefit small entities. It allows for a waiver from the books and records provisions of 18 CFR 366. The waiver allowances provided in 18 CFR § 366.4 minimize the effect on small entities.

6. CONSEQUENCE TO FEDERAL PROGRAM IF THE COLLECTION WERE CONDUCTED LESS FREQUENTLY

There is no requirement to file the FERC-65B on a recurring basis. The FERC-65 filing deadline was June 15, 2006 for all holding companies in existence on February 8, 2006. Holding companies formed after February 8, 2006 must file within thirty days of becoming a holding company. The FERC-65B should be filed in a timely manner taking the FERC-65 deadlines into consideration.

7. EXPLAIN ANY SPECIAL CIRCUMSTANCES RELATING TO THE INFORMATION COLLECTION

There are no special circumstances relating to the FERC-65B information collection.

8. DESCRIBE EFFORTS TO CONSULT OUTSIDE THE AGENCY: SUMMARIZE PUBLIC COMMENTS AND THE AGENCY’S RESPONSE TO THESE COMMENTS

In accordance with 5 CFR § 1320.8(d), the Commission’s notice to renew its OMB approval of the FERC-65B information collection was published in the Federal Register on October 16, 2008⁵ (Attachment C). The Commission did not receive any comments in response to this notice.

9. EXPLAIN ANY PAYMENT OR GIFTS TO RESPONDENTS

No payments or gifts have been made to respondents.

10. DESCRIBE ANY ASSURANCE OF CONFIDENTIALITY PROVIDED TO RESPONDENTS

The information submitted to the Commission is public information and therefore is not considered confidential. However, specific requests for confidential treatment to the extent permitted by law are considered pursuant to 18 CFR § 388.112.

11. PROVIDE ADDITIONAL JUSTIFICATION FOR ANY QUESTIONS OF A SENSITIVE NATURE

There are no questions of a sensitive nature.

12. ESTIMATED BURDEN OF THE COLLECTION OF INFORMATION

Number of Respondents Annually		Number of Responses per Respondent		Average Burden Hours per Response		Total Annual Burden Hours
10	x	1	x	1	=	10

The estimated burden is based on Commission staff experience with the collection and is as follows:

13. ESTIMATE OF TOTAL ANNUAL COST OF BURDEN TO RESPONDENTS

The cost of the information collection to respondents is as follows:

Total Respondent Burden Hours		Number of Hours per Staff Year		Cost per Staff Employee		Total Annualized Cost
10	÷	2,080	x	$126,384	=	$607.62

The estimated total cost to respondents is $607.62. [10 hours divided by 2080 hours⁶ per year, times $126,384⁷ equals $607.62]. The average cost per respondent is $60.76

The respondent burden includes the total time, effort, and financial resources expended by the respondent to assemble and disseminate the information. The cost estimate is based on salaries for professional and support staff, as well as direct and indirect overhead costs. Direct costs include all costs directly attributable to providing this information, such as administrative costs and the cost for information technology.

14. ESTIMATED ANNUALIZED COST TO FEDERAL GOVERNMENT

The estimate of the cost to the Federal government is based on salaries for professional and clerical support and is as follows:

	Total Staff Burden Hours		Number of Hours per Staff Year		Cost per Staff Employee		Total Annualized Cost
Clearance:	40	÷	2080	x	$126,384	=	$2430.46
Analysis:	120	÷	2080	x	$126,384	=	$7291.39
Total:						=	$9721.85

15. REASONS FOR CHANGES IN BURDEN INCLUDING THE NEED FOR ANY INCREASE

There were adjustments to both the reporting burden and costs to the public. The adjustment to the reporting burden is due to a decrease in the number of entities that filed for a waiver. When the Commission issued the final rule, it estimated that 20 entities would file for a waiver. In practice, only 10 entities have filed for a waiver. The adjustment to costs is to reflect changes due to inflation.

16. TIME SCHEDULE FOR INFORMATION COLLECTION AND PUBLICATION

This is not an information collection for which results are published.

17. DISPLAY OF EXPIRATION DATE

Utilities prepare and submit filings that reflect unique or specific circumstances related to their filing. The information is not collected on a standard, preprinted form which would allow the display of the expiration date for OMB approval of the information collected.

18. EXCEPTIONS TO THE CERTIFICATION STATEMENT

The information collected for this reporting requirement is not used for statistical purposes. Therefore, the Commission does not use Item No. 19(i) “effective and efficient statistical survey methodology” as stated in OMB Form 83-1. The information collected is case specific to each respondent.

B. Collection of Information Employing Statistical Methods

This is not a collection of information employing statistical methods.

ATTACHMENT A

Public Utility Holding Company Act of 2005

SEC. 1264. FEDERAL ACCESS TO BOOKS AND RECORDS.

(a) IN GENERAL.—Each holding company and each associate company thereof shall maintain, and shall make available to the Commission, such books, accounts, memoranda, and other records as the Commission determines are relevant to costs incurred by a public utility or natural gas company that is an associate company of such holding company and necessary or appropriate for the protection of utility customers with respect to jurisdictional rates.

(b) AFFILIATE COMPANIES.—Each affiliate of a holding company or of any subsidiary company of a holding company shall maintain, and shall make available to the Commission, such books, accounts, memoranda, and other records with respect to any transaction with another affiliate, as the Commission determines are relevant to costs incurred by a public utility or natural gas company that is an associate company of such holding company and necessary or appropriate for the protection of utility customers with respect to jurisdictional rates.

(c) HOLDING COMPANY SYSTEMS.—The Commission may examine the books, accounts, memoranda, and other records of any company in a holding company system, or any affiliate thereof, as the Commission determines are relevant to costs incurred by a public utility or natural gas company within such holding company system and necessary or appropriate for the protection of utility customers with respect to jurisdictional rates.

(d) CONFIDENTIALITY.—No member, officer, or employee of the Commission shall divulge any fact or information that may come to his or her knowledge during the course of examination of books, accounts, memoranda, or other records as provided in this section, except as may be directed by the Commission or by a court of competent jurisdiction.

ATTACHMENT B

TITLE 18--CONSERVATION OF POWER AND WATER RESOURCES

CHAPTER I--FEDERAL ENERGY REGULATORY COMMISSION, DEPARTMENT OF ENERGY

PART 366_PUBLIC UTILITY HOLDING COMPANY ACT OF 2005--Table of Contents

Subpart A_PUHCA 2005 Definitions and Provisions

Sec. 366.2 Commission access to books and records.

(a) In general. Unless otherwise exempted by Commission rule or order, each holding company and each associate company thereof shall maintain, and shall make available to the Commission, such books, accounts, memoranda, and other records as the Commission determines are relevant to costs incurred by a public utility or natural gas company that is an associate company of such holding company and necessary or appropriate for the protection of utility customers with respect to jurisdictional rates. However, for purposes of this subchapter, no provision in the subchapter shall apply to or be deemed to include:

(1) The United States;

(2) A state or political subdivision of a state;

(3) Any foreign governmental authority not operating in the United States;

(4) Any agency, authority, or instrumentality of any entity referred to in paragraphs (a)(1), (2), or (3) of this section; or

(5) Any officer, agent, or employee of any entity referred to in paragraphs (a)(1), (2), (3), or (4) of this section as such in the course of his or her official duty.

(b) Affiliate companies. Unless otherwise exempted by Commission rule or order, each affiliate of a holding company or of any subsidiary company of a holding company shall maintain, and shall make available to the Commission, such books, accounts, memoranda, and other records with respect to any transaction with another affiliate, as the Commission determines are relevant to costs incurred by a publicutility or natural gas company that is an associate company of such holding company and necessary or appropriate for the protection of utility customers with respect to jurisdictional rates.

(c) Holding company systems. The Commission may examine the books, accounts, memoranda, and other records of any company in a holding company system, or any affiliate thereof, as the Commission determines are relevant to costs incurred by a public utility or natural gas company within such holding company system and necessary or appropriate for the protection of utility customers with respect to jurisdictional

rates.

(d) Confidentiality. No member, officer, or employee of the Commission shall divulge any fact or information that may come to his or her knowledge during the course of examination of books, accounts, memoranda, or other records as provided in this section, except as may be directed by the Commission or by a court of competent jurisdiction.

Sec. 366.3 Exemption from Commission access to books and records; waivers of

accounting, record-retention, and reporting requirements.

(a) Exempt classes of entities. Any person that is a holding company solely with respect to one or more of the following will be exempt from the requirements of Sec. Sec. 366.2 and 366.21 and any associated service company will be exempt from the requirements of Sec. 366.2, 366.22, and 366.23; such person need not make the filings provided in Sec. 366.4(a) or (b):

(1) Qualifying facilities under the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2601 et seq.);

(2) Exempt wholesale generators; or

(3) Foreign utility companies.

(b) Exemptions of additional persons and classes of transactions--

(1) Commission authority to exempt additional persons and classes of transactions. The Commission shall exempt a person or class of transactions from the requirements of Sec. 366.2 and the accounting, record-retention, and reporting requirements of Sec. 366.21,

366.22, and 366.23 if, upon individual application or upon the motion of the Commission--

(i) The Commission finds that the books, accounts, memoranda, and other records of any person are not relevant to the jurisdictional rates of a public utility or natural gas company; or

(ii) The Commission finds that any class of transactions is not relevant to the jurisdictional rates of a public utility or natural gas company.

(2) Commission exemption of additional persons and classes of transactions. The Commission has determined that the following persons and classes of transactions satisfy the requirements of paragraph (b)(1) of this section, and any person that is a holding company solely with respect to one or more of the following may file to obtain an exemption for that person or class of transactions, as appropriate, from the

requirements of Sec. Sec. 366.2 and 366.21 (applicable to holding companies) and Sec. Sec. 366.2, 366.22, and 366.23 (applicable to the holding companies' associated service companies), pursuant to the notification procedure contained in Sec. 366.4(b):

(i) Passive investors, so long as the ownership remains passive, including:

(A) Mutual funds,

(B) Collective investment vehicles whose assets are managed by banks, savings and loan associations and their operating subsidiaries, or brokers/dealers; and

(C) Persons that directly, or indirectly through their subsidiaries or affiliates, buy and sell the securities of public-utility companies in the ordinary course of business as a broker/dealer, underwriter or fiduciary, and not exercising operational control over such companies;

(ii) Commission-jurisdictional utilities that have no captive customers and that are not affiliated with any jurisdictional utility that has captive customers, and that do not own Commission-jurisdictional transmission facilities or provide Commission-jurisdictional transmission services and that are not affiliated with persons that own Commission-jurisdictional transmission facilities or provide Commission-jurisdictional transmission services, and holding companies that own or control only such utilities;

(iii) Transactions where the holding company affirmatively certifies on behalf of itself and its subsidiaries, as applicable, that it will not charge, bill or allocate to the public utility or natural gas company in its holding company system any costs or expenses in

connection with goods and services transactions, and will not engage in financing transactions with any such public utility or natural gas company;

(iv) Transactions between or among affiliates that are independent of and do not include a public utility or natural gas company;

(v) Electric power cooperatives;

(vi) Local distribution companies that are not regulated as ``natural gas companies'' pursuant to sections 1(b) or 1(c) of the Natural Gas Act, (15 U.S.C. 717(b), (c)).

(vii) Natural gas companies that distribute natural or manufactured gas at retail to industrial or electric generation customers and/or distribute de minimis amounts of natural or manufactured gas at retail to farmer or rancher customers located adjacent to the natural gas company's rights-of-way.

(c) Waivers. Any person that is a holding company solely with respect to one or more of the following may file to obtain a waiver of the accounting, record-retention, and reporting requirements of Sec. 366.21 (applicable to holding companies) and Sec. Sec. 366.22 and 366.23 (applicable to the holding companies' associated service companies), pursuant to the notification procedures contained in Sec. 366.4(c):

(1) Single-state holding company systems; for purposes of Sec. 366.3(c)(1), a holding company system will be deemed to be a single-state holding company system if the holding company system derives no more than 13 percent of its public-utility company revenues from outside a single state (for purposes of this waiver, revenues derived from

exempt wholesale generators, foreign utility companies and qualifying facilities will not be considered public-utility company revenues);

(2) Holding companies that own generating facilities that total 100 MW or less in size and are used fundamentally for their own load or for sales to affiliated end-users; or

(3) Investors in independent transmission-only companies.

(d) Other requests for exemptions and waivers. Any person seeking an exemption or waiver that is not covered by paragraphs (a), (b)(2) or (c) of this section, shall file a petition for declaratory order pursuant to Sec. 385.207(a) of this chapter justifying the request for exemption or waiver. Any person seeking such an exemption or waiver shall bear the burden of demonstrating that such an exemption or waiver is warranted.

(e) Nothing in paragraphs (a)-(d) of this section shall affect the authority of the Commission under the Federal Power Act (16 U.S.C. 791 et seq.), the Natural Gas Act (15 U.S.C. 717 et seq.), or other applicable law, including the authority of the Commission with respect to rates, charges, classifications, rules, regulations, practices,

contracts, facilities, and services under the Federal Power Act and Natural Gas Act and with respect to access to books and records under the Federal Power Act and Natural Gas Act.

[Order No. 667-A, 71 FR 28457, May 16, 2006, as amended by Order 667-B,

71 FR 42755, July 28, 2006]

Sec. 366.4 FERC-65, notification of holding company status, FERC-65A, exemption notification, and FERC-65B, waiver notification.

(a) Notification of holding company status--(1) Persons that meet the definition of a holding company as provided by Sec. 366.1 as of February 8, 2006 shall notify the Commission of their status as a holding company no later than June 15, 2006. Holding companies formed after February 8, 2006 shall notify the Commission of their status as a

holding company, no later than the later of June 15, 2006 or 30 days after they become holding companies.

(2) The notification required pursuant to Sec. 366.4(a)(1) shall be made by submitting FERC-65 (notification of holding company status), which shall contain the following: The identity of the holding company and of the public utilities and natural gas companies in the holding company system; the identity of service companies, including special-

purpose subsidiaries providing non-power goods and services; the identity of all affiliates and subsidiaries; and their corporate relationship to each other. This filing will be for informational purposes and will not be noticed in the Federal Register, but will be available on the Commission's Web site. FERC-65 must be subscribed, consistent with Sec. 385.2005(a) of this chapter, but need not be verified.

(3) Notwithstanding Sec. 366.4(a)(1) and (2), holding companies that are exempt holding companies pursuant to Sec. 366.3

(a) are not required to notify the Commission of their status or to submit FERC-65 (notification of holding company status).

(b) FERC-65A (exemption notification) and petitions for exemption.

(1) Persons who, pursuant to Sec. 366.3(b)(2), seek exemption from the requirements of Sec. 366.2 and the accounting, record-retention, and reporting requirements of Sec. Sec. 366.21, 366.22, and 366.23, may seek such exemption by filing FERC-65A (exemption notification); FERC-65A must be subscribed, consistent with Sec. 385.2005(a) of this chapter, but need not be verified. These filings will be noticed in the Federal Register; persons who file FERC-65A must include a form of notice suitable for publication in the Federal Register in accordance with the specifications in Sec. 385.203(d) of this chapter. Persons who file FERC-65A in good faith shall be deemed to have a temporary exemption upon filing. If the Commission has taken no action within 60 days after the date of filing FERC-65A, the exemption shall be deemed to have been granted. The Commission may toll the 60-day period to request additional information or for further consideration of the request; in such case, the temporary exemption will remain in effect until such time as the Commission has determined whether to grant or deny the exemption. Authority to toll the 60-day period is delegated to the Secretary or the Secretary's designee.

(2) Notwithstanding Sec. 366.4(b)(1), persons that are exempt holding companies pursuant to Sec. 366.3(a) are not required to file FERC-65A (exemption notification).

(3) Persons that do not qualify for exemption pursuant to Sec. 366.3(b)(2) may seek an individual exemption from this subchapter. They may not do so by means of filing FERC-65A and instead must file a petition for declaratory order as required under Sec. 366.3(d). Such petitions will be noticed in the Federal Register; persons that file a petition must include a form of notice suitable for publication in the Federal Register in accordance with the specifications in Sec. 385.203(d) of this chapter. No temporary exemption will attach upon filing and the requested exemption will be effective only if approved by

the Commission. Persons may also seek exemptions for classes of transactions by filing a petition for declaratory order pursuant to Sec. 385.207(a) of this chapter justifying the request for exemption. Any person seeking such an exemption shall bear the burden of

demonstrating that such exemption is warranted.

(c) FERC-65B (waiver notification) and petitions for waiver.

(1) Persons who, pursuant to Sec. 366.3(c), seek waiver of the accounting, record-retention, and reporting requirements of Sec. Sec. 366.21, 366.22, and 366.23, may seek such waiver by filing FERC-65B (waiver notification); FERC-65B must be subscribed, consistent with Sec. 385.2005(a) of this chapter, but need not be verified. FERC-65B will be noticed in the Federal Register; persons who file FERC-65B must include a form of notice suitable for publication in the Federal Register in accordance with the specifications in Sec. 385.203(d) of this chapter. Persons who file FERC-65B in good faith shall be deemed to have a temporary exemption upon filing. If the Commission has taken no action within 60 days after the date of filing of FERC-65B, the waiver shall be deemed to have been granted. The Commission may toll the 60-day period to request additional information or for further consideration of the request; in such case, the temporary waiver will remain in effect until such time as the Commission has determined whether to grant or deny the waiver. Authority to toll the 60-day period is delegated to the Secretary or the Secretary's designee.

(2) Persons that do not qualify for waiver pursuant to Sec. 366.3(c) may seek an individual waiver from this subchapter. They may not do so by means of filing FERC-65B and instead must file a petition for declaratory order as required under Sec. 366.3(d). Such petitions will be noticed in the Federal Register; persons that file a petition must include a form of notice suitable for publication in the Federal Register in accordance with the specifications in Sec. 385.203(d) of this chapter. No temporary waiver will attach upon filing and the requested exemption will be effective only if approved by the Commission. Persons may also seek waivers for classes of transactions by filing a petition for declaratory order pursuant to Sec. 385.207(a) of this chapter justifying the request for waiver. Any person seeking such waiver shall bear the burden of demonstrating that such waiver is warranted.

(d) Procedure for notification of material change in facts. (1) If there is any material change in facts that may affect an exemption or waiver granted pursuant to paragraphs (b) or (c) of this section, the person receiving the exemption or waiver shall within 30 days of the material change in facts:

(i) Submit a new FERC-65A (exemption notification) or FERC-65B (waiver notification) or a petition for declaratory order, pursuant to paragraphs (b) or (c) of this section, as appropriate;

(ii) File a written explanation why the material change in facts

does not affect the exemption or waiver; or

(iii) Notify the Commission that it no longer seeks to maintain its exemption or waiver.

(2) If there is a material change in facts that may affect the automatic exemption allowed under Sec. 366.3(a) of this subpart, the person receiving the exemption or waiver shall within 30 days of the material change in facts:

(i) Submit a FERC-65A (exemption notification) or FERC-65B (waiver notification) or a petition for declaratory order, pursuant to paragraphs (b) or (c) of this section, as appropriate;

(ii) File a written explanation why the material change in facts does not affect the exemption; or

(iii) Notify the Commission that it no longer seeks to maintain its exemption.

(e) Revocation of exemption or waiver.

(1) If a person that is exempt pursuant to Sec. 366.3(a) fails to conform to the criteria for such exemption, or if a person that has been granted an exemption or waiver pursuant to paragraphs (b) or (c) of this section either fails to conform to the criteria for such exemption or waiver or fails to conform with any material facts or representations presented in its submittals to the Commission, such person may no longer rely upon the exemption or waiver.

(2) The Commission may, on its own motion or on the complaint of any person, revoke the exemption or waiver granted under Sec. 366.3(a) or paragraphs (b) or (c) of this section, if the person fails to conform to any of the criteria under this part for exemption or waiver.

[Order No. 667-A, 71 FR 28457, May 16, 2006, as amended by Order 699, 72

FR 45326, Aug. 14, 2007]

ATTACHMENT C

UNITED STATES OF AMERICA

FEDERAL ENERGY REGULATORY COMMISSION

[Docket No. IC08-65B-001; FERC-65B]

COMMISSION INFORMATION COLLECTION ACTIVITIES, PROPOSED COLLECTION; COMMENT REQUEST; EXTENSION

(October 8, 2008)

AGENCY: Federal Energy Regulatory Commission.

ACTION: Notice.

SUMMARY: In compliance with the requirements of section 3506(c)(2)(a) of the Paperwork Reduction Act of 1995 (Pub. L. No. 104-13), the Federal Energy Regulatory Commission (Commission) is soliciting public comment on the specific aspects of the information collection described below.

DATES: Comments on the collection of information are due November 14, 2008.

ADDRESSES: Copies of sample filings of the proposed information collection can be obtained from the Commission’s website (http://www.ferc.gov/docs-filings/elibrary.asp) or from the Federal Energy Regulatory Commission, Attn: Michael Miller, Office of the Executive Director, , 888 First Street NE, Washington, DC 20426. Comments may be filed either in paper format or electronically. Those parties filing electronically do not need to make a paper filing. For paper filing, the original and 14 copies of such comments should be submitted to the Secretary of the Commission, Federal Energy Regulatory Commission, 888 First Street NE, Washington, DC 20426 and refer to Docket No. IC07-561-000.

Documents filed electronically via the Internet must be prepared in an acceptable filing format and in compliance with the Commission’s submission guidelines. Complete filing instructions and acceptable filing formats are available at http://www.ferc.gov/help. To file the document, access the Commission’s website at http://www.ferc.gov, choose the Documents & Filings tab, click on eFiling, then follow the instructions given. First time users will have to establish a user name and password. The Commission will send an automatic acknowledgement to the sender’s e-mail address upon receipt of comments.

All comments may be viewed, printed or downloaded remotely via the Internet through FERC’s homepage using the eLibrary link. For user assistance, contact [email protected] or toll-free at (866) 208-3676 or for TTY, contact (202)

502-8659.

FOR FURTHER INFORMATION CONTACT: Michael Miller, 888 First St. NE, Washington, DC 20426. He may be reached by telephone at (202) 502-8415, by fax at (202) 273-0873, and by e-mail at [email protected].

SUPPLEMENTARY INFORMATION: The information collected under the requirements of FERC-65B "Waiver Notification” (OMB No. 1902-0217) is used by the Commission to implement the statutory provisions of the Public Utility Holding Company Act of 2005. Among other things, PUHCA 2005 was intended to give the Commission access to books and records relevant to costs incurred by a public utility or natural gas company which are necessary or appropriate for the protection of utility customers with respect to jurisdictional rates. This intention was made clear in Section 1264 of the Energy Policy Act of 2005, 42 U.S.C. § 16452. However, in 18 CFR 366.3(c) the Commission has allowed for waivers from related requirements for any holding company with respect to one or more of the following: (1) single-state holding company systems; (2) holding companies that own generating facilities that total 100 MW or less in size and are used fundamentally for their own load or for sales to affiliated end-users; or (3) investors in independent transmission-only companies.

Entities meeting these criteria may file a FERC-65B pursuant to the notification procedures contained in 18 CFR 366.4 to obtain a waiver. Filings may be made in hardcopy or electronically through the Commission’s website.

Action: The Commission is requesting a three-year extension of the current expiration date.

Burden Statement: Public reporting burden for this collection is estimated as:

Number of Respondents Annually (1)	Number of Responses per Respondent (2)	Average Burden Hours per Response (3)	Total Annual Burden Hours (1)x(2)x(3)
10	1	1	10

The estimated total cost to respondents is $607.62. [10 hours divided by 2080 hours⁸ per year, times $126,384⁹ equals $607.62]. The average cost per respondent is $60.76

The reporting burden includes the total time, effort, or financial resources expended to generate, maintain, retain, disclose, or provide the information including: (1) reviewing instructions; (2) developing, acquiring, installing, using technology and systems for the purposes of collecting, validating, verifying, processing, maintaining, disclosing and providing information; (3) adjusting the existing ways to comply with any previously applicable filing instructions and requirements; (4) training personnel to respond to a collection of information; (5) searching data sources; (6) completing and reviewing the collection of information; and (7) transmitting, or otherwise disclosing the information.

The cost estimate for respondents is based upon salaries for professional and clerical support, as well as direct and indirect overhead costs. Direct costs include all costs directly attributable to providing this information, such as administrative costs and the cost for information technology. Indirect or overhead costs are costs incurred by an organization in support of its mission. These costs apply to activities which benefit the whole organization rather than any one particular function or activity.

Comments are invited on: (1) the accuracy of the agency's burden estimate of the proposed information collection, including the validity of the methodology and assumptions used to calculate the reporting burden; (2) ways to enhance the quality, utility and clarity of the information to be collected.

Kimberly Bose

Secretary

1 Pub. L. No. 109-58, 119 Stat. 594 (2005), 42 U.S.C. § 16452.

2 Ibid.

3 16 U.S.C. §§824 d-e (2000).

4 The Commission is concurrently requesting a collection approval extensions from OMB for related collection: FERC-65A Exemption Notification (1902-0216).

5 ^? The notice appeared at 73 FR 61414-61415.

6 Number of hours an employee works each year.

7 ^? Average annual salary per employee.

8 Number of hours an employee works each year.

9 Average annual salary per employee.