Explanation of Changes in Industry Cost

explanation of cost increase 3 9 2010.doc

FERC-717, Standards for Business Practices and Communication Protocols for Public Utilities:

Explanation of Changes in Industry Cost

OMB: 1902-0173

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FERC-717 (OMB Control No. 1902-0173),

ICR 200912-1902-003, for Final Rule in RM05-5-013


The attached spreadsheet shows the industry burden and cost estimates, formulae, and some explanatory comments for FERC-717. It compares ICR 200812-1902-004 (the last approved ICR for FERC-717, for the final rule in Docket RM07-1-000, affecting FERC-717 and FERC-592 [OMB Control No. 1902-0157]) with the revised submittal of ICR 200912-1902-003 (under review by OMB now for the final rule in RM05-05-013, affecting FERC-717 and FERC-516).


The industry cost figures for the revised submittal of ICR 200912-1902-003 reflect ‘changes’ as follows.


  • For IC ‘a’ [labeled here, only for convenience], ICR 200812-1902-004 included $0 industry cost, despite there being burden hours. This submittal corrects the oversight and uses the updated figure of 176 respondents/responses (adjustment decrease from 220). The estimated total annual industry cost of $25,883,352 is:

176 responses X $150/hour X 980.43hr./response.


  • For IC ‘b’, the no. of respondents/responses was decreased (adjustment) to 176 (from 220). The total burden and cost were decreased accordingly. The new estimate is $871,200.


  • IC ‘c’ is the new collection (program change) related to this final rule. The estimated cost of this IC is $651,182.40, as described in the supporting statement.


As a result, the revised estimated annual industry cost figure is $27,405,734.40. See the attached spreadsheet (and supporting statement) for more details.



Please note that the clearance package for FERC-516 (OMB Control No. 1902-0096) related to the final rule in RM05-5-013 has not yet been submitted through ROCIS, due to the ROCIS restriction of only one pending request per OMB control number. [ICR 201001-1902-003 (NOPR in Docket RM10-13-000) is currently pending at OMB for FERC-516.] The FERC-516 tariff filing part of the burden for RM05-5-013 (1,056 total hrs., or 6 hrs. per company) represents the companies’ informing FERC that they have implemented these NAESB standards.

File Typeapplication/msword
File TitleFERC-717 (OMB Control No
AuthorEllen Brown
Last Modified ByEllen Brown
File Modified2010-03-09
File Created2010-03-09

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