Docket
No. IC10-542-001
Supporting Statement for
FERC-542, Gas Pipeline Rates: Rate Tracking
The Federal Energy Regulatory Commission (FERC or the Commission) requests a three-year extension of Office of Management and Budget approval for OMB No. 1902-0070. This authorization request is for FERC-542 “Gas Pipeline Rates: Rate Tracking." The current authorization to collect FERC-542 data expires December 31, 2010. The requirements for this collection have not changed since the last OMB renewal in 2007. Filers provide the Commission with the data for the FERC-542 as a change to the pipeline’s tariff and so must meet FERC’s filing and data requirements for rate schedules and tariffs in 18 C.F.R 154. The relevant portions of these regulations are in Attachment 2.
A. JUSTIFICATION
1. CIRCUMSTANCES THAT MAKE THE COLLECTION OF INFORMATION NECESSARY
The Natural Gas Act (NGA)1 requires FERC to regulate the transmission and sale of natural gas for resale in interstate commerce and to ensure the rates jurisdictional natural gas pipelines charge are just and reasonable. It provides FERC with authority to implement NGA mandates through its rules and regulations. FERC allows jurisdictional pipelines to flow through to their customers such costs as fuel or electric power costs necessary to operate compressor stations as well as the costs of storage services, research, development, and demonstration (RD&D) expenditures in its rates, and FERC annual charge adjustment assessments. To ensure these charges result in just and reasonable rates, FERC requires jurisdictional pipelines to file detailed and summary information on these flowed costs in the FERC-542. Analyses of FERC-542 data helps the Commission evaluate the charges to ensure compliance with NGA rate requirements. Attachment 1 provides the NGA statutory provisions as compiled in the United States Code.
2. HOW, BY WHOM, AND FOR WHAT PURPOSE THE INFORMATION IS TO BE USED AND THE CONSEQUENCES OF NOT COLLECTING THE INFORMATION
FERC uses FERC-542 filings to verify that costs which are passed through to pipeline customers as rate adjustments meet Commission policy and authorizations. Failure to collect this information would prevent the Commission from meeting its statutory mandate to monitor and evaluate pipeline rates.
3. DESCRIBE ANY CONSIDERATION OF THE USE OF IMPROVED TECHNOLOGY TO REDUCE BURDEN AND TECHNICAL OR LEGAL OBSTACLES TO REDUCING BURDEN.
There is an ongoing effort at FERC to apply improved information technology to reduce the burden related to this information collection. In Order No. 714 the Commission required that all tariffs, tariff revisions and rate change applications be filed electronically starting April 1, 2010. Those who file FERC-542 information related to cost information in connection with natural gas transportation or sales in interstate commerce can do so by embedding the information within the XML schema of FERC’s new eTariff system. Providing FERC-542 filers with this IT system to submit information has eliminated the need for copying and courier services as they relate to filing this information.
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
Data in each FERC-542 filings is unique to the charges a specific jurisdictional natural gas pipeline assesses. There are no similar sources of information available that can be used or modified to meet FERC’s statutory requirement to ensure these charges are resulting in just and reasonable rates.
5. METHODS USED TO MINIMIZE BURDEN IN COLLECTION OF INFORMATION INVOLVING SMALL ENTITIES
FERC-542 is a filing requirement pertaining to regulated pipeline filing obligations for the support of rate changes associated with the transportation, storage, and sale of natural gas. The requirement applies to both large and small respondent companies. To minimize the burden imposed on those small companies who file, FERC requires only data that specifically and sufficiently describe the components of the charges making up the changed rate. The data required imposes the least possible burden for companies while collecting the information necessary for FERC to evaluate related rate changes.
6. CONSEQUENCE TO FEDERAL PROGRAM IF COLLECTION WERE CONDUCTED LESS FREQUENTLY
The FERC-542 information is collected on a periodic basis on single cost or revenue items and annually, to recover annual charges assessed by the Commission. This information collection, on average, amounts to three or four filings per year, per pipeline.
If the collection were conducted less frequently, the Commission would not be able to monitor and properly evaluate pipeline rate adjustments as they occur in the course of the year.
7. EXPLAIN ANY SPECIAL CIRCUMSTANCES RELATING TO THE INFORMATION COLLECTION
There are no special circumstances.
8. DESCRIBE EFFORTS TO CONSULT OUTSIDE THE AGENCY: SUMMARIZE PUBLIC COMMENTS AND THE AGENCY'S RESPONSE TO THESE COMMENTS
In accordance with OMB requirements in 5 C.F.R. 1320.8(d), the information collection under FERC-542 was noticed in the Federal Register in July 2010, as shown in Attachment 3. No comments were received in response to this 60-day 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 Commission does not consider the information collected in these filings to be confidential. However, specific requests for confidential treatment, to the extent permitted by law, will be considered pursuant to 18 C.F.R. 388.110. Each request for confidential treatment will be reviewed by the Commission on a case‑by‑case basis.
11. PROVIDE ADDITIONAL JUSTIFICATION FOR ANY QUESTIONS OF A SENSITIVE NATURE THAT ARE CONSIDERED PRIVATE
There are no questions of a sensitive nature that are considered private.
12. ESTIMATED BURDEN OF COLLECTION OF INFORMATION
FERC Data Collection |
Annual No. of Respondents (1) |
No. of Responses Per Respondent (2) |
Average Burden Hours Per Response (3) |
Total Annual Burden Hours (1)x(2)x(3) |
FERC-542 |
95 |
3.5 |
40 |
13,300 hours |
13. ESTIMATE OF THE TOTAL ANNUAL COST BURDEN TO RESPONDENTS
The FERC’s estimated cost burden to respondents is $881,598 (13,300 hours/2080 hours2 times $137,8743). The cost per respondent is $9,280. There are no start-up costs because FERC-542 is an existing information collection. The respondent burden includes the total time, effort, and financial resources expended by a FERC-542 filer 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 average FERC full-time equivalent (FTE) salary is $137,8744. The annual cost for the data clearance program per collection is $1,528. The FERC-542 requires the use of 4 FTEs plus the cost of the data clearance program , which makes $653,024 the estimated annualized cost of the FERC-542 to the Federal Government [(4 x $137,874)+$1,528].
The number of FTEs required to analyze the FERC-542 has decreased since the last OMB authorization in 2007. The need for fewer FTEs results from filings presenting less complex issues. The decreased complexity reflects the maturity of the natural gas pipeline industry as the amounts of allowed costs that flow through to customers and are submitted to FERC for review in the FERC-542 reflect routine operations, as well as charges customers have agreed to in FERC-sanctioned settlements, negotiations and agreements.
15. REASONS FOR CHANGES IN BURDEN INCLUDING THE NEED FOR ANY INCREASE
The estimate for the burden is based on recent Commission experience and the actual number of filings made under FERC-542 over the past 12 months. There is no change in the burden since the 2007 OMB authorization.
16. TIME SCHEDULE FOR THE PUBLICATION OF DATA
The filings are available to the public via the FERC’s e-Library. There are no publications or tabulations of the information.
17. DISPLAY OF THE EXPIRATION DATE
The information is not collected on a standard, preprinted form which would allow display of the OMB expiration date. Natural gas pipeline companies prepare and submit FERC-542 filings that reflect unique or specific circumstances related to the charges being passed through and the resulting rate or tariff changes.
18. EXCEPTIONS TO THE CERTIFICATION STATEMENT
There are no exceptions to the certification statement.
B. COLLECTION OF INFORMATION EMPLOYING STATISTICAL METHODS.
This is not a collection of information employing statistical methods.
ATTACHMENT 1
Natural Gas Act Sections 4, 5 and 16
(Title 15 USC Sections 717c, 717d and 717o)
NGA Section 4
15 USC
§ 717c. Rates and charges
(a) Just and reasonable rates and charges
All rates and charges made, demanded, or received by any natural-gas company for or in connection with the transportation or sale of natural gas subject to the jurisdiction of the Commission, and all rules and regulations affecting or pertaining to such rates or charges, shall be just and reasonable, and any such rate or charge that is not just and reasonable is declared to be unlawful.
(b) Undue preferences and unreasonable rates and charges prohibited
No natural-gas company shall, with respect to any transportation or sale of natural gas subject to the jurisdiction of the Commission,
(1) make or grant any undue preference or advantage to any person or subject any person to any undue prejudice or disadvantage, or
(2) maintain any unreasonable difference in rates, charges, service, facilities, or in any other respect, either as between localities or as between classes of service.
(c) Filing of rates and charges with Commission; public inspection of schedules
Under such rules and regulations as the Commission may prescribe, every natural-gas company shall file with the Commission, within such time (not less than sixty days from June 21, 1938) and in such form as the Commission may designate, and shall keep open in convenient form and place for public inspection, schedules showing all rates and charges for any transportation or sale subject to the jurisdiction of the Commission, and the classifications, practices, and regulations affecting such rates and charges, together with all contracts which in any manner affect or relate to such rates, charges, classifications, and services.
(d) Changes in rates and charges; notice to Commission
Unless the Commission otherwise orders, no change shall be made by any natural-gas company in any such rate, charge, classification, or service, or in any rule, regulation, or contract relating thereto, except after thirty days’ notice to the Commission and to the public. Such notice shall be given by filing with the Commission and keeping open for public inspection new schedules stating plainly the change or changes to be made in the schedule or schedules then in force and the time when the change or changes will go into effect. The Commission, for good cause shown, may allow changes to take effect without requiring the thirty days’ notice herein provided for by an order specifying the changes so to be made and the time when they shall take effect and the manner in which they shall be filed and published.
(e) Authority of Commission to hold hearings concerning new schedule of rates
Whenever any such new schedule is filed the Commission shall have authority, either upon complaint of any State, municipality, State commission, or gas distributing company, or upon its own initiative without complaint, at once, and if it so orders, without answer or formal pleading by the natural-gas company, but upon reasonable notice, to enter upon a hearing concerning the lawfulness of such rate, charge, classification, or service; and, pending such hearing and the decision thereon, the Commission, upon filing with such schedules and delivering to the natural-gas company affected thereby a statement in writing of its reasons for such suspension, may suspend the operation of such schedule and defer the use of such rate, charge, classification, or service, but not for a longer period than five months beyond the time when it would otherwise go into effect; and after full hearings, either completed before or after the rate, charge, classification, or service goes into effect, the Commission may make such orders with reference thereto as would be proper in a proceeding initiated after it had become effective. If the proceeding has not been concluded and an order made at the expiration of the suspension period, on motion of the natural-gas company making the filing, the proposed change of rate, charge, classification, or service shall go into effect. Where increased rates or charges are thus made effective, the Commission may, by order, require the natural-gas company to furnish a bond, to be approved by the Commission, to refund any amounts ordered by the Commission, to keep accurate accounts in detail of all amounts received by reason of such increase, specifying by whom and in whose behalf such amounts were paid, and, upon completion of the hearing and decision, to order such natural-gas company to refund, with interest, the portion of such increased rates or charges by its decision found not justified. At any hearing involving a rate or charge sought to be increased, the burden of proof to show that the increased rate or charge is just and reasonable shall be upon the natural-gas company, and the Commission shall give to the hearing and decision of such questions preference over other questions pending before it and decide the same as speedily as possible.
(1) In exercising its authority under this chapter or the Natural Gas Policy Act of 1978 (15 U.S.C. 3301 et seq.), the Commission may authorize a natural gas company (or any person that will be a natural gas company on completion of any proposed construction) to provide storage and storage-related services at market-based rates for new storage capacity related to a specific facility placed in service after August 8, 2005, notwithstanding the fact that the company is unable to demonstrate that the company lacks market power, if the Commission determines that—
(A) market-based rates are in the public interest and necessary to encourage the construction of the storage capacity in the area needing storage services; and
(B) customers are adequately protected.
(2) The Commission shall ensure that reasonable terms and conditions are in place to protect consumers.
(3) If the Commission authorizes a natural gas company to charge market-based rates under this subsection, the Commission shall review periodically whether the market-based rate is just, reasonable, and not unduly discriminatory or preferential.
Fixing rates and charges; determination of cost of production or transportation
(a) Decreases in rates
Whenever the Commission, after a hearing had upon its own motion or upon complaint of any State, municipality, State commission, or gas distributing company, shall find that any rate, charge, or classification demanded, observed, charged, or collected by any natural-gas company in connection with any transportation or sale of natural gas, subject to the jurisdiction of the Commission, or that any rule, regulation, practice, or contract affecting such rate, charge, or classification is unjust, unreasonable, unduly discriminatory, or preferential, the Commission shall determine the just and reasonable rate, charge, classification, rule, regulation, practice, or contract to be thereafter observed and in force, and shall fix the same by order: Provided, however, That the Commission shall have no power to order any increase in any rate contained in the currently effective schedule of such natural gas company on file with the Commission, unless such increase is in accordance with a new schedule filed by such natural gas company; but the Commission may order a decrease where existing rates are unjust, unduly discriminatory, preferential, otherwise unlawful, or are not the lowest reasonable rates.
(b) Costs of production and transportation
The Commission upon its own motion, or upon the request of any State commission, whenever it can do so without prejudice to the efficient and proper conduct of its affairs, may investigate and determine the cost of the production or transportation of natural gas by a natural-gas company in cases where the Commission has no authority to establish a rate governing the transportation or sale of such natural gas.
NGA Section 16
15 USC
§ 717o Administrative powers of Commission; rules, regulations, and orders
The Commission shall have power to perform any and all acts, and to prescribe, issue, make, amend, and rescind such orders, rules, and regulations as it may find necessary or appropriate to carry out the provisions of this chapter. Among other things, such rules and regulations may define accounting, technical, and trade terms used in this chapter; and may prescribe the form or forms of all statements, declarations, applications, and reports to be filed with the Commission, the information which they shall contain, and the time within which they shall be filed. Unless a different date is specified therein, rules and regulations of the Commission shall be effective thirty days after publication in the manner which the Commission shall prescribe. Orders of the Commission shall be effective on the date and in the manner which the Commission shall prescribe. For the purposes of its rules and regulations, the Commission may classify persons and matters within its jurisdiction and prescribe different requirements for different classes of persons or matters. All rules and regulations of the Commission shall be filed with its secretary and shall be kept open in convenient form for public inspection and examination during reasonable business hours.
ATTACHMENT 2
FERC Guidance and Requirements for FERC-542 Tariff Activity
As found in
Relevant Sections of FERC Regulations
18 C.F.R.
Part 154 Rate Schedules and Tariffs
Subpart A
Sec. 154.4 Electronic filing of tariffs and related materials.
(a) General rule. All filings made in proceedings initiated under this part must be made electronically, including tariffs, rate schedules, service agreements, and contracts, or parts thereof, and material that relates to or bears upon such documents, such as cancellations, amendments, withdrawals, termination, or adoption of tariffs, and motions relating to suspension.
(b) Requirement for signature. All filings must be signed in compliance with the following:
(1) The signature on a filing constitutes a certification that the contents are true to the best knowledge and belief of the signer, and that the signer possesses full power and authority to sign the filing.
(2) A filing must be signed by one of the following:
(i) The person on behalf of whom the filing is made;
(ii) An officer, agent, or employee of the company, governmental authority, agency, or instrumentality on behalf of which the filing is made; or,
(iii) A representative qualified to practice before the Commission under Sec. 385.2101 of this chapter who possesses authority to sign.
(3) All signatures on the filing or any document included in the filing must comply, where applicable, with the requirements in Sec. 385.2005 of this chapter with respect to sworn declarations or statements and electronic signatures.
(c) Format requirements for electronic filing. The requirements and formats for electronic filing are listed in instructions for electronic filing and for each form. These formats are available on the Internet at http://www.ferc.gov and can be obtained at the Federal Energy Regulatory Commission, Public Reference Room, 888 First Street, NE., Washington, DC 20426.
[Order 714, 73 FR 57533, Oct. 3, 2008]
Sec. 154.7 General requirements for the submission of a tariff filing or executed service agreement.
The following must be included with the filing of any tariff, executed service agreement, or part thereof, or change thereto.
(a) A letter of transmittal containing:
(1) A list of the material enclosed,
(2) The name of a responsible company official to whom questions regarding the filing may be addressed, with a telephone number at which the official may be reached,
(3) The date on which such filing is proposed to become effective,
(4) Reference to the authority under which the filing is made, including the specific section of a statute, subpart of these regulations, order of the Commission, provision of the company's tariff,
or any other appropriate authority. If an order is referenced, the letter must include the citation to the FERC Reports, the date of issuance, and the lead docket number of the proceeding in which the
order was issued.
(5) A list of the tariff sheets or sections enclosed,
(6) A statement of the nature, the reasons, and the basis for the filing. The statement must include a summary of the changes or additions made to the tariff or executed service agreement, as appropriate. The statement must include a quantified summary comparing the cost of service, rate base and throughput underlying each change in rate made to the tariff or executed service agreement compared to the same information underlying the last rate found by the Commission to be just and reasonable. A detailed explanation of the need for each change or addition to the tariff or executed service agreement must be included. The natural gas company also must note all relevant precedents relied upon to prepare its filing.
(7) Any requests for waiver. A request for waiver must include a reference to the specific section of the statute, regulations, or the company's tariff from which waiver is sought, and a justification for the waiver.
(8) Where the natural gas company proposes a new rate, identification of the last rate, found by the Commission to be just and reasonable, that underlies the proposed rate.
(9) A motion, in case of minimal suspension, to place the proposed rates into effect at the end of the suspension period; or, a specific statement that the pipeline reserves its right to file a later motion to place the proposed rates into effect at the end of the suspension period.
(b) A certification of service to all customers and state commissions pursuant to Sec. 154.2(d).
[Order 582, 60 FR 52996, Oct. 11, 1995, as amended by Order 582-A, 61 FR
9628, Mar. 11, 1996; Order 714, 73 FR 57534, 57535, Oct. 3, 2008]
Sec. 154.107 Currently effective rates.
(a) This section of the tariff must present the currently effective rates and charges under each rate schedule.
(b) All rates must be stated clearly in cents or dollars and cents per thermal unit. The unit of measure must be stated for each component of a rate.
(c) A rate having more than one part must have each component set out separately under appropriate headings (e.g., ``Reservation Charge,'' ``Usage Charge.'')
(d) Where a component of a rate is adjusted pursuant to a mechanism approved under subpart E of this part, the adjustment must be stated in a separate column on the rate sheet or section.
(e) Exception to paragraph (d) of this section. Where the rate component is an Annual Charge Adjustment surcharge approved by the Commission, the adjustment or surcharge may be stated in a footnote on the rate sheet or section.
(f) A total rate, indicating the sum of the rate components under paragraph (c) of this section plus the adjustments under paragraph (d) of this section, must be shown in the last column at the end of a line for a rate, so that a reader can readily determine the separate components comprising the total rate for a service.
[Order 582, 60 FR 52996, Oct. 11, 1995, as amended by Order 714, 73 FR
57534, Oct. 3, 2008
Subpart C Procedures for Changing Tariffs
Sec. 154.201 Filing requirements.
In addition to the requirements of subparts A and B of this part, the following must be included with the filing of any tariff, executed service agreement, or part thereof, that changes or supersedes any tariff, contract, or part thereof, on file with the Commission.
(a) A list in the transmittal letter of the tariff sheets or sections being revised and a marked version of the sheets or sections to be changed or superseded showing additions and deletions. New numbers and text must be marked by either highlight, background shading, bold, or underline. Deleted text and numbers must be indicated by strike-through. Only those revisions appropriately designated and marked constitute the filing. Revisions to unmarked portions of the rate
schedule or tariff are not considered part of the filing nor will any acceptance of the filing by the Commission constitute acceptance of such unmarked changes.
(b) Documentation whether in the form of workpapers, or otherwise, sufficiently detailed to support the company's proposed change.
(1) The documentation must include but is not limited to the schedules, workpapers, and supporting documentation required by these rules and regulations and the Commission's orders.
(2) All rate changes in the filing must be supported by step-by-step mathematical calculations and sufficient written narrative to allow the Commission and interested parties to duplicate the company's calculations.
(3) Any data or summaries included in the filing purporting to reflect the books of account must be supported by accounting workpapers setting forth all necessary particulars from which an auditor may readily verify that such data are in agreement with the company's books of account. All statements, schedules, and workpapers must be prepared in accordance with the classifications of the Commission's Uniform System of Accounts. Workpapers in support of all adjustments, computations, and other information, properly indexed and cross-referenced to the filing and other workpapers, must be available for Commission examination.
(4) Where a rate, cost, or volume is derived from another rate, cost, or volume, the derivation must be shown mathematically and be accompanied by a written narrative sufficient to allow the Commission and interested parties to duplicate the calculations. If the derivation is due to a load factor adjustment, application of a percentage, or other adjusting factor, the pipeline must also note or explain the origin of the adjusting factor.
(5) Where workpapers show progressive calculations, any discontinuity between one working paper and another must be explained.
[Order 582, 60 FR 52996, Oct. 11, 1995, as amended by Order 714, 73 FR
57534, Oct. 3, 2008]
Sec. 154.401 RD&D expenditures.
(a) Requirements. Upon approval by the Commission, a natural gas company may file to recover research, development, and demonstration (RD&D) expenditures in its rates under this subpart.
(b) Applications for rate treatment approval. (1) An application for advance approval of rate treatment may be filed by a natural gas company for RD&D expenditures related to a project or group of projects undertaken by the company or as part of a project undertaken by others. When more than one company supports an RD&D organization, the RD&D organization may submit an application that covers the organization's RD&D program. Approval by the Commission of such an RD&D application and program will constitute approval of the individual companies' contributions to the RD&D organization.
(2) An application for advance approval of rate treatment must include a 5-year program plan and must be filed at least 180 days prior to the commencement of the 5-year period of the plan.
(3) A 5-year program plan must include at a minimum:
(i) A statement of the objectives for the 5-year period that relates the objectives to the interests of ratepayers, the public, and the industry and to the objectives of other major research organizations.
(ii) Budget, technical, and schedule information in sufficient detail to explain the work to be performed and allow an assessment of the probability of success and a comparison with other organizations' research plans.
(iii) The commencement date, expected termination date, and expected annual costs for individual RD&D projects to be initiated during the first year of the plan.
(iv) A discussion of the RD&D efforts and progress since the preparation of the program plan submitted the previous year and an explanation of any changes that have been made in objectives, priorities, or budgets since the plan of the previous year.
(v) A statement identifying all jurisdictional natural gas companies that will support the program and specifying the amounts of their budgeted support.
(vi) A statement identifying those persons involved in the development, review, and approval of the plan and specifying the amount of effort contributed and the degree of control exercised by each.
(c) Applications must describe the RD&D projects in such detail as to satisfy the Commission that the RD&D expenditures qualify as valid, justifiable, and reasonable.
(d) Within 120 days of the filing of an application for rate treatment approval and a 5-year program plan, the Commission will state its decision with respect to acceptance, partial acceptance, or rejection of the plan, or, when the complexity of issues in the plan so requires, will set a date certain by which a final decision will be made, or will order the matter set for hearing. Partial rejection of a plan by the Commission will be accompanied by a decision as to the partial level of acceptance which will be proportionally applied to all contributions listed for jurisdictional companies in the plan. Approval by the Commission of a 5-year plan constitutes approval for rate treatment of all projects identified as starting during the first year of the approved plan. Continued rate treatment will depend upon review and evaluation of subsequent annual applications and 5-year program plans.
Sec. 154.402 ACA expenditures.
(a) Requirements. Upon approval by the Commission, a natural gas pipeline company may adjust its rates, annually, to recover from its customers annual charges assessed by the Commission under part 382 of this chapter pursuant to an annual charge adjustment clause (ACA clause). The ACA clause must be filed with the Commission and indicate the amount of annual charges to be flowed through per unit of energy sold or transported (ACA unit charge). The ACA unit charge will be specified by the Commission at the time the Commission calculates the annual charge bills. A company must reflect the ACA unit charge in each of its rate schedules applicable to sales or transportation deliveries. The company must apply the ACA unit charge to the usage component of rate schedules with two-part rates. A company may recover annual charges through an ACA unit charge only if its rates do not otherwise reflect the costs of annual charges assessed by the Commission under Sec. 382.106(a) of this chapter. The applicable annual charge, required by Sec. 382.103 of this chapter, must be paid before the company applies the ACA unit charge.
(b) Application for Rate Treatment Authorization. A company seeking authorization to use an ACA unit charge must file with the Commission a separate ACA tariff sheet or section containing:
(1) A statement that the company is collecting an ACA per unit charge, as approved by the Commission, applicable to all the pipeline's sales and transportation rate schedules,
(2) The per unit charge of the ACA,
(3) The proposed effective date of the tariff change (30 days after the filing of the tariff sheet or section, unless a shorter period is specifically requested in a waiver petition and approved), and
(4) A statement that the pipeline will not recover any annual charges recorded in FERC Account 928 in a proceeding under subpart D of this part.
(c) Changes to the ACA unit charge must be filed annually, to reflect the annual charge unit rate authorized by the Commission each fiscal year.
[Order 582, 60 FR 52996, Oct. 11, 1995, as amended by Order 714, 73 FR
57535, Oct. 3, 2008]
Sec. 154.403 Periodic rate adjustments.
(a) This section applies to the passthrough, on a periodic basis, of a single cost item or revenue item for which passthrough is not regulated under another section of this subpart, and to revisions on a periodic basis of a gas reimbursement percentage.
(b) Where a pipeline recovers fuel use and unaccounted-for natural gas in kind, the fuel reimbursement percentage must be stated in the tariff either on the tariff sheet stating the currently effective rate or on a separate tariff sheet or section in such a way that it is clear what amount of natural gas must be tendered in kind for each service rendered.
(c) A natural gas company that passes through a cost or revenue item or adjusts its fuel reimbursement percentage under this section, must state within the general terms and conditions of its tariff, the methodology and timing of any adjustments. The following must be included in the general terms and conditions:
(1) A statement of the nature of the revenue or costs to be flowed through to the customer;
(2) A statement of the manner in which the cost or revenue will be collected or returned, whether through a surcharge, offset, or otherwise;
(3) A statement of which customers are recipients of the revenue credit and which rate schedules are subject to the cost or fuel reimbursement percentage;
(4) A statement of the frequency of the adjustment and the dates on which the adjustment will become effective;
(5) A step-by-step description of the manner in which the amount to be flowed through is calculated and a step-by-step description of the flowthrough mechanism, including how the costs are classified and allocated. Where the adjustment modifies a rate established under subpart D of this part, the methodology must be consistent with the methodology used in the proceeding under subpart D of this part;
(6) Where costs or revenue credits are accumulated over a past period for periodic recovery or return, the past period must be defined and the mechanism for the recovery or return must be detailed on a step-by-step basis. Where the natural gas company proposes to use a surcharge to clear an account in which the difference between costs or revenues, recovered through rates, and actual costs and revenues accumulate, a statement must be included detailing, on a step-by-step basis, the mechanism for calculating the entries to the account and for passing through the account balance.
(7) Where carrying charges are computed, the calculations must be consistent with the methodology and reporting requirements set forth in Sec. 154.501 using the carrying charge rate required by that section. A natural gas company must normalize all income tax timing differences which are the result of differences between the period in which expense or revenue enters into the determination of taxable income and the period in which the expense or revenue enters into the determination of pre-tax book income. Any balance upon which the natural gas company calculates carrying charges must be adjusted for any recorded deferred income taxes.
(8) Where the natural gas company discounts the rate component calculated pursuant to this section, explain on a step-by-step basis how the natural gas company will adjust for rate discounts in its methodology to reflect changes in costs under this section.
(9) If the costs passed through under a mechanism approved under this section are billed by an upstream natural gas company, explain how refunds received from upstream natural gas companies will be passed through to the natural gas company's customers, including the allocation and classification of such refunds;
(10) A step-by-step explanation of the methodology used to reflect changes in the fuel reimbursement percentage, including the allocation and classification of the fuel use and unaccounted-for natural gas. Where the adjustment modifies a fuel reimbursement percentage established under subpart D of this part, the methodology must be consistent with the methodology used in the proceeding under subpart D of this part;
(11) A statement of whether the difference between quantities actually used or lost and the quantities retained from the customers for fuel use and loss will be recovered or returned in a future surcharge. Include a step-by-step explanation of the methodology used to calculate such surcharge. Any period during which these differences accumulate must be defined.
(d) Filing requirements. (1) Filings under this section must include:
(i) A summary statement showing the rate component added to each rate schedule with workpapers showing all mathematical calculations.
(ii) If the filing establishes a new fuel reimbursement percentage or surcharge, include computations for each fuel reimbursement or surcharge calculated, broken out by service, classification, area, zone, or other subcategory.
(iii) Workpapers showing the allocation of costs or revenue credits by rate schedule and step-by-step computations supporting the allocation, segregated into reservation and usage amounts, where appropriate.
(iv) Where the costs, revenues, rates, quantities, indices, load factors, percentages, or other numbers used in the calculations are publicly available, include references by source.
(v) Where a rate or quantity underlying the costs or revenue credits is supported by publicly available data (such as another natural gas company's tariff or EBB), the source must be referenced to allow the Commission and interested parties to review the source. If the rate or quantity does not match the rate or quantity from the source referenced, provide step-by-step instructions to tie the rate in the referenced source to the rate in the filing.
(vi) Where a number is derived from another number by applying a load factor, percentage, or other adjusting factor not referenced in paragraph (d)(1)(i) of this section, include workpapers and a narrative to explain the calculation of the adjusting factor.
(2) If the natural gas company is adjusting its rates to reflect changes in transportation and compression costs paid to others:
(i) The changes in transportation and compression costs must be based on the rate on file with the Commission. If the rate is not on file with the Commission or a discounted rate is paid, the rate
reflected in the filing must be the rate the natural gas company is contractually obligated to pay;
(ii) The filing must include appropriate credits for capacity released under Sec. 284.243 of this chapter with workpapers showing the quantity released, the revenues received from the release, the time period of the release, and the natural gas pipeline on which the release took place; and,
(iii) The filing must include a statement of the refunds received from each upstream natural gas company which are included in the rate adjustment. The statement must conform to the requirements set forth in Sec. 154.501.
(3) If the natural gas company is reflecting changes in its fuel reimbursement percentage, the filing must include:
(i) A summary statement of actual gas inflows and outflows for each month used to calculate the fuel reimbursement percentage or surcharge. For purposes of establishing the surcharge, the summary statement must be included for each month of the period over which the differences defined in paragraph (c) of this section accumulate.
(ii) Where the fuel reimbursement percentage is calculated based on estimated activity over a future period, the period must be defined and the estimates used in the calculation must be justified. If any of the estimates are publicly available, include a reference to the source.
(4) The natural gas company must not recover costs and is not obligated to return revenues which are applicable to the period pre-dating the effectiveness of the tariff language setting forth the periodic rate change mechanism, unless permitted or required to do so by the Commission.
[Order 582, 60 FR 52996, Oct. 11, 1995, as amended by Order 714, 73 FR
57535, Oct. 3, 2008]
ATTACHMENT 3
Federal Register Notice
UNITED STATES OF AMERICA
FEDERAL ENERGY REGULATORY COMMISSION
[Docket No. IC10-542-000]
COMMISSION INFORMATION COLLECTION ACTIVITIES (FERC-542);
COMMENT REQUEST; EXTENSION
(July 27, 2010)
AGENCY: Federal Energy Regulatory Commission.
ACTION: Notice of proposed information collection and request for comments.
SUMMARY: In compliance with the requirements of section 3506(c)(2)(A) of the Paperwork Reduction Act of 1995, 44 U.S.C. 3506(c)(2)(A) (2006), (Pub. L. No. 104-13), the Federal Energy Regulatory Commission (Commission or FERC) is soliciting public comment on the proposed information collection described below.
DATES: Comments in consideration of the collection of information are due [60 days after publication of this Notice in the Federal Register].
ADDRESSES: Comments may be filed either electronically (eFiled) or in paper format, and should refer to Docket No. IC10-542-000. Documents must be prepared in an acceptable filing format and in compliance with Commission submission guidelines at http://www.ferc.gov/help/submission-guide.asp. eFiling instructions are available at: http://www.ferc.gov/docs-filing/efiling.asp. First-time users must follow eRegister instructions at: http://www.ferc.gov/docs-filing/eregistration.asp, to establish a user name and password before eFiling. The Commission will send an automatic acknowledgement to the sender’s e-mail address upon receipt of eFiled comments. Commenters making an eFiling should not make a paper filing. Commenters that are not able to file electronically must send an original and two (2) paper copies of their comments to: Federal Energy Regulatory Commission, Secretary of the Commission, 888 First Street, NE, Washington, DC 20426.
Users interested in receiving automatic notification of activity in this docket may do so through eSubscription at http://www.ferc.gov/docs-filing/esubscription.asp. In addition, all comments and FERC issuances may be viewed, printed or downloaded remotely through FERC’s eLibrary at: http://www.ferc.gov/docs-filing/elibrary.asp, by searching on Docket No. IC10-542. For user assistance, contact FERC Online Support by e-mail at [email protected], or by phone, toll-free, at: (866) 208-3676, or (202) 502-8659 for TTY.
FOR FURTHER INFORMATION: Ellen Brown may be reached by email at [email protected], telephone at (202) 502-8663, and fax at (202) 273-0873.
SUPPLEMENTARY INFORMATION: The information collected under the requirements of FERC-542 "Gas Pipeline Rates: Rate Tracking” (OMB No. 1902-0070) is used by the Commission to implement the statutory provisions of Title IV of the Natural Gas Policy Act (NGPA), 15 USC 3301-3432, and Sections 4, 5 and 16 of the Natural Gas Act (NGA) (P.L.75-688) (15 USC 717-717w). These statutes empower the Commission to collect natural gas transmission cost information from interstate natural gas transporters for the purpose of verifying that these costs, which are passed on to pipeline customers, are just and reasonable.
Interstate natural gas pipeline companies are required by the Commission to track their transportation-associated costs to allow for the Commission’s review and, where appropriate, approve the pass-through of these costs to pipeline customers. These FERC-542 tracking filings are accountings of the cost of (1) Research, development, and deployment expenditures; (2) annual charge adjustments and (3) periodic rate adjustments.
Tracking filings may be submitted at any time or on a regularly scheduled basis in accordance with the pipeline company’s tariff. Filings may be either: (1) accepted; (2) suspended and set for hearing; (3) suspended, but not set for hearing; or (4) suspended for further review, such as technical conference or some other type of Commission action.
The Commission implements these filing requirements in the Code of Federal Regulations (CFR) under 18 CFR Part 154, 154.4, 154.7, 154.307, 154.201, 154.207-154.208 and 154.401-154.403.
ACTION: The Commission is requesting a three-year extension of the current expiration date, with no changes to the existing collection of data.
BURDEN STATEMENT: Public reporting burden for this collection is estimated as:
FERC Data Collection |
Annual No. of Respondents (1) |
No. of Responses Per Respondent (2) |
Average Burden Hours Per Response (3) |
Total Annual Burden Hours (1)x(2)x(3) |
FERC-542 |
95 |
3.5 |
40 |
13,300 hours |
Estimated cost burden to respondents is $881,598 (13,300 hours/2080 hours5 times $137,8746). The cost per respondent is $9,280.
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, and utilizing 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 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 estimate of cost 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) whether the proposed 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 of the proposed collection of information, including the validity of the methodology and assumptions used; (3) ways to enhance the quality, utility and clarity of the information to be collected; and (4) ways to minimize the burden of the collection of information on those who are to respond, including the use of appropriate automated, electronic, mechanical, or other technological collection techniques or other forms of information technology, e.g. permitting electronic submission of responses.
Kimberly D. Bose,
Secretary.
? 15 U.S.C. §717c, 717d and 717o (2010).
2 Number of hours an employee works each year
3 Average annual cost per employee which includes both direct and indirect costs.
4 This includes direct and indirect costs as well as benefits.
5 Number of hours an employee works each year
6 Average annual salary per employee
| File Type | application/msword |
| File Title | SUPPLEMENTAL SUPPORTING STATEMENT FOR |
| Author | Michael Miller |
| Last Modified By | rnped32 |
| File Modified | 2010-12-20 |
| File Created | 2010-12-20 |