FERC-65, 65A, & 65B
(current OMB Control Nos. 1902-0218, 1902-0217, and 1902-0216,will be consolidated into OMB Control No. 1902-0218)
[updated 5/30/2012]
Supporting Statement for
FERC-65 (Notification of Holding Company Status), FERC-65A (Exemption Notification), and FERC-65B (Waiver Notification)
The Federal Energy Regulatory Commission (Commission or FERC) requests that the Office of Management and Budget (OMB) review and approve FERC-65 (Notification of Holding Company Status), FERC-65A (Exemption Notification), and FERC-65B (Waiver Notification) for a three year period. FERC-65(OMB Control No. 1902-0218), FERC-65A (OMB Control No. 1902-0216), and FERC-65B (OMB Control No. 1902-0217) are existing Commission data collections (filing requirements), as stated by 18 Code of Federal Regulations (CFR), Part 40.
The Commission requests that OMB approve the renewal and consolidation of FERC-65A and FERC-65B requirements under the FERC-65 OMB control number (1902-0218). The Commission will maintain all references to and about the FERC-65A and FERC-65B information collections despite their respective requirements being approved under a single control number. Additionally, if and when OMB approves the consolidation of the FERC-65A and FERC-65B into the FERC-65 OMB Control No. 1902-0218, the Commission will seek the discontinuance of the FERC-65A and FERC-65B OMB control numbers with no effect or change upon their respective information collection requirements.
The Commission estimates the annual reporting burden for FERC-65, FERC-65A, and FERC-65B will be 25 total hours (an average of 2.78 hours per respondent).
A. Justification
CIRCUMSTANCES THAT MAKE THE COLLECTION OF INFORMATION NECESSARY
Section 1264 of PUHCA 20051 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 for 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 unregulated 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 Securities and Exchange Commission (SEC) specifies a number of reporting requirements for holding companies in 17 CFR 250.1, 250.26, 250.80, 250.93, 250.94, and 259.313. With Order No. 667, the Commission adopted, modified, and streamlined some of the SEC reporting requirements for holding companies in its own regulations. The Commission adapted the SEC reporting regulations–instead of incorporating them in their entirety–because it determined that the information in some of the SEC reporting requirements is not relevant to the costs incurred by jurisdictional entities or is not necessary or appropriate for the protection of utility customers with respect to jurisdictional rates.
HOW, BY WHOM AND FOR WHAT PURPOSE IS THE INFORMATION TO BE USED AND THE CONSEQUENCES OF NOT COLLECTING THE INFORMATION
The FERC-65, FERC-65A and FERC-65B collections tell the Commission which entities (within holding company systems) are within Commission jurisdiction. Those entities meeting the definition of a holding company found in 18 CFR 366.1 submit the FERC-65. The Commission collects the following information in the FERC-65: the identity of the holding company and of the public utilities/natural gas companies in the holding company system, the identity of service companies, including special-purpose subsidiaries providing non-power goods and services, and the identity of all affiliates and subsidiaries as well as their corporate relationship to each other.
The Commission needs the information in the FERC-65 to have assurance that the actions of all jurisdictional entities within holding company systems would receive the required regulatory oversight.
The Commission uses the information from the FERC-65 to track changes in the corporate identities of public utility and natural gas companies as well as the organizational structure of business unit constituents in current and new holding company systems. The Commission needs this information to discern whether the reported businesses fall within its jurisdiction. Moreover, the information can provide context and background information to the Commission in its electric market based rates work and as it analyzes and addresses other corporate activity issues.
Information from the FERC-65A and FERC-65B sets forth the reasons companies may be exempt from PUHCA 2005 or eligible for a waiver of the related FERC regulations.
The information filed in the FERC-65A would be needed to support the company’s position that they qualify for an exemption from PUHCA 2005. The exemption applies to those who belong to one or more of the types of entities, persons or classes of transactions which 18 CFR 366.3 specifies as exempt. The exemptions benefit many small entities. The burden on small entities would be significant without the exemption option.
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 they 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.
DESCRIBE ANY CONSIDERATION OF THE USE OF IMPROVED INFORMATION TECHNOLOGY TO REDUCE BURDEN AND THE TECHNICAL OR LEGAL OBSTACLES TO REDUCING BURDEN
The Commission accepts FERC-65, FERC 65-A and FERC-65-B electronically through its website-based eFiling system to minimize the filing burden upon the public. The eFiling system is available on the internet at http://www.ferc.gov/docs-filing/efiling.asp. The Commission provides filers with a variety of documents and links to reduce burden and facilitate eFiling to the furthest extent possible. These include FAQs on eFiling, submission guidelines, and a guide for eFiling through the latest version of the system, v 7.0. Filers opting to not utilize eFile may submit hardcopy filings to the Commission by mail or via courier delivery services. The Commission has available for these filers a Quick Reference Guide for Paper Submissions to ensure proper use of this filing option. All the filings between 2009-2011 were eFiled.
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.
The Commission published a notice within the Federal Register4 to help identify any duplication of the information in FERC-65, FERC-65A and FERC-65B. No comments were received. There are no other Federal agencies responsible for the existence and status of holding companies as part of rate and regulatory activities for electric and gas companies within FERC’s jurisdiction. The information in each FERC-65, FERC-65A and FERC-65B is unique to the filer and its activities as they relate to Commission rate regulation. Because the Commission requires new holding companies to make these filings within 30 days of having been formed, the information is timely, comprehensive, and responsive to current Commission polices regarding the applicability, exemption and waiver of Commission regulatory activities. No similar information can be used or modified.
5. METHODS USED TO MINIMIZE BURDEN IN COLLECTION OF INFORMATION INVOLVING SMALL ENTITIES
Most companies to which the FERC 65 filing requirements pertain are not small entities. The FERC 65-A and FERC 65-B filing requirements exist to benefit small entities. They allow for an exemption or waiver, respectively, from the books and records provisions of 18 CFR 366. All three of these FERC filings are one-time filings and are effective until there is a material change of facts. This further minimizes the effect on small entities.
CONSEQUENCE TO FEDERAL PROGRAM IF COLLECTION WERE CONDUCTED LESS FREQUENTLY
If FERC-65 subsequent filings were not collected or were collected less frequently, the Commission would have no assurance that the actions of all jurisdictional entities within holding company systems would receive the required regulatory oversight.
The initial FERC-65 filing deadline was 6/15/2006 for all holding companies in existence on 2/8/2006. Holding companies formed after 2/8/2006 file within thirty days of becoming a holding company. A subsequent filing is not required unless there is a material change in facts.
The FERC 65-A and FERC 65-B are one-time filings that cannot occur less frequently because a new holding company either seeks a waiver or exemption from FERC regulation (in contrast to FERC-65). The waivers and exemptions remain in effect unless there is a material change in facts.
7. EXPLAIN ANY SPECIAL CIRCUMSTANCES RELATING TO THE INFORMATION
There are no special circumstances relating to the FERC-65, FERC-65A or FERC-65B information collections.
8. DESCRIBE EFFORTS TO CONSULT OUTSIDE THE AGENCY: SUMMARIZE PUBLIC COMMENTS AND THE AGENCY’S RESPONSE TO THESE COMMENTS
In accordance with OMB requirements5, the Commission published a 60-day notice6 and a 30-day notice7 to the public regarding this information collection on 2/14/2012 and 4/27/2012 respectively. Within the 60-day public notice, the Commission solicited comments and noted that it would be requesting a three-year extension of the public reporting burden with no change to the existing requirements concerning the collection of data. No comments were received.
9. EXPLAIN ANY PAYMENT OR GIFTS TO RESPONDENTS
No payments or gifts have been made to FERC-65, FERC-65A, or FERC-65B respondents.
10. DESCRIBE ANY ASSURANCE OF CONFIDENTIALITY PROVIDED TO RESPONDENTS
The Commission does not consider the information collected in FERC-65, FERC-65A, and FERC-65B filings to be confidential. However, the Commission will consider specific requests for confidential treatment to the extent permitted by law.8 The Commission will review each request for confidential treatment on a case-by-case basis.
11. PROVIDE ADDITIONAL JUSTIFICATION FOR ANY QUESTIONS OF A SENSITIVE NATURE
There are no questions of a sensitive nature that are considered private in the FERC-65, FERC-65A, or FERC-65B.
12. ESTIMATED BURDEN OF COLLECTION OF INFORMATION
The Commission estimates the Public Reporting Burden for this information collection as:
(IC12-5-000): FERC-65 (Notification of Holding Company Status), FERC-65A (Exemption Notification), and FERC-65B (Waiver Notification) |
|||||
|
Number of Respondents (A) |
Number of Responses Per Respondent (B) |
Total Number of Responses (A)x(B)=(C) |
Average Burden Hours per Response (D) |
Estimated Total Annual Burden (C)x(D) |
Notification of Holding Company Status |
8 |
1 |
8 |
3 |
24 |
Exemption Notification |
1 |
1 |
1 |
1 |
1 |
Waiver Notification |
0 |
1 |
0 |
1 |
0 |
TOTAL |
|
25 |
|||
The following table illustrates how adjustment to information collection affects the currently approved inventory for FERC-65. The figures reflect the consolidated OMB Control No. that will include the FERC-65, FERC-65A, and FERC-65B. The format, labels, and definitions of the table follow the ROCIS system “ICR Summary of Burden” for the metadata.
Consolidated OMB Control No. for FERC-65, FERC-65A, and FERC-65B |
Total Request |
Previously Approved (for FERC-65) |
Change due to Adjustment in Estimate |
Change Due to Agency Discretion |
Annual Number of Responses |
9 |
30 |
-21 |
0 |
Annual Time Burden (Hr) |
25 |
90 |
-65 |
0 |
Annual Cost Burden ($) |
0 |
0 |
0 |
0 |
ESTIMATE OF TOTAL ANNUAL COST OF BURDEN TO
RESPONDENTS
FERC-65,65A, 65B |
Annual Burden Hours (1) |
Estimated Hourly Cost ($) (2) |
Estimated Total Annual Cost to Respondents ($) (1) X (2) |
|
25 |
$69.019 |
$1,725.25 |
The total estimated annual cost to respondents is $1,725.25. The average estimated cost per respondent is $191.69.
The respondent burden includes the total time, effort, and financial resources respondents spend to assemble and file the information. The Commission bases the average estimated cost is based on salaries (plus benefits) for professional and support staff.
14. ESTIMATED ANNUALIZED COST TO FEDERAL
GOVERNMENT
|
Number of Employees (FTEs) |
Estimated Annual Federal Cost |
Analysis and Processing of filings [$143,540 /year] |
0.5 |
$71,770 |
Data Clearance Cost |
N/A10 |
$1,58811 |
FERC Total |
N/A |
$73,358 |
The Commission bases its estimate of the ‘Analysis and Processing of filings’ cost to the Federal Government on salaries and benefits for professional and clerical support. This estimated cost represents staff analysis, decision making, and review of any actual filings made in response to the information collection.
15. REASONS FOR CHANGES IN BURDEN INCLUDING THE NEED FOR ANY INCREASE
There was a decrease in the public reporting burden because there were fewer FERC-65, FERC-65A and FERC-65B filings between 2009 and 2011 than there were in the preceding three years. The decreases resulted from there being fewer material changes to information on holding companies already filed with FERC and fewer new holding companies being formed.
TIME SCHEDULE FOR PUBLICATION OF DATA
These are not information collections 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.
EXCEPTIONS TO THE CERTIFICATION STATEMENT
The data collected for this reporting requirement is not used for statistical purposes. Therefore, the Commission does not use effective and efficient statistical survey methodology as stated in Item (i) of the certification to OMB.
1 Pub. L. No. 109-58, 119 Stat. 594 (2005), 42 United States Code (USC) 16452.
2 Ibid.
3 16 USC §824(D-E)
4 77 FR 8245 (2/14/2012)
5 5 CFR 1320.8(d)
6 77 FR 8245
7 77 FR 25156
8 18 CFR 388.112(a)(1)
9 $143,540/2080 hours/year = $69.01 per hour [rounded]
10 Not applicable
11 For the data clearance cost, the Commission bases this cost on an average of 24 hours per clearance per year. The data clearance cost represents the activities and efforts of FERC staff to comply with the Paperwork Reduction Act of 1995.
| File Type | application/msword |
| File Title | Supporting Statement |
| Author | Ellen Brown |
| Last Modified By | ferc |
| File Modified | 2012-05-30 |
| File Created | 2012-05-30 |