In accordance with 5 CFR 1320, the information collection is approved for three years.
Note that FERCâs submittal to OMB for the NOPR in Docket RM96-1-038 was made under a temporary collection number (and temporary placeholder), FERC-545A, to enable FERC to submit it timely to OMB for PRA review. (It was also submitted under FERC-549C.) The FERC-545A temporary collection no. was used because another unrelated item (in Docket PL15-1) was pending OMB review under FERC-545. The PRA package in Docket PL15-1 has since concluded, so the Final Rule in Docket RM96-1-038 is submitted under FERC-545, the permanent collection number.
(The metadata for this ICR, for administrative and system reasons, shows that this collection is not related to a rulemaking; however note that the reporting requirements are in fact related to the Final Rule in Docket RM96-1-038.)
Inventory as of this Action
Requested
Previously Approved
12/31/2018
36 Months From Approved
09/30/2018
2,648
0
2,483
286,827
0
285,177
0
0
0
FERC-545 is required to implement sections 4, 5, and 16 of the Natural Gas Act (NGA), (15 USC 717c 717o, PL 75 688, 52 Stat. 822 and 830). NGA Sections 4, 5, and 6 authorize the Commission to inquire into rate structures and methodologies and to set rates at a just and reasonable level. Specifically, a natural gas company must obtain Commission authorization for all rates and charges made, demanded, or received in connection with the transportation or sale of natural gas in interstate commerce.
Under the NGA, a natural gas companyâs rates must be just and reasonable and not unduly discriminatory or preferential. The Commission may act under different sections of the NGA to effect a change in a natural gas companyâs rates. When the Commission reviews rate increases that a natural gas company has proposed, it is subject to the requirement of section 4(e) of the NGA. Under section 4(e), the natural gas company bears the burden of proving that its proposed rates are just and reasonable. On the other hand, when the Commission seeks to impose its own rate determination, it must do so in compliance with section 5(a) of the NGA. Under section 5, the Commission must first establish that its alternative rate proposal is both just and reasonable.
Section 16 of the NGA states that the Commission âshall have the 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 provisions of [the NGA].â In other words, section 16 of the NGA grants the Commission the power to define accounting, technical and trade terms, prescribe forms, statements, declarations or reports and to prescribe rules and regulations.
Pipelines adjust their tariffs to meet market and customer needs. Commission review of these proposed changes is required to ensure rates remain just and reasonable and that services are not provided in an unduly or preferential manner. The Commissionâs regulation in 18 C.F.R. Part 154 specifies what changes are allowed and the procedures for requesting Commission approval.
The Commission sets rates for interstate pipeline services in a number of proceedings. For example, when a pipeline files to increase its rates, it makes a filing with the Commission under section 4 of the NGA. These types of filings are referred to as general section 4 rate cases. In the proceedings, the Commission reviews all of a pipelineâs rates and services. A pipeline can file a general section 4 rate case anytime it wishes, provided the pipeline did not agree otherwise in a settlement. A pipeline must demonstrate that the new rates it proposes to charge are just and reasonable. When a rate increase filing is made pursuant to section 4, the application is typically suspended and set for hearing by a Commission Order. The submittal to OMB for the NOPR in RM96-1-038 was made under a temporary collection number (and temporary placeholder), FERC-545A, 1902-0174), to enable FERC to submit this package timely to OMB for review under the Paperwork Reduction Act. This was done because another unrelated item (in Docket PL15-1) was pending OMB review under FERC-545, and only one item per OMB Control Number can be pending OMB review at a time; the item in Docket PL15-1 has since concluded and the collection will be submitted in the permanent collection, FERC-545. Due to the submittal of the NOPR being under another OMB Control no. and ROCIS restriction, it's being submitted here as 'not associated with a rulemaking', however it is a final rule.
On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).
The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control number;
If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.