FERC-516C, [RM16-5-000 Final Rule] Offer Caps in Markets Operated by Regional Transmission Organizations and Independent System Operators

Forms and Documents

Document	Type	Status	Availability
RM16-5-000 Final Rule supporting statement (updated 1-19-2016) final423p.docx	Supporting Statement A	Uploaded 2017-01-19	Available
18 CFR 35.28.pdf	Supplementary Document	Uploaded 2016-02-10	Available
16 USC 824e.pdf	Supplementary Document	Uploaded 2016-02-10	Available
16 USC 824d.pdf	Supplementary Document	Uploaded 2016-02-10	Available

IC Document Collections

IC ID	Collection	Type	Status	Form
220029	One-time Tariff (RM16-5-000 Final Rule)		Modified

ICR Details

OMB Control No: 1902-0287	ICR Reference No: 201611-1902-006
Status: Historical Active	Previous ICR Reference No: 201602-1902-006
Agency/Subagency: FERC	Agency Tracking No: FERC-516C
Title: FERC-516C, [RM16-5-000 Final Rule] Offer Caps in Markets Operated by Regional Transmission Organizations and Independent System Operators
Type of Information Collection: New collection (Request for a new OMB Control Number)	Common Form ICR:  No
Type of Review Request: Regular
OIRA Conclusion Action: Approved with change	Conclusion Date: 01/19/2017
	Date Received in OIRA: 12/13/2016
Terms of Clearance: In accordance with 5 CFR 1320, the information collection is approved for three years.

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	01/31/2020	36 Months From Approved
Responses	6	0	0
Time Burden (Hours)	1,000	0	0
Cost Burden (Dollars)	0	0	0

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Abstract: FERC is revising its regulations to address incremental energy offer caps. FERC requires that each regional transmission organization (RTO) & independent system operator (ISO): (1) cap each resource’s incremental energy offer at the higher of $1,000/MWh or that resource’s verified cost-based incremental energy offer; & (2) cap verified cost-based incremental energy offers at $2,000/MWh when calculating locational marginal prices (LMP). Further, we clarify that the verification process for cost-based incremental offers above $1,000/MWh should ensure that a resource’s cost-based incremental energy offer reasonably reflects that resource’s actual or expected costs. The reforms adopted in this Final Rule advance two of FERC’s goals with respect to price formation. First, the reforms will result in LMPs that are more likely to reflect the true marginal cost of production when resources’ short-run marginal costs exceed $1,000/MWh. Second, the reforms will give resources the opportunity to recover their short-run marginal costs, thereby encouraging resources to participate in RTO/ISO energy markets. The reforms approved in this Final Rule require one-time filings of tariffs with the Commission and potential software upgrades to implement the reforms approved in this Final Rule.

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Authorizing Statute(s): US Code: 16 USC 824f Name of Law: Federal Power Act
   US Code: 16 USC 824e Name of Law: Federal Power Act
  

Citations for New Statutory Requirements: None

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
1902-AF18	Final or interim final rulemaking	81 FR 87770	12/05/2016

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Federal Register Notices & Comments

Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 1

IC Title	Form No.	Form Name
One-time Tariff (RM16-5-000 Final Rule)

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ICR Summary of Burden

	Total Approved	Previously Approved	Change Due to New Statute	Change Due to Agency Discretion	Change Due to Adjustment in Estimate	Change Due to Potential Violation of the PRA
Annual Number of Responses	6	0	0	6	0	0
Annual Time Burden (Hours)	1,000	0	0	1,000	0	0
Annual Cost Burden (Dollars)	0	0	0	0	0	0

Burden increases because of Program Change due to Agency Discretion: Yes

Burden Increase Due to: Miscellaneous Actions

Burden decreases because of Program Change due to Agency Discretion: No

Burden Reduction Due to:

Short Statement: The existing tariff filings (covered by FERC-516) related to the electric utility industry are not affected by this Final Rule in RM16-5-000. FERC requires this new information in order to perform its mandated oversight and review responsibilities with respect to electric market-based rates being just and reasonable. Without this information, the Commission would be unable to meet its statutory responsibility under Section 206 of the FPA to ensure public utility rates and tariffs are just and reasonable. Failing to meet this responsibility could result in public utilities charging rates that are not just and reasonable.

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Annual Cost to Federal Government: $392,099

Does this IC contain surveys, censuses, or employ statistical methods? No

Is the Supporting Statement intended to be a Privacy Impact Assessment required by the E-Government Act of 2002? No

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? No

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? No

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? No

Is this ICR related to the Pandemic Response? Uncollected

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Common Form ICR:  No

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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:

(a) It is necessary for the proper performance of agency functions;

(b) It avoids unnecessary duplication;

(c) It reduces burden on small entities;

(d) It uses plain, coherent, and unambiguous language that is understandable to respondents;

(e) Its implementation will be consistent and compatible with current reporting and recordkeeping practices;

(f) It indicates the retention periods for recordkeeping requirements;

(g) It informs respondents of the information called for under 5 CFR 1320.8 (b)(3) about:

(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;

(h) It was developed by an office that has planned and allocated resources for the efficient and effective management and use of the information to be collected.

(i) It uses effective and efficient statistical survey methodology (if applicable); and

(j) It makes appropriate use of information technology.

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.

Certification Date: 12/13/2016

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