In accordance
with 5 CFR 1320, the information collection is approved for three
years.
Inventory as of this Action
Requested
Previously Approved
02/28/2022
36 Months From Approved
02/28/2019
1,287
0
2,648
283,888
0
286,827
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
16 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 company’s 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 company’s rates. When
the Commission reviews changes in rates 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.
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 pipeline’s
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. 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. The Final
Rule in RM96-1-041 requires interstate gas pipelines to make a
one-time tariff filing to reflect the changes in the updated NAESB
standards. Interstate natural gas pipelines are required to conduct
their transactions in accordance with the stated terms of their
tariffs. The compliance tariff filings made in accordance with the
final rule ensure that the pipelines acknowledge their obligation
to conduct their business transactions in accordance with
Commission requirements, which now include a requirement to comply
with the business practice standards incorporated by reference into
the Commission’s regulations as enforceable, mandatory
requirements. The tariff filing also provides transparency for
customers, as the business practice standards to be followed by the
pipeline are specifically identified in the pipeline’s tariff. In
the Final Rule, the Commission amends its regulations at 18 CFR
284.12(a) to incorporate by reference the latest version (Version
3.1) of certain business practice standards adopted by the
Wholesale Gas Quadrant (WGQ) of the North American Energy Standards
Board (NAESB) applicable to natural gas pipelines. To implement
these standards, natural gas pipelines will be required to file
tariff sheets to reflect the changed standards. The FERC-545
accounts for the preparation and filing of tariff sheets.
Information collection requirements contained within the standards
are under FERC-549C, which the Commission is submitting
concurrently with this package in a separate ICR.
The Final Rule in RM96-1-041
amends the Commission’s regulations at 18 CFR 284.12(a) to
incorporate by reference the latest version (Version 3.1) of seven
business practice standards applicable to interstate natural gas
pipelines adopted by NAESB’s WGQ. By incorporating these standards
by reference into the Commission’s regulations the Commission has
made compliance mandatory and enforceable. Non-compliance, absent a
specific waiver, violates the Commission’s regulations as well as
the terms of each pipeline’s tariff. The final rule revises and
replaces the existing incorporated business practices standards
(the Version 3.0 standards) to make two substantive revisions to
its Nominations Related Standards, one to establish a standard
rounding process for elapsed-prorated-scheduled quantity
calculations, and a second to revise the specifications for the
information to be included in a nomination request. NAESB also
adopted three revisions to the Quadrant Electronic Delivery
Mechanism Related Standards. First, it has increased the allowable
field length in ASCII Comma Separated Value Files to 3000
characters. Second, it has adopted new Standard 4.3.106 to allow
checkboxes and radio buttons in the Transmission Service Providers’
Electronic Bulletin Boards. Third, NAESB modified its standards to
update the operating systems and web browsers that entities should
support on behalf of users. Additionally, clarifying language was
added to the Secure Sockets Layer/Transport Layer Security
protocols. Other changes adopted by NAESB to the business practice
standards included changes to the NAESB WGQ data sets and other
technical implementation documentation as well as revisions to the
Flowing Gas Related data sets and technical implementation.
Further, NAESB revised the Imbalance Trade data set and revised two
Senders Option data elements. In addition, NAESB adopted revisions
to the Capacity Release Related data sets and technical
implementation. NAESB also revised Standard 6.3.1 (i.e., the NAESB
Base Contract for Sale and Purchase of Natural Gas) to add language
directing users to NAESB’s copyright disclaimer posted on the NAESB
website. Identical language was added to three additional NAESB WGQ
Contracts. Lastly, NAESB added a self-identification provision that
assists end users in determining whether counterparties are
commercial market participants as defined by the United States
Commodity Futures Trading Commission. FERC-545 has reductions in
burden due to one-time requirements having been completed (related
to RM96-1-038 Final Rule, RM14-2-000 Final Rule, and RM14-21-000
Final Rule). FERC staff is removing these three one-time
requirements that are outside of their respective implementation
periods, have been completed, and should no longer apply to
FERC-545 reporting burden: • One-time Tariff Filing for Pipeline
Map URL : 165 responses and 1,320 hours annually (averaged over
Years 1-3) • Tariff Filing for New/Revised Nomination Cycles : 165
responses and 550 hours annually (averaged over Years 1-3) •
One-time Implementation Requiring Interstate Gas Pipelines to make
one-time tariff filing : 165 responses and 1,650 hours annually
(averaged over Years 1-3) FERC subject-matter experts also revised
the organization and labelling for the reporting requirement based
on their actual organization in FERC regulations. This more
granular approach allowed a more thorough review of the FERC-545
information collection. The existing FERC-545 reporting burden
experienced slight changes:1) a fluctuation in annual filers (921
less responses per year based on recent activity and projections on
future activity) and 2) revised burden per response as related to
each reporting requirement (which resulted in an additional 31
hours per year industry-wide).
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.
RM96-1-041 Final Rule FERC-545 supporting statement.docx
18 CFR 284.pdf
Negotiated Rates and Non-Conforming Agreement Filings