In accordance
with 5 CFR 1320, this renewal request is approved.
Inventory as of this Action
Requested
Previously Approved
05/31/2022
36 Months From Approved
05/31/2019
75
0
51
37,500
0
2,350
0
0
0
The following list outlines four
circumstances under which the FERC-546 information collection
requirements for certificated rates must be met: A company decides
to: 1. Construct and operate a new jurisdictional pipeline ; 2.
Expand its certificated pipeline capacity by constructing a lateral
pipeline, adding compression or providing storage at incremental or
cost-based rates; 3. Build a new liquefied natural gas facility; or
4. Provide gas storage and negotiate market based rates. Under the
circumstances 1-3, the company must file its FERC-546 cost data
along with an application for a certificate of public convenience
and necessity under the statutory requirements of NGA Section 7(c).
For circumstance 4, the company must file its FERC-546 information
with an application under NGA Section 4(f)5. The FERC-546 includes
the following: • Supporting information for proposed initial rates
(e.g. cost-based, market based, incremental rates); • Pro forma
tariffs; • Motions to put proposed initial rates into effect
subject to Commission findings on the related certificate; •
Unexecuted precedent agreements; and Section 16 of the NGA grants
the Commission administrative powers including the ability to
define accounting, technical and trade terms, prescribe forms,
statements, declarations or reports and to prescribe rules and
regulations. Section 403 authorizes the Commission, as delegated
through the Department of Energy Organization Act, to establish and
review priorities for curtailments under the Natural Gas Act. The
Commission reviews the FERC-546 materials in order to approve rates
and tariff changes associated with an application for a certificate
under NGA Section 7(c). Additionally, the Commission reviews
FERC-546 materials in 4(f) storage applications to evaluate market
power and decide whether to grant, deny, or condition market based
rate authority for the applicant. The Commission also uses the
FERC-546 information to monitor jurisdictional transportation,
natural gas storage, and unbundled sales activities of interstate
natural gas pipelines and Hinshaw pipelines. In addition to
fulfilling the Commission’s obligations under the NGA, the FERC-546
enables the Commission to monitor activities, evaluate
transactions, ensure competitiveness, and improved efficiency of
the gas industry's operations. In summary, the Commission uses the
FERC-546 information to: • Ensure adequate customer protections
under section 4(f) of the NGA; • Review rate and tariff changes by
natural gas companies for the transportation of natural gas and
natural gas storage services; • Provide general industry oversight;
and • Supplement documentation during its audits process. Failure
to collect this information would prevent the Commission from being
able to monitor and evaluate transactions and operations of
interstate pipelines and perform its regulatory functions.
The Commission’s goal has been
to increase natural gas availability for electric generation,
decrease natural gas price volatility, and encourage development of
natural gas storage capacity in the United States. These emphases
have caused burden projections for the FERC-546 information
collection to be significantly higher than previous levels. The
2015 renewal for the FERC-546 estimated 51 pipeline respondents
would (industry-wide) submit 51 applications (across both pipeline
respondents and storage operators) with FERC 546 information. While
the number of potentially affected entities remains static, actual
numbers for the FERC-546 filings and average burden per response
were both significantly higher than previously proposed estimates
due to increases in the natural gas industry’s infrastructure to
transport numerous newly discovered supplies of shale gas.
Commission staff, therefore, increased the burden estimates in the
currently proposed clearance package in accordance with the
aforementioned analysis of actual filings received for the FERC-546
information collection (burden estimate is explained in detail in
Question #12). Commission staff made this adjustment to the total
estimated burden via increases in both filing numbers (i.e. number
of responses) and to the average respondent burden hours/response
for both pipeline companies and storage operators (from 46.08
hours/response to 500 hours/response). The large increase in hourly
burden per response is due to a recent, more thorough analysis of
FERC-546 information collection and its actual affect upon industry
respondents. Thus, the public reporting burden has increased for
this information collection. However, the Commission made no
program changes regarding burden imposed upon respondents and the
FERC-546 requirements remain unchanged from previously approved
clearance packages.
$128,546
No
No
No
No
No
No
Uncollected
Michael Ji 202 502-8191
No
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.
FERC-546 supporting statement.docx
15 USC 3393 (2017).pdf
Certificated Rate Filings: Gas Pipeline Rates