FERC-730, (NOPR in RM20-10) Report of Transmission Investment Activity
Revision of a currently approved collection
No
Regular
Comment filed on proposed rule and continue
08/12/2020
04/06/2020
In accordance with 5 CFR 1320, OMB is filing comment and withholding approval at this time. The agency shall examine public comment in response to the proposed rulemaking and will include in the supporting statement of the next ICRâwhich is to be submitted to OMB at the final rule stageâa description of how the agency has responded to any public comments on the ICR, including comments on maximizing the practical utility of the collection and minimizing the burden.
table that charts list comparision
Inventory as of this Action
Requested
Previously Approved
03/31/2023
36 Months From Approved
07/31/2023
63
0
63
1,890
0
1,890
0
0
0
RM20-10 NOPR. FERC proposes to revise its existing transmission incentives policy &corresponding regulations (Transmission Incentives Regulations) in light of changes in transmission development and planning in the last few years. After the enactment of the Energy Policy Act of 2005, which added section 219 to the Federal Power Act (FPA), FERC promulgated Order No. 679 pursuant to FPA section 219.
After Order No. 679, FERC last reviewed its transmission incentives policy in its 2012 Policy Statement. Even since then, the energy industry has undergone a transformation. The landscape for planning, developing, operating, &maintaining transmission infrastructure has changed considerably. Those changes include an evolution in the resource mix& an increase in the number of new resources seeking transmission service, shifts in load patterns, the impact of the implementation of FERCâs major rulemaking on transmission planning and cost allocation (Order 1000), & new challenges to maintaining the reliability of transmission infrastructure. As a result of these changes & FERC's greater experience evaluating transmission incentive applications made pursuant to Order 679 and their relationship to the objectives of FPA section 219, we now propose to revise our transmission incentives policy to more closely align it with the statutory language of FPA section 219.
FERC-730, in general. The information collected in the FERC-730 is necessary for the Commission to evaluate its incentive rates policies, and to demonstrate the effectiveness of these policies. The FERC-730 filing requirement allows the Commission to track the progress of electric transmission projects that have been granted incentive-based rates, providing an accurate assessment of the state of the industry with respect to transmission investment, and ensuring that incentive rates are effective in encouraging the development of appropriate transmission infrastructure.
To promote the development of needed energy infrastructure, Congress enacted section 1241 of the Energy Policy Act of 2005, which added a new section 219 to the Federal Power Act (FPA). Section 219 of the FPA required that the Commission issue a rule allowing incentive-based rate treatments to promote capital investment in the enlargement, improvement, maintenance, and operation of transmission facilities.
To comply with these FPA requirements, the Commission issued Order No. 679 in 2006. Order 679 allowed public utilities participating in interstate commerce to apply for certain incentives, including: (1) a rate of return on equity sufficient to attract new investment in transmission facilities, (2) 100% of prudently incurred Construction Work in Progress (CWIP) in rate base, (3) recovery of prudently incurred pre-commercial operations costs, (4) accelerated depreciation, (5) hypothetical capital structure, and (6) recovery of 100% of prudently incurred costs of transmission facilities that are cancelled or abandoned due to factors beyond the control of the public utility.
The Commission's incentive rates policies under Order No. 679 aim to ensure reliability and reduce the cost of delivered power by decreasing transmission congestion. The Commission created FERC-730 to better inform its incentive rate policies, ensuring that they encourage appropriate infrastructure development and meet the requirements of FPA section 219. FERC-730 is an annual filing requirement for utilities that have been granted incentive-based rates.
Utilities must file the following information in FERC-730: actual monetary investment for the most recent calendar year; planned investments for the next five years; and a project-by-project listing that includes each project planned for investment over the next five years and specifies expected completion date, percentage completion as of the filing date, and any reasons for delay. The filing requirements of FERC-730 are codified under 18 CFR §35.35(h).
The reforms proposed to the Commissionâs transmission incentives policy will both help to reflect recent changes in the industry and transmission planning and more closely align with the statutory language of FPA section 219.
As part of ensuring that we continue to meet our statutory obligations, the Commission periodically reviews its existing policies and regulations. The Commission established its transmission incentives policy in Order No. 679 and clarified that policy six years later in the 2012 Policy Statement. In the nearly eight years since our last formal review of the Commissionâs transmission incentives policy, the landscape for planning, developing, operating, and maintaining transmission infrastructure has changed considerably. These changes include an evolution in the resource mix, an increase in the number of new resources seeking transmission service, shifts in load patterns, the Commissionâs implementation of Order No. 1000âs reforms, and new challenges to maintaining the reliability of transmission infrastructure.
While transmission infrastructure development has remained generally robust at an aggregate level, the types of transmission projects that are needed, and the use of rate treatments to incent them, must evolve to reflect the changes in market fundamentals.
In the NOPR in Docket RM20-10, FERC proposes to reform the information collected from transmission incentive applicants in FERC-730, Report of Transmission Investment Activity (Form 730), by obtaining this information on a project-by-project basis and to expand some of the information collected and to increase the number of respondents by 137. The new burden per response would be 36 hrs. (an increase of 6 hrs. [to 36 hrs. each] for the existing 63 respondents, and an increase of 137 respondents [at 36 hrs. each]).
$63,072
No
No
No
No
No
No
No
Daniel Kheloussi 202 502-6391
Reginfo record details
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.
Form FERC-730 Report of Transmission Investment Activity
RM20-10 NOPR Supporting Statement (FERC-516 + FERC-730) 8-12-2020.docx
RM20-10NOPR_news release3-19-2020.pdf
FERC-730, Report of Transmission Investment Activity [incl. add. 6 hr. each burden proposed in NOPR in RM20-10]