FERC-545, Gas Pipeline Rates:
Rate Change (Non-formal)
Extension without change of a currently approved collection
No
Regular
02/04/2022
Requested
Previously Approved
36 Months From Approved
02/28/2022
1,363
1,410
305,812
283,931
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.
Final Rule RM96-1-42 average of
one-time burden spread over years 1-3. NAESB (Version 3.2) •
Correction made to the number of responses of the originally stated
178 should actually be 59. (178/3=59.333 *rounded) Changes in
estimate for the following: • Tariff Filings There was an increase
in responses from 302 to 322 responses. • Rate Filings There was an
increase in responses from 24 to 64 responses • Informational
Reports There was a decrease in responses from 237 to 177 •
Negotiated Rates & Non-Conforming Agreement Filings Had an
increase of respondents from 65 to 69 creating an increase of 114
responses overall • Market-Base Rates for Storage Filings There was
a decrease from 4 to 2 responses Therefore, there was an overall
increase in burden of 70 responses for all 6 collection due to
adjusting for a more accurate estimate.
$143,806
No
No
No
No
No
No
No
Tracy DeMarr 202
502-8187
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.