FERC-546, Certificated Rate Filings: Gas Pipeline Rates (PL24-1-000)

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 latest form for FERC-546, Certificated Rate Filings: Gas Pipeline Rates (PL24-1-000) expires 2022-05-31 and can be found here.