FR 2021-03857

The Federal Energy Regulatory Commission (FERC), an agency within the Department of Energy, recently updated its filing fees, as outlined in a final rule. These fees are reviewed and adjusted annually to reflect the commission's financial expenditures from the previous fiscal year, in this case, Fiscal Year 2020. The new fee structure, taking effect on March 29, 2021, ensures that expenses incurred by FERC are appropriately covered by those utilizing its services.

Summary of the Document

The update to the filing fees has been formalized and published as a final rule in the Federal Register. Changes were made in response to FERC's costs for the previous fiscal year, with the proposed adjustments following the regulatory guidelines. These revisions have been reviewed and deemed not to classify as a major rule, suggesting that the impact may not be overly substantial in terms of industry-wide changes. The commission has communicated these revisions to Congress, ensuring that legislative bodies are informed about the updates.

Significant Issues and Concerns

One noticeable issue with the current document is the lack of transparency regarding how the costs for Fiscal Year 2020 were calculated. Without detailed information, stakeholders may find it challenging to understand the basis for the fee increments. Additionally, while the document mentions the fee updates, it does not address potential impacts on small businesses, leading to concerns about increased financial burdens on these entities without sufficient mitigation strategies discussed.

Furthermore, access to FERC’s Public Reference Room has been suspended due to the COVID-19 pandemic. This impacts those who rely on physical access for information and is not clearly communicated with guidance on alternative methods. Lastly, while the document includes contact information for further inquiries, it could benefit from offering direct links or clearer steps for navigating FERC’s eLibrary system, given its complexity.

Impacts on the Public and Stakeholders

The general public, particularly those within industries regulated or overseen by FERC, may notice these fee adjustments. Users and beneficiaries of FERC's services might experience changes in costs, potentially influencing their operational budgets. With these fees updated to reflect the commission's actual costs, stakeholders are assured that the fees are intended to cover genuine expenditures rather than arbitrary increments.

Certain stakeholders, such as electric utilities, natural gas companies, or entities needing to frequently submit filings to FERC, may face increased operational costs due to these fee changes. Small businesses within these sectors might be disproportionately affected if they lack the financial flexibility to easily absorb these cost increases. On the other hand, ensuring that the fees match FERC’s actual expenditures may contribute to a more stable and predictable regulatory environment over time.

Overall, while the fee updates are routine and expected, the lack of detailed explanations concerning their calculation could raise apprehensions about cost fairness and transparency. Addressing these issues in future communications could improve stakeholder understanding and compliance.

The Federal Energy Regulatory Commission (FERC) has issued an update regarding the filing fees it charges for specific services and benefits. This update, effective March 29, 2021, is based on the costs incurred by the Commission during Fiscal Year 2020. The primary purpose of this update is to adjust the fees to more accurately reflect the financial burden associated with providing services to identifiable beneficiaries.

In the document, various sections of 18 CFR Part 381 have been amended to reflect the new fee structures. The modifications are as follows:

• In § 381.302, the fee has been increased from $30,060 to $31,160.
• In § 381.303, the fee has been increased from $43,880 to $45,480.
• In § 381.304, the fee has been increased from $23,010 to $23,850.
• In § 381.305, the fee has been increased from $8,620 to $8,940.
• In § 381.403, the fee has been adjusted from $14,960 to $15,510.
• In § 381.505, the fees have been adjusted from $25,850 to $26,790 and from $29,260 to $30,330.

Financial Considerations

The amendments to these fees reflect a modest increase across various services. These adjustments are intended to cover costs for services provided during the fiscal year and ensure that the fees align with the Commission's financial requirements. Such updates are regularly mandated to ensure that the Commission operates within its fiscal means and adequately funds its activities.

Impact and Transparency Issues

One of the primary issues identified in the document is the lack of clarity on how the Commission's costs for Fiscal Year 2020 were calculated. Without this information, it is difficult for stakeholders to understand the basis for the fee increases. This transparency is crucial as these fee adjustments could potentially pose increased financial burdens on small entities. The absence of an accompanying analysis to explain the impact on small businesses further compounds this concern.

Furthermore, while the update provides a clear list of the new fees, it does not detail how the adjustments apply to different sections or subsections. This lack of specificity may make it challenging for the affected parties to ascertain the exact implications of the fee changes on their operations.

Conclusion

The document outlines necessary financial changes to FERC's fee structure, which are essential for maintaining alignment with operational costs. However, improved transparency and clarity regarding the determination of these fees, along with a thorough impact analysis, would enhance understanding and acceptance of these adjustments among stakeholders. Additionally, offering clearer guidance on accessing further information, especially with current restrictions on public access due to the COVID-19 pandemic, would help stakeholders better navigate the system.