FR 2025-03550

The document in question is a notice from the Federal Energy Regulatory Commission (FERC) regarding the extension of information collection requirements under several codes: FERC-519, FERC-520, FERC-546, and FERC-580. These codes pertain to applications and reports related to utility mergers, interlocking directorates, gas pipeline rates, and fuel and energy purchase practices, respectively. The notice is part of a regular process required by the Paperwork Reduction Act of 1995, inviting public comments until April 4, 2025.

General Summary

The FERC notice aims to extend existing data collection requirements without changing the current reporting obligations. The information collected serves to facilitate FERC's regulatory responsibilities, such as overseeing utility transactions and monitoring gas pipeline activities. Each information collection type focuses on a specific regulatory area, helping the commission ensure that utilities operate within legislative parameters like the Federal Power Act and the Natural Gas Act.

Significant Issues and Concerns

An apparent inconsistency arises in the timeline of the document. A future publication date of December 3, 2024, is mentioned, which does not align with the document's issue date of March 5, 2025. Such an inconsistency could lead to confusion about the legitimacy or timing of the notice.

The language used throughout is notably complex and bureaucratic, which may hinder comprehension by the general public or stakeholders lacking legal or technical expertise. Key terms are defined only later in the document, potentially leading to misunderstandings upon an initial reading. Furthermore, the document outlines specific compliance actions but lacks guidance for smaller entities that might require additional aid or information.

Broad Public Impact

For the general public, this document may seem remote and difficult to interpret, yet it fundamentally impacts electricity and gas consumers by ensuring regulatory oversight over energy markets. The smooth regulation of these markets is crucial for maintaining fair prices and reliable services, indirectly affecting households and businesses alike.

Impact on Specific Stakeholders

Specific stakeholders, such as public utilities, gas pipeline companies, and energy sector regulators, will feel the most direct impact of this notice. For these entities, the continuation of existing information collection requirements means ongoing compliance with existing federal regulations. While larger companies may handle these tasks as routine, smaller entities might struggle with the administrative load, especially without targeted support or resources.

The extension of these requirements also emphasizes the importance of transparency and accountability in the energy sector. By collecting detailed data on utility operations, FERC can more effectively monitor industry practices and enforce compliance, potentially leading to a more competitive and efficient energy market.

In summary, while the FERC's notice serves to extend necessary regulatory processes, the complexities inherent in the document could potentially obscure understanding and compliance among smaller stakeholders. The lack of guiding instructions for these entities remains a critical area for improvement.

The document discusses several financial aspects concerning the operations and regulatory functions of the Federal Energy Regulatory Commission (FERC). These financial references are integral to understanding the regulatory environment in which these activities take place.

In particular, the document highlights that under the amended section 203(a)(1)(B) of the Federal Power Act, public utilities are required to seek authorization from the Commission for mergers or consolidations. A key financial threshold in these transactions is that the facilities involved must have a value exceeding $10 million. This valuation helps determine the necessity for regulatory oversight, linking financial magnitude directly to compliance requirements. For certain smaller transactions, if facilities valued over $1 million are involved, a notification filing is mandated, which helps in monitoring even less significant, yet financially notable, transactions.

The standard for financial compensation at FERC is also outlined, with the average salary plus benefits for one full-time equivalent (FTE) at FERC being $207,786 per year (or $100 per hour). This statistic is notably repeated in the document, emphasizing the resource costs associated with FERC operations. It suggests that the financial burden of compliance for FERC's reporting requirements might be substantial, particularly given that the personnel engaged in these activities are compensated at rates consistent with specialized skills and significant operational roles.

Despite these significant financial considerations, the document suffers from several issues that could affect understanding. The repeated mention of the FERC salary rate provides clarity on the level of expertise employed by the Commission, though without contrast, it may seem abstract to smaller entities concerned about compliance costs. Additionally, the financial thresholds, while clear in requirements, do not address how these calculations might impact smaller organizations differently from larger ones—a potential oversight when considering the diverse nature of entities under regulation.

Moreover, the reference to substantial financial figures is not matched with guidance for smaller entities on navigating these requirements or seeking assistance, which is a notable omission. Greater clarifications and acknowledgments of possible financial challenges faced by small utilities could enhance comprehension and compliance, ensuring that all entities are equipped to meet the regulatory expectations regardless of size.

Overall, financial references in the document underscore the economic dimensions of regulatory compliance, aligning the need for stringent oversight with the associated financial valuations and compensation within FERC. However, improving the explanation of these references in the document could better facilitate the comprehension of regulatory expectations across the varied entities it affects.