Energy Choice
                            

Matters

FERC Denies Sought Fresh Start on Proposed Rules For Info Collection On Other Business Interests, Contractual Relationships Of Any RTO Market Participant (Proposal Seen As Substantial New Burden for Marketers)

January 14, 2016

Email This Story
Copyright 2010-16 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

FERC has denied a petition from several RTO market participants to wholly withdraw and start anew on controversial proposed rules issued by the Commission in September under which FERC proposes to require all RTO market participants, including buyers, to file new reports concerning the participant's "connected entities" (a new term broader than current affiliate reporting requirements that would require reporting on broader business interests and contractual relationships)

Click here for background on the "connected entities" reporting rules and how such entities would be defined

Retail suppliers, among others, have raised concerns with the substantial new burdens raised by the proposed rule, as well as its ambiguous and duplicative nature (click here for story)

Further creating concerns was that information provided by Commission Staff in response to concerns in advance of and at a recent technical conference, "substantively changed the NOPR proposal," while Staff also left some concerns unanswered, according to a petition from a diverse group of industry participants, ranging from retail suppliers (RESA), generators (EPSPA), utilities (EEI) and end users (ELCON)

"[G]uidance provided during the technical conference raised new questions. For example, Commission Staff indicated that the NOPR would apply to market participants in the RTO/ISO markets and that any entity that is a member of a RTO/ISO per the applicable RTO/ISO tariff must submit Connected Entity information to each RTO/ISO to which it is a member. This response raises questions, as there are many entities that are members of a RTO/ISO as defined by the tariff but that are not participating in the market and there are entities participating, buying, and selling in the RTO/ISO markets that are not formal 'members' of the RTO/ISO markets or signatories to any sort of operating agreement," the industry groups said.

Additionally, other discussions at the technical conference addressing industry concerns are not reflected in the rulemaking's record

In response, the industry groups petitioned FERC in late December to either withdraw the current NOPR or at a minimum, supplement the NOPR with the guidance provided during the recent technical conference. The groups also sought suspension of a January 22 deadline for comments given uncertainty in the rulemaking.

"This would give market participants an opportunity to provide more focused feedback on the specific reporting requirements that the Commission is proposing, in keeping with the open and fair rulemaking process anticipated by the Administrative Procedure Act ('APA'), 5 USC § 553," the industry groups said

FERC denied the request at this time, though it said it would further consider withdrawing or supplementing the NOPR after receipt of stakeholder comments.

"The Commission is not persuaded by Industry Groups that it should suspend the January 22, 2016 comment due date and, at this time, either withdraw the NOPR and revise it or issue a supplemental NOPR prior to receiving comments. The Commission emphasizes that it will accept and consider comments received by January 22, 2016 on the NOPR, the additional information and clarifications provided by Commission staff at the December 8, 2015 technical conference (and included in this docket on December 10, 2016), and on whether the Commission should withdraw, or otherwise issue a supplemental or revised NOPR. After considering all of the comments received, the Commission will determine whether it is necessary to withdraw the NOPR, or whether it is appropriate to issue a supplemental or revised NOPR prior to issuing a final rule," FERC said

"As Commission staff emphasized at the Technical Conference, it is important that the Commission receive detailed and specific written comments on the NOPR proposal so that it is able to make a well-informed decision as to how to proceed with this rulemaking. While the technical conference provided a useful forum for interested entities to raise their concerns with the proposal and to ask questions of Commission staff, it remains necessary for the Commission to receive written comments on the NOPR prior to determining what revisions are necessary, or whether issuing a supplemental or revised NOPR is appropriate or necessary, or whether issuing a final rule in this docket is appropriate. Moreover, as with any rulemaking, interested entities can seek additional clarifications and urge the Commission to reconsider aspects of the proposal in their comments," FERC said

Docket No. RM15-23

ADVERTISEMENT
NEW Jobs on RetailEnergyJobs.com:
• NEW! -- Operations Manager -- Retail Supplier
• NEW! -- Pricing Analyst -- Retail Supplier -- Houston
• NEW! -- Channel Marketing Manager -- Retail Supplier -- Houston
• NEW! -- Marketing Assistant -- Retail Provider -- Houston
• NEW! -- Financial Controller -- Retail Supplier -- Houston
• NEW! -- Sr. Energy Analyst -- Texas
• NEW! -- Structuring Analyst -- Retail Supplier -- Houston
• NEW! -- Manager, Commercial Client Services -- Retail Supplier -- Houston/DFW
• NEW! -- Account Coordinator