FERC To Require e-Tag, Exchange/Broker Data in EQR Reports

FERC has issued a final rule to require the filers Electric Quarterly Reports (EQRs), such as retail suppliers with market-based rate authority, to submit e-Tag IDs for each transaction reported in the EQR if an e-Tag was used to schedule the transaction.

Furthermore, FERC will require EQR filers to identify whether an exchange or broker was used to consummate a transaction. While FERC will require the specific exchange to be identified, if a broker is used, the Commission will not require the names of the brokers to be disclosed, and will only require that the filer indicate whether a broker was used in the transaction.

"The Commission is cognizant of an increased burden associated with a requirement to match transactions with associated e-Tag IDs in the EQR. We find that, on balance, this burden is justified given the importance of this information for facilitating price transparency in jurisdictional markets," FERC said.

"Requiring e-Tags as part of the EQR will allow the Commission to fill a significant gap in the existing EQR information by enabling the identification of linked transactions and the source location of wholesale sales transactions. Using the current EQR information, it is difficult to identify linked re-sales or chains of transactions between filers. By identifying separate transactions that share e-Tag IDs and delivery timeframes, the Commission and the public will be able to better understand the links and chains between transactions," FERC said.

"Therefore, accessing e-Tag IDs through the EQR will facilitate price transparency by enabling all market participants and the Commission to 'follow' transactions across markets," FERC said.

"Furthermore, the mark-ups observed for linked transactions are a valuable indicator of competitiveness in the wholesale market. Specifically, one would expect the arbitrage value to be closely associated with the cost to secure transmission between the linked transaction delivery points. Persistent price differences that are not consistent with transmission costs could indicate an opportunity for market participants to participate economically in that market or it could indicate a market inefficiency that needs to be addressed. Without knowing where power is being generated, it is difficult to determine whether an interchange transaction is the result of competitively arbitraging price separations between markets or anti-competitive or manipulative behavior," FERC said.

Docket: RM10-12