View Information Collection Request (ICR) Package

Abstract: FERC-545 is required to implement sections 4, 5, and 16 of the Natural Gas Act (NGA), (15 USC 717c-717o, PL 75 688, 52 Stat. 822 and 830). NGA Sections 4, 5, and 16 authorize the Commission to inquire into rate structures and methodologies and to set rates at a just and reasonable level. Specifically, a natural gas company must obtain Commission authorization for all rates and charges made, demanded, or received in connection with the transportation or sale of natural gas in interstate commerce. Under the NGA, a natural gas company’s rates must be just and reasonable and not unduly discriminatory or preferential. The Commission may act under different sections of the NGA to effect a change in a natural gas company’s rates. When the Commission reviews changes in rates that a natural gas company has proposed, it is subject to the requirement of section 4(e) of the NGA. Under section 4(e), the natural gas company bears the burden of proving that its proposed rates are just and reasonable. For example, when a pipeline files to increase its rates, it makes a filing with the Commission under section 4 of the NGA. These types of filings are referred to as general section 4 rate cases. In the proceedings, the Commission reviews all of a pipeline’s rates and services. A pipeline can file a general section 4 rate case anytime it wishes, provided the pipeline did not agree otherwise in a settlement. A pipeline must demonstrate that the new rates it proposes to charge are just and reasonable. When a rate increase filing is made pursuant to section 4, the application is typically suspended and set for hearing by a Commission Order. On the other hand, when the Commission seeks to impose its own rate determination, it must do so in compliance with section 5(a) of the NGA. Under section 5, the Commission must first establish that its alternative rate proposal is both just and reasonable. The Final Rule in RM96-1-041 requires interstate gas pipelines to make a one-time tariff filing to reflect the changes in the updated NAESB standards. Interstate natural gas pipelines are required to conduct their transactions in accordance with the stated terms of their tariffs. The compliance tariff filings made in accordance with the final rule ensure that the pipelines acknowledge their obligation to conduct their business transactions in accordance with Commission requirements, which now include a requirement to comply with the business practice standards incorporated by reference into the Commission’s regulations as enforceable, mandatory requirements. The tariff filing also provides transparency for customers, as the business practice standards to be followed by the pipeline are specifically identified in the pipeline’s tariff. In the Final Rule, the Commission amends its regulations at 18 CFR 284.12(a) to incorporate by reference the latest version (Version 3.1) of certain business practice standards adopted by the Wholesale Gas Quadrant (WGQ) of the North American Energy Standards Board (NAESB) applicable to natural gas pipelines. To implement these standards, natural gas pipelines will be required to file tariff sheets to reflect the changed standards. The FERC-545 accounts for the preparation and filing of tariff sheets. Information collection requirements contained within the standards are under FERC-549C, which the Commission is submitting concurrently with this package in a separate ICR.

ICR Summary of Burden

	Total Approved	Previously Approved	Change Due to Agency Discretion	Change Due to Adjustment in Estimate
Annual Number of Responses	1,287	2,648	-440	-921
Annual Time Burden (Hours)	283,888	286,827	-2,970	31
Annual Cost Burden (Dollars)	0	0	0	0

Burden increases because of Program Change due to Agency Discretion: Yes

Burden Increase Due to: Changing Regulations

Burden decreases because of Program Change due to Agency Discretion: Yes

Burden Reduction Due to: Miscellaneous Actions

Short Statement: The Final Rule in RM96-1-041 amends the Commission’s regulations at 18 CFR 284.12(a) to incorporate by reference the latest version (Version 3.1) of seven business practice standards applicable to interstate natural gas pipelines adopted by NAESB’s WGQ. By incorporating these standards by reference into the Commission’s regulations the Commission has made compliance mandatory and enforceable. Non-compliance, absent a specific waiver, violates the Commission’s regulations as well as the terms of each pipeline’s tariff. The final rule revises and replaces the existing incorporated business practices standards (the Version 3.0 standards) to make two substantive revisions to its Nominations Related Standards, one to establish a standard rounding process for elapsed-prorated-scheduled quantity calculations, and a second to revise the specifications for the information to be included in a nomination request. NAESB also adopted three revisions to the Quadrant Electronic Delivery Mechanism Related Standards. First, it has increased the allowable field length in ASCII Comma Separated Value Files to 3000 characters. Second, it has adopted new Standard 4.3.106 to allow checkboxes and radio buttons in the Transmission Service Providers’ Electronic Bulletin Boards. Third, NAESB modified its standards to update the operating systems and web browsers that entities should support on behalf of users. Additionally, clarifying language was added to the Secure Sockets Layer/Transport Layer Security protocols. Other changes adopted by NAESB to the business practice standards included changes to the NAESB WGQ data sets and other technical implementation documentation as well as revisions to the Flowing Gas Related data sets and technical implementation. Further, NAESB revised the Imbalance Trade data set and revised two Senders Option data elements. In addition, NAESB adopted revisions to the Capacity Release Related data sets and technical implementation. NAESB also revised Standard 6.3.1 (i.e., the NAESB Base Contract for Sale and Purchase of Natural Gas) to add language directing users to NAESB’s copyright disclaimer posted on the NAESB website. Identical language was added to three additional NAESB WGQ Contracts. Lastly, NAESB added a self-identification provision that assists end users in determining whether counterparties are commercial market participants as defined by the United States Commodity Futures Trading Commission. FERC-545 has reductions in burden due to one-time requirements having been completed (related to RM96-1-038 Final Rule, RM14-2-000 Final Rule, and RM14-21-000 Final Rule). FERC staff is removing these three one-time requirements that are outside of their respective implementation periods, have been completed, and should no longer apply to FERC-545 reporting burden: • One-time Tariff Filing for Pipeline Map URL : 165 responses and 1,320 hours annually (averaged over Years 1-3) • Tariff Filing for New/Revised Nomination Cycles : 165 responses and 550 hours annually (averaged over Years 1-3) • One-time Implementation Requiring Interstate Gas Pipelines to make one-time tariff filing : 165 responses and 1,650 hours annually (averaged over Years 1-3) FERC subject-matter experts also revised the organization and labelling for the reporting requirement based on their actual organization in FERC regulations. This more granular approach allowed a more thorough review of the FERC-545 information collection. The existing FERC-545 reporting burden experienced slight changes:1) a fluctuation in annual filers (921 less responses per year based on recent activity and projections on future activity) and 2) revised burden per response as related to each reporting requirement (which resulted in an additional 31 hours per year industry-wide).

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