18 CFR 4.33 Limitations on submitting applications.
(a) Limitations on submission and acceptance of a preliminary permit
application. The Commission will not accept an application for a
preliminary permit for project works that:
(1) Would develop, conserve, and utilize, in whole or in part, the
same water resources that would be developed, conserved, and utilized by
a project for which there is an unexpired preliminary permit.
(2) Would develop, conserve, and utilize, in whole or in part, the
same water resources that would be developed, conserved, and utilized by
a project for which an initial development application has been filed
unless the preliminary permit application is filed not later than the
time allowed under 4.36(a) for the filing of applications in
competition against an initial application for a preliminary permit that
would develop, conserve, and utilize, in whole or in part, the same
resources.
(b) Limitations on submission and acceptance of a license
application. The Commission will not accept an application for a
license for project works that would develop, conserve, and utilize, in
whole or in part, the same water resources that would be developed,
conserved, and utilized by a project for which there is an unexpired
preliminary permit, unless the permittee has submitted an application
for license.
(c) Limitations on submission and acceptance of an application for a
license that would affect an exempted project. (1) Except as permitted
under 4.33(c)(2), 4.94(d), or 4.106 (c), (e) or (f), the Commission
will not accept an application for a license for project works that are
already exempted from licensing under this part.
(2) If a project is exempted from licensing pursuant to 4.103 or
4.109 and real property interests in any non-Federal lands would be
necessary to develop or operate the project, any person who is both a
qualified license applicant and has any of those real property interests
in non-Federal lands may submit a license application for that project.
If a license application is submitted under this clause, any other
qualified license applicant may submit a competing license application
in accordance with 4.36.
(d) Limitations on submission and acceptance of exemption
applications -- (1) Unexpired permit or license. (i) If there is an
unexpired permit in effect for a project, the Commission will accept an
application for exemption of that project from licensing only if the
exemption applicant is the permittee. Upon acceptance for filing of the
permittee's application, the permit will be considered to have expired.
(ii) If there is an unexpired license in effect for a project, the
Commission will accept an application for exemption of that project from
licensing only if the exemption applicant is the licensee.
(2) Pending license applications. If an accepted license application
for a project was submitted by a permittee before the preliminary permit
expired, the Commission will not accept an application for exemption of
that project from licensing submitted by a person other than the former
permittee.
(3) Submitted by qualified exemption applicant. If the first
accepted license application for a project was filed by a qualified
exemption applicant, the applicant may request that its license
application be treated initially as an application for exemption from
licensing by so notifying the Commission in writing and, unless only
rights to use or occupy Federal lands would be necessary to develop and
operate the project, by submitting documentary evidence showing that the
applicant holds the real property interests required under 4.31. Such
notice and documentation must be submitted not later than the last date
for filing protests or motions to intervene prescribed in the public
notice issued for its license application under 4.32(d)(2).
(e) Priority of exemption applicant's earlier permit or license
application. Any accepted preliminary permit or license application
submitted by a person who later applies for exemption of the project
from licensing will retain its validity and priority under this subpart
until the preliminary permit or license application is withdrawn or the
project is exempted from licensing.
(Order 413, 50 FR 11680, Mar. 25, 1985, as amended by Order 499, 53
FR 27002, July 18, 1988)
18 CFR 4.34 Hearings on applications; consultation on terms and
conditions; motions to intervene.
(a) Trial-type hearing. The Commission may order a trial-type
hearing on an application for a preliminary permit, a license, or an
exemption from licensing upon either its own motion or the motion of any
interested party of record. Any trial-type hearing will be limited to
the issues prescribed by order of the Commission. In all other cases
the hearings will be conducted by notice and comment procedures.
(b) Notice and comment hearings. All comments (including mandatory
and recommended terms and conditions or prescriptions) on an application
for exemption or license must be filed with the Commission no later than
60 days after issuance by the Commission of public notice declaring that
the application is ready for environmental analysis. All reply comments
must be filed within 105 days of that notice. All comments and reply
comments and all other filings described in this section must be served
on all persons listed in the service list prepared by the Commission, in
accordance with the requirements of 385.2010 of this chapter. If a
party or interceder (as defined in 385.2201 of this Chapter) submits
any written material to the Commission relating to the merits of an
issue that may affect the responsibilities of a particular resource
agency, the party or interceder must also serve a copy of the submission
on this resource agency. The Commission may allow for longer comment or
reply comment periods if appropriate. A commenter or reply commenter
may obtain an extension of time from the Commission only upon a showing
of good cause or extraordinary circumstances in accordance with
385.2008 of this chapter. Late-filed fish and wildlife recommendations
will not be subject to the requirements of paragraphs (e), (f)(1)(ii),
and (f)(3) of this section, and late-filed terms and conditions or
prescriptions will not be subject to the requirements of paragraphs
(f)(1)(iv), (f)(1)(v), and (f)(2) of this section. Late-filed fish and
wildlife recommendations, terms and conditions, or prescriptions will be
considered by the Commission under section 10(a) of the Federal Power
Act if such consideration would not delay or disrupt the proceeding.
(1) Agencies responsible for mandatory terms and conditions and
presentations. Any agency responsible for mandatory terms and
conditions or prescriptions for licenses or exemptions, pursuant to
sections 4(e), 18, and 30(c) of the Federal Power Act and section 405(d)
of the Public Utility Regulatory Policies Act of l978, as amended, must
provide these terms and conditions or prescriptions in its initial
comments filed with the Commission pursuant to paragraph (b) of this
section. In those comments, the agency must specifically identify and
explain the mandatory terms and conditions or prescriptions and their
evidentiary and legal basis. If ongoing agency proceedings to determine
the terms and conditions or prescriptions are not completed by the date
specified, the agency must submit to the Commission by the due date:
(i) Preliminary terms and conditions or prescriptions and a schedule
showing the status of the agency proceedings and when the terms and
conditions or prescriptions are expected to become final; or
(ii) A statement waiving the agency's right to file the terms and
conditions or prescriptions or indicating the agency does not intend to
file terms and conditions or prescriptions.
(2) Fish and Wildlife agencies and Indian tribes. All fish and
wildlife agencies must set forth any recommended terms and conditions
for the protection, mitigation of damages to, or enhancement of fish and
wildlife, pursuant to the Fish and Wildlife Coordination Act and section
10(j) of the Federal Power Act, in their initial comments filed with the
Commission by the date specified in paragraph (b) of this section. All
Indian tribes must submit recommendations (including fish and wildlife
recommendations) by the same date. In those comments, a fish and
wildlife agency or Indian tribe must discuss its understanding of the
resource issues presented by the proposed facilities and the evidentiary
basis for the recommended terms and conditions.
(3) Other Government agencies and members of the public. Resource
agencies, other governmental units, and members of the public must file
their recommendations in their initial comments by the date specified in
paragraph (b) of this section. The comments must clearly identify all
recommendations and present their evidentiary basis.
(4) Submittal of modified recommendations, terms and conditions or
prescriptions. (i) If the information and analysis (including
reasonable alternatives) presented in a draft environmental impact
statement, issued for comment by the Commission, indicate a need to
modify the recommendations or terms and conditions or prescriptions
previously submitted to the Commission pursuant to paragraphs (b)(1),
(b)(2), or (b)(3) of this section, the agency, Indian tribe, or member
of the public must file with the Commission any modified recommendations
or terms and conditions or prescriptions on the proposed project (and
reasonable alternatives) no later than the due date for comments on the
draft environmental impact statement. Modified recommendations or terms
and conditions or prescriptions must be clearly distinguished from
comments on the draft statement.
(ii) If an applicant files an amendment to its application that would
materially change the project's proposed plans of development, as
provided in 4.35, an agency, Indian tribe or member of the public may
modify the recommendations or terms and conditions or prescriptions it
previously submitted to the Commission pursuant to paragraphs (b)(1),
(b)(2), or (b)(3) of this section no later than the due date specified
by the Commission for comments on the amendment.
(c) Additional procedures. If necessary or appropriate the
Commission may require additional procedures (e.g., a pre-hearing
conference, further notice and comment on specific issues or oral
argument). A party may request additional procedures in a motion that
clearly and specifically sets forth the procedures requested and the
basis for the request. Replies to such requests may be filed within 15
days of the request.
(d) Consultation procedures. Pursuant to the Federal Power Act and
the Public Utility Regulatory Policies Act of 1978, as amended, the
Commission will coordinate as appropriate with other government agencies
responsible for mandatory terms and conditions for exemptions and
licenses for hydropower projects. Pursuant to the Federal Power Act and
the Fish and Wildlife Coordination Act, the Commission will consult with
fish and wildlife agencies concerning the impact of a hydropower
proposal on fish and wildlife and appropriate terms and conditions for
license to adequately and equitably protect, mitigate damages to, and
enhance fish and wildlife (including related spawning grounds and
habitat). Pursuant to the Federal Power Act and the Endangered Species
Act, the Commission will consult with the U.S. Fish and Wildlife Service
or the National Marine Fisheries Service, as appropriate, concerning the
impact of a hydropower proposal on endangered or threatened species and
their critical habitat.
(e) Consultation on recommended fish and wildlife conditions;
section 10(j) process. (1) In connection with its environmental review
of an application for license, the Commission will analyze all terms and
conditions timely recommended by fish and wildlife agencies pursuant to
the Fish and Wildlife Coordination Act for the protection, mitigation of
damages to, and enhancement of fish and wildlife affected by the
development, operation, and management of the proposed project.
Submission of such recommendations marks the beginning of the process
under section 10(j) of the Federal Power Act.
(2) Within 45 days of the filing of any fish and wildlife
recommendation, the Commission may seek clarification of it, unless this
deadline is extended by the Commission upon notice to the fish and
wildlife agency concerned. If the Commission's request for
clarification is communicated in writing, copies of the request will be
sent by the Commission to all parties, affected resource agencies, and
Indian tribes, which may file a response to the request for
clarification within the time period specified by the Commission.
(3) The Commission will make a preliminary determination of
inconsistency of the fish and wildlife recommendation with the purposes
and requirements of the Federal Power Act or other applicable law. This
preliminary determination will be done in writing and shall include an
explanation of its basis, including appropriate references to the
environmental analysis conducted on the license application. A copy of
the environmental analysis will be provided with the determination, and
will be sent to all parties, affected resource agencies, and Indian
tribes.
(4) Any party, affected resource agency, or Indian tribe may file
comments in response to the preliminary determination of inconsistency
within 45 days of its issuance. In this filing, the fish and wildlife
agency concerned may also request a meeting, telephone or video
conference or other additional procedure to attempt to resolve any
preliminary determination of inconsistency.
(5) If the Commission decides to conduct any meeting, telephone or
video conference, or other procedure to address issues raised by its
preliminary determination of inconsistency and comments thereon, the
Commission will give at least 15 days' advance notice to each party,
affected resource agency, or Indian tribe, which may participate in the
meeting or conference. Any meeting, conference, or additional procedure
to address these issues will be scheduled to take place within 75 days
of the date the Commission issues a preliminary determination of
inconsistency. The Commission will prepare a written summary of any
meeting held under this subsection to discuss 10(j) issues, and a copy
of the summary will be sent to all parties, affected resource agencies,
and Indian tribes. If the Commission believes that any fish and
wildlife recommendation submitted by a fish and wildlife agency may be
inconsistent with the purposes and requirements of the Federal Power Act
or other applicable law, the Commission will attempt to resolve any such
inconsistency by appropriate means, giving due weight to the
recommendations, expertise, and statutory responsibilities of the fish
and wildlife agency.
(6) The section 10(j) process ends when the Commission issues an
order granting or denying the license application in question.
(f) Licenses and exemption conditions and required findings -- (1)
License conditions. (i) All licenses shall be issued on the conditions
specified in section 10 of the Federal Power Act and such other
conditions as the Commission determines are lawful and in the public
interest.
(ii) Subject to paragraph (f)(3) of this section, fish and wildlife
conditions shall be based on recommendations timely received from the
fish and wildlife agencies pursuant to the Fish and Wildlife
Coordination Act.
(iii) The Commission will consider the timely recommendations of
resource agencies, other governmental units, and members of the public,
and the timely recommendations (including fish and wildlife
recommendations) of Indian tribes affected by the project.
(iv) Licenses for a project located within any Federal reservation
shall be issued only after the findings required by, and subject to any
conditions that may be timely received pursuant to, section 4(e) of the
Federal Power Act.
(v) The Commission will require the construction, maintenance, and
operation by a licensee at its own expense of such fishways as may be
timely prescribed by the Secretary of Commerce or the Secretary of the
Interior, as appropriate, pursuant to section 18 of the Federal Power
Act.
(2) Exemption conditions. Any exemption from licensing issued for
conduit facilities, as provided in section 30 of the Federal Power Act,
or for small hydroelectric power projects having a proposed installed
capacity of 5,000 kilowatts or less, as provided in section 405(d) of
the Public Utility Regulatory Policies Act of 1978, as amended, shall
include such terms and conditions as the fish and wildlife agencies may
timely determine are appropriate to carry out the responsibilities
specified in section 30(c) of the Federal Power Act.
(3) Required findings. If, after attempting to resolve
inconsistencies between the fish and wildlife recommendations of a fish
and wildlife agency and the purposes and requirements of the Federal
Power Act or other applicable law, the Commission does not adopt in
whole or in part a fish and wildlife recommendation of a fish and
wildlife agency, the Commission will publish the findings and statements
required by section 10(j)(2) of the Federal Power Act.
(g) Application. The provisions of paragraphs (b) through (d) and
(f) of this section apply only to applications for license or exemption;
paragraph (e) applies only to applications for license.
(h) Unless otherwise provided by statute, regulation or order, all
filings in hydropower hearings, except those conducted by trial-type
procedures, shall consist of an original and eight copies.
(Order 533, 56 FR 23148, May 20, 1991, as amended at 56 FR 61155,
Dec. 2, 1991; Order 540, 57 FR 21737, May 22, 1992)
18 CFR 4.35 Amendment of application; date of acceptance.
(a) General rule. Except as provided in paragraph (d) of this
section, if an applicant amends its filed application as described in
paragraph (b) of this section, the date of acceptance of the application
under 4.32(f) is the date on which the amendment to the applicant was
filed.
(b) Paragraph (a) of this section applies if an applicant:
(1) Amends its filed license or preliminary permit application in
order to change the status or identity of the applicant or to materially
amend the proposed plans of development; or
(2) Amends its filed application for exemption from licensing in
order to materially amend the proposed plans of development, or
(3) Amends its filed application in order to change its statement of
intent of whether or not it will seek benefits under section 210 of
PURPA, as originally filed under 4.32(c)(1).
(c) An application amended under paragraph (a) is a new filing for:
(1) The purpose of determining its timeliness under 4.36 of this
part;
(2) Disposing of competing applications under 4.37; and
(3) Reissuing public notice of the application under 4.32(d)(2).
(d) If an application is amended under paragraph (a) of this section,
the Commission will rescind any acceptance letter already issued for the
application.
(e) Exceptions. This section does not apply to:
(1) Any corrections of deficiencies made pursuant to 4.32(e)(1);
(2) Any amendments made pursuant to 4.37(b)(4) by a State or a
municipality to its proposed plans of development to make them as well
adapted as the proposed plans of an applicant that is not a state or a
municipality;
(3) Any amendments made pursuant to 4.37(c)(2) by a priority
applicant to its proposed plans of development to make them as well
adapted as the proposed plans of an applicant that is not a priority
applicant;
(4) Any amendments made by a license or an exemption applicant to its
proposed plans of development to satisfy requests of resource agencies
or Indian tribes submitted after an applicant has consulted under 4.38
or concerns of the Commission; and
(5)(i) Any license or exemption applicant with a project located at a
new dam or diversion who is seeking PURPA benefits and who:
(A) Has filed an adverse environmental effects (AEE) petition
pursuant to 292.211 of this chapter; and
(B) Has proposed measures to mitigate the adverse environmental
effects which the Commission, in its initial determination on the AEE
petition, stated the project will have.
(ii) This exception does not protect any proposed mitigative measures
that the Commission finds are a pretext to avoid the consequences of
materially amending the application or are outside the scope of
mitigating the adverse environmental effects.
(f) Definitions. (1) For the purposes of this section, a material
amendment to plans of development proposed in an application for a
license or exemption from licensing means any fundamental and
significant change, including but not limited to:
(i) A change in the installed capacity, or the number or location of
any generating units of the proposed project if the change would
significantly modify the flow regime associated with the project;
(ii) A material change in the location, size, or composition of the
dam, the location of the powerhouse, or the size and elevation of the
reservoir if the change would:
(A) Enlarge, reduce, or relocate the area of the body of water that
would lie between the farthest reach of the proposed impoundment and the
point of discharge from the powerhouse; or
(B) Cause adverse environmental impacts not previously discussed in
the original application; or
(iii) A change in the number of discrete units or development to be
included within the project boundary.
(2) For purposes of this section, a material amendment to plans of
development proposed in an application for a preliminary permit means a
material change in the location of the powerhouse or the size and
elevation of the reservoir if the change would enlarge, reduce, or
relocate the area of the body of water that would lie between the
farthest reach of the proposed impoundment and the point of discharge
from the powerhouse.
(3) For purposes of this section, a change in the status of an
applicant means:
(i) The acquisition or loss of preference as a state or a
municipality under section 7(a) of the Federal Power Act; or
(ii) The loss of priority as a permittee under section 5 of the
Federal Power Act.
(4) For purposes of this section, a change in the identity of an
applicant means a change that either singly, or together with previous
amendments, causes a total substitution of all the original applicants
in a permit or a license application.
(Order 413, 50 FR 11680, Mar. 25, 1985, as amended by Order 499, 53
FR 27002, July 18, 1988; Order 533, 56 FR 23149, May 20, 1991)
18 CFR 4.36 Competing applications: deadlines for filing; notices of
intent; comparisons of plans of development.
The public notice of an initial preliminary permit application or an
initial development application shall prescribe the deadline for filing
protests and motions to intervene in that proceeding (the prescribed
intervention deadline).
(a) Deadlines for filing applications in competition with an initial
preliminary permit application. (1) Any preliminary permit application
or any development application not filed pursuant to a notice of intent
must be submitted for filing in competition with an initial preliminary
permit application not later than the prescribed intervention deadline.
(2) Any preliminary permit application filed pursuant to a notice of
intent must be submitted for filing in competition with an initial
preliminary permit application not later than 30 days after the
prescribed intervention deadline.
(3) Any development application filed pursuant to a notice of intent
must be submitted for filing in competition with an initial preliminary
permit application not later than 120 days after the prescribed
intervention deadline.
(b) Deadlines for filing applications in competition with an initial
development application. (1) Any development application not filed
pursuant to a notice of intent must be submitted for filing in
competition with an initial development application not later than the
prescribed intervention deadline.
(2) Any development application filed pursuant to a notice of intent
must be submitted for filing in competition with an initial development
application not later than 120 days after the prescribed intervention
deadline.
(3) If the Commission has accepted an application for exemption of a
project from licensing and the application has not yet been granted or
denied, the applicant for exemption may submit a license application for
the project if it is a qualified license applicant. The pending
application for exemption from licensing will be considered withdrawn as
of the date the Commission accepts the license application for filing.
If a license application is accepted for filing under this provision,
any qualified license applicant may submit a competing license
application not later than the prescribed intervention deadline set for
the license application.
(4) Any preliminary permit application must be submitted for filing
in competition with an initial development application not later than
the deadlines prescribed in paragraphs (a)(1) and (a)(2) for the
submission of preliminary permit applications filed in competition with
an initial preliminary permit application.
(c) Notices of intent. (1) Any notice of intent to file an
application in competition with an initial preliminary permit or an
initial development application must be submitted for filing not later
than the prescribed intervention deadline for the initial application.
(2) A notice of intent must include:
(i) The exact name, business address, and telephone number of the
prospective applicant; and
(ii) An unequivocal statement of intent to submit a preliminary
permit application or a development application (specify which type of
application).
(d) Requirements for competing applications. (1) Any competing
application must:
(i) Conform to all requirements for filing an initial application;
and
(ii) Include proof of service of a copy of the competing application
on the person(s) designated in the public notice of the initial
application for service of pleadings, documents, or communications
concerning the initial application.
(2) Comparisons of plans of development. (i) After the deadline for
filing applications in competition against an initial development
application has expired, the Commission will notify each license and
exemption applicant of the identity of the other applicants.
(ii) Not later than 14 days after the Commission serves the
notification described in paragraph (d)(2)(i) of this section, if a
license or exemption applicant has not already done so, it must serve a
copy of its application on each of the other license and exemption
applicants.
(iii) Not later than 60 days after the Commission serves the
notification described in paragraph (d)(2)(i) of this section, each
license and exemption applicant must file with the Commission a detailed
and complete statement of how its plans are as well or better adapted
than are the plans of each of the other license and exemption applicants
to develop, conserve, and utilize in the public interest the water
resources of the region. These statements should be supported by any
technical analyses that the applicant deems appropriate to support its
proposed plans of development.
(Order 413, 50 FR 11680, Mar. 25, 1985; 50 FR 23947, June 7, 1985)
18 CFR 4.37 Rules of preference among competing applications.
Except as provided in 4.33(f), the Commission will select among
competing applications on the following bases:
(a) If an accepted application for a preliminary permit and an
accepted application for a license propose project works that would
develop, conserve, and utilize, in whole or in part, the same water
resources, and the applicant for a license has demonstrated its ability
to carry out its plans, the Commission will favor the license applicant
unless the permit applicant substantiates in its filed application that
its plans are better adapted to develop, conserve, and utilize in the
public interest the water resources of the region.
(b) If two or more applications for preliminary permits or two or
more applications for licenses (not including applications for a new
license under section 15 of the Federal Power Act) are filed by
applicants for project works that would develop, conserve, and utilize,
in whole or in part, the same water resources, and if none of the
applicants is a preliminary permittee whose application for license was
accepted for filing within the permit period, the Commission will select
between or among the applicants on the following bases:
(1) If both of two applicants are either a municipality or a state,
the Commission will favor the applicant whose plans are better adapted
to develop, conserve, and utilize in the public interest the water
resources of the region, taking into consideration the ability of each
applicant to carry out its plans.
(2) If both of two applicants are either a municipality or a state,
or neither of them is a municipality or a state, and the plans of the
applicants are equally well adapted to develop, conserve, and utilize in
the public interest the water resources of the region, taking into
consideration the ability of each applicant to carry out its plans, the
Commission will favor the applicant with the earliest application
acceptance date.
(3) If one of two applicants is a municipality or a state, and the
other is not, and the plans of the municipality or a state are at least
as well adapted to develop, conserve, and utilize in the public interest
the water resources of the region, the Commission will favor the
municipality or state.
(4) If one of two applicant is a municipality or a state, and the
other is not, and the plans of the applicant who is not a municipality
or a state are better adapted to develop, conserve, and utilize in the
public interest the water resources of the region, the Commission will
inform the municipality or state of the specific reasons why its plans
are not as well adapted and afford a reasonable period of time for the
municipality or state to render its plans at least as well adapted as
the other plans. If the plans of the municipality or state are rendered
at least as well adapted within the time allowed, the Commission will
favor the municipality or state. If the plans are not rendered at least
as well adapted within the time allowed, the Commission will favor the
other applicant.
(c) If two or more applications for licenses are filed for project
works which would develop, conserve, and utilize, in whole or in part,
the same water resources, and one of the applicants was a preliminary
permittee whose application was accepted for filing within the permit
period (priority applicant), the Commission will select between or among
the applicants on the following bases:
(1) If the plans of the priority applicant are at least as well
adapted as the plans of each other applicant to develop, conserve, and
utilize in the public interest the water resources of the region, taking
into consideration the ability of each applicant to carry out its plans,
the Commission will favor the priority applicant.
(2) If the plans of an applicant who is not a priority applicant are
better adapted than the plans of the priority applicant to develop,
conserve, and utilize in the public interest the water resources of the
region, taking into consideration the ability of each applicant to carry
out its plans, the Commission will inform the priority applicant of the
specific reasons why its plans are not as well adapted and afford a
reasonable period of time for the priority applicant to render its plans
at least as well adapted as the other plans. If the plans of the
priority applicant are rendered at least as well adapted within the time
allowed, then the Commission will favor the priority applicant. If the
plans of the priority applicant are not rendered as well adapted within
the time allowed, the criteria specified in paragraph (b) will govern.
(3) The criteria specified in paragraph (b) will govern selection
among applicants other than the priority applicant.
(d) With respect to a project for which an application for an
exemption from licensing has been accepted for filing, the Commission
will select among competing applications on the following bases:
(1) If an accepted application for a preliminary permit and an
accepted application for exemption from licensing propose to develop
mutually exclusive small hydroelectric power projects, the Commission
will favor the applicant whose substantiated plans in the application
received by the Commission are better adapted to develop, conserve, and
utilize in the public interest the water resources of the region. If
the substantiated plans are equally well adapted, the Commission will
favor the application for exemption from licensing.
(2) If an application for a license and an application for exemption
from licensing, or two or more applications for exemption from licensing
are each accepted for filing and each proposes to develop a mutually
exclusive project, the Commission will favor the applicant whose plans
are better adapted to develop, conserve, and utilize in the public
interest the water resources of the region. If the plans are equally
well adapted, the Commission will favor the applicant with the earliest
application acceptance date.
(e) A municipal applicant must provide evidence that the municipality
is competent under applicable state and local laws to engage in the
business of developing, transmitting, utilizing, or distributing power,
or such applicant will be considered a non-municipal applicant for the
purpose of determining the disposition of competing applications.
(Order 413, 50 FR 11682, Mar. 25, 1985)
18 CFR 4.38 Consultation requirements.
(a) Requirement to consult. (1) Before it files any application for
an original license or an exemption from licensing that is described in
paragraph (a)(4) of this section, a potential applicant must consult
with the relevant Federal, State, and interstate resource agencies,
including the National Marine Fisheries Service, the United States Fish
and Wildlife Service, the National Park Service, the United States
Environmental Protection Agency, the Federal agency administering any
United States lands or facilities utilized or occupied by the project,
the appropriate State fish and wildlife agencies, the appropriate State
water resource management agencies, the certifying agency under section
401(a)(1) of the Federal Water Pollution Control Act (Clean Water Act),
33 U.S.C. 1341(c)(1), and any Indian tribe that may be affected by the
proposed project.
(2) The Director of the Office of Hydropower Licensing or the
Regional Director responsible for the area in which the project is
located will, upon request, provide a list of known appropriate Federal,
state, and interstate resource agencies and Indian tribes.
(3) An applicant for an exemption from licensing or an applicant for
a license seeking benefits under section 210 of the Public Utility
Regulatory Policies Act, as amended, for a project that would be located
at a new dam or diversion must, in addition to meeting the requirements
of this section, comply with the consultation requirements in 4.301.
(4) The pre-filing consultation requirements of this section apply
only to an application for:
(i) Original license;
(ii) Exemption;
(iii) Amendment to an application for original license or exemption
that materially amends the proposed plans of development as defined in
4.35(f)(1);
(iv) Amendment to an existing license that would increase the
capacity of the project as defined in 4.201(b); or
(v) Amendment to an existing license that would not increase the
capacity of the project as defined in 4.201(b), but that would involve:
(A) The construction of a new dam or diversion in a location where
there is no existing dam or diversion;
(B) Any repair, modification, or reconstruction of an existing dam
that would result in a significant change in the normal maximum surface
area or elevation of an existing impoundment; or
(C) The addition of new water power turbines other than to replace
existing turbines.
(5) Before it files a non-capacity related amendment as defined in
4.201(c), an applicant must consult with the resource agencies and
Indian tribes listed in paragraph (a)(1) of this section to the extent
that the proposed amendment would affect the interests of the agencies
or tribes. When consultation is necessary, the applicant must, at a
minimum, provide the resource agencies and Indian tribes with copies of
the draft application and allow them at least 60 days to comment on the
proposed amendment. The amendment as filed with the Commission must
summarize the consultation with the resource agencies and Indian tribes
on the proposed amendment, propose reasonable protection, mitigation, or
enhancement measures to respond to impacts identified as being caused by
the proposed amendment, and respond to any objections, recommendations,
or conditions submitted by the agencies or Indian tribes. Copies of all
written correspondence between the applicant, the agencies, and the
tribes must be attached to the application.
(6) This section does not apply to any application for a new license,
a nonpower license, a subsequent license, or surrender of a license
subject to sections 14 and 15 of the Federal Power Act.
(7) If a potential applicant has any doubt as to whether a particular
application or amendment would be subject to the pre-filing consultation
requirements of this section or if a waiver of the pre-filing
requirements would be appropriate, the applicant may file a written
request for clarification or waiver with the Director, Office of
Hydropower Licensing.
(b) First stage of consultation. (1) A potential applicant must
promptly contact each of the appropriate resource agencies and affected
Indian tribes; provide them with a description of the proposed project
and supporting information; and confer with them on project design, the
impact of the proposed project (including a description of any existing
facilities, their operation, and any proposed changes), reasonable
hydropower alternatives, and what studies the applicant should conduct.
The potential applicant must provide to the resource agencies, Indian
tribes, and the Commission the following information:
(i) Detailed maps showing project boundaries, if any, proper land
descriptions of the entire project area by township, range, and section,
as well as by state, county, river, river mile, and closest town, and
also showing the specific location of all proposed project facilities,
including roads, transmission lines, and any other appurtenant
facilities;
(ii) A general engineering design of the proposed project, with a
description of any proposed diversion of a stream through a canal or a
penstock;
(iii) A summary of the proposed operational mode of the project;
(iv) Identification of the environment to be affected, the
significant resources present, and the applicant's proposed
environmental protection, mitigation, and enhancement plans, to the
extent known at that time;
(v) Streamflow and water regime information, including drainage area,
natural flow periodicity, monthly flow rates and durations, mean flow
figures illustrating the mean daily streamflow curve for each month of
the year at the point of diversion or impoundment, with location of the
stream gauging station, the method used to generate the streamflow data
provided, and copies of all records used to derive the flow data used in
the applicant's engineering calculations;
(vi)(A) A statement (with a copy to the Commission) of whether or not
the applicant will seek benefits under section 210 of PURPA by
satisfying the requirements for qualifying hydroelectric small power
production facilities in 292.203 of this chapter;
(B) If benefits under section 210 of PURPA are sought, a statement on
whether or not the applicant believes the project is located at a new
dam or diversion (as that term is defined in 292.202(p) of this
chapter) and a request for the agencies' view on that belief, if any;
(vii) Detailed descriptions of any proposed studies and the proposed
methodologies to be employed; and
(viii) Any statement required by 4.301(a).
(2) No earlier than 30 days, but no later than 60 days, from the date
of the potential applicant's letter transmitting the information to the
agencies and Indian tribes under paragraph (b)(1) of this section, the
potential applicant must:
(i) Hold a joint meeting at a convenient place and time, including an
opportunity for a site visit, with all pertinent agencies and Indian
tribes to explain the applicant's proposal and its potential
environmental impact, to review the information provided, and to discuss
the data to be obtained and studies to be conducted by the potential
applicant as part of the consultation process;
(ii) Consult with the resource agencies and Indian tribes on the
scheduling and agenda of the joint meeting; and
(iii) No later than 15 days in advance of the joint meeting, provide
the Commission with written notice of the time and place of the meeting
and a written agenda of the issues to be discussed at the meeting.
(3) Members of the public must be informed of and invited to attend
the joint meeting held pursuant to paragraph (b)(2)(i) of this section
by means of the public notice published in accordance with paragraph (g)
of this section. Members of the public attending the meeting are
entitled to participate in the meeting and to express their views
regarding resource issues that should be addressed in any application
for license or exemption that may be filed by the potential applicant.
Attendance of the public at any site visit held pursuant to paragraph
(b)(2)(i) of this section will be at the discretion of the potential
applicant. The potential applicant must make either audio recordings or
written transcripts of the joint meeting, and must promptly provide
copies of these recordings or transcripts to the Commission and, upon
request, to any resource agency and Indian tribe.
(4) Not later than 60 days after the joint meeting held under
paragraph (b)(2) of this section (unless extended within this time
period by a resource agency or Indian tribe for an additional 60 days by
sending written notice to the applicant and the Director of OHL within
the first 60 day period, with an explanation of the basis for the
extension), each interested resource agency and Indian tribe must
provide a potential applicant with written comments:
(i) Identifying its determination of necessary studies to be
performed or information to be provided by the potential applicant;
(ii) Identifying the basis for its determination;
(iii) Discussing its understanding of the resource issues and its
goals and objectives for these resources;
(iv) Explaining why each study methodology recommended by it is more
appropriate than other available methodology alternatives, including
those identified by the potential applicant pursuant to paragraph
(b)(1)(vii) of this section;
(v) Documenting that the use of each study methodology recommended by
it is a generally accepted practice; and
(vi) Explaining how the studies and information requested will be
useful to the agency or Indian tribe in furthering its resource goals
and objectives that are affected by the proposed project.
(5)(i) If a potential applicant and a resource agency or Indian tribe
disagree as to any matter arising during the first stage of consultation
or as to the need to conduct a study or gather information referenced in
paragraph (c)(2) of this section, the potential applicant or resource
agency or Indian tribe may refer the dispute in writing to the Director
of the Office of Hydropower Licensing (Director) for resolution.
(ii) At the same time as the request for dispute resolution is
submitted to the Director, the entity referring the dispute must serve a
copy of its written request for resolution on the disagreeing party and
any affected resource agency or Indian tribe, which may submit to the
Director a written response to the referral within 15 days of the
referral's submittal to the Director.
(iii) Written referrals to the Director and written responses thereto
pursuant to paragraphs (b)(5)(i) or (b)(5)(ii) of this section must be
filed with the Secretary of the Commission in accordance with the
Commission's Rules of Practice and Procedure, and must indicate that
they are for the attention of the Director pursuant to 4.38(b)(5).
(iv) The Director will resolve disputes by letter provided to the
potential applicant and all affected resource agencies and Indian
tribes.
(v) If a potential applicant does not refer a dispute regarding a
request for information (other than a dispute regarding the information
specified in paragraph (b)(1) of this section) or a study to the
Director under paragraph (b)(5)(i) of this section, or if a potential
applicant disagrees with the Director's resolution of a dispute
regarding a request for information (other than a dispute regarding the
information specified in paragraph (b)(1) of this section) or a study,
and if the potential applicant does not provide the requested
information or conduct the requested study, the potential applicant must
fully explain the basis for its disagreement in its application.
(vi) Filing and acceptance of an application will not be delayed, and
an application will not be considered deficient or patently deficient
pursuant to 4.32 (e)(1) or (e)(2), merely because the application does
not include a particular study or particular information if the Director
had previously found, under paragraph (b)(5)(iv) of this section, that
such study or information is unreasonable or unnecessary for an informed
decision by the Commission on the merits of the application or use of
the study methodology requested is not a generally accepted practice.
(6) The first stage of consultation ends when all participating
agencies and Indian tribes provide the written comments required under
paragraph (b)(4) of this section or 60 days after the joint meeting held
under paragraph (b)(2) of this section, whichever occurs first, unless a
resource agency or Indian tribe timely notifies the applicant and the
Director of OHL of its need for more time to provide written comments
under paragraph (b)(4) of this section, in which case the first stage of
consultation ends when all the participating agencies and Indian tribes
provide the written comments required under paragraph (b)(4) of this
section or 120 days after the joint meeting held under paragraph (b)(2)
of this section, whichever occurs first.
(c) Second stage of consultation. (1) Unless determined to be
unnecessary by the Director pursuant to paragraph (b)(5) of this
section, a potential applicant must diligently conduct all reasonable
studies and obtain all reasonable information requested by resource
agencies and Indian tribes under paragraph (b) of this section that are
necessary for the Commission to make an informed decision regarding the
merits of the application. These studies must be completed and the
information obtained:
(i) Prior to filing the application, if the results:
(A) Would influence the financial (e.g., instream flow study) or
technical feasibility of the project (e.g., study of potential mass soil
movement); or
(B) Are needed to determine the design or location of project
features, reasonable alternatives to the project, the impact of the
project on important natural or cultural resources (e.g., resource
surveys), or suitable mitigation or enhancement measures, or to minimize
impact on significant resources (e.g., wild and scenic river, anadromous
fish, endangered species, caribou migration routes);
(ii) After filing the application but before issuance of a license or
exemption, if the applicant otherwise complied with the provisions of
paragraph (b)(1) of this section and the study or information gathering
would take longer to conduct and evaluate than the time between the
conclusion of the first stage of consultation and the expiration of the
applicant's preliminary permit or the application filing deadline set by
the Commission;
(iii) After a new license or exemption is issued, if the studies can
be conducted or the information obtained only after construction or
operation of proposed facilities, would determine the success of
protection, mitigation, or enhancement measures (e.g., post-construction
monitoring studies), or would be used to refine project operation or
modify project facilities.
(2) If, after the end of the first stage of consultation as defined
in paragraph (b)(6) of this section, a resource agency or Indian tribe
requests that the potential applicant conduct a study or gather
information not previously identified and specifies the basis and
reasoning for its request, under paragraphs (b)(4) (i)-(vi) of this
section, the potential applicant must promptly initiate the study or
gather the information, unless the study or information is unreasonable
or unnecessary for an informed decision by the Commission on the merits
of the application or use of the methodology requested by a resource
agency or Indian tribe for conducting the study is not a generally
accepted practice. The applicant may refer any such request to the
Director of the Office of Hydropower Licensing for dispute resolution
under the procedures set forth in paragraph (b)(5) of this section and
need not conduct prior to filing any study determined by the Director to
be unreasonable or unnecessary or to employ a methodology that is not
generally accepted.
(3)(i) The results of studies and information-gathering referenced in
paragraphs (c)(1)(ii) and (c)(2) of this section will be treated as
additional information; and
(ii) Filing and acceptance of an application will not be delayed and
an application will not be considered deficient or patently deficient
pursuant to 4.32 (e)(1) or (e)(2) merely because the study or
information gathering is not complete before the application is filed.
(4) A potential applicant must provide each resource agency and
Indian tribe with:
(i) A copy of its draft application that:
(A) Indicates the type of application the potential applicant expects
to file with the Commission; and
(B) Responds to any comments and recommendations made by any resource
agency and Indian tribe either during the first stage of consultation or
under paragraph (c)(2) of this section;
(ii) The results of all studies and information-gathering either
requested by that resource agency or Indian tribe in the first stage of
consultation (or under paragraph (c)(2) of this section if available) or
which pertain to resources of interest to that resource agency or Indian
tribe and which were identified by the potential applicant pursuant to
paragraph (b)(1)(vii) of this section, including a discussion of the
results and any proposed protection, mitigation, or enhancement
measures; and
(iii) A written request for review and comment.
(5) A resource agency or Indian tribe will have 90 days from the date
of the potential applicant's letter transmitting the paragraph (c)(4)
information to it to provide written comments on the information
submitted by a potential applicant under paragraph (c)(4) of this
section.
(6) If the written comments provided under paragraph (c)(5) of this
section indicate that a resource agency or Indian tribe has a
substantive disagreement with a potential applicant's conclusions
regarding resource impacts or its proposed protection, mitigation, or
enhancement measures, the potential applicant will:
(i) Hold a joint meeting with the disagreeing resource agency or
Indian tribe and other agencies with similar or related areas of
interest, expertise, or responsibility not later than 60 days from the
date of the written comments of the disagreeing agency or Indian tribe
to discuss and to attempt to reach agreement on its plan for
environmental protection, mitigation, or enhancement measures;
(ii) Consult with the disagreeing agency or Indian tribe and other
agencies with similar or related areas of interest, expertise, or
responsibility on the scheduling of the joint meeting; and
(iii) At least 15 days in advance of the meeting, provide the
Commission with written notice of the time and place of the meeting and
a written agenda of the issues to be discussed at the meeting.
(7) The potential applicant and any disagreeing resource agency or
Indian tribe may conclude a joint meeting with a document embodying any
agreement among them regarding environmental protection, mitigation, or
enhancement measures and any issues that are unresolved.
(8) The potential applicant must describe all disagreements with a
resource agency or Indian tribe on technical or environmental
protection, mitigation, or enhancement measures in its application,
including an explanation of the basis for the applicant's disagreement
with the resource agency or Indian tribe, and must include in its
application any document developed pursuant to paragraph (c)(7) of this
section.
(9) A potential applicant may file an application with the Commission
if:
(i) It has complied with paragraph (c)(4) of this section and no
resource agency or Indian tribe has responded with substantive
disagreements by the deadline specified in paragraph (c)(5) of this
section; or
(ii) It has complied with paragraph (c)(6) of this section and a
resource agency or Indian tribe has responded with substantive
disagreements.
(10) The second stage of consultation ends:
(i) Ninety days after the submittal of information pursuant to
paragraph (c)(4) of this section in cases where no resource agency or
Indian tribe has responded with substantive disagreements; or
(ii) At the conclusion of the last joint meeting held pursuant to
paragraph (c)(6) of this section in cases where a resource agency or
Indian tribe has responded with substantive disagreements.
(d) Third stage of consultation. (1) The third stage of consultation
is initiated by the filing of an application for a license or exemption,
accompanied by a transmittal letter certifying that at the same time
copies of the application are being mailed to the resource agencies,
Indian tribes, and other government offices specified in paragraph
(d)(2) of this section.
(2) As soon as an applicant files such application documents with the
Commission, or promptly after receipt in the case of documents described
in paragraph (d)(2)(iii) of this section, as the Commission may direct
the applicant must serve on every resource agency and Indian tribe
consulted and on other government offices copies of:
(i) Its application for a license or an exemption from licensing;
(ii) Any deficiency correction, revision, supplement, response to
additional information request, or amendment to the application; and
(iii) Any written correspondence from the Commission requesting the
correction of deficiencies or the submittal of additional information.
(e) Waiver of compliance with consultation requirements. (1) If a
resource agency or Indian tribe waives in writing compliance with any
requirement of this section, a potential applicant does not have to
comply with that requirement as to that agency or tribe.
(2) If a resource agency or Indian tribe fails to timely comply with
a provision regarding a requirement of this section, a potential
applicant may proceed to the next sequential requirement of this section
without waiting for the resource agency or Indian tribe to comply.
(3) The failure of a resource agency or Indian tribe to timely comply
with a provision regarding a requirement of this section does not
preclude its participation in subsequent stages of the consultation
process.
(f) Application requirements documenting consultation and any
disagreements with resource agencies. An applicant must show in Exhibit
E of its application that it has met the requirements of paragraphs (b)
through (d) and paragraphs (g) and (h) of this section, and must include
a summary of the consultation process and:
(1) Any resource agency's or Indian tribe's letters containing
comments, recommendations, and proposed terms and conditions;
(2) Any letters from the public containing comments and
recommendations;
(3) Notice of any remaining disagreement with a resource agency or
Indian tribe on:
(i) The need for a study or the manner in which a study should be
conducted and the applicant's reasons for disagreement, and
(ii) Information on any environmental protection, mitigation, or
enhancement measure, including the basis for the applicant's
disagreement with the resource agency or Indian tribe;
(4) Evidence of any waivers under paragraph (e) of this section;
(5) Evidence of all attempts to consult with a resource agency or
Indian tribe, copies of related documents showing the attempts, and
documents showing the conclusion of the second stage of consultation;
(6) An explanation of how and why the project would, would not, or
should not, comply with any relevant comprehensive plan as defined in
2.l9 of this chapter and a description of any relevant resource agency
or Indian tribe determination regarding the consistency of the project
with any such comprehensive plan;
(7)(i) With regard to certification requirements for a license
applicant under section 401(a)(1) of the Federal Water Pollution Control
Act (Clean Water Act):
(A) A copy of the water quality certification;
(B) A copy of the request for certification, including proof of the
date on which the certifying agency received the request; or
(C) Evidence of waiver of water quality certification as described in
paragraph (f)(7)(ii) of this section.
(ii) A certifying agency is deemed to have waived the certification
requirements of section 401(a)(1) of the Clean Water Act if the
certifying agency has not denied or granted certification by one year
after the date the certifying agency received a written request for
certification. If a certifying agency denies certification, the
applicant must file a copy of the denial within 30 days after the
applicant received it.
(iii) Notwithstanding any other provision in title 18, chapter I,
subpart B, any application to amend an existing license, and any
amendment to a pending application for a license, requires a new request
for water quality certification pursuant to paragraph (f)(7)(i) of this
section if the amendment would have a material adverse impact on the
water quality in the discharge from the project or proposed project.
(8) A description of how the applicant's proposal addresses the
significant resource issues raised at the joint meeting held pursuant to
paragraph (b)(2) of this section; and
(9) A list containing the name and address of every federal, state,
and interstate resource agency and Indian tribe with which the applicant
consulted pursuant to paragraph (a)(1) of this section.
(g) Public participation. (1) At least 14 days in advance of the
joint meeting held pursuant to paragraph (b)(2) of this section, the
potential applicant must publish notice, at least once, of the purpose,
location, and timing of the joint meeting, in a daily or weekly
newspaper published in each county in which the proposed project or any
part thereof is situated. The notice shall include a summary of the
major issues to be discussed at the joint meeting.
(2)(i) A potential applicant must make available to the public for
inspection and reproduction the information specified in paragraph
(b)(1) of this section from the date on which the notice required by
paragraph (g)(1) of this section is first published until the date of
the joint meeting required by paragraph (b)(2) of this section.
(ii) The provisions of 4.32(b) will govern the form and manner in
which the information is to be made available for public inspection and
reproduction.
(iii) A potential applicant must make available to the public for
inspection at the joint meeting required by paragraph (b)(2) of this
section at least two copies of the information specified in paragraph
(b)(1) of this section.
(h) Transition provisions. (1) The provisions of this section are
not applicable to applications filed before June 19, 1991.
(2) The provisions of paragraphs (a) and (b) of this section are not
applicable to potential applicants that complied with the provisions of
paragraphs (a) and (b)(1) of this section prior to June 19, 1991.
(3) The provisions of paragraph (c) of this section are not
applicable to potential applicants that complied with the provisions of
paragraph (b)(2) of this section prior to June 19, 1991.
(4)(i) Any applicant that files its application on or after June 19,
1991, and that complied with the provisions of paragraphs (a) and (b)(1)
of this section prior to June 19, 1991, must hold a public meeting,
within 90 days from June 19, 1991, at or near the site of the proposed
project, to generally explain the potential applicant's proposal for the
site and to obtain the views of the public regarding resource issues
that should be addressed in any application for license or exemption
that may be filed by the potential applicant. The public meeting must
include both day and evening sessions, and the potential applicant must
make either audio recordings or written transcripts of both sessions.
(ii)(A) At least 15 days in advance of the meeting, the potential
applicant must provide all affected resource agencies, Indian tribes,
and the Commission with written notice of the time and place of the
meeting and a written agenda of the issues to be discussed at the
meeting.
(B) At least 14 days in advance of the meeting, the potential
applicant must publish notice, at least once, of the purpose, location,
and timing of the meeting, in a daily or weekly newspaper published in
each county in which the proposed project or any part thereof is
situated.
(iii)(A) A potential applicant must make available to the public for
inspection and reproduction information comparable to that specified in
paragraph (b)(1) of this section from the date on which the notice
required by paragraph (h)(4)(ii) of this section is first published
until the date of the public meeting required by paragraph (h)(4)(i) of
this section.
(B) The provisions of 4.32(b) will govern the form and manner in
which the information is to be made available for public inspection and
reproduction.
(C) A potential applicant must make available to the public for
inspection at both sessions of the public meeting required by paragraph
(h)(4)(i) of this section at least two copies of the information
specified in paragraph (h)(4)(iii)(A) of this section.
(D) A potential applicant must promptly provide copies of the audio
recordings or written transcripts of the sessions of the public meeting
to the Commission and, upon request, to any resource agency or Indian
tribe consulted.
(iv) Any applicant holding a public meeting pursuant to paragraph
(h)(4)(i) of this section must include in its filed application a
description of how the applicant's proposal addresses the significant
resource issues raised during the public meeting.
(Order 533, 56 FR 23153, May 20, 1991, as amended at 56 FR 61155,
Dec. 2, 1991)
18 CFR 4.39 Specifications for maps and drawings.
All required maps and drawings must conform to the following
specifications, except as otherwise prescribed in this chapter:
(a) Each original map or drawing must consist of a print on silver or
gelatin 35mm microfilm mounted on Type D (3 1/4'' by 7 3/8'') aperture
cards. Two duplicates must be made of each original. Full-sized prints
of maps and drawings must be on sheets no smaller than 24 by 36 inches
and no larger than 28 by 40 inches. A space five inches high by seven
inches wide must be provided in the lower right corner of each sheet.
The upper half of this space must bear the title, numerical and
graphical scale, and other pertinent information concerning the map or
drawing. The lower half of the space must be left clear. If the
drawing size specified in this paragraph limits the scale of drawings
described in paragraph (c) of this section, a smaller scale may be used
for those drawings.
(b) Each map must have a scale in full-sized prints no smaller than
one inch equals 0.5 miles for transmission lines, roads, and similar
linear features and no smaller than one inch equals 1,000 feet for other
project features. Where maps at these scales do not show sufficient
detail, larger scale maps may be required under 4.31(f). Each map must
show:
(1) True and magnetic meridians;
(2) State, county, and town lines; and
(3) Boundaries of public lands and reservations of the United States
(see 16 U.S.C. 796 (1) and (2)), if any. If a public land survey is
available, the maps must show all lines of that survey crossing the
project area and all official subdivisions of sections for the public
lands and reservations, including lots and irregular tracts, as
designated on the official plats of survey that may be obtained from the
Bureau of Land Management, Washington, DC, or examined in the local land
survey office; to the extent that a public land survey is not available
for public lands and reservations of the United States, the maps must
show the protractions of townships and section lines, which, if
possible, must be those recognized by the Federal agency administering
those lands.
(c) Drawings depicting details of project structures must have a
scale in full-sized prints no smaller than:
(1) One inch equals 50 feet for plans, elevations, and profiles; and
(2) One inch equals 10 feet for sections.
(d) Each map or drawing must be drawn and lettered to be legible when
it is reduced to a print that is 11 inches on its shorter side.
Following notification to the applicant that the application has been
accepted for filing (see 4.31(c)), prints reduced to that size must be
bound in each copy of the application which is required to be submitted
to the Commission or provided to any person, agency, or other entity.
(Order 54, 44 FR 61334, Oct. 25, 1979. Redesignated by Order 413, 50
FR 11678, Mar. 25, 1985)
18 CFR 4.39 Subpart E -- Application for License for Major Unconstructed Project and Major Modified Project
18 CFR 4.40 Applicability.
(a) Applicability. The provisions of this subpart apply to any
application for an initial license for a major unconstructed project
that would have a total installed capacity of more than 5 megawatts, and
any application for an initial or new license for a major modified
project with a total installed capacity more than 5 megawatts. An
applicant for license for any major unconstructed or major modified
water power project that would have a total installed generating
capacity of 5 megawatts or less must submit application under subpart G
( 4.60 and 4.61).
(b) Guidance from Commission staff. A prospective applicant for a
license for a major unconstructed project or major modified project may
seek advice from the Commission's Division of Hydropower Licensing
regarding the applicability of this subpart to its project (see
4.32(h)), including the determinations whether any proposed repair,
modification or reconstruction of an existing dam would result in a
significant change in the normal maximum surface elevation of an
existing impoundment, or whether any proposed change in existing project
works or operation would result in a significant environmental impact.
(Order 184, 46 FR 55936, Nov. 13, 1981, as amended by Order 413, 50
FR 11683, Mar. 25, 1985; Order 499, 53 FR 27002, July 18, 1988)
18 CFR 4.41 Contents of application.
Any application under this subpart must contain the following
information in the form prescribed:
(a) Initial statement.
(1) (Name of applicant) applies to the Federal Energy Regulatory
Commission for a (license or new license, as appropriate) for the (name
of project) water power project, as described in the attached exhibits.
(Specify any previous FERC project number designation.)
(2) The location of the proposed project is:
State or territory:
County:
Township or nearby town:
Stream or other body of water:
(3) The exact name, business address, and telephone number of the
applicant are:
-- --
(4) The applicant is a (citizen of the United States, association of
citizens of the United States, domestic corporation, municipality, or
State, as appropriate) and (is/is not) claiming preference under section
7(a) of the Federal Power Act. See 16 U.S.C. 796.
(5)(i) The statutory or regulatory requirements of the state(s) in
which the project would be located and that affect the project as
proposed with respect to bed and banks and to the appropriation,
diversion, and use of water for power purposes, and with respect to the
right to engage in the business of developing, transmitting, and
distributing power and in any other business necessary to accomplish the
purposes of the license under the Federal Power Act, are: (provide
citation and brief identification of the nature of each requirement; if
the applicant is a municipality, the applicant must submit copies of
applicable state or local laws or a municipal charter or, if such laws
or documents are not clear, any other appropriate legal authority,
evidencing that the municipality is competent under such laws to engage
in the business of developing, transmitting, utilizing, or distributing
power.)
(ii) The steps which the applicant has taken, or plans to take, to
comply with each of the laws cited above are: (provide brief
description for each requirement)
(b) Exhibit A is a description of the project. If the project
includes more than one dam with associated facilities, each dam and the
associated component parts must be described together as a discrete
development. The description for each development must contain:
(1) The physical composition, dimensions, and general configuration
of any dams, spillways, penstocks, powerhouses, tailraces or other
structures proposed to be included as part of the project;
(2) The normal maximum water surface area and normal maximum water
surface elevation (mean sea level), gross storage capacity of any
impoundments to be included as part of the project;
(3) The number, type and rated capacity of any proposed turbines or
generators to be included as part of the project;
(4) The number, length, voltage and interconnections of any primary
transmission lines proposed to be included a part of the project (See 16
U.S.C. 796(11));
(5) The description of any additional mechanical, electrical, and
transmission equipment appurtenant to the project; and
(6) All lands of the United States, including lands patented subject
to the provisions of section 24 of the Act, 16 U.S.C. 818, that are
enclosed within the project boundary described under paragraph (h) of
this section (Exhibit G), identified and tabulated by legal subdivisions
of a public land survey, by the best available legal description. The
tabulation must show the total acreage of the lands of the United States
within the project boundary.
(c) Exhibit B is a statement of project operation and resource
utilization. If the project includes more than one dam with associated
facilities, the information must be provided separately for each
discrete development. The exhibit must contain:
(1) A description of each alternative site considered in selecting of
the proposed site;
(2) A description of any alternative facility designs, processes, and
operations that were considered.
(3) A statement as to whether operation of the power plant will be
manual or automatic, an estimate of the annual plant factor, and a
statement of how the project will be operated during adverse, mean, and
high water years;
(4) An estimate of the dependable capacity and average annual energy
production in kilowatt-hours (or mechanical equivalent), supported by
the following data:
(i) The minimum, mean, and maximum recorded flows in cubic feet per
second of the stream or other body of water at the powerplant intake or
point of diversion, with a specification of any adjustment made for
evaporation, leakage minimum flow releases (including duration of
releases) or other reductions in available flow; a flow duration curve
indicating the period of record and the gauging stations used in
deriving the curve; and a specification of the critical streamflow used
to determine the dependable capacity;
(ii) An area-capacity curve showing the gross storage capacity and
usable storage capacity of the impoundment, with a rule curve showing
the proposed operation of the impoundment and how the usable storage
capacity is to be utilized;
(iii) The estimated hydraulic capacity of the powerplant in terms of
flow and efficiency (cubic feet per second at one-half, full and best
gate), and the corresponding generator output in kilowatts;
(iv) A tailwater rating curve; and
(v) A curve showing powerplant capability versus head and specifying
maximum, normal, and minimum heads;
(5) A statement of system and regional power needs and the manner in
which the power generated at the project is to be utilized, including
the amount of power to be used on-site, if any, supported by the
following data:
(i) Load curves and tabular data, if appropriate;
(ii) Details of conservation and rate design programs and their
historic and projected impacts on system loads; and
(iii) The amount of power to be sold and the identity of proposed
purchaser(s); and
(6) A statement of the applicant's plans for future development of
the project or of any other existing or proposed water power project on
the affected stream or other body of water, indicating the approximate
location and estimated installed capacity of the proposed developments.
(d) Exhibit C is a proposed construction schedule for the project.
The information required may be supplemented with a bar chart. The
construction schedule must contain:
(1) The proposed commencement and completion dates of any new
construction, modification, or repair of major project works;
(2) The proposed commencement date of first commercial operation of
each new major facility and generating unit; and
(3) If any portion of the proposed project consists of previously
constructed, unlicensed water power structures or facilities, a
chronology of original completion dates of those structures or
facilities specifying dates (approximate dates must be identified as
such) of:
(i) Commencement and completion of construction or installation;
(ii) Commencement of first commercial operation; and
(iii) Any additions or modifications other than routine maintenance.
(e) Exhibit D is a statement of project costs and financing. The
exhibit must contain:
(1) A statement of estimated costs of any new construction,
modification, or repair, including:
(i) The cost of any land or water rights necessary to the
development;
(ii) The total cost of all major project works;
(iii) Indirect construction costs such as costs of construction
equipment, camps, and commissaries;
(iv) Interest during construction; and
(v) Overhead, construction, legal expenses, and contingencies;
(2) If any portion of the proposed project consists of previously
constructed, unlicensed water power structures or facilities, a
statement of the original cost of those structures or facilities
specifying for each, to the extent possible, the actual or approximate
total costs (approximate costs must be identified as such) of:
(i) Any land or water rights necessary to the existing project works;
(ii) All major project works; and
(iii) Any additions or modifications other than routine maintenance;
(3) If the applicant is a licensee applying for a new license, and is
not a municipality or a state, an estimate of the amount which would be
payable if the project were to be taken over pursuant to section 14 of
the Federal Power Act, 16 U.S.C. 807, upon expiration of the license in
effect including:
(i) Fair value;
(ii) Net investment; and
(iii) Severance damages;
(4) A statement of the estimated average annual cost of the total
project as proposed, specifying any projected changes in the costs
(life-cycle costs) over the estimated financing or licensing period if
the applicant takes such changes into account, including:
(i) Cost of capital (equity and debt);
(ii) Local, state, and Federal taxes;
(iii) Depreciation or amortization, and
(iv) Operation and maintenance expenses, including interim
replacements, insurance, administrative and general expenses, and
contingencies;
(5) A statement of the estimated annual value of project power based
on a showing of the contract price for sale of power or the estimated
average annual cost of obtaining an equivalent amount of power (capacity
and energy) from the lowest cost alternative source of power, specifying
any projected changes in the costs (life-cycle costs) of power from that
source over the estimated financing or licensing period if the applicant
takes such changes into account;
(6) A statement describing other electric energy alternatives, such
as gas, oil, coal and nuclear-fueled powerplants and other conventional
and pumped storage hydroelectric plants;
(7) A statement and evaluation of the consequences of denial of the
license application and a brief perspective of what future use would be
made of the proposed site if the proposed project were not constructed;
and
(8) A statement specifying the sources and extent of financing and
annual revenues available to the applicant to meet the costs identified
in paragraphs (e) (1) and (4) of this section.
(f) Exhibit E is an Environmental Report. Information provided in
the report must be organized and referenced according to the itemized
subparagraphs below. See 4.38 for consultation requirements. The
Environmental Report must contain the following information,
commensurate with the scope of the project:
(1) General description of the locale. The applicant must provide a
general description of the environment of the proposed project area and
its immediate vicinity. The description must include location and
general information helpful to an understanding of the environmental
setting.
(2) Report on water use and quality. The report must discuss water
quality and flows and contain baseline data sufficient to determine the
normal and seasonal variability, the impacts expected during
construction and operation, and any mitigative, enhancement, and
protective measures proposed by the applicant. The report must be
prepared in consultation with the state and Federal agencies with
responsibility for management of water quality and quantity in the
affected stream or other body of water. The report must include:
(i) A description of existing instream flow uses of streams in the
project area that would be affected by construction and operation;
estimated quantities of water discharged from the proposed project for
power production; and any existing and proposed uses of project waters
for irrigation, domestic water supply, industrial and other purposes;
(ii) A description of the seasonal variation of existing water
quality for any stream, lake, or reservoir that would be affected by the
proposed project, including (as appropriate) measurements of:
significant ions, chlorophyll a, nutrients, specific conductance, pH,
total dissolved solids, total alkalinity, total hardness, dissolved
oxygen, bacteria, temperature, suspended sediments, turbidity and
vertical illumination;
(iii) A description of any existing lake or reservoir and any of the
proposed project reservoirs including surface area, volume, maximum
depth, mean depth, flushing rate, shoreline length, substrate
classification, and gradient for streams directly affected by the
proposed project;
(iv) A quantification of the anticipated impacts of the proposed
construction and operation of project facilities on water quality and
downstream flows, such as temperature, turbidity and nutrients;
(v) A description of measures recommended by Federal and state
agencies and the applicant for the purpose of protecting or improving
water quality and stream flows during project construction and
operation; an explanation of why the applicant has rejected any
measures recommended by an agency; and a description of the applicant's
alternative measures to protect or improve water quality stream flow;
(vi) A description of groundwater in the vicinity of the proposed
project, including water table and artesian conditions, the hydraulic
gradient, the degree to which groundwater and surface water are
hydraulically connected, aquifers and their use as water supply, and the
location of springs, wells, artesian flows and disappearing streams; a
description of anticipated impacts on groundwater and measures proposed
by the applicant and others for the mitigation of impacts on
groundwater; and
(3) Report on fish, wildlife, and botanical resources. The applicant
must provide a report that describes the fish, wildlife, and botanical
resources in the vicinity of the proposed project; expected impacts of
the project on these resources; and mitigation, enhancement, or
protection measures proposed by the applicant. The report must be
prepared in consultation with the state agency or agencies with
responsibility for these resources, the U.S. Fish and Wildlife Service,
the National Marine Fisheries Service (if the proposed project may
affect anadromous, estuarine, or marine fish resources), and any state
or Federal agency with managerial authority over any part of the
proposed project lands. The report must contain:
(i) A description of existing fish, wildlife, and plant communities
of the proposed project area and its vicinity, including any downstream
areas that may be affected by the proposed project and the area within
the transmission line corridor or right-of-way. A map of vegetation
types should be included in the description. For species considered
important because of their commercial or recreational value, the
information provided should include temporal and spatial distributions
and densities of such species. Any fish, wildlife, or plant species
proposed or listed as threatened or endangered by the U.S. Fish and
Wildlife Service or National Marine Fisheries Service (see 50 CFR 17.11
and 17.12) must be identified;
(ii) A description of the anticipated impacts on fish, wildlife and
botanical resources of the proposed construction and operation of
project facilities, including possible changes in size, distribution,
and reproduction of essential population of these resources and any
impacts on human utilization of these resources;
(iii) A description of any measures or facilities recommended by
state or Federal agencies for the mitigation of impacts on fish,
wildlife, and botanical resources, or for the protection or enhancement
of these resources, the impact on threatened or endangered species, and
an explanation of why the applicant has determined any measures or
facilities recommended by an agency are inappropriate as well as a
description of alternative measures proposed by applicant to protect
fish, wildlife and botanical resources; and
(iv) The following materials and information regarding any mitigation
measures or facilities, identified under clause (iii), proposed for
implementation or construction:
(A) Functional design drawings;
(B) A description of proposed operation and maintenance procedures
for any proposed measures or facilities;
(C) An implementation, construction and operation schedule for any
proposed measures or facilities;
(D) An estimate of the costs of construction, operation, and
maintenance of any proposed facilities or implementation of any
measures;
(E) A statement of the sources and amount of financing for mitigation
measures or facilities; and
(F) A map or drawing showing, by the use of shading, crosshatching or
other symbols, the identity and location of any proposed measures or
facilities.
(4) Report on historic and archaeological resources. The applicant
must provide a report that discusses any historical and archaeological
resources in the proposed project area, the impact of the proposed
project on those resources and the avoidance, mitigation, and protection
measures proposed by the applicant. The report must be prepared in
consultation with the State Historic Preservation Officer (SHPO) and the
National Park Service of the U.S. Department of Interior. The report
must contain:
(i) A description of any discovery measures, such as surveys,
inventories, and limited subsurface testing work, recommended by the
specified state and Federal agencies for the purpose of locating,
identifying, and assessing the significance of historic and
archaeological resources that would be affected by construction and
operation of the proposed project, together with a statement of the
applicant's position regarding the acceptability of the recommendations;
(ii) The results of surveys, inventories, and subsurface testing work
recommended by the state and Federal agencies listed above, together
with an explanation by the applicant of any variations from the survey,
inventory, or testing procedures recommended;
(iii) An identification (without providing specific site or property
locations) of any historic or archaeological site in the proposed
project area, with particular emphasis on sites or properties either
listed in, or recommended by the SHPO for inclusion in, the National
Register of Historic Places that would be affected by the construction
of the proposed project;
(iv) A description of the likely direct and indirect impacts of
proposed project construction or operation on sites or properties either
listed in, or recommended as eligible for, the National Register of
Historic Places;
(v) A management plan for the avoidance of, or mitigation of, impacts
on historic or archaeological sites and resources based upon the
recommendations of the state and Federal agencies listed above and
containing the applicant's explanation of variations from those
recommendations; and
(vi) The following materials and information regarding the mitigation
measures described under paragraph (f)(4)(v) of this section:
(A) A schedule for implementing the mitigation proposals;
(B) An estimate of the cost of the measures; and
(C) A statement of the sources and extent of financing.
(vii) The applicant must provide five copies (rather than the
fourteen copies required under 4.32(b)(1) of the Commission's
regulations) of any survey, inventory, or subsurface testing reports
containing specific site and property information, and including maps
and photographs showing the location and any required alteration of
historic and archaeological resources in relation to proposed project
facilities.
(5) Report on socio-economic impacts. The applicant must provide a
report which identifies and quantifies the impacts of constructing and
operating the proposed project on employment, population, housing,
personal income, local governmental services, local tax revenues and
other factors within the towns and counties in the vicinity of the
proposed project. The report must include:
(i) A description of the socio-economic impact area;
(ii) A description of employment, population and personal income
trends in the impact area;
(iii) An evaluation of the impact of any substantial in-migration of
people on the impact area's governmental facilities and services, such
as police, fire, health and educational facilities and programs;
(iv) On-site manpower requirements and payroll during and after
project construction, including a projection of total on-site employment
and construction payroll provided by month;
(v) Numbers of project construction personnel who:
(A) Currently reside within the impact area;
(B) Would commute daily to the construction site from places situated
outside the impact area; and
(C) Would relocate on a temporary basis within the impact area;
(vi) A determination of whether the existing supply of available
housing within the impact area is sufficient to meet the needs of the
additional population;
(vii) Numbers and types of residences and business establishments
that would be displaced by the proposed project, procedures to be
utilized to acquire these properties, and types and amounts of
relocation assistance payments that would be paid to the affected
property owners and businesses; and
(viii) A fiscal impact analysis evaluating the incremental local
government expenditures in relation to the incremental local government
revenues that would result from the construction of the proposed
project. Incremental expenditures may include, but are not be limited
to, school operating costs, road maintenance and repair, public safety,
and public utility costs.
(6) Report on geological and soil resources. The applicant must
provide a report on the geological and soil resources in the proposed
project area and other lands that would be directly or indirectly
affected by the proposed action and the impacts of the proposed project
on those resources. The information required may be supplemented with
maps showing the location and description of conditions. The report
must contain:
(i) A detailed description of geological features, including bedrock
lithology, stratigraphy, structural features, glacial features,
unconsolidated deposits, and mineral resources;
(ii) A detailed description of the soils, including the types,
occurrence, physical and chemical characteristics, erodability and
potential for mass soil movement;
(iii) A description showing the location of existing and potential
geological and soil hazards and problems, including earthquakes, faults,
seepage, subsidence, solution cavities, active and abandoned mines,
erosion, and mass soil movement, and an identification of any large
landslides or potentially unstable soil masses which could be aggravated
by reservior fluctuation;
(iv) A description of the anticipated erosion, mass soil movement and
other impacts on the geological and soil resources due to construction
and operation of the proposed project; and
(v) A description of any proposed measures of facilities for the
mitigtion of impacts on soils.
(7) Report on recreational resources. The applicant must prepare a
report containing a proposed recreation plan describing utilization,
design and development of project recreational facilities, and public
access to the project area. Development of the plan should include
consideration of the needs of the physically handicapped. Public and
private recreational facilities provided by others that would abut the
project should be noted in the report. The report must be prepared in
consultation with appropriate local, regional, state and Federal
recreation agencies and planning commissions, the National Park Service
of the U.S. Department of the Interior, and any other state or Federal
agency with managerial responsibility for any part of the project lands.
The report must contain:
(i) A description of any areas within or in the vicinity of the
proposed project boundary that are included in, or have been designated
for study for inclusion in:
(A) The National Wild and Scenic Rivers Systems (see 16 U.S.C.
1271);
(B) The National Trails System (see 16 U.S.C. 1241); or
(C) A wilderness area designated under the Wilderness Act (see 16
U.S.C. 1132);
(ii) A detailed description of existing recreational facilities
within the project vicinity, and the public recreational facilities
which are to be provided by the applicant at its sole cost or in
cooperation with others no later than 3 years from the date of first
commercial opertion of the proposed project and those recreation
facilities planned for future development based on anticipated demand.
When public recreation facilities are to be provided by other entities,
the applicant and those entities should enter into an agreement on the
type of facilities to be provided and the method of operation. Copies
of agreements with cooperating entities are to be appended to the plan;
(iii) A provision for a shoreline buffer zone that must be within the
project boundary, above the normal maximum surface elevation of the
project reservoir, and of sufficient width to allow public access to
project lands and waters and to protect the scenic, public recreational,
cultural, and other environmental values of the reseroir shoreline;
(iv) Estimates of existing and future recreational use at the
project, in daytime and overnight visitation (recreation days), with a
description of the methodology used in developing these data;
(v) A development schedule and cost estimates of the construction,
operation, and maintenance of existing, initial, and future public
recreational facilities, including a statement of the source and extent
of financing for such facilities;
(vi) A description of any measures or facilities recommended by the
agencies consulted for the purpose of creating, preserving, or enhancing
recreational opportunities at the proposed project, and for the purpose
of ensuring the safety of the public in its use of project lands and
waters, including an explanation of why the applicant has rejected any
measures or facilities recommended by an agency; and
(vii) A drawing or drawings, one of which describes the entire
project area, clearly showing:
(A) The location of project lands, and the types and number of
existing recreational facilities and those proposed for initial
development, including access roads and trails, and facilities for
camping, picnicking, swimming, boat docking and launching, fishing and
hunting, as well as provisions for sanitation and waste disposal;
(B) The location of project lands, and the type and number of
recreational facilities planned for future development;
(C) The location of all project lands reserved for recreational uses
other than those included in paragraphs (f)(7)(vii) (A) and (B) of this
section; and
(D) The project boundary (excluding surveying details) of all areas
designated for recreational development, sufficiently referenced to the
appropriate Exhibit G drawings to show that all lands reserved for
existing and future public recreational development and the shoreline
buffer zone are included within the project boundary. Recreational
cottages, mobile homes and year-round residences for private use are not
to be considered as public recreational facilities, and the lands on
which these private facilities are to be developed are not to be
included within the proposed project boundary.
(8) Report on aesthetic resources. The applicant must provide a
report that describes the aesthetic resources of the proposed project
area, the expected impacts of the project on these resources, and the
mitigation, enhancement or protection measures proposed. The report
must be prepared following consultation with Federal, state, and local
agencies having managerial responsibility for any part of the proposed
project lands or lands abutting those lands. The report must contain:
(i) A description of the aesthetic character of lands and waters
directly and indirectly affected by the proposed project facilities;
(ii) A description of the anticipated impacts on aesthetic resources
from construction activity and related equipment and material, and the
subsequent presence of proposed project facilities in the landscape;
(iii) A description of mitigative measures proposed by the applicant,
including architectural design, landscaping, and other reasonable
treatment to be given project works to preserve and enhance aesthetic
and related resources during construction and operation of proposed
project facilities; and
(iv) Maps, drawings and photographs sufficient to provide an
understanding of the information required under this paragraph. Maps or
drawings may be consolidated with other maps or drawings required in
this exhibit and must conform to the specifications of 4.39.
(9) Report on land use. The applicant must provide a report that
describes the existing uses of the proposed project lands and adjacent
property, and those land uses which would occur if the project is
constructed. The report may reference the discussions of land uses in
other sections of this exhibit. The report must be prepared following
consultation with local and state zoning or land management authorities,
and any Federal or state agency with managerial responsibility for the
proposed project or abutting lands. The report must include:
(i) A description of existing land use in the proposed project area,
including identification of wetlands, floodlands, prime or unique
farmland as designated by the Soil Conservation Service of the U.S.
Department of Agriculture, the Special Area Management Plan of the
Office of Coastal Zone Management, National Oceanic and Atmospheric
Administration, and lands owned or subject to control by government
agencies;
(ii) A description of the proposed land uses within and abutting the
project boundary that would occur as a result of development and
operation of the project; and
(iii) Aerial photographs, maps, drawings or other graphics sufficient
to show the location, extent and nature of the land uses referred to in
this section.
(10) Alternative locations, designs, and energy sources. The
applicant must provide an environment assessment of the following:
(i) Alternative sites considered in arriving at the selection of the
proposed project site;
(ii) Alternative facility designs, processes, and operations that
were considered and the reasons for their rejection;
(iii) Alternative electrical energy sources, such as gas, oil, coal,
and nuclear-fueled power plants, purchased power or diversity exchange,
and other conventional and pumped-storage hydroelectric plants; and
(iv) The overall consequences if the license application is denied.
(11) List of literature. Exhibit E must include a list of all
publications, reports, and other literature which were cited or
otherwise utilized in the preparation of any part of the environmental
report.
(g) Exhibit F consists of general design drawings of the principal
project works described under paragraph (b) of this section (Exhibit A)
and supporting information used as the basis of design. If the Exhibit
F submitted with the application is preliminary in nature, applicant
must so state in the application. The drawings must conform to the
specifications of 4.39.
(1) The drawings must show all major project structures in sufficient
detail to provide a full understanding of the project, including:
(i) Plans (overhead view);
(ii) Elevations (front view);
(iii) Profiles (side view); and
(iv) Sections.
(2) The applicant may submit preliminary design drawings with the
application. The final Exhibit F may be submitted during or after the
licensing process and must show the precise plans and specifications for
proposed structures. If the project is licensed on the basis of
preliminary designs, the applicant must submit a final Exhibit F for
Commission approval prior to commencement of any construction of the
project.
(3) Supporting design report. The applicant must furnish, at a
minimum, the following supporting information to demonstrate that
existing and proposed structures are safe and adequate to fulfill their
stated functions and must submit such information in a separate report
at the time the application is filed. The report must include:
(i) An assessment of the suitability of the site and the reservoir
rim stability based on geological and subsurface investigations,
including investigations of soils and rock borings and tests for the
evaluation of all foundations and construction materials sufficient to
determine the location and type of dam structure suitable for the site;
(ii) Copies of boring logs, geology reports and laboratory test
reports;
(iii) An identification of all borrow areas and quarry sites and an
estimate of required quantities of suitable construction material;
(iv) Stability and stress analyses for all major structures and
critical abutment slopes under all probable loading conditions,
including seismic and hydrostatic forces induced by water loads up to
the Probable Maximum Flood as appropriate; and
(v) The bases for determination of seismic loading and the Spillway
Design Flood in sufficient detail to permit independent staff
evaluation.
(4) The applicant must submit two copies of the supporting design
report described in paragraph (g)(3) of this section at the time
preliminary and final design drawings are submitted to the Commission
for review. If the report contains preliminary drawings, it must be
designated a ''Preliminary Supporting Design Report.''
(h) Exhibit G is a map of the project that must conform to the
specifications of 4.39. If more than one sheet is used, the sheets must
be numbered consecutively, and each sheet must bear a small insert
sketch showing the entire project and indicating that portion of the
project depicted on that sheet. If at any time after the application is
filed there is any change in the project boundary, the applicant must
submit, within a reasonable period following the completion of project
construction, a final Exhibit G showing the extent of such changes. The
map must show:
(1) Location of the project and principal features. The map must
show the location of the project as a whole with reference to the
affected stream or other body of water and, if possible, to a nearby
town or any other permanent monuments or objects, such as roads,
transmission lines or other structures, that can be noted on the map and
recognized in the field. The map must also show the relative locations
and physical interrelationships of the principal project works and other
features described under paragraph (b) of this section (Exhibit A).
(2) Project boundary. The map must show a project boundary enclosing
all project works and other features described under paragraph (b) of
this section (Exhibit A) that are to be licensed. If accurate survey
information is not available at the time the license application is
filed, the applicant must so state, and a tentative boundary may be
submitted. The boundary must enclose only those lands necessary for
operation and maintenance of the project and for other project purposes,
such as recreation, shoreline control, or protection of environmental
resources (see paragraph (f) of this section (Exhibit E)). Existing
residential, commercial, or other structures may be included within the
boundary only to the extent that underlying lands are needed for project
purposes (e.g., for flowage, public recreation, shoreline control, or
protection of environmental resources). If the boundary is on land
covered by a public survey, ties must be shown on the map at sufficient
points to permit accurate platting of the position of the boundary
relative to the lines of the public land survey. If the lands are not
covered by a public land survey, the best available legal description of
the position of the boundary must be provided, including distances and
directions from fixed monuments or physical features. The boundary must
be described as follows:
(i) Impoundments. (A) The boundary around a project impoundment must
be described by one of the following:
(1) Contour lines, including the contour elevation (preferred
method);
(2) Specified courses and distances (metes and bounds);
(3) If the project lands are covered by a public land survey, lines
upon or parallel to the lines of the survey; or
(4) Any combination of the above methods.
(B) The boundary must be located no more than 200 feet (horizontal
measurement) from the exterior margin of the reservoir, defined by the
normal maximum surface elevation, except where deviations may be
necessary in describing the boundary according to the above methods or
where additional lands are necessary for project purposes, such as
public recreation, shoreline control, or protection of environmental
resources.
(ii) Continuous features. The boundary around linear (continuous)
project features such as access roads, transmission lines, and conduits
may be described by specified distances from center lines or offset
lines of survey. The width of such corridors must not exceed 200 feet
unless good cause is shown for a greater width. Several sections of a
continuous feature may be shown on a single sheet with information
showing the sequence of contiguous sections.
(iii) Noncontinuous features. (A) The boundary around noncontinuous
project works such as dams, spillways, and powerhouses must be described
by one of the following:
(1) Contour lines;
(2) Specified courses and distances;
(3) If the project lands are covered by a public land survey, lines
upon or parallel to the lines of the survey; or
(4) Any combination of the above methods.
(B) The boundary must enclose only those lands that are necessary for
safe and efficient operation and maintenance of the project or for other
specified project purposes, such as public recreation or protection of
environmental resources.
(3) Federal lands. Any public lands and reservations of the United
States (Federal lands) (see 16 U.S.C. 796 (1) and (2)) that are within
the project boundary, such as lands administered by the U.S. Forest
Service, Bureau of Land Management, or National Park Service, or Indian
tribal lands, and the boundaries of those Federal lands, must be
identified as such on the map by:
(i) Legal subdivisions of a public land survey of the affected area
(a protraction of identified township and section lines is sufficient
for this purpose); and
(ii) The Federal agency, identified by symbol or legend, that
maintains or manages each identified subdivision of the public land
survey within the project boundary; or
(iii) In the absence of a public land survey, the location of the
Federal lands according to the distances and directions from fixed
monuments or physical features. When a Federal survey monument or a
Federal bench mark will be destroyed or rendered unusable by the
construction of project works, at least two permanent, marked witness
monuments or bench marks must be established at accessible points. The
maps show the location (and elevation, for bench marks) of the survey
monument or bench mark which will be destroyed or rendered unusable, as
well as of the witness monuments or bench marks. Connecting courses and
distances from the witness monuments or bench marks to the original must
also be shown.
(4) Non-Federal lands. For those lands within the project boundary
not identified under paragraph (h)(3) of this section, the map must
identify by legal subdivision:
(i) Lands owned in fee by the applicant and lands that the applicant
plans to acquire in fee; and
(ii) Lands over which the applicant has acquired or plans to acquire
rights to occupancy and use other than fee title, including rights
acquired to be required by easement or lease.
(Order 184, 46 FR 55936, Nov. 13, 1981; 48 FR 4459, Feb. 1, 1983, as
amended by Order 413, 50 FR 11684, Mar. 25, 1985; Order 464, 52 FR
5449, Feb. 23, 1987; Order 540, 57 FR 21737, May 22, 1992)
18 CFR 4.41 Subpart F -- Application for License for Major Project --
Existing Dam
Authority: Federal Power Act, as amended (16 U.S.C. 792-828c);
Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2601-2645);
Department of Energy Organization Act (42 U.S.C. 7101-7352); E.O.
12009, 42 FR 46267; Pub. L. 96-511, 94 Stat. 2812 (44 U.S.C. 3501 et
seq.).
18 CFR 4.50 Applicability.
(a) Applicability. (1) Except as provided in paragraph (a)(2) of
this section, the provisions of this subpart apply to any application
for either an initial license or new license for a major project --
existing dam that is proposed to have a total installed capacity of more
than 5 megawatts.
(2) This subpart does not apply to any major project -- existing dam
(see 4.40) that is proposed to entail or include:
(i) Any repair, modification or reconstruction of an existing dam
that would result in a significant change in the normal maximum surface
area or normal maximum surface elevation of an existing impoundment; or
(ii) Any new development or change in project operation that would
result in a significant environmental impact.
(3) An applicant for license for any major project -- existing dam
that would have a total installed capacity of 5 megawatts or less must
submit application under subpart G ( 4.60 and 4.61).
(b) Guidance from Commission staff. A prospective applicant for a
major license -- existing dam may seek advice from the Commission staff
regarding the applicability of these sections to its project (see
4.32(h)), including the determinations whether any proposed repair or
reconstruction of an existing dam would result in a significant change
in the normal maximum surface area or the normal maximum surface
elevation of an existing impoundment, or whether any proposed new
development or change in project operation would result in a significant
environmental impact.
(Order 59, 44 FR 67651, Nov. 27, 1979, as amended by Order 184, 46 FR
55942, Nov. 13, 1981; Order 413, 50 FR 11684, Mar. 25, 1985; Order
499, 53 FR 27002, July 18, 1988)
18 CFR 4.51 Contents of application.
An application for license under this subpart must contain the
following information in the form specified. As provided in paragraph
(f) of this section, the appropriate Federal, state, and local resource
agencies must be given the opportunity to comment on the proposed
project, prior to filing of the application for license for major
project -- existing dam. Information from the consultation process must
be included in this Exhibit E, as appropriate.
(a) Initial statement.
(1) (Name of applicant) applies to the Federal Energy Regulatory
Commission for a (license or new license, as appropriate) for the (name
of project) water power project, as described in the attached exhibits.
(Specify any previous FERC project number designation.)
(2) The location of the project is:
State or territory:
County:
Township or nearby town:
Stream or other body of water:
(3) The exact name and business address of the applicant are:
-- -- --
The exact name and business address of each person authorized to act
as agent for the applicant in this application are:
-- -- --
(4) The applicant is a (citizen of the United States, association of
citizens of the United States, domestic corporation, municipality, or
state, as appropriate) and (is/is not) claiming preference under section
7(a) of the Federal Power Act. See 16 U.S.C. 796.
(5)(i) The statutory or regulatory requirements of the state(s) in
which the project would be located that affect the project as proposed,
with respect to bed and banks and to the appropriation, diversion, and
use of water for power purposes, and with respect to the right to engage
in the business of developing, transmitting, and distributing power and
in any other business necessary to accomplish the purposes of the
license under the Federal Power Act, are: (Provide citation and brief
identification of the nature of each requirement; if the applicant is a
municipality, the applicant must submit copies of applicable state and
local laws or a municipal charter, or, if such laws or documents are not
clear, other appropriate legal authority, evidencing that the
municipality is competent under such laws to engage in the business of
developing, transmitting, utilizing, or distributing power.)
(ii) The steps which the applicant has taken or plans to take to
comply with each of the laws cited above are: (provide brief
description for each law).
(6) The applicant must provide the name and address of the owner of
any existing project facilities. If the dam is federally owned or
operated, provide the name of the agency.
(b) Exhibit A is a description of the project. This exhibit need not
include information on project works maintained and operated by the U.S.
Army Corps of Engineers, the Bureau of Reclamation, or any other
department or agency of the United States, except for any project works
that are proposed to be altered or modified. If the project includes
more than one dam with associated facilities, each dam and the
associated component parts must be described together as a discrete
development. The description for each development must contain:
(1) The physical composition, dimensions, and general configuration
of any dams, spillways, penstocks, powerhouses, tailraces, or other
structures, whether existing or proposed, to be included as part of the
project;
(2) The normal maximum surface area and normal maximum surface
elevation (mean sea level), gross storage capacity, and usable storage
capacity of any impoundments to be included as part of the project;
(3) The number, type, and rated capacity of any turbines or
generators, whether existing or proposed, to be included as part of the
project;
(4) The number, length, voltage, and interconnections of any primary
transmission lines, whether existing or proposed, to be included as part
of the project (see 16 U.S.C. 796(11));
(5) The specifications of any additional mechanical, electrical, and
transmission equipment appurtenant to the project; and
(6) All lands of the United States that are enclosed within the
project boundary described under paragraph (h) of this section (Exhibit
G), identified and tabulated by legal subdivisions of a public land
survey of the affected area or, in the absence of a public land survey,
by the best available legal description. The tabulation must show the
total acreage of the lands of the United States within the project
boundary.
(c) Exhibit B is a statement of project operation and resource
utilization. If the project includes more than one dam with associated
facilities, the information must be provided separately for each such
discrete development. The exhibit must contain:
(1) A statement whether operation of the powerplant will be manual or
automatic, an estimate of the annual plant factor, and a statement of
how the project will be operated during adverse, mean, and high water
years;
(2) An estimate of the dependable capacity and average annual energy
production in kilowatt-hours (or a mechanical equivalent), supported by
the following data:
(i) The minimum, mean, and maximum recorded flows in cubic feet per
second of the stream or other body of water at the powerplant intake or
point of diversion, with a specification of any adjustments made for
evaporation, leakage, minimum flow releases (including duration of
releases), or other reductions in available flow; a flow duration curve
indicating the period of record and the gauging stations used in
deriving the curve; and a specification of the period of critical
streamflow used to determine the dependable capacity;
(ii) An area-capacity curve showing the gross storage capacity and
usable storage capacity of the impoundment, with a rule curve showing
the proposed operation of the impoundment and how the usable storage
capacity is to be utilized;
(iii) The estimated hydraulic capacity of the powerplant (maximum
flow through the powerplant) in cubic feet per second;
(iv) A tailwater rating curve; and
(v) A curve showing powerplant capability versus head and specifying
maximum, normal, and minimum heads;
(3) A statement, with load curves and tabular data, if necessary, of
the manner in which the power generated at the project is to be
utilized, including the amount of power to be used on-site, if any, the
amount of power to be sold, and the identity of any proposed purchasers;
and
(4) A statement of the applicant's plans, if any, for future
development of the project or of any other existing or proposed water
power project on the stream or other body of water, indicating the
approximate location and estimated installed capacity of the proposed
developments.
(d) Exhibit C is a construction history and proposed construction
schedule for the project. The construction history and schedules must
contain:
(1) If the application is for an initial license, a tabulated
chronology of construction for the existing projects structures and
facilities described under paragraph (b) of this section (Exhibit A),
specifying for each structure or facility, to the extent possible, the
actual or approximate dates (approximate dates must be identified as
such) of:
(i) Commencement and completion of construction or installation;
(ii) Commencement of commercial operation; and
(iii) Any additions or modifications other than routine maintenance;
and
(2) If any new development is proposed, a proposed schedule
describing the necessary work and specifying the intervals following
issuance of a license when the work would be commenced and completed.
(e) Exhibit D is a statement of costs and financing. The statement
must contain:
(1) If the application is for an initial license, a tabulated
statement providing the actual or approximate original cost (approximate
costs must be identified as such) of:
(i) Any land or water right necessary to the existing project; and
(ii) Each existing structure and facility described under paragraph
(b) of this section (Exhibit A).
(2) If the applicant is a licensee applying for a new license, and is
not a municipality or a state, an estimate of the amount which would be
payable if the project were to be taken over pursuant to section 14 of
the Federal Power Act upon expiration of the license in effect (see 16
U.S.C. 807), including:
(i) Fair value;
(ii) Net investment; and
(iii) Severance damages.
(3) If the application includes proposals for any new development, a
statement of estimated costs, including:
(i) The cost of any land or water rights necessary to the new
development; and
(ii) The cost of the new development work, with a specification of:
(A) Total cost of each major item;
(B) Indirect construction costs such as costs of construction
equipment, camps, and commissaries;
(C) Interest during construction; and
(D) Overhead, construction, legal expenses, taxes, administrative and
general expenses, and contingencies.
(4) A statement of the estimated average annual cost of the total
project as proposed, specifying any projected changes in the costs over
the estimated financing or licensing period if the applicant takes such
changes into account, including:
(i) Cost of capital (equity and debt);
(ii) Local, state, and Federal taxes;
(iii) Depreciation or amortization, and
(iv) Operation and maintenance expenses, including interim
replacements, insurance, administrative and general expenses, and
contingencies.
(5) A statement of the estimated annual value of project power, based
on a showing of the contract price for sale of power or the estimated
average annual cost of obtaining an equivalent amount of power (capacity
and energy) from the lowest cost alternative source, specifying any
projected changes in the cost of power from that source over the
estimated financing or licensing period if the applicant takes such
changes into account.
(6) A statement specifying the sources and extent of financing and
annual revenues available to the applicant to meet the costs identified
in paragraphs (e) (3) and (4) of this section.
(f) Exhibit E is an Environmental Report. Information provided in
the report must be organized and referenced according to the itemized
subparagraphs below. See 4.38 for consultation requirements. The
Environmental Report must contain the following information,
commensurate with the scope of the proposed project:
(1) General description of the locale. The applicant must provide a
general description of the environment of the project and its immediate
vicinity. The description must include general information concerning
climate, topography, wetlands, vegetative cover, land development,
population size and density, the presence of any floodplain and the
occurrence of flood events in the vicinity of the project, and any other
factors important to an understanding of the setting.
(2) Report on water use and quality. The report must discuss the
consumptive use of project waters and the impact of the project on water
quality. The report must be prepared in consultation with the state and
Federal agencies with responsibility for management of water quality in
the affected stream or other body of water. Consultation must be
documented by appending to the report a letter from each agency
consulted that indicates the nature, extent, and results of the
consultation. The report must include:
(i) A description (including specified volume over time) of existing
and proposed uses of project waters for irrigation, domestic water
supply, steam-electric plant, industrial, and other consumptive
purposes;
(ii) A description of existing water quality in the project
impoundment and downstream water affected by the project and the
applicable water quality standards and stream segment classifications;
(iii) A description of any minimum flow releases specifying the rate
of flow in cubic feet per second (cfs) and duration, changes in the
design of project works or in project operation, or other measures
recommended by the agencies consulted for the purposes of protecting or
improving water quality, including measures to minimize the short-term
impacts on water quality of any proposed new development of project
works (for any dredging or filling, refer to 40 CFR part 230 and 33 CFR
320.3(f) and 323.3(e)) /1/ ;
(iv) A statement of the existing measures to be continued and new
measures proposed by the applicant for the purpose of protecting or
improving water quality, including an explanation of why the applicant
has rejected any measures recommended by an agency and described under
paragraph (f)(2)(iii) of this section.
(v) A description of the continuing impact on water quality of
continued operation of the project and the incremental impact of
proposed new development of project works or changes in project
operation; and
(3) Report on fish, wildlife, and botanical resources. The report
must discuss fish, wildlife, and botanical resources in the vicinity of
the project and the impact of the project on those resources. The
report must be prepared in consultation with any state agency with
responsibility for fish, wildlife, and botanical resources, the U.S.
Fish and Wildlife Service, the National Marine Fisheries Service (if the
project may affect anadromous fish resources subject to that agency's
jurisdiction), and any other state or Federal agency with managerial
authority over any part of the project lands. Consultation must be
documented by appending to the report a letter from each agency
consulted that indicates the nature, extent, and results of the
consultation. The report must include:
(i) A description of the fish, wildlife, and botanical resources of
the project and its vicinity, and of downstream areas affected by the
project, including identification of any species listed as threatened or
endangered by the U.S. Fish and Wildlife Service (See 50 CFR 17.11 and
17.12);
(ii) A description of any measures or facilities recommended by the
agencies consulted for the mitigation of impacts on fish, wildlife, and
botanical resources, or for the protection or improvement of those
resources;
(iii) A statement of any existing measures or facilities to be
continued or maintained and any measures or facilities proposed by the
applicant for the mitigation of impacts on fish, wildlife, and botanical
resources, or for the protection or improvement of such resources,
including an explanation of why the applicant has rejected any measures
or facilities recommended by an agency and described under paragraph
(f)(3)(ii) of this section.
(iv) A description of any anticipated continuing impact on fish,
wildlife, and botanical resources of continued operation of the project,
and the incremental impact of proposed new development of project works
or changes in project operation; and
(v) The following materials and information regarding the measures
and facilities identified under paragraph (f)(3)(iii) of this section:
(A) Functional design drawings of any fish passage and collection
facilities, indicating whether the facilities depicted are existing or
proposed (these drawings must conform to the specifications of 4.39
regarding dimensions of full-sized prints, scale, and legibility);
(B) A description of operation and maintenance procedures for any
existing or proposed measures or facilities;
(C) An implementation or construction schedule for any proposed
measures or facilities, showing the intervals following issuance of a
license when implementation of the measures or construction of the
facilities would be commenced and completed;
(D) An estimate of the costs of construction, operation, and
maintenance, of any proposed facilities, and of implementation of any
proposed measures, including a statement of the sources and extent of
financing; and
(E) A map or drawing that conforms to the size, scale, and legibility
requirements of 4.39 showing by the use of shading, cross-hatching, or
other symbols the identity and location of any measures or facilities,
and indicating whether each measure or facility is existing or proposed
(the map or drawings in this exhibit may be consolidated).
(4) Report on historical and archeological resources. The report
must discuss the historical and archeological resources in the project
area and the impact of the project on those resources. The report must
be prepared in consultation with the State Historic Preservation Officer
and the National Park Service. Consultation must be documented by
appending to the report a letter from each agency consulted that
indicates the nature, extent, and results of the consultation. The
report must contain:
(i) Identification of any sites either listed or determined to be
eligible for inclusion in the National Register of Historic Places that
are located in the project area, or that would be affected by operation
of the project or by new development of project facilities (including
facilities proposed in this exhibit);
(ii) A description of any measures recommended by the agencies
consulted for the purpose of locating, identifying, and salvaging
historical or archaeological resources that would be affected by
operation of the project, or by new development of project facilities
(including facilities proposed in this exhibit), together with a
statement of what measures the applicant proposes to implement and an
explanation of why the applicant rejects any measures recommended by an
agency.
(iii) The following materials and information regarding the survey
and salvage activities described under paragraph (f)(4)(ii) of this
section:
(A) A schedule for the activities, showing the intervals following
issuance of a license when the activities would be commenced and
completed; and
(B) An estimate of the costs of the activities, including a statement
of the sources and extent of financing.
(5) Report on recreational resources. The report must discuss
existing and proposed recreational facilities and opportunities at the
project. The report must be prepared in consultation with local, state,
and regional recreation agencies and planning commissions, the National
Park Service, and any other state or Federal agency with managerial
authority over any part of the project lands. Consultation must be
documented by appending to the report a letter from each agency
consulted indicating the nature, extent, and results of the
consultation. The report must contain:
(i) A description of any existing recreational facilities at the
project, indicating whether the facilities are available for public use;
(ii) An estimate of existing and potential recreational use of the
project area, in daytime and overnight visits;
(iii) A description of any measures or facilities recommended by the
agencies consulted for the purpose of creating, preserving, or enhancing
recreational opportunities at the project and in its vicinity (including
opportunities for the handicapped), and for the purpose of ensuring the
safety of the public in its use of project lands and waters;
(iv) A statement of the existing measures or facilities to be
continued or maintained and the new measures or facilities proposed by
the applicant for the purpose of creating, preserving, or enhancing
recreational opportunities at the project and in its vicinity, and for
the purpose of ensuring the safety of the public in its use of project
lands and waters, including an explanation of why the applicant has
rejected any measures or facilities recommended by an agency and
described under paragraph (f)(5)(iii) of this section; and
(v) The following materials and information regarding the measures
and facilities identified under paragraphs (f)(5) (i) and (iv) of this
section:
(A) Identification of the entities responsible for implementing,
constructing, operating, or maintaining any existing or proposed
measures or facilities;
(B) A schedule showing the intervals following issuance of a license
at which implementation of the measures or construction of the
facilities would be commenced and completed;
(C) An estimate of the costs of construction, operation, and
maintenance of any proposed facilities, including a statement of the
sources and extent of financing;
(D) A map or drawing that conforms to the size, scale, and legibility
requirements of 4.39 showing by the use of shading, cross-hatching, or
other symbols the identity and location of any facilities, and
indicating whether each facility is existing or proposed (the maps or
drawings in this exhibit may be consolidated); and
(vi) A description of any areas within or in the vicinity of the
proposed project boundary that are included in, or have been designated
for study for inclusion in, the National Wild and Scenic Rivers System,
or that have been designated as wilderness area, recommended for such
designation, or designated as a wilderness study area under the
Wilderness Act.
(6) Report on land management and aesthetics. The report must
discuss the management of land within the proposed project boundary,
including wetlands and floodplains, and the protection of the
recreational and scenic values of the project. The report must be
prepared following consultation with local and state zoning and land
management authorities and any Federal or state agency with managerial
authority over any part of the project lands. Consultation must be
documented by appending to the report a letter from each agency
consulted indicating the nature, extent, and results of the
consultation. The report must contain:
(i) A description of existing development and use of project lands
and all other lands abutting the project impoundment;
(ii) A description of the measures proposed by the applicant to
ensure that any proposed project works, rights-of-way, access roads, and
other topographic alterations blend, to the extent possible, with the
surrounding environment; (see, e.g., 44 F.P.C. 1496, et seq.);
(iii) A description of wetlands or floodplains within, or adjacent
to, the project boundary, any short-term or long-term impacts of the
project on those wetlands or floodplains, and any mitigative measures in
the construction or operation of the project that minimize any adverse
impacts on the wetlands or floodplains;
(iv) A statement, including an analysis of costs and other
constraints, of the applicant's ability to provide a buffer zone around
all or any part of the impoundment, for the purpose of ensuring public
access to project lands and waters and protecting the recreational and
aesthetic values of the impoundment and its shoreline;
(v) A description of the applicant's policy, if any, with regard to
permitting development of piers, docks, boat landings, bulkheads, and
other shoreline facilities on project lands and waters; and
(vi) Maps or drawings that conform to the size, scale and legibility
requirements of 4.39, or photographs, sufficient to show the location
and nature of the measures proposed under paragraph (f)(6)(ii) of this
section (maps or drawings in this exhibit may be consolidated).
(7) List of literature. The report must include a list of all
publications, reports, and other literature which were cited or
otherwise utilized in the preparation of any part of the environmental
report.
(g) Exhibit F consists of general design drawings of the principal
project works described under paragraph (b) of this section (Exhibit A)
and supporting information used to demonstrate that existing project
structures are safe and adequate to fulfill their stated functions.
(1) The drawings must show all major project structures in sufficient
detail to provide a full understanding of the project, including:
(i) Plans (overhead view);
(ii) Elevations (front view); and
(iii) Sections (side view).
(2) Supporting design report. The applicant must furnish, at a
minimum, the following supporting information to demonstrate that
existing structures are safe and adequate to fulfill their stated
functions, and must submit such infomation in a separate report at the
time the application is filed. The report must include:
(i) A description of the physical condition or state of maintenance
and repair of any existing and proposed structures or equipment; and
(ii) Information relating to composition and competency of
foundations and other structures, gradation of filter and riprap
material, design strength and ultimate strength of concrete and steel,
stress and stability analysis, spillway rating curves, water levels, and
other appropriate data.
(3) The applicant must submit two copies of the supporting design
report as described in paragraph (g)(2) of this section at the time
general design drawings are submitted to the Commission for review.
(h) Exhibit G is a map of the project. The map must conform to the
specifications of 4.39. If more than one sheet is used, the sheets must
be numbered consecutively and each sheet must bear a small inset sketch
showing the entire project (or development) and indicating the portion
depicted on the sheet. The map must show:
(1) Location of the project and principal features. The map must
show the location of the project as a whole with reference to the
affected stream or other body of water and, if possible, to a nearby
town or any permanent monuments or objects, such as roads, transmission
lines or other structures, that can be noted on the map and recognized
in the field. The map must also show the relative locations and
physical interrelationships of the principal project works and other
features described under paragraph (b) of this section (Exhibit A).
(2) Project boundary. The map must show a project boundary enclosing
all of the principal project works and other features described under
paragraph (b) of this section (Exhibit A) that are to be licensed. If
accurate survey information is not available at the time the license
application is filed, the applicant must so state, and a tentative
boundary may be submitted. The boundary must enclose only those lands
necessary for operation and maintenance of the project and for other
project purposes, such as recreation, shoreline control, or protection
of environmental resources (see paragraph (f) of this section (Exhibit
E)). Existing residential, commercial, or other structures may be
included within the boundary only to the extent that underlying lands
are needed for project purposes (e.g., for flowage, public recreation,
shoreline control, or protection of environmental resources). If the
boundary is on land covered by a public land survey, ties must be shown
on the map at sufficient points to permit accurate platting of the
position of the boundary relative to the lines of the public land
survey. If the lands are not covered by a public land survey, the best
available legal description of the position of the boundary must be
provided, including distances and directions from fixed monuments or
physical features. The boundary must be described as follows:
(i) Impoundments. (A) The boundary around a project impoundment may
be described by any of the following:
(1) Contour lines, including the contour elevation (preferred
method);
(2) Specified courses and distances (metes and bounds);
(3) If the project lands are covered by a public land survey, lines
upon or parallel to the lines of the survey; or
(4) Any combination of the above methods.
(B) The boundary must be located no more than 200 feet (horizontal
measurement) from the exterior margin of the reservoir, defined by the
normal maximum surface elevation, except where deviations may be
necessary in describing the boundary according to the above methods, or
where additional lands are necessary for project purposes, such as
public recreation, shoreline control, or protection of environmental
resources.
(ii) Continuous features. The boundary around linear (continuous)
project features such as access roads, transmission lines, and conduits
may be described by specified distances from center lines or offset
lines of survey. The width of such corridors must not exceed 200 feet,
unless good cause is shown for a greater width. Several sections of a
continuous feature may be shown on a single sheet, with information
showing the sequence of contiguous sections.
(iii) Noncontinuous features. (A) the boundary around noncontinuous
project works such as dams, spillways, and powerhouses may be described
by:
(1) Contour lines;
(2) Specified courses and distances;
(3) If the project lands are covered by a public land survey, lines
upon or parallel to the lines of the survey; or
(4) Any combination of the above methods.
(B) The boundary must enclose only those lands that are necessary for
safe and efficient operation and maintenance of the project, or for
other specified project purposes, such as public recreation or
protection of environmental resources.
(3) Federal lands. Any public lands and reservations of the United
States (see 16 U.S.C. 796(1) and (2)) (Federal lands) that are within
the project boundary, e.g., lands adminstered by the U.S. Forest
Service, Bureau of Land Management, National Park Service, or Indian
tribal lands, and the boundaries of those Federal lands, must be
identified on the map:
(i) By legal subdivisions of a public land survey of the affected
area (a protraction of identified township and section lines is
sufficient for this purpose);
(ii) By the Federal agency, identified by symbol or legend if
desired, that maintains or manages each identified subdivision of the
public land survey within the project boundary; and
(iii) In the absence of a public land survey, by the location of the
Federal lands according to the distances and directions from fixed
monuments or physical features. When a Federal survey monument or a
Federal bench mark will be destroyed or rendered unusable by the
construction of project works, at least two permanent, marked, witness
monuments or bench marks must be established at accessible points. The
maps must show the location (and elevation, for bench marks) of the
survey monument or bench mark which will be destroyed or rendered
unusable, as well as of the witness monuments or bench marks.
Connecting courses and distances from the witness monuments or bench
marks to the original must also be shown.
(4) Non-Federal lands. For those lands within the project boundary
not identified under paragraph (h)(3) of this section, the map must
identify by legal subdivision:
(i) Lands owned in fee by the applicant and lands that the applicant
plans to acquire in fee; and
(ii) Lands over which the applicant has acquired or plans to acquire
rights to occupancy and use other than fee title, including rights
acquired or to be required by easement or lease.
(Order 141, 12 FR 8485, Dec. 19, 1947, as amended by Order 123, 46 FR
9029, Jan. 28, 1981; Order 183, 46 FR 55251, Nov. 9, 1981; Order 184,
46 FR 55942, Nov. 13, 1981; Order 413, 50 FR 11684, Mar. 25, 1985;
Order 464, 52 FR 5449, Feb. 23, 1987; Order 540, 57 FR 21737, May 22,
1992)
/1/ 33 CFR part 323 was revised at 47 FR 31810, July 22, 1982, and
323.3(e) no longer exists.
18 CFR 4.51 Subpart G -- Application for License for Minor Water Power Projects and Major Water Power Projects 5 Megawatts or Less
18 CFR 4.60 Applicability and notice to agencies.
(a) Applicability. The provisions of this subpart apply to any
application for an initial license or a new license for:
(1) A minor water power project, as defined in 4.30(b)(17);
(2) Any major project -- existing dam, as defined in 4.30(b)(16),
that has a total installed capacity of 5 MW or less; or
(3) Any major unconstructed project or major modified project, as
defined in 4.30 (b) (15) and (14) respectively, that has a total
installed capacity of 5 MW or less.
(b) Notice to agencies. The Commission will supply interested
Federal, state, and local agencies with notice of any application for
license for a water power project 5 MW or less and request comment on
the application. Copies of the application will be available for
inspection at the Commission's Division of Public Information. The
applicant shall also furnish copies of the filed application to any
Federal, state, or local agency that so requests.
(c) Unless an applicant for a license for a minor water power project
requests in its application that the Commission apply the following
provisions of Part I of the Federal Power Act when it issues a minor
license for a project, the Commission, unless it determines it would not
be in the public interest to do so, will waive:
(1) Section 4(b), insofar as it requires a licensee to file a
statement showing the actual legitimate costs of construction of a
project;
(2) Section 4(e), insofar as it relates to approval by the Chief of
Engineers and the Secretary of the Army of plans affecting navigation;
(3) Section 6, insofar as it relates to the acceptance and expression
in the license of terms and conditions of the Federal Power Act that are
waived in the licensing order;
(4) Section 10(c), insofar as it relates to a licensee's maintenance
of depreciation reserves;
(5) Sections 10(d) and 10(f);
(6) Section 14, with the exception of the right of the United States
or any state or municipality to take over, maintain, and operate a
project through condemnation proceedings; and
(7) Sections 15, 16, 19, 20 and 22.
(Order 413, 50 FR 11685, Mar. 25, 1985, as amended by Order 513, 54
FR 23806, June 2, 1989)
18 CFR 4.61 Contents of application.
(a) General instructions. (1) Entry upon land. No work may be
started on any proposed project works until the applicant receives a
signed license from the Commission. Acceptance of an application does
not authorize entry upon public lands or reservations of the United
States for any purpose. The applicant should determine whether any
additional Federal, state, or local permits are required.
(2) Exhibits F and G must be submitted on separate drawings.
Drawings for Exhibits F and G must have identifying title blocks and
bear the following certification: ''This drawing is a part of the
application for license made by the undersigned this ------ day of
---------- , 19 ---- .''
(3) Each application for a license for a water power project 5
megawatts or less must include the information requested in the initial
statement and lettered exhibits described by paragraphs (b) through (f)
of this section, and must be provided in the form specified. The
Commission reserves the right to require additional information, or
another filing procedure, if data provided indicate such action to be
appropriate.
(b) Initial statement.
(1) ---------- (Name of Applicant) applies to the Federal Energy
Regulatory Commission for ---------- (license or new license, as
appropriate) for the ---------- (name of project) water power project,
as described hereinafter. (Specify any previous FERC project number
designation.)
(2) The location of the project is:
State or territory:
County:
Township or nearby town:
Stream or other body of water:
(3) The exact name, address, and telephone number of the applicant
are:
-- -- --
(4) The exact name, address, and telephone number of each person
authorized to act as agent for the applicant in this application, if
applicable, are:
-- -- --
(5) The applicant is a ------ (citizen of the United States,
association of citizens of the United States, domestic corporation,
municipality, or State, as appropriate) and (is/is not) claiming
perference under section 7(a) of the Federal Power Act. See 16 U.S.C.
796.
(6)(i) The statutory or regulatory requirements of the state(s) in
which the project would be located that affect the project as proposed
with respect to bed and banks and the appropriation, diversion, and use
of water for power purposes, and with respect to the right to engage in
the business of developing, transmitting, and distributing power and in
any other business necessary to accomplish the purposes of the license
under the Federal Power Act, are: (provide citation and brief
identification of the nature of each requirement; if the applicant is a
municipality, the applicant must submit copies of applicable state or
local laws or a municipal charter or, if such laws or documents are not
clear, any other appropriate legal authority, evidencing that the
municipality is competent under such laws to engage in the business of
developing, transmitting, utilizing, or distributing power.)
(ii) The steps which the applicant has taken or plans to take to
comply with each of the laws cited above are: (provide brief
description for each requirement)
(7) Brief project description
(i) Proposed installed generating capacity ------ MW.
(ii) Check appropriate box:
existing dam unconstructed dam existing dam, major modified
project (see 4.30(b)(14))
(8) Lands of the United States affected (shown on Exhibit G):
Surveyed land Unsurveyed land
(9) Construction of the project is planned to start within ----
months, and is planned to be completed within ---- months, from the date
of issuance of license.
(c) Exhibit A is a description of the project and the proposed mode
of operation.
(1) The exhibit must include, in tabular form if possible, as
appropriate:
(i) The number of generating units, including auxiliary units, the
capacity of each unit, and provisions, if any, for future units;
(ii) The type of hydraulic turbine(s);
(iii) A description of how the plant is to be operated, manual or
automatic, and whether the plant is to be used for peaking;
(iv) The estimated average annual generation in kilowatt-hours or
mechanical energy equivalent;
(v) The estimated average head on the plant;
(vi) The reservoir surface area in acres and, if known, the net and
gross storage capacity;
(vii) The estimated hydraulic capacity of the plant (flow through the
plant) in cubic feet per second and estimated average flow of the stream
or water body at the plant or point of diversion; for projects with
installed capacity of more than 1.5 megawatts, a flow duration curve and
a description of the drainage area for the project site must be
provided;
(viii) Sizes, capacities, and construction materials, as appropriate,
of pipelines, ditches, flumes, canals, intake facilities, powerhouses,
dams, transmission lines, and other appurtenances; and
(ix) The estimated cost of the project.
(2) State the purposes of project (for example, use of power output).
(d) Exhibit E is an Environmental Report.
(1) For major unconstructed and major modified projects 5 MW or less.
Any application must contain an Exhibit E conforming with the data and
consultation requirements of 4.41(f) of this chapter, if the
application is for license for a water power project which has or is
proposed to have a total installed generating capacity greater than 1.5
MW but not greater than 5 MW, and which:
(i) Would use the water power potential of a dam and impoundment
which, at the time of application, has not been constructed (see
4.30(b)(15)); or
(ii) Involves any repair, modification or reconstruction of an
existing dam that would result in a significant change in the normal
maximum surface area or elevation of an existing impoundment or involves
any change in existing project works or operations that would result in
a significant environmental impact (see 4.30(b)(14)).
(2) For minor projects and major projects at existing dams 5 MW or
less. An application for license for either a minor water power project
with a total proposed installed generating capacity of 1.5 MW or less or
a major project -- existing dam with a proposed total installed capacity
of 5 MW or less must contain an Exhibit E under this subparagraph. See
4.38 for consultation requirements. The Environmental Report must
contain the following information:
(i) A description, including any maps or photographs which the
applicant considers appropriate, of the environmental setting of the
project, including vegetative cover, fish and wildlife resources, water
quality and quantity, land and water uses, recreational uses, historical
and archeological resources, and scenic and aesthetic resources. The
report must include a discussion of endangered or threatened plant and
animal species, any critical habitats, and any sites included in, or
eligible for inclusion in, the National Register of Historic Places.
The applicant may obtain assistance in the preparation of this
information from state natural resources agencies, the state historic
preservation officer, and from local offices of Federal natural
resources agencies.
(ii) A description of the expected environmental impacts from
proposed construction or development and the proposed operation of the
power project, including any impacts from any proposed changes in the
capacity and mode of operation of the project if it is already
generating electric power, and an explanation of the specific measures
proposed by the applicant, the agencies, and others to protect and
enhance environmental resources and values and to mitigate adverse
impacts of the project on such resources. The applicant must explain
its reasons for not undertaking any measures proposed by any agency
consulted.
(iii) A description of the steps taken by the applicant in consulting
with Federal, state, and local agencies with expertise in environmental
matters during the preparation of this exhibit prior to filing the
application for license with the Commission. In this report, the
applicant must:
(A) Indicate which agencies were consulted during the preparation of
the environmental report and provide copies of letters or other
documentation showing that the applicant consulted or attempted to
consult with each of the relevant agencies (specifying each agency)
before filing the application, including any terms or conditions of
license that those agencies have determined are appropriate to prevent
loss of, or damage to, natural resources; and
(B) List those agencies that were provided copies of the application
as filed with the Commission, the date or dates provided, and copies of
any letters that may be received from agencies commenting on the
application.
(iv) Any additional information the applicant considers important.
(e) Exhibit F consists of general drawings of the principal project
works. The drawings need not conform to the specifications of 4.39.
The exhibit must conform to the following requirements:
(1) The exhibit must consist of ink drawings, or drawings of similar
quality, on sheets no smaller than 8 and one-half inches by 11 inches,
drawn to a scale no smaller than 1 inch equals 50 feet for plans,
elevations, and profiles, and 1 inch equals 10 feet for sections. After
initial review of the application, an original and 2 copies of any
drawing must be submitted on 35mm microfilm, if requested by Commission
staff.
(2) The drawings must show a plan, elevation, profile, and section of
the dam structure and powerplant. Generating and auxiliary equipment
proposed must be clearly and simply depicted and described. A north
arrow must be included on the plan view.
(f) Exhibit G is a map of the project. The map need not conform to
the specifications of 4.39. The exhibit must instead conform to the
following requirements:
(1) The exhibit is a map or maps that show the location of all
project works and their location in relation to the stream or other
water body on which the project is located and to the nearest town or
any permanent monuments or objects, such as roads, transmission lines,
or other structures, that can be noted on the map and recognized in the
field. In the case of unsurveyed public land, or land that is not
public land, give the best legal description available. If surveyed
land, provide sections, subdivisions, range and township, and principal
base and meridian.
(2) The map must consist of ink drawings or drawings of similar
quality on sheets no smaller than 8 and one-half inches by 11 inches and
not larger than 24 inches by 36 inches, drawn to a scale no smaller than
one inch equals 1,000 feet. After review of the application, the
applicant must submit an original of the map(s), if requested by
Commission staff. Each original map must consist of a print on silver
or gelatin 35mm microfilm mounted on Type D (3 1/4'' x 7 3/8'') aperture
cards. Two duplicates of each original must also be submitted at that
time.
(3)(i) If an application for a license for a minor water power
project that will not occupy any public lands or reservations of the
United States does not contain a statement that the applicant requests
the Commission to apply the provisions of Part I of the Federal Power
Act enumerated in 4.60(c), the applicant:
(A) Must provide a reasonably accurate description of the project
location and all project works and features; and
(B) Must identify, in Exhibit G of its application, the owners of all
lands necessary for the construction and operation of the project; but
(C) Need not show a project boundary.
(ii) If an application for a license for a minor water power project
contains a statement that the applicant requests the Commission to apply
the provisions of Part I of the Federal Power Act enumerated in
4.60(c), the applicant must show the project boundary on the map it
submits as Exhibit G to its application, as specified in 4.41(h)(2).
(iii) If an application for a license for a minor water power project
proposes that the project would occupy any public lands or reservations
of the United States, the applicant must show the project boundaries on
public lands and reservations on the map it submits as Exhibit G to its
application, as specified in 4.41(h)(2).
(4) Water power projects not excepted by paragraph (f)(3) of this
section must include a project boundary as follows:
(i) The project boundary must enclose all project works, such as the
dam, reservoir, pipelines, access and other roads, powerplant, and
transmission lines. The boundary must be set at the minimum feasible
distance from project works necessary to allow operation and maintenance
of the project and control of the shoreline and reservoir. The project
boundary may be contour elevation lines, specified courses and
distances, or lines upon or parallel to public land survey lines.
(ii) The project boundary must be depicted on the map by use of
contour lines (preferred method), courses and distances, public land
survey, or lines parallel to the lines of the survey, or any combination
of those methods for reservoirs and impoundments, and the project
boundary around dams, spillways, and powerhouses; and must be depicted
by specified distances from a surveyed center line or offset lines of
survey for continuous features such as access roads, transmission lines,
pipelines, or canals. A tape-compass survey is acceptable for
determining courses and distances.
(iii) Federal lands. Any public lands and reservations of the United
States (see 16 U.S.C. 796 (1) and (2)) (Federal lands) that are within
the project boundary, e.g., lands administered by the U.S. Forest
Service, Bureau of Land Management, National Park Service, or Indian
tribal lands, and the boundaries of those Federal lands, must be
identified on the map:
(A) By legal subdivisions of a public land survey of the affected
area (a protraction of identified township and section lines is
sufficient for this purpose);
(B) By the Federal agency, identified by symbol or legend if desired,
that maintains or manages each identified subdivision of the public land
survey within the project boundary; and
(C) In the absence of a public land survey, by the location of the
Federal lands according to the distances and directions from fixed
monuments or physical features.
(iv) For clarity, use inset sketches to a larger scale than that used
for the overview map to show relationships of project works, natural
features, and property lines.
(v) Show one or more ties by distance and bearing from a definite,
identifiable point or points on project works or the project boundary to
established corners of the public land survey or other survey monuments,
if available.
(vi) If the project affects unsurveyed Federal lands, the protraction
of township and section lines must be shown. Such protractions,
whenever available, must be those recognized by the agency of the United
States having jurisdiction over the lands. On unsurveyed lands, show
ties by distance and bearing to fixed recognizable objects.
(Order 185, 46 FR 55949, Nov. 13, 1981, as amended by Order 413, 50
FR 11685, Mar. 25, 1985; Order 464, 52 FR 5449, Feb. 23, 1987; Order
513, 54 FR 23806, June 2, 1989)
18 CFR 4.61 Subpart H -- Application for License for Transmission Line Only
18 CFR 4.70 Applicability.
This subpart applies to any application for license issued solely for
a transmission line that transmits power from a licensed water power
project or other hydroelectric project authorized by Congress to the
point of junction with the distribution system or with the
interconnected primary transmission system.
(Order 184, 46 FR 55942, Nov. 13, 1981)
18 CFR 4.71 Contents of application.
An application for license for transmission line only must contain
the following information in the form specified.
(a) Initial statement.
(1) (Name of applicant) applies to the Federal Energy Regulatory
Commission for a (license or new license, as appropriate) for the (name
of project) transmission line only, as described in the attached
exhibits, that is connected with FERC Project No. ------ , for which a
license (was issued, or application was made, as appropriate) on the
------ day of ---------- , 19 ---- .
(2) The location of the transmission line would be:
State or territory:
County:
Township or nearby town:
(3) The proposed use or market for the power to be transmitted.
(4) The exact name, business address, and telephone number of the
applicant are:
(5) The applicant is a (citizen of the United States, association of
citizens of the United States, domestic corporation, municipality, or
State, as appropriate) and (is/is not) claiming preference under section
7(a) of the Federal Power Act. See 16 U.S.C. 796.
(6)(i) (For any applicant which, at the time of application for
license for transmission line only, is a non-licensee.) The statutory or
regulatory requirements of the state(s) in which the project would be
located and that affect the project as proposed with respect to bed and
banks and to the appropriation, diversion, and use of water for power
purposes, and with respect to the right to engage in the business of
developing, transmitting, and distribution power and in any other
business necessary to accomplish the purposes of the license under the
Federal Power Act, are: (provide citation and brief identification of
the nature of each requirement; if the applicant is a municipality, the
applicant must submit copies of applicable state or local laws or a
municipal charter or, if such laws or documents are not clear, other
appropriate legal authority, evidencing that the municipality is
competent under such laws to engage in the business of developing,
transmitting, utilizing, or distributing power.)
(ii) (For any applicant which, at the time of application for license
for transmission line only, is a licensee.) The statutory or regulatory
requirements of the state(s) in which the transmission line would be
located and that affect the project as proposed with respect to bed and
banks and to the appropriation, diversion, and use of water for power
purposes, are: (provide citations and brief identification of the
nature of each requirement.)
(iii) The steps which the applicant has taken or plans to take to
comply with each of the laws cited above are: (provide brief
descriptions for each law.)
(b) Required exhibits. The application must contain the following
exhibits, as appropriate:
(1) For any transmission line that, at the time the application is
filed, is not constructed and is proposed to be connected to a licensed
water power project with an installed generating capacity of more than 5
MW -- Exhibits A, B, C, D, E, F, and G under 4.41 of this chapter;
(2) For any transmission line that, at the time the application is
filed, is not constructed and is proposed to be connected to a licensed
water power project with an installed generating capacity of 5 MW or
less -- Exhibits E, F, and G under 4.61 of this chapter; and
(3) For any transmission line that, at the time the application is
filed, has been constructed and is proposed to be connected to any
licensed water power project -- Exhibits E, F, and G under 4.61 of this
chapter.
(Order 184, 46 FR 55942, Nov. 13, 1981, as amended by Order 413, 50
FR 11685, Mar. 25, 1985)
18 CFR 4.71 Subpart I -- Application for Preliminary Permit; Amendment
and Cancellation of Preliminary Permit
Authority: Federal Power Act, as amended 16 U.S.C. 792-828c;
Department of Energy Organization Act, 42 U.S.C. 7101-7352; E.O.
12009, 42 FR 46267; Public Utility Regulatory Policies Act of 1978, 16
U.S.C. 2601-2645, unless otherwise noted.
18 CFR 4.80 Applicability.
Sections 4.80 through 4.83 pertain to preliminary permits under Part
I of the Federal Power Act. The sole purpose of a preliminary permit is
to secure priority of application for a license for a water power
project under Part I of the Federal Power Act while the permittee
obtains the data and performs the acts required to determine the
feasibility of the project and to support an application for a license.
(Order 54, 44 FR 61336, Oct. 25, 1979, as amended by Order 413, 50 FR
11685, Mar. 25, 1985)
18 CFR 4.81 Contents of application.
Each application for a preliminary permit must include the following
initial statement and numbered exhibits containing the information and
documents specified:
(a) Initial statement:
(1) (Name of applicant) applies to the Federal Energy Regulatory
Commission for a preliminary permit for the proposed (name of project)
water power project, as described in the attached exhibits. This
application is made in order that the applicant may secure and maintain
priority of application for a license for the project under Part I of
the Federal Power Act while obtaining the data and performing the acts
required to determine the feasibility of the project and to support an
application for a license.
(2) The location of the proposed project is:
State or territory:
County:
Township or nearby town:
Stream or other body of water:
--
(3) The exact name, business address, and telephone number of the
applicant are:
-- -- --
The exact name and business address of each person authorized to act
as agent for the applicant in this application are:
-- -- --
(4) (Name of applicant) is a (citizen, association, citizens,
domestic corporation, municipality, or State, as appropriate) and (is/is
not) claiming preference under section 7(a) of the Federal Power Act.
(If the applicant is a municipality, the applicant must submit copies of
applicable state or local laws or a municipal charter or, if such laws
or documents are not clear, any other appropriate legal authority,
evidencing that the municipality is competent under such laws to engage
in the business of development, transmitting, utilizing, or distributing
power).
(5) The proposed term of the requested permit is (period not to
exceed 36 months).
(6) If there is any existing dam or other project facility, the
applicant must provide the name and address of the owner of the dam and
facility. If the dam is federally owned or operated, provide the name
of the agency.
(b) Exhibit 1 must contain a description of the proposed project,
specifying and including, to the extent possible:
(1) The number, physical composition, dimensions, general
configuration and, where applicable, age and condition, of any dams,
spillways, penstocks, powerhouses, tailraces, or other structures,
whether existing or proposed, that would be part of the project;
(2) The estimated number, surface area, storage capacity, and normal
maximum surface elevation (mean sea level) of any reservoirs, whether
existing or proposed, that would be part of the project;
(3) The estimated number, length, voltage, interconnections, and,
where applicable, age and condition, of any primary transmission lines
whether existing or proposed, that would be part of the project (see 16
U.S.C. 796(11));
(4) The total estimated average annual energy production and
installed capacity (provide only one energy and capacity value), the
hydraulic head for estimating capacity and energy output, and the
estimated number, rated capacity, and, where applicable, the age and
condition, of any turbines and generators, whether existing or proposed,
that would be part of the project works;
(5) All lands of the United States that are enclosed within the
proposed project boundary described under paragraph (e)(3) of this
section, identified and tabulated on a separate sheet by legal
subdivisions of a public land survey of the affected area, if available;
and
(6) Any other information demonstrating in what manner the proposed
project would develop, conserve, and utilize in the public interest the
water resources of the region.
(c) Exhibit 2 is a description of studies conducted or to be
conducted with respect to the proposed project, including field studies.
Exhibit 2 must supply the following information:
(1) General requirement. For any proposed project, a study plan
containing a description of:
(i) Any studies, investigations, tests, or surveys that are proposed
to be carried out, and any that have already taken place, for the
purposes of determining the technical, economic, and financial
feasibility of the proposed project, taking into consideration its
environmental impacts, and of preparing an application for a license for
the project; and
(ii) The approximate locations and nature of any new roads that would
be built for the purpose of conducting the studies; and
(2) Work plan for new dam construction. For any development within
the project that would entail new dam construction, a work plan and
schedule containing:
(i) A description, including the approximate location, of any field
study, test, or other activity that may alter or disturb lands or waters
in the vicinity of the proposed project, including floodplains and
wetlands; measures that would be taken to minimize any such
disturbance; and measures that would be taken to restore the altered or
disturbed areas; and
(ii) A proposed schedule (a chart or graph may be used), the total
duration of which does not exceed the proposed term of the permit,
showing the intervals at which the studies, investigations, tests, and
surveys, identified under this paragraph are proposed to be completed.
(iii) For purposes of this paragraph, new dam construction means any
dam construction the studies for which would require test pits, borings,
or other foundation exploration in the field.
(3) Waiver. The Commission may waive the requirements of paragraph
(c)(2) pursuant to 385.207 of this chapter, upon a showing by the
applicant that the field studies, tests, and other activities to be
conducted under the permit would not adversely affect cultural resources
or endangered species and would cause only minor alterations or
disturbances of lands and waters, and that any land altered or disturbed
would be adequately restored.
(d) Exhibit 3 must contain a statement of costs and financing,
specifying and including, to the extent possible:
(1) The estimated costs of carrying out or preparing the studies,
investigations, tests, surveys, maps, plans or specifications identified
under paragraph (c) of this section;
(2) The expected sources and extent of financing available to the
applicant to carry out or prepare the studies, investigations, tests,
surveys, maps, plans, or specifications identified under paragraph (c)
of this section; and
(3) A description of the proposed market for the power generated at
the project, including:
(i) The identity of the proposed purchaser(s) of the power, and any
information that is available concerning the revenues to be derived from
the sale of the power; or
(ii) If the applicant proposes to utilize the power output, the size
of the applicant's power system, system peak demand and annual energy
requirements, and the number of customers served by the applicant.
(e) Exhibit 4 must include a map or series of maps, to be prepared on
United States Geological Survey topographic quadrangle sheets or similar
topographic maps of a State agency, if available. The maps need not
conform to the precise specifications of 4.39 (a) and (b). If the
scale of any base map is not sufficient to show clearly and legibly all
of the information required by this paragraph, the maps submitted must
be enlarged to a scale that is adequate for that purpose. (If Exhibit 4
comprises a series of maps, it must also include an index sheet showing,
by outline, the parts of the entire project covered by each map of the
series.) The maps must show:
(1) The location of the project as a whole with reference to the
affected stream or other body of water and, if possible, to a nearby
town or any permanent monuments or objects that can be noted on the maps
and recognized in the field;
(2) The relative locations and physical interrelationships of the
principal project features identified under paragraph (b) of this
section;
(3) A proposed boundary for the project, enclosing:
(i) All principal project features identified under paragraph (b) of
this section, including but not limited to any dam, reservoir, water
conveyance facilities, powerplant, transmission lines, and other
appurtenances; if the project is located at an existing Federal dam,
the Federal dam and impoundment must be shown, but may not be included
within the project boundary;
(ii) Any non-Federal lands and any public lands or reservations of
the United States (see 16 U.S.C. 796 (1) and (2)) necessary for the
purposes of the project. To the extent that those public lands or
reservations are covered by a public land survey, the project boundary
must enclose each of and only the smallest legal subdivisions
(quarter-quarter section, lots, or other subdivisions, identified on the
map by subdivision) that may be occupied in whole or in part by the
project.
(4) Areas within or in the vicinity of the proposed project boundary
which are included in or have been designated for study for inclusion in
the National Wild and Scenic Rivers System; and
(5) Areas within the project boundary that, under the provisions of
the Wilderness Act, have been:
(i) Designated as wilderness area;
(ii) Recommended for designation as wilderness area; or
(iii) Designated as wilderness study area.
(Federal Power Act, as amended, 16 U.S.C. 792-828c (1976);
Department of Energy Organization Act, 42 U.S.C. 7101-7352 (Supp. IV
1980); E.O. 12009, 3 CFR part 142 (1978); 5 U.S.C. 553 (Supp. IV
1980))
(Order 54, 44 FR 61336, Oct. 25, 1979, as amended by Order 123, 46 FR
9029, Jan. 28, 1981; 46 FR 11811, Feb. 11, 1981; Order 225, 47 FR
19056, May 3, 1982; Order 413, 50 FR 11685, Mar. 25, 1985)
18 CFR 4.82 Amendments.
(a) Any permittee may file an application for amendment of its
permit, including any extension of the term of the permit that would not
cause the total term to exceed three years. (Transfer of a permit is
prohibited by section 5 of the Federal Power Act.) Each application for
amendment of a permit must conform to any relevant requirements of 4.81
(b), (c), (d), and (e).
(b) If an application for amendment of a preliminary permit requests
any material change in the proposed project, public notice of the
application will be issued as required in 4.32(d)(2)(i).
(c) If an application to extend the term of a permit is submitted not
less than 30 days prior to the termination of the permit, the permit
term will be automatically extended (not to exceed a total term for the
permit of three years) until the Commission acts on the application for
an extension. The Commission will not accept extension requests that
are filed less than 30 days prior to the termination of the permit.
(Order 413, 50 FR 11685, Mar. 25, 1985, as amended by Order 499, 53
FR 27002, July 18, 1988)
18 CFR 4.83 Cancellation and loss of priority.
(a) The Commission may cancel a preliminary permit after notice and
opportunity for hearing if the permittee fails to comply with the
specific terms and conditions of the permit. The Commission may also
cancel a permit for other good cause shown after notice and opportunity
for hearing. Cancellation of a permit will result in loss of the
permittee's priority of application for a license for the proposed
project.
(b) Failure of a permittee to file an acceptable application for a
license before the permit expires will result in loss of the permittee's
priority of application for a license for the proposed project.
(Order 413, 50 FR 11686, Mar. 25, 1985)
18 CFR 4.84 Surrender of permit.
A permittee must submit a petition to the Commission before the
permittee may voluntarily surrender its permit. Unless the Commission
issues an order to the contrary, the permit will remain in effect
through the thirtieth day after the Commission issues a public notice of
receipt of the petition.
(Order 413, 50 FR 11686, Mar. 25, 1985)
18 CFR 4.84 Subpart J -- Exemption of Small Conduit Hydroelectric Facilities
18 CFR 4.90 Applicability and purpose.
This subpart implements section 30 of the Federal Power Act and
provides procedures for obtaining an exemption for constructed or
unconstructed small conduit hydroelectric facilities, as defined in
4.30(b)(26), from all or part of the requirements of Part I of the
Federal Power Act, including licensing, and the regulations issued under
Part I.
(Order 76, 45 FR 28090, Apr. 28, 1980, as amended by Order 413, 50 FR
11686, Mar. 25, 1985)
4.91 (Reserved)
18 CFR 4.92 Contents of exemption application.
(a) An application for exemption for this subpart must include:
(1) An introductory statement, including a declaration that the
facility for which application is made meets the requirements of
4.30(b)(26), the facility qualifies but for the discharge requirement of
4.30(b)(26)(v), the introductory statement must identify that fact and
state that the application is accompanied by a petition for waiver of
4.30(b)(26)(v), filed pursuant to 385.207 of this chapter);
(2) Exhibits A, B, E, and G;
(3) An appendix containing documentary evidence showing that the
applicant has the real property interests required under 4.31(b); and
(4) Identification of all Indian tribes that may be affected by the
project.
(b) Introductory Statement. The introductory statement must be set
forth in the following format:
(Name of applicant) applies to the Federal Energy Regulatory
Commission for an exemption for the (name of facility), a small conduit
hydroelectric facility that meets the requirements of (insert the
following language, as appropriate: '' 4.30(b)(26) of this subpart'' or
'' 4.30(b)(26) of this subpart, except paragraph (b)(26)(v)''), from
certain provisions of Part I of the Federal Power Act.
The location of the facility is:
State or Territory:
County:
Township or nearby town:
The exact name and business address of each applicant is:
--
The exact name and business address of each person authorized to act
as agent for the applicant in this application is:
--
(Name of applicant) is (a citizen of the United States, an
association of citizens of the United States, a municipality, State, or
a corporation incorporated under the laws of (specify the United States
or the state of incorporation, as appropriate), as appropriate).
The provisions of Part I of the Federal Power Act for which exemption
is requested are:
(List here all sections or subsections for which exemption is
requested.)
(If the facility does not meet the requirement of 4.30(b)(26)(v),
add the following sentence: ''This application is accompanied by a
petition for waiver of 4.30(b)(26)(v), submitted pursuant to 18 CFR
385.207.'')
(c) Exhibit A. Exhibit A must describe the small conduit
hydroelectric facility and proposed mode of operation with appropriate
references to Exhibits B and G. To the extent feasible the information
in this exhibit may be submitted in tabular form. The following
information must be included:
(1) A brief description of any conduits and associated consumptive
water supply facilities, intake facilities, powerhouses, and any other
structures associated with the facility.
(2) The proximate natural sources of water that supply the related
conduit.
(3) The purposes for which the conduit is used.
(4) The number of generating units, including auxiliary units, the
capacity of each unit, and provisions, if any, for future units.
(5) The type of each hydraulic turbine.
(6) A description of how the plant is to be operated, manually or
automatically, and whether the plant is to be used for peaking.
(7) Estimations of:
(i) The average annual generation in kilowatt hours;
(ii) The average head of the plant;
(iii) The hydraulic capacity of the plant (flow through the plant) in
cubic feet per second;
(iv) The average flow of the conduit at the plant or point of
diversion (using best available data and explaining the sources of the
data and the method of calculation); and
(v) The average amount of the flow described in paragraph (c)(7)(iv)
of this section available for power generation.
(8) The planned date for beginning construction of the facility.
(9) If the hydroelectric facility discharges directly into a natural
body of water and a petition for waiver of 4.30(b)(26)(v) has not been
submitted, evidence that a quantity of water equal to or greater than
the quantity discharged from the hydroelectric facility is withdrawn
from that water body downstream into a conduit that is part of the same
water supply system as the conduit on which the hydroelectric facility
is located.
(10) If the hydroelectric facility discharges directly to a point of
agricultural, municipal, or industrial consumption, a description of the
nature and location of that point of consumption.
(11) A description of the nature and extent of any construction of a
dam that would occur in association with construction of the proposed
small conduit hydroelectric facility, including a statement of the
normal maximum surface area and normal maximum surface elevation of any
existing impoundment before and after that construction; and any
evidence that the construction would occur for agricultural, municipal,
or industrial consumptive purposes even if hydroelectric generating
facilities were not installed.
(d) Exhibit B. Exhibit B is a general location map that must show
the following information:
(1) The physical structures of the small conduit hydroelectric
facility in relation to the conduit and any dam to which any of these
structures is attached;
(2) A proposed project boundary enclosing all project works to be
exempted from licensing; and
(3) The ownership of the parcels of land within the proposed boundary
for the small conduit hydroelectric facility.
(e) Exhibit E. This exhibit is an Environmental Report. It must be
prepared pursuant to 4.38 and must include the following information,
commensurate with the scope and environmental impact of the facility's
construction and operation:
(1) A description of the environmental setting in the vicinity of the
facility, including vegetative cover, fish and wildlife resources, water
quality and quantity, land and water uses, recreational use,
socio-economic conditions, historical and archeological resources, and
visual resources. The report must give special attention to endangered
or threatened plant and animal species, critical habitats, and sites
eligible for or included on the National Register of Historic Places.
The applicant may obtain assistance in the preparation of this
information from State natural resources agencies, the State historic
preservation officer, and from local offices of Federal natural
resources agencies.
(2) A description of the expected environmental impacts resulting
from the continued operation of an existing small conduit hydroelectric
facility, or from the construction and operation of a proposed small
conduit hydroelectric facility, including a discussion of the specific
measures proposed by the applicant and others to protect and enhance
environmental resources and to mitigate adverse impacts of the facility
on them.
(3) A description of alternative means of obtaining an amount of
power equivalent to that provided by the proposed or existing facility.
(4) Any additional information the applicant considers important.
(f) Exhibit G. Exhibit G is a set of drawings showing the structures
and equipment of the small conduit hydroelectric facility. The drawings
must include plan, elevation, profile, section views of the power plant,
and any other principal facility structure and of any dam to which a
facility structure is attached. Each drawing must be an ink drawing or
a drawing of similar quality on a sheet no smaller than eight and
one-half inches by eleven inches, with a scale no smaller than one inch
equals 50 feet for plans and profiles and one inch equals 10 feet for
sections. Generating and auxiliary equipment must be clearly and simply
depicted and described. For purposes of this subpart, these drawing
specifications replace those required in 4.39 of the Commission's
regulations.
(Order 76, 45 FR 28090, Apr. 28, 1980, as amended by Order 413, 50 FR
11686, Mar. 25, 1985; Order 533, 56 FR 23153, May 20, 1991)
18 CFR 4.93 Action on exemption applications.
(a) An application for exemption that does not meet the eligibility
requirements of 4.30(b)(26)(v) may be accepted, provided the
application has been accompanied by a request for waiver under
4.92(a)(1) and the waiver request has not been denied. Acceptance of an
application that has been accompanied by a request for waiver under
4.92(a)(1) does not constitute a ruling on the waiver request, unless
expressly stated in the acceptance.
(b) The Commission will circulate a notice of application for
exemption to interested agencies and Indian tribes at the time the
applicant is notified that the application is accepted for filing.
(c) In granting an exemption the Commission may prescribe terms or
conditions in addition to those set forth in 4.94, in order to:
(1) Protect the quality or quantity of the related water supply for
agricultural, municipal, or industrial consumption;
(2) Otherwise protect life, health, or property;
(3) Avoid or mitigate adverse environmental impact; or
(4) Conserve, develop, or utilize in the public interest the water
power resources of the region.
(d) Conversion to license application. (1) If an application for
exemption under this subpart is denied by the Commission, the applicant
may convert the exemption application into an application for license
for the hydroelectric project.
(2) The applicant must provide the Commission with written
notification, within 30 days after the date of issuance of the order
denying exemption, that it intends to convert the exemption application
into a license application. The applicant must submit to the
Commission, no later than 90 days after the date of issuance of the
order denying exemption, additional information that is necessary to
conform the exemption application to the relevant regulations for a
license application.
(3) If all the information timely submitted is found sufficient,
together with the application for exemption, to conform to the relevant
regulations for a license application, the converted application will be
considered accepted for filing as of the date that the exemption
application was accepted for filing.
(Order 76, 45 FR 28090, Apr. 28, 1980, as amended by Order 413, 50 FR
11687, Mar. 25, 1985; Order 533, 56 FR 23153, May 20, 1991)
18 CFR 4.94 Standard terms and conditions of exemption.
Any exemption granted under 4.93 for a small conduit hydroelectric
facility is subject to the following standard terms and conditions:
(a) Article 1. The Commission reserves the right to conduct
investigations under sections 4(g), 306, 307, and 311 of the Federal
Power Act with respect to any acts, complaints, facts, conditions,
practices, or other matters related to the construction, operation, or
maintenance of the exempt facility. If any term or condition of the
exemption is violated, the Commission may revoke the exemption, issue a
suitable order under section 4(g) of the Federal Power Act, or take
appropriate action for enforcement, forfeiture, or penalties under Part
III of the Federal Power Act.
(b) Article 2. The construction, operation, and maintenance of the
exempt project must comply with any terms and conditions that the United
States Fish and Wildlife Service, the National Marine Fisheries Service,
and any state fish and wildlife agencies have determined are appropriate
to prevent loss of, or damage to, fish or wildlife resources or
otherwise to carry out the purposes of the Fish and Wildlife
Coordination Act, as specified in exhibit E of the application for
exemption from licensing or in the comments submitted in response to the
notice of exemption application.
(c) Article 3. The Commission may revoke this exemption if actual
construction of any proposed generating facilities has not begun within
two years or has not been completed within four years from the effective
date of this exemption. If an exemption is revoked under this article,
the Commission will not accept from the prior exemption holder a
subsequent application for exemption from licensing or a notice of
exemption from licensing for the same project within two years of the
revocation.
(d) Article 4. In order to best develop, conserve, and utilize in
the public interest the water resources of the region, the Commission
may require that the exempt facilities be modified in structure or
operation or may revoke this exemption.
(e) Article 5. The Commission may revoke this exemption if, in the
application process, material discrepancies, inaccuracies, or falsehoods
were made by or on behalf of the applicant.
(f) Article 6. Before transferring any property interests in the
exempt project, the exemption holder must inform the transferee of the
terms and conditions of the exemption. Within 30 days of transferring
the property interests, the exemption holder must inform the Commission
of the identity and address of the transferee.
(Order 76, 45 FR 28090, Apr. 28, 1980, as amended by Order 413, 50 FR
11687, Mar. 25, 1985; Order 413-A, 56 FR 31331, July 10, 1991)
18 CFR 4.95 Surrender of exemption.
(a) To voluntarily surrender its exemption, a holder of an exemption
for a small conduit hydroelectric facility must file a petition with the
Commission.
(b)(1) If construction has begun, prior to filing a petition with the
Commission, the exemption holder must consult with the fish and wildlife
agencies in accordance with 4.38, substituting for the information
required under 4.38(b)(1) information appropriate to the disposition
and restoration of the project works and lands. The petition must set
forth the exemption holder's plans with respect to disposition and
restoration of the project works and lands.
(2) If construction has begun, public notice of the petition will be
given, and, at least 30 days thereafter, the Commission will act upon
the petition.
(c) If no construction has begun, unless the Commission issues an
order to the contrary, the exemption will remain in effect through the
thirtieth day after the Commission issues a public notice of receipt of
the petition. New applications involving the site of the surrendered
exemption may be filed on the next business day.
(d) Exemptions may be surrendered only upon fulfillment by the
exemption holder of such obligations under the exemption as the
Commission may prescribe and, if construction has begun, upon such
conditions with respect to the disposition of such project works and
restoration of project lands as may be determined by the Commission and
the Federal and state fish and wildlife agencies.
(Order 413, 50 FR 11687, Mar. 25, 1985)
18 CFR 4.96 Amendment of exemption.
(a) An exemption holder must construct and operate its project as
described in the exemption application approved by the Commission or its
delegate.
(b) If an exemption holder desires to change the design, location,
method of construction or operation of its project, it must first notify
the appropriate Federal and state fish and wildlife agencies and inform
them in writing of the changes it intends to implement. If these
agencies determine that the changes would not cause the project to
violate the terms and conditions imposed by the agencies, and if the
changes would not materially alter the design, location, method of
construction or operation of the project, the exemption holder may
implement the changes. If any of these agencies determines that the
changes would cause the project to violate the terms and conditions
imposed by the agencies, or if the changes would materially alter the
design, location, method of construction or the operation of the project
works, the exemption holder may not implement the changes without first
acquiring authorization from the Commission to amend its exemption, or
acquiring a license that authorizes the project, as changed.
(c) An application to amend an exemption may be filed only by the
holder of the exemption. An application to amend an exemption will be
governed by the Commission's regulations governing applications for
exemption. The Commission will not accept applications in competition
with an application to amend an exemption, unless the Director of the
Office of Hydropower Licensing determines that it is in the public
interest to do so.
(Order 413, 50 FR 11687, Mar. 25, 1985)
18 CFR 4.96 Subpart K -- Exemption of Small Hydroelectric Power Projects of 5 Megawatts or Less
18 CFR 4.101 Applicability.
This subpart provides procedures for exemption on a case-specific
basis from all or part of Part I of the Federal Power Act (Act),
including licensing, for small hydroelectric power projects as defined
in 4.30(b)(27).
(Energy Security Act of 1980, Pub. L. 96-294, 94 Stat. 611; Federal
Power Act, as amended (16 U.S.C. 792-828c); Public Utility Regulatory
Policies Act of 1978 (16 U.S.C. 2601-2645); and the Department of
Energy Organization Act (42 U.S.C. 7101-7352); E.O. 12009, 3 CFR 142
(1978))
(Order 202, 47 FR 4243, Jan. 29, 1982, as amended by Order 413, 50 FR
11687, Mar. 25, 1985; Order 482, 52 FR 39630, Oct. 23, 1987)
18 CFR 4.102 Surrender of exemption.
(a) To voluntarily surrender its exemption, a holder of an exemption
for a small hydroelectric power project must file a petition with the
Commission.
(b)(1) If construction has begun, prior to filing a petition with the
Commission, the exemption holder must consult with the fish and wildlife
agencies in accordance with 4.38, substituting for the information
required under 4.38(b)(1) information appropriate to the disposition
and restoration of the project works and lands. The petition must set
forth the exemption holder's plans with respect to disposition and
restoration of the project works and lands.
(2) If construction has begun, public notice of the petition will be
given, and, at least 30 days thereafter, the Commission will act upon
the petition. New applications involving the site may be filed on the
next business day.
(c) If no construction had begun, unless the Commission issues an
order to the contrary, the surrender will take effect at the close of
the thirtieth day after the Commission issues a public notice of receipt
of the petition. New applications involving the site may be filed on
the next business day.
(d) Exemptions may be surrendered only upon fulfillment by the
exemption holder of such obligations under the exemption as the
Commission may prescribe and, if construction has begun, upon such
conditions with respect to the disposition of such project works and
restoration of project lands as may be determined by the Commission and
the Federal and state fish and wildlife agencies.
(e) Where occupancy of United States lands or reservations has been
permitted by a Federal agency having supervision over such lands, the
exemption holder must concurrently notify that agency of the petition to
surrender and of the steps that will be taken to restore the affected
U.S. lands or reservations.
(Order 413, 50 FR 11688, Mar. 25, 1985)
18 CFR 4.103 General provisions for case-specific exemption.
(a) Exemptible projects. Subject to the provisions in paragraph (b)
of this section, 4.31(c), and 4.105 and 4.106, the Commission may
exempt on a case-specific basis any small hydroelectric power project
from all or part of Part I of the Act, including licensing requirements.
Any applications for exemption for a project shall conform to the
requirements of 4.107 or 4.108, as applicable.
(b) Limitation for licensed water power project. The Commission will
not accept for filing an application for exemption from licensing for
any project that is only part of a licensed water power project.
(c) Waiver. In applying for case-specific exemption from licensing,
a qualified exemption applicant may petition under 385.207 of this
chapter for waiver of any specific provision of 4.102 through 4.107.
The Commission will grant a waiver only if consistent with section 408
of the Energy Security Act of 1980.
(Order 413, 50 FR 11688, Mar. 25, 1985, as amended by Order 503, 53
FR 36568, Sept. 21, 1988)
18 CFR 4.104 Amendment of exemption.
(a) An exemption holder must construct and operate its project as
described in the exemption application approved by the Commission or its
delegate.
(b) If an exemption holder desires to change the design, location,
method of construction or operation of its project, it must first notify
the appropriate Federal and state fish and wildlife agencies and inform
them in writing of the changes it intends to implement. If these
agencies determine that the changes would not cause the project to
violate the terms and conditions imposed by the agencies, and if the
changes would not materially alter the design, location, method of
construction or operation of the project, the exemption holder may
implement the changes. If any of these agencies determines that the
changes would cause the project to violate the terms and conditions
imposed by that agency, or if the changes would materially alter the
design, location, method of construction or the operation of the project
works, the exemption holder may not implement the changes without first
acquiring authorization from the Commission to amend its exemption or
acquiring a license for the project works that authorizes the project,
as changed.
(c) An application to amend an exemption may be filed only by the
holder of an exemption. An application to amend an exemption will be
governed by the Commission's regulations governing applications for
exemption. The Commission will not accept applications in competition
with an application to amend an exemption, unless the Director of the
Office of Hydropower Licensing determines that it is in the public
interest to do so.
(Order 413, 50 FR 11688, Mar. 25, 1985)
18 CFR 4.105 Action on exemption applications.
(a) Exemption from provisions other than licensing. An application
for exemption of a small hydroelectric power project from provisions of
Part I of the Act other than the licensing requirement will be processed
and considered as part of the related application for license or
amendment of license.
(b)(1) Consultation. The Commission will circulate a notice of
application for exemption from licensing to interested agencies and
Indian tribes at the time the applicant is notified that the application
is accepted for filing.
(2) Non-standard terms and conditions. In approving any application
for exemption from licensing, the Commission may prescribe terms or
conditions in addition to those set forth in 4.106 in order to:
(i) Protect the quality or quantity of the related water supply;
(ii) Otherwise protect life, health, or property;
(iii) Avoid or mitigate adverse environmental impact; or
(iv) Better conserve, develop, or utilize in the public interest the
water resouces of the region.
(Energy Security Act of 1980, Pub. L. 96-294, 94 Stat. 611; Federal
Power Act, as amended (16 U.S.C. 792-828c); Public Utility Regulatory
Policies Act of 1978 (16 U.S.C. 2601-2645); and the Department of
Energy Organization Act (42 U.S.C. 7101-7352); E.O. 12009, 3 CFR 142
(1978))
(Order 106, 45 FR 76123, Nov. 18, 1980, as amended by Order 202, 47
FR 4246, Jan. 29, 1982; Order 413, 50 FR 11688, Mar. 25, 1985; Order
533, 56 FR 23154, May 20, 1991)
18 CFR 4.106 Standard terms and conditions of case-specific exemption
from licensing.
Any case-specific exemption from licensing granted for a small
hydroelectric power project is subject to the following standard terms
and conditions:
(a) Article 1. The Commission reserves the right to conduct
investigations under sections 4(g), 306, 307, and 311 of the Federal
Power Act with respect to any acts, complaints, facts, conditions,
practices, or other matters related to the construction, operation, or
maintenance of the exempt project. If any term or condition of the
exemption is violated, the Commission may revoke the exemption, issue a
suitable order under section 4(g) of the Federal Power Act, or take
appropriate action for enforcement, forfeiture, or penalties under Part
III of the Federal Power Act.
(b) Article 2. The construction, operation, and maintenance of the
exempt project must comply with any terms and conditions that the United
States Fish and Wildlife Service, the National Marine Fisheries Service,
and any state fish and wildlife agencies have determined are appropriate
to prevent loss of, or damage to, fish or wildlife resources or
otherwise to carry out the purposes of the Fish and Wildlife
Coordination Act, as specified in exhibit E of the application for
exemption from licensing or in the comments submitted in response to the
notice of exemption application.
(c) Article 3. The Commission may revoke this exemption if actual
construction of any proposed generating facilities has not begun within
two years or has not been completed within four years from the date on
which this exemption was granted. If an exemption is revoked under this
article, the Commission will not accept from the prior exemption holder
a subsequent application for exemption from licensing for the same
project within two years of the revocation.
(d) Article 4. This exemption is subject to the navigation servitude
of the United States if the project is located on navigable waters of
the United States.
(e) Article 5. This exemption does not confer any right to use or
occupy any Federal lands that may be necessary for the development or
operation of the project. Any right to use or occupy any Federal lands
for those purposes must be obtained from the administering Federal land
agencies. The Commission may accept a license application submitted by
any qualified license applicant and revoke this exemption, if any
necessary right to use or occupy Federal lands for those purposes has
not been obtained within one year from the date on which this exemption
was granted.
(f) Article 6. In order to best develop, conserve, and utilize in
the public interest the water resources of the region, the Commission
may require that the exempt facilities be modified in structure or
operation or may revoke this exemption.
(g) Article 7. The Commission may revoke this exemption if, in the
application process, material discrepancies, inaccuracies, or falsehoods
were made by or on behalf of the applicant.
(h) Article 8. Any exempted small hydroelectric power project that
utilizes a dam that is more than 33 feet in height above streambed, as
defined in 18 CFR 12.31(c) of this chapter, impounds more than 2,000
acre-feet of water, or has a significant or high hazard potential, as
defined in 33 CFR part 222, is subject to the following provisions of 18
CFR part 12, as it may be amended:
(1) Section 12.4(b)(1) (i) and (ii), (b)(2) (i) and (iii), (b)(iv),
and (b)(v);
(2) Section 12.4(c);
(3) Section 12.5;
(4) Subpart C; and
(5) Subpart D.
For the purposes of applying these provisions of 18 CFR part 12, the
exempted project is deemed to be a licensed project development and the
owner of the exempted project is deemed to be a licensee.
(i) Before transferring any property interests in the exempt project,
the exemption holder must inform the transferee of the terms and
conditions of the exemption. Within 30 days of transferring the
property interests, the exemption holder must inform the Commission of
the identity and address of the transferee.
(Order 106, 45 FR 76123, Nov. 18, 1980; 45 FR 77420, Nov. 24, 1980,
as amended by Order 202, 47 FR 4246, Jan. 29, 1982; Order 413, 50 FR
11688, Mar. 25, 1985; Order 482, 52 FR 39630, Oct. 23, 1987; Order
413-A, 56 FR 31331, July 10, 1991)
18 CFR 4.107 Contents of application for exemption from licensing.
(a) General requirements. An application for exemption from
licensing submitted under this subpart must contain the introductory
statement, the exhibits described in this section, the fee prescribed in
381.601 of this chapter and, if the project structures would use or
occupy any lands other than Federal lands, an appendix containing
documentary evidence showing that applicant has the real property
interests required under 4.31(c)(2)(ii). The applicant must identify in
its application all Indian tribes that may be affected by the project.
(b) Introductory statement. The application must include an
introductory statement that conforms to the following format:
(1) (Name of applicant) applies to the Federal Energy Regulatory
Commission for an exemption for (name of project), a small hydroelectric
power project that is proposed to have an installed capacity of 5
megawatts or less, from licensuing under the Federal Power Act. (If
applicable: The project is currently licensed as FERC Project No. - --
.)
(2) The location of the project is:
(State or territory)
(County)
(Township or nearby town)
(Stream or body of water)
(3) The exact name and business address of each applicant are:
(4) The exact name and business address of each person authorized to
act as agent for the applicant in this application are:
(5) (Name of applicant) is (specify, as appropriate: a citizen of
the United States or other identified nation; an association of
citizens of the United States or other identified nation; a
municipality; a state; or a corporation incorporated under the laws of
(specify the United States or the state or nation of incorporation, as
appropriate).)
(c) Exhibit A. Exhibit A must describe the small hydroelectric power
project and its proposed mode of operation. To the extent feasible, the
information in this exhibit may be submitted in tabular form. The
applicant must submit the following information:
(1) A brief description of any existing dam and impoundment proposed
to be utilized by the small hydroelectric power project and any other
existing or proposed project works and appurtenant facilities, including
intake facilities, diversion structures, powerhouses, primary
transmission lines, penstocks, pipelines, spillways, and other
structures, and the sizes, capacities, and construction materials of
those structures.
(2) The number of existing and proposed generating units at the
project, including auxiliary units, the capacity of each unit, any
provisions for future units, and a brief description of any plans for
retirement or rehabilitation of existing generating units.
(3) The type of each hydraulic turbine of the small hydroelectric
power project.
(4) A description of how the power plant is to be operated, that is,
run-of-river or peaking.
(5) A graph showing a flow duration curve for the project. Identify
stream gauge(s) and period of record used. If a synthetic record is
utilized, provide details concerning its derivation. Furnish
justification for selection of installed capacity if the hydraulic
capacity of proposed generating unit(s) plus the minimum flow
requirements, if not usable for power production, is less than the
stream flow that is exceeded 25 percent of the time.
(6) Estimations of:
(i) The average annual generation in kilowatt-hours;
(ii) The average and design head of the power plant;
(iii) The hydraulic capacity of each turbine of the power plant (flow
through the plant) in cubic feet per second;
(iv) The number of surface acres of the man-made or natural
impoundment used, if any, at its normal maximum surface elevation and
its net and gross storage capacities in acre-feet.
(7) The planned date for beginning and completing the proposed
construction or development of generating facilities.
(8) A description of the nature and extent of any repair,
reconstruction, or other modification of a dam that would occur in
association with construction or development of the proposed small
hydroelectric power project, including a statement of the normal maximum
surface area and normal maximum surface elevation of any existing
impoundment before and after construction.
(d) Exhibit B. Exhibit B is a general location map, which may be
prepared on United States Geological Survey topographic quadrangle
sheets or similar topographic maps of a state agency, enlarged, if
necessary, to show clearly and legibly all of the information required
by this paragraph. The map must show the following information:
(1) The location of the existing and proposed physical structures of
the small hydroelectric power project, including any dam or diversion
structure, reservoir or impoundment, penstocks, pipelines, power plants,
access roads, transmission lines, and other important features.
(2) The relationship of the project structures to the stream or other
body of water on which the project is located and to the nearest town or
other permanent objects that can be readily recognized in the field.
(3) A description of who owns or otherwise has real property
interests in any tract of land occupied by the small hydroelectric power
project or the structures to which it is directly connected.
(4) A proposed project boundary enclosing project works to be
exempted from licensing.
(e) Exhibit E. This exhibit is an environmental report that must
include the following information, commensurate with the scope and
environmental impact of the construction and operation of the small
hydroelectric power project. See 4.38 for consultation requirements.
(1) A description of the environmental setting of the project,
including vegetative cover, fish and wildlife resources, water quality
and quantity, land and water uses, recreational uses, historical and
archeological resources, and scenic and aesthetic resources. The report
must list any endangered or threatened plant and animal species, any
critical habitats, and any sites eligible for or included on the
National Register of Historic Places. The applicant may obtain
assistance in the preparation of this information from state natural
resources agencies, the state historic preservation officer, and from
local offices of Federal natural resources agencies.
(2) A description of the expected environmental impacts from the
proposed construction or development and the proposed operation of the
small hydroelectric power project, including any impacts from any
proposed changes in the capacity and mode of operation of the project if
it is already generating electric power, and an explanation of the
specific measures proposed by the applicant, the agencies consulted, and
others to protect and enhance environmental resources and values and to
mitigate adverse impacts of the project on such resources.
(3) Any additional information the applicant considers important.
(f) Exhibit G. Exhibit G is a set of drawings showing the structures
and equipment, that is, the proposed and existing project works, of the
small hydroelectric power project. The drawings must include plan,
elevation, and section views of the power plant, any existing dam or
diversion structure, and any other principal structure of the project.
(Order 106, 45 FR 76123, Nov. 18, 1980, as amended by Order 225, 47
FR 19056, May 3, 1982; Order 413, 50 FR 11689, Mar. 25, 1985; Order
494, 53 FR 15381, Apr. 29, 1988; Order 533, 56 FR 23154, May 20, 1991)
18 CFR 4.108 Contents of application for exemption from provisions
other than licensing.
An application for exemption of a small hydroelectric power project
from provisions of Part I of the Act other than the licensing
requirement need not be prepared according to any specific format, but
must be included as an identified appendix to the related application
for license or amendment of license. The application for exemption must
list all sections or subsections of Part I of the Act for which
exemption is requested.
(Order 106, 45 FR 76123, Nov. 18, 1980)
18 CFR 4.108 Subpart L -- Application for Amendment of License
18 CFR 4.200 Applicability.
This part applies to any application for amendment of a license, if
the applicant seeks to:
(a) Make a change in the physical features of the project or its
boundary, or make an addition, betterment, abandonment, or conversion,
of such character as to constitute an alteration of the license;
(b) Make a change in the plans for the project under license; or
(c) Extend the time fixed on the license for commencement or
completion of project works.
(Order 184, 46 FR 55943, Nov. 13, 1981)
18 CFR 4.201 Contents of application.
An application for amendment of a license for a water power project
must contain the following information in the form specified.
(a) Initial statement.
(1) (Name of applicant) applies to the Federal Energy Regulatory
Commission for an amendment of license for the (name of project) water
power project.
(2) The exact name, business address, and telephone number of the
applicant are:
-- -- --
(3) The applicant is a (citizen of the United States, association of
citizens of the United States, domestic corporation, municipality, or
state, as appropriate, see 16 U.S.C. 796), licensee for the water power
project, designated as Project No. ------ in the records of the Federal
Energy Regulatory Commission, issued on the ------ day of ---------- ,
19 ---- .
(4) The amendments of license proposed and the reason(s) why the
proposed changes are necessary, are: (Give a statement or description)
(5)(i) The statutory or regulatory requirements of the state(s) in
which the project would be located that affect the project as proposed
with respect to bed and banks and to the appropriation, diversion, and
use of water for power purposes are: (provide citation and brief
identification of the nature of each requirement.)
(ii) The steps which the applicant has taken or plans to take to
comply with each of the laws cited above are: (provide brief
description for each law.)
(b) Required exhibits for capacity related amendments. Any
application to amend a license for a hydropower project that involves
additional capacity not previously authorized, and that would increase
the actual or proposed total installed capacity of the project, would
result in an increase in the maximum hydraulic capacity of the project
of 15 percent or more, and would result in an increase in the installed
name-plate capacity of 2 megawatts or more, must contain the following
exhibits, or revisions or additions to any exhibits on file,
commensurate with the scope of the licensed project:
(1) For amendment of a license for a water power project that, at the
time the application is filed, is not constructed and is proposed to
have a total installed generating capacity of more than 5 MW -- Exhibits
A, B, C, D, E, F, and G under 4.41 of this chapter;
(2) For amendment of a license for a water power project that, at the
time the application is filed, is not constructed and is proposed to
have a total installed generating capacity of 1.5 MW or less -- Exhibits
E, F, and G under 4.61 of this chapter;
(3) For amendment of a license for a water power project that, at the
time the application is filed, is not constructed and is proposed to
have a total installed generating capacity of 5 MW or less, but more
than 1.5 MW -- Exhibits F and G under 4.61 of this chapter, and Exhibit
E under 4.41 of this chapter;
(4) For amendment of a license for a water power project that, at the
time the application for amendment is filed, has been constructed, and
is proposed to have a total installed generating capacity of 5 MW or
less -- Exhibit E, F and G under 4.61 of this chapter;
(5) For amendment of a license for a water power project that, at the
time the application is filed, has been constructed and is proposed to
have a total installed generating capacity of more than 5 MW -- Exhibits
A, B, C, D, E, F, and G under 4.51 of this chapter.
(c) Required exhibits for non-capacity related amendments. Any
application to amend a license for a water power project that would not
be a capacity related amendment as described in paragraph (b) of this
section must contain those exhibits that require revision in light of
the nature of the proposed amendments.
(d) Consultation and waiver. (1) If an applicant for license under
this subpart believes that any exhibit required under paragraph (b) of
this section is inappropriate with respect to the particular amendment
of license sought by the applicant, a petition for waiver of the
requirement to submit such exhibit may be submitted to the Commission
under 385.207(c)(4) of this chapter, after consultation with the
Commission's Division by Hydropower Licensing.
(2) A licensee wishing to file an application for amendment of
license under this section may seek advice from the Commission staff
regarding which exhibits(s) must be submitted and whether the proposed
amendment is consistent with the scope of the existing licensed project.
(Order 184, 46 FR 55943, Nov. 13, 1981, as amended by Order 225, 47
FR 19056, May 3, 1982; 48 FR 4459, Feb. 1, 1983; 48 FR 16653, Apr. 19,
1983; Order 413, 50 FR 11689, Mar. 25, 1985; Order 533, 56 FR 23154,
May 20, 1991)
18 CFR 4.202 Alteration and extension of license.
(a) If it is determiend that approval of the application for
amendment of license would constitute a significant alteration of
license pursuant to section 6 of the Act, 16 U.S.C. 799, public notice
of such application shall be given at least 30 days prior to action upon
the application.
(b) Any application for extension of time fixed in the license for
commencement or completion of construction of project works must be
filed with the Commission not less than three months prior to the date
or dates so fixed.
(Order 184, 46 FR 55943, Nov. 13, 1981)
18 CFR 4.202 Subpart M -- Fees Under Section 30(e) of the Act
Source: Order 487, 52 FR 48404, Dec. 22, 1987, unless otherwise
noted.
18 CFR 4.300 Purpose, definitions, and applicability.
(a) Purpose. This subpart implements the amendments of section 30 of
the Federal Power Act enacted by section 7(c) of the Electric Consumers
Protection Act of 1986 (ECPA). It establishes procedures for
reimbursing fish and wildlife agencies for costs incurred in connection
with applications for an exemption from licensing and applications for
licenses seeking benefits under section 210 of the Public Utility
Regulatory Policies Act of 1978, as amended, for a project that would
impound or divert the water of a natural watercourse by means of a new
dam or diversion.
(b) Definitions. For the purposes of this subpart --
(1) Cost means an expenditure made by a fish and wildlife agency:
(i) On or after the effective date of this regulation for an
application filed on or after the effective date of this regulation;
and
(ii) Directly related to setting mandatory terms and conditions for a
proposed project pursuant to section 30(c) of the Federal Power Act.
(2) Cost statement means a statement of the total costs for which a
fish and wildlife agency requests reimbursement including an itemized
schedule of costs including, but not limited to, costs of fieldwork and
testing, contract costs, travel costs, personnel costs, and
administrative and overhead costs.
(3) Mandatory terms and conditions means terms and conditions of a
license or exemption that a fish and wildlife agency determines are
appropriate to prevent loss of, or damage to, fish and wildlife
resources pursuant to section 30(c) of the Federal Power Act.
(4) New dam or diversion license applicant means an applicant for a
license for a project that would impound or divert the water of a
natural watercourse by means of a new dam or diversion, as defined in
section 210(k) of the Public Utility Regulatory Policies Act of 1978, as
amended.
(5) PURPA benefits means benefits under section 210 of the Public
Utility Regulatory Policies Act of 1978, as amended.
(6) Section 30(c) application means an application for an exemption
from licensing or a new dam or diversion license application seeking
PURPA benefits.
(c) Applicability. Except as provided in paragraph (d) of this
section, this subpart applies to:
(1) Any application for exemption filed on or after the effective
date of these regulations for costs incurred by fish and wildlife
agencies after the effective date of these regulations;
(2) Any new dam or diversion license application seeking PURPA
benefits filed on or after April 16, 1988;
(3) Any new dam or diversion license application seeking PURPA
benefits filed after the effective date of this regulation, but before
April 16, 1988, if the applicant fails to demonstrate in a monetary
resources petition filed with the Commission pursuant to 292.208 of
this chapter that, before October 16, 1986, it had committed substantial
monetary resources directly related to the development of the proposed
project and to the diligent and timely completion of all requirements of
the Commission for filing an acceptable application; and
(4) Any new dam or diversion license application seeking PURPA
benefits filed after the effective date of this regulation, if the
application is not accepted for filing before October 16, 1989.
(d) Exceptions. (1) This subpart does not apply to any new dam or
diversion license application seeking PURPA benefits if the moratorium
described in section 8(e) of ECPA is in effect. The moratorium will end
at the expiration of the first full session of Congress following the
session during which the Commission reports to Congress on the results
of the study required under section 8(d) of ECPA.
(2) This subpart does not apply to any new dam or diversion license
application seeking PURPA benefits for a project located at a Government
dam, as defined in section 3(10) of the Federal Power Act, at which
non-Federal hydroelectric development is permissible.
18 CFR 4.301 Notice to fish and wildlife agencies and estimation of
fees prior to filing.
(a) Notice to agencies -- (1) New dam or diversion license
applicants. During the initial stage or pre-filing agency consultation
under 4.38(b)(1), a prospective new dam or diversion license applicant
must inform each fish and wildlife agency consulted in writing with a
copy to the Commission whether it will seek PURPA benefits.
(2) Exemption applicants. During the initial stage of pre-filing
agency consultation under 4.38(b)(1), a prospective exemption applicant
must notify each fish and wildlife agency consulted that it will seek an
exemption from licensing.
(b) Estimate of fees. Within the comment period provided in
4.38(b)(2)(iv), a fish and wildlife agency must provide a prospective
section 30(c) applicant with a reasonable estimate of the total costs
the agency anticipates it will incur to set mandatory terms and
conditions for the proposed project. An agency may provide an applicant
with an updated estimate as it deems necessary. If an agency believes
that its most recent estimate will be exceeded by more than 25 percent,
it must supply the prospective applicant or applicant with a new
estimate and submit a copy to the Commission.
18 CFR 4.302 Fees at filing.
(a) Filing requirement. A section 30(c) application must be
accompanied by a fee or a bond, together with copies of the most recent
cost estimates provided by fish and wildlife agencies pursuant to
4.301(b).
(b) Amount. The fee required under paragraph (a) of this section
must be in an amount equal to 50 percent of the most recent cost
estimates provided by fish and wildlife agencies pursuant to 4.301(b).
In lieu of this amount, an applicant may provide an unlimited term
surety bond from a company on the Department of Treasury's list of
companies certified to write surety bonds. Applicants bonded by a
company whose certification by the Department of the Treasury lapses
must provide evidence of purchase of another bond from a certified
company. A bond must be for an amount no less than 100 percent of the
agencies' most recent cost estimates pursuant to 4.301(b).
(c) Failure to file. The Commission will reject a section 30(c)
application if the applicant fails to comply with the provisions of
paragraphs (a) and (b) of this section.
18 CFR 4.303 Post-filing procedures.
(a) Submission of cost statement -- (1) Accepted applications.
Within 60 days after the last date for filing mandatory terms and
conditions pursuant to 4.32(c)(4) for a new dam or diversion license
application seeking PURPA benefits, 4.93(b) for an application for
exemption of a small conduit hydroelectric facility, or 4.105(b)(1) for
an application for case-specific exemption of a small hydroelectric
power project, a fish and wildlife agency must file with the Commission
a cost statement of the reasonable costs the agency incurred in setting
mandatory terms and conditions for the proposed project. An agency may
request, in writing, along with any supporting documentation an
extension of this 60-day period.
(2) Rejected, withdrawn or dismissed applications. The Director of
the Office of Hydropower Licensing (Director) will, by letter, notify
each fish and wildlife agency if a section 30(c) application is
rejected, withdrawn or dismissed. Within 60 days from the date of
notification, a fish and wildlife agency must file with the Commission a
cost statement of the reasonable costs the agency incurred prior to the
date the application was rejected, withdrawn, or dismissed. An agency
may submit a written request for an extension of this 60-day period
along with any supporting documentation.
(b) If an agency has not submitted a cost statement or extension
request within the time provided in paragraph (a)(2) of this section, it
waives its right to receive fees for that project pursuant to this
subpart.
(c) Billing. After the Commission receives a cost statement from all
fish and wildlife agencies as required by paragraph (a) of this section,
the Commission will bill the section 30(c) applicant. The bill will
show:
(1) The cost statement submitted to the Commission by each fish and
wildlife agency;
(2) Any amounts already paid by the applicant pursuant to 4.302;
and
(3)(i) The amount due, if the amount already paid by the applicant
pursuant to 4.302 is less than the total of all the cost statements;
or
(ii) The amount to be refunded to the applicant, if the amount
already paid by the applicant pursuant to 4.302 is more than the total
of all the cost statements.
(d) Within 45 days from the date of a bill issued under paragraph (b)
of this section, a section 30(c) applicant must pay in full to the
Commission any remaining amounts due on the cost statements regardless
of whether any of these amounts are in dispute.
(e) Dispute procedures -- (1) When to dispute. Any dispute regarding
the reasonableness of any fish and wildlife agency cost statement must
be made within 45 days from the date of a bill issued under paragraph
(b) of this section.
(2) Assessment of disputed cost statements The burden of showing that
an agency's cost statement is unreasonable is on the applicant.
However, a fish and wildlife agency must supply the disputing applicant
and the Commission with the documentation necessary to support its cost
statement. The Director of the Office of Hydropower Licensing will
determine the reasonableness of a disputed fish and wildlife agency cost
statement. The Director's decision will be in writing. The Director
will notify the disputing applicant and the fish and wildlife agency of
the decision by letter. Any decision of the Director may be appealed by
either party pursuant to 18 CFR 385.1902. In deciding whether or not a
disputed cost statement is reasonable, the Director will review the
application, the disputed cost statement and any other documentation
relating to the particular environmental problems associated with the
disputing applicant's proposed project. The Director will consider such
factors as:
(i) The time the fish and wildlife agency spent reviewing the
application;
(ii) The proportion of the cost statement to the time the fish and
wildlife agency spent reviewing the application;
(iii) Whether the fish and wildlife agency's expenditures conform to
Federal expenditure guidelines for such items as travel, per diem,
personnel, and contracting; and
(iv) Whether the studies conducted by the agency, if any, are
duplicative, limited to the proposed project area, unnecessary to
determine the impacts to or mitigation measures for the particular fish
and wildlife resources affected by the proposed project, or otherwise
unnecessary to set terms and conditions for the proposed project.
(3) Unreasonable cost statements. If the Director determines that a
disputed fish and wildlife agency cost statement is unreasonable, the
disputing applicant and the fish and wildlife agency will be afforded 45
days from the date of notification to attempt to reach an agreement
regarding the reimbursable costs of the agency. If the disputing
applicant and the fish and wildlife agency fail to reach an agreement on
the disputed cost statement within 45 days from the date of
notification, the Director will determine the costs that the agency
should reasonably have incurred.
(f) Refunds. (1) If the amount paid by a section 30(c) applicant
under 4.302 exceeds the total amount of the cost statements submitted
by fish and wildlife agencies under paragraph (a) of this section, the
Commission will notify the Treasury to refund the difference to the
applicant within 45 days from the date of the bill issued to the
applicant under paragraph (b) of this section.
(2) If the amount paid by a section 30(c) applicant exceeds the
amount determined to be reasonable by the Director pursuant to paragraph
(d)(2) of this section, the Commission will notify the Treasury to
refund the difference to the applicant within 45 days of the resolution
of all dispute proceedings.
18 CFR 4.304 Payment.
(a) A payment required under this subpart must be made by check
payable to the United States Treasury. The check must indicate that the
payment is for ECPA Fees.
(b) If a payment required under this subpart is not made within the
time period prescribed for making such payment, interest and penalty
charges will be assessed. Interest and penalty charges will be computed
in accordance with 31 U.S.C. 3717 and 4 CFR part 102.
(c) The Commission will not issue a license or exemption, unless the
applicant has made full payments of any fees due under 4.303(c).
18 CFR 4.305 Enforcement.
(a) The Commision may take any appropriate action permitted by law if
a section 30(c) applicant does not make a payment required under this
subpart. The Commission will not be liable to any fish and wildlife
agency for failure to collect any amounts under this subpart.
(b) If the Commission is unable to collect the full amount due by a
section 30(c) applicant on behalf of more than one agency, the amount
the Commission does collect will be distributed to the agencies on a
pro-rata basis except if an agency's cost statement is greater than its
most recent estimate to the applicant under 4.301(b), then the
difference between the estimate and the cost statement will not be
reimbursed until any amounts owed to other agencies have been paid.
18 CFR 4.305 PART 6 -- SURRENDER OR TERMINATION OF LICENSE
Sec.
6.1 Application for surrender.
6.2 Surrender of license.
6.3 Termination of license.
6.4 Termination by implied surrender.
6.5 Annual charges.
Authority: Secs. 6, 10(i), 13, 41 Stat. 1067, 1068, 1071, as
amended, sec. 309, 49 Stat. 858; 16 U.S.C. 799, 803(i), 806, 825h;
Pub. L. 96-511, 94 Stat. 2812 (44 U.S.C. 3501 et seq.), unless
otherwise noted.
18 CFR 6.1 Application for surrender.
Every application for surrender of a license shall state the reason
therefor; and, except in the case of an application for surrender of a
license for a minor project, or for a transmission line only, shall be
executed by the licensee and filed in the same form and manner as the
application for license, and shall be accompanied by the license and all
amendments thereof. Public notice of such application shall be given at
least 30 days prior to action upon the application.
(Secs. 308 and 309; 49 Stat. 858, 859 (16 U.S.C. 825g, 825h))
(Order No. 570, 42 FR 40191, Aug. 9, 1977)
Cross References: For application for license, general provisions,
see 4.30 to 4.33, inclusive, of this chapter. For application for
license for proposed major project or minor part thereof, see 4.40 to
4.42, inclusive, of this chapter. For application for license for
constructed major project or minor part thereof, see 4.50 and 4.51 of
this chapter. For forms for application for licenses, see 131.2 to
131.6, inclusive, of this chapter.
18 CFR 6.2 Surrender of license.
Licenses may be surrendered only upon the fulfillment by the licensee
of such obligations under the license as the Commission may prescribe,
and, if the project works authorized under the license have been
constructed in whole or in part, upon such conditions with respect to
the disposition of such works as may be determined by the Commission.
Where project works have been constructed on lands of the United States
the licensee will be required to restore the lands to a condition
satisfactory to the Department having supervision over such lands and
annual charges will continue until such restoration has been
satisfactorily completed.
(Order 175, 19 FR 5217, Aug. 18, 1954)
18 CFR 6.3 Termination of license.
Licenses may be terminated by written order of the Commission not
less than 90 days after notice thereof shall have been mailed to the
licensee by certified mail to the last address whereof the Commission
has been notified by the licensee, if there is failure to commence
actual construction of the project works within the time prescribed in
the license, or as extended by the Commission. Upon like notice, the
authority granted under a license with respect to any separable part of
the project works may be terminated if there is failure to begin
construction of such separable part within the time prescribed or as
extended by the Commission.
(Administrative Procedure Act, 5 U.S.C. 551-557 (1976); Federal
Power Act, as amended, 16 U.S.C. 291-628 (1976 & Supp. V 1981), Dept.
of Energy Organization Act 42 U.S.C. 7101-7352 (Supp. V 1981); E.O.
12009, 3 CFR 142 (1978))
(Order 141, 12 FR 8491, Dec. 19, 1947, as amended by Order 344, 48 FR
49010, Oct. 24, 1983)
18 CFR 6.4 Termination by implied surrender.
If any licensee holding a license subject to the provisions of
section 10(i) of the Act shall cause or suffer essential project
property to be removed or destroyed, or become unfit for use, without
replacement, or shall abandon, or shall discontinue good faith operation
of the project for a period of three years, the Commission will deem it
to be the intent of the licensee to surrender the license; and not less
than 90 days after public notice may in its discretion terminate the
license.
(Order 141, 12 FR 8491, Dec. 19, 1947)
18 CFR 6.5 Annual charges.
Annual charges arising under a license surrendered or terminated
shall continue until the effective date set forth in the Commission's
order with respect to such surrender or termination.
(Order 175, 19 FR 5217, Aug. 18, 1954)
Cross Reference: For annual charges, see part 11 of this chapter.
18 CFR 6.5 PART 8 -- RECREATIONAL OPPORTUNITIES AND DEVELOPMENT AT
LICENSED PROJECTS
Sec.
8.1 Publication of license conditions relating to recreation.
8.2 Posting of project lands as to recreational use and availability
of information.
8.3 Discrimination prohibited.
8.11 Information respecting use and development of public
recreational opportunities.
Authority: 5 U.S.C. 551-557; 16 U.S.C. 791a-825r; 42 U.S.C.
7101-7352.
18 CFR 8.1 Publication of license conditions relating to recreation.
Following the issuance or amendment of a license, the licensee shall
make reasonable efforts to keep the public informed of the availability
of project lands and waters for recreational purposes, and of the
license conditions of interest to persons who may be interested in the
recreational aspects of the project or who may wish to acquire lands in
its vicinity. Such efforts shall include but not be limited to: the
publication of notice in a local newspaper once each week for 4 weeks of
the project's license conditions which relate to public access to and
the use of the project waters and lands for recreational purposes,
recreational plans, installation of recreation and fish and wildlife
facilities, reservoir water surface elevations, minimum water releases
or rates of change of water releases and such other conditions of
general public interest as the Commission may designate in the order
issuing or amending the license.
(Order 299, 30 FR 7313, June 3, 1965)
18 CFR 8.2 Posting of project lands as to recreational use and
availability of information.
(a) Following the issuance or amendment of a license, the licensee
shall post and shall maintain at all points of public access which are
required by the license (or at such access points as are specifically
designated for this purpose by the licensee) and at such other points as
are subsequently prescribed by the Commission on its own motion or upon
the recommendation of a public recreation agency operating in the area
in which the project is located, a conspicuous sign giving the name of
the project and the owner of the project, a statement that it is
licensed by the Commission and the project number, directions to the
areas of the project which are available for public recreation use,
permissible times and activities, and other regulations regarding such
use, and advising that further information may be obtained at local
offices of the licensee in the vicinity of the project. In addition,
the licensee shall post at such locations conspicuous notice that the
recreation facilities are open to all members of the public without
discrimination.
(b) The licensee shall make available for inspection at its local
offices in the vicinity of the project the recreation plan approved by
the Commission and the entire license instrument, properly indexed for
easy reference to the license conditions designated for publications in
8.1.
(Order 299, 30 FR 7313, June 3, 1965, as amended by Order 341, 32 FR
6488, Apr. 27, 1967; 32 FR 11640, Aug. 11, 1967)
18 CFR 8.3 Discrimination prohibited.
Every licensee maintaining recreation facilities for the use of the
public at a licensed project, or employing or permitting any other
person to maintain such facilities, shall permit, or require such other
person to permit, equal and unobstructed use of such facilities to all
members of the public without regard to race, color, religious creed or
national origin.
(Order 341, 32 FR 6488, Apr. 27, 1967)
18 CFR 8.11 Information respecting use and development of public
recreational opportunities.
(a) Applicability. (1) Except as provided in paragraph (b) of this
section, each licensee of a project under major or minor Commission
license shall prepare with respect to each development within such
project an original and two conformed copies of FERC Form No. 80
prescribed by 141.14 of this chapter and submit them to a Commission
Regional Office pursuant to the requirements in the General Information
portion of the form.
(2) FERC Form No. 80 is due on April 1, 1991, for data compiled
during the calendar year ending December 31, 1990. Thereafter, FERC
Form No. 80 is due on April 1 of every sixth year for data compiled
during the previous calendar year.
(3) The Form No. 80 shall be completed in its entirety for each
initial filing of the report. Filings of Form No. 80 made subsequent
to an initial filing of the report shall be completed only to the extent
necessary to change, delete or add to the information supplied in a
previously-filed form.
(4) A copy of the Form No. 80 should be retained by the respondent
licensee in its file.
(b) Initial Form No. 80 filings. Each licensee of an unconstructed
project shall file an initial Form No. 80 after such project has been
in operation for a full calendar year prior to the filing deadline.
Each licensee of an existing (constructed) project shall file an initial
Form No. 80 after such project has been licensed for a full calendar
year prior to the filing deadline.
(c) Exemptions. A licensee who has filed a Form No. 80 may request
an exemption from any further filing of the form for any development
that has no existing or potential recreational use or only a minor
existing or potential recreational use (as indicated by fewer than 100
recreation days of use during the previous calendar year) by submitting
a statement not later than 6 months prior to the due date for the next
filing, stating that Form No. 80 has been filed previously for such
development and setting out the basis for believing that the development
has no existing or potential recreational use or a minor existing or
potential recreational use.
(Approved by the Office of Management and Budget under control number
1902-0106)
(46 FR 50059, Oct. 9, 1981, as amended by 49 FR 5073, Feb. 10, 1984;
Order 419, 50 FR 20096, May 14, 1985; Order 540, 57 FR 21737, May 22,
1992)
18 CFR 8.11 PART 9 -- TRANSFER OF LICENSE OR LEASE OF PROJECT PROPERTY
Sec.
9.1 Filing.
9.2 Contents of application.
9.3 Transfer.
9.10 Filing.
Authority: Sec. 8, 41 Stat. 1068, sec. 309, 49 Stat. 858; 16
U.S.C. 801, 825h; Pub. L. 96-511, 94 Stat. 2812 (44 U.S.C. 3501 et
seq.)
Cross Reference: For application for approval of transfer of
license, see 131.20 of this chapter.
18 CFR 8.11 Application for Transfer of License
18 CFR 9.1 Filing.
Any licensee desiring to transfer a license or rights thereunder
granted, and the person, association, corporation, State, or
municipality desiring to acquire the same, shall jointly or severally
file an application for approval of such transfer and acquisition. Such
application shall be verified, shall conform to 131.20 of this chapter,
and shall be filed in accordance with 4.31 of this chapter.
(Order 501, 39 FR 2267, Jan. 18, 1974)
18 CFR 9.2 Contents of application.
Every application for approval of such transfer and acquisition by
the proposed transferee shall set forth in appropriate detail the
qualifications of the transferee to hold such license and to operate the
property under license, which qualifications shall be the same as those
required of applicants for license.
(Order 141, 12 FR 8491, Dec. 19, 1947)
Cross References: For administrative rules relating to applicants
for license, see part 385 of this chapter. For regulations as to
licenses and permits, see part 4 of this chapter.
18 CFR 9.3 Transfer.
(a) Approval by the Commission of transfer of a license is contingent
upon the transfer of title to the properties under license, delivery of
all license instruments, and a showing that such transfer is in the
public interest. The transferee shall be subject to all the conditions
of the license and to all the provisions and conditions of the act, as
though such transferee were the original licensee and shall be
responsible for the payment of annual charges which accrue prior to the
date of transfer.
(b) When the Commission shall have approved the transfer of the
license, its order of approval shall be forwarded to the transferee for
acknowledgment of acceptance. Unless application for rehearing is
filed, or unless the order is stayed by the Commission, the order shall
become final thirty (30) days from date of issuance and the
acknowledgment of acceptance shall be filed in triplicate with the
Commission within sixty (60) days from date of issuance accompanied by a
certified copy of the deed of conveyance or other instrument evidencing
transfer of the property under license, together with evidence of the
recording thereof.
(Order 175, 19 FR 5217, Aug. 18, 1954)
18 CFR 9.3 Application for Lease of Project Property
18 CFR 9.10 Filing.
Any licensee desiring to lease the project property covered by a
license or any part thereof, whereby the lessee is granted the exclusive
occupancy, possession, or use of project works for purposes of
generating, transmitting, or distributing power, and the person,
association, or corporation, State, or municipality desiring to acquire
such project property by lease, shall file as many copies of such
proposed lease together with as many copies of the application as
required in accordance with 4.31 of this chapter. Such application and
action thereon by the Commission will, in general, be subject to the
provisions of 9.1 through 9.3.
(Order 501, 39 FR 2267, Jan. 18, 1974)
18 CFR 9.10 PART 11 -- ANNUAL CHARGES UNDER PART I OF THE FEDERAL POWER ACT
18 CFR 9.10 Subpart A -- Charges for Costs of Administration, Use of
Tribal Lands and Other Government Lands, and Use of Government Dams
Sec.
11.1 Costs of administration.
11.2 Use of government lands.
11.3 Use of government dams, excluding pumped storage projects.
11.4 Use of government dams for pumped storage projects, and use of
tribal lands.
11.5 Exemption of minor projects.
11.6 Exemption of State and municipal licensees.
11.7 Effective date.
11.8 Adjustment of annual charges.
18 CFR 9.10 Subpart B -- Charges for Headwater Benefits
11.10 General provision; waiver and exemption; definitions.
11.11 Energy gains method of determining headwater benefits charges.
11.12 Determination of section 10(f) costs.
11.13 Energy gains calculations.
11.14 Procedures for establishing charges without an energy gains
investigation.
11.15 Procedures for determining charges by energy gains
investigations.
11.16 Filing requirements.
11.17 Procedures for payment of charges and costs.
18 CFR 9.10 Subpart C -- General Procedures
11.20 Time for payment.
11.21 Penalties.
Appendix A to Part 11
Authority: 16 U.S.C. 791a-825r; 42 U.S.C. 7101-7352.
18 CFR 9.10 Subpart A -- Charges for Costs of Administration, Use of Tribal Lands and Other Government Lands, and Use of Government Dams
18 CFR 11.1 Costs of administration.
Reasonable annual charges will be assessed by the Commission against
each licensee to reimburse the United States for the costs of
administration of Part I of the Federal Power Act as follows:
(a) For licensees, other than State or municipal, of projects of more
than 2,000 horsepower of installed capacity:
(1) A determination shall be made for each fiscal year of the costs
of administration of Part I of the Federal Power Act chargeable to such
licensees, from which shall be deducted such administrative costs
allocated by the Commission to minor part licenses for which
administrative charges are waived under section 10(i) of the Act and
those fixed by the Commission in determining headwater benefit payments.
(2) For each fiscal year the costs of administration determined under
paragraph (a)(1) of this section will be assessed against such licensee
in the proportion that the annual charge factor for each such project
bears to the total of the annual charge factors under all such
outstanding licenses.
(3) The annual charge factor for each such project shall be found as
follows:
(i) For a conventional project the factor is its authorized installed
capacity (horsepower) plus 150 times its annual energy output in
millions of kilowatt-hours.
(ii) For a pure pumped storage project the factor is the authorized
horsepower.
(iii) For a mixed conventional-pumped storage project the factor is
its authorized installed capacity (horsepower) plus 150 times its gross
annual energy output in millions of kilowatt-hours less 100 times the
annual energy used for pumped storage pumping in millions of
kilowatt-hours.
(4) To enable the Commission to determine such charges annually, each
licensee must file with the Commission, on or before November 1 of each
year, a statement under oath showing the gross amount of power generated
(or produced by nonelectrical equipment) and the amount of power used
for pumped storage pumping by the project during the preceding fiscal
year, expressed in kilowatt hours. If any licensee does not report the
gross energy output of its project within the time specified above, the
Commission's staff will estimate the energy output and this estimate may
be used in lieu of the filings required by this section made by such
licensee after November 1.
(5) No licensee under a license issued prior to August 26, 1935,
shall be required to pay annual charges in an amount greater than that
prescribed in such license.
(b) For State or municipal licensees of projects of more than 100
horsepower of installed capacity:
(1) A determination shall be made for each fiscal year of the cost of
administration under Part I of the Federal Power Act chargeable to such
licensees from which shall be deducted the total amount assessed against
State and municipal licensees holding minor and minor-part licenses.
(2) For each fiscal year such total actual cost of administration as
determined under paragraph (b)(1) of this section will be assessed
against each such licensee in the proportion that the authorized
horsepower installed capacity of each such project bears to the total
such capacity under all such outstanding licenses.
(3) After such assessment each fiscal year, an exemption will be
granted to a licensee to the extent, if any, to which they may be
entitled under section 10(e) of the Act provided the data is submitted
as requested in paragraphs (b)(4) and (5) of this section.
(4) To enable the Commission to compute on the bill for annual
charges the exemption to which such licensee is entitled because of the
use of power by the licensee for State or municipal purposes, each such
licensee must file with the Commission, on or before November 1 of each
year, a statement under oath showing the following information with
respect to the power generated by the project and the disposition
thereof during the preceding fiscal year, expressed in kilowatt-hours:
(i) Gross amount of power generated by the project.
(ii) Amount of power used for station purposes and lost in
transmission, etc.
(iii) Net amount of power available for sale or use by licensee,
classified as follows:
(a) Used by licensee.
(b) Sold by licensee.
(5) When the power from a licensed project owned by a State or
municipality enters into its electric system, making it impracticable to
meet the requirements of paragraph (b)(4) of this section with respect
to the disposition of project power, such licensee may, in lieu thereof,
furnish similar information with respect to the disposition of the
available power of the entire electric system of the licensee.
(c) For licensees of projects of 2,000 horsepower or less of
installed capacity the charge for costs of administration shall be 5
cents per horsepower with a minimum charge of $5 per annum for each such
license except for those licenses for which administrative charges are
waived under section 10(i) of the Act. No licensee under a license
issued prior to August 26, 1935, shall be required to pay annual charges
in an amount greater than that prescribed in such license.
(d) For projects involving transmission lines only the administration
charge shall be a minimum of $5 per annum.
(e) For projects not covered by the above subsections, reasonable
annual charges will be fixed by the Commission after consideration of
the facts in each case.
(f) In making their annual reports to the Commission on their costs
in administering Part I of the Federal Power Act, the United States Fish
and Wildlife Service and the National Marine Fisheries Service are to
deduct any amounts that were deposited into their Treasury accounts
during that year as reimbursements for conducting studies and reviews
pursuant to section 30(e) of the Federal Power Act.
(g) With respect to costs incurred by the Commission, the assessment
of annual charges will be based on an estimate of the costs of
administration of part I of the Federal Power Act that will be incurred
during the fiscal year in which the annual charges are assessed. After
the end of the fiscal year, the assessment will be recalculated based on
the costs of administration that were actually incurred during that
fiscal year; the actual costs will be compared to the estimated costs;
and the difference between the actual and estimated costs will be
carried over as an adjustment to the assessment for the subsequent
fiscal year. The issuance of bills based on the administrative costs
incurred by the Commission during the year in which the bill is issued
will commence in 1993. The annual charge for the administrative costs
that were incurred in fiscal year 1992 will be billed and payable in
1994. At the licensee's option, the charge may be paid in three equal
annual installments in fiscal years 1994, 1995, and 1996, plus any
accrued interest. If the licensee elects the three-year installment
plan, the Commission will accrue interest (at the most recent yield of
two-year Treasury securities) on the unpaid charges and add the accrued
interest to the installments billed in fiscal years 1995 and 1996.
(Sec. 304(a), 49 Stat. 855; 16 U.S.C. 825c(a))
(Order 205, 23 FR 4313, June 13, 1958, as amended by Order 272-A, 29
FR 8059, June 25, 1964; Order 309, 30 FR 15093, Dec. 7, 1965; Order
447, 37 FR 1164, Jan. 26, 1972. Redesignated at 51 FR 24318, July 3,
1986; Order 469, 52 FR 18208, May 14, 1987; Order 487, 52 FR 48406,
Dec. 22, 1987; Order 551, 58 FR 15770, Mar. 24, 1993)
Effective Date Note: At 58 FR 15770, Mar. 24, 1993, 11.1 was
amended by adding paragraph (g), effective April 23, 1993.
18 CFR 11.2 Use of government lands.
(a) Reasonable annual charges for recompensing the United States for
the use, occupancy, and enjoyment of its lands (other than lands
adjoining or pertaining to Government dams or other structures owned by
the United States Government) or its other property, will be fixed by
the Commission. In fixing such charges the Commission may take into
consideration such factors as commercial value, the most profitable use
for which the lands or other property may be suited, the beneficial
purpose for which said lands or other property have been or may be used,
and such other factors as the Commission may deem pertinent.
(b) Pending further order of the Commission and subject to
adjustments as conditions may warrant, annual charges for the use of
government lands will be payable in advance, and will be set on the
basis of the schedule of rental fees for linear rights-of-way as set out
in Appendix A of this part. Annual charges for transmission line
rights-of-way will be equal to the per-acre charges established by the
above schedule. Annual charges for other project lands will be equal to
twice the charges established by the schedule. The Commission, by its
designee the Executive Director, will update its fees schedule to
reflect changes in land values established by the Forest Service. The
Executive Director will publish the updated fee schedule in the Federal
Register.
(c)(1) The annual land use charge payable for the nine month
transition year of the implementation of this rule (1987) will be
payable in three equal installments, with an installment included in the
land use charges bills for 1988, 1989, and 1990.
(2) The charge for one year will equal an amount as computed under
the procedures outlined in this section, or twice the previous full
normal year's bill (not including the installments described in
paragraph (c)(1) of this section), whichever is less.
(d) The minimum annual charge for use of Government lands under any
license will be $25.
(e) No licensee under a license issued prior to August 26, 1935,
shall be required to pay annual charges in an amount greater than that
prescribed in such license, except as may be otherwise provided in the
license.
(Order 560, 42 FR 1229, Jan. 6, 1977; 42 FR 6366, Feb. 2, 1977.
Redesignated at 51 FR 24318, July 3, 1986; Order No. 469, 52 FR 18209,
May 14, 1987; 53 FR 44859, Nov. 7, 1988)
18 CFR 11.3 Use of government dams, excluding pumped storage projects.
(a) General rule. (1) Any licensee whose non-Federal project uses a
Government dam or other structure for electric power generation and
whose annual charges are not already specified in final form in the
license must pay the United States an annual charge for the use of that
dam or other structure as determined in accordance with this section.
Payment of such annual charge is in addition to any reimbursement paid
by a licensee for costs incurred by the United States as a direct result
of the licensee's project development at such Government dam.
(2) Any licensee that is obligated under the terms of a license
issued on or before September 16, 1986 to pay specified annual charges
for the use of a Government dam must continue to pay the annual charges
prescribed in the project license pending any readjustment of the annual
charge for the project made pursuant to section 10(e) of the Federal
Power Act.
(b) Graduated flat rates. Annual charges for the use of Government
dams or other structures owned by the United States are 1 mill per
kilowatt-hour for the first 40 gigawatt-hours of energy a project
produces, 1 1/2 mills per kilowatt-hour for over 40 up to and including
80 gigawatt-hours, and 2 mills per kilowatt-hour for any energy the
project produces over 80 gigawatt-hours.
(c) Information reporting. (1) Except as provided in paragraph
(c)(2) of this section, each licensee must file with the Commission, on
or before November 1 of each year, a sworn statement showing the gross
amount of energy generated during the preceding fiscal year and the
amount of energy provided free of charge to the Government. The
determination of the annual charge will be based on the gross energy
production less the energy provided free of charge to the Government.
(2) A licensee who has filed these data under another section of part
11 or who has submitted identical data with FERC or the Energy
Information Administration for the same fiscal year is not required to
file the information described in paragraph (c)(1) of this section.
Referenced filings should be identified by company name, date filed,
docket or project number, and form, number.
(d) Credits. A licensee may file a request with the Director of the
Office of Hydropower Licensing for a credit for contractual payments
made for construction, operation, and maintenance of a Government dam at
any time before 30 days after receiving a billing for annual charges
determined under this section. The Director, or his designee, will
grant such a credit only when the licensee demonstrates that a credit is
reasonably justified. The Director, or his designee, shall consider,
among other factors, the contractual arrangements between the licensee
and the Federal agency which owns the dam and whether these arrangements
reveal clearly that substantial payments are being made for power
purposes, relevant legislation, and other equitable factors.
(Order 379, 49 FR 22778, June 1, 1984, as amended by Order 379-A, 49
FR 33862, Aug. 27, 1984. Redesignated at 51 FR 24318, July 3, 1986;
Order No. 469, 52 FR 18209, May 14, 1987; 52 FR 33802, Sept. 8, 1987;
53 FR 44859, Nov. 7, 1988)
18 CFR 11.4 Use of government dams for pumped storage projects, and use
of tribal lands.
(a) General Rule. The Commission will determine on a case-by-case
basis under section 10(e) of the Federal Power Act the annual charges
for any pumped storage project using a Government dam or other structure
and for any project using tribal lands within Indian reservations.
(b) Information reporting. (1) Except as provided in paragraph
(b)(2) of this section a Licensee whose project includes pumped storage
facilities must file with the Commission, on or before November 1 of
each year, a sworn statement showing the gross amount of energy
generated during the preceding fiscal year, and the amount of energy
provided free of charge to the Government, and the amount of energy used
for pumped storage pumping.
(2) A licensee who has filed these data under another section of part
11 or who has submitted identical data with FERC or the Energy
Information Administration for the same fiscal year is not required to
file the information required in paragraph (b)(1) of this section.
Referenced filings should be identified by company name, date filed,
docket or project number, and form number.
(c) Commencing in 1993, the annual charges for any project using
tribal land within Indian reservations will be billed during the fiscal
year in which the land is used, for the use of that land during that
year.
(Order 379, 49 FR 22778, June 1, 1984. Redesignated at 51 FR 24318,
July 3, 1986; Order 469, 52 FR 18209, May 14, 1987; 52 FR 33802, Sept.
8, 1987; Order 551, 58 FR 15770, Mar. 24, 1993)
Effective Date Note: At 58 FR 15770, Mar. 24, 1993, 11.4 was
amended by adding paragraph (c), effective April 23, 1993.
18 CFR 11.5 Exemption of minor projects.
No exemption will be made from payment of annual charges for the use
of Government dams or tribal lands within Indian reservations but
licenses may be issued without charges other than for such use for the
development, transmission, or distribution of power for domestic,
mining, or other beneficial use in minor projects.
(Order 141, 12 FR 8492, Dec. 19, 1947. Redesignated by Order 379, 49
FR 22778, June 1, 1984. Redesignated at 51 FR 24318, July 3, 1986)
18 CFR 11.6 Exemption of State and municipal licensees.
(a) Bases for exemption. A State or municipal licensee may claim
total or partial exemption upon one or more of the following grounds:
(1) The project was primarily designed to provide or improve
navigation;
(2) To the extent that power generated, transmitted, or distributed
by the project was sold directly or indirectly to the public (ultimate
consumer) without profit;
(3) To the extent that power generated, transmitted, or distributed
by the project was used by the licensee for State or municipal purposes.
(b) Projects primarily for navigation. No State or municipal
licensee shall be entitled to exemption from the payment of annual
charges on the ground that the project was primarily designed to provide
or improve navigation unless the licensee establishes that fact from the
actual conditions under which the project was constructed and was
operated during the calendar year for which the charge is made.
(c) State or municipal use. A State or municipal licensee shall be
entitled to exemption from the payment of annual charges for the project
to the extent that power generated, transmitted, or distributed by the
project is used by the licensee itself for State or municipal purposes,
such as lighting streets, highways, parks, public buildings, etc., for
operating licensee's water or sewerage system, or in performing other
public functions of the licensee.
(d) Sales to public. No State or municipal licensee shall be
entitled to exemption from the payment of annual charges on the ground
that power generated, transmitted, or distributed by the project is sold
to the public without profit, unless such licensee shall show:
(1) That it maintains an accounting system which segregates the
operations of the licensed project and reflects with reasonable accuracy
the revenues and expenses of the project;
(2) That an income statement, prepared in accordance with the
Commission's Uniform System of Accounts, shows that the revenues from
the sale of project power do not exceed the total amount of operating
expenses, maintenance, depreciation, amortization, taxes, and interest
on indebtedness, applicable to the project property. Periodic accruals
or payments for redemption of the principal of bonds or other
indebtedness may not be deducted in determining the net profit of the
project.
(e) Sales for resale. Notwithstanding compliance by a State or
municipal licensee with the requirements of paragraph (d) of this
section, it shall be subject to the payment of annual charges to the
extent that electric power generated, transmitted, or distributed by the
project is sold to another State, municipality, person, or corporation
for resale, unless the licensee shall show that the power was sold to
the ultimate consumer without profit. The matter of whether or not a
profit was made is a question of fact to be established by the licensee.
(f) Interchange of power. Notwithstanding compliance by a State or
municipal licensee with the requirements of paragraph (d) of this
section, it shall be subject to the payment of annual charges to the
extent that power generated, transmitted, or distributed by the project
was supplied under an interchange agreement to a State, municipality,
person, or corporation for sale at a profit (which power was not offset
by an equivalent amount of power received under such interchange
agreement) unless the licensee shall show that the power was sold to
ultimate consumers without profit.
(g) Construction period. During the period when the licensed project
is under construction and is not generating power, it will be considered
as operating without profit within the meaning of this section, and
licensee will be entitled to total exemption from the payment of annual
charges, except as to those charges relating to the use of a Government
dam or tribal lands within Indian reservations.
(h) Optional showing. When the power from the licensed project
enters into the electric power system of the State or municipal
licensee, making it impracticable to meet the requirements set forth in
this section with respect to the operations of the project only, such
licensee may, in lieu thereof, furnish the same information with respect
to the operations of said electric power system as a whole.
(i) Application for exemption. Application for exemption from
payment of annual charges shall be prepared on forms prescribed by the
Commission and shall be signed by an authorized executive officer or
chief accounting officer of the licensee and verified under oath. An
original and three copies of such application shall be filed with the
Commission within the time allowed (by 11.28) for the payment of the
annual charges: Provided, however, That if the licensee shall within
the time allowed for the payment of the annual charges file notice that
it intends to file application for exemption, an additional period of 30
days is allowed within which to complete and file the application for
exemption.
(Order 143, 13 FR 6681, Nov. 13, 1948. Redesignated and amended by
Order 379, 49 FR 22778, June 1, 1984. Redesignated at 51 FR 24318, July
3, 1986)
Cross Reference: For form of application by municipalities for
exemption from payment of annual charges, see 131.70 of this chapter.
18 CFR 11.7 Effective date.
All annual charges imposed under this subpart will be computed
beginning on the effective date of the license unless some other date is
fixed in the license.
(51 FR 24318, July 3, 1986)
18 CFR 11.8 Adjustment of annual charges.
All annual charges imposed under this subpart continue in effect as
fixed unless changed as authorized by law.
(51 FR 24318, July 3, 1986)
18 CFR 11.8 Subpart B -- Charges for Headwater Benefits
Source: 51 FR 24318, July 3, 1986, unless otherwise noted.
18 CFR 11.10 General provision; waiver and exemptions; definitions.
(a) Headwater benefits charges. (1) The Commission will assess or
approve charges under this subpart for direct benefits derived from
headwater projects constructed by the United States, a licensee, or a
pre-1920 permittee. Charges under this subpart will amount to an
equitable part of the annual costs of interest, maintenance, and
depreciation expenses of such headwater projects and the costs to the
Commission of determining headwater benefits charges. Except as
provided in paragraph (b) of this section, the owner of any non-Federal
downstream project that receives headwater benefits must pay charges
determined under this subpart.
(2) Headwater benefits are the additional electric generation at a
downstream project that results from regulation of the flow of the river
by the headwater, or upstream, project, usually by increasing or
decreasing the release of water from a storage reservoir.
(b) Waiver and exemptions. The owner of a downstream project with
installed generating capacity of 1.5 MW (2000 horsepower) or less or for
which the Commission has granted an exemption from section 10(f) is not
required to pay headwater benefits charges.
(c) Definitions. For purposes of this subpart:
(1) Energy gains means the difference between the number of
kilowatt-hours of energy produced at a downstream project with the
headwater project and that which would be produced without the headwater
project.
(2) Generation means gross generation of electricity at a
hydroelectric project, including generation needed for station use or
the equivalent for direct drive units, measured in kilowatt-hours. It
does not include energy used for or derived from pumping in a pumped
storage facility.
(3) Headwater project costs means the total costs of an upstream
project constructed by the United States, a licensee, or pre-1920
permittee.
(4) Separable cost means the difference between the cost of a
multiple-function headwater project with and without any particular
function.
(5) Remaining benefits means the difference between the separable
cost of a specific function in a multiple-function project and the
lesser or:
(i) The benefits of that function in the project, as determined by
the responsible Federal agency at the time the project or function was
authorized; or
(ii) The cost of the most likely alternative single-function project
providing the same benefits.
(6) Joint-use cost means the difference between the total project
cost and the total separable costs. Joint-use costs are allocated among
the project functions according to each function's percentage of the
total remaining benefits.
(7) Specific power cost means that portion of the headwater project
costs that is directly attributable to the function of power generation
at the headwater project, including, but not limited to, the cost of the
electric generators, turbines, penstocks, and substation.
(8) Joint-use power cost means the portion of the joint-use cost
allocated to the power function of the project.
(9) Section 10(f) costs means the annual interest, depreciation, and
maintenance expense portion of the joint-use power cost, including costs
of non-power functions required by statute to be paid by revenues from
the power function.
(10) Party means:
(i) The owner of a non-Federal downstream hydroelectric project which
is directly benefited by a headwater project constructed by the United
States, a licensee, or a pre-1920 permittee;
(ii) The owner of a headwater project constructed by the United
States, a licensee, or a pre-1920 permittee;
(iii) An operating agency of, or an agency marketing power from, a
headwater project constructed by the United States; or
(iv) Any party, as defined in 385.102(c) of this chapter.
(11) Final charge means a charge assessed on an annual basis to
recover section 10(f) costs and which represents the final determination
of the charge for the period for which headwater benefits are assessed.
Final charges may be established retroactively, to finalize an interim
charge, or prospectively.
(12) Interim charge means a charge assessed to recover section 10(f)
costs for a specified period of headwater benefits pending determination
of a final charge for that period.
(13) Investment cost means the sum of:
(i) Project construction costs, including cost of land, labor and
materials, cost of pre- and post-authorization investigations, and cost
of engineering, supervision, and administration during construction of
the project; and
(ii) Interest during construction.
18 CFR 11.11 Energy gains method of determining headwater benefits
charges.
(a) Applicability. This section applies to any determination of
headwater benefits charges, unless:
(1) The Commission has approved headwater benefits charges pursuant
to an existing coordination agreement among the parties;
(2) The parties reach, and the Commission approves, a settlement with
respect to headwater benefits charges, pursuant to 11.14(a) of this
subpart; or
(3) Charges may be assessed under 11.14(b).
(b) General rule -- (1) Summary. Except as provided in paragraph
(b)(3) of this section, a headwater benefits charge for a downstream
project is determined under this subpart by apportioning the section
10(f) costs of the headwater project among the headwater project and all
downstream projects that are not exempt from or waived from headwater
benefits charges under 11.10(b) of this chapter, according to each
project's share of the total energy benefits to those projects resulting
from the headwater project.
(2) Calculation; headwater benefits formula. The annual headwater
benefits charge for a downstream project is derived by multiplying the
section 10(f) cost by the ratio of the energy gains received by the
downstream project to the sum of total energy gains received by all
downstream projects (except those projects specified in 11.10(b) of
this chapter) plus the energy generated at the headwater project that is
assigned to the joint-use power cost, as follows:
In which:
P=annual payment to be made for headwater benefits received by a
downstream project,
Cp=annual section 10(f) cost of the headwater project,
En=annual energy gains received at a downstream project, or group of
projects if owned by one entity,
Ed=annual energy gains received at all downstream projects (except
those specified in 11.10(b) of this chapter), and
Ej=portion of the annual energy generated at the headwater project
assigned to the joint-use power cost.
(3) If power generation is not a function of the headwater project,
section 10(f) costs will be apportioned only among the downstream
projects.
(4) If the headwater project is constructed after the downstream
project, liability for headwater benefits charges will accrue beginning
on the day on which any energy losses at the downstream project due to
filling the headwater reservoir have been offset by subsequent energy
gains. If the headwater project is constructed prior to the downstream
project, liability for headwater benefits charges will accrue beginning
on the day on which benefits are first realized by the downstream
project.
(5) No final charge assessed by the Commission under this subpart may
exceed 85 percent of the value of the energy gains. If a party
demonstrates, within the time specified in 11.17(b)(3) for response to
a preliminary assessment, that any final charge assessed under this
subpart, not including the cost of the investigation assessed under
11.17(c), exceeds 85 percent of the value of the energy gains provided
to the downstream project for the period for which the charge is
assessed, the Commission will reduce the charge to not more than 85
percent of the value. For purposes of this paragraph, the value of the
energy gains is the cost of obtaining an equivalent amount of
electricity from the most likely alternative source during the period
for which the charge is assessed.
18 CFR 11.12 Determination of section 10(f) costs.
(a) for non-Federal headwater projects. If the headwater project was
constructed by a licensee or pre-1920 permittee and a party requests the
Commission to determine charges, the Commission will determine on a
case-by-case basis what portion of the annual interest, maintenance, and
depreciation costs of the headwater project constitutes the section
10(f) costs, for purposes of this subpart.
(b) For Federal headwater projects. (1) If the headwater project was
constructed or is operated by the United States, and the Commission has
not approved a settlement between the downstream project owner and the
headwater project owner, the section 10(f) cost will be determined by
deriving, from information provided by the headwater project owner
pursuant to 11.16 of this subpart, the joint-use power cost and the
portion of the annual joint-use power cost that represents the interest,
maintenance, and depreciation costs of the project.
(2) If power is not an authorized function of the headwater project,
the section 10(f) cost is the annual interest, maintenance, and
depreciation portion of the headwater project costs designated as the
joint-use power cost, derived by deeming a power function at the
project. The value of the benefits assigned to the deemed power
function, for purposes of determining the value of remaining benefits of
the joint-use power cost, is the total value of downstream energy gains
included in the headwater benefits formula.
(3) For purposes of this paragraph, total value of downstream energy
gains means the lesser of:
(i) The cost of generating an equivalent amount of electricity at the
most likely alternative facility at the time the headwater project
became operational; or
(ii) The incremental cost of installing electrical generation at the
headwater project at the time the project became operational.
18 CFR 11.13 Energy gains calculations.
(a) Energy gains at a downstream project. (1) Energy gains at a
downstream project are determined by simulating operation of the
downstream project with and without the effects of the headwater
project. Except for determinations which are not complex or in which
headwater benefits are expected to be small, calculations will be made
by application of the Headwater Benefits Energy Gains Model, as
presented in The Headwater Benefits Energy Gains (HWBEG) Model
Description and Users Manual, which is available for the National
Technical Information Service, U.S. Department of Commerce, 5285 Port
Royal Road, Springfield, VA 22161.
(2) If more than one headwater project provide energy gains to a
downstream project, the energy gains at the dowstream project are
attributed to the headwater projects according to the time sequence of
commencement of operation in which each headwater project provided
energy gains at the downstream project, by:
(i) Crediting the headwater project that is first in time with the
amount of energy gains that it provided to the downstream project prior
to operation of the headwater project that is next in time; and
(ii) Crediting any subsequent headwater project with the additional
increment of energy gains provided by it to the downstream project.
(3) Annual energy losses at a downstream project, or group of
projects owned by the same entity, that are attributable to the
headwater project will be subtracted from energy gains for the same
annual period at the downstream project or group of projects. A net
loss in one calendar year will be subtracted from net gains in
subsequent years until no net loss remains.
(b) Energy generated at the headwater project. (1) Except as
provided in paragraphs (b)(2) and (b)(3) of this section, the portion of
the total annual energy generation at the headwater project that is to
be attributed to the joint-use power cost is derived by multiplying the
total annual generation at the headwater project and the ratio of the
project investment cost assigned to the joint-use power cost to the sum
of the investment cost assigned to both the specific power cost and the
joint-use power cost of the headwater project, as follows:
In which:
Ej=annual energy generated at the headwater project to be attributed
to the joint-use power cost,
E=total annual generation at the headwater project,
Cj=project investment costs assigned to the joint-use power cost, and
Cs=project investment costs assigned to specific power costs.
(2) If the headwater project contains a pumped storage facility,
calculation of the portion of the total annual energy generation at the
headwater project that is attributable to the joint-use power cost will
be determined on a case-by-case basis.
(3) If no power is generated at the headwater project, the amount of
energy attributable to the joint-use power cost under this section is
the total of all downstream energy gains included in the headwater
benefits formula.
18 CFR 11.14 Procedures for establishing charges without an energy
gains investigation.
(a) Settlements. (1) Owners of downstream and headwater projects
subject to this subpart may negotiate a settlement for headwater
benefits charges. Settlements must be filed with the Commission for its
approval, according to the provisions of 385.602.
(2) If the headwater project is a Federal project, any settlement
under this section must result in headwater benefits payments that
approximate those that would result under the energy gains method.
(b) Continuation of previous headwater benefits determinations. (1)
For any downstream project being assessed headwater benefit charges on
or before September 16, 1986, the Commission will continue to assess
charges to that project on the same basis until changes occur in the
river basin, including hydrology or project development, that affect
headwater benefits.
(2) Any procedures that apply to 11.17(b)(5) of this subpart will
apply to any prospectively fixed charges that are continued under this
paragraph.
18 CFR 11.15 Procedures for determining charges by energy gains
investigation.
(a) Purpose of investigations; limitation. Except as permitted under
11.14, the Commission will conduct an investigation to obtain
information for establishing headwater benefits charges under this
subpart. The Commission will investigate and determine charges for a
project downstream from a non-Federal headwater project only if the
parties are unable to agree to a settlement and one of the parties
requests the Commission to determine charges.
(b) Notification. The Commission will notify each downstream project
owner and each headwater project owner when it initiates an
investigation under this section, and the period of project operations
to be studied will be specified. An investigation will continue until a
final charge has been established for all years studied in the
investigation.
(c) Jurisdictional objections. If any project owner wishes to object
to the assessment of a headwater benefits charge on jurisdictional
grounds, such objection must:
(1) Be raised within 30 days after the notice of the investigation is
issued; and
(2) State in detail the grounds for its objection.
(d) Investigations. (1) For any downstream project for which a final
charge pursuant to an investigation has never been established, the
Commission will conduct an initial investigation to determine a final
charge.
(2) The Commission may, for good cause shown by a party or on its own
motion, initiate a new investigation of a river basin to determine
whether, because of any change in the hydrology, project development, or
other characteristics of the river basin that effects headwater
benefits, it should:
(i) Establish a new final charge to replace a final charge previously
established under 11.17(b)(5); or
(ii) Revise any variable of the headwater benefits formula that has
become a constant in calculating a final charge.
(3) Scope of investigations. (i) The Commission will establish a
final charge pursuant to an investigation based on information available
to the Commission through the annual data submission requirements of
11.16, if such information is adequate to establish a reasonably
accurate final charge.
(ii) If the information available to the Commission is not sufficient
to provide a reasonably accurate calculation of the final charge, the
Commission will request additional data and conduct any studies,
including studies of the hydrology of the river basin and project
operations, that it determines necessary to establish the charge.
18 CFR 11.16 Filing requirements.
(a) Applicability. (1) Any party subject to a headwater benefits
determination under this subpart must supply project-specific data, in
accordance with this section, by February 1 of each year for data from
the preceding calendar year.
(2) Within 30 days of notice of initiation of an investigation under
11.15, a party must supply project-specific data, in accordance with
this section, for the years specified in the notice.
(b) Data required from owner of the headwater project. The owner of
any headwater project constructed by the United States, a licensee, or a
pre-1920 permittee that is upstream from a non-Federal hydroelectric
project must submit the following:
(1) Name and location of the headwater project, including the name of
the stream on which it is located.
(2) The total nameplate rating of installed generating capacity of
the project, expressed in kilowatts, with the portion of total capacity
that represents pumped storage generating capacity separately
designated.
(3) A description of the total storage capacity of the reservoir and
allocation of storage capacity to each of its functions, such as dead
storage, power storage, irrigation storage, and flood control storage.
Identification, by reservoir elevation, of the portion of the reservoir
assigned to each of its respective storage functions.
(4) An elevation-capacity curve, or a tabulation of reservoir pool
elevations with corresponding reservoir storage capacities.
(5) A copy of rule curves, coordination contracts, agreements, or
other relevant data governing the release of water from the reservoir,
including a separate statement of their effective dates.
(6) A curve or tabulation showing actual reservoir pool elevations
throughout the immediately preceding calendar year and for each year
included in an investigation.
(7) The total annual gross generation of the hydroelectric plant in
kilowatt-hours, not including energy from pumped storage operation.
(8) The total number of kilowatt-hours of energy produced from pumped
storage operation.
(9) The investigation costs attributed to the power generation
function of the project as of the close of the calendar year or at a
specified date during the year, categorized according to that portion
that is attributed to the specific power costs, and that portion that is
attributed to the joint-use power costs.
(10) The portion of the joint-use power cost, and other costs
required by law to be allocated to joint-use power cost, each item shown
separately, that are attributable to the annual costs of interest,
maintenance, and depreciation, identifying the annual interest rate and
the method used to compute the depreciation charge, or the interest rate
and period used to compute amortization if used in lieu of depreciation,
including any differing interest rates used for major replacements or
rehabilitation.
(c) Data required from owners of downstream projects. The owner of
any hydroelectric project which is downstream from a headwater project
constructed by the United States, a licensee, or pre-1920 permittee must
submit the following:
(1) Name and location of the downstream project, including the name
of the stream on which it is located.
(2) Total nameplate rating of the installed generating capacity of
the plant, expressed in kilowatts, with the portion of total capacity
that represents pumped storage generating capacity separately
designated.
(3) Record of daily gross generation, not including energy used for
pumped storage, and any unit outage which may have occurred.
(4) The total number of kilowatt-hours of energy produced from pumped
storage operation.
(d) Abbreviated data submissions. (1) For those items in paragraphs
(b) and (c) of this section in which data for the current period are the
same as data furnished for a prior period, the data need not be
resubmitted if the owner identifies the last period for which the data
were reported.
(2) The Commission will notify the project owner that certain data
items in paragraphs (b) and (c) are no longer required to be submitted
annually if:
(i) A variable in the headwater benefits formula has become a
constant; or
(ii) A prospective final charge, as described in 11.17(b)(5), has
been established.
(e) Additional data. Owners of headwater projects or downstream
projects must furnish any additional data required by the Commission
staff under paragraph (a) of this section and may provide other data
which they consider relevant.
18 CFR 11.17 Procedures for payment of charges and costs.
(a) Payment for benefits from a non-Federal headwater project. Any
billing procedures and payments determined between a non-Federal
headwater project owner and a downstream project owner will occur
according to the agreement of those parties.
(b) Charges and payment for benefits from a Federal headwater
project.
(1) Interim charges. (i) If the Commission has not established a
final charge and an investigation is pending, the Commission will issue
a downstream project owner a bill for the interim charge and costs and a
staff report explaining the calculation of the interim charge.
(ii) An interim charge will be a percentage of the estimate by the
Commission staff of what the final charge will be, as follows:
(A) 100 percent of the estimated final charge if the Commission
previously has completed an investigation of the project for which it is
assessed; or
(B) 80 percent of the estimated final charge if the Commission has
not completed an investigation of the project for which it is assessed.
(iii) When a final charge is established for a period for which an
interim charge was paid, the Commission will apply the amount paid to
the final charge.
(2) Preliminary assessment of a final charge. Unless the project
owner was assessed a final charge in the previous year, the Commission
will issue to the downstream project owner a preliminary assessment of
any final charge when it is determined. A staff technical report
explaining the basis of the assessment will be enclosed with the
preliminary assessment. Copies of the preliminary assessment will be
mailed to all parties.
(3) Opportunity to respond. After issuance of a preliminary
assessment of a final charge, parties may respond in writing within 60
days after the preliminary assessment.
(4) Order and bill. (i) After the opportunity for written response
by the parties to the preliminary assessment of a final charge, the
Commission will issue to the downstream project owner an order
establishing the final charge. Copies of the order will be mailed to
all parties. A bill will be issued for the amount of the final charge
and costs.
(ii) If a final charge is not established prospectively under
paragraph (b)(5) of this section, the Commission will issue an order and
a bill for the final charge and costs each year until prospective final
charges are established. After the Commission issues an order
establishing a prospective final charge, a bill will be issued annually
for the amount of the final charge and costs.
(5) Prospective final charges. When the Commission determines that
historical data, including the hydrology, development, and other
characteristics of the river basin, demonstrate sufficient stability to
project average energy gains and section 10(f) costs, the Commission
will issue to the downstream project owner an order establishing the
final charge from future years. Copies of the order will be mailed to
all parties. The prospective final charge will remain in effect until a
new investigation is initiated under 11.15(d)(2).
(6) Payment under protest. Any payment of a final charge required by
this section may be made under protest if a party is also appealing the
final charge pursuant to 385.1902, or requesting rehearing. If payment
is made under protest, that party will avoid any penalty for failure to
pay under 11.21.
(7) Accounting for payments pending appeal or rehearing. The
Commission will retain any payment received for final charges from bills
issued pursuant to this section in a special account. No disbursements
to the U.S. Treasury will be made from the account until 31 days after
the bill is issued. If an appeal under 385.1902 or a request for
rehearing is filed by any party, no disbursements to the U.S. Treasury
will be made until final disposition of the appeal or request for
rehearing.
(c) Charges for costs of determinations of headwater benefits
charges. (1) Any owner of a downstream project that benefits from a
Federal headwater project must pay to the United States the cost of
making any investigation, study, or determination relating to the
assessment of the relevant headwater benefits charge under this subpart.
(2) If any owner of a headwater or downstream project requests that
the Commission determine headwater benefits charges for benefits
provided by non-Federal headwater projects, the headwater project owners
must pay a pro rata share of 50 percent of the cost of making the
investigation and determination, in proportion to the benefits provided
by their projects, and the downstream project owners must pay a pro rata
share of the remaining 50 percent in proportion to the energy gains
received by their projects.
(3) Any charge assessed under this paragraph is separate from and
will be added to, any final or interim charge under this subpart.
18 CFR 11.17 Subpart C -- General Procedures
18 CFR 11.20 Time and payment.
Annual charges must be paid within 45 days of rendition of a bill by
the Commission, except that annual charges for headwater benefits must
be paid within 30 days of rendition of a bill.
(51 FR 24318, July 3, 1986)
18 CFR 11.21 Penalties.
If any person fails to pay annual charges within the periods
specified in 11.20, a penalty of 5 percent of the total delinquent
amount will be assessed and added to the total charges for the first
month or part of month in which payment is delinquent. An additional
penalty of 3 percent for each full month thereafter will be assessed
until the charges and penalties are satisfied in accordance with law.
The Commission may, by order, waive any penalty imposed by this
subsection, for good cause shown.
(51 FR 24318, July 3, 1986)
18 CFR 11.21 Pt. 11, App. A
18 CFR 11.21 Appendix A to Part 11
(57 FR 48455, Oct. 26, 1992)
18 CFR 11.21 PART 12 -- SAFETY OF WATER POWER PROJECTS AND PROJECT WORKS
18 CFR 11.21 Subpart A -- General Provisions
Sec.
12.1 Applicability.
12.2 Rules of construction.
12.3 Definitions.
12.4 Staff administrative responsibility and supervisory authority.
12.5 Responsibilities of licensee or applicant.
18 CFR 11.21 Subpart B -- Reports and Records
12.10 Reporting safety-related incidents.
12.11 Reporting modifications of the project or project works.
12.12 Maintenance of records.
12.13 Verification form.
18 CFR 11.21 Subpart C -- Emergency Action Plans
12.20 General requirements.
12.21 Exemptions.
12.22 Contents of emergency action plan.
12.23 Time for filing emergency action plan.
12.24 Review and updating of plans.
12.25 Posting and readiness.
18 CFR 11.21 Subpart D -- Inspection by Independent Consultant
12.30 Applicability.
12.31 Definitions.
12.32 General inspection requirement.
12.33 Exemption.
12.34 Approval of independent consultant.
12.35 Specific inspection requirements.
12.36 Emergency corrective measures.
12.37 Report of the independent consultant.
12.38 Time for inspections and reports.
12.39 Taking corrective measures after the report.
18 CFR 11.21 Subpart E -- Other Responsibilities of Applicant or
Licensee
12.40 Quality control programs.
12.41 Monitoring instruments.
12.42 Warning and safety devices.
12.43 Power and communication lines and gas pipelines.
12.44 Testing spillway gates.
Authority: Federal Power Act, as amended, 16 U.S.C. 792-828c (1982);
Department of Energy Organization Act, 42 U.S.C. 7101-7352 (1982);
E.O. 12009, 3 CFR 142 (1978).
Source: Order 122, 46 FR 9036, Jan. 28, 1981, unless otherwise
noted.
18 CFR 11.21 Subpart A -- General Provisions
18 CFR 12.1 Applicability.
(a) Except as otherwise provided in this part or ordered by the
Commission or its authorized representative, the provisions of this part
apply to:
(1) Any project licensed under Part I of the Federal Power Act;
(2) Any unlicensed constructed project for which the Commission has
determined that an application for license must be filed under Part I of
the Act; and
(3) Any project exempted from licensing under Part I of the Federal
Power Act, pursuant to subparts J or K of part 4 of this chapter, to the
extent that the Commission has conditioned the exemption on compliance
with any particular provisions of this part.
(b) The provisions of this part apply to a project that uses a
Government dam only with respect to those project works, lands, and
waters specifically licensed by the Commission.
18 CFR 12.2 Rules of construction.
(a) If any term, condition, article, or other provision in a project
license is similar to any provision of this part, the licensee must
comply with the relevant provision of this part, unless the Commission
or the Director of the Office of Hydropower Licensing determines that
compliance with the relevant provision of the license will better
protect life, health, or property.
(b) A licensee may request from the Director of the Office of
Hydropower Licensing a ruling on the applicability to its actions of any
provision of its license that is similar to a provision of this part. A
ruling by the Director may be appealed under 385.207 of this chapter.
(Order 122, 46 FR 9036, Jan. 28, 1981, as amended by Order 225, 47 FR
19056, May 3, 1982; 49 FR 29370, July 20, 1984)
18 CFR 12.3 Definitions.
(a) General rule. For purposes of this part, terms defined in
section 3 of the Federal Power Act, 16 U.S.C. 796, have the same meaning
as they have under the Act.
(b) Definitions. The following definitions apply for the purposes of
this part:
(1) Applicant means any person, state, or municipality that has
applied for a license for an unlicensed, constructed project and any
owner of an unlicensed, constructed project for which the Commission has
determined that an application for license must be filed.
(2) Owner means any person, state, or municipality, or combination
thereof, that has a real property interests in a water power project
sufficient to operate and maintain the project works.
(3) Authorized Commission representative means the Director of the
Office of Hydropower Licensing, the Director of the Division of
Inspections, the Regional Engineer, or any other member of the
Commission staff whom the Commission may specifically designate.
(4) Condition affecting the safety of a project or project works
means any condition, event, or action at the project which might
compromise the safety, stability, or integrity of any project work or
the ability of any project work to function safely for its intended
purposes, including navigation, water power development, or other
beneficial public uses; or which might otherwise adversely affect life,
health, or property. Conditions affecting the safety of a project or
project works include, but are not limited to:
(i) Unscheduled rapid draw-down of impounded water;
(ii) Failure of any facility that controls the release or storage of
impounded water, such as a gate or a valve;
(iii) Failure or unusual movement, subsidence, or settlement of any
part of a project work;
(iv) Unusual concrete deterioration or cracking, including
development of new cracks or the lengthening or widening of existing
cracks;
(v) Piping, slides, or settlements of materials in any dam, abutment,
dike, or embankment;
(vi) Significant slides or settlements of materials in areas adjacent
to reservoirs;
(vii) Significant damage to slope protection;
(viii) Unusual instrumentation readings;
(ix) New seepage or leakage or significant gradual increase in
pre-existing seepage or leakage;
(x) Sinkholes;
(xi) Significant instances of vandalism or sabotage;
(xii) Natural disasters, such as floods, earthquakes, or volcanic
activity;
(xiii) Any other signs of instability of any project work.
(5) Constructed project means any project with an existing dam.
(6) Dam means any structure for impounding or diverting water.
(7) Development means that part of a project comprising an
impoundment and its associated dams, forebays, water conveyance
facilities, power plants, and other appurtenant facilities. A project
may comprise one or more developments.
(8) Modification means any activity, including repair or
reconstruction, that in any way changes the physical features of the
project from the state reflected in the plans or drawings or other
documents filed with the Commission.
(9) Project emergency means an impending or actual sudden release of
water at the project caused by natural disaster, accident, or failure of
project works.
(10) Regional Engineer means the person in charge of the Commission's
regional office for the region (Atlanta, Chicago, Fort Worth, New York,
or San Francisco) where a particular project is located.
(11) Act means the Federal Power Act.
(Order 122, 46 FR 9036, Jan. 28, 1981, as amended at 49 FR 29370,
July 20, 1984)
18 CFR 12.4 Staff administrative responsibility and supervisory
authority.
(a) Administrative responsibility. The Director of the Office of
Hydropower Licensing is responsible for administering the Commission's
project safety program and reports directly to the Chairman of the
Federal Energy Regulatory Commission.
(b) Supervisory authority of the Regional Engineer or other
authorized representative. (1) Any water power project and the
construction, operation, maintenance, use, repair, or modification of
any project works are subject to the inspection and the supervision of
the Regional Engineer or any other authorized Commission representative
for the purpose of:
(i) Achieving or protecting the safety, stability, and integrity of
the project works or the ability of any project work to function safely
for its intended purposes, including navigation, water power
development, or other beneficial public uses; or
(ii) Otherwise protecting life, health, or property.
(2) For the purposes set forth in paragraph (b)(1) of this section, a
Regional Engineer or other authorized Commission representative may:
(i) Test or inspect any water power project or project works or
require that the applicant or licensee perform such tests or inspections
or install monitoring instruments;
(ii) Require an applicant or a licensee to submit reports or
information, regarding:
(A) The design, construction, operation, maintenance, use, repair, or
modification of a water power project or project works; and
(B) Any condition affecting the safety of a project or project works
or any death or injury that occurs at, or might be attributable to, the
water power project;
(iii) Require an applicant or a licensee to modify:
(A) Any emergency action plan filed under subpart C of this part; or
(B) Any plan of corrective measures, including related schedules,
submitted after the report of an independent consultant pursuant to
12.37 or any other inspection report;
(iv) Require an applicant or licensee to take any other action with
respect to the design, construction, operation, maintenance, repair,
use, or modification of the project or its works that is, in the
judgment of the Regional Engineer or other authorized Commission
representative, necessary or desirable.
(v) Establish the time for an applicant or licensee to provide a
schedule for or to perform any actions specified in this paragraph.
(c) Appeal, stay, rescission, or amendment of order or directive.
(1) Any order or directive issued under this section or under the
provisions of subparts B through E of this part by a Regional Engineer
or other authorized Commission representative may be appealed to the
Commission under 385.207 of this chapter.
(2) Any order or directive issued under this section by a Regional
Engineer or other authorized Commission representative is immediately
effective and remains in effect until:
(i) The Regional Engineer or other authorized Commission
representative who issued the order or directive rescinds or amends that
order or directive or stays its effect; or
(ii) The Commission stays the effect of the order or directive, or
amends or rescinds the order or directive on appeal.
(3) An appeal or motion for rescission, amendment, or stay of any
order or directive issued under this section must contain a full
explanation of why granting the appeal or the request for rescission or
amendment of the order or directive, or for stay for the period
requested, will not endanger life, health, or property.
(Order 122, 46 FR 9036, Jan. 28, 1981, as amended by Order 225, 47 FR
19056, May 3, 1982; 49 FR 29370, July 20, 1984)
18 CFR 12.5 Responsibilities of licensee or applicant.
A licensee or applicant must use sound and prudent engineering
practices in any action relating to the design, construction, operation,
maintenance, use, repair, or modification of a water power project or
project works.
18 CFR 12.5 Subpart B -- Reports and Records
18 CFR 12.10 Reporting safety-related incidents.
(a) Conditions affecting the safety of a project or its works -- (1)
Oral reports. An applicant or licensee must report by telephone to the
Regional Engineer any condition affecting the safety of a project or
projects works, as defined in 12.3(b)(4). The initial oral report must
be made as soon as practicable after that condition is discovered,
without unduly interfering with any necessary or appropriate emergency
repair, alarm, or other emergency action procedure.
(2) Written reports. Following the initial oral report required in
paragraph (a)(1), the applicant or licensee must submit to the Regional
Engineer a written report on the condition affecting the safety of the
project or project works verified in accordance with 12.13. The written
report must be submitted within the time specified by the Regional
Engineer and must contain any information the Regional Engineer directs,
including:
(i) The causes of the condition;
(ii) A description of any unusual occurrences or operating
circumstances preceding the condition;
(iii) An account of any measure taken to prevent worsening of the
condition;
(iv) A detailed description of any damage to project works and the
status of any repair;
(v) A detailed description of any personal injuries;
(vi) A detailed description of the nature and extent of any private
property damages; and
(vii) Any other relevant information requested by the Regional
Engineer.
(3) The level of detail required in any written report must be
commensurate with the severity and complexity of the condition.
(b) Deaths or serious injuries. (1) Promptly after becoming aware of
any drowning or other accident resulting in death or serious injury that
occurs at the project, the applicant or licensee must report that
drowning or other accident to the Regional Engineer in writing,
including a description of the cause and location of the accident.
(2) The written report of any death or serious injury considered or
alleged to be project related must also describe any remedial actions
taken or proposed to avoid or reduce the chance of similar occurrences
in the future and be verified in accordance with 12.13.
(3) Accidents that are not project-related may be reported by
providing a copy of a clipping from a newspaper article, if available.
(4) For the purposes of this paragraph, project-related includes any
deaths or serious injuries involving a dam, spillway, intake, or power
line, or which take place at or immediately above or below a dam.
18 CFR 12.11 Reporting modifications of the project or project works.
(a) Reporting requirement. Regardless of whether a particular
modification is permitted without specific prior Commission approval, an
applicant or licensee must report any modification of the project or
project works to the Regional Engineer in writing, verified in
accordance with 12.13, at the time specified in paragraph (b) of this
section.
(b) Time of reporting. (1) Any modification that is an emergency
measure taken in response to a condition affecting the safety of the
project or project works must be submitted with the report of that
condition required by 12.10(a)(2).
(2) In all other instances, the modification must be reported at
least 60 days before work on the modification begins.
18 CFR 12.12 Maintenance of records.
(a) Kinds of records -- (1) General rule. Except as provided in
paragraph (a)(2) of this section, the applicant or licensee must
maintain as permanent project records in addition to those required in
part 125 of this chapter, the following information:
(i) Engineering and geological data relating to design, construction,
maintenance, repair, or modification of the project, including design
memoranda and drawings, laboratory and other testing reports, geologic
data (such as maps, sections, or logs of exploratory borings or
trenches, foundation treatment, and excavation), plans and
specifications, inspection and quality control reports, as built
construction drawings, designers' operating criteria, photographs, and
any other data necessary to demonstrate that construction, maintenance,
repair, or modification of the project has been performed in accordance
with plans and specifications;
(ii) Instrumentation observations and data collected during
construction, operation, or maintenance of the project, including
continuously maintained tabular records and graphs illustrating the data
collected pursuant to 12.41; and
(iii) The operational and maintenance history of the project,
including:
(A) The dates, times, nature, and causes of any complete or partial
unscheduled shut-down, suspension of project operations, or reservoir
filling restrictions related to the safety of the project or project
works; and
(B) Any reports of project modifications, conditions affecting the
safety of the project or project works, or deaths or serious injuries at
the project.
(2) Exception. The applicant or licensee is not required to maintain
as permanent project records any information specified in paragraph
(a)(1) of this section that was or reasonably would have been prepared
before the applicant or licensee acquired control of the project and
that the applicant or the licensee never acquired or reasonably could
have acquired.
(b) Location of records -- (1) Original records. The applicant or
licensee must maintain the originals of all permanent project records at
a central location, such as the project site or the main business office
of the applicant or licensee, secure from damage from any conceivable
failure of the project works and convenient for inspection. The
applicant or licensee must keep the Regional Engineer advised of the
location of the permanent project records.
(2) Record copies. If the originals of the permanent project records
are maintained at a central location other than the project site, the
applicant or licensee must maintain at the project site copies of at
least the project Exhibit G or L (design drawings), instrumentation
data, and operational history that are necessary to the safe and
efficient operation of the project.
(3) In accordance with the provisions of part 125 of this chapter,
the applicant or licensee may maintain original records, or record
copies at the project site, in microform, if appropriate equipment is
readily available to view the records.
(c) Transfer of records. If the project is taken over by the United
States at the end of a license term or the Commission issues a new
license to a different licensee, the prior licensee must transfer the
originals of all permanent project records to the custody of the
administering Federal agency or department or to the new licensee.
18 CFR 12.13 Verification form.
If a document submitted in accordance with the provisions of this
part must be verified, the form of verification attached to the document
must be the following:
State of ( ),
County of ( ), ss:
The undersigned, being first duly sworn, states that (he, she) has
read the above document and knows the contents of it, and that all of
the statements contained in that document are true and correct, to the
best of (his, her) knowledge and belief.
--
(Name of person signing)
Sworn to and subscribed before me this (day) of (month), (year).
(Seal)
--
(Signature of notary public or other state or local official
authorized by law to notarize documents.)
18 CFR 12.13 Subpart C -- Emergency Action Plans
18 CFR 12.20 General requirements.
(a) Unless provided with a written exemption pursuant to 12.21,
every applicant or licensee must develop and file with the Regional
Engineer three copies of an emergency action plan and appendices,
verified in accordance with 12.13.
(b) The emergency action plan must be:
(1) Developed in consultation and cooperation with appropriate
Federal, state, and local agencies responsible for public health and
safety; and
(2) Designed to provide early warning to upstream and downstream
inhabitants, property owners, operators of water-related facilities,
recreational users, and other persons in the vicinity who might be
affected by a project emergency as defined in 12.3(b)(9).
18 CFR 12.21 Exemptions.
(a) Grant of exemption. Except as provided in paragraph (b), if an
applicant or licensee satisfactorily demonstrates that no reasonably
foreseeable project emergency would endanger life, health, or property,
the Regional Engineer may exempt the applicant or licensee from filing
an emergency action plan.
(b) No exemption. A licensee or applicant may not be exempted from
the requirements of 12.22(c) for a radiological response plan.
(c) Conditions of exemptions. (1) An applicant or licensee who
receives an exemption from filing an emergency action plan has the
continuing responsibility to review circumstances upstream and
downstream from the project to determine if, as a result of changed
circumstances, a project emergency might endanger life, health, or
property.
(2) Promptly after the applicant or licensee learns that, as a result
of any change in circumstances, a project emergency might endanger life,
health, or property, the applicant or licensee must inform the Regional
Engineer of that changed condition without unduly delaying the
preparation and implementation of the emergency action plan.
(3) Comprehensive review of the necessity for an emergency action
plan must be conducted at least once each year.
(d) Revocation of exemption. (1) The Regional Engineer may revoke an
exemption granted under this section if it is determined that, as a
result of any change in circumstances, a project emergency might
endanger life, health, or property.
(2) If an exemption is revoked, the applicant or licensee must file
an emergency action plan within the time specified by the Regional
Engineer.
18 CFR 12.22 Contents of emergency action plan.
(a) Contents -- (1) The plan itself. An emergency action plan must
conform with the guidelines established, and from time to time revised,
by the Director of the Office of Hydropower Licensing (available from
the division of Inspections or the Regional Engineer) to provide:
(i) Instructions to project operators and attendants and other
responsible personnel about the actions they are to take during a
project emergency;
(ii) Detailed plans for notifying potentially affected persons,
appropriate Federal, state, and local agencies, including public safety
and law enforcement bodies, and medical units; and
(iii) Procedures for controlling the flow of water, including actions
to reduce in-flows to reservoirs, such as limiting outflows from
upstream dams or control structures, and actions to reduce downstream
flows, such as increasing or decreasing outflows from downstream dams or
control structures, on the waterway on which the project is located or
its tributaries.
(2) Appendix to the plan. Each copy of the emergency action plan
submitted to the Regional Engineer must be accompanied by an appendix
conforming with the guidelines established by the Director of the Office
of Hydropower Licensing that contains:
(i) Plans for training project operators, attendants, and other
responsible personnel to respond properly during a project emergency,
including instructions on the procedures to be followed throughout a
project emergency and the manner in which the licensee will periodically
review the knowledge and understanding that these personnel have of
those procedures;
(ii) A summary of the study used for determining the upstream and
downstream areas that may be affected by sudden release of water,
including a summary of all criteria and assumptions used in the study
and, if required by the Regional Engineer, inundation maps; and
(iii) Documentation of consultations with Federal, state, and local
agencies, including public safety and law enforcement bodies, and
medical units.
(b) Special factors. The applicant or licensee must take into
account in its emergency action plan the time of day, particularly hours
of darkness, in establishing the proper actions and procedures for use
during a project emergency.
(c) Additional requirements for projects near nuclear power plants --
(1) Radiological response plan. If the personnel operating any
powerhouse or any spillway control facilities, such as gates or valves,
of a project would be located within ten miles of a nuclear power plant
reactor, the applicant or licensee must file, separately or as a
supplement to any required emergency action plan, a radiological
response plan that provides for emergency procedures to be taken if an
accident or other incident results in the release of radioactive
materials from the nuclear power plant reactor.
(2) A radiological response plan must:
(i) To the maximum extent practicable, include sufficient procedural
safeguards to ensure that, during or following an accident or other
incident involving the nearby nuclear power plant reactor, the project
may be safely operated and, if evacuation is necessary, the project may
be left unattended without danger to the safety of any project dam or to
life, health, or safety upstream or downstream from the project; and
(ii) Explain the provisions, developed after consultation with the
direct purchasers of project power, for cessation, curtailment, or
continuation of generation of electric power at the project during or
following an accident or other incident involving the nearby nuclear
power plant reactor.
(3) Time of filing radiological response plan. (i) For a constructed
project with an otherwise acceptable emergency action plan on file, any
radiological response plan required must be filed:
(A) If an operating license for the nuclear power plant has been
issued on or before March 1, 1981, not later than three months from
March 1, 1981; or
(B) In all other instances, not later than three months after the
date an operating license for the nuclear power plant is issued.
(ii) For any project not described in 12.22(c)(3)(i), any
radiological response plan required must be filed contemporaneously with
the emergency action plan or, if the project has been exempted from
filing an emergency action plan, at the time the emergency action plan
would otherwise have been required to be filed pursuant to 12.23.
(Order 122, 46 FR 9036, Jan. 28, 1981, as amended at 49 FR 29370,
July 20, 1984)
18 CFR 12.23 Time for filing emergency action plan.
(a) Unconstructed project. (1) Except as set forth in paragraph
(a)(2), the emergency action plan for an unconstructed project must be
filed no later than 60 days before the initial filling of the project
reservoir begins.
(2) Temporary impoundment during construction. (i) For any
unconstructed project, if a temporary impoundment would be created
during construction, such as through construction of temporary or
permanent cofferdams or large sediment control structures, and an
accident to or failure of the impounding structures might endanger
construction workers or otherwise endanger public health or safety, a
temporary construction emergency action plan must be filed no later than
60 days before construction begins.
(ii) No later than 60 days before the initial filling of a project
reservoir begins at a project for which a temporary emergency action
plan has been filed the applicant or licensee must file modifications to
that plan or a new plan, taking into account the differences in
circumstances between the construction and post-construction periods.
(b) Unlicensed constructed project. (1) If the Commission has
determined on or before March 1, 1981 that a license is required for an
unlicensed constructed project, the emergency action plan for that
project must be filed no later than:
(i) Six months after March 1, 1981; or
(ii) Any earlier date specified by the Commission or its authorized
representative.
(2) Except as set forth in paragraph (b)(1) of this section, the
emergency action plan for an unlicensed constructed project must be
filed no later than the earliest of:
(i) Six months after the date that a license application is filed;
(ii) Six months after the date that the Commission issues an order
determining that licensing is required; or
(iii) A date specified by the Commission or its authorized
representative.
(c) Licensed constructed project. If a licensed constructed project
does not have an acceptable emergency action plan on file on March 1,
1981 the emergency action plan must be filed no later than:
(1) Six months after March 1, 1981; or
(2) Any earlier date specified by the Commission or its authorized
representative.
(d) For good cause shown, the Regional Engineer may grant an
extension of time for filing all or any part of an emergency action
plan.
18 CFR 12.24 Review and updating of plans.
(a) The emergency action plan must be continually updated to reflect
any changes in the names or titles of project operators and attendants
and other personnel with specified responsibilities for actions in an
emergency and any changes in names of persons to call, telephone
numbers, radio call signals, or other information critical to providing
notification to affected persons, Federal, state, and local agencies,
and medical units.
(b) An applicant or licensee has continuing responsibility to review
the adequacy of the emergency action plan in light of any significant
changes in upstream or downstream circumstances which might affect water
flows or the location or extent of the areas, persons, or property that
might be harmed in a project emergency.
(c) Promptly after an applicant or licensee learns of any change in
circumstances described in paragraph (b) of this section, the applicant
or licensee must:
(1) Inform the Regional Engineer of that change in circumstances;
(2) Consult and cooperate with appropriate Federal, state, and local
agencies responsible for public health and safety to determine any
advisable revisions to the emergency action plan; and
(3) File with the Regional Engineer three copies of any revisions to
the appropriate studies, maps, plans, procedures, or other information
in the emergency action plan itself or its appendices that have changed
as a result of that consultation.
(d) An applicant or licensee must conduct a comprehensive review of
the adequacy of the emergency action plan at least once each year.
18 CFR 12.25 Posting and readiness.
(a) A copy of the current emergency action plan itself must be posted
in a prominent location readily accessible to the licensee's or
applicant's operating personnel who are responsible for controlling
water flows and for notifying public health and safety agencies and
affected persons.
(b) Each licensee or applicant must annually test the state of
training and readiness of key licensee or applicant personnel
responsible for responding properly during a project emergency to ensure
that they know and understand the procedures to be followed throughout a
project emergency.
18 CFR 12.25 Subpart D -- Inspection by Independent Consultant
18 CFR 12.30 Applicability.
This subpart applies to any licensed project development that has a
dam:
(a) That is more than 32.8 feet (10 meters) in height above
streambed, as defined in 12.31(c);
(b) That impounds an impoundment with a gross storage capacity of
more than 2,000 acre-feet (2.5 million cubic meters); or
(c) That has a high hazard potential and is determined by the
Regional Engineer or other authorized Commission representative to
require inspection by an independent consultant under this subpart.
18 CFR 12.31 Definitions.
For purposes of this subpart:
(a) Independent consultant means any person who:
(1) Is a licensed professional engineer;
(2) Has at least 10 years experience and expertise in dam design and
construction and in the investigation of the safety of existing dams;
and
(3) Is not, and has not been within two years before being retained
to perform an inspection under this subpart, an employee of the licensee
or its affiliates or an agent acting on behalf of the licensee or its
affiliates.
(b) Dam that has a high hazard potential means any dam whose failure,
in the judgment of the Commission or its authorized representative,
might endanger human life or cause significant property damage, or which
meets the criteria for high hazard potential as defined by the Corps of
Engineers in 33 CFR part 222.
(c) Height above streambed means:
(1) For a dam with a spillway, the vertical distance from the lowest
elevation of the natural streambed at the downstream toe of the dam to
the maximum water storage elevation possible without any discharge from
the spillway. The maximum water storage elevation is:
(i) For gated spillways, the elevation of the tops of the gates;
(ii) For ungated spillways, the elevation of the spillway crest or
the top of any flashboards, whichever is higher;
(2) For a dam without a spillway, the vertical distance from the
lowest elevation of the natural streambed at the downstream tow of the
dam to the lowest point on the crest of the dam.
(d) Gross storage capacity means the maximum possible volume of water
impounded by a dam with zero spill, that is, without the discharge of
water over the dam or a spillway.
(e) The Director of the Office of Hydropower Licensing may, for good
cause shown, grant a waiver of the 10 year requirement in paragraph
(a)(2) of this section. Any petition for waiver under this paragraph
must be filed in accordance with 1.7(b) of this chapter.
(Order 122, 46 FR 9036, Jan. 28, 1981, as amended at 49 FR 29370,
July 20, 1984)
18 CFR 12.32 General inspection requirement.
In accordance with the procedures in 12.35, the project works of
each development to which this subpart applies, excluding transmission
and transformation facilities and generating equipment, must be
periodically inspected and evaluated by or under the responsibility and
direction of at least one independent consultant, who may be a member of
a consulting firm, to identify any actual or potential deficiencies,
whether in the condition of those project works or in the quality or
adequacy of project maintenance, surveillance, or methods of operation,
that might endanger public safety.
18 CFR 12.33 Exemption.
(a) Upon written request from the licensee, the Director of the
Office of Hydropower Licensing may grant an exemption from the
requirements of this subpart in extraordinary circumstances that clearly
establish good cause for exemption.
(b) Good cause for exemption may include the finding that the
development in question has no dam except dams that meet the criteria
for low hazard potential as defined by the Corps of Engineers in 33 CFR
part 222.
(Order 122, 46 FR 9036, Jan. 28, 1981, as amended at 49 FR 29370,
July 20, 1984)
18 CFR 12.34 Approval of independent consultant.
At least 60 days before the initiation of an inspection under this
subpart, the licensee must submit to the Director of the Office of
Hydropower Licensing for approval, with a copy to the Regional Engineer,
a detailed resume that (a) describes the experience of the independent
consultant; and, (b) shows that the consultant is an independent
consultant as defined in 12.31(a).
(Order 122, 46 FR 9036, Jan. 28, 1981, as amended at 49 FR 29370,
July 20, 1984)
18 CFR 12.35 Specific inspection requirements.
(a) Scope of inspection. The inspection by the independent
consultant shall include:
(1) Due consideration of all relevant reports on the safety of the
development made by or written under the direction of Federal or state
agencies, submitted under Commission regulations, or made by other
consultants;
(2) Physical field inspection of the project works and review and
assessment of all relevant data concerning:
(i) Settlement;
(ii) Movement;
(iii) Erosion;
(iv) Seepage;
(v) Leakage;
(vi) Cracking;
(vii) Deterioration;
(viii) Seismicity;
(ix) Internal stress and hydrostatic pressures in project structures
or their foundations or abutments;
(x) The functioning of foundation drains and relief wells;
(xi) The stability of critical slopes adjacent to a reservoir or
project works; and
(xii) Regional and site geological conditions; and
(3) Specific evaluation of:
(i) The adequacy of spillways;
(ii) The effects of overtopping of nonoverflow structures;
(iii) The structural adequacy and stability of structures under all
credible loading conditions;
(iv) The relevant hydrological data accumulated since the project was
constructed or last inspected under this subpart;
(v) The history of the performance of the project works through
analysis of data from monitoring instruments; and
(vi) The quality and adequacy of maintenance, surveillance, and
methods of project operations for the protection of public safety.
(b) Evaluation of spillway adequacy. The adequacy of any spillway
must be evaluated by considering hazard potential which would result
from failure of the project works during flood flows.
(1) If structural failure would present a hazard to human life or
cause significant property damage, the independent consultant must
evaluate the ability of project works to withstand the loading or
overtopping which may occur from a flood up to the probable maximum
flood or the capacity of spillways to prevent the reservoir from rising
to an elevation that would endanger the project works.
(2) If structural failure would not present a hazard to human life of
cause significant property damage, spillway adequacy may be evaluated by
means of a design flood of lesser magnitude than the probable maximum
flood, if the report of the independent consultant pursuant to 12.37
provides a detailed explanation of the bases for the finding that
structural failure would not present a hazard to human life or cause
significant property damage.
18 CFR 12.36 Emergency corrective measures.
If, in the course of an inspection, an independent consultant
discovers any condition for which emergency corrective measures are
advisable, the independent consultant must immediately notify the
licensee and the licensee must report that condition to the Regional
Engineer pursuant to 12.10(a) of this part.
18 CFR 12.37 Report of the independent consultant.
(a) General requirement. Following inspection of a project
development as required under this subpart, the independent consultant
must prepare a report and the licensee must file three copies of that
report with the Regional Engineer. The report must conform to the
provisions of this section and be satisfactory to the authorized
Commission representative.
(b) General information in the initial report. (1) The initial
report filed under this subpart for any project development must
contain:
(i) A description of the project development;
(ii) A map of the region indicating the location of the project
development;
(iii) Plans, elevations, and sections of the principal project works;
(iv) A summary of the design assumptions, design analyses, spillway
design flood, and the factors of safety used to evaluate the structural
adequacy and stability of the project works; and
(v) A summary of the geological conditions that may affect the safety
of the project works.
(2) To the extent that the information and analyses required in
paragraph (b)(1) of this section, are contained in a report of an
independent consultant prepared and filed in compliance with Commission
regulations in effect before March 1, 1981 the information and analyses
may be incorporated by specific reference into the first report prepared
and filed under this subpart.
(c) Information required for all reports. Any report of an
independent consultant filed under this subpart must contain the
information specified in this paragraph.
(1) Monitoring information. The report must contain monitoring
information that includes time-versus-reading graphs depicting data
compiled from any existing critical or representative monitoring
instruments that measure the behavior, movement, deflection, or loading
of project works or from which the stability, performance, or
functioning of the structures may be determined.
(i) Any monitoring data plotted on graphs must be presented in a
manner that will facilitate identification and analysis of trends. The
data may be summarized to facilitate graphical representation.
(ii) Plan and sectional drawings of project structures sufficient to
show the location of all critical or representative existing monitoring
instruments must be included. If these drawings have been included in a
previous report prepared and filed by an independent consultant, they
may be incorporated by specific reference to that earlier report.
(2) Analyses. The report must:
(i) Analyze the safety of the project works and the maintenance and
methods of operation of the development fully in light of the
independent consultant's reviews, field inspections, assessments, and
evaluations described in 12.35;
(ii) Identify any changes in the information and analyses required by
paragraph (b) of this section that have occurred since the last report
by an independent consultant under this subpart and analyze the
implications of those changes; and
(iii) Analyze the adequacy of existing monitoring instruments,
periodic observation programs, and other methods of monitoring project
works and conditions effecting the safety of the project or project
works with respect to the development.
(3) Incorporation by reference. To the extent that conditions,
assumptions, and available information have not changed since the last
previous report by an independent consultant under this subpart, the
analyses required under paragraphs (c)(2)(i) and (ii) of this section
may be incorporated by specific reference to the last previous report.
(4) Recommendations. Based on the independent consultant's field
observations and evaluations of the project works and the maintenance,
surveillance, and methods of operation of the development, the report
must contain the independent consultant's recommendations on:
(i) Any corrective measures necessary for the structures or for the
maintance or surveillance procedures or methods of operation of the
project works;
(ii) A reasonable time to carry out each corrective measure; and
(iii) Any new or additional monitoring instruments, periodic
observations, or other methods of monitoring project works or conditions
that may be required.
(5) Dissenting views. If the inspection and report were conducted
and prepared by more than one independent consultant, the report must
clearly indicate any dissenting views concerning the analyses or
recommendations of the report that might be held by any individual
consultant.
(6) List of participants. The report must identify all professional
personnel who have participated in the inspection of the project or in
preparation of the report and the independent consultant who directed
those activities.
(7) Statement of independence. The independent consultant must
declare that all conclusions and recommendations in the report are made
independently of the licensee, its employees, and its representatives.
(8) Signature. The report must be signed by each independent
consultant responsible for the report.
18 CFR 12.38 Time for inspections and reports.
(a) General rule. After the initial inspection and report under this
subpart for a project development, a new inspection under this subpart
must be completed and the report on it filed not later than five years
from the date the last report on an inspection was to be filed under
this subpart.
(b) Initial inspection and report. (1) For any development that has
a dam that is more than 32.8 feet (10 meters) in height above streambed
or impounds an impoundment with a gross storage capacity of more than
2,000 acre feet (2.5 million cubic meters), which development was
constructed before the date of issuance of the order licensing or
amending a license to include that development, the initial inspection
under this subpart must be completed and the report on it filed not
later than two years after the date of issuance of the order licensing
the development or amending the license to include the development.
(2) For any development that was constructed after the date of
issuance of the order licensing or amending a license to include the
development, the initial inspection under this subpart must be completed
and the report on it filed not later than five years from the date of
first commercial operation, or the date on which the impoundment first
reaches its normal maximum surface elevation, whichever occurs first.
(3) For any development not set forth in either subparagraph (b)(1)
or (b)(2), the initial inspection under this subpart must be completed
and the report on it filed by a date specified by the Regional Engineer.
The filing date must not be more than two years after the date of
notification that an inspection and report under this subpart are
required.
(4) The last independent consultant's inspection and report made for
a development before March 1, 1981 in compliance with the Commission's
rules then in effect is deemed to fulfill the requirements for an
initial inspection and report under this subpart for that development,
except that the first report filed under this subpart for that
development after March 1, 1981 must contain the information and
analyses required by 12.37(b).
(c) Extension of time. For good cause shown, the Regional Engineer
may extend the time for filing an independent consultant's report under
this subpart.
18 CFR 12.39 Taking corrective measures after the report.
(a) Corrective plan and schedule. (1) Not later than 60 days after
the report of the independent consultant is filed with the Regional
Engineer, the licensee must submit to the Regional Engineer three copies
of a plan and schedule for designing and carrying out any corrective
measures that the licensee proposes.
(2) The plan and schedule may include any proposal, including taking
no action, that the licensee considers a preferable alternative to any
corrective measure recommended in the report of the independent
consultant. Any proposed alternative must be accompanied by the
licensee's complete justification and detailed analysis and evaluation
in support of that alternative.
(b) Carrying out the plan. The licensee must complete all corrective
measures in accordance with the plan and schedule submitted to, and
approved or modified by, the Regional Engineer.
(c) Extension of time. For good cause shown, the Regional Engineer
may extend the time for filing the plan and schedule required by this
section.
18 CFR 12.39 Subpart E -- Other Responsibilities of Applicant or Licensee
18 CFR 12.40 Quality control programs.
(a) General rule. During any construction, repair, or modification
of project works, including any corrective measures taken pursuant to
12.39 of this part, the applicant or licensee must maintain any quality
control program that may be required by the Regional Engineer,
commensurate with the scope of the work and meeting any requirements or
standards set by the Regional Engineer. If a quality control program is
required, the construction, repair, or modification may not begin until
the Regional Engineer has approved the program.
(b) If the construction, repair, or modification work is performed by
a construction contractor, quality control inspection must be performed
by the licensee, the design engineer, or an independent firm, other than
the construction contractor, directly accountable to the licensee. This
paragraph is not intended to prohibit additional quality control
inspections by the construction contractor, or a firm accountable to the
construction contractor, for the construction contractor's purposes.
(c) If the construction, repair, or modification of project works is
performed by the applicant's or licensee's own personnel, the applicant
or licensee must provide for separation of authority within its
organization to make certain that the personnel responsible for quality
control inspection are, to the satisfaction of the Regional Engineer or
other authorized Commission representative, independent from the
personnel who are responsible for the construction, repair or
modification.
18 CFR 12.41 Monitoring instruments.
(a) In designing a project, a licensee must make adequate provision
for installing and maintaining appropriate monitoring instrumentation
whenever any physical condition that might affect the stability of a
project structure has been discovered or is anticipated. The
instrumentation must be satisfactory to the Regional Engineer and may
include, for example, instruments to monitor movement of joints,
foundation or embankment deformation, seismic effects, hydrostatic pore
pressures, structural cracking, or internal stresses on the structure.
(b) If an applicant or licensee discovers any condition affecting the
safety of the project or project works during the course of construction
or operation, the applicant or licensee must install and maintain any
monitoring devices and instruments that may be required by the Regional
Engineer or other authorized Commission representative to monitor that
condition.
18 CFR 12.42 Warning and safety devices.
To the satisfaction of, and within a time specified by, the Regional
Engineer, an applicant or licensee must install, operate, and maintain
any signs, lights, sirens, barriers, or other safety devices that may
reasonably be necessary or desirable to warn the public of fluctuations
in flow from the project or otherwise to protect the public in the use
of project lands and waters.
18 CFR 12.43 Power and communication lines and gas pipelines.
(a) A licensee must take all reasonable precautions, and comply with
all reasonable specifications that may be provided by the Regional
Engineer, to ensure that any power or communication line or gas pipeline
that is located over, under, or in project waters does not obstruct
navigation for recreational or commercial purposes or otherwise endanger
public safety.
(b) Clearances between any power or communication line constructed
after March 1, 1981 and any vessels using project waters must be at
least sufficient to conform to any applicable requirements of the
National Electrical Safety Code in effect at the time the power or
communication line is constructed.
(c) The Regional Engineer may require a licensee or applicant to
provide signs at or near power or communication lines to advise the
public of the clearances for any power or communication lines located
over, under, or in project waters.
18 CFR 12.44 Testing spillway gates.
(a) General requirement. An applicant or licensee must make adequate
provision, to the satisfaction of the Regional Engineer or other
authorized Commission representative, to ensure that all spillway gates
are operable at all times, particularly during adverse weather
conditions.
(b) Annual test. (1) At least once each year, each spillway gate at
a project must be operated to spill water, either during regular project
operation or on a test basis.
(2) If an applicant or licensee does not operate each spillway gate
on a test basis during the periodic inspection by the Commission staff,
the applicant or licensee must submit to the Regional Engineer at least
once each year a written statement, verified in accordance with 12.13,
that each spillway has been operated at least once during the twelve
months preceding the inspection.
(c) Load-test of standby power. (1) An applicant or licensee must
load-test the standby emergency power for spillway gate operation at
regular intervals, but not less than once during each year, and submit
to the Regional Engineer, at least once each year, a written statement,
verified in accordance with 12.13, describing the intervals at which
the standby emergency power was load-tested during the year preceding
the inspection.
(2) The Commission staff may direct that a spillway gate be operated
using standby emergency power during the periodic inspection.
18 CFR 12.44 PART 16 -- PROCEDURES RELATING TO TAKEOVER AND RELICENSING OF LICENSED PROJECTS
18 CFR 12.44 Subpart A -- General Provisions
Sec.
16.1 Applicability.
16.2 Definitions.
16.3 Public notice of projects under expiring licenses.
16.4 Acceleration of a license expiration date.
16.5 Site access for a competing applicant.
18 CFR 12.44 Subpart B -- Applications for Projects Subject to Sections
14 and 15 of the Federal Power Act
16.6 Notification procedures under section 15 of the Federal Power
Act.
16.7 Information to be made available to the public at the time of
notification of intent under section 15(b) of the Federal Power Act.
16.8 Consultation requirements.
16.9 Applications for new licenses and nonpower licenses for projects
subject to sections 14 and 15 of the Federal Power Act.
16.10 Information to be provided by an applicant for new license:
Filing requirements.
16.11 Nonpower licenses.
16.12 Application for exemption from licensing by a licensee whose
license is subject to sections 14 and 15 of the Federal Power Act.
16.13 Standards and factors for issuing a new license.
18 CFR 12.44 Subpart C -- Takeover Provisions for Projects Subject to
Sections 14 and 15 of the Federal Power Act
16.14 Departmental recommendation for takeover.
16.15 Commission recommendation to Congress.
16.16 Motion for stay by Federal department or agency.
16.17 Procedures upon Congressional authorization of takeover.
18 CFR 12.44 Subpart D -- Annual Licenses for Projects Subject to
Sections 14 and 15 of the Federal Power Act
16.18 Annual licenses for projects subject to sections 14 and 15 of
the Federal Power Act.
18 CFR 12.44 Subpart E -- Projects With Minor and Minor Part Licenses
Not Subject to Sections 14 and 15 of the Federal Power Act
16.19 Procedures for an existing licensee of a minor hydroelectric
power project or of a minor part of a hydroelectric power project with a
license not subject to sections 14 and 15 of the Federal Power Act.
16.20 Applications for subsequent license for a project with an
expiring license not subject to sections 14 and 15 of the Federal Power
Act.
16.21 Operation of projects with a minor or minor part license not
subject to sections 14 and 15 of the Federal Power Act after expiration
of a license.
16.22 Application for an exemption by a license with a minor or minor
part license for a project not subject to sections 14 and 15 of the
Federal Power Act.
18 CFR 12.44 Subpart F -- Procedural Matters
16.23 Failure to file timely notices of intent.
16.24 Prohibitions against filing applications for new license,
nonpower license, exemption, or subsequent license.
16.25 Disposition of a project for which no timely application is
filed following a notice of intent to file.
16.26 Disposition of a project for which no timely application is
filed following a notice of intent not to file.
Authority: 16 U.S.C. 791a-825r; 42 U.S.C. 7101-7352.
Source: Order 513, 54 FR 23806, June 2, 1989, unless otherwise
noted.
18 CFR 12.44 Subpart A -- General Provisions
18 CFR 16.1 Applicability.
This part applies to the filing and processing of an application for:
(a) A new license, a nonpower license, or an exemption from licensing
for a hydroelectric project with an existing license subject to the
provisions of sections 14 and 15 of the Federal Power Act.
(b) A subsequent license or an exemption from licensing for a
hydroelectric project with an existing minor license or minor part
license not subject to the provisions of sections 14 and 15 of the
Federal Power Act because those sections were waived pursuant to section
10(i) of the Federal Power Act.
18 CFR 16.2 Definitions.
For purposes of this part:
(a) New license means a license, except an annual license, for a
water power project that is issued under section 15(a) of the Federal
Power Act after an original license expires.
(b) New license application filing deadline, as provided in section
15(c)(1) of the Federal Power Act, is the date 24 months before the
expiration of an existing license.
(c) Nonpower license means a license for a nonpower project issued
under section 15(b) of the Federal Power Act.
(d) Subsequent license means a license for a water power project
issued under Part I of the Federal Power Act after a minor or minor part
license that is not subject to sections 14 and 15 of the Federal Power
Act expires.
(Order 513, 54 FR 23806, June 2, 1989, as amended by Order 513-A, 55
FR 15, Jan. 2, 1990; Order 533, 56 FR 23154, May 20, 1991)
18 CFR 16.3 Public notice of projects under expiring licenses.
In addition to the notice of a licensee's intent to file or not to
file an application for a new license provided in 16.6(d), the
Commission will publish, in its annual report and annually in the
Federal Register, a table showing the projects whose licenses will
expire during the succeeding six years. The table will:
(a) List the licenses according to their expiration dates; and
(b) Contain the following information: license expiration date;
licensee's name; project number; type of principal project works
licensed, e.g., dam and reservoir, powerhouse, transmission lines;
location by state, county, and stream; location by city or nearby city
when appropriate; whether the existing license is subject to sections
14 and 15 of the Federal Power Act; and plant installed capacity.
18 CFR 16.4 Acceleration of a license expiration date.
(a) Request for acceleration. (1) A licensee may file with the
Commission, in accordance with the formal filing requirements in subpart
T of part 385 of this chapter, a written request for acceleration of the
expiration date of its existing license, containing the statements and
information specified in 16.6(b) and a detailed explanation of the
basis for the acceleration request.
(2) If the Commission grants the request for acceleration pursuant to
paragraph (c), the Commission will deem the request for acceleration to
be a notice of intent under 16.6 and, unless the Commission directs
otherwise, the licensee shall make available the information specified
in 16.7 no later than 90 days from the date that the Commission grants
the request for acceleration.
(b) Notice of request for acceleration. (1) Upon receipt of a
request for acceleration, the Commission will give notice of the
licensee's request and provide a 45-day period for comments by
interested persons by:
(i) Publishing notice in the Federal Register;
(ii) Publishing notice once in a daily or weekly newspaper published
in the county or counties in which the project or any part thereof or
the lands affected thereby are situated; and
(iii) Notifying appropriate Federal, state, and interstate resource
agencies and Indian tribes by mail.
(2) The notice issued pursuant to paragraphs (1) (i) and (ii) and the
written notice given pursuant to paragraph (1)(iii) will be considered
as fulfilling the notice provisions of 16.6(d) should the Commission
grant the acceleration request and will include an explanation of the
basis for the licensee's acceleration request.
(c) Commission order. If the Commission determines it is in the
public interest, the Commission will issue an order accelerating the
expiration date of the license to not less than five years and 90 days
from the date of the Commission order.
18 CFR 16.5 Site access for a competing applicant.
(a) Access. If a potential applicant for a new license, subsequent
license, or nonpower license for a project has complied with the first
stage consultation provisions of 16.8(b)(1) and has notified the
existing licensee in writing of the need for and extent of the access
required, the existing licensee must allow the potential applicant to
enter upon or into designated land, buildings, or other property in the
project area at a reasonable time and under reasonable conditions,
including, but not limited to, reasonable liability conditions,
conditions for compensation to the existing licensee for all reasonable
costs incurred in providing access, including energy generation lost as
a result of modification of project operations that may be necessary to
provide access, and in a manner that will not adversely affect the
environment, for the purposes of:
(1) Conducting a study or gathering information required by a
resource agency under 16.8 or by the Commission pursuant to 4.32 of
this chapter;
(2) Conducting a study or gathering information not covered by
paragraph (a)(1) but necessary to prepare an application for new
license, subsequent license, or nonpower license; or
(3) Holding a site visit for a resource agency under 16.8.
(b)(1) Disputes. Except as specified by paragraph (b)(2), disputes
regarding the timing and conditions of access for the purposes specified
in paragraphs (a) (1), (2), or (3) of this section and the need for the
studies or information specified in paragraph (a)(2) may be referred to
the Director of the Office of Hydropower Licensing for resolution in the
manner specified in 16.8(b)(5) prior to the providing of access.
(2) Disputes regarding the amount of compensation to be paid the
existing licensee for access may be referred to the Director of the
Office of Hydropower Licensing for resolution in the manner specified in
16.8(b)(5) after the access has been provided.
18 CFR 16.5 Subpart B -- Applications for Projects Subject to Sections 14 and 15 of the Federal Power Act
18 CFR 16.6 Notification procedures under section 15 of the Federal
Power Act.
(a) Applicability. This section applies to a licensee of an existing
project subject to sections 14 and 15 of the Federal Power Act.
(b) Requirement to notify. In order to notify the Commission under
section 15 of the Federal Power Act whether a licensee intends to file
or not to file an application for new license, the licensee must file
with the Commission an original and fourteen copies of a letter, that
contains the following information:
(1) The licensee's name and address.
(2) The project number.
(3) The license expiration date.
(4) An unequivocal statement of the licensee's intention to file or
not to file an application for a new license.
(5) The type of principal project works licensed, such as dam and
reservoir, powerhouse, or transmission lines.
(6) Whether the application is for a power or nonpower license.
(7) The location of the project by state, county and stream, and,
when appropriate, by city or nearby city.
(8) The installed plant capacity.
(9) The location or locations of all the sites where the information
required under 16.16 is available to the public.
(10) The names and mailing addresses of:
(i) Every county in which any part of the project is located, and in
which any Federal facility that is used by the project is located;
(ii) Every city, town, Indian tribe, or similar local political
subdivision:
(A) In which any part of the project is located and any Federal
facility that is used by the project is located, or
(B) That has a population of 5,000 or more people and is located
within 15 miles of the project dam,
(iii) Every irrigation district, drainage district, or similar
special purpose political subdivision:
(A) In which any part of the project is located and any Federal
facility that is used by the project is located, or
(B) That owns, operates, maintains, or uses any project facility or
any Federal facility that is used by the project; and
(iv) Every other political subdivision in the general area of the
project that there is reason to believe would be likely to be interested
in, or affected by, the notification.
(c) When to notify. (1) Except as provided in paragraph (c)(2) of
this section, if a license expires on or after October 17, 1992, the
licensee must notify the Commission as required in paragraph (b) of this
section at least five years, but no more than five and one-half years,
before the existing license expires.
(2) The requirement in paragraph (c)(1) of this section does not
apply if a licensee filed notice more than five and one-half years
before its existing license expired and before the effective date of
this rule.
(d) Commission notice. Upon receipt of the notification required
under paragraph (b) of this section, the Commission will provide notice
of the licensee's intent to file or not to file an application for a new
license by:
(1) Publishing notice in the Federal Register;
(2) Publishing notice once in a daily or weekly newspaper published
in the county or counties in which the project or any part thereof or
the lands affected thereby are situated; and
(3) Notifying appropriate Federal and state resource agencies and
Indian tribes by mail.
(Order 496, 53 FR 15810, May 4, 1988. Redesignated and amended by
Order 513, 54 FR 23807, June 2, 1989)
18 CFR 16.7 Information to be made available to the public at the time
of notification of intent under section 15(b) of the Federal Power Act.
(a) Applicability. This section applies to a licensee of an existing
project subject to sections 14 and 15 of the Federal Power Act.
(b) Requirement to make information available. A licensee must make
the information specified in paragraph (d) of this section reasonably
available to the public for inspection and reproduction, from the date
on which the licensee notifies the Commission pursuant to 16.6(b) of
this part until the date any relicensing proceeding for the project is
terminated.
(c) Requirement to supplement information. A licensee must
supplement the information it is required to make available under the
provisions of paragraph (d) with any additional information developed
after the filing of a notice of intent.
(d) Information to be made available. A licensee must make the
following information regarding its existing project reasonably
available to the public as provided in paragraph (b) of this section:
(1) The following construction and operation information:
(i) The original license application and the order issuing the
license and any subsequent license application and subsequent order
issuing a license for the existing project, including
(A) Approved Exhibit drawings, including as-built exhibits,
(B) Any order issuing amendments or approving exhibits, and
(C) Any order issuing annual licenses for the existing project;
(ii) All data relevant to whether the project is and has been
operated in accordance with the requirements of each license article,
including minimum flow requirements, ramping rates, reservoir elevation
limitations, and environmental monitoring data;
(iii) A compilation of project generation and respective outflow with
time increments not to exceed one hour, unless use of another time
increment can be justified, for the period beginning five years before
the filing of a notice of intent;
(iv) Any public correspondence relating to the existing project;
(v) Any report on the total actual annual generation and annual
operation and maintenance costs for the period beginning five years
before the filing of a notice of intent;
(vi) Any reports on original project costs, current net investment,
and available funds in the amortization reserve account;
(vii) A current and complete electrical single-line diagram of the
project showing the transfer of electricity from the project to the area
utility system or point of use; and
(viii) Any bill issued to the existing licensee for annual charges
under section 10(e) of the Federal Power Act.
(2) The following safety and structural adequacy information:
(i) The most recent emergency action plan for the project or a letter
exempting the project from the emergency action plan requirement;
(ii) Any independent consultant's reports required by part 12 of the
Commission's regulations and filed on or after January 1, 1981;
(iii) Any report on operation or maintenance problems, other than
routine maintenance, occurring within the five years preceding the
filing of a notice of intent or within the most recent five-year period
for which data exists, and associated costs of such problems under the
Commission's Uniform System of Accounts;
(iv) Any construction report for the existing project; and
(v) Any public correspondence relating to the safety and structural
adequacy of the existing project.
(3) The following fish and wildlife resources information:
(i) Any report on the impact of the project's construction and
operation on fish and wildlife resources;
(ii) Any existing report on any threatened or endangered species or
critical habitat located in the project area, or affected by the
existing project outside the project area;
(iii) Any fish and wildlife management plan related to the project
area prepared by the existing licensee or any resource agency; and
(iv) Any public correspondence relating to the fish and wildlife
resources within the project area.
(4) The following recreation and land use resources information:
(i) Any report on past and current recreational uses of the project
area;
(ii) Any map showing recreational facilities and areas reserved for
future development in the project area, designated or proposed
wilderness areas in the project area, Land and Conservation Fund lands
in the project area, and designated or proposed Federal or state wild
and scenic river corridors in the project area;
(iii) Any documentation listing the entity responsible for operating
and maintaining any existing recreational facilities in the project
area; and
(iv) Any public correspondence relating to recreation and land use
resources within the project area.
(5) The following cultural resources information:
(i) Except as provided in paragraph (d)(5)(ii) of this section, a
licensee must make available:
(A) Any report concerning documented archaeological resources
identified in the project area;
(B) Any report on past or present use of the project area and
surrounding areas by Native Americans; and
(C) Any public correspondence relating to cultural resources within
the project area.
(ii) A licensee must delete from any information made available under
paragraph (d)(5)(i) of this section, specific site or property locations
the disclosure of which would create a risk of harm, theft, or
destruction of archaeological or Native American cultural resources or
to the site at which the resources are located, or would violate any
Federal law, including the Archaeological Resources Protection Act of
1979, 16 U.S.C. 470w-3, and the National Historic Preservation Act of
1966, 16 U.S.C. 470hh.
(6) The following energy conservation information under section
10(a)(2)(C) of the Federal Power Act, related to the licensee's efforts
to conserve electricity or to encourage conservation by its customers
including:
(i) Any plan of the licensee;
(ii) Any public correspondence; and
(iii) Any other pertinent information relating to a conservation
plan.
(e) Form, place, and hours of availability, and cost of reproduction.
(1) A licensee must make the information specified in paragraph (d) of
this section available to the public for inspection:
(i) At its principal place of business or at any other location or
locations that are more accessible to the public, provided that all of
the information is available in at least one location;
(ii) During regular business hours; and
(iii) In a form that is readily accessible, reviewable, and
reproducible.
(2) Except as provided in paragraph (d)(3) of this section, a
licensee must make requested copies of the information specified in
paragraph (c) of this section available either:
(i) At its principal place of business or at any other location or
locations that are more accessible to the public, after obtaining
reimbursement for reasonable costs of reproduction; or
(ii) Through the mail, after obtaining reimbursement for postage fees
and reasonable costs of reproduction.
(3) A licensee must make requested copies of the information
specified in paragraph (d) of this section available to the United
States Fish and Wildlife Service, the National Marine Fisheries Service,
and the state agency responsible for fish and wildlife resources without
charge for the costs of reproduction or postage.
(f) Unavailability of required information. Anyone may file a
petition with the Commission requesting access to the information
specified in paragraph (d) of this section if it believes that a
licensee is not making the information reasonably available for public
inspection or reproduction. The petition must describe in detail the
basis for the petitioner's belief.
(g) Public correspondence. A licensee may compile and make available
in one file all the public correspondence required to be made available
for inspection and reproduction by 16.16(d)(1)(iv), (d)(2)(v),
(d)(3)(iv), (d)(4)(iv), and (d)(6)(ii).
(Order 496, 53 FR 15810, May 4, 1988. Redesignated by Order 513, 54
FR 23807, June 2, 1989; Order 513-C, 55 FR 10768, Mar. 23, 1990)
18 CFR 16.8 Consultation requirements.
(a) Requirement to consult. (1) Before it files any application for
a new license, a nonpower license, an exemption from licensing, or,
pursuant to 16.25 or 16.26 of this part, a surrender of a project, a
potential applicant must consult with the relevant Federal, State, and
interstate resource agencies, including the National Marine Fisheries
Service, the United States Fish and Wildlife Service, the National Park
Service, the United States Environmental Protection Agency, the Federal
agency administering any United States lands or facilities utilized or
occupied by the project, the appropriate state fish and wildlife
agencies, the appropriate State water resource management agencies, the
certifying agency under section 401(a)(1) of the Federal Water Pollution
Control Act (Clean Water Act), 33 U.S.C. 1341(c)(1), and any Indian
tribe that may be affected by the project.
(2) The Director of the Office of Hydropower Licensing or the
Regional Director responsible for the area in which the project is
located will, upon request, provide a list of known appropriate Federal,
state, and interstate resource agencies and Indian tribes.
(3)(i) Before it files an amendment that would be considered as
material under 4.35 of this part, to any application subject to this
section, an applicant must consult with the resource agencies and Indian
tribes listed in paragraph (a)(1) of this section and allow such
agencies and tribes at least 60 days to comment on a draft of the
proposed amendment and to submit recommendations and conditions to the
applicant. The amendment as filed with the Commission must summarize
the consultation with the resource agencies and Indian tribes on the
proposed amendment and respond to any obligations, recommendations or
conditions submitted by the agencies or Indian tribes.
(ii) If an applicant has any doubt as to whether a particular
amendment would be subject to the pre-filing consultation requirements
of this section, the applicant may file a written request for
clarification with the Director, Office of Hydropower Licensing.
(b) First stage of consultation. (1) A potential applicant must
provide each of the appropriate resource agencies and Indian tribes,
listed in paragraph (a)(1) of this section, and the Commission with the
following information:
(i) Detailed maps showing existing project boundaries, if any, proper
land descriptions of the entire project area by township, range, and
section, as well as by state, county, river, river mile, and closest
town, and also showing the specific location of all existing and
proposed project facilities, including roads, transmission lines, and
any other appurtenant facilities;
(ii) A general engineering design of the existing project and any
proposed changes, with a description of any existing or proposed
diversion of a stream through a canal or a penstock;
(iii) A summary of the existing operational mode of the project and
any proposed changes;
(iv) Identification of the environment affected or to be affected,
the significant resources present and the applicant's existing and
proposed environmental protection, mitigation, and enhancement plans, to
the extent known at that time;
(v) Streamflow and water regime information, both existing and
proposed, including drainage area, natural flow periodicity, monthly
flow rates and durations, mean flow figures illustrating the mean daily
streamflow curve for each month of the year at the point of diversion or
impoundment, with location of the stream gauging station, the method
used to generate the streamflow data provided, and copies of all records
used to derive the flow data used in the applicant's engineering
calculations;
(vi) Detailed descriptions of any proposed studies and the proposed
methodologies to be employed; and
(vii) Any statement required by 4.301(a) of this chapter.
(2) Not earlier than 30 days, but not later than 60 days, from the
date of the potential applicant's letter transmitting the information to
the agencies and Indian tribes under paragraph (b)(1) of this section,
the potential applicant will:
(i) Hold a joint meeting, including an opportunity for a site visit,
with all pertinent agencies and Indian tribes to review the information
and to discuss the data and studies to be provided by the potential
applicant as part of the consultation process; and
(ii) Consult with the resource agencies and Indian tribes on the
scheduling of the joint meeting and provide each resource agency, Indian
tribe, and the Commission with written notice of the time and place of
the joint meeting and a written agenda of the issues to be discussed at
the meeting at least 15 days in advance.
(3) Members of the public are invited to attend the joint meeting
held pursuant to paragraph (b)(2)(i) of this section. Members of the
public attending the meeting are entitled to participate fully in the
meeting and to express their views regarding resource issues that should
be addressed in any application for new license that may be filed by the
potential applicant. Attendance of the public at any site visit held
pursuant to paragraph (b)(2)(i) shall be at the discretion of the
potential applicant. The potential applicant must make either audio
recordings or written transcripts of the joint meeting, and must upon
request promptly provide copies of these recordings or transcripts to
the Commission and any resource agency and Indian tribe.
(4) Unless otherwise extended by the Director of the Office of
Hydropower Licensing pursuant to paragraph (b)(5) of this section, not
later than 60 days after the joint meeting held under paragraph (b)(2)
of this section each interested resource agency and Indian tribe must
provide a potential applicant with written comments:
(i) Identifying its determination of necessary studies to be
performed or information to be provided by the potential applicant;
(ii) Identifying the basis for its determination;
(iii) Discussing its understanding of the resource issues and its
goals and objectives for these resources;
(iv) Explaining why each study methodology recommended by it is more
appropriate than other available methodology alternatives, including
those identified by the potential applicant pursuant to paragraph
(b)(1)(vi) of this section;
(v) Documenting that the use of each study methodology recommended by
it is a generally accepted practice, and
(vi) Explaining how the studies and information requested will be
useful to the agency or Indian tribe in furthering its resource goals
and objectives.
(5)(i) If a potential applicant and a resource agency or Indian tribe
disagree as to any matter arising during the first stage of consultation
or as to the need to conduct a study or gather information referenced in
paragraph (c)(2) of this section, the potential applicant or resource
agency or Indian tribe may refer the dispute in writing to the Director
of the Office of Hydropower Licensing for resolution.
(ii) The entity referring the dispute must serve a copy of its
written request for resolution on the disagreeing party at the time the
request is submitted to the Director. The disagreeing party may submit
to the Director of the Office of Hydropower Licensing a written response
to the referral within 15 days of the referral's submittal to the
Director.
(iii) Written referrals to the Director of the Office of Hydropower
Licensing and written responses thereto pursuant to paragraphs (b)(5)(i)
or (b)(5)(ii) of this section must be filed with the Secretary of the
Commission in accordance with the Commission's Rules of Practice and
Procedure, and must indicate that they are for the attention of the
Director of the Office of Hydropower Licensing pursuant to 16.8(b)(5).
(iv) The Director of the Office of Hydropower Licensing will resolve
disputes by letter provided to the potential applicant and the
disagreeing resource agency or Indian tribe.
(v) If a potential applicant does not refer a dispute regarding a
request for information (other than a dispute regarding the information
specified in paragraph (b)(1) of this section) or a study to the
Director under paragraph (b)(5)(i) of this section or if a potential
applicant disagrees with the Director's resolution of a dispute
regarding a request for information (other than a dispute regarding the
information specified in paragraph (b)(1) of this section) or a study,
and if the potential applicant does not provide the requested
information or conduct the requested study, the potential applicant must
fully explain the basis for its disagreement in its application.
(vi) Filing and acceptance of an application will not be delayed, and
an application will not be considered deficient or patently deficient
pursuant to 4.32 (e)(1) or (e)(2) of this chapter, merely because the
application does not include a particular study or particular
information if the Director of the Office of Hydropower Licensing had
previously found, under paragraph (b)(5)(iv) of this section, that such
study or information was unreasonable or unnecessary.
(6) Unless otherwise extended by the Director of the Office of
Hydropower Licensing pursuant to paragraph (b)(5) of this section, the
first stage of consultation ends when all participating agencies and
Indian tribes provide the written comments required under paragraph
(b)(4) of this section or 60 days after the joint meeting under
paragraph (b)(2) of this section, whichever occurs first.
(c) Second stage of consultation. (1) Unless determined otherwise by
the Director of the Office of Hydropower Licensing pursuant to paragraph
(b)(5) of this section, a potential applicant must complete all
reasonable and necessary studies and obtain all reasonable and necessary
information requested by resource agencies and Indian tribes under
paragraph (b):
(i) Prior to filing the application, if the results:
(A) Would influence the financial (e.g., instream flow study) or
technical feasibility of the project (e.g., study of potential mass soil
movement); or
(B) Are needed to determine the design or location of project
features, reasonable alternatives to the project, the impact of the
project on important natural or cultural resources (e.g., resource
surveys), suitable mitigation or enhancement measures, or to minimize
impact on significant resources (e.g., wild and scenic river, anadromous
fish, endangered species, caribou migration routes);
(ii) After filing the application but before license issuance, if the
applicant complied with the provisions of paragraph (b)(1) of this
section no later than four years prior to the expiration date of the
existing license and the results:
(A) Would be those described in paragraphs (c)(1)(i) (A) or (B) of
this section; and
(B) Would take longer to conduct and evaluate than the time between
the conclusion of the first stage of consultation and the new license
application filing deadline.
(iii) After a new license is issued, if the studies can be conducted
or the information obtained only after construction or operation of
proposed facilities, would determine the success of protection,
mitigation, or enhancement measures (e.g., post-construction monitoring
studies), or would be used to refine project operation or modify project
facilities.
(2) If, after the end of the first stage of consultation as defined
in paragraph (b)(6) of this section, a resource agency or Indian tribe
requests that the potential applicant conduct a study or gather
information not previously identified and specifies the basis for its
request, under paragraphs (b)(4)(i)-(vi) of this section, the potential
applicant will promptly initiate the study or gather the information,
unless the Director of the Office of Hydropower Licensing determines
under paragraph (b)(5) of this section either that the study or
information is unreasonable or unnecessary or that use of the
methodology requested by a resource agency or Indian tribe for
conducting the study is not a generally accepted practice.
(3) (i) The results of studies and information gathering referenced
in paragraphs (c)(1)(ii) and (c)(2) of this section will be treated as
additional information; and
(ii) Filing and acceptance of an application will not be delayed and
an application will not be considered deficient or patently deficient
pursuant to 4.32 (e)(1) or (e)(2) of this chapter merely because the
study or information gathering is not complete before the application is
filed.
(4) A potential applicant must provide each resource agency and
Indian tribe with:
(i) A copy of its draft application that:
(A) Indicates the type of application the potential applicant expects
to file with the Commission; and
(B) Responds to any comments and recommendations made by any resource
agency or Indian tribe either during the first stage of consultation or
under paragraph (c)(2) of this section;
(ii) The results of all studies and information gathering either
requested by that resource agency or Indian tribe in the first stage of
consultation (or under paragraph (c)(2) of this section if available) or
which pertains to resources of interest to that resource agency or
Indian tribe and which were identified by the potential applicant
pursuant to paragraph (b)(1)(vi) of this section, including a discussion
of the results and any proposed protection, mitigation, or enhancement
measure; and
(iii) A written request for review and comment.
(5) A resource agency or Indian tribe will have 90 days from the date
of the potential applicant's letter transmitting the paragraph (c)(4) of
this section information to it to provide written comments on the
information submitted by a potential applicant under paragraph (c)(4) of
this section.
(6) If the written comments provided under paragraph (c)(5) of this
section indicate that a resource agency or Indian tribe has a
substantive disagreement with a potential applicant's conclusions
regarding resource impacts or its proposed protection, mitigation, or
enhancement measures, the potential applicant will:
(i) Hold at least one joint meeting with the disagreeing resource
agency or Indian tribe and other agencies with similar or related areas
of interest, expertise, or responsibility not later than 60 days from
the date of the disagreeing agency's or Indian tribe's written comments
to discuss and to attempt to reach agreement on its plan for
environmental protection, mitigation, or enhancement measures; and
(ii) Consult with the disagreeing agency or Indian tribe and other
agencies with similar or related areas of interest, expertise, or
responsibility on the scheduling of the joint meeting and provide the
disagreeing resource agency or Indian tribe, other agencies with similar
or related areas of interest, expertise, or responsibility, and the
Commission with written notice of the time and place of each meeting and
a written agenda of the issues to be discussed at the meeting at least
15 days in advance.
(7) The potential applicant and any disagreeing resource agency or
Indian tribe may conclude a joint meeting with a document embodying any
agreement among them regarding environmental protection, mitigation, or
enhancement measures and any issues that are unresolved.
(8) The potential applicant must describe all disagreements with a
resource agency or Indian tribe on technical or environmental
protection, mitigation, or enhancement measures in its application,
including an explanation of the basis for the applicant's disagreement
with the resource agency or Indian tribe, and must include in its
application any document developed pursuant to paragraph (c)(7) of this
section.
(9) A potential applicant may file an application with the Commission
if:
(i) It has complied with paragraph (c)(4) of this section and no
resource agency or Indian tribe has responded with substantive
disagreements by the deadline specified in paragraph (c)(5) of this
section; or
(ii) It has complied with paragraph (c)(6) of this section if any
resource agency or Indian tribe has responded with substantive
disagreements.
(10) The second stage of consultation ends:
(i) Ninety days after the submittal of information pursuant to
paragraph (c)(4) of this section in cases where no resource agency or
Indian tribe has responded with substantive disagreements; or
(ii) At the conclusion of the last joint meeting held pursuant to
paragraph (c)(6) of this section in cases where a resource agency or
Indian tribe has responded with substantive disagreements.
(d) Third stage of consultation. (1) The third stage of consultation
is initiated by the filing of an application for a new license, nonpower
license, exemption from licensing, or surrender of license, accompanied
by a transmittal letter certifying that at the same time copies of the
application are being mailed to the resource agencies, Indian tribes,
and other government offices specified in paragraph (d)(2) of this
section and 16.10(f) of this part, if applicable.
(2) As soon as an applicant files such application documents with the
Commission, or promptly after receipt in the case of documents described
in paragraph (d)(2)(iii) of this section, as the Commission may direct,
the applicant must serve on every resource agency and Indian tribe
consulted, on other government offices, and, in the case of applications
for surrender or nonpower license, any state, municipal, interstate, or
Federal agency which is authorized to assume regulatory supervision over
the land, waterways, and facilities covered by the application for
surrender or nonpower license, copies of:
(i) Its application for a new license, a nonpower license, an
exemption from licensing, or a surrender of the project;
(ii) Any deficiency correction, revision, supplement, response to
additional information request, or amendment to the application; and
(iii) Any written correspondence from the Commission requesting the
correction of deficiencies or the submittal of additional information.
(e) Resource agency or Indian tribe waiver of compliance with
consultation requirement. (1) If a resource agency or Indian tribe
waives in writing compliance with any requirement of this section, a
potential applicant does not have to comply with that requirement as to
that agency or Indian tribe.
(2) If a resource agency or Indian tribe fails to timely comply with
a provision regarding a requirement of this section, a potential
applicant may proceed to the next sequential requirement of this section
without waiting for the resource agency or Indian tribe to comply.
(3) The failure of a resource agency or Indian tribe to timely comply
with a provision regarding a requirement of this section does not
preclude its participation in subsequent stages of the consultation
process.
(f) Application requirements documenting consultation and any
disagreements with resource agencies or Indian tribes. An applicant must
show in Exhibit E of its application that it has met the requirements of
paragraphs (b) through (d) of this section, and 16.8(i), and must
include:
(1) Any resource agency's or Indian tribe's letters containing
comments, recommendations, and proposed terms and conditions;
(2) Any letters from the public containing comments and
recommendations;
(3) Notice of any remaining disagreement with a resource agency or
Indian tribe on:
(i) The need for a study or the manner in which a study should be
conducted and the applicant's reasons for disagreement, and
(ii) Information on any environmental protection, mitigation, or
enhancement measure, including the basis for the applicant's
disagreement with the resource agency or Indian tribe.
(4) Evidence of any waivers under paragraph (e) of this section;
(5) Evidence of all attempts to consult with a resource agency or
Indian tribe, copies of related documents showing the attempts, and
documents showing the conclusion of the second stage of consultation;
(6) An explanation of how and why the project would, would not, or
should not, comply with any relevant comprehensive plan as defined in
2.19 of this chapter and a description of any relevant resource agency
or Indian tribe determination regarding the consistency of the project
with any such comprehensive plan;
(7)(i) With regard to certification requirements for a license
applicant under section 401(a)(1) of the Clean Water Act:
(A) A copy of the water quality certification;
(B) A copy of the request for certification, including proof of the
date on which the certifying agency received the request; or
(C) Evidence of waiver of water quality certification as described in
paragraph (f)(7)(ii) of this section.
(ii) A certifying agency is deemed to have waived the certification
requirements of section 401(a)(1) of the Clean Water Act if the
certifying agency has not denied or granted certification by one year
after the date the certifying agency received a written request for
certification. If a certifying agency denies certification, the
applicant must file a copy of the denial within 30 days after the
applicant received it.
(iii) Any amendment to an application for a license requires a new
request for certification if the amendment would have a material adverse
impact on the water quality in the discharge from the project.
(8) A description of how the applicant's proposal addresses the
significant resource issues raised by members of the public during the
joint meeting held pursuant to paragraph (b)(2) of this section.
(g) Requests for privileged treatment of pre-filing submission. If a
potential applicant requests privileged treatment of any information
submitted to the Commission during pre-filing consultation (except for
the information specified in paragraph (b)(1) of this section), the
Commission will treat the request in accordance with the provisions in
388.112 of this chapter until the date the application is filed with the
Commission.
(h) Other meetings. Prior to holding a meeting with a resource
agency or Indian tribe, other than a joint meeting pursuant to paragraph
(b)(2)(i) or (c)(6)(i) of this section, a potential applicant must
provide the Commission and each resource agency or Indian tribe (with an
area of interest, expertise, or responsibility similar or related to
that of the resource agency or Indian tribe with which the potential
applicant is to meet) with written notice of the time and place of each
meeting and a written agenda of the issues to be discussed at the
meeting at least 15 days in advance.
(i) Public participation. (1) At least 14 days in advance of the
joint meeting held pursuant to paragraph (b)(2), the potential applicant
must publish notice, at least once, of the purpose, location, and timing
of the joint meeting, in a daily or weekly newspaper published in the
county or counties in which the existing project or any part thereof or
the lands affected thereby are situated. The notice shall include a
copy of the written agenda of the issues to be discussed at the joint
meeting prepared pursuant to paragraph (b)(2)(ii) of this section.
(2)(i) A potential applicant must make available to the public for
inspection and reproduction the information specified in paragraph
(b)(1) of this section from the date on which the notice required by
paragraph (i)(1) of this section is first published until the date of
the joint meeting required by paragraph (b)(2) of this section.
(ii) The provisions of 16.7(e) shall govern the form and manner in
which the information is to be made available for public inspection and
reproduction.
(iii) A potential applicant must make available to the public for
inspection at the joint meeting required by paragraph (b)(2) of this
section the information specified in paragraph (b)(1) of this section.
(j) Transition provisions. (1) The provisions of this section are
not applicable to applications filed before July 3, 1989.
(2) The provisions of paragraphs (a) and (b) of this section are not
applicable to potential applicants that complied with the provisions of
4.38 (a) and (b)(1) of this chapter prior to July 3, 1989.
(3) The provisions of paragraph (c) are not applicable to potential
applicants that complied with the provisions of 4.38(b)(2) of this
chapter prior to July 3, 1989.
(4)(i) Any applicant that files its application on or after July 3,
1989 and that complied with the provisions of 4.38 (a) and (b)(1) of
this chapter prior to July 3, 1989 must hold a public meeting, within 90
days from July 3, 1989, at or near the site of the existing project to
generally explain the potential applicant's proposal for the site and to
obtain the views of the public regarding resource issues that should be
addressed in any application for new license that may be filed by the
potential applicant. The public meeting must include both day and
evening sessions, and the potential applicant must make either audio
recordings or written transcripts of both sessions.
(ii) At least 14 days in advance of the meeting, the potential
applicant must publish notice, at least once, of the purpose, location,
and timing of the meeting, in a daily or weekly newspaper published in
the county or counties in which the existing project or any part thereof
or the lands affected thereby are situated.
(iii)(A) A potential applicant must make available to the public for
inspection and reproduction information comparable to that specified in
paragraph (b)(1) from the date on which the notice required by paragraph
(j)(4)(ii) is first published until the date of the public meeting
required by paragraph (j)(4)(i).
(B) The provisions of 16.7(e) shall govern the form and manner in
which the information is to be made available for public inspection and
reproduction.
(C) A potential applicant must make available to the public for
inspection at both sessions of the public meeting required by paragraph
(j)(4)(i) of this section the information specified in paragraph
(j)(4)(iii)(A).
(D) A potential applicant must upon request promptly provide to the
Commission and any resource agency or Indian tribe copies of the audio
recordings or written transcripts of the sessions of the public meeting.
(iv) Any applicant holding a public meeting pursuant to paragraph
(j)(4)(i) must include in its filed application a description of how the
applicant's proposal addresses the significant resource issues raised
during the public meeting.
(5) All requests for waiver of, or clarification regarding, the
application of the provisions of this subsection to a proceeding must be
submitted to the Director of the Office of Hydropower Licensing not
later than 90 days after July 3, 1989 and will be subject to, and
processed in accordance with, the provisions of paragraph (b)(5).
(6) A potential applicant that has initiated consultation with
resource agencies in accord with this section must initiate consultation
with Indian tribes meeting the criteria set forth in 16.2(f) not later
than February 9, 1990..
(Order 513, 54 FR 23806, June 2, 1989, as amended by Order 513-A, 55
FR 16, Jan. 2, 1990; Order 533, 56 FR 23154, May 20, 1991; 56 FR
61156, Dec. 2, 1991)
18 CFR 16.9 Applications for new licenses and nonpower licenses for
projects subject to sections 14 and 15 of the Federal Power Act.
(a) Applicability. This section applies to an applicant for a new
license or nonpower license for a project subject to sections 14 and 15
of the Federal Power Act.
(b) Filing requirement. (1) An applicant for a license under this
section must file its application at least 24 months before the existing
license expires.
(2) An application for a license under this section must meet the
requirements of 4.32 (except that the Director of the Office of
Hydropower Licensing may provide more than 90 days in which to correct
deficiencies in applications) and, as appropriate, 4.41, 4.51, or 4.61
of this chapter.
(3) The requirements of 4.35 of this chapter do not apply to an
application under this section, except that the Commission will reissue
a public notice of the application in accordance with the provisions of
16.9(d)(1) if an amendment described in 4.35(f) of this chapter is
filed.
(4) If the Commission rejects or dismisses an application pursuant to
the provisions of 4.32 of this chapter, the application may not be
refiled after the new license application filing deadline specified in
16.9(b)(1).
(c) Final amendments. All amendments to an application, including
the final amendment, must be filed with the Commission and served on all
competing applicants no later than the date specified in the notice
issued under paragraph (d)(2).
(d) Commission notice. (1) Upon acceptance of an application for a
new license or a nonpower license, the Commission will give notice of
the application and of the dates for comment, intervention, and protests
by:
(i) Publishing notice in the Federal Register;
(ii) Publishing notice once every week for four weeks in a daily or
weekly newspaper published in the county or counties in which the
project or any part thereof or the lands affected thereby are situated;
and
(iii) Notifying appropriate Federal, state, and interstate resource
agencies and Indian tribes by mail.
(2) Within 60 days after the new license application filing deadline,
the Commission will issue a notice on the processing deadlines
established under 4.32 of this chapter, estimated dates for further
processing deadlines under 4.32 of this chapter, deadlines for
complying with the provisions of 4.36(d)(2) (ii) and (iii) of this
chapter in cases where competing applications are filed, and the date
for final amendments and will:
(i) Publish the notice in the Federal Register;
(ii) Provide the notice to appropriate Federal, state, and interstate
resource agencies and Indian tribes; and
(iii) Serve the notice on all parties to the proceedings pursuant to
385.2010 of this chapter.
(3) Where two or more mutually exclusive competing applications have
been filed for the same project, the final amendment date and deadlines
for complying with the provisions of 4.36(d)(2) (ii) and (iii) of this
chapter established pursuant to the notice issued under paragraph (d)(2)
of this section will be the same for all such applications.
(4) The provisions of 4.36(d)(2)(i) of this chapter will not be
applicable to applications filed pursuant to this section.
18 CFR 16.10 Information to be provided by an applicant for new
license: Filing requirements.
(a) Information to be supplied by all applicants. All applicants for
a new license under this part must file the following information with
the Commission:
(1) A discussion of the plans and ability of the applicant to operate
and maintain the project in a manner most likely to provide efficient
and reliable electric service, including efforts and plans to:
(i) Increase capacity or generation at the project;
(ii) Coordinate the operation of the project with any upstream or
downstream water resource projects; and
(iii) Coordinate the operation of the project with the applicant's or
other electrical systems to minimize the cost of production.
(2) A discussion of the need of the applicant over the short and long
term for the electricity generated by the project, including:
(i) The reasonable costs and reasonable availability of alternative
sources of power that would be needed by the applicant or its customers,
including wholesale customers, if the applicant is not granted a license
for the project;
(ii) A discussion of the increase in fuel, capital, and any other
costs that would be incurred by the applicant or its customers to
purchase or generate power necessary to replace the output of the
licensed project, if the applicant is not granted a license for the
project;
(iii) The effect of each alternative source of power on:
(A) The applicant's customers, including wholesale customers;
(B) The applicant's operating and load characteristics; and
(C) The communities served or to be served, including any
reallocation of costs associated with the transfer of a license from the
existing licensee.
(3) The following data showing need and the reasonable cost and
availability of alternative sources of power:
(i) The average annual cost of the power produced by the project,
including the basis for that calculation;
(ii) The projected resources required by the applicant to meet the
applicant's capacity and energy requirements over the short and long
term including:
(A) Energy and capacity resources, including the contributions from
the applicant's generation, purchases, and load modification measures
(such as conservation, if considered as a resource), as separate
components of the total resources required;
(B) A resource analysis, including a statement of system reserve
margins to be maintained for energy and capacity; and
(C) If load management measures are not viewed as resources, the
effects of such measures on the projected capacity and energy
requirements indicated separately;
(iii) For alternative sources of power, including generation of
additional power at existing facilities, restarting deactivated units,
the purchase of power off-system, the construction or purchase and
operation of a new power plant, and load management measures such as
conservation:
(A) The total annual cost of each alternative source of power to
replace project power;
(B) The basis for the determination of projected annual cost; and
(C) A discussion of the relative merits of each alternative,
including the issues of the period of availability and dependability of
purchased power, average life of alternatives, relative equivalent
availability of generating alternatives, and relative impacts on the
applicant's power system reliability and other system operating
characteristics; and
(iv) The effect on the direct providers (and their immediate
customers) of alternate sources of power.
(4) If an applicant uses power for its own industrial facility and
related operations, the effect of obtaining or losing electricity from
the project on the operation and efficiency of such facility or related
operations, its workers, and the related community.
(5) If an applicant is an Indian tribe applying for a license for a
project located on the tribal reservation, a statement of the need of
such tribe for electricity generated by the project to foster the
purposes of the reservation.
(6) A comparison of the impact on the operations and planning of the
applicant's transmission system of receiving or not receiving the
project license, including:
(i) An analysis of the effects of any resulting redistribution of
power flows on line loading (with respect to applicable thermal,
voltage, or stability limits), line losses, and necessary new
construction of transmission facilities or upgrading of existing
facilities, together with the cost impact of these effects;
(ii) An analysis of the advantages that the applicant's transmission
system would provide in the distribution of the project's power; and
(iii) Detailed single-line diagrams, including existing system
facilities identified by name and circuit number, that show system
transmission elements in relation to the project and other principal
interconnected system elements. Power flow and loss data that represent
system operating conditions may be appended if applicants believe such
data would be useful to show that the operating impacts described would
be beneficial.
(7) If the applicant has plans to modify existing project facilities
or operations, a statement of the need for, or usefulness of, the
modifications, including at least a reconnaissance-level study of the
effect and projected costs of the proposed plans and any alternate
plans, which in conjunction with other developments in the area would
conform with a comprehensive plan for improving or developing the
waterway and for other beneficial public uses as defined in section
10(a)(1) of the Federal Power Act.
(8) If the applicant has no plans to modify existing project
facilities or operations, at least a reconnaissance-level study to show
that the project facilities or operations in conjunction with other
developments in the area would conform with a comprehensive plan for
improving or developing the waterway and for other beneficial public
uses as defined in section 10(a)(1) of the Federal Power Act.
(9) A statement describing the applicant's financial and personnel
resources to meet its obligations under a new license, including
specific information to demonstrate that the applicant's personnel are
adequate in number and training to operate and maintain the project in
accordance with the provisions of the license.
(10) If an applicant proposes to expand the project to encompass
additional lands, a statement that the applicant has notified, by
certified mail, property owners on the additional lands to be
encompassed by the project and governmental agencies and subdivisions
likely to be interested in or affected by the proposed expansion.
(11) The applicant's electricity consumption efficiency improvement
program, as defined under section 10(a)(2)(C) of the Federal Power Act,
including:
(i) A statement of the applicant's record of encouraging or assisting
its customers to conserve electricity and a description of its plans and
capabilities for promoting electricity conservation by its customers;
and
(ii) A statement describing the compliance of the applicant's energy
conservation programs with any applicable regulatory requirements.
(12) The names and mailing addresses of every Indian tribe with land
on which any part of the proposed project would be located or which the
applicant reasonably believes would otherwise be affected by the
proposed project.
(b) Information to be provided by an applicant who is an existing
licensee. An existing licensee that applies for a new license must
provide:
(1) The information specified in paragraph (a).
(2) A statement of measures taken or planned by the licensee to
ensure safe management, operation, and maintenance of the project,
including:
(i) A description of existing and planned operation of the project
during flood conditions;
(ii) A discussion of any warning devices used to ensure downstream
public safety;
(iii) A discussion of any proposed changes to the operation of the
project or downstream development that might affect the existing
Emergency Action Plan, as described in subpart C of part 12 of this
chapter, on file with the Commission;
(iv) A description of existing and planned monitoring devices to
detect structural movement or stress, seepage, uplift, equipment
failure, or water conduit failure, including a description of the
maintenance and monitoring programs used or planned in conjunction with
the devices; and
(v) A discussion of the project's employee safety and public safety
record, including the number of lost-time accidents involving employees
and the record of injury or death to the public within the project
boundary.
(3) A description of the current operation of the project, including
any constraints that might affect the manner in which the project is
operated.
(4) A discussion of the history of the project and record of programs
to upgrade the operation and maintenance of the project.
(5) A summary of any generation lost at the project over the last
five years because of unscheduled outages, including the cause,
duration, and corrective action taken.
(6) A discussion of the licensee's record of compliance with the
terms and conditions of the existing license, including a list of all
incidents of noncompliance, their disposition, and any documentation
relating to each incident.
(7) A discussion of any actions taken by the existing licensee
related to the project which affect the public.
(8) A summary of the ownership and operating expenses that would be
reduced if the project license were transferred from the existing
licensee.
(9) A statement of annual fees paid under Part I of the Federal Power
Act for the use of any Federal or Indian lands included within the
project boundary.
(c) Information to be provided by an applicant who is not an existing
licensee. An applicant that is not an existing licensee must provide:
(1) The information specified in paragraph (a).
(2) A statement of the applicant's plans to manage, operate, and
maintain the project safely, including:
(i) A description of the differences between the operation and
maintenance procedures planned by the applicant and the operation and
maintenance procedures of the existing licensee;
(ii) A discussion of any measures proposed by the applicant to
implement the existing licensee's Emergency Action Plan, as described in
subpart C of part 12 of this chapter, and any proposed changes;
(iii) A description of the applicant's plans to continue safety
monitoring of existing project instrumentation and any proposed changes;
and
(iv) A statement indicating whether or not the applicant is
requesting the licensee to provide transmission services under section
15(d) of the Federal Power Act.
(d) Extended deadline for certain applicants. If an applicant must
file an application under 16.9 within 90 days after July 3, 1989, that
applicant may provide the information required in this section within 90
days after the date on which it files the application.
(e) Inclusion in application. Except as permitted in paragraph (d),
the information required to be provided by this section must be included
in the application as a separate exhibit labeled ''Exhibit H.''
(f) Filing requirements. For all applications for new licenses due
to be filed with the Commission on or after June 19, 1991, and prior to
January 1, 1992, the following number of copies must be submitted to the
Commission and served on resource agencies
(1) If the application is hand-delivered to the Commission, as by
messenger or courier service, only an original and five copies of the
application need be delivered to the Secretary, but the filing must be
accompanied by a transmittal letter certifying that at the same time
five copies of the application are being hand delivered to the Director,
Division of Project Review, Office of Hydropower Licensing, and copies
are being mailed to the resource agencies consulted and the government
offices specified in 16.8(d)(2) of this part, including each of the
following:
(i) The Regional Office of the Commission for the area in which the
project is located;
(ii) The U.S. Department of the Interior, Washington, DC (6 copies
for projects located in the Eastern United States, including Minnesota,
Iowa, Missouri, Arkansas, and Louisiana, and 9 copies for projects
located in the Western United States westward of the western boundaries
of Minnesota, Iowa, Missouri, Arkansas, and Louisiana);
(iii) The U.S. Bureau of Land Management District Office for the area
in which the project is located; and
(iv) The U.S. Corps of Engineers District Office for the area in
which the project is located.
(2) If the application is mailed to the Commission, only an original
and ten copies of the application need be sent to the Secretary, but the
application must be accompanied by a transmittal letter certifying that
at the same time copies of the application are being mailed to each of
the offices listed in paragraphs (f)(1) (i) through (iv) of this
section.
(Order 513, 54 FR 23806, June 2, 1989, as amended by Order 533, 56 FR
23154, May 20, 1991; 56 FR 61156, Dec. 2, 1991)
18 CFR 16.11 Nonpower licenses.
(a) Information to be provided by all applicants for nonpower
licenses. (1) An applicant for a nonpower license must provide the
following information in its application:
(i) The information required by 4.51 or 4.61 of this chapter, as
appropriate;
(ii) A description of the nonpower purpose for which the project is
to be used;
(iii) A showing of how the nonpower use conforms with a comprehensive
plan for improving or developing the waterway and for other beneficial
public uses as defined in section 10(a)(1) of the Federal Power Act;
(iv) A statement of any impact that converting the project to
nonpower use may have on the power supply of the system served by the
project, including the additional cost of power if an alternative
generating source is used to offset the loss of the project's
generation;
(v) A statement identifying the state, municipal, interstate, or
Federal agency, which is authorized and willing to assume regulatory
supervision over the land, waterways, and facilities to be included
within the nonpower project;
(vi) Copies of written communication and documentation of oral
communication that the applicant may have had with any jurisdictional
agency or governmental unit authorized and willing to assume regulatory
control over the project and the point of time at which the agency or
unit would assume regulatory control;
(vii) A statement that demonstrates that the applicant has complied
with the requirements of 16.8(d)(2);
(viii) A proposal that shows the manner in which the applicant plans
to remove or otherwise dispose of the project's power facilities;
(ix) Any proposal to repair or rehabilitate any nonpower facilities;
(x) A statement of the costs associated with removing the project's
power facilities and with any necessary restoration and rehabilitation
work; and
(xi) A statement that demonstrates that the applicant has resources
to ensure the integrity and safety of the remaining project facilities
and to maintain the nonpower functions of the project until the
governmental unit or agency assumes regulatory control over the project.
(2) If an applicant must file an application for a nonpower license
under 16.9 within 90 days after July 3, 1989, that applicant may
provide the information required in paragraph (a) (except the
information specified in paragraph (a)(1)(i)), within 90 days after the
date it files the application.
(b) Termination of a proceeding for a nonpower license. The
Commission may deny an application for a nonpower license and turn the
project over to any agency that has jurisdiction over the land or
reservations if:
(1) An existing project is located on public lands or reservations of
the United States;
(2) Neither the existing licensee nor any other entity has filed an
application for a new license for the project;
(3) No one has filed a recommendation to take over the project
pursuant to 16.14; and
(4) The agency that has jurisdiction over the land or reservations
demonstrates that it is able and willing to:
(i) Accept immediate responsibility for the nonpower use of the
project; and.
(ii) Pay the existing licensee for its net investment in the project
and any severance damages specified in section 14(a) of the Federal
Power Act.
(c) Termination of nonpower license. A nonpower license will be
terminated by Commission order when the Commission determines that a
state, municipal, interstate, or Federal agency has jurisdiction over,
and is willing to assume regulatory responsibility for, the land,
waterways, and facilities included within the nonpower license.
18 CFR 16.12 Application for exemption from licensing by a licensee
whose license is subject to sections 14 and 15 of the Federal Power Act.
(a) An existing licensee whose license is subject to sections 14 and
15 of the Federal Power Act may apply for an exemption for the project.
(b) An applicant for an exemption under paragraph (a) must meet the
requirements of subpart K or subpart J of part 4 of this chapter, and
16.5, 16.6, 16.7, 16.8, 16.9(b) (1), (2) (except the requirement to
comply with 4.41, 4.51, or 4.61 of this chapter), 16.9(c), 16.10(a),
16.10(b), 16.10(d), and 16.10(e).
(c) The Commission will process an application by an existing
licensee for an exemption for the project in accordance with
16.9(b)(3), 16.9(b)(4), and 16.9(d).
(d) If a license application is filed in competition with an
application for exemption filed by the existing licensee, the Commission
will decide among the competing applications in accordance with the
standards of 16.13 and not in accordance with the provisions of
4.37(d)(2) of this chapter.
18 CFR 16.13 Standards and factors for issuing a new license.
(a) In determining whether a final proposal for a new license under
section 15 of the Federal Power Act is best adapted to serve the public
interest, the Commission will consider the factors enumerated in
sections 15(a)(2) and (a)(3) of the Federal Power Act.
(b) If there are only insignificant differences between the final
applications of an existing licensee and a competing applicant after
consideration of the factors enumerated in section 15(a)(2) of the
Federal Power Act, the Commission will determine which applicant will
receive the license after considering:
(1) The existing licensee's record of compliance with the terms and
conditions of the existing license; and
(2) The actions taken by the existing licensee related to the project
which affect the public.
(c) An existing licensee that files an application for a new license
in conjunction with an entity or entities that are not currently
licensees of all or part of the project will not be considered an
existing licensee for the purpose of the insignificant differences
provision of section 15(a)(2) of the Federal Power Act.
18 CFR 16.13 Subpart C -- Takeover Provisions for Projects Subject to Sections 14 and 15 of the Federal Power Act
18 CFR 16.14 Departmental recommendation for takeover.
(a) A Federal department or agency may file a recommendation that the
United States exercise its right to take over a hydroelectric power
project with a license that is subject to sections 14 and 15 of the
Federal Power Act. The recommendation must:
(1) Be filed no earlier than five years before the license expires
and no later than the end of the comment period specified by the
Commission in:
(i) A notice of application for a new license, a nonpower license, or
an exemption for the project; or
(ii) A notice of an amendment to an application for a new license, a
nonpower license, or an exemption;
(2) Be filed in accordance with the formal requirements for filings
in subpart T of part 385 of the Commission's regulations and be served
on each relevant Federal and state resource agency, all applicants for
new license, nonpower license or exemption, and any other party to the
proceeding;
(3) Specify the project works that would be taken over by the United
States;
(4) Describe the proposed Federal operation of the project, including
any plans for its redevelopment, and discuss the manner in which
takeover would serve the public interest as fully as non-Federal
development and operation;
(5) State whether the agency intends to undertake the operation of
the project; and
(6) Include the information required by 4.41, 4.51, or 4.61 of this
chapter, as appropriate.
(b) A department or agency that files a takeover recommendation
becomes a party to the proceeding.
(c) An applicant or potential applicant for a new license, a nonpower
license, or an exemption that involves a takeover recommendation may
file a reply to the recommendation, within 120 days from the date the
takeover recommendation is filed with the Commission. The reply must be
filed with the Commission in accordance with part 385 of the
Commission's regulations and a copy of such a reply must be served on
the agency recommending the takeover and on any other party to the
proceeding.
18 CFR 16.15 Commission recommendation to Congress.
Upon receipt of a recommendation from any Federal department or
agency, a proposal of any party, or on the Commission's own motion, and
after notice and opportunity for hearing, the Commission may determine
that a project may be taken over by the United States, issue an order on
its findings and recommendations, and forward a copy to Congress.
18 CFR 16.16 Motion for stay by Federal department or agency.
(a) Within 30 days of the date on which an order granting a new
license or exemption is issued, a Federal department or agency that has
filed a takeover recommendation under 16.14 may file a motion under
385.2010 of this chapter to request a stay of the effective date of the
license or exemption order.
(b)(1) If a Federal department or agency files a motion under
paragraph (a), the Commission will stay the effective date of the order
issuing the license or exemption for two years.
(2) The stay issued under paragraph (b)(1) of this section may be
terminated either:
(i) Upon motion of the department or agency that requested the stay;
or
(ii) By action of Congress.
(c) The Commission will notify Congress if:
(1) An order granting a stay under paragraph (b)(1) of this section
is issued;
(2) Any license or exemption order becomes effective by reason of the
termination of a stay; or
(3) Any license or exemption order becomes effective by reason of the
expiration of a stay.
(d) The Commission's order granting the license or exemption will
automatically become effective:
(1) Thirty days after issuance, if no request for stay is filed,
provided that no appeal or rehearing is filed;
(2) When the period of the stay expires; or
(3) When the stay is terminated under paragraph (b)(2) of this
section.
18 CFR 16.17 Procedures upon Congressional authorization of takeover.
If Congress authorizes the takeover of a hydroelectric power project
as provided under section 14 of the Federal Power Act:
(a) The Commission or the Director of the Office of Hydropower
Licensing will notify the existing licensee in writing of the
authorization at least two years before the takeover occurs; and
(b) The licensee must present any claim for compensation to the
Commission:
(1) Within six months of issuance of the notice of takeover; and
(2) As provided in section 14 of the Federal Power Act.
18 CFR 16.17 Subpart D -- Annual Licenses for Projects Subject to Sections 14 and 15 of the Federal Power Act
18 CFR 16.18 Annual licenses for projects subject to sections 14 and 15
of the Federal Power Act.
(a) This section applies to projects with licenses subject to
sections 14 and 15 of the Federal Power Act.
(b) The Commission will issue an annual license to an existing
licensee under the terms and conditions of the existing license upon
expiration of its existing license to allow:
(1) The licensee to continue to operate the project while the
Commission reviews any applications for a new license, a nonpower
license, an exemption, or a surrender;
(2) The orderly removal of a project, if the United States does not
take over a project and no new power or nonpower license or exemption
will be issued; or
(3) The orderly transfer of a project to:
(i) The United States, if takeover is elected; or
(ii) A new licensee, if a new power or nonpower license is issued to
that licensee.
(c) An annual license issued under this section will be considered
renewed automatically without further order of the Commission, unless
the Commission orders otherwise.
(d) In issuing an annual license, the Commission may incorporate
additional or revised interim conditions if necessary and practical to
limit adverse impacts on the environment.
(Order 513, 54 FR 23806, June 2, 1989, as amended by Order 513-A, 55
FR 18, Jan. 2, 1990; Order 540, 57 FR 21738, May 22, 1992)
18 CFR 16.18 Subpart E -- Projects With Minor and Minor Part License Not Subject to Sections 14 and 15 of the Federal Power Act
18 CFR 16.19 Procedures for an existing licensee of a minor
hydroelectric power project or of a minor part of a hydroelectric power
project with a license not subject to sections 14 and 15 of the Federal
Power Act.
(a) Applicability. This section applies to an existing licensee of a
minor hydroelectric power project or of a minor part of a hydroelectric
power project that is not subject to sections 14 and 15 of the Federal
Power Act.
(b) Notification procedures. (1) An existing licensee with a minor
license or a license for a minor part of a hydroelectric project must
file a notice of intent pursuant to 16.6(b).
(2) If the license of an existing licensee expires on or after
October 17, 1994, the licensee must notify the Commission as required
under 16.6(b) at least five years before the expiration of the existing
license.
(3) Except as provided in paragraph (b)(4) of this section, if the
license of an existing licensee expires before October 17, 1994, the
licensee must notify the Commission as required under 16.6(b) no later
than September 1, 1989.
(4) The requirement in paragraph (b)(3) of this section does not
apply if an applicant filed a notice of intent as required by 16.6(b)
or an application for a subsequent license on or before July 3, 1989.
(5) The Commission will give notice of a licensee's intent to file or
not to file an application for a subsequent license in accordance with
16.6(d).
(c) Requirement to make information available. (1) Except as
provided in paragraph (c)(2) of this section, a licensee must make the
information described in 16.7 available to the public for inspection
and reproduction when it gives notice to the Commission under paragraph
(b).
(2) The requirement of paragraph (c)(1) of this section does not
apply if an applicant filed an application for a subsequent license on
or before (insert the effective date of the rule).
18 CFR 16.20 Applications for subsequent license for a project with an
expiring license not subject to sections 14 and 15 of the Federal Power
Act.
(a) Applicability. This section applies to an application for
subsequent license for a project with an expiring license that is not
subject to sections 14 and 15 of the Federal Power Act.
(b) Licensing proceeding. (1) An applicant for a license for a
project with an expiring license not subject to sections 14 and 15 of
the Federal Power Act must file its application under Part I of the
Federal Power Act.
(2) The provisions of section 7(a) of the Federal Power Act do not
apply to licensing proceedings involving an application described in
paragraph (b)(1).
(c) Requirement to file. (1) Except as provided in paragraphs (c)(2)
and (c)(3) of this section, an applicant must file an application for
subsequent license at least 24 months before the expiration of the
existing license.
(2) The requirement in paragraph (c)(1) does not apply if the license
is due to expire within three years of July 3, 1989.
(3) An applicant intending to file an application for subsequent
license for a project whose license is due to expire within four years
of July 3, 1989, must file an application at least 12 months before the
date on which the existing license expires.
(d) Requirements for and processing of applications. An application
for subsequent license must meet the requirements of, and will be
processed in accordance with, 16.5, 16.8, 16.9(b)(2), 16.9(b)(3),
16.9(b)(4), 16.9(c), and 16.9(d).
(e) Applicant notice. An applicant for subsequent license or
exemption that proposes to expand an existing project to encompass
additional lands must include in its application a statement that the
applicant has notified, by certified mail, property owners on the
additional lands to be encompassed by the project and governmental
agencies and subdivisions likely to be interested in or affected by the
proposed expansion.
18 CFR 16.21 Operation of projects with a minor or minor part license
not subject to sections 14 and 15 of the Federal Power Act after
expiration of a license.
(a) A licensee of a minor or minor part project not subject to
sections 14 and 15 of the Federal Power Act that has filed an
application for a subsequent license or exemption may continue to
operate the project in accordance with the terms and conditions of the
license after the minor or minor part license expires until the
Commission acts on its application.
(b) If the licensee of a minor or minor part project not subject to
sections 14 and 15 of the Federal Power Act has not filed an application
for a subsequent license or exemption, the Commission may issue an order
requiring the licensee to continue to operate its project in accordance
with the terms and conditions of the license until the Commission either
acts on any applications for subsequent license timely filed by another
entity or takes action pursuant to 16.25 or 16.26.
18 CFR 16.22 Application for an exemption by a licensee with a minor or
minor part license for a project not subject to sections 14 and 15 of
the Federal Power Act.
(a) Applicability. This section applies to an existing licensee with
a license for a project not subject to sections 14 and 15 of the Federal
Power Act.
(b) Information requirements. An applicant for an exemption must
meet the requirements of, and will be processed in accordance with,
subpart K or subpart J of part 4 of this chapter, and 16.5, 16.8,
16.9(b)(2) (except the requirement to comply with 4.41, 4.51, or 4.61
of this chapter), 16.9(b)(3), 16.9(b)(4), 16.9(c), 16.9(d), and
16.20(c).
(c) Standard of comparison. If an application for subsequent license
is filed in competition with an application for exemption by an existing
licensee, the Commission will decide among competing applications in
accordance with the standards of 16.13 and not in accordance with the
provisions of 4.37(d)(2) of this chapter.
18 CFR 16.22 Subpart F -- Procedural Matters
18 CFR 16.23 Failure to file timely notices of intent.
(a) An existing licensee of a water power project with a license
subject to sections 14 and 15 of the Federal Power Act that fails to
file a notice of intent pursuant to 16.6(b) by the deadlines specified
in l6.6(c) shall be deemed to have filed a notice of intent indicating
that it does not intend to file an application for new license, nonpower
license, or exemption.
(b) An existing licensee of a water power project with a license not
subject to sections 14 and 15 of the Federal Power Act that fails to
file a notice of intent pursuant to 16.6(b) by the deadlines specified
in 16.20(c) shall be deemed to have filed a notice of intent indicating
that it does not intend to file an application for subsequent license or
exemption.
18 CFR 16.24 Prohibitions against filing applications for new license,
nonpower license, exemption, or subsequent license.
(a) Licenses subject to sections 14 and 15 of the Federal Power Act.
(1) An existing licensee with a license subject to sections 14 and 15 of
the Federal Power Act that informs the Commission that it does not
intend to file an application for new license, nonpower license, or
exemption for a project, as required by 16.6, may not file an
application for new license, nonpower license, or exemption for the
project, either individually or in conjunction with an entity or
entities that are not currently licensees of the project.
(2) An existing licensee with a license subject to sections 14 and 15
of the Federal Power Act that fails to file an application for new
license, nonpower license, or exemption for a project at least 24 months
before the expiration of the existing license for the project may not
file an application for new license, nonpower license, or exemption for
the project, either individually or in conjunction with an entity or
entities that are not currently licensees of the project.
(b) Licenses not subject to sections 14 and 15 of the Federal Power
Act. (1) An existing licensee with a license not subject to sections 14
and 15 of the Federal Power Act that informs the Commission that it does
not intend to file an application for subsequent license or exemption
for a project, as required by 16.6, may not file an application for
subsequent license or exemption for the project, either individually or
in conjunction with an entity or entities that are not currently
licensees of the project.
(2) An existing licensee with a license not subject to sections 14
and 15 of the Federal Power Act that fails to file an application for
subsequent license or exemption for a project by the deadlines specified
in 16.20(c) may not file an application for subsequent license or
exemption for the project, either individually or in conjunction with an
entity or entities that are not currently licensees of the project.
18 CFR 16.25 Disposition of a project for which no timely application
is filed following a notice of intent to file.
(a) If an existing licensee that indicates in the notice filed
pursuant to 16.6 that it will file an application for new license,
nonpower license, subsequent license, or an exemption does not file its
application individually or in conjunction with an entity or entities
that are not currently licensees of the project at least 24 months
before its existing license expires in the case of licenses subject to
sections 14 and 15 of the Federal Power Act, or by the deadlines
specified in 16.20(c) in the case of licenses not subject to sections
14 and 15 of the Federal Power Act, and no other applicant files an
application within the appropriate time or all pending applications
filed before the applicable filing deadline are subsequently rejected or
dismissed pursuant to 4.32 of this chapter, the Commission will publish
in the Federal Register and once in a daily or weekly newspaper
published in the county or counties in which the project or any part
thereof or the lands affected thereby are situated, notice soliciting
applications from potential applicants other than the existing licensee.
(b) A potential applicant that files a notice of intent within 90
days from the date of the public notice issued pursuant to paragraph
(a):
(1) May apply for a license under Part I of the Federal Power Act and
part 4 of this chapter (except 4.38) within 18 months of the date on
which it files its notice; and
(2) Must comply with the requirements of 16.8 and, if the project
would have a total installed capacity of over 2,000 horsepower, 16.10.
(c) The existing licensee must file a schedule for the filing of a
surrender application for the project, for the approval of the Director
of the Office of Hydropower Licensing, 90 days:
(1) After the due date established for any notice of intent issued
under paragraph (a), if no notices of intent were received; or
(2) After the due date for any application filed under paragraph
(b)(1), if no application has been filed.
(d) Any application for surrender must be filed according to the
approved schedule, must comply with the requirements of 16.8 and part 6
of this chapter, and must provide for disposition of any project
facility.
18 CFR 16.26 Disposition of a project for which no timely application
is filed following a notice of intent not to file.
(a) If an existing licensee indicates in the notice filed pursuant to
16.6 that it will not file an application for new license, nonpower
license, subsequent license, or exemption and no other applicant files
an application at least 24 months before the existing license expires in
the case of licenses subject to sections 14 and 15 of the Federal Power
Act, or by the deadlines specified in 16.20(c) in the case of licenses
not subject to sections 14 and 15 of the Federal Power Act, the Director
of the Office of Hydropower Licensing will provide the existing licensee
with written notice that no timely applications for the project have
been filed.
(b) The existing licensee, within 90 days from the date of the
written notice provided in paragraph (a), must file a schedule for the
filing of a surrender application for the project for the approval of
the Director of the Office of Hydropower Licensing.
(c) Any application for surrender must be filed according to the
approved schedule, must comply with the requirements of 16.8 and part 6
of this chapter, and must provide for disposition of any project
facility.
18 CFR 16.26 PART 20 -- AUTHORIZATION OF THE ISSUANCE OF SECURITIES BY LICENSEES AND COMPANIES SUBJECT TO SECTIONS 19 AND 20 OF THE FEDERAL POWER ACT
18 CFR 20.1 Applicability.
(a) Without special proceeding for regulation. Every security issue
within the scope of the jurisdiction conferred upon the Commission by
sections 19 and 20 of the Federal Power Act shall be subject to the
provisions of 20.2, except a security issue by a person organized and
operating in a State under the laws of which its security issues are
regulated by a State commission, or by any one described in subsection
201(f) of the act. No other security issue within the scope of sections
19 and 20 shall be subject to 20.2 except as provided in paragraph (b)
of this section.
(b) Reservation of possibility of regulation in other cases. Not
later than 10 days prior to any proposed security issuance which is
within the scope of section 19 or section 20 of the act, but excepted by
paragraph (a) of this section, any person or state entitled to do so
under section 19 or section 20, may file a complaint or request in
accordance with the applicable rules of the Commission, or the
Commission upon its own motion may by order initiate a proceeding,
raising the question whether issuance of such security should be
subjected by Commission order to the provisions of 20.2. After notice
of such filing or order, and until such request or complaint is denied
or dismissed or the proceeding initiated by such order is terminated
without subjecting the issuance of the security to the provisions of
20.2, the security in question shall not be issued except it be issued
subject to and in compliance with 20.2.
(Secs. 3(16), 19, 20, 41 Stat. 1063, 1073; secs. 201, 309, 49 Stat.
838, 858; 16 U.S.C. 796 (16), 812, 813, 825k)
(Order 170, 19 FR 2013, Apr. 8, 1954)
18 CFR 20.2 Regulation of issuance of securities.
The licensee or other person issuing or proposing to issue any
security subjected to this section by or pursuant to 20.1, shall be
subject to and shall comply with the same requirements as the Commission
would administer to it if it were a public utility issuing the security
within the meaning and subject to the requirements of section 204 of the
Act and part 34 of this subchapter.
(Secs. 3(16), 19, 20, 41 Stat. 1063, 1073; secs. 201, 309, 49 Stat.
838, 858; 16 U.S.C. 796 (16), 812, 813, 825k)
(Order 170, 19 FR 2013, Apr. 8, 1954)
Cross Reference: For applications for authorization of the issuance
of securities or the assumption of liabilities, see part 34 of this
chapter.
18 CFR 20.2 PART 24 -- DECLARATION OF INTENTION
Authority: 16 U.S.C. 791a-825r; 44 U.S.C. 3501 et seq. ; 42 U.S.C.
7101-7352.
18 CFR 24.1 Filing.
An original and eight conformed copies of each declaration of
intention under the provisions of section 23(b) of the Act shall be
filed. The declaration shall give the name and post office address of
the person to whom correspondence in regard to it shall be addressed,
and shall be accompanied by:
(a) A brief description of the proposed project and its purposes,
including such data as maximum height of the dams, a storage capacity
curve of the reservoir or reservoirs showing the maximum, average, and
minimum operating pool levels, the initial and ultimate installed
capacity of the project, the rated horsepower and head on the turbines,
and a curve of turbine discharge versus output at average and minimum
operating heads.
(b)(1) A general map (one tracing and three prints) of any convenient
size and scale, showing the stream or streams to be utilized and the
approximate location and the general plan of the project.
(2) Also a detailed map of the proposed project area showing all
Federal lands, and lands owned by States, if any, occupied by the
project.
(3) A profile of the river within the vicinity of the project showing
the location of the proposed project and any existing improvements in
the river.
(4) A duration curve and hydrograph for the natural and proposed
regulated flows at the dam site. Furnish references to the published
stream flow records used and submit copies of any unpublished records
used in preparation of these curves.
(c) (1) A definite statement of the proposed method of utilizing
storage or pondage seasonally, weekly and daily, during periods of low
and normal flows after the plant is in operation and the system load has
grown to the extent that the capacity of the plant is required to meet
the load. For example, furnish:
(i) Hydrographs covering a 10-day low water period showing the
natural flow of the stream and the effect thereon caused by operations
of the proposed power plant:
(ii) Similar hydrographs covering a 10-day period during which the
discharge of the stream approximates average recorded yearly flow, and
(iii) Similar hydrographs covering a low water year using average
monthly flows.
(2) A system load curve, both daily and monthly, and the position on
the load curve that the proposed project would have occupied had it been
in operation.
(3) A proposed annual rule of operation for the storage reservoir or
reservoirs.
(Order 175, 19 FR 5217, Aug. 18, 1954, as amended by Order 260, 28 FR
315, Jan. 11, 1963; Order 540, 57 FR 21738, May 22, 1992)
18 CFR 24.1 PART 25 -- APPLICATION FOR VACATION OF WITHDRAWAL AND FOR DETERMINATION PERMITTING RESTORATION TO ENTRY
18 CFR 25.1 Contents of application.
Any application for vacation of a reservation effected by the filing
of an application for preliminary permit or license, or for a
determination under the provisions of section 24 of the Act permitting
restoration for location, entry, or selection under the public lands
laws, or such lands reserved or classified as power sites shall, unless
the subject lands are National Forest Lands, be filed with the Bureau of
Land Management, Department of the Interior, at the Bureau's office in
Washington, D.C. or at the appropriate regional or field office of the
Bureau. If the lands included in such application are National Forest
Lands, the application shall be filed with the U.S. Forest Service,
Department of Agriculture at the Forest Service's office in Washington,
D.C., or at the appropriate regional office of the U.S. Forest Service.
Such application shall contain the following data: (a) Full name of
applicant; (b) post-office address; (c) description of land by legal
subdivisions, including section, township, range, meridian, county,
State, and river basin (both main and tributary) in which the land is
located; (d) public land act under which entry is intended to be made
if land is restored to entry; (e) the use to which it is proposed to
put the land, and a statement as to its suitability for the intended
use.
(Secs. 24, 309, 41 Stat. 1075, as amended; 49 Stat. 858; 16 USC.
818, 825h)
(Order 175, 19 FR 5218, Aug. 18, 1954, as amended by Order 346, 32 FR
7495, May 20, 1967)
Cross Reference: For entries subject to section 24 of the Federal
Power Act, see also 43 CFR subpart 2320.
18 CFR 25.2 Hearings.
A hearing upon such an application may be ordered by the Commission
in its discretion and shall be in accordance with the provisions of
subpart E of part 385 of this chapter.
Note 1: On April 17, 1922, the Commission made the following general
determination:
(a) That where lands of the United States have heretofore been, or
hereafter may be, reserved or classified as power sites, such
reservation or classification being made solely because such lands are
either occupied by power transmission lines or their occupancy and use
for such purposes has been applied for or authorized under appropriate
laws of the United States, and such lands have otherwise no value for
power purposes, and are not occupied in trespass, the Commission
determines that the value of such lands so reserved or classified, or so
applied for or authorized, will not be injured or destroyed for the
purposes of power development by location, entry, or selection under the
public land laws, subject to the reservation of section 24 of the
Federal Water Power Act (41 Stat. 1075; 16 U.S.C. 818).
(b) That when notice is given to the Secretary of the Interior of
reservations made under the provisions of section 24 of the Federal
Water Power Act, such notice shall indicate what lands so reserved, if
any, may, in accordance with the determination of the preceding
paragraph, be declared open to location, entry, or selection, subject to
the reservation of said section 24. Second Annual Report, page 128.
Note 2: On February 16, 1937, the Commission took the following
action:
Upon request under date of November 2, 1936, by the acting director,
Division of Grazing, Department of the Interior, for consent of the
Commission, pursuant to the act of June 28, 1934 (48 Stat. 1269), to
the establishment of grazing districts and the issuance of grazing
permits on lands of the United States withdrawn, classified, or
otherwise reserved for power purposes, except in those instances where
grazing will interfere with such purposes; and
Upon request under date of December 7, 1936, by the Acting Secretary
of the Interior for consent of the Commission, pursuant to the Act of
June 28, 1934 (48 Stat. 1269), as amended by the Act of June 26, 1936
(49 Stat. 1976), to the leasing under section 15 of said Act as amended,
of isolated tracts of lands of the United States, withdrawn for power
purposes:
The Commission upon consideration of the matter finds and determines:
That the establishment of grazing districts, the issuance of grazing
permits, and the leasing for grazing purposes, under said Act as
amended, of lands of the United States theretofore or thereafter
withdrawn, classified or otherwise reserved for power purposes, but not
including lands embraced within the project area of any power project
theretofore licensed by the Commission or otherwise authorized by the
United States, will not injure or destroy the value of such lands for
the purposes of power development nor otherwise abridge the jurisdiction
of the Commission; Provided, That such grazing districts shall be
established and such permits and leases for grazing permits issued
subject to the following conditions:
(1) That the establishment of the grazing district or the issuance of
the grazing permit or lease for grazing purposes shall in no wise
diminish or affect the jurisdiction of the Commission at any time to
issue permits or licenses pursuant to the provisions of the Federal
Power Act (49 Stat. 838; 16 U.S.C., Sup., 791-819); and that the
issuance by the Commission of a license shall immediately and
automatically terminate such grazing district, permit, or lease for
grazing purposes as to all lands within the project area described in
such license;
(2) That the establishment of the grazing district or the issuance of
the grazing permit or lease for grazing purposes involving lands
withdrawn for power purposes shall in no wise disminish or affect the
jurisdiction of the Commission at any time to make further
determinations that the value of any such lands for the purposes of
power development will not be injured or destroyed by location entry or
selection, as provided by section 24 of the Act and none of such lands
shall be declared open, otherwise than as hereinbefore provided, to
location, entry or selection except upon such further determination by
the Commission; and any such further determination shall immediately
and automatically terminate such grazing district, permit, or lease for
grazing purposes as to any lands involved in such further determination.
Now, therefore, the Commission consents to the estabishment of such
grazing districts and the issuance of grazing permits and leases for
grazing purposes of lands of the United States reserved for power
purposes subject to the conditions hereinabove set out;
Provided, however, That this determination and consent shall be
effective for lands embraced within grazing districts, as of the date of
the establishment of such districts, and for isolated tracts of lands
leased for grazing purposes, it shall be in effect when such leases are
issued, provided that notice thereof is received by this Commission from
the Bureau of Land Management, Department of the Interior, within 30
days thereafter, such notice to include full legal description of the
lands, withdrawn for power purposes which are involved.
(Secs. 24, 308, 39, 41 Stat. 1075, as amended, 40 Stat. 858; 16
U.S.C. 818, 825g, 825h)
(Order 141, 12 FR 8493, Dec. 19, 1947)
Cross Reference: For regulations of the Bureau of Land Management,
relating to grazing, see the Index to title 43 CFR part 4000-End.
(Order 141, 12 FR 8493, Dec. 19, 1947, as amended by Order 225, 47 FR
19056, May 3, 1982)
18 CFR 25.2 PART 32 -- INTERCONNECTION OF FACILITIES
Sec.
32.1 Contents of application; filing fee.
32.2 Required exhibits.
32.3 Other information.
32.4 Form and style; number of copies.
Authority: Department of Energy Organization Act, 42 U.S.C.
7101-7352 (1982); E.O. No. 12,009, 3 CFR 1978 Comp., p. 142;
Independent Offices Appropriations Act, 31 U.S.C. 9701 (1982); Federal
Power Act, 16 U.S.C. 791a-825r (1988); Public Utility Regulatory
Policies Act, 16 U.S.C. 2601-2645 (1988).
Source: Order 141, 12 FR 8494, Dec. 19, 1947, unless otherwise
noted.
18 CFR 25.2 Application for an Order Directing the Establishment of Physical Connection of Facilities
18 CFR 32.1 Contents of application; filing fee.
Every application under section 202(b) of the Act shall be
accompanied by the fee prescribed in part 381 of this chapter and shall
set forth the following information:
(a) The exact legal name of the applicant and of all persons named as
parties in the application.
(b) The name, title, and post office address of the person to whom
correspondence in regard to the application shall be addressed.
(c) The person named in the application who is a public utility
subject to the act.
(d) The State or States in which each electric utility named in the
application operates, together with a brief description of the business
of and territory, by counties and States, served by such utility.
(e) Description of the proposed interconnection, showing proposed
location, capacity and type of construction.
(f) Reasons why the proposed connection, of facilities will be in the
public interest.
(g) What steps, if any, have been taken to secure voluntary
interconnection under the provisions of section 202(a) of the Act.
(Order 141, 12 FR 8494, Dec. 19, 1947, as amended by Order 427, 36 FR
5596, Mar. 25, 1971; Order 435, 50 FR 40357, Oct. 3, 1985)
18 CFR 32.2 Required exhibits.
There shall be filed with the application and as a part thereof the
following exhibits:
Exhibit A. Statement of the estimated capital cost of all facilities
required to establish the connection, and the estimated annual cost of
operating such facilities.
Exhibit B. A general or key map on a scale not greater than 20 miles
to the inch showing, in separate colors, the territory served by each
utility, and the location of the facilities used for the generation and
transmission of electric energy, indicating on said map the points
between which connection may be established most economically.
18 CFR 32.3 Other information.
The Commission may require additional information when it appears to
be pertinent in a particular case.
18 CFR 32.4 Form and style; number of copies.
An original and six conformed copies of an application under 32.1
to 32.4 must be filed.
(Order 342, 32 FR 6622, Apr. 29, 1967, as amended by Order 225, 47 FR
19056, May 3, 1982)
18 CFR 32.4 PART 33 -- APPLICATION FOR SALE, LEASE, OR OTHER
DISPOSITION, MERGER OR CONSOLIDATION OF FACILITIES, OR FOR PURCHASE OR
ACQUISITION OF SECURITIES OF A PUBLIC UTILITY
Sec.
33.1 Applicability.
33.2 Contents of application; filing fee.
33.3 Required exhibits.
33.4 Additional information.
33.5 (Reserved)
33.6 Number of copies.
33.7 Verification.
33.8 Reports.
33.9 Public notice.
33.10 Commission action.
Authority: 16 U.S.C. 791a-825r, 2601-2645; 31 U.S.C. 9701; 42
U.S.C. 7101-7352.
Source: Order 141, 12 FR 8495, Dec. 19, 1947, unless otherwise
noted.
Cross References: For rules of practice and procedure, see part 385
of this title. For forms under rules of practice and regulations,
Federal Power Act, see part 131 of this chapter.
18 CFR 33.1 Applicability.
(a) The requirements of this part will apply to public utilities
seeking authority under section 203 of the Federal Power Act. This
authority extends to --
(1) The disposition by sale, lease or otherwise by a public utility
of the whole of its electric facilities subject to Commission
jurisdiction or any part thereof of a value in excess of $50,000.
(2) The merger or consolidation, directly or indirectly of the
facilities subject to the Commission's jurisdiction with those of any
other person having a value in excess of $50,000. This includes the
acquisition by a public utility of electric facilities used for the
transmission or sale at wholesale of electric energy in interstate
commerce which, except for ownership, would be subject to Commission's
jurisdiction.
(3) The purchase, acquisition or taking by a public utility of any
security of any other public utility.
(b) Value in excess of $50,000 as used in section 203 of the Federal
Power Act (16 U.S.C. 824b) shall be the original cost undepreciated as
defined in the Commission's uniform system of accounts prescribed for
public utilities and licensees.
(Order 397, 35 FR 5321, Mar. 31, 1970)
18 CFR 33.2 Contents of application; filing fee.
Each such applicant shall set forth in its application to the
Commission, which shall be accompanied by the fee prescribed in part 381
of this chapter, in the manner and form and in the order indicated, the
following information which should insofar as possible, be furnished as
to said applicant and each company whose facilities or securities are
involved:
(a) The exact name and the address of the principal business office.
(b) Name and address of the person authorized to receive notices and
communications in respect to application.
(c) Designation of the territories served, by counties and States.
(d) A general statement briefly describing the facilities owned or
operated for transmission of electric energy in interstate commerce or
the sale of electric energy at wholesale in interstate commerce.
(e) Whether the application is for disposition of facilities by sale,
lease, or otherwise, a merger or consolidation of facilities, or for
purchase or acquisition of securities of a public utility, also a
description of the consideration, if any, and the method of arriving at
the amount thereof.
(f) A statement of facilities to be disposed of, consolidated, or
merged, giving a description of their present use and of their proposed
use after disposition, consolidation, or merger. State whether the
proposed disposition of facilities or plan for consolidation or merger
includes all the operating facilities of the parties to the transaction.
(g) A statement (in the form prescribed by the Commission's Uniform
System of Accounts for Public Utilities and Licensees) of the cost of
the facilities involved in the sale, lease, or other disposition or
merger or consolidation. If original cost is not known, an estimate of
original cost based, insofar as possible, upon records or data of the
applicant or its predecessors must be furnished, together with a full
explanation of the manner in which such estimate has been made, and a
description and statement of the present custody of all existing
pertinent data and records.
(h) A statement as to the effect of the proposed transaction upon any
contract for the purchase, sale, or interchange of electric energy.
(i) A statement as to whether or not any application with respect to
the transaction or any part thereof is required to be filed with any
other Federal or State regulatory body.
(j) The facts relied upon by applicants to show that the proposed
disposition, merger, or consolidation of facilities or acquisition of
securities will be consistent with the public interest.
(k) A brief statement of franchises held, showing date of expiration
if not perpetual.
(l) A form of notice suitable for publication in the Federal
Register, which will briefly summarize the facts contained in the
application in such way as to acquaint the public with its scope and
purpose.
(Secs. 3, 4, 15, 16, 301, 304, 308, and 309; 41 Stat. 1063-1066,
1068, 1072, 1075; 49 Stat. 838, 839, 840, 841, 854-856, 858-859; 82
Stat. 617 (16 U.S.C. 796, 797, 803, 808, 809, 816, 825, 825b, 825c,
825g, 825h, 826i); Natural Gas Act, as amended, particularly secs. 8,
10, and 16; 52 Stat. 825-826, 830 (15 U.S.C. 717g, 717i, 717o))
(Order 141, 12 FR 8495, Dec. 19, 1947, as amended by Order 149, 14 FR
4496, July 19, 1949; 14 FR 4668, July 27, 1949; Order 379, 34 FR 813,
Jan. 18, 1969; Order 427, 36 FR 5597, Mar. 25, 1971; Order 567, 42 FR
30613, June 16, 1977; Order 435, 50 FR 40357, Oct. 3, 1985; Order 545,
57 FR 53990, Nov. 16, 1992)
18 CFR 33.3 Required exhibits.
There shall be filed with the application as part thereof one
certified copy and five uncertified copies of exhibit A and one
certified copy and five uncertified copies plus one for each State
affected of exhibits B, C, D, E, F, G, H and I, described as follows:
Exhibit A. Copies of all resolutions of directors authorizing the
proposed disposition, merger, or consolidation of facilities, or
acquisition of securities, in respect to which the application is made,
and, if approval of stockholders has been obtained, copies of the
resolutions of the stockholders should also be furnished.
Exhibit B. A statement of the measure of control or ownership
exercised by or over each party to the transaction as to any public
utility, or bank, trust company, banking association, or firm that is
authorized by law to underwrite or participate in the marketing of
securities of a public utility, or any company supplying electric
equipment to such party. Where there are any intercorporate
relationships through holding companies, ownership of securities or
otherwise, the nature and extent of such relationship; also state
whether any of the parties to the transaction have officers or directors
in common. If not a member of any holding company system, include a
statement to that effect.
Exhibit C. Balance sheets and supporting plant schedules for the
most recent 12 month period only, on an actual basis and on a pro forma
basis in the form prescribed for Statement A and B of the FPC Annual
Report Form No. 1, prescribed by 141.1 of this chapter. The
adjustments necessary to arrive at the pro forma statements should be
clearly identified.
Exhibit D. A statement of all known contingent liabilities except
minor items such as damage claims and similar items involving relatively
small amounts, as of the date of the application.
Exhibit E. Income statement for the most recent 12 month period
only, on an actual basis and on a pro forma basis in the form prescribed
for Statement C of the FPC Annual Report Form No. 1 prescribed by
141.1 of this Chapter. The adjustments necessary to arrive at the pro
forma statements should be clearly identified.
Exhibit F. An analysis of retained earnings for the period covered
by the income statements referred to in exhibit I.
Exhibit G. A copy of each application and exhibit filed with any
other Federal or State regulatory body in connection with the proposed
transaction, and if action has been taken thereon, a certified copy of
each order relating thereto.
Exhibit H. A copy of all contracts in respect to the sale, lease, or
other proposed disposition, merger or consolidation of facilities, or
purchase of securities, as the case may be, together with copies of all
other written instruments entered into or proposed to be entered into by
the parties to the transaction pertaining thereto.
Exhibit I. A general or key map on a scale of not more than 20 miles
to the inch showing in separate colors the properties of each party to
the transaction, and distinguishing such parts of them as are included
in the proposed disposition, consolidation or merger. The map should
also clearly indicate all interconnections and the principal cities of
the area served. Whenever possible, the map should not be over 30
inches in its largest dimension.
(Secs. 3, 4, 15, 16, 301, 304, 308, and 309; 41 Stat. 1063-1066,
1068, 1072, 1075; 49 Stat. 838, 839, 840, 841, 854-856, 858-859; 82
Stat. 617 (16 U.S.C. 796, 797, 803, 808, 809, 816, 825, 825b, 825c,
825g, 825h, 826i) and of the Natural Gas Act, as amended, particularly
secs. 8, 10, and 16; 52 Stat. 825-826, 830 (15 U.S.C. 717g, 717i,
717o))
(Order No. 141, 12 FR 8495, Dec. 19, 1947, as amended by Order 567,
42 FR 30613, June 16, 1977; Order 545, 57 FR 53990, Nov. 16, 1992)
18 CFR 33.4 Additional information.
The Commission may require additional information when it appears to
be pertinent in a particular case.
33.5 (Reserved)
18 CFR 33.6 Number of copies.
An original and five copies, plus one copy for each State affected,
of applications under this part shall be submitted.
18 CFR 33.7 Verification.
The original application shall be signed by a person or persons
having authority with respect thereto and having knowledge of the
matters therein set forth, and shall be verified under oath.
18 CFR 33.8 Reports.
Upon the granting of any application under this part by the
Commission, applicants shall report to the Commission under oath within
10 days after any sale, lease, or other disposition of facilities,
merger or consolidation of facilities, or purchase or acquisition of
securities of a public utility, the fact of such sale, lease, or other
disposition of facilities, merger or consolidation of facilities, or
purchase or acquisition of securities, and the terms and conditions
thereof.
18 CFR 33.9 Public notice.
The Commission may require the applicant to give such local notice by
publication as the Commission in its discretion may deem proper.
18 CFR 33.10 Commission action.
Application under this part will ordinarily require 45 days after the
date of filing before final action can be taken thereon by the
Commission, to allow for such preliminary study, investigation, public
notice, opportunity for hearing, and consideration by the Commission, as
may be appropriate in the premises.
18 CFR 33.10 PART 34 -- APPLICATION FOR AUTHORIZATION OF THE ISSUANCE
OF SECURITIES OR THE ASSUMPTION OF LIABILITIES
Sec.
34.1 Applicability; definitions; exemptions in case of certain
State regulation, certain short-term issuances and certain qualifying
facilities.
34.2 Competitive bidding requirements; negotiated placements;
exemptions.
34.3 Contents of application for competitive bids or negotiated
placements.
34.4 Required exhibits.
34.5 Additional information.
34.6 Form and style.
34.7 Number of copies to be filed.
34.8 Verification.
34.9 Filing fee.
34.10 Reports.
Authority: Department of Energy Organization Act, 42 U.S.C.
7101-7352 (1982); Exec. Order No. 12,009, 3 CFR 142 (1978);
Independent Offices Appropriations Act, 31 U.S.C. 9701 (1982); Federal
Power Act, 16 U.S.C. 791a-825r (1982); Public Utility Regulatory
Policies Act, 16 U.S.C. 2601-2645 (1982).
Source: Order 182, 46 FR 50514, Oct. 14, 1981, unless otherwise
noted.
Cross References: For rules of practice and procedure, see part 385
of this chapter. For Approved Forms, Federal Power Act, see part 131 of
this chapter.
OMB Reference: ''FERC Filing No. 523'' is the identification number
used by the Commission and the Office of Management and Budget to
reference the filing requirements in part 34.
18 CFR 34.1 Applicability; definitions; exemptions in case of certain
State regulation, certain short-term issuances and certain qualifying
facilities.
(a) Applicability. This part applies to applications for
authorization from the Commission to issue securities or assume an
obligation or liability which are filed by:
(1) Licensees and other entities pursuant to sections 19 and 20 of
the Federal Power Act (41 Stat. 1073, 16 U.S.C. 812, 813) and part 20 of
the Commission's regulations; and
(2) Public utilities pursuant to section 204 of the Federal Power Act
(49 Stat. 850, 16 U.S.C. 824c).
(b) Definitions. For the purpose of this part:
(1) The term utility means a licensee, public utility or other entity
seeking authorization under sections 19, 20 or 204 of the Federal Power
Act;
(2) The term securities includes any note, stock, treasury stock,
bond, or debenture or other evidence of interest in or indebtedness of a
utility;
(3) The term issuance or placement of securities means issuance or
placement of securities, or assumption of obligation or liability; and
(4) The term State means a State admitted to the Union, the District
of Columbia, and any organized Territory of the United States.
(c) Exemptions -- (1) If State regulates securities prior to
issuance. A utility whose security issuances are regulated by a State
agency, in a State in which it is organized and operating shall be
exempted from the provisions of sections 19, 20 and 204 of the Federal
Power Act, and from the provisions of this part: Provided, however,
That the State agency is required to exercise its regulatory authority
with respect to the issuance of such securities prior to issuance, and
that the utility must obtain written authorization or approval from the
State agency prior to the issuance of such securities.
(2) For short-term notes or drafts. Pursuant to section 204(e) of
the Federal Power Act, the issuance, renewal, or assumption of liability
on a note or draft:
(i) Maturing not more than one year after the date of such issuance,
renewal, or assumption of liability, and
(ii) Aggregating (together with all other then outstanding notes and
drafts of a maturity of one year or less on which such utility is
primarily or secondarily liable) not more than 5 per cent of the total
of the other securities of the utility then outstanding, including:
(A) In the case of securities having a par value, such par value, and
(B) In the case of securities having no par value, the fair market
value of such securities as of the date of issuance, renewal or
assumption of such note or draft, is exempt from Commission regulation
pursuant to this part: Provided, however, That within 10 days after any
such issuance, renewal, or assumption of liability, the utility shall
file with the Commission a certificate of notification, in the form set
forth in 131.50 of this chapter.
(3) For certain qualifying facilities. Any cogeneration or small
power production facility which is exempt from sections 19, 20 and 204
of the Federal Power Act pursuant to 292.601 of this chapter shall be
exempt from the provisions of this part.
(Order 182, 46 FR 50514, Oct. 14, 1981, as amended at 48 FR 9851,
Mar. 9, 1983)
18 CFR 34.2 Competitive bidding requirements; negotiated placements;
exemptions.
(a) Competitive bids -- (1) General requirement for competitive
bidding; exemptions. Every issuance by a utility of a security subject
to sections 19, 20 or 204 of the Federal Power Act shall be made only
after public invitation for and acceptance of competitive bids for such
securities in accordance with the requirements of this part, except
when:
(i) The securities are to be issued to holders of existing securities
on a pro-rata basis;
(ii) The securities are to be issued to a commercial bank, insurance
company or similar institution and are not for resale to the public:
Provided, however, That no fee or commission is paid to any third party
for negotiating the transaction (except an associated service company
charging only its costs of service);
(iii) The securities to be issued have a maturity of one year or
less; or
(iv) The issuance of the securities, if not otherwise exempt from the
competitive bidding requirements under paragraph (a)(1)(i), (ii), or
(iii) of this section, is nevertheless exempted by the Commission
pursuant to a utility's request, under paragraph (b)(2) of this section,
for authority to negotiate for placement of securities, in lieu of
seeking competitive bids:
Provided, however, That the Commission may deny any such exemption
from competitive bidding upon a finding that a non-competitive placement
is not consistent with the public interest.
(2) Competitive bid application and Commission action thereon. A
utility which proposes to issue securities subject to this part
according to competitive bidding procedures shall file an application
with the Commission under this part for authority to make such
issuances. Upon the receipt of authorization, the utility may invite
bids and issue the securities: Provided, however, That:
(i) The proposed bids as may be received in response to the public
invitation shall not be opened at any time or place other than as
specified in the invitation;
(ii) The duly authorized representative of any person making any such
proposed bid shall be entitled to be present at the opening of the
proposed bids and may examine each proposed bid submitted;
(iii) The invitation shall refer to the prohibitions set forth in
paragraph (c) of this section;
(iv) At least two of the bids received shall meet the conditions set
forth in the invitation for bids; and
(v)(A) The bid which is accepted shall provide the utility with the
greatest overall proceeds, or be the least costly of the proposals
obtained, or
(B) If the utility intends to accept a bid other than that described
in paragraph (a)(2)(v)(A) of this section, the utility shall before
accepting the bid:
(1) File with the Commission further justification as the Commission
may require, in support of the utility's intention to accept the other
bid, and
(2) Obtain Commission approval to accept the other bid.
(b) Negotiated placements -- (1) Negotiated placement application
pursuant to paragraph (a)(1)(i), (ii) or (iii), and Commission action
thereon. Any utility which is exempt from the competitive bidding
requirements under paragraph (a)(1)(i), (ii) or (iii) of this section
shall submit an application for negotiated placement of securities
pursuant to 34.3. Upon the Commission's authorization to such utility
for negotiated placement of the securities, the utility may make the
placement.
(2) Negotiated placement application pursuant to paragraph
(a)(1)(iv), and Commission action thereon. (i) A utility which requests
authority to issue securities by negotiation pursuant to paragraph
(a)(1)(iv) shall:
(A) File for and obtain an exemption from the Commission's
competitive bidding requirements prescribed in paragraph (a) of this
section;
(B) Upon receipt of the exemption, shall negotiate with, and obtain
proposals with regard to placement of the securities from at least three
prospective dealers, purchasers or underwriters, unless otherwise
authorized by the Commission, and each such dealer, purchaser or
underwriter shall be notified of the prohibitions set forth in paragraph
(c) of this section; and
(C) File an application for authority to issue the securities,
pursuant to 34.3.
(ii) Upon the Commission's authorization to a utility to issue the
securities, such utility may make the issuances.
(c) Prohibitions respecting competitive bids or negotiated
placements. No bid for the placement of any securities shall be invited
or accepted from, nor shall negotiations occur with, any person who:
(1) Prior to the submission of bids, or beginning of negotiations,
has performed any service for any fee or compensation in connection with
the proposed issuance of securities; or
(2) Violates section 305(a) of the Federal Power Act with respect to
the bid, invitation, or negotiation.
18 CFR 34.3 Contents of application for competitive bids or negotiated
placements.
Each application to the Commission for authority to issue securities
shall contain the information specified in this section. In lieu of
filing the information required in paragraphs (e), (k) and (l) of this
section, a specific reference may be made to the portion of the
registration statement filed under 34.4(f) of this chapter which
includes the information required in these paragraphs.
(a) The official name of the applicant and address of its principal
business office.
(b) The State in which the utility is incorporated, the date of
incorporation, and each State in which it operates.
(c) The name, address and telephone number of a person within the
utility authorized to receive notices and communications with respect to
the application.
(d) The date by which Commission action is requested.
(e) A full description of the securities proposed to be issued,
including:
(1) Type and nature of securities;
(2) Amount of securities (par or stated value and number of units);
(3) Interest or dividend rate, if any;
(4) Dates of issuance and maturity;
(5) Institutional rating of the securities -- or if the securities
are not rated, an explanation as to why they are not rated, and if the
securities will be rated, an estimate of the rating;
(6) Any stock exchange on which the securities will be listed; and
(7) Information in support of an exemption from competitive bidding
requirements pursuant to 34.2(a)(1) (i), (ii) or (iii).
(f) A description as to how such securities are to be issued and sold
or the procedure by which the applicant will assume any obligation or
liability as guarantor, endorser, surety, or otherwise.
(g)(1)(i) The name and address of any person receiving or entitled to
receive a fee for services (other than persons who render technical
services, such as attorneys, or accountants) related to the negotiation,
issuance or sale of securities; or, receiving or entitled to receive a
fee for services in securing underwriters, sellers, or purchasers of
securities, except as related to any competitive bid;
(ii) The amount of each such fee;
(iii) The facts showing that the services are necessary, and that the
fee is reasonable for rendering services in an arm's length transaction;
and
(iv) Any other relevant factors concerning fees or services that the
utility wished to provide.
(2) All facts showing or tending to show that the applicant directly
or indirectly controls, is controlled by, or is under the same common
control as any person named pursuant to the requirements of paragraph
(g)(1)(i) of this section; or facts showing or tending to show the
contrary. For purposes of this clause, control has the same meaning as
Control in Item 5.B. of the Definitions at 18 CFR part 101 Uniform
System of Accounts Prescribed for Public Utilities and Licensees Subject
to the Provisions of the Federal Power Act.
(h) The purpose for which the securities for which application is
made are to be issued:
(1) If the purpose of such issuance is the construction, completion,
extension, or improvement of facilities, describe in reasonable detail
the construction program for which the funds were or are to be used.
(2) If the purpose for such issuance is for the refunding of
obligations, describe in detail the obligations to be refunded,
including the character, principal amounts, applicable discount or
premium, dates of issuance and maturity, and all other material facts
concerning such obligations.
(3) If the purpose for such issuance is for other than construction
or refunding, explain such other purpose(s) in detail.
(i) A statement as to whether or not any application with respect to
the transaction or any part thereof is required to be filed with any
State regulatory body.
(j) A detailed statement of the facts relied upon by the applicant to
show that the issuance:
(1) Is for some lawful object, within the corporate purposes of the
applicant and compatible with the public interest, is necessary or
appropriate for or consistent with the proper performances by the
applicant of service as a public utility and will not impair its ability
to perform that service, and
(2) Is reasonably necessary or appropriate for such purposes.
(k) A detailed statement of the bond indenture(s) or other
limitations on interest and dividend coverage, and the effects of such
limitations on the issuance of additional debt or equity securities.
(l) A brief summary of any rate changes which were made effective
during the period for which financial statements are submitted or which
became or will become effective after the period for which statements
are submitted.
(m) A form of notice suitable for publication in the Federal
Register, setting forth: (1) The legal name of the applicant, (2) the
securities offered for issuance including the proposed issue date, and
(3) the comment procedure.
(n) Any applicable exhibits as required under 34.4.
(Order 182, 46 FR 50514, Oct. 14, 1981, as amended by Order 390, 49
FR 32505, Aug. 14, 1984)
18 CFR 34.4 Required exhibits.
(a) Exhibit A. A copy of the applicant's charter or articles of
incorporation with amendments to date of filing the application; and a
copy of the by-laws with amendments to date: Provided, however, That if
the documents required in this exhibit have been filed with the
Commission no more than 5 years prior to the current application, a
specific reference to, and the date of such previous filings, will be
accepted in lieu of separate filings.
(b) Exhibit B. A copy of all resolutions of the applicant's
directors authorizing the issuance of securities for which the
application is made; and copies of the resolution of the stockholders
approving such issuance if approval of the stockholders has been
obtained.
(c) Exhibit C. A statement of the measure of control or ownership
exercised by or over the applicant as to any utility, bank, trust
company, banking association, firm that is authorized by law to
underwrite or participate in the marketing of securities of a utility,
or any company supplying electric equipment to such applicant. If any
intercorporate relationships exist among any such entities through
holding companies, ownership of securities, or otherwise, a statement is
required concerning the ownership of securities or the nature and extent
of such relationship. If the applicant is not a member of any holding
company system, a statement to that effect is required.
(d) Exhibit D. The balance sheet and attached notes for the most
recent 12 month period, on both an actual basis and pro forma basis in
the form prescribed for Statement A, ''Comparative Balance Sheet'' of
Form No. 1, ''Annual Report for Major Electric Utilities, Licensees and
Others'' (see 18 CFR 141.1). Each adjustment made in determining the pro
forma basis shall be clearly identified.
(e) Exhibit E. The income statement, with attached notes, for the
most recent 12 month period, on both an actual basis and a pro forma
basis in the form prescribed for Statement C (''Statement of Income for
the Year'') of Form No. 1. Each adjustment made in determining the pro
forma basis shall be clearly identified.
(f) Exhibit F. A copy of registration statement and exhibits which
are filed with the Securities and Exchange Commission for the proposed
security issuance.
(g) Exhibit G. A copy of the public invitation(s) for proposals to
purchase or underwrite the securities offered for issuance.
(h) Exhibit H. (1) A copy of each proposal received by the applicant
for a negotiated placement of the securities offered for issuance, and a
summary tabulation of all proposals. If actual data concerning such
proposals are not available, estimated data may be substituted, if they
are identified as estimates. The summary shall include the following
information, identified by prospective dealer, purchaser or underwriter:
(i) Par or stated value of the securities.
(ii) Number of units (shares of stock, number of bonds) to be issued.
(iii) Total dollar amount of the issue.
(iv) Life of the securities, including maximum life and average life
for a sinking fund issue.
(v) Dividend or interest rate.
(vi) Call provisions.
(vii) Sinking fund provisions.
(viii) Offering price to public or to other purchaser(s).
(ix) Discount or premium.
(x) Commission or underwriting spread.
(xi) Net proceeds to company for each unit of security and for the
total issue.
(xii) Net cost to the company for securities with a stated interest
or divident rate.
(xiii) Other pertinent data.
(2) A list identifying any person with whom negotiations took place
but from whom no proposal was received.
(3) A justification in support of the utility's intention to accept a
particular offer.
(Order 182, 46 FR 50514, Oct. 14, 1981, as amended by Order 390, 49
FR 32505, Aug. 14, 1984)
18 CFR 34.5 Additional information.
The Commission may, in its discretion, require the filing of
additional information which appears necessary to reach a determination
on any particular application.
18 CFR 34.6 Form and style.
Each application pursuant to this part 34 shall conform to the
requirements of subpart T of part 385 of this chapter.
(Order 182, 46 FR 50514, Oct. 14, 1981, as amended by Order 225, 47
FR 19056, May 3, 1982)
18 CFR 34.7 Number of copies to be filed.
Each applicant shall submit to this Commission an original and four
copies of each application pursuant to this part 34.
18 CFR 34.8 Verification.
The original application shall be signed by an authorized
representative of the applicant, who has knowledge of the matters set
forth therein, and it shall be verified under oath.
18 CFR 34.9 Filing fee.
Each application shall be accompanied by a fee as prescribed in part
381 of this chapter.
(Order 182, 46 FR 50514, Oct. 14, 1981, by Order 435, amended at 50
FR 40357, Oct. 3, 1985)
18 CFR 34.10 Reports.
The applicant shall file a report pursuant to 18 CFR 131.43 no later
than 180 days after the sale or placement of equity or long-term debt
securities, or entry into other contractual obligations pursuant to
authority granted under this part. This requirement does not apply to
debt having a maturity of one year or less.
18 CFR 34.10 PART 35 -- FILING OF RATE SCHEDULES
18 CFR 34.10 Subpart A -- Application
Sec.
35.0 Filing fees.
35.1 Application; obligation to file rate schedules.
35.2 Definitions.
35.3 Notice requirements.
35.4 Permission to become effective is not approval.
35.5 Rejection of material submitted for filing.
35.6 Submission for staff suggestions.
35.7 Number of copies to be supplied.
35.8 Comments by interested parties.
35.9 Identification and numbering of rate schedules.
35.10 Form and style of rate schedules.
35.11 Waiver of notice requirement.
18 CFR 34.10 Subpart B -- Documents To Be Submitted With a Filing
35.12 Filing of initial rate schedules.
35.13 Filing of changes in rate schedules.
18 CFR 34.10 Subpart C -- Other Filing Requirements
35.14 Fuel cost and purchased economic power adjustment clauses.
35.15 Notices of cancellation or termination.
35.16 Notice of succession.
35.17 Changes relating to suspended rate schedules or parts thereof.
35.18 Rates established by order of the Commission.
35.19 Submission of information by reference.
35.19a Refund requirements under suspension orders.
35.21 Applicability to licensees and others subject to section 19 or
20 of the Federal Power Act.
35.22 Limits for percentage adders in rates for transmission
services; revision of rate schedules.
35.23 (Reserved)
35.24 Tax normalization for public utilities.
35.25 Construction work in progress.
18 CFR 34.10 Subpart D -- Procedures and Requirements for Public
Utility Sales of Power to Bonneville Power Administration Under
Northwest Power Act
35.30 General provisions.
35.31 Commission review.
Authority: 16 U.S.C. 791a-825r, 2601-2645; 31 U.S.C. 9701; 42
U.S.C. 7101-7352.
Source: Order 271, 28 FR 10573, Oct. 2, 1963, unless otherwise
noted.
18 CFR 34.10 Subpart A -- Application
18 CFR 35.0 Filing fees.
Every filing made under this part shall be accompanied by the fee
described in part 381 of this chapter.
(Order 427, 36 FR 5597, Mar. 25, 1971, as amended by Order 435, 50 FR
40357, Oct. 3, 1985)
18 CFR 35.1 Application; obligation to file rate schedules.
(a) Every public utility shall file with the Commission and post, in
conformity with the requirements of this part, full and complete rate
schedules, as defined in 35.2(b), clearly and specifically setting
forth all rates and charges for any transmission or sale of electric
energy subject to the jurisdiction of this Commission, the
classifications, practices, rules and regulations affecting such rates
and charges and all contracts which in any manner affect or relate to
such rates, charges, classifications, services, rules, regulations or
practices, as required by section 205(c) of the Federal Power Act (49
Stat. 851; 16 U.S.C. 824d(c)). Where two or more public utilities are
parties to the same rate schedule, each public utility transmitting or
selling electric energy subject to the jurisdiction of this Commission
shall post and file such rate schedule, or the rate schedule may be
filed by one such public utility and all other parties having an
obligation to file may post and file a certificate of concurrence on the
form indicated in 131.52 of this chapter: Provided, however, In cases
where two or more public utilities are required to file rate schedules
or certificates of concurrence such public utilities may authorize a
designated representative to file upon behalf of all parties if upon
written request such parties have been granted Commission authorization
therefor.
(b) A rate schedule applicable to a transmission or sale of electric
energy, other than that which proposes to supersede, supplement, cancel
or otherwise change the provisions of a rate schedule required to be on
file with this Commission, shall be filed as an initial rate in
accordance with 35.12.
(c) A rate schedule applicable to a transmission or sale of electric
energy which proposes to supersede, supplement, cancel or otherwise
change any of the provisions of a rate schedule required to be on file
with this Commission (such as providing for other or additional rates,
charges, classifications or services, or rules, regulations, practices
or contracts for a particular customer or customers) shall be filed as a
change in rate in accordance with 35.13, except Notices of Cancellation
or Termination which shall be filed as a change in accordance with
35.15.
(d)(1) The provisions of this paragraph (d) shall apply to rate
schedules tendered for filing on or after August 1, 1976, which are
applicable to the transmission or sale of firm power for resale to an
all-requirements customer, whether tendered pursuant to 35.12 as an
initial rate schedule or tendered pursuant to 35.13 as a change in an
existing rate schedule whose term has expired or whose term is to be
extended.
(2) Rate schedules covered by the terms of paragraph (d)(1) of this
section shall contain the following provision when it is the intent of
the contracting parties to give the party furnishing service the
unrestricted right to file unilateral rate changes under section 205 of
the Federal Power Act:
Nothing contained herein shall be construed as affecting in any way
the right of the party furnishing service under this rate schedule to
unilaterally make application to the Federal Energy Regulatory
Commission for a change in rates under section 205 of the Federal Power
Act and pursuant to the Commission's Rules and Regulations promulgated
thereunder.
(3) Rate schedules covered by the terms of paragraph (d)(1) of this
section shall contain the following provision when it is the intent of
the contracting parties to withhold from the party furnishing service
the right to file any unilateral rate changes under section 205 of the
Federal Power Act:
The rates for service specified herein shall remain in effect for the
term of ---------- or until ---------- , and shall not be subject to
change through application to the Federal Energy Regulatory Commission
pursuant to the provisions of Section 205 of the Federal Power Act
absent the agreement of all parties thereto.
(4) Rate schedules covered by the terms of paragraph (d)(1) of this
section, but which are not covered by paragraphs (d)(2) or (d)(3) of
this section, are not required to contain either of the boilerplate
provisions set forth in paragraph (d)(2) or (d)(3) of this section.
(e) No public utility shall, directly or indirectly, demand, charge,
collect or receive any rate, charge or compensation for or in connection
with electric service subject to the jurisdiction of the Commission, or
impose any classification, practice, rule, regulation or contract with
respect thereto, which is different from that provided in a rate
schedule required to be on file with this Commission unless otherwise
specifically provided by order of the Commission for good cause shown.
(f) A rate schedule applicable to the sale of electric power by a
public utility to the Bonneville Power Administration under section 5(c)
of the Pacific Northwest Electric Power Planning and Conservation Act
(Pub. L. No. 96-501 (1980)) shall be filed in accordance with subpart D
of this part.
(Order 271, 28 FR 10573, Oct. 2, 1963, as amended by Order 541, 40 FR
56425, Dec. 3, 1975; Order 541-A, 41 FR 27831, July 7, 1976; 46 FR
50520, Oct. 14, 1981; Order 337, 48 FR 46976, Oct. 17, 1983; Order
541, 57 FR 21734, May 22, 1992)
18 CFR 35.2 Definitions.
(a) Electric service. The term electric service as used herein shall
mean the transmission of electric energy in interstate commerce or the
sale of electric energy at wholesale for resale in interstate commerce,
and may be comprised of various classes of capacity and energy sales
and/or transmission services. Electric service shall include the
utilization of facilities owned or operated by any public utility to
effect any of the foregoing sales or services whether by leasing or
other arrangements. As defined herein, electric service is without
regard to the form of payment or compensation for the sales or services
rendered whether by purchase and sale, interchange, exchange, wheeling
charge, facilities charge, rental or otherwise.
(b) Rate schedule. The term rate schedule as used herein shall mean
a statement of (1) electric service as defined in paragraph (a) of this
section, (2) rates and charges for or in connection with that service,
and (3) all classifications, practices, rules, regulations or contracts
which in any manner affect or relate to the aforementioned service,
rates, and charges. This statement shall be in writing and may take the
physical form of a contractual document, purchase or sale agreement,
lease of facilities, tariff1033 or other writing. Any oral agreement or
understanding forming a part of such statement shall be reduced to
writing and made a part thereof.
(c) Filing date. The term filing date as used herein shall mean the
date on which a rate schedule filing is completed by the receipt in the
office of the Secretary of all supporting cost and other data required
to be filed in compliance with the requirements of this part, unless
such rate schedule is rejected as provided in 35.5. If the material
submitted is found to be incomplete, the Director of the Office of
Electric Power Regulation will so notify the filing utility within 60
days of the receipt of the submittal.
(d) Posting. The term posting as used herein shall mean, (1) keeping
a copy of every rate schedule of a public utility as currently on file,
or as tendered for filing, with the Commission open and available during
regular business hours for public inspection in a convenient form and
place at the public utility's principal and district or division offices
in the territory served, and (2) mailing to each purchaser under a rate
schedule a copy of such rate schedule on the date it is sent to this
Commission for filing. Posting shall include, in the event of the
filing of increased rates or charges, the mailing to each purchaser
under a rate schedule or schedules proposed to be changed and to each
State Commission within whose jurisdiction such purchaser or purchasers
distribute and sell electric energy at retail, a copy of the rate
schedule showing such increased rates or charges, comparative billing
data as required under this part, and, if requested by a purchaser or
State Commission, a copy of the supporting data required to be submitted
to this Commission under this part. Upon direction of the Secretary,
the public utility shall serve copies of rate schedules and
supplementary data upon designated parties other than those specified
herein.
(e) Effective date. As used herein the effective date of a rate
schedule shall mean the date on which a rate schedule filed and posted
pursuant to the requirements of this part is permitted by the Commission
to become effective as a filed rate schedule. The effective date shall
be 60 days after the filing date, or such other date as may be specified
by the Commission.
(16 U.S.C. 284(d), 792 et seq.; Pub. L. 95-617; Pub. L. 95-91; E.O.
12009, 42 FR 46267)
(Order 271, 28 FR 10573, Oct. 2, 1963, as amended at 28 FR 11404,
Oct. 24, 1963; 43 FR 36437, Aug. 17, 1978; 44 FR 16372, Mar. 19, 1979;
44 FR 20077, Apr. 4, 1979; Order 39, 44 FR 46454, Aug. 8, 1979)
0331The term tariff means a compilation, in book form, of rate
schedules of a particular public utility, effective under the Federal
Power Act, and a copy of each form of service agreement. In connection
herewith, attention is invited to part 154 of this chapter, i.e., the
Commission's regulations under the Natural Gas Act, as a guide to the
form and composition of a tariff.
18 CFR 35.3 Notice requirements.
(a) Rate schedules. All rate schedules or any part thereof shall be
tendered for filing with the Commission and posted not less than sixty
days nor more than one hundred-twenty days prior to the date on which
the electric service is to commence and become effective under an
initial rate schedule or the date on which the filing party proposes to
make any change in electric service and/or rate, charge, classification,
practice, rule, regulation, or contract effective as a change in rate
schedule, except as provided in paragraph (b) of this section, or unless
a different period of time is permitted by the Commission. Nothing
herein shall be construed as in any way precluding a public utility from
entering into agreements which, under this section, may not be filed at
the time of execution thereof by reason of the aforementioned sixty to
one hundred-twenty day prior filing requirements. The proposed
effective date of any rate schedule filing having a filing date in
accordance with 35.2(c) may be deferred at the written request of the
filing public utility submitted to the Secretary prior to its acceptance
by the Commission.
(b) Construction of facilities. Rate schedules predicated on the
construction of facilities may be tendered for filing and posted no more
than one hundred-twenty days prior to the date set by the parties for
the contract to go into effect. The Commission, upon request, may
permit a rate schedule or part thereof to be tendered for filing and
posted more than one hundred-twenty days before it is to become
effective.
(16 U.S.C. 284(d); Pub. L. 95-617; Pub. L. 95-91; E.O. 12009, 42
FR 46267)
(44 FR 16372, Mar. 19, 1979; 44 FR 20077, Apr. 4, 1979)
18 CFR 35.4 Permission to become effective is not approval.
The fact that the Commission permits a rate schedule or any part
thereof or any notice of cancellation to become effective shall not
constitute approval by the Commission of such rate schedule or part
thereof or notice of cancellation.
18 CFR 35.5 Rejection of material submitted for filing.
The Secretary, pursuant to the Commission's rules of practice and
procedure and delegation of Commission authority, shall reject any
material submitted for filing with the Commission which patently fails
to substantially comply with the applicable requirements set forth in
this part, or the Commission's rules of practice and procedure.
18 CFR 35.6 Submission for staff suggestions.
Any public utility may submit a rate schedule or any part thereof or
any material relating thereto for the purpose of receiving staff
suggestions and comments thereon prior to filing with the Commission.
18 CFR 35.7 Number of copies to be supplied.
All tariffs, rate schedules and contracts, or parts thereof, and
material related thereto including any change in rates, certificates of
concurrence, notices of cancellation or termination, and notices of
succession, shall be supplied to the Commission for filing in six
copies. All copies are to be included in one package, together with six
copies of the letter of transmittal and all other materials and
information required by these regulations, and addressed to the Federal
Energy Regulatory Commission, Washington, DC 20426.
(Order 525, 40 FR 8947, Mar. 4, 1975, as amended by Order 541, 57 FR
21734, May 22, 1992)
18 CFR 35.8 Comments by interested parties.
(a) Form of notice for Federal Register. The public utility shall
file a form of notice suitable for publication in the Federal Register
which shall be in the following form:
Take notice that (name of public utility), on (date), tendered for
filing proposed changes in its FERC Electric Service Tariff, (Volume
Nos.), (The following language in the first paragraph applies only to
increased rate filings). The proposed changes would increase revenues
from jurisdictional sales and service by (amount) based on the 12 month
period ending (date). (If changes other than increased rates and
charges are proposed, the public utility shall concisely state the
nature of these changes).
(The public utility shall briefly describe the reasons for the
proposed changes in the second paragraph.)
Copies of the filing were served upon the public utility's
jurisdictional customers, (other parties the public utility served,
inter alia, state public service commissions, other government agencies,
etc.).
Any person desiring to be heard or to protest said application should
file a petition to intervene or protest with the Federal Energy
Regulatory Commission, 825 North Capitol Street, NE., Washington, DC
20426, in accordance with 385.212 and 385.207 of this chapter. All
such petitions or protests should be filed on or before ---------- .
Protests will be considered by the Commission in determining the
appropriate action to be taken, but will not serve to make protestants
parties to the proceeding. Any person wishing to become a party must
file a petition to intervene. Copies of this application are on file
with the Commission and are available for public inspection.
(Order 487, 38 FR 19967, July 26, 1973, as amended by Order 225, 47
FR 19056, May 3, 1982; Order 541, 57 FR 21734, May 22, 1992)
18 CFR 35.9 Identification and numbering of rate schedules.
Every rate schedule filed will be numbered by the Commission and the
filing public utility advised of the Rate Schedule FERC number.
Whenever a rate schedule offered for filing changes, alters or modifies
any rate, charge, classification, or service, or any rule, regulation,
practice or contract relating thereto, or provides additionally for a
rate, charge, classification or service, or any rule regulation or
practice or contract relating thereto, but is dependent upon and
amendatory of an existing rate schedule on file with the Commission, it
will be designated as a supplement or an exhibit to the existing rate
schedule and will be so numbered.
(Order 271, 28 FR 10573, Oct. 2, 1963, as amended by Order 541, 57 FR
21734, May 22, 1992)
18 CFR 35.10 Form and style of rate schedules.
(a) Every rate schedule offered for filing with the Commission under
this part, shall show on a title page, which shall be otherwise blank,
(1) the name of the filing public utility, (2) the names of other
utilities rendering or receiving service under the rate schedule; and
(3) a brief description of the service to be provided under the rate
schedule.
(b) All rate schedules tendered for filing under this part must be
printed or otherwise reproduced on 8 1/2 inches wide by 11 inches long
white, durable paper so as to result in a clear and permanent record.
All copies must be clear, legible, complete, and must show the name(s)
of all signatories to executed documents.
18 CFR 35.11 Waiver of notice requirement.
Upon application and for good cause shown, the Commission may, by
order, provide that a rate schedule, or part thereof, shall be effective
as of a date prior to the date of filing or prior to the date the rate
schedule would become effective in accordance with these rules.
Application for waiver of the prior notice requirement shall show (a)
how and the extent to which the filing public utility and pur- chaser(s)
under such rate schedule, or part thereof, would be affected if the
notice requirement is not waived, and (b) the effects of the waiver, if
granted, upon purchasers under other rate schedules. The filing public
utility requesting such waiver of notice shall serve copies of its
request therefor upon all purchasers.
18 CFR 35.11 Subpart B -- Documents To Be Submitted With a Filing
18 CFR 35.12 Filing of initial rate schedules.
(a) The letter of a public utility transmitting to the Commission for
filing an initial rate schedule shall list the documents submitted with
the filing; give the date on which the service under that schedule is
expected to commence; state the names and addresses of those to whom
the rate schedule has been mailed; contain a brief description of the
kinds of services to be furnished at the rates specified therein; and
summarize the circumstances which show that all requisite agreement to
the rate schedule or the filing thereof, including any contract embodied
therein, has in fact been obtained. In the case of coordination and
interchange arrangements in the nature of power pooling transactions,
all supporting data required to be submitted in support of a rate
schedule filing shall also be submitted by parties filing certificates
of concurrence, or a representative to file supporting data on behalf of
all parties may be designated as provided in 35.1.
(b) In addition, the following material shall be submitted:
(1) Estimates of the transactions and revenues under an initial rate
schedule. This shall include estimates, by months and for the year, of
the quantities of services to be rendered and of the revenues to be
derived therefrom during the 12 months immediately following the month
in which those services will commence. Such estimates should be
subdivided by classes of service, customers, and delivery points and
shall show all billing determinants, e.g., kw, kwh, fuel adjustment,
power factor adjustment. These estimates will not be required where
they cannot be made with relative accuracy as, for example, in cases of
interconnection arrangements containing schedules of rates for emergency
energy, spinning reserve or economy energy or in cases of coordination
and integration of hydroelectric generating resources whose output
cannot be predicted quantitatively due to water conditions.
(2)(i) Basis of the rate or charge proposed in an initial rate
schedule and an explanation of how the proposed rate or charge was
derived. For example, is it a standard rate of the filing public
utility; is it a special rate arrived at through negotiations and, if
so, were unusual customer requirements or competitive factors involved;
and is it designed to produce a return substantially equal to the filing
public utility's overall rate of return or is it essentially an
increment cost plus a share of the savings rate? Were special cost of
service studies prepared in connection with the derivation of the rate?
(ii) A summary statement of all cost (whether fully distributed,
incremental or other) computations involved in arriving at the
derivation of the level of the rate, in sufficient detail to justify the
rate, shall be submitted with the filing, except that if the filing
includes nothing more than service to one or more added customers under
an established rate of the utility for a particular class of service,
such summary statement of cost computations is not required. In all
cases, the Secretary is authorized to require the submission of the
complete cost studies as part of the filing and each filing public
utility shall submit the same upon request by the Secretary in such form
as he shall direct.
(3) A comparison of the proposed initial rate with other rates of the
filing public utility for similar wholesale for resale and transmission
services.
(4) If any facilities are installed or modified in order to supply
the service to be furnished under the proposed rate schedule, the filing
public utility shall show on an appropriate available map (or sketch)
and single line diagram the additions or changes to be made.
(5) In support of the design of the proposed rate, the filing public
utility shall submit the same material required to be furnished pursuant
to 35.13(h)(37) Statement BL. In addition to the summary cost analysis
required by Statement BL, the public utility shall also submit a
complete explanation as to the method used in arriving at the cost of
service allocated to the sales and service for which the rate or charge
is proposed, and showing the principal determinants used for allocation
purposes. In connection therewith, the following data should be
submitted:
(i) In the event the filing public utility considers certain special
facilities as being devoted entirely to the service involved, it shall
show the cost of service related to such special facilities.
(ii) Computations showing the energy responsibility of the service,
based upon considerations of energy sales under the proposed rate
schedule and the kWh delivered from the filing public utility's supply
system.
(iii) Computations showing the demand responsibility of the service,
and explaining the considerations upon which such responsibility was
determined (e.g., coincident or non-coincident peak demands, etc.).
(Federal Power Act, 16 U.S.C. 792-828c; Department of Energy
Organization Act, 42 U.S.C. 7101-7352; E.O. 12009, 42 FR 46267; Pub.
L. 96-511, 94 Stat. 2812 (44 U.S.C. 3501 et seq.))
(Order 271, 28 FR 10573, Oct. 2, 1963, as amended at 28 FR 11404,
Oct. 24, 1963; Order 537, 40 FR 48674, Oct. 17, 1975; Order 91, 45 FR
46363, July 10, 1980)
18 CFR 35.13 Filing of changes in rate schedules.
(a) General rule.
(1) Filing for any rate schedule change not otherwise excepted.
(2) Abbreviated filing requirements.
(3) Cost of service data required by letter.
(b) General information.
(c) Information relating to the effect of the rate schedule change.
(d) Cost of service information.
(1) Filing of Period I data.
(2) Filing of Period II data.
(3) Definitions.
(4) Test period.
(5) Work papers.
(6) Additional information.
(7) Attestation.
(e) Testimony and exhibits.
(1) Filing requirements.
(2) Case in chief.
(3) Burden of proof.
(f) Filing by parties concurring in coordination and interchange
arrangements.
(g) Commission precedents and policy.
(h) Cost of service statements.
(1) AA -- Balance sheets.
(2) AB -- Income statements.
(3) AC -- Retained earnings statements.
(4) AD -- Cost of plant.
(5) AE -- Accumulated depreciation and amortization.
(6) AF -- Specified deferred credits.
(7) AG -- Specified plant accounts (other than plant in service) and
deferred debits.
(8) AH -- Operation and maintenance expenses.
(9) AI -- Wages and salaries.
(10) AJ -- Depreciation and amortization expenses.
(11) AK -- Taxes other than income taxes.
(12) AL -- Working capital.
(13) AM -- Construction work in progress.
(14) AN -- Notes payable.
(15) AO -- Rate for allowance for funds used during construction.
(16) AP -- Federal income tax deductions -- interest.
(17) AQ -- Federal income tax deductions -- other than interest.
(18) AR -- Federal tax adjustments.
(19) AS -- Additional state income tax deductions.
(20) AT -- State tax adjustments.
(21) AU -- Revenue credits.
(22) AV -- Rate of return.
(23) AW -- Cost of short-term debt.
(24) AX -- Other recent and pending rate changes.
(25) AY -- Income and revenue tax rate data.
(26) BA -- Wholesale customer rate groups.
(27) BB -- Allocation demand and capability data.
(28) BC -- Reliability data.
(29) BD -- Allocation energy and supporting data.
(30) BE -- Specific assignment data.
(31) BF -- Exclusive-use commitments of major power supply
facilities.
(32) BG -- Revenue data to reflect changed rates.
(33) BH -- Revenue data to reflect present rates.
(34) BI -- Fuel cost adjustment factors.
(35) BJ -- Summary data tables.
(36) BK -- Electric utility department cost of service, total and as
allocated.
(37) BL -- Rate design information.
(38) Statement BM -- Construction program statement.
(a) General rule. Every public utility shall file the information
required by this section, as applicable, at the time it files with the
Commission under 35.1 of this part all or part of a rate schedule to
supersede, supplement, or otherwise change the provisions of a rate
schedule filed with the Commission under 35.1. Any petition filed under
385.207 of this chapter for waiver of any provision of this section
shall specifically identify the requirement that the applicant wishes
the Commission to waive.
(1) Filing for any rate schedule change not otherwise excepted.
Except as provided in paragraph (a)(2) of this section, any utility that
files a rate schedule change shall submit with its filing the
information specified in paragraphs (b), (c), (d), (e), and (h) of this
section, in accordance with paragraph (g) of this section.
(2) Abbreviated filing requirements. (i) For certain rate increases.
Any utility that files a rate schedule change that provides for a rate
increase may submit with its filing only the information required in
paragraphs (b), (c), and (h)(37) of this section and in 35.12(b) (2)
and (5) of this part and, for any rate increase decribed in clause (B)
of this subparagraph, the information required in paragraph (h)(38) of
this section, in accordance with paragraph (g) of this section, if the
rate increase is:
(A) Less than $200,000 for Period I, as defined in paragraph
(d)(3)(i) of this section;
(B) One to which all wholesale customers that belong to the affected
rate class consent and that is less than one million dollars for Period
I;
(C) For any service of short duration and of a type for which the
need and usage cannot be reasonably forecasted, such as emergency or
short-term power; or
(D) An integral part of a coordination and interchange arrangement.
This exception to the requirements of paragraph (a)(1) of this section
does not apply to interchange schedules providing for firm services
(services furnished on an assured basis).
(ii) For rate schedule changes other than rate increases. (A) Except
as provided in paragraph (a)(2)(ii)(B) of this section, any utility that
files a rate schedule change that does not provide for a rate increase
or that provides for a rate increase that is based solely on change in
delivery points, a change in delivery voltage, or a similar change in
service, must submit with its filing only the information required in
paragraphs (b) and (c) of this section.
(B) Any utility that files a rate schedule change that provides for a
rate decrease under 35.27 of this part must submit with its filing only
the information required by 35.27 of this part.
(iii) Computing rate increases. For purposes of this subparagraph
and paragraph (d)(2)(ii) of this section, the amount of any rate
increase shall be the difference between the total revenues to be
recovered under the rate schedule change and the total revenues
recovered or recoverable under the rate schedule to be superseded or
supplemented and shall be determined by:
(A) applying the components of the rate schedule to be superseded or
supplemented to the billing determinants for the twelve months of Period
I;
(B) Applying the components of the rate schedule change to the
billing determinants for the twelve months of Period I; and
(C) Subtracting the total revenues under subclause (A) from the total
revenues under subclause (B).
(3) Cost of service data required by letter. The Director of the
Office of Electric Power Regulation may, by letter, require a utility
that is not required under paragraph (a)(1) of this section to submit
cost of service data to submit such specified cost of service data as
are needed for Commission analysis of the rate schedule change.
(b) General information. Any utility subject to paragraph (a) of
this section shall file the following general information:
(1) A list of documents submitted with the rate schedule change;
(2) The date on which the utility proposes to make the rate schedule
change effective;
(3) The names and addresses of persons to whom a copy of the rate
schedule change has been mailed;
(4) A brief description of the rate schedule change;
(5) A statement of the reasons for the rate schedule change;
(6) A showing that all requisite agreement to the rate schedule
change, or to the filing of the rate schedule change, including any
agreement required by contract, has in fact been obtained;
(7) A statement showing any expenses or costs included in the cost of
service statements for Period I or Period II, as defined in paragraph
(d)(3) of this section, that have been alleged or judged in any
administrative or judicial proceeding to be illegal, duplicative, or
unnecessary costs that are demonstrably the product of discriminatory
employment practices; and
(8) A form of notice suitable for publication in the Federal Register
in accordance with 35.8 of this part.
(c) Information relating to the effect of the rate schedule change.
Any utility subject to paragraph (a) of this section shall also file the
following information or materials:
(1) A table or statement comparing sales and services and revenues
from sales and services under the rate schedule to be superseded or
supplemented and under the rate schedule change, by applying the
components of each such rate schedule to the billing determinants for
each class of service, for each customer, and for each delivery point or
set of delivery points that constitutes a billing unit:
(i) Except as provided in clause (ii), for each of the twelve months
immediately before and each of the twelve months immediately after the
proposed effective date of the rate schedule change, and the total for
each of the two twelve month periods; or
(ii) At the election of the utility:
(A) If the utility files Statements BG and BH under paragraph (h) for
Period I, for each of the twelve months of Period I instead of for the
twelve months immediately before the proposed effective date of the rate
schedule change; and
(B) If Period II is the test period, for each of the twelve months of
Period II instead of for the twelve months immediately after the
proposed effective date of the rate schedule change;
(2) A comparison of the rate schedule change and the utility's other
rates for similar wholesale for resale and transmission services; and
(3) If any specifically assignable facilities have been or will be
installed or modified in order to supply service under the rate schedule
change, an appropriate map or sketch and single line diagram showing the
additions or changes to be made.
(d) Cost of service information -- (1) Filing of Period I data. Any
utility that is required under paragraph (a)(1) of section to submit
cost of service information, or that is subject to the exception in
paragraph (a)(2)(i) of this section but elects to file such information,
shall submit Statements AA through BM under paragraph (h) using:
(i) Unadjusted Period I data; or
(ii) Period I data adjusted to reflect changes that affect revenues
and costs prior to the proposed effective date of the rate schedule
change and that are known and measurable with reasonable accuracy at the
time the rate schedule change is filed, if such utility:
(A) Is not required to and does not file Period II data;
(B) Adjusts all Period I data to reflect such changes; and
(C) Fully supports the adjustments in the appropriate cost of service
statements.
(2) Filing of Period II data. (i) Except as provided in clause (ii)
of this subparagraph, any utility that is required under paragraph
(a)(1) of this section to submit cost of service information shall
submit Statements AA through BM described in paragraph (h) using
estimated costs and revenues for Period II;
(ii) A utility may elect not to file Period II data if:
(A) The utility files a rate increase that is less than one million
dollars for Period I; or
(B) All wholesale customers that belong to the affected rate class
have consented to the rate increase.
(3) Definitions. For purposes of this section:
(i) Period I means the most recent twelve consecutive months, or the
most recent calendar year, for which actual data are available, the last
day of which is no more than fifteen months before the date of tender
for filing under 35.1 of the notice of rate schedule change;
(ii) Period II means any period of twelve consecutive months after
the end of Period I that begins:
(A) No earlier than nine months before the date on which the rate
schedule change is proposed to become effective; and
(B) No later than three months after the date on which the rate
schedule change is proposed to become effective.
(4) Test period. If Period II data are not submitted for Statements
AA through BM, Period I shall be the test period. If Period II data are
submitted for Statements AA through BM, Period II shall be the test
period.
(5) Work papers. A utility that files adjusted Period I data or that
files Period II data shall submit all work papers relating to such data.
The utility shall provide a comprehensive explanation of the bases for
the adjustments or estimates and, if such adjustments or estimates are
based on a regularly prepared corporate budget, shall include relevant
excerpts from such budget. Work papers and documents containing
additional explanatory material shall be cut or folded to letter size,
shall be assigned page numbers, and shall be marked, organized and
indexed according to:
(A) Subject matter;
(B) The cost of service statements to which they apply; and
(C) Witness.
(6) Attestation. A utility shall include in its filing an
attestation by its chief accounting officer or another of its officers
that, to the best of that officer's knowledge, information, and belief,
the cost of service statements and supporting data submitted under this
paragraph are true, accurate, and current representations of the
utility's books, budgets, or other corporate documents.
(e) Testimony and exhibits -- (1) Filing requirements. (i) A utility
subject to paragraph (a)(1) of this section shall file Statements AA
through BM under paragraph (h) as exhibits with its rate schedule change
and may file any other exhibits in support of its rate schedule change.
(ii) A utility subject to paragraph (a)(1) of this section shall file
prepared testimony. Such testimony shall include an explanation of all
exhibits, inlcuding Statements AA through BM, and shall include support
for all adjustments to book or budgeted data relied on in preparing the
exhibits.
(iii) To the extent that testimony and exhibits other than Statements
AA through BM duplicate information required to be submitted in such
statements, the testimony and exhibits may incorporate such information
by referencing the specific statement containing such material.
(2) Case in chief. In order to avoid delay in processing rate
filings, such cost of service statements, testimony, and other exhibits
described in paragraph (e)(1) of this section shall be the utility's
case in chief in the event the matter is set for hearing.
(3) Burden of proof. Any utility that files a rate increase shall be
prepared to go forward at a hearing on reasonable notice on the data
submitted under this section, to sustain the burden of proof under the
Federal Power Act of establishing that the rate increase is just and
reasonable and not unduly discriminatory or preferential or otherwise
unlawful within the meaning of the Act.
(f) Filing by parties concurring in coordination and interchange
arrangements. For coordination and interchange arrangements in the
nature of power pooling transactions, all information required to be
submitted in support of a rate schedule change under paragraphs (a)(1),
(2), and (3) of this section shall be submitted by each party filing a
certificate of concurrence under 35.1. If a representative is
designated and authorized in accordance with 35.1 to file supporting
information on behalf of all parties to a rate schedule change, such
filing shall fulfill the requirement in this paragraph for individual
submittals by each party.
(g) Commission precedents and policy. If a utility submits cost of
service data under paragraph (d) of this section, it shall conform all
such submissions to any rule of general applicability and to any
Commission order specifically applicable to such utility.
(h) Cost of service statements. Any utility subject to paragraph
(a)(1) of this section shall submit the following Statements AA through
BM in accordance with the requirements of paragraphs (d) and (g) of this
section.
(1) Statement AA -- Balance sheets. Statement AA consists of balance
sheets as of the beginning and the end of both Period I and Period II,
and the most recently available balance sheet, including any applicable
notes, and an explanation of any significant accounting changes since
the most recent filing by the utility under this section that involves
the same wholesale customer rate class. Balance sheets shall be
constructed in accordance with the annual report form for electric
utilities specified in part 141.
(2) Statement AB -- Income statements. Statement AB consists of
income statements for both Period I and Period II, and the most recently
available income statement, including any applicable notes, and an
explanation of any significant accounting changes since the most recent
filing by the utility under this section that involves the same
wholesale customer rate class. Income statements shall be prepared in
accordance with the annual report form for electric utilities specified
in part 141.
(3) Statement AC -- Retained earnings statements. Statement AC
consists of retained earnings statements for both Period I and Period
II, and the most recently available retained earnings statement,
including any notes applicable thereto. Retained earnings statements
shall be prepared in accordance with the annual report form for electric
utilities specified in part 141.
(4) Statement AD -- Cost of plant. Statement AD is a statement of
the original cost of total electric plant in service according to
functional classification for Period I and Period II. If the plant
functions and subfunctions for Period I and Period II are different, the
utility shall explain and justify the differences.
(i) For each separately identified function and subfunction of
production plant or transmission plant, the utility shall state the
original cost as of the beginning of the first month and the end of each
month of both Period I and Period II, with an average of the thirteen
balances for each period. If any of the Period I or Period II thirteen
monthly balances is not available or is unrepresentative of the current
plan of the utility for plant in service, the utility shall provide an
explanation of the relevant circumstances.
(ii) For each separately identified function and subfunction of plant
other than production or transmission, the utility shall state the
original cost as of the beginning and the end of both Period I and
Period II, with an average of the beginning and end balances for each
period. If any of the Period I or Period II balances is not available
or is unrepresentative of the current plan of the utility for plant in
service, the utility shall provide an explanation of the relevant
circumstances.
(iii) The utility shall show the electric plant in service in
accordance with each of the following five major functional
classifications:
(A) Production;
(B) Transmission;
(C) Distribution;
(D) General and Intangible; and
(E) Common and Other.
(iv) To the extent feasible, the utility shall show completed
construction not classified in accordance with clause (iii) in
accordance with tentative classification to major functional accounts.
If this is not feasible, the utility shall describe such facilities as
other plant under clause (iii)(E).
(v) If a utility designs its rate change so that subdivision of the
major functional classifications is necessary to support the changed
rate, the utility shall supply the original cost information for any of
the five major functional plant classifications in clause (iii) that are
divided into subfunctional categories. If subfunctional original cost
information is provided, the utility shall explain the importance of
providing such information to support the changed rate. The utility
shall describe each subfunctional category in substantive terms, such as
steam electric production or high voltage transmission.
(vi) The utility shall select any subfunctional categories, as
appropriate, under the following criteria:
(A) Production plant categories shall be established as necessary to
segregate costs for production services with special characteristics,
such as base, intermediate or peaking load. The utility shall provide a
description of each such service and shall list a brief descriptive
title for each corresponding subfunctional category.
(B) Transmission plant categories shall be chosen to reflect the
extent to which the facilities are proposed to be allocated on a common
basis among all or specific segments of utility services. For
descriptive purposes, plant may also be categorized according to
accounting or engineering terminology, such as high voltage overhead
lines. The utility shall provide brief descriptive transmission
category titles and explain the basis for the titles. If a utility
allocates all transmission plant among utility services on the basis of
a single set of allocation data, the utility may show original cost in
total without subfunctionalization.
(C) Distribution plant categories shall be selected according to
engineering or use characteristics meaningful for allocations or
assignments to wholesale services such as substations, overhead lines,
meters, or non-wholesale. The utility shall provide brief descriptive
distribution category titles and shall explain the basis for the titles.
(D) If the utility divides any general, intangible, common, and other
plant functional classifications into subfunctional categories, the
subfunctional categories shall be chosen to group together facilities
that share a common basis for allocation between wholesale and other
electric services. The utility shall provide a brief descriptive title
for each general and intangible subfunctional category, and for each
common and other subfunctional category, with an explanation of the
basis of each category selection. A utility need not divide the
functional classifications of plant into subfunctional categories if
these functions of plant are allocated in Statement BK on the basis of
utility labor expenses.
(E) A separate category shall be provided for each specific
assignment of plant reported in Statement BE. Such assignments are
applicable principally but not necessarily exclusively to distribution
facilities. The utility shall provide brief descriptive titles
consistent with Statement BE.
(F) A separate category shall be provided for each exclusive-use
commitment of major power supply facilities as required to be reported
at Statement BF. The utility shall provide brief descriptive titles
consistent with Statement BF.
(5) Statement AE -- Accumulated depreciation and amortization.
Statement AE is a statement of the accumulated provision for
depreciation and amortization of electric plant for Period I and Period
II, provided according to major functional classifications selected by
the utility in Statement AD under paragraph (h)(4) and divided into the
subfunctional categories selected by the utility in Statement AD, to the
extent that subfunctionalized data are available.
(i) For each function and subfunction of electric production and
transmission plant in service identified in Statement AD, the utility
shall set forth the accumulated depreciation and amortization as of the
beginning of the first month and the end of each month of both Period I
and Period II. The utility shall state an average for each period
computed as the average of the thirteen balances.
(ii) For each function and subfunction of electric plant in service
other than production or transmission, identified in Statement AD, the
utility shall state the accumulated depreciation and amortization as of
the beginning and the end of Period I and Period II, with an average of
the beginning and end balances for each period.
(iii) If any of the Period I or Period II balances is not available
or is unrepresentative of the current plan of the utility for
depreciation reserves, the utility shall provide an explanation of the
relevant circumstances.
(iv) If accumulated depreciation and amortization data are not
available for any subfunction selected in Statement AD, the utility
shall:
(A) Provide a comparison of the current depreciation rate of the
major functional classification and the depreciation rate estimated to
be appropriate to the subfunctional category; and
(B) State and explain the estimation techniques which the utility
proposes to utilize in the absence of subfunctional data, such as the
proration of accumulated depreciation and amortization data among the
subfunctional categories according to the data for electric plant in
service in Statement AD. If any of the proposed estimation techniques
require data that are not provided elsewhere in the cost of service
statements in paragraph (h) of this section, the utility shall supply
the necessary data in Statement AE.
(6) Statement AF -- Specified deferred credits. Statement AF
consists of balances of specified accounts and items which are to be
considered in the determination of the net original cost rate base. All
required balances are to be stated as of the beginning and end of both
Period I and Period II, with an average of the beginning and end
balances for each period. If any of the Period I and Period II balances
is not available or is unrepresentative of the current operating plan of
the utility, the utility shall include an explanation of the relevant
circumstances. If subaccounts are maintained to reflect differences in
ratemaking treatment among regulatory authorities that have
jurisdiction, balances shall be provided in accordance with such
subaccounts, with detailed explanations of the bases upon which the
subaccounts were established and are maintained. The balances of
deferred credits required to be filed in this statement are described in
paragraph (h)(6) (i) through (v) of this section. All references to
numbered accounts refer to the Commission's Uniform System of Accounts,
18 CFR part 101.
(i) The utility shall state total electric balances for accumulated
deferred investment tax credits Account 255, and shall separate the
credits into balances applicable to pre-1971 and post-1970 qualifying
property additions. If the utility maintains records to show Account
255 component balances according to the major functional classifications
identified in Statement AD under paragraph (h)(4), the utility shall
provide the component balances by function. If the data are not
available by function, the utility shall describe the procedure by which
the utility believes it can reasonably estimate the portion of the total
electric balances for each major functional classification. The utility
may show by function the component balances obtained by applying the
procedure. If such estimation requires data that are not provided
elsewhere in the cost of service statements in this paragraph, the
utility shall supply in Statement AF the necessary data, such as
historical functional patterns of plant additions eligible for the tax
credits. The utility shall state whether the Internal Revenue Code
General Rule, 46(f)(1), is applicable with respect to restrictions on
credit treatment for ratemaking purposes. If the General Rule is not
applicable, the utility shall state which election it has made with
respect to special rules for ratable or immediate flow-through for
ratemaking purposes.
(ii) The utility shall state the total electric component balances
for accumulated deferred income tax Account 281 pertaining to
accelerated amortization property. The utility shall show separate
components for defense, pollution control, and other facilities. The
utility shall show balances for each component and totaled for the
electric utility department. If the utility maintains records to show
Account 281 component balances according to the major functional
classifications identified in Statement AD under paragraph (h)(4), the
utility shall provide such component balances. If data are not
available by function, the utility shall describe the procedure by which
the utility believes it can reasonably estimate the portion of the total
electric balances for each major functional classification. The utility
may show by function the component balances obtained by applying the
procedure. If such estimation requires data that are not provided
elsewhere in the cost of service statements in this paragraph, the
utility shall supply in Statement AF the necessary data.
(iii) The utility shall state the total electric component balances
for accumulated deferred income tax Account 282 pertaining to electric
utility property other than accelerated amortization property. The
utility shall itemize the balances in Account 282, to the extent data
are available, in detail sufficient to identify the specific major
properties involved and shall list the balances according to the
accounting entries, such as liberalized depreciation, for which
interperiod tax allocation was used and included in this account.
Component balances shall be shown individually and in total for the
electric utility department. If the utility maintains records to show
account 282 component balances according to the major functional
classifications identified in Statement AD under paragraph (h)(4), the
utility shall provide such component balances by function. If the data
are not available by function, the utility shall describe the procedure
by which the utility believes it can reasonably estimate the portion of
the total electric balances for each major functional classification.
The utility may show by function the component balances obtained by
applying the procedure. If such estimation requires data that are not
provided elsewhere in the cost of service statements in this paragraph,
the utility shall supply in Statement AF the necessary data, such as
historical functional patterns of plant additions.
(iv) The utility shall state the total electric component balances
for accumulated deferred income tax Account 283 pertaining to
interperiod income tax allocations not related to property. The utility
shall itemize in detail balances in Account 283, to the extent data are
available, and shall list the balances according to the accounting
entries for which interperiod tax allocation was used and included in
this account. Component balances shall be shown individually and in
total for the electric utility department. If the utility maintains
records to show Account 283 component balances according to the major
functional classifications identified in Statement AD under paragraph
(h)(4), the utility shall provide such component balances by function.
If the data are not available by function, the utility shall describe
the procedure by which the utility believes it can reasonably estimate
the portion of the total electric balances for each major functional
classification. The utility may show by function the component balances
obtained by applying the procedure. If such estimation requires data
that are not provided elsewhere in the cost of service statements in
this paragraph, the filing shall supply in Statement AF the necessary
data.
(v) The utility shall show electric utility balances for every other
item that the utility believes should be included in Statement AF. The
utility shall explain the reasons for inclusion of each item.
(7) Statement AG -- Specified plant accounts (other than plant in
service) and deferred debits. Statement AG is a statement of balances
of specified accounts and items that are to be considered in the
determination of the net original cost rate base. Except as prescribed
in clause (ii), the utility shall state all required balances as of the
beginning and the end of Period I and Period II, with an average of the
beginning and end balances for each period. If any of the Period I or
Period II balances is not available or is unrepresentative of the
current operating plan of the utility, the utility shall provide a full
explanation of the relevant circumstances. If subaccounts are
maintained to reflect differences in ratemaking treatment among
regulatory authorities having jurisdiction, the utility shall provide
balances in accordance with such subaccounts, with detailed explanations
of the bases upon which the subaccounts were established and are
maintained. The balances required to be submitted under Statement AG
are described in clauses (7)(i) through (vi).
(i) For each separately identified major functional classification
selected by the utility in Statement AD, the utility shall state the
electric utility land and land rights balances for electric plant held
for future use in account 105. If itemized in detail, balances shall be
totaled for each major functional classification.
(ii) The utility shall state the electric utility component balances
in Accounts 107 and 120.1, individually and in total, for each item of
construction work in progress for pollution control facilities, fuel
conversion facilities, or any other facilities that qualify for
inclusion in rate base under 35.26. The utility shall state such
balances for each major functional and subfunctional classification
under Statement AD as of the beginning of the first month and the end of
each month of Period I and Period II with an average of the 13 balances
for each period.
(iii) For each major functional classification under Statement AD and
with respect to property otherwise includable in plant in service, the
utility shall state the balances for extraordinary property losses
Account 182. If itemized in detail, balances shall be totaled for each
major functional classification. The utility shall provide information
about Commission authorization for any loss included in Account 182 and
shall state when the loss was claimed for tax purposes.
(iv) The utility shall state the total electric component balances
for accumulated deferred income taxes Account 190. The component
balances in Account 190 shall be itemized in detail and listed according
to the accounting entries for which interperiod tax allocation was used.
Component balances shall be shown individually and in total for the
electric utility department. If the utility maintains records to show
Account 190 component balances according to the major functional
classifications identified in Statement AD under paragraph (h)(4), the
utility shall provide such component balances by function. If the data
are not available by function, the filing utility shall describe the
procedure by which the utility believes it can reasonably estimate the
portion of the total electric balances for each major functional
classification. The utility may show by function the component balances
obtained by applying the procedure. If such estimation requires data
that are not provided elsewhere in the cost of service statements in
this paragraph, the utility shall supply in Statement AG the necessary
data.
(v) Balances shall be shown for every other item that the utility
believes should be included in Statement AG. The utility shall provide
support for inclusion of each item, and a brief descriptive title for
each such item.
(8) Statement AH -- Operation and maintenance expenses. Statement AH
is a statement of electric utility operation and maintenance expenses
for Period I and Period II provided according to the accounts prescribed
by the Commission's Uniform System of Accounts, 18 CFR part 101.
(i) For Period I and Period II, the utility shall itemize and
subtotal all operation and maintenance expenses according to the major
functional classifications of Statement AD in paragraph (h)(4) and the
subfunctional categories of those classifications. The utility shall
further divide the operation and maintenance expenses itemized under the
production classification and each of its subfunctional categories to
reflect expenses relating to the energy component (list each item by
account number and compute fuel costs on an as-burned basis), the demand
component, and any other production expenses.
(ii) For Period I and Period II, the utility shall report production
operation and maintenance expenses according to appropriate account
numbers. The utility shall apply the following principles in developing
Period I and Period II production operation and maintenance data for
this statement:
(A) Total production operation and maintenance expenses shall be
segregated into energy, demand, and other components. The utility shall
specifically state and support its criteria for classifications between
energy and demand, and for use of the production other classification,
such as specific assignments related to sales from particular generating
units.
(B) Fuel expense for cost of service purposes shall be the total
as-burned expense incurred. If the utility defers a portion of such
expense for accounting purposes, the deferral amount shall be separately
stated and accompanied by material that shows computational detail in
support of such amount. If claimed nuclear fuel expense reflects a
change in the estimated net salvage value of nuclear fuel, the utility
shall show the amounts involved and explain the relevant circumstances.
(C) If the amount of production fuel expense is significantly
affected by abnormal Period I water availability for hydroelectric
generation, the utility shall explain how water availability was taken
into account in developing projected Period II production fuel expenses.
(iii) For Period I and Period II, the utility shall report operation
and maintenance expenses attributable to the transmission and
distribution functions according to appropriate account numbers. If
Period II transmission and distribution plant data are not provided by
subfunctional category in Statement AD, the utility need only provide
for Period II total operation and maintenance expenses for each
function.
(iv) For Period I and Period II, the utility shall report in total
for each period, operation and maintenance expenses incurred under each
of the categories of customer accounting, customer service and
information, and sales.
(v) For Period I and Period II, the utility shall itemize
administrative and general expenses by groups that are directly
assignable, such as regulatory Commission expenses, or that are related
to selected plant or expense items for which an allocation to wholesale
services is independently determinable, such as items related to labor
expense or to a category of production plant in service. Administrative
and general expenses shall include a detailed itemization of the general
advertising Account 930.1 and the miscellaneous general expenses Account
930.2. If Account 930 data are not projected on a detailed basis for
Period II, the utility shall provide its best estimate of the Account
930.1 expense items and a descriptive list of expense items anticipated
as miscellaneous general expenses in Account 930.2. Where applicable,
separate items shall be shown for general plant maintenance, and for
common and other plant maintenance.
(vi) In addition to annual production data for Period I and Period
II, the utility shall provide monthly expense data by accounts for fuel
in Accounts 501, 518, and 547 and purchased power in Account 555. For
each type of transaction, such as firm power or economy interchange
power, monthly purchased power expense data shall be subtotaled
separately for interchange receipts and deliveries. For monthly fuel
Accounts 501, 518, and 547, and for each type of purchased power
transaction, the monthly data shall identify components to be claimed
under the fuel adjustment clause of the utility.
(9) Statement AI -- Wages and salaries. Statement AI consists of
statements of the electric utility wages and salaries, for Period I and
Period II, that are included in operation and maintenance expenses
reported in Statement AH.
(i) For Period I and Period II, the utility shall show the
distribution of wages and salaries by function according to the form
prescribed for operation and maintenance expenses by the Commission's
Uniform System of Accounts, 18 CFR part 101. The statement shall also
include by function additional wages and salaries attributable to common
and other plant classifications identified in Statement AD in paragraph
(h)(4).
(ii) For Period I and Period II, the utility shall show total
production wages and salaries, itemized and subtotaled into energy and
demand related components in accordance with classifications of
Statement AH operation and maintenance production expenses of which
production wages and salaries are a part.
(10) Statement AJ -- Depreciation and amortization expenses.
Statement AJ consists of statements of depreciation and amortization
expenses for Period I and Period II.
(i) For Period I and Period II, the utility shall show the
depreciation and amortization expenses and the depreciable plant
balances of the filing utility, in accordance with major functional
classifications selected by the utility in Statement AD under paragraph
(h)(4).
(ii) The utility shall divide the major functional classifications of
depreciation and amortization expenses shown in clause (i) into the
subfunctional categories selected by the utility for electric plant in
service in Statement AD, to the extent such data are available.
(iii) If depreciation and amortization expense data are not available
for any subfunctional category selected in Statement AD, the utility
shall:
(A) Provide a comparison of the current depreciation rate of the
major functional classification and the depreciation rate estimated to
be appropriate to the subfunctional category; and
(B) State and explain the estimation techniques that the utility
utilized in developing each estimated subfunctional depreciation rate.
If utilization of such estimation techniques requires data that are not
provided elsewhere in the cost of service statements in this paragraph,
the utility shall supply such data in Statement AJ.
(iv) For Period I and Period II, the utility shall show the annual
depreciation rate applicable to each function and subfunction for which
depreciation expense is reported. The utility shall indicate the bases
upon which the depreciation rates were established. If the depreciation
rates used for Period I or Period II data differ from those employed to
support the utility's prior approved jurisdictional electric rate, the
utility shall include in or append to Statement AJ detailed studies in
support of such changes. These detailed studies shall include:
(A) Copies of any reports or analyses prepared by any independent
consultant or utility personnel to support the proposed depreciation
rates; and
(B) A detailed capital recovery study showing by primary account the
depreciation base, accumulated provision for depreciation, cost of
removal, net salvage, estimated service life, attained age of survivors,
accrual rate, and annual depreciation expense.
(11) Statement AK -- Taxes other than income taxes. Statement AK
consists of statements of taxes other than income taxes for Period I and
Period II.
(i) For Period I and Period II, the utility shall itemize and total
any taxes other than income taxes according to clauses (i) (A) through
(D).
(A) Revenue taxes. The utility shall show total revenue taxes levied
by each taxing authority and identify the revenue taxes, under both the
present and changed rate, applicable to wholesale services for which a
rate change is filed. The utility shall identify revenue taxes
associated with each revenue credit item reported in Statement AU under
paragraph (h)(21).
(B) Real estate and property taxes. The utility shall itemize and
total all real estate and property taxes. If the utility maintains
records to show tax component balances according to the major functional
classifications identified in Statement AD under paragraph (h)(4), the
utility shall supply the component balances by function. If the data
are not available by function, the utility shall describe the procedure
by which the utility believes it can reasonably estimate the portion of
the total electric balances for each major functional classification.
The utility may show by function the component balances obtained by
applying the procedure. If such estimation requires data that are not
provided elsewhere in the cost of service statements in this paragraph,
the utility shall supply the necessary data in Statement AK.
(C) Payroll taxes. The utility shall itemize and total all payroll
taxes. If the utility maintains records to show tax component balances
according to the major functional classifications identified in
Statement AD in paragraph (h)(4), the utility shall provide the
component balances by function. If the data are not available by
function, the utility shall describe the procedure by which the utility
believes it can reasonably estimate the portion of the total electric
balances for each major functional classification. The utility may show
by function the component balances obtained by applying the procedure.
If such estimation requires data that are not provided elsewhere in the
cost of service statements in this paragraph, the utility shall provide
the necessary data in Statement AK.
(D) Miscellaneous taxes. The utility shall itemize and total all
miscellaneous taxes which are directly assignable or which are related
to any selected plant or expense item for which an allocation to
wholesale services is independently determinable, such as items related
to transmission plant in service or to net distribution plant.
(ii) If any of the taxes itemized under clause (11)(i) are levied by
a taxing authority that is a customer, or is related to a customer,
whose services would be affected by the changed rate schedule, the
utility shall show amounts of such taxes according to the taxing
authority, identify the related customer, and provide an explanation of
the relevant circumstances.
(12) Statement AL -- Working capital. Statement AL consists of
statements for Period I and Period II designed to establish the need for
working capital to maintain adequate levels of operating supplies, to
meet required prepayments, and to meet ongoing cash disbursements that
must be made at a time different than related revenue receipts for
utility services rendered.
(i) Supplies and prepayments. The utility shall supply statements to
show monthly balances of operating supplies and prepayments itemized
under clauses (i) (A) through (C). The utility shall state all required
balances as of the beginning of the first month and the end of each
month of both Period I and Period II, with an average of the thirteen
balances for each period. If any of the Period I or Period II balances
is not available or is unrepresentative of the current operating plan of
the utility for supplies or prepayments, the utility shall include an
explanation of the relevant circumstances. Operating supply and
prepayment balances shall be itemized under the following categories:
(A) Fuel supplies. The utility shall state the fuel supply balances
for each type of electric utility production plant, except hydraulic.
The utility shall describe its overall fossil fuel supply objectives for
Period I and Period II, in terms of projected average days of burn for
major fossil fuel generating stations, if feasible. The utility shall
explain substantial differences, if any, between actual Period I
inventories and the target objectives, or between Period II objectives
and Period I objectives. Nuclear fuel balances shall include fuel in
stock, fuel in the reactor and spent fuel in the process of cooling in
Accounts 120.2, 120.3, 120.4, less accumulated provisions for
amortization of nuclear fuel assemblies in Account 120.5.
(B) Plant materials and operating supplies. The utility shall state
materials and operating supply balances for each of the major electric
utility operating functions of production, transmission, and
distribution, and for each significant type of miscellaneous operating
supplies. Miscellaneous supplies shall be grouped to facilitate
suitable allocations or assignments among utility services.
(C) Prepayments. The utility shall indicate prepayment balances for
each major prepayment item, with a brief description of the item.
Balances shall be grouped and subtotaled to facilitate suitable
allocations or assignments among utility services.
(ii) Cash working capital. The utility shall indicate average
monthly working cash requirements that reflect the extent to which
day-to-day operational utility service revenues are received later or
earlier than cash disbursements necessary to provide the services, with
an explanation of how such requirements are derived.
(13) Statement AM -- Construction work in progress. Statement AM is
a statement of the amount of construction work in progress described
according to functional classification for Period I and Period II. For
production plant and transmission plant, the utility shall state the
balances as of the beginning of the first month and the end of each
month of both Period I and Period II, with an average of the 13 balances
for each period. For each function of plant identified in Statement AD
other than production or transmission, the utility shall state the
balances as of the beginning and the end of both Period I and Period II,
with an average of the beginning and end balances for each period. If
any Period I or Period II balance is not available, the utility shall
include monthly estimates and an explanation of the relevant
circumstances. Pollution control facilities, fuel conversion
facilities, or other construction amounts reported in Statement AG shall
be excluded from amounts reported in this Statement.
(14) Statement AN -- Notes payable. Statement AN is a statement of
the electric utility portion of average notes payable for Period I and
Period II. The utility shall indicate balances as of the beginning of
the first month and the end of each month of both Period I and Period
II, with an average of the thirteen balances for each period. If any of
the Period I or Period II balances is not available or is
unrepresentative of the current financing plan of the utility, the
utility shall provide an explanation of the relevant circumstances. If
a utility has operations other than electric, the utility shall also
show allocations between electric and other utility departments on an
appropriate basis, such as the average amount of construction work in
progress and net plant.
(15) Statement AO -- Rate for allowance for funds used during
construction. Statement AO is a statement of the basis of the rate for
computing the allowance for funds used during construction (AFUDC) for
Period I and Period II.
(i) The utility shall show the computations of the maximum rates for
the construction allowances computed in accordance with plant
instructions of the Commission's Uniform System of Accounts, 18 CFR part
101. The utility shall show the rates computed annually, and shall
provide the rates for each annual period that includes any part of
Period I or Period II. If the utility proposes to use a net-of-tax
rate, the utility shall show the derivation for both the gross-of-tax
and net-of-tax rates.
(ii) If the book allowance amounts of AFUDC do not reflect the
maximum rates for allowances for funds computed in accordance with
clause (i), the utility shall show the derivation for the actual rates
utilized in computing AFUDC, including derivation of any net-of-tax rate
utilized by the utility.
(16) Statement AP -- Federal income tax deductions -- interest.
Statement AP is a statement of electric utility interest charges for
Period I and Period II. For each period, the utility shall state the
total electric utility interest in terms of three or more component
items described in clauses (i) through (iv).
(i) The utility shall state the allowance for borrowed funds used for
electric utility construction Account 432 as a separate component. The
utility shall show supporting detail, including computation of the
amounts on the basis of AFUDC rates claimed in Statement AO.
(ii) The utility shall state interest for borrowed funds used for
electric utility construction Account 431 as a separate component. If
applicable, the utility shall also show all elements of Account 431
related to purposes other than electric utility construction, with
detailed supporting material, such as a computation of allocations
between electric and other utility departments with explanatory material
to support the bases of such allocations.
(iii) The utility shall state the interest on long-term debt required
for electric rate base investment as a separate component. The interest
amount shall be consistent with that shown and utilized in Statement BK
under paragraph (h)(36) of this section.
(iv) The utility shall show other interest items appropriate in the
determination of net taxable income allocable to the wholesale services
at issue. The utility shall describe and support each item and shall
accompany each item with a statement of the basis on which the item is
allocable to the wholesale services. The utility shall also list a
short descriptive title for each item.
(17) Statement AQ -- Federal income tax deductions -- other than
interest. Statement AQ is a statement of other deductions from net
operating income before Federal income taxes, for Period I and Period
II, which deductions are appropriate in determining the net taxable
income allocable to the wholesale services subject to the changed rate.
The utility shall show unallowable deductions as negative entries in
this statement. The utility shall itemize deductions in accordance with
clause (i) through (iii) and individually identify each by a brief
descriptive title.
(i) The utility shall report, as a separate component of this
statement, the difference between tax and book depreciation, in total,
or in individual amounts based on the Internal Revenue Code provisions
that permit the utility to use various methods of computing depreciation
for tax purposes, such as liberalized depreciation or the asset
depreciation range. If the utility reports the differences in total
only, it shall list the specific Internal Revenue Code provisions that
result in the difference.
(ii) The utility shall state taxes and pensions capitalized as a
separate component.
(iii) The utility shall describe and support other deduction items
appropriate in the determination of net taxable income allocable to the
wholesale services. Each item shall be accompanied by a brief
explanation of the basis on which the item is allocable to the wholesale
services.
(18) Statement AR -- Federal tax adjustments. Statement AR is a
statement of adjustments to Federal income taxes for Period I and Period
II. If subaccounts are maintained to reflect differences in ratemaking
treatment among regulatory authorities having jurisdiction, the utility
shall provide adjustment amounts in accordance with such subaccounts.
The utility shall report detailed explanations of the bases upon which
the subaccounts were established and are maintained.
(i) For each major function of plant identified in Statement AD under
paragraph (h)(4), the utility shall state the electric utility component
adjustment for the Federal portions of the provision for deferred income
tax Account 410.1. If the data are not available by function, the
utility shall state the amounts for the total electric utility and shall
describe the procedure by which the utility believes it can reasonably
estimate the portion of the total electric balances for each major
functional classification. The utility may show by function the
component balances obtained by applying the procedure. If such
estimation requires data that are not provided elsewhere in the cost of
service statements in this paragraph, the utility shall supply in
Statement AR the necessary data. The utility shall provide the
adjustment amounts for total electric and, to the extent available for
each such major functional component, accompanied by summary totals
segregated in accordance with related balance sheet Accounts 281, 282,
283, and 190 (see Statements AF and AG). Account 190 items require a
negative sign for entries in Statement AR. The utility shall identify
the summarized items by account number.
(ii) The utility shall provide for the Federal portions of the
provision for deferred income tax-credit Account 411.1 the data required
by clause (i) for Account 410.1.
(iii) For each major functional classification of plant identified in
Statement AD under paragraph (h)(4), the utility shall provide the
electric utility component for investment tax credits generated for
Period I and Period II, credits utilized for each period, and the
allocations to current income for each period. If the data are not
available by function, the utility shall state the amounts for total
electric utility and shall describe the procedure by which the utility
believes it can reasonably estimate the portion of the total electric
balances for each major functional classification. The utility may show
by function the component balance obtained by applying the procedure.
If such estimation requires data that are not provided elsewhere in the
cost of service statements in this paragraph, the utility shall supply
in Statement AR the necessary data. If itemized in detail, balances
shall be subtotaled for each major function, and totaled for the
electric utility department. Detailed data shall be consistent with
that provided in Statement AF under paragraph (h)(6) of this section.
(iv) The utility shall list and designate as other adjustment items
any additional Federal income tax adjustments and shall provide a brief
descriptive title for each item. The utility shall explain the reasons
for inclusion of each item, and shall indicate the basis on which each
will be assigned or allocated to the wholesale services subject to the
changed rate and to the other electric utility services.
(19) Statement AS -- Additional state income tax deductions.
Statement AS is a listing of state income tax deductions for Period I
and Period II, in addition to those listed at Statements AP and AQ for
Federal tax purposes. The utility shall explain the reasons for
inclusion of each item. The utility shall indicate the basis on which
each item is to be assigned or allocated to the wholesale services at
issue and to the other electric utility services. If applicable, the
utility shall show unallowable deductions as negative entries in this
statement. The utility shall provide the percentage of Federal income
tax payable which is deductible for state income tax purposes, if
applicable. (See also Statement AY, dealing with tax rate data.)
(20) Statement AT -- State tax adjustments. Statement AT is a
statement of adjustments to state income taxes for Period I and Period
II. The utility shall prepare and present the data in statement AT as
prescribed for Federal tax adjustments in Statement AR. The utility
shall annotate Statement At data as necessary to identify state tax
adjustments that are not properly deductible for Federal tax purposes.
(21) Statement AU -- Revenue credits. Statement AU is, for Period I
and Period II, a statement of the operating revenue balances in Accounts
450 through 456, and other revenue items, such as short-term sales in
Account 447, that are appropriately credited to the cost of service for
determinations of costs allocable to the wholesale services subject to
the changed rate. The utility shall include revenue credits proposed
for exclusive-use commitment of major power supply facilities according
to instructions for preparation of Statement BF under paragraph (h)(31)
of this section. When applicable, the utility shall state revenue taxes
for each revenue credit item. The utility shall explain the reasons for
inclusion of each item, and shall indicate the basis for assigning or
allocating each item to the wholesale services subject to the changed
rate and to the other electric utility services.
(22) Statement AV -- Rate of return. Statement AV is a statement and
explanation of the percentage rate of return requested by the utility.
The utility shall provide the complete capital structure, including
ratios, component costs and weighted component costs claimed by the
utility. The utility shall submit additional data where any component
of the capital of the utility is not primarily obtained through its own
financing, but is primarily obtained from a company by which the utility
is controlled, as defined in the Commission's Uniform System of
Accounts, 18 CFR part 101. The utility shall submit the additional
data, if required with respect to the debt capital, preferred stock
capital and common stock capital of such controlling company or any
intermediate company through which such funds have been secured.
(i) General. The utility shall show, based on the capitalization of
the utility, the cost of debt capital and preferred stock capital, the
claimed rate of return on the common equity of the utility and the
resulting overall rate of return requested.
(A) For Period I and, if applicable, Period II, the utility shall
show in tabular form the following:
(1) Cost of each capital element, including claimed rate of return on
equity capital;
(2) Capitalization amounts and ratios;
(3) Weighted cost of each capital element; and
(4) Overall claimed rate of return.
(B) When a Period II filing is submitted the utility shall provide:
(1) A full explanation of, and supporting work papers for, the pro
forma adjustments to the actual capitalization data to arrive at the
Period II capitalization; and
(2) The pro forma adjustment to Period I data to arrive at the Period
II amount for unappropriated undistributed subsidiary earnings in
Account 216.1.
(C) If not included elsewhere in the filing, the utility shall submit
the amount for Account 216.1 for Period I as part of this statement.
(ii) Debt capital. (A) The utility shall show the weighted cost for
all issues of long-term debt capital as of the end of Period I, as
expected on the date the changed rate is filed, and, if applicable, as
estimated for the end of Period II. The weighted cost is calculated by:
(1) Multiplying the cost of money for each issue under clause (B)(6)
below by the principal amount outstanding for each issue, which yields
the annualized cost for each issue; and (2) adding the annual cost of
each issue to obtain the total for all issues, which is divided by the
total principal amount outstanding for all issues to obtain the weighted
cost for all issues.
(B) The utility shall show the following for each class and series of
long-term debt outstanding as of the end of Period I, as expected on the
date the changed rate is filed, and, if applicable, as estimated to be
outstanding as of the end of Period II.
(1) Title;
(2) Date of offering and date of maturity;
(3) Interest rate;
(4) Principal amount of issue;
(5) Net proceeds to the utility;
(6) Cost of money, which is the yield to maturity at issuance based
on the interest rate and net proceeds to the utility determined by
reference to any generally accepted table of bond yields;
(7) Principal amount outstanding;
(8) Name and relationship of issuer and if the debt issue was issued
by an affiliate; and
(9) If the utility has acquired at a discount or premium some part of
the outstanding debt which could be used in meeting sinking fund
requirements, or for some other reason, the annual amortization of the
discount or premium for each issue of debt from the date of the
reacquisition over the remaining life of the debt being retired. The
utility shall show separately the total discount and premium to be
amortized, and the amortized amount applicable to Period I and, if
applicable, Period II.
(C) The utility shall show the before-tax interest coverage, for the
twelve months of Period I based on the indenture requirements. The
utility shall provide a copy of the work papers used to make the
calculations, with explanations appropriate to understand the
calculations.
(iii) Preferred stock and preference stock capital. (A) This
statement shall show the weighted cost for all issues of preferred and
preference stock capital as of the end of Period I, as expected on the
date the changed rate is filed, and, if applicable, as estimated for the
end of Period II. The weighted cost is calculated by: (1) Multiplying
the cost of money for each issue under clause (B)(9) by the par amount
outstanding for each issue, which yields the annualized cost for each
issue; and (2) adding the annual cost of each issue to obtain the total
for all issues, which is divided by the total par amount outstanding for
all issues to obtain the weighted cost for all issues.
(B) The statement shall show for each class and issue of preferred
and preference stock outstanding as of the end of Period I, as expected
on the date the changed rate is filed, and, if applicable, as estimated
to be outstanding as of the end of Period II:
(1) Title;
(2) Date of offering;
(3) If callable, call price;
(4) If convertible, terms of conversion;
(5) Dividend rate;
(6) Par or stated amount of issue;
(7) Net proceeds to the filing utility;
(8) Ratio of net proceeds to gross proceeds received by the filing
utility;
(9) Cost of money (dividend rate divided by the ratio of net proceeds
to gross proceeds for each issue);
(10) Par or stated amount outstanding; and
(11) If issue is owned by an affiliate, name and relationship of
owner.
(iv) Common stock capital. This statement shall show the following
information for each sale of common stock during the five-year period
preceding the date of the balance sheet for the end of Period I and for
each sale of common stock between the end of Period I and the date that
the changed rate is filed:
(A) Number of shares offered;
(B) Date of offering;
(C) Gross proceeds at offering price;
(D) Underwriters' commissions;
(E) Dividends per share;
(F) Net proceeds to company;
(G) Issuance expenses; and
(H) Whether issue was offered to stockholders through subscription
rights or to the public and whether common stock was issued for property
or for capital stock of others.
(v) Supplementary financial data. The utility shall submit a
statement indicating the sources and uses of funds for Period I and as
estimated for Period II and a copy of the utility's most recent annual
report to the stockholders. The utility shall also supply a prospectus
for its most recent issue of securities and a copy of the latest
prospectus issued by any subsidiary of the filing utility or by any
holding company of which the filing utility is a subsidiary.
(23) Statement AW -- Cost of short-term debt. In Statement AW, the
utility shall provide a statement of the cost of capital rate for
short-term debt of the utility as of the end of Period I, as expected on
the date the proposed rate is filed, and, if applicable, as estimated
for the end of Period II, with details supporting each stated cost. The
short-term debt rate shown in Statement AW shall include only the
short-term debt that appears on the income statement as interest expense
and shall not include nominal forms of financing, such as trust
agreements.
(24) Statement AX -- Other recent and pending rate changes.
Statement AX is a statement describing the extent to which operating
revenues are subject to refund for Period I and, if applicable, Period
II, for each rate change filed with any Federal, state, or other
regulatory body that has jurisidiction. The utility shall list and
submit any orders in which applications for a rate increase have been
acted on by any regulatory body during Period I, Period II, or the
interval between Period I and Period II, and a copy of each transmittal
letter or equivalent written document by which a utility summarized and
submitted any pending applications that have not been acted on.
Statement AX shall reflect information available at the time of
submittal under this paragraph.
(25) Statement AY -- Income and revenue tax rate data.
(i) Statement AY is a statement of tax rate data for Period I and
Period II arranged as follows:
(A) Nominal Federal income tax rate;
(B) Nominal state income tax rate;
(C) Proportion of Federal income taxes payable which is deductible
for state income tax purposes. If an allowable deduction is stated in
other terms, the utility shall provide an estimate of the effective
deduction as a percentage of Federal tax payable; and
(D) Revenue tax rate. If the revenue tax rate is scaled, the utility
shall show approximate weighted average rates for relevant revenue
levels and full supporting data.
(ii) If the utility serves in more than one jurisdiction for revenue
or state income tax purposes, the utility shall state the appropriate
tax rates for each wholesale customer group at issue and for all other
customers as a composite group. (See, Statement BA under paragraph
(h)(26) for wholesale customer grouping criteria.) If there are any
changes in tax rates that occur in Period I or that may occur in Period
II, the utility shall describe such changes and the effective date of
the changes.
(26) Statement BA -- Wholesale customer rate groups. (i) Statement
BA is a list of wholesale customers by group for the purpose of:
(A) Allocating the allowable costs of the utility to such customer
groups on the basis of electric utility services rendered; and
(B) Comparing proposed revenues from each customer group with the
cost of service as allocated to that group.
(ii) The utility shall limit the number of wholesale customer groups
listed to the minimum required under the following criteria:
(A) At least one customer group shall be specified for each separate
wholesale rate subject to the changed rate filing.
(B) In general, all customers proposed to be served on the same rate
shall be included in a common group. If the utility believes that there
are significant differences in services provided under the same rate,
the utility shall subdivide the common group served by the same rate
into separate customer groups characterized by the type of service
provided each group and shall demonstrate whether the common rate is
cost-based by means of cost-justification for each service group.
Certain customer groupings, such as cooperatives or municipals, may also
be utilized to facilitate purchaser evaluations of the changed rate.
(C) In all cases, the utility shall select customer groupings on a
basis consistent with rate design information provided in Statement BL
under paragraph (h)(37) of this section.
(iii) The utility shall enumerate all wholesale customer rate groups,
together with a brief descriptive title for each group. For example:
Group 1. Full Requirements Tariff
FR-1.
Group 2. Partial Requirements Tariff PR-1.
(27) Statement BB -- Allocation demand and capability data.
Statement BB is a statement of electric utility demand and capability
data for Period I and Period II to be considered as a basis for
allocating related costs to the wholesale services subject to the
changed rate.
(i) For each month of Period I and Period II, with an average for
each period, the utility shall show the maximum peak firm kilowatt
demand on the power supply system of the utility, and the kilowatt
demands of the wholesale services that coincide with the system monthly
maximum power supply demand, including for Period I the date and hour
for such coincidental peak demands. The utility shall state these
kilowatt demands in terms of 60-minute intervals or other intervals
adjusted to the equivalent of 60 minutes. The utility shall not include
in the data the demands associated with interruptible power supply
services, firm or nonfirm transmission wheeling services, or demands
associated with other services the revenues from which are shown as
revenue credits in Statement AU under paragraph (h)(21). The utility
shall provide wholesale service demand data as follows:
(A) The wholesale service data for each individual customer delivery
point or set of delivery points that constitutes an individual wholesale
customer billing unit shall include demands at delivery. The individual
customer wholesale service data shall be summarized and subtotaled in
accordance with Statement BA customer groupings.
(B) The data supplied for each wholesale customer group under clause
(A) shall be adjusted for losses to reflect demand at the power supply
level. The data shall be totaled to show total customer group demand at
power supply level for each month of Period I and Period II.
(ii) To the extent such data are available, the utility shall state
Period I and Period II monthly maximum demand data for interruptible
power supply services, firm wheeling services, and nonfirm wheeling
services. The utility shall also provide, to the extent data are
available, firm wheeling demand data for any of the 60-minute periods
that coincide with the times of power supply peak demands shown under
clause (i). The utility shall indicate the basis of all demands, such
as metered demands or contract demands, reported under this clause. For
interruptible services, the utility shall provide a description of the
conditions under which service may be interrupted or curtailed. The
utility shall include available information on actual interruptions or
curtailments during a three-year period that includes Period I. If any
of the wholesale rates at issue are for interruptible or curtailable
service, the utility shall provide any demand data specifically relevant
to such service.
(iii) If a utility establishes plant categories in Statement AD under
paragraph (h)(4) of this section for the purpose of supporting wholesale
rates for firm power supply services with special characteristics, such
as base load, intermediate, or peaking, the utility shall provide in
Statement BB the demand data required by clause (i) in total and in
separate corresponding demand values consistent with the service
characteristics. Corresponding values shall be stated for the system
demand of the utility, and for each applicable wholesale service group.
(iv) If a utility establishes plant categories in Statement AD under
paragraph (h)(4) of this section for the purpose of supporting wholesale
rates for nonfirm power supply services, such as capacity sales, the
utility shall include in Statement BB for each month of Period I and
Period II the monthly capability data relied on by the utility in
developing costs allocable to such rates, with an explanation of the
underlying cost allocation rationale.
(v) If a utility establishes production plant categories in Statement
AD under paragraph (h)(4) of this section for the purpose of supporting
wholesale rates based on specialized ratemaking theories such as
marginal cost pricing, time-of-day pricing, or base, intermediate, and
peaking characteristics, the utility shall include in Statement BB all
demand and capability data relied on by the utility in developing
support on a cost of service basis, with appropriate explanatory
material.
(vi) For each month of Period I and Period II, the utility shall
provide any additional demand data that the utility believes to be
relevant to the allocation of electric utility costs to the wholesale
services at issue. The utility shall fully support all such data and
shall explain the rationale and the specific application proposed.
(vii) Based upon information reported in Statements BB and BC, the
utility shall list selected months that are normally the months of
greatest significance in determining the need of the utility for power
supply capability throughout the year. All twelve months may be
selected, if appropriate. In its selection, the utility shall take into
account any effects of local weather seasons and, particularly, the
extent to which peak demands may tend to be similar in magnitude in two
or more months of a weather season. The utility shall explain the
reasons for the selections and describe the significance for the
selections of seasonal variations in the weather.
(28) Statement BC -- Reliability data. Statement BC is a statement
relating to reference standards of the filing utility for electric power
supply reliability, and to information designed to reflect monthly
availability of generating capacity reserves.
(i) For Period II, Period I, and each of the three calendar years
preceding Period I, the utility shall state and briefly explain its
objective reference standard of production power supply reliability and
the rationale underlying its choice of a reliability standard, including
whether it participates with other electric utilities in the selection
of a common standard on an area or pool basis. The utility shall
identify any such participating utilities, and provide a general
explanation of the basis upon which the reliability standard was jointly
developed.
(ii) The utility shall describe how its objective standard for
production power supply reliability affects its electric generating
facility construction planning and purchased power planning.
(iii) For the peak day of each month of Period II, Period I, and, to
the extent data are available, for the peak day of each month of the
three calendar years preceding Period I, the utility shall include
tabular schedules designed to show the following:
(A) Net peak load in megawatts, itemized to show:
(1) Gross peak firm load, including all firm sales assured available
by the reserve capacity of the utility;
(2) All firm purchases assured available by the reserve capacity of
the supplier; and
(3) Net peak load, computed as gross peak load under clause (1) minus
all firm purchases under clause (2).
(B) Net available dependable capacity, that is, the load-carrying
ability of the electric production facilities determined for the purpose
of scheduling capacity in day-to-day operations, provided in megawatts
and itemized to show:
(1) The owned dependable capacity of the utility for each production
plant category selected in Statement AD under paragraph (h)(4);
(2) Scheduled maintenance of owned dependable capacity of the
utility;
(3) Purchased dependable capacity of the utility;
(4) Scheduled maintenance of purchased dependable capacity of the
utility; and
(5) Net available dependable capacity, computed as the owned
dependable capacity under clause (1), minus scheduled maintenance of
owned capacity under clause (2), plus purchased dependable capacity
under clause (3), minus scheduled maintenance of purchased capacity
under clause (4).
(C) Available reserves in megawatts, which is the net available
dependable capacity under clause (iii)(B) minus net peak load under
clause (iii)(A).
(D) Available reserves as a percent of peak load, which is the
available reserves under clause (iii)(C) divided by net peak load under
clause (iii)(A).
(29) Statement BD -- Allocation energy and supporting data.
Statement BD is a statement of electric utility energy data for Period I
and Period II to be considered as bases for allocating related costs to
the wholesale services subject to the changed rate.
(i) For each month of Period I and Period II, and as totaled for the
twelve months of each period, the utility shall show the megawatt-hours
of firm power supply energy required by the system of the utility and
the magawatt-hour energy requirements of the wholesale customer groups
whose services will be subject to the changed rate. The wholesale
service data for each individual customer delivery point or set of
delivery points that constitutes an individual wholesale customer
billing unit shall include megawatt-hours at delivery. The utility
shall summarize and subtotal these individual customer data in
accordance with Statement BA customer groupings under paragraph (h)(26).
The utility shall show a loss adjustment for each wholesale customer
group to reflect energy at the power supply level. The utility shall
total the data to show total customer group energy requirements at power
supply level for each month of Period I and Period II.
(ii) Data provided under clause (i) shall not include energy
associated with interruptible or curtailable services, or energy
associated with other services, the revenues from which are shown as
revenue credits in Statement AU under paragraph (h)(21) of this section.
The utility shall separately state Period I and Period II monthly and
total energy data for any such services provided by the utility. If any
of the proposed wholesale rates at issue are for interruptible or
curtailable service, the utility shall provide descriptive material and
energy data specifically relevant to such services.
(iii) If a utility selects subfunctional categories in Statement AD
under paragraph (h)(4) of this section for the purpose of supporting any
changed wholesale rate for firm power supply services with special
characteristics, such as base load, intermediate, and peaking services,
the utility shall separate the energy data required by clause (i) into
corresponding energy values consistent with the service characteristics
and consistent with energy-related expense categories utilized in
Statement AH under paragraph (h)(8) of this section. The utility shall
state the corresponding values for the utility's system energy and for
each applicable wholesale service group.
(iv) If a utility establishes plant categories in Statement AD under
paragraph (h)(4) of this section for the purpose of supporting any
changed wholesale rate for nonfirm production services, or the changed
wholesale rate based on specialized ratemaking theories (see paragraph
(h)(27)(v) of this section), the utility shall include in Statement BD
all energy data relied on by the utility in developing the support on a
cost of service basis and relevant explanatory material. Energy data
provided under this clause shall be consistent with related expense
categories utilized in Statement AH under paragraph (h)(8) of this
section.
(v) For each month of Period I and Period II, and as totaled for the
twelve months of each period, the utility shall show the megawatt-hours
generated, itemized in accordance with Statement AD production
subfunctional categories, and the megawatt-hours purchased or
interchanged, itemized to show each type of transaction, such as firm
energy or economy interchanged energy. The utility shall quantitatively
reconcile such data with the system allocation energy reported in this
statement, and with energy data underlying the fuel and purchased power
expense reported in Statement AH.
(30) Statement BE -- Specific assignment data. (i) Statement BE is a
statement of specific components of the electric costs of service of the
utility for Period I and Period II. Statement BE costs of service are
those apportioned among wholesale services subject to the rate change
and other utility services, on a basis other than:
(A) Demand, capability, or energy data provided in Statements BB and
BD;
(B) A proportional relationship based on a selected plant category or
expense item for which an allocation to wholesale services is to be
independently determined; or
(C) Exclusive-use commitment in Statement BF under paragraph (h)(31)
of this section.
(ii) The utility shall include specific assignments considered
appropriate by the utility. Typical cost of service components that
could be specifically assigned are distribution plant (see examples
listed in Statement AD under paragraph (h)(4) of this section), certain
total electric wages and salaries provided in Statement AI under
paragraph (h)(9) of this section, such as wages and salaries for
customer accounting and for customer service and information, and
certain administrative and general expense items. (See examples listed
in Statement AH under paragraph (h)(8) of this section.)
(iii) The utility shall limit specific assignments to the minimum
required to adequately provide for costs not otherwise appropriately
allocable.
(iv) For each specific assignment, the utility shall include at least
the following information:
(A) Brief descriptive component title, such as distribution
substations or rate case expenses;
(B) Total electric amount in dollars;
(C) Wholesale customer group dollar amounts stated individually for
each wholesale customer rate group identified in Statement BA under
paragraph (h)(26), and stated in total for all such groups; and
(D) Explanation of the basis on which assignments were made,
accompanied by supporting detailed computations.
(31) Statement BF -- Exclusive-use commitments of major power supply
facilities. Statement BF is a statement describing and justifying the
commitment to exclusive-use for particular services of all or a stated
portion of electric utility generation units or plants, or major
transmission facilities.
(i) For Period I and Period II, the utility shall list each
transaction in which all or a stated portion of the output of a
specified filing utility-owned generating unit or group of units was
committed exclusively to a particular customer or group of customers, or
to a power pool or similar power supply entity. For each such
transaction, the utility shall provide the following information:
(A) Brief descriptive title for each commitment;
(B) Name of plant and unit designation;
(C) Name of the purchaser or power pool or other similar power supply
entity;
(D) Duration of the transaction;
(E) Basis of rates or charges, stated in terms of whether a
transaction reflects marginal, incremental, or fully distributed costs,
the specific overall and common equity rates of return included in
costs, provided on both a claimed and earned basis to the extent such
information is available, the approximate date of the cost analysis on
which the rates and charges were based, and any other considerations
significant to the transaction;
(F) Revenue received for each month of Period I and Period II or, if
applicable, monthly quantities of power and energy received or available
from power pools as consideration for commitment to a pool; and
(G) Proposed treatment in the cost of service determinations for the
wholesale services at issue. For example, a credit of revenue to the
total electric cost of service, in Statement AU under paragraph (h)(21),
could be proposed to account for unit capacity sales based upon
incremental capital costs. The utility shall include explanatory
material and support for the proposed procedures.
(ii) For Period I and Period II, the utility shall list each
transaction in which all, or a portion, of a major transmission facility
owned by the filing utility was committed exclusively to a particular
customer or group of customers. For each such transaction, the utility
shall provide information similar to that required by clause (i).
(32) Statement BG -- Revenue data to reflect changed rates.
Statement BG is a statement of revenues for Period I and Period II,
including those under the changed rate for the wholesale services at
issue.
(i) For each month of Period I and Period II, and in total for each
of the two periods, the utility shall show all billing determinants and
metered quantities for each delivery point or set of delivery points
that constitutes an individual wholesale customer billing unit, and the
result of applying each specific rate component to the billing
determinants for each billing unit stated with the total of the computed
monthly bill for the customer. If the rates include a fuel clause, the
utility shall compute and total the revenues under the fuel clause to
reflect fuel costs incurred during each month of Period I and Period II.
That is, the fuel clause revenues for the first month of Period I shall
reflect fuel costs incurred for that month, and so on for each month of
Period I and Period II. In computing fuel clause revenues, the utility
shall determine fuel cost according to 35.14 of this chapter.
(ii) If the form of the proposed fuel clause would produce revenues
different from those computed in accordance with clause (i), the utility
shall separately compute and state such fuel clause revenues for each
customer for each month of Period I and Period II.
(iii) The utility shall summarize separately revenue data computed in
accordance with clauses (i) and (ii) above for each month and in total
for Period I and Period II, in accordance with wholesale rate groups
specified in Statement BA under paragraph (h)(26) of this section. The
utility shall show total electric department revenues for each period to
include revenues under the changed rate for all such wholesale customer
rate groups.
(iv) For Period I and as estimated for Period II, the utility shall
summarize all billing determinants and revenues received from
interruptible or curtailable services. Billing determinants and revenue
data shall be consistent with interruptible demand and energy data in
Statements BB and BD. The utility shall include an explanation of the
extent to which interruptible or curtailable service revenues are or are
not included in revenue credits in Statement AU under paragraph (h)(21)
of this section.
(33) Statement BH -- Revenue data to reflect present rates.
Statement BH is a statement of revenues for Period I and Period II,
including those under present rates for wholesale services at issue, and
for total electric service to reflect such revenues for wholesale
services. The utility shall prepare this statement to include data
consistent with criteria specified for presentation of revenue under the
changed rate in Statement BG under paragraph (h)(32) of this section.
(34) Statement BI -- Fuel cost adjustment factors. Statement BI is a
statement of monthly fuel cost adjustment factors under the changed rate
and under the present rates, for Period I and Period II.
(i) If the changed rate schedule embodies a fuel cost adjustment
clause, the utility shall show detailed derivations of fuel cost
adjustment factors computed to reflect fuel cost incurred during each
month of Period I and Period II. Fuel cost adjustment factors are those
required for revenue determinations in accordance with paragraph
(h)(32)(i) of Statement BG.
(ii) If additional proposed fuel clause revenue data are reported in
accordance with paragraph (h)(32)(ii) of Statement BG, the utility shall
show detailed derivation of applicable monthly fuel adjustment factors.
(iii) If the present rate includes a fuel cost adjustment change, the
utility shall show detailed derivations of fuel cost adjustment factors
for each month of Period I and Period II. The utility shall include in
Statement BI derivations for all monthly factors required in the
computation of present fuel clause revenues reported in Statement BH.
The utility shall provide an explanation of the differences between the
present and proposed fuel clauses.
(iv) All fuel cost adjustment factors shall be cost-based. The
utility shall make a computational showing that shall develop adjustment
factors in a manner consistent with the requirements of 35.14 of this
chapter. The utility shall provide supporting detail on cost by type of
fuel, and shall show separately the allowable fuel clause cost component
of purchased or interchanged energy. All fuel cost data shall be
consistent with that included in operation and maintenance expenses in
Statement AH under paragraph (h)(8) of this section.
(35) Statement BJ -- Summary data tables. Statement BJ is a tabular
summary of portions of Period I and Period II data from specific cost of
service statements in this paragraph. The utility shall summarize under
descriptive titles the Period I and Period II data from the cost of
service provisions listed in this subparagraph. The utility shall
supply the data in the manner described for each cost of service
statement and in this subparagraph.
(i) If a utility provides in Statement BK information that is
substantially equivalent to the information required in this statement,
the utility may fulfill the requirements of this statement by
specifically referring to the location in Statement BK of the
information required in this subparagraph.
(ii) The utility shall provide the information in the following
statements as average total electric department monthly balances for
each function and subfunction of plant:
(A) Statement AD -- (h)(4)(i) and (ii);
(B) Statement AE -- (h)(5)(i) and (ii);
(C) Statement AF -- (h)(6)(i) through (v);
(D) Statement AG -- (h)(7)(i) through (vi);
(E) Statement AL -- (h)(12)(i) and (ii);
(F) Statement AM -- (h)(13); and
(G) Statement AN -- (h)(14).
(iii) The utility shall provide the information in the following
statements as total electric department annual revenue and expense
amounts:
(A) Statement AH -- (h)(8)(i), (iv) and (v);
(B) Statement AI -- (h)(9)(i) and (ii);
(C) Statement AJ -- (h)(10)(i);
(D) Statement AK -- (h)(11)(i);
(E) Statement AP -- (h)(16)(i) through (iv);
(F) Statement AQ -- (h)(17)(i) through (iii);
(G) Statement AR -- (h)(18)(i) through (iv);
(H) Statement AS -- (h)(19);
(I) Statement AT -- (h)(20); and
(J) Statement AU -- (h)(21).
(iv) The utility shall provide all cost of capital amounts in the
following statements.
(A) Statement AV -- (h)(22)(i)(A); and
(B) Statement AW -- (h)(23);
(v) The utility shall provide all tax rate data in Statement AY,
paragraph (h)(25)(i) of this section.
(vi) The utility shall provide the information in the following
statements as appropriate, for total electric department values and
individual customer group values:
(A) Statement BB -- (h)(27)(i) through (vi);
(B) Statement BD -- (h)(29)(i) through (iv);
(C) Statement BE -- (h)(30)(iv) (A), (B), and (C);
(D) Statement BG -- (h)(32)(iii); and
(E) Statement BH -- (h)(33).
(36) Statement BK -- Electric utility department cost of service,
total and as allocated. Statement BK is a statement of the claimed
fully allocated cost of service of the utility developed and shown for
Period I and Period II. The utility shall include analytical support
for each rate proposed to be differentiated on a time-of-use basis. The
utility shall also provide any marginal or incremental cost information
that is required to support the changed rate developed on a marginal or
incremental cost basis. The utility shall show allocations of fully
distributed costs to the wholesale services subject to the changed rate
accompanied by a comparison of allocated costs with revenues under the
changed rate. Nothing in this subparagraph shall preclude use by any
utility of any cost of service technique it believes reasonable and that
is consistent with the requirements of paragraph (g) of this section.
(i) The utility shall base the fully distributed cost of service and
the allocations thereof upon data provided in the accompanying detailed
statements required under this section and additional data which the
utility may submit and support in connection with this statement. The
cost of service data of the utility shall conform to the following
requirements:
(A) The total electric rate base and cost of service shall be
itemized and summarized by major functions and in a format designed to
facilitate review and analysis.
(B) Based on the total electric rate base and cost of service, and on
allocated or assigned component elements, the cost of service for each
Statement BA wholesale customer rate group under paragraph (h)(26) shall
be itemized and summarized by major functions in a format consistent
with that shown for total electric.
(C) The costs of service data for total electric and for each of the
wholesale customer groups shall include data that show the return and
the income taxes by components and in total, based upon the rate of
return claimed by the utility in Statement AV under paragraph (h)(22).
Individual components of income taxes shall include income taxes
payable, provision for deferred income tax -- debits and deferred income
tax -- credits, investment tax credits, or other adjustments.
(D) The fully distributed cost of service study of the utility shall
disclose the principal determinants for allocation of total electric
costs among the wholesale customer groups, including but not limited to
the following:
(1) Computations showing the energy responsibilities of the wholesale
services, with supporting detail;
(2) Computations showing the demand responsibilities of the wholesale
services, with supporting detail; and
(3) Computations showing the specific assignment responsibilities of
the wholesale services, with supporting detail.
(ii) For the total electric service and for each wholesale customer
rate group, the utility shall compare the fully distributed cost of
service with the revenues under the changed rate. Based on the
comparison, the utility shall show the revenue excess or deficiency and
the earned rate of return computed for the total electric service and
for each wholesale customer rate group.
(iii) For any filing that contains Period II data, the utility shall
supply any work papers and additional explanatory material necessary to
support Statement BK, indexed, referenced and paginated as provided in
paragraph (d)(5) of this section.
(iv) The utility shall provide a tabular comparison of Period II
total electric fully distributed cost items with those of Period I. The
comparisons shall show item amounts for each of the two periods, and
also shall show Period II item amounts as percentages of equivalent
items for Period I. Comparisons shall include at least the following
items, accompanied by explanatory notes with respect to significant
variations among the comparative percentages:
(A) Rate base;
(B) Production expenses;
(C) Transmission expenses;
(D) Customer accounting, customer service and information, and sales
expenses;
(E) Depreciation expenses;
(F) Taxes except income and revenue;
(G) Income taxes;
(H) Revenue taxes; and
(I) Return claimed.
(37) Statement BL -- Rate design information. In support of the
design of the changed rate, the utility shall submit the following
material:
(i) A narrative statement describing and justifying the objectives of
the design of the changed rate. If the purpose of the rate design is to
reflect costs, the utility shall state how that objective is achieved,
and shall accompany it with a summary cost analysis that would justify
the rate design, including any discounts or surcharges based on delivery
voltage level or other specific considerations. Such summary cost
analysis shall be consistent with, derived from, and cross-referenced to
the data in cost of service Statement BK. If the rate design is not
intended to reflect costs, whether fully distributed, marginal,
incremental, or other, the utility shall provide a statement to justify
the departure from cost-based rates.
(ii) If the billing determinants, such as quantities of demand,
energy, or delivery points, are on different bases than the cost
allocation determinants supporting such charges, the utility shall
submit an explanation setting forth the economic or other considerations
that warrant such departure. The information shall include at least the
following:
(A) If the individual rate for the demand, energy and customer
charges do not correspond to the comparable cost classifications
supporting such charges, a detailed explanation stating the reasons for
the differences.
(B) If the changed rate contains more than one demand or energy
block, a detailed explanation indicating the rationale for the blocking
and the considerations upon which such blocking is based, including
adequate cost support for the specified blocking.
(38) Statement BM -- Construction program statement. Statement BM is
a summary of data and supporting assumptions relating to the economics
of any construction program to replace or expand the utility's power
supply that shall be filed if the utility is filing for construction
work in progress in rate base under 35.26(c)(3) of this chapter. The
filing utility shall describe generally its program for providing
reliable and economic power for the period beginning with the date of
the filing and ending with the tenth year after the test period. The
statement shall include an assessment of the relative costs of adopting
alternative strategies including an analysis of alternative production
plant, e.g., cogeneration, small power production, heightened load
management and conservation efforts, additions to transmission plant or
increased purchases of power, and an explanation of why the program
adopted is prudent and consistent with a least-cost energy supply
program.
(Federal Power Act, 16 U.S.C. 791-828c; Dept. of Energy Organization
Act, 42 U.S.C. 7101-7352; E.O. 12009, 42 FR 46267, 3 CFR 142 (1978);
Pub. L. 96-511, 94 Stat. 2812 (44 U.S.C. 3501 et seq.))
(Order 91, 45 FR 46363, July 10, 1980, as amended at 47 FR 6826, Feb.
17, 1982; Order 225, 47 FR 19056, May 3, 1982; Order 298, 48 FR 24354,
June 1, 1983; 51 FR 7782, Mar. 6, 1986; Order 475, 52 FR 24993, July
2, 1987; Order 545, 57 FR 53990, Nov. 16, 1992)
18 CFR 35.13 Subpart C -- Other Filing Requirements
18 CFR 35.14 Fuel cost and purchased economic power adjustment clauses.
(a) Fuel adjustment clauses which are not in conformity with the
principles set out below are not in the public interest. These
regulations contemplate that the filing of proposed rate schedules which
embody fuel clauses failing to conform to the following principles may
result in suspension of those parts of such rate schedules:
(1) The fuel clause shall be of the form that provides for periodic
adjustments per kWh of sales equal to the difference between the fuel
and purchased economic power costs per kWh of sales in the base period
and in the current period:
Adjustment Factor =Fm/Sm-Fb/Sb
Where: F is the expense of fossil and nuclear fuel and purchased
economic power in the base (b) and current (m) periods; and S is the
kWh sales in the base and current periods, all as defined below.
(2) Fuel and purchased economic power costs (F) shall be the cost of:
(i) Fossil and nuclear fuel consumed in the utility's own plants, and
the utility's share of fossil and nuclear fuel consumed in jointly owned
or leased plants.
(ii) The actual identifiable fossil and nuclear fuel costs associated
with energy purchased for reasons other than identified in paragraph
(a)(2)(iii) of this section.
(iii) The total cost of the purchase of economic power, as defined in
paragraph (a)(11) of this section, if the reserve capacity of the buyer
is adequate independent of all other purchases where non-fuel charges
are included in either Fb or Fm;
(iv) Energy charges for any purchase if the total amount of energy
charges incurred for the purchase is less than the buyer's total avoided
variable cost;
(v) And less the cost of fossil and nuclear fuel recovered through
all inter-system sales.
(3) Sales (S) must be all kWh's sold, excluding inter-system sales.
Where for any reason, billed system sales cannot be coordinated with
fuel costs for the billing period, sales may be equated to the sum of:
(i) Generation, (ii) purchases, (iii) exchange received, less (iv)
energy associated with pumped storage operations, less (v) inter-system
sales referred to in paragraph (a)(2)(iv) of this section, less (vi)
total system losses.
(4) The adjustment factor developed according to this procedure shall
be modified to properly allow for losses (estimated if necessary)
associated only with wholesale sales for resale.
(5) The adjustment factor developed according to this procedure may
be further modified to allow the recovery of gross receipts and other
similar revenue based tax charges occasioned by the fuel adjustment
revenues.
(6) The cost of fossil fuel shall include no items other than those
listed in Account 151 of the Commission's Uniform System of Accounts for
Public Utilities and Licensees. The cost of nuclear fuel shall be that
as shown in Account 518, except that if Account 518 also contains any
expense for fossil fuel which has already been included in the cost of
fossil fuel, it shall be deducted from this account. (Paragraph C of
Account 518 includes the cost of other fuels used for ancillary steam
facilities.)
(7) Where the cost of fuel includes fuel from company-owned or
controlled1036 sources, that fact shall be noted and described as part
of any filing. Where the utility purchases fuel from a company-owned or
controlled source, the price of which is subject to the jurisdiction of
a regulatory body, such cost shall be deemed to be reasonable and
includable in the adjustment clause. If the current price, however, is
in litigation and is being collected subject to refund, the utility
shall so advise the Commission and shall keep a separate account of such
amounts paid which are subject to refund, and shall advise the
Commission of the final disposition of such matter by the regulatory
body having jurisdiction. With respect to the price of fuel purchases
from company-owned or controlled sources pursuant to contracts which are
not subject to regulatory authority, the utility company shall file such
contracts and amendments thereto with the Commission for its acceptance
at the time it files its fuel clause or modification thereof. Any
subsequent amendment to such contracts shall likewise be filed with the
Commission as a rate schedule change and may be subject to suspension
under section 205 of the Federal Power Act. Fuel charges by affiliated
companies which do not appear to be reasonable may result in the
suspension of the fuel adjustment clause or cause an investigation
thereof to be made by the Commission on its own motion under section 206
of the Federal Power Act.
(8) All rate filings which contain a proposed new fuel clause or a
change in an existing fuel clause shall conform such clauses with the
regulations. Within one year of the effectiveness of this rulemaking,
all public utilities with rate schedules that contain a fuel clause
should conform such clauses with the regulations. Recognizing that
individual public utilities may have special operating characteristics
that may warrant granting temporary delays in the implementation of the
regulations, the Commission may, upon showing of good cause, waive the
requirements of this section of the regulations for an additional
one-year period so as to permit the public utilities sufficient time to
adjust to the requirements.
(9) All rate filings containing a proposed new fuel clause or change
in an existing fuel clause shall include:
(i) A description of the fuel clause with detailed cost support for
the base cost of fuel and purchased economic power or energy.
(ii) Full cost of service data unless the utility has had the rate
approved by the Commission within a year, provided that such cost of
service may not be required when an existing fuel cost adjustment clause
is being modified to conform to the Commission's regulations.
(10) Whenever particular circumstances prevent the use of the
standards provided for herein, or the use thereof would result in an
undue burden, the Commission may, upon application under 385.207 of
this chapter and for good cause shown, permit deviation from these
regulations.
(11) For the purpose of paragraph (a)(2)(iii) of this section, the
following definitions apply:
(i) Economic power is power or energy purchased over a period of
twelve months or less where the total cost of the purchase is less than
the buyer's total avoided variable cost.
(ii) Total cost of the purchase is all charges incurred in buying
economic power and having such power delivered to the buyer's system.
The total cost includes, but is not limited to, capacity or reservation
charges, energy charges, adders, and any transmission or wheeling
charges associated with the purchase.
(iii) Total avoided variable cost is all identified and documented
variable costs that would have been incurred by the buyer had a
particular purchase not been made. Such costs include, but are not
limited to, those associated with fuel, start-up, shut-down or any
purchases that would have been made in lieu of the purchase made.
(12) For the purpose of paragraph (a)(2)(iii) of this section, the
following procedures and instructions apply:
(i) A utility proposing to include purchase charges other than those
for fuel or energy in fuel and purchased economic power costs (F) under
paragraph (a)(2)(iii) of this section shall amend its fuel cost
adjustment clause so that it is consistent with paragraphs (a)(1) and
(a)(2)(iii) of this section. Such amendment shall state the system
reserve capacity criteria by which the system operator decides whether a
reliability purchase is required. Where the utility filing the
statement is required by a State or local regulatory body (including a
plant site licensing board) to file a capacity criteria statement with
that body, the system reserve capacity criteria in the statement filed
with the Commission shall be identical to those contained in the
statement filed with the State or local regulatory body. Any utility
that changes its reserve capacity criteria shall, within 45 days of such
change, file an amended fuel cost and purchased economic power
adjustment clause to incorporate the new criteria.
(ii) Reserve capacity shall be deemed adequate if, at the time a
purchase was initiated, the buyer's system reserve capacity criteria
were projected to be satisfied for the duration of the purchase without
the purchase at issue.
(iii) The total cost of the purchase must be projected to be less
than total avoided variable cost, at the time a purchase was initiated,
before any non-fuel purchase charge may be included in Fm.
(iv) The purchasing utility shall make a credit to Fm after a
purchase terminates if the total cost of the purchase exceeds the total
avoided variable cost. The amount of the credit shall be the difference
between the total cost of the purchase and the total avoided variable
cost. This credit shall be made in the first adjustment period after
the end of the purchase. If a utility fails to make the credit in the
first adjustment period after the end of the purchase, it shall, when
making the credit, also include in Fm interest on the amount of the
credit. Interest shall be calculated at the rate required by
35.19a(a)(2)(iii) of this chapter, and shall accrue from the date the
credit should have been made under this paragraph until the date the
credit is made.
(v) If a purchase is made of more capacity than is needed to satisfy
the buyer's system reserve capacity criteria because the total costs of
the extra capacity and associated energy are less than the buyer's total
avoided variable costs for the duration of the purchase, the charges
associated with the non-reliability portion of the purchase may be
included in F.
(Approved by the Office of Management and Budget under control number
1902-0096)
(Federal Power Act, 16 U.S.C. 824d, 824e and 825h (1976 & Supp. IV
1980); Department of Energy Organization Act, 42 U.S.C. 7171, 7172 and
7173(c) (Supp. IV 1980); E.O. 12009, 3 CFR part 142 (1978); 5 U.S.C.
553 (1976))
(Order 271, 28 FR 10573, Oct. 2, 1963, as amended by Order 421, 36 FR
3047, Feb. 17, 1971; 39 FR 40583, Nov. 19, 1974; Order 225, 47 FR
19056, May 3, 1982; Order 352, 48 FR 55436, Dec. 13, 1983; 49 FR 5073,
Feb. 10, 1984; Order 529, 55 FR 47321, Nov. 13, 1990)
0361As defined in the Commission's Uniform System of Accounts 18 CFR
part 101, Definitions 5B.
18 CFR 35.15 Notices of cancellation or termination.
When a rate schedule or part thereof required to be on file with the
Commission is proposed to be cancelled or is to terminate by its own
terms and no new rate schedule or part thereof is to be filed in its
place, each party required to file the schedule shall notify the
Commission of the proposed cancellation or termination on the form
indicated in 131.53 of this chapter at least sixty days but not more
than one hundred-twenty days prior to the date such cancellation or
termination is proposed to take effect. A copy of such notice to the
Commission shall be duly posted. With such notice each filing party
shall submit a statement giving the reasons for the proposed
cancellation or termination, and a list of the affected purchasers to
whom the notice has been mailed. For good cause shown, the Commission
may by order provide that the notice of cancellation or termination
shall be effective as of a date prior to the date of filing or prior to
the date the filing would become effective in accordance with these
rules.
(Order 271, 28 FR 10573, Oct. 2, 1963, as amended by Order 39, 44 FR
46454, Aug. 8, 1979)
18 CFR 35.16 Notice of succession.
Whenever the name of a public utility is changed, or its operating
control is transferred to another public utility in whole or in part, or
a receiver or trustee is appointed to operate any public utility, the
exact name of the public utility, receiver, or trustee which will
operate the property thereafter shall be filed within 30 days thereafter
with the Commission on the form indicated in 131.51 of this chapter.
18 CFR 35.17 Changes relating to suspended rate schedules or parts
thereof. 4037
(a) Withdrawal of suspended rate schedules or parts thereof. Where a
rate schedule or part thereof has been suspended by the Commission, it
may be withdrawn during the period of suspension only by special
permission of the Commission granted upon application therefor and for
good cause shown. If permitted to be withdrawn, any such rate schedule
may be refiled with the Commission within a one-year period thereafter
only with special permission of the Commission for good cause shown.
(b) Changes in suspended rate schedules or parts thereof. A public
utility may not, within the period of suspension, file any change in a
rate schedule or part thereof which has been suspended by order of the
Commission except by special permission of the Commission granted upon
application therefor and for good cause shown.
(c) Changes in rate schedules or parts thereof continued in effect
and which were proposed to be changed by the suspended filing. A public
utility may not, within the period of suspension, file any change in a
rate schedule or part thereof continued in effect by operation of an
order of suspension and which was proposed to be changed by the
suspended filing, except by special permission of the Commission granted
upon application therefor and for good cause shown.
0374See General Policy and Interpretations, 2.4, of this chapter.
18 CFR 35.18 Rates established by order of the Commission.
Every rate schedule filed to make effective the rates, charges,
classifications or services, or any rule, regulation, practice or
contract relating thereto, established in conformity with an order of
the Commission shall bear the following additional notation on the title
page:
Filed in Compliance with an Order of the Federal Energy Regulatory
Commission Docket No. ------ Entered ------ Day of ------ .
(Order 271, 28 FR 10573, Oct. 2, 1963, as amended by Order 541, 57 FR
21734, May 22, 1992)
18 CFR 35.19 Submission of information by reference.
If all or any portion of the information called for in this part has
already been submitted to the Commission, substantially in the form
prescribed above, specific reference thereto may be made in lieu of
re-submission in response to the requirements of this part.
18 CFR 35.19a Refund requirements under suspension orders.
(a) Refunds. (1) The public utility whose proposed increased rates
or charges were suspended shall refund at such time in such amounts and
in such manner as required by final order of the Commission the portion
of any increased rates or charges found by the Commission in that
suspension proceeding not to be justified, together with interest as
required in paragraph (a)(2) of this section.
(2) Interest shall be computed from the date of collection until the
date refunds are made as follows:
(i) At a rate of seven percent simple interest per annum on all
excessive rates or charges held prior to October 10, 1974;
(ii) At a rate of nine percent simple interest per annum on all
excessive rates or charges held between October 10, 1974, and September
30, 1979; and
(iii)(A) At an average prime rate for each calendar quarter on all
excessive rates or charges held (including all interest applicable to
such rates or charges) on or after October 1, 1979. The applicable
average prime rate for each calendar quarter shall be the arithmetic
mean, to the nearest one-hundredth of one percent, of the prime rate
values published in the Federal Reserve Bulletin, or in the Federal
Reserve's ''Selected Interest Rates'' (Statistical Release G. 13), for
the fourth, third, and second months preceeding the first month of the
calendar quarter.
(B) The interest required to be paid under clause (iii)(A) shall be
compounded quarterly.
(3) Any public utility required to make refunds pursuant to this
section shall bear all costs of such refunding.
(b) Reports. Any public utility whose proposed increased rates or
charges were suspended and have gone into effect pending final order of
the Commission pursuant to section 205(e) of the Federal Power Act shall
keep accurate account of all amounts received under the increased rates
or charges which became effective after the suspension period, for each
billing period, specifiying by whom and in whose behalf such amounts are
paid.
(44 FR 53503, Sept. 14, 1979, as amended at 45 FR 3889, Jan. 21,
1980; Order 545, 57 FR 53990, Nov. 16, 1992)
18 CFR 35.21 Applicability to licensees and others subject to section
19 or 20 of the Federal Power Act.
Upon further order of this Commission issued upon its own motion or
upon complaint or request by any person or State within the meaning of
sections 19 or 20 of the Federal Power Act, the provisions of 35.1
through 35.19 shall be operative as to any licensee or others who are
subject to this Commission's jurisdiction in respect to services and the
rates and charges of payment therefor by reason of the requirements of
sections 19 or 20 of the Federal Power Act. The requirement of this
section for compliance with the provisions of 35.1 through 35.19 shall
be in addition to and independent of any obligation for compliance with
those regulations by reason of the provisions of sections 205 and 206 of
the Federal Power Act. For purposes of applying this section Electric
Service as otherwise defined in 35.2(a) shall mean: Services to
customers or consumers of power within the meaning of sections 19 or 20
of the Federal Power Act which may be comprised of various classes of
capacity and energy and/or transmission services subject to the
jurisdiction of this Commission. Electric Service shall include the
utilization of facilities owned or operated by any licensee or others to
effect any of the foregoing sales or services whether by leasing or
other arrangements. As defined herein Electric Service is without
regard to the form of payment or compensation for the sales or services
rendered, whether by purchase and sale, interchange, exchange, wheeling
charge, facilities charge, rental or otherwise. For purposes of
applying this section, Rate Schedule as otherwise defined in 35.2(b)
shall mean: A statement of
(1) Electric service as defined in this 35.21,
(2) Rates and charges for or in connection with that service, and
(3) All classifications, practices, rules, regulations, or contracts
which in any manner affect or relate to the aforementioned service,
rates and charges. This statement shall be in writing and may take the
physical form of a contractual document, purchase or sale agreement,
lease of facilities, tariff5038 or other writing. Any oral agreement or
understanding forming a part of such statement shall be reduced to
writing and made a part thereof.
0385See footnote 1 to 35.2.
18 CFR 35.22 Limits for percentage adders in rates for transmission
services; revision of rate schedules.
(a) Applicability. This section applies to all electric rate
schedules required to be filed under this part that are used for
transactions in which the utility or system performs a transmission or
purchase and resale function.
(b) Definition. For purposes of this section, purchased power price
means the amount paid by a utility or system that performs a
transmission or purchase and resale function for electric power
generated by another utility or system.
(c) General rule. (1) If a utility or system uses a rate component
that recovers revenues computed wholly or in part as a percentage of the
purchased power price, the utility or system shall establish a limit on
the revenues recovered by such rate component in any transaction, in
accordance with paragraph (d) of this section.
(2) The limit established under this paragraph shall be stated in
mills per kilowatt-hour.
(d) Cost support information. (1) A utility or system shall submit
cost support information to justify any revenue limit established under
paragraph (c) of this section, except as provided in paragraph (e) of
this section.
(2) The information submitted under this section shall consist of
those costs, other than the purchased power price, incurred by a utility
or system as a result of a transmission or purchase and resale
transaction, which costs are not recovered under any other rate
component.
(e) Exception. A utility or system need not submit the cost support
information required under paragraph (d) of this section if the limit
established under paragraph (c) of this section is not more than one
mill per kilowatt-hour.
(f) Revision of rate schedules. Every utility or system shall:
(1) Amend any rate schedule or tariff to indicate any limit
established pursuant to this section, not later than 60 days after the
effective date of this rule; and
(2) Hereafter conform any rate or rate change filed under this part
to the requirements of this section.
(Federal Power Act, as amended, 16 U.S.C. 792-828c; Department of
Energy Organization Act, 42 U.S.C. 7101-7352; E.O. 12009, 3 CFR 142
(1978))
(Order 84, 45 FR 31300, May 13, 1980. Redesignated by Order 545, 57
FR 53990, Nov. 16, 1992)
35.23 (Reserved)
18 CFR 35.24 Tax normalization for public utilities.
(a) Applicability. (1) Except as provided in subparagraph (2) of
this paragraph, this section applies, with respect to rate schedules
filed under 35.12 and 35.13 of this part, to the ratemaking treatment
of the tax effects of all transactions for which there are timing
differences.
(2) This section does not apply to the following timing differences:
(i) Differences that result from the use of accelerated depreciation;
(ii) Differences that result from the use of Class Life Asset
Depreciation Range (ADR) provisions of the Internal Revenue Code;
(iii) Differences that result from the use of accelerated
amortization provisions on certified defense and pollution control
facilities;
(iv) Differences that arise from recognition of extraordinary
property losses as a current expense for tax purposes but as a deferred
and amortized expense for book purposes;
(v) Differences that arise from recognition of research, development,
and demonstration expenditures as a current expense for tax purposes but
as a deferred and amortized expense for book purposes;
(vi) Differences that result from different tax and book reporting of
deferred gains or losses from disposition of utility plant;
(vii) Differences that result from the use of the Asset Guideline
Class ''Repair Allowance'' provision of the Internal Revenue Code;
(viii) Differences that result from recognition of purchased gas
costs as a current expense for tax purposes but as a deferred expense
for book purposes.
(See Order 13, issued October 18, 1978; Order 203, issued May 29,
1958; Order 204, issued May 29, 1958; Order 404, issued May 15, 1970;
Order 408, issued August 26, 1970; Order 432, issued April 23, 1971;
Order 504, issued February 11, 1974; Order 505, issued February 11,
1974; Order 566, issued June 3, 1977; Opinion 578, issued June 3,
1970; and Opinion 801, issued May 31, 1977.)
(b) General rules -- (1) Tax normalization required. (i) A public
utility must compute the income tax component of its cost of service by
using tax normalization for all transactions to which this section
applies.
(ii) Except as provided in paragraph (c) of this section, application
of tax normalization by a public utility under this section to compute
the income tax component will not be subject to case-by-case
adjudication.
(2) Reduction of, and addition to, rate base. (i) The rate base of a
public utility using tax normalization under this section must be
reduced by the balances that are properly recordable in Account 281,
''Accumulated deferred income taxes-accelerated amortization property;''
Account 282, ''Accumulated deferred income taxes -- other property;''
and Account 283, ''Accumulated deferred income taxes -- other.''
Balances that are properly recordable in Account 190, ''Accumulated
deferred income taxes,'' must be treated as an addition to rate base.
(ii) Such rate base reductions or additions must be limited to
deferred taxes related to rate base, construction or other
jurisdictional activities.
(iii) If a public utility uses an approved purchased gas adjustment
clause or a research, development and demonstration tracking clause, the
rate base reductions or additions required under this subparagraph must
apply only to the extent that the balances in Account 190 and Accounts
281 through 283 are not used, for purposes of calculating carrying
charges, as an offset to balances properly recordable in Account 188,
''Research development and demonstration expenditures,'' or Account 191,
''Unrecovered purchased gas costs.''
(c) Special rules. (1) This paragraph applies:
(i) If the public utility has not provided deferred taxes in the same
amount that would have accrued had tax normalization been applied for
the tax effects of timing difference transactions originating at any
time prior to the test period; or
(ii) If, as a result of changes in tax rates, the accumulated
provision for deferred taxes becomes deficient in or in excess of
amounts necessary to meet future tax liabilities as determined by
application of the current tax rate to all timing difference
transactions originating in the test period and prior to the test
period.
(2) The public utility must compute the income tax component in its
cost of service by making provision for any excess or deficiency in
deferred taxes described in subparagraphs (1)(i) or (1)(ii) of this
paragraph.
(3) The public utility must apply a Commission-approved ratemaking
method made specifically applicable to the public utility for
determining the cost of service provision described in subparagraph (2)
of this paragraph. If no Commission-approved ratemaking method has been
made specifically applicable to the public utility, then the public
utility must use some ratemaking method for making such provision, and
the appropriateness of this method will be subject to case-by-case
determination.
(d) Definitions. For purposes of this section, the term:
(1) Tax normalization means computing the income tax component as if
the amounts of timing difference transactions recognized in each period
for ratemaking purposes were also recognized in the same amount in each
such period for income tax purposes.
(2) Timing differences means differences between amounts of expenses
or revenues recognized for income tax purposes and amounts of expenses
or revenues recognized for ratemaking purposes, which differences arise
in one time period and reverse in one or more other time periods so that
the total amounts of expenses or revenues recognized for income tax
purposes and for ratemaking purposes are equal.
(3) Commission-approved ratemaking method means a ratemaking method
approved by the Commission in a final decision including approval of a
settlement agreement containing a ratemaking method only if such
settlement agreement applies that method beyond the effective term of
the settlement agreement.
(4) Income tax purposes means for the purpose of computing income tax
under the provisions of the Internal Revenue Code or the income tax
provisions of the laws of a State or political subdivision of a State
(including franchise taxes).
(5) Income tax component means that part of the cost of service that
covers income tax expenses allowable by the Commission.
(6) Ratemaking purposes means for the purpose of fixing, modifying,
approving, disapproving or rejecting rates under the Federal Power Act
or the Natural Gas Act.
(7) Tax effect means the tax reduction or addition associated with a
specific expense or revenue transaction.
(8) Transaction means an activity or event that gives rise to an
accounting entry that is used in determining revenues or expenses.
(46 FR 26636, May 14, 1981. Redesignated and amended by Order 144-A,
47 FR 8342, Feb. 26, 1982; Redesignated by Order 545, 57 FR 53990, Nov.
16, 1992)
18 CFR 35.25 Construction work in progress.
(a) Applicability. This section applies to any rate schedule filed
under this part by any public utility as defined in subsection 201(e) of
the Federal Power Act.
(b) Definitions. For purposes of this section:
(1) Constuction work in progress or CWIP means any expenditure for
public utility plant in process of construction that is properly
included in Accounts 107 (construction work in progress) and 120.1
(nuclear fuel in process of refinement, conversion, enrichment, and
fabrication) of part 101 of this chapter, the Uniform System of Accounts
Prescribed for Public Utilities and Licensees Subject to the Provisions
of the Federal Power Act (Major and Nonmajor), that would otherwise be
eligible for allowance for funds used during construction (AFUDC)
treatment.
(2) Double whammy means a situation which may arise when a wholesale
electric rate customer embarks upon its own or participates in a
construction program to supply itself with all or a portion of its
future power needs, thereby reducing its future dependence on the CWIP
of the rate applicant, but is simultaneously forced to pay to the CWIP
public utility rate applicant the CWIP portion of the wholesale rates
that reflects existing levels of service or a different anticipated
service level.
(3) Fuel conversion facility means any addition to public utility
plant that enables a natural gas-burning plant to convert to the use of
other fuels, or that enables an oil-burning plant to convert to the use
of other fuels, other than natural gas. Such facilities include those
that alter internal plant workings, such as oil or coal burners, soot
blowers, bottom ash removal systems and concomitant air pollution
control facilities, and any facility needed for receiving and storing
the fuel to which the plant is being converted, which facility would not
be necessary if the plant continued to burn gas or oil.
(4) Pollution control facility means an identifiable structure or
portions of a structure that is designed to reduce the amount of
pollution produced by the power plant, but does not include any facility
that reduces pollution by substituting a different method of generation
or that generates the additional power necessitated by the operation of
a pollution control facility.
(c) General rule. For purposes of any initial rate schedule or any
rate schedule change filed under 35.12 or 35.13 of this part, a public
utility may include in its rate base any costs of construction work in
progress (CWIP), including allowance for funds used during construction
(AFUDC), as provided in this section.
(1) Pollution control facilities. -- (i) General rule. Any CWIP for
pollution control facilities allocable to electric power sales for
resale may be included in the rate base of the public utility.
(ii) Qualification as a pollution control facility. In determining
whether a facility is a pollution control facility for purposes of this
section, the Commission will consider:
(A) Whether such facility is the type facility described in the
Internal Revenue Service laws, 26 U.S.C. 169(d)(1), as follows:
''A new identifiable treatment facility which is used * * * to abate
or control water or atmospheric pollution or contamination by removing,
altering, disposing, storing, or preventing the creation or emission of
pollutants, contaminants, wastes or heat'';
(B) Whether such facility has been certified by a local, state, or
federal agency as being in conformity with, or required by, a program of
pollution control;
(C) Whether such facility is the type facility described in the
schedule of ''Environmental Protection Facilities,'' sections 4(A)
through 4(D), page 428, FERC Form No. 1, Annual Report of Electric
Utilities, Licensees and Others (Major and Nonmajor) (Revised 12-85);
and
(D) Other evidence showing that such facilities are for pollution
control.
(2) Fuel conversion facilities. Any CWIP for fuel conversion
facilities allocable to electric power sales for resale may be included
in the rate base of the public utility.
(3) Non-pollution control of fuel conversion (non-PC/FC) CWIP. No
more than 50 percent of any CWIP allocable to electric power sales for
resale not otherwise included in rate base under paragraphs (c) (1) and
(2) of this section, may be included in the rate base of the public
utility.
(4) Forward looking allocation ratios. Every test period CWIP
project requested for wholesale rate base treatment pursuant to
35.26(c)(1), (2), and (3) of this part will be allocated to the customer
classes on the basis of forward looking allocation ratios reflecting the
anticipated average annual use the wholesale customers will make of the
system over the estimated service life of the project. Supporting
documentation, as required by 35.12 and 35.13 of this part, must be in
sufficient detail to permit examination and verification of the forward
looking allocation ratio's recognition of each wholesale customer's
plans, if any, for future alternative or supplementary power supplies.
For the purpose of preventing anticompetitive effects, including
CWIP-induced price squeeze and double whammy, sufficient recognition of
such plans may require the public utility applicant to provide for
separate customer groups or provide for a rate design incorporating
selected CWIP project credits.
(d) Effective date. If a public utility proposes in its filed rates
to include CWIP in rate base under this section, that portion of the
rate related to CWIP is collectable at the time the general rates become
effective pursuant to Commission order, whether or not subject to
refund, except as provided in paragraph (g) of this section.
(e) Discontinuance of AFUDC. On the date that any proposed rate that
includes CWIP in rate base becomes effective, a public utility that has
included CWIP in rate base must discontinue the capitalization of any
AFUDC related to those amounts of CWIP is rate base.
(f) Accounting procedures. When a public utility files to include
CWIP in its rate base pursuant to this section, it must propose
accounting procedures in that rate schedule filing that:
(1) Ensure that wholesale customers will not be charged for both
capitalized AFUDC and corresponding amounts of CWIP proposed to be
included in rate base; and
(2) Ensure that wholesale customers will not be charged for any
corresponding AFUDC capitalized as a result of different accounting or
ratemaking treatments accorded CWIP by state or local regulatory
authorities.
(g) Anticompetitive procedures -- (1) Filing requirements. In order
to facilitate Commission review of the anticompetitive effects of
applications for CWIP pursuant to 35.26(c)(3), a public utility
applying for rates based upon inclusion of such CWIP in rate base must
include the following information in its filing:
(i) The percentage of the proposed increase in the jurisdictional
rate level attributable to non-pollution control/fuel conversion CWIP
and the percentage of non-pollution control/fuel conversion CWIP
supporting the proposed rate level;
(ii) The percentage of non-pollution control/fuel conversion CWIP
permitted by the state or local commission supporting the current retail
rates of the public utility against which the relevant wholesale
customers compete; and
(iii) Individual earned rate of return analyses of each of the
competing retail rates developed on a basis fully consistent with the
wholesale cost of service for the same test period if the requested
percentage of wholesale non-pollution control/fuel conversion CWIP
exceeds that permitted by the relevant state or local authority to
support the currently competing retail rates.
(2) Preliminary relief. (i) If an intervenor in its initial pleading
alleges that a price squeeze will occur as a direct result of the public
utility's request for CWIP pursuant to 35.26(c)(3), makes a showing
that it is likely to incur harm if such CWIP is allowed subject to
refund, and makes a showing of how the harm to the intervenor would be
mitigated or eliminated by the types of preliminary relief requested,
the Commission will consider preliminary relief at the suspension stage
of the case pursuant to paragraph (g)(4) of this section. In
determining whether to grant preliminary relief, the Commission will
balance the following public interest considerations:
(A) The harm to the intervenor if it is not granted preliminary
relief from the requested CWIP;
(B) The harm to the public utility if, during the interim period of
preliminary relief, the public utility is required to recover its
financing charges later through AFUDC rather than immediately through
CWIP; and
(C) Mitigating bias against investment in new plants, ensuring
accurate price signals, and fostering rate stability.
(ii) Whether or not preliminary relief is granted at the suspension
stage will not preclude consideration of further interim or final
remedies later in the preceedings, if warranted.
(3) If the Commission makes a final determinaion that a price squeeze
due solely to allowance of a lower percentage of non-pollution
control/fuel conversion CWIP in the public utility's retail rate base
than allowed by this Commission, the Commission will consider an
adjustment to non-pollution control/fuel conversion CWIP in order to
eliminate or mitigate the price squeeze.
(4) If an intervenor meets the requirements of paragraph (g)(2) of
this section, the Commission, depending on the type of showing made
including the likelihood, immediacy, and severity of any anticompetitive
harm, may:
(i) Suspend the entire rate increase or all or a portion of the
non-pollution control/fuel conversion CWIP component for up to five
months;
(ii) Allow all or a portion of the non-pollution control/fuel
conversion CWIP only prospectively from the issuance of the Commission's
final order on rehearing on the matter; or
(iii) Take such other action as is proper under the circumstances.
(Order 474, 52 FR 23965, June 26, 1987, as amended by Order 474-A, 52
FR 35702, Sept. 23, 1987; Order 474-B, 54 FR 32804, Aug. 10, 1989.
Redesignated by Order 545, 57 FR 53990, Nov. 16, 1992)
18 CFR 35.25 Subpart D -- Procedures and Requirements for Public
Utility Sales of Power to Bonneville Power Administration Under
Northwest Power Act
Authority: Federal Power Act, 16 U.S.C. 792-828c (1976 and Supp. IV
1980) and Pacific Northwest Electric Power Planning and Conservation
Act, 16 U.S.C. 830-839h (Supp. IV (1980)).
18 CFR 35.30 General provisions.
(a) Applicability. This subpart applies to any sales of electric
power subject to the Commission's jurisdiction under Part II of the
Federal Power Act from public utilities to the Administrator of the
Bonneville Power Administration (BPA) at the average system cost (ASC)
of that utility's resources (electric power generation by the utility)
pursuant to section 5(c) of the Pacific Northwest Electric Power
Planning and Conservation Act, 16 U.S.C. 830-839h. The ASC is determined
by BPA in accordance with 18 CFR part 301.
(b) Effectiveness of rates. (1) During the period between the date
of BPA's determination of ASC and the date of the final order issued by
the Commission, the utility may charge the rate based on the ASC
determined by BPA, subject to 35.31(c) of this part.
(2) Except as otherwise provided under this section, the ASC ordered
by the Commission will be deemed in effect from the beginning of the
relevant exchange period, as defined in 301.1(b)(95) of this chapter.
For any initial exchange period after the Commission approves a new ASC
methodology, the ASC will be effective retroactively under this
paragraph only if the utility files its new ASC within the time allowed
under BPA procedures. Any utility that files a revised ASC with BPA in
accordance with this paragraph must promptly file with the Commission a
notice of timely filing of the new ASC.
(c) Filing requirements. Within 15 business days of the date of
issuance of the BPA report on a utility's ASC, the utility must file
with the Commission the ASC determined by BPA, the BPA written report,
the utility's ASC schedules, material necessary to comply with 18 CFR
35.13(c), and any other material requested by the Commission or its
staff.
(Order 337, 48 FR 46976, Oct. 17, 1983, as amended by Order 400, 49
FR 39300, Oct. 5, 1984)
18 CFR 35.31 Commission review.
(a) Procedures. Filings under this subpart are subject to the
procedures applicable to other filings under section 205 of the Federal
Power Act, as the Commission deems appropriate.
(b) Commission standard. With respect to any filing under this
subpart, the Commission will detemine whether the ASC set by BPA for the
applicable exchange period was determined in accordance with the ASC
methodology set forth at 18 CFR 301.1. If the ASC is not in accord with
the methodology, the Commission will order that BPA amend the ASC to
conform with the methodology. If the ASC is in accord with the
methodology, the rate is deemed just and reasonable.
(c) Refunds and adjustments. (1) Any ASC-based rate charged by a
public utility under this subpart pending Commission order is subject to
refund or to adjustment that increases the ASC-based rate.
(2) Any interest on refunds ordered by the Commission under this
subpart is computed in accordance with 18 CFR 35.19a. Interest on any
increase ordered by the Commission will be at the rate charged to BPA by
the U.S. Treasury during that period, unless the Commission orders
another interest rate.
(Approved by the Office of Management and Budget under control number
1902-0096)
(Order 337, 48 FR 46976, Oct. 17, 1983, as amended at 49 FR 1177,
Jan. 10, 1984)
18 CFR 35.31 PART 41 -- ACCOUNTS, RECORDS, AND MEMORANDA
Sec.
41.1 Notice of deficiencies.
41.2 Response to notification.
41.3 Facts and argument.
41.4 Form and style.
41.5 Verification.
41.6 Determination.
41.7 Assignment for oral hearing.
41.8 Burden of proof.
41.10 Examination of accounts.
41.11 Report of certification.
41.12 Qualifications of accountants.
Authority: Department of Energy Organization Act, 42 U.S.C.
7101-7352 (1982); E.O. 12009, 3 CFR 142 (1978); Federal Power Act, 16
U.S.C. 791a-828c (1982); Public Utility Regulatory Policies Act, 16
U.S.C. 2601-2645 (1982), unless otherwise noted.
Source: Order 141, 12 FR 8500, Dec. 19, 1947, unless otherwise
noted.
Cross Reference: For rules of practice and procedure, see part 385
of this chapter.
18 CFR 35.31 Adjustments of Accounts and Reports
18 CFR 41.1 Notice of deficiencies.
If, as the result of an examination by a representative of the
Commission of the accounts of a person subject to the act and to the
Commission's accounting requirements, or of an examination of any
statement or report submitted by such person, it appears that the
accounts, or any books or records pertaining to or in support thereof,
are not being kept and maintained as required by the Commission, or that
the statements or reports prepared and submitted are not in proper form,
the failure or deficiency will be called to the attention of such person
either formally or informally as the circumstances appear to warrant.
18 CFR 41.2 Response to notification.
If, as the result of such formal or informal notice, the matter is
not adjusted within the time fixed by said notice, or within a
reasonable time in case no date is specified, or if there is a
disagreement between such person and the Commission or its
representative respecting the application or interpretation of the act
or requirements of the Commission with respect to the matter at issue,
such person will be requested to advise the Commission in writing within
a time to be specified whether it consents to the disposition of the
questions involved under the shortened procedure provided in this part.
18 CFR 41.3 Facts and argument.
If the person consents to the matter being handled under such
shortened procedure, the person and any other parties interested,
including representatives of the Commission, shall submit to the
Commission, within 30 days after the receipt of notice from the
Commission to do so, a memorandum of the facts and, separately stated,
of the argument relied upon, to sustain the position taken respecting
the matter at issue together with copies in sufficient number to enable
the Commission to retain three copies for its own use and make service
in accordance with 385.2010 of this chapter, upon all parties
designated in said notice. Twenty days will be allowed in which to file
a reply by any party who filed an original memorandum.
(Order 141, 12 FR 8500, Dec. 19, 1947, as amended by Order 225, 47 FR
19056, May 3, 1982)
18 CFR 41.4 Form and style.
Each copy of such memorandum must be complete in itself. All
pertinent data should be set forth fully, and each memorandum should set
out the facts and argument as prescribed for briefs in 385.706 of this
chapter.
(Order 141, 12 FR 8500, Dec. 19, 1947, as amended by Order 225, 47 FR
19056, May 3, 1982)
18 CFR 41.5 Verification.
The facts stated in the memorandum must be sworn to by persons having
knowledge thereof, which latter fact must affirmatively appear in the
affidavit. Except under unusual circumstances, such persons should be
those who would appear as witnesses if hearing were had to testify as to
the facts stated in the memorandum.
18 CFR 41.6 Determination.
If no formal hearing is had the matter in issue will be determined by
the Commission on the basis of the facts and arguments submitted.
18 CFR 41.7 Assignment for oral hearing.
In case consent to the shortened procedure is not given, or if at any
stage of the proceeding prior to the submission of the case to the
Commission any party in interest requests a hearing, the proceeding will
be assigned for hearing as provided for by subpart E of part 385 of this
chapter. The Commission may also in its discretion set the proceeding
for hearing on its own motion at any stage thereof.
(Order 141, 12 FR 8500, Dec. 19, 1947, as amended by Order 225, 47 FR
19057, May 3, 1982)
18 CFR 41.8 Burden of proof.
The burden of proof to justify every accounting entry shall be on the
person making, authorizing, or requiring such entry.
18 CFR 41.8 Certification of Compliance With Accounting Regulations
18 CFR 41.10 Examination of accounts.
(a) All Major and Nonmajor public utilities and licensees not
classified as Class C or Class D prior to January 1, 1984 shall secure,
for the year 1968 and each year thereafter until December 31, 1975, the
services of an independent certified public accountant, or independent
licensed public accountant, certified or licensed by a regulatory
authority of a State or other political subdivision of the United
States, to test compliance in all material respects of those schedules
as are indicated in the General Instructions set out in the Annual
Report, Form No. 1, with the Commission's applicable Uniform System of
Accounts and published accounting releases. The Commission expects that
identification of questionable matters by the independent accountant
will facilitate their early resolution and that the independent
accountant will seek advisory rulings by the Commission on such items.
This examination shall be deemed supplementary to periodic Commission
examinations of compliance.
(b) Beginning January 1, 1976, and each year thereafter, only
independent certified public accountants, or independent licensed public
accountants who were licensed on or before December 31, 1970, will be
authorized to conduct annual audits and to certify to compliance in all
material respects, of those schedules as are indicated in the General
Instructions set out in the Annual Report, Form No. 1, with the
Commission's applicable Uniform System of Accounts, published accounting
releases and all other regulatory matters.
(Order 462, 37 FR 26005, Dec. 7, 1972, as amended by Order 390, 49 FR
32505, Aug. 14, 1984)
18 CFR 41.11 Report of certification.
Each Major and Nonmajor public utility or licensee not classified as
Class C or Class D prior to January 1, 1984 shall file with the
Commission a letter or report of the independent accountant certifying
approval, together with or within 30 days after the filing of the Annual
Report, Form No. 1, covering the subjects and in the form prescribed in
the General Instructions of the Annual Report. The letter or report
shall also set forth which, if any, of the examined schedules do not
conform to the Commission's requirements and shall describe the
discrepancies that exist. The Commission shall not be bound by a
certification of compliance made by an independent accountant pursuant
to this paragraph.
(Sec. 304, 49 Stat. 855; 16 U.S.C. 825c)
(Order 356, 33 FR 143, Jan. 5, 1968, as amended by Order 390, 49 FR
32505, Aug. 14, 1984)
18 CFR 41.12 Qualifications of accountants.
The Commission will not recognize any certified public accountant or
public accountant through December 31, 1975, who is not in fact
independent. Beginning January 1, 1976, and each year thereafter, the
Commission will recognize only independent certified public accountants,
or independent licensed public accountants who were licensed on or
before December 31, 1970, who are in fact independent. For example, an
accountant will not be considered independent with respect to any person
or any of its parents or subsidiaries in whom he has, or had during the
period of report, any direct financial interest. The Commission will
determine the fact of independence by considering all the relevant
circumstances including evidence bearing on the relationships between
the accountant and that person or any affiliate thereof.
(Order 462, 37 FR 26006, Dec. 7, 1972)
18 CFR 41.12 PART 45 -- APPLICATION FOR AUTHORITY TO HOLD INTERLOCKING
POSITIONS
Sec.
45.1 Applicability; who must file.
45.2 Positions requiring authorization.
45.3 Time of filing application.
45.4 Supplemental applications.
45.5 Supplemental information.
45.6 Termination of authorization.
45.7 Form of application; number of copies.
45.8 Contents of application; filing fee.
45.9 Automatic authorization of certain interlocking positions.
Authority: Department of Energy Organization Act, 42 U.S.C.
7101-7352 (1982); Exec. Order No. 12,009, 3 CFR 142 (1978);
Independent Offices Appropriations Act, 31 U.S.C. 9701 (1982); Federal
Power Act, 16 U.S.C. 791a-825r (1982); Public Utility Regulatory
Policies Act, 16 U.S.C. 2601-2645 (1982).
Source: Order 141, 12 FR 8501, Dec. 19, 1947, unless otherwise
noted.
Cross References: For rules of practice and procedure, see part 385
of this chapter. For forms under rules of practice and regulations
under the Federal Power Act, see part 131 of this chapter.
18 CFR 45.1 Applicability; who must file.
(a) This part applies to any person seeking to hold the following
interlocking positions:
(1) Officer or director of more than one public utility;
(2) Officer or director of a public utility and of any bank, trust
company, banking association, or firm that is authorized by law to
underwrite or participate in the marketing of securities of a public
utility; or
(3) Officer or director of a public utility and of any company
supplying electrical equipment to a public utility.
(b) Any person seeking to hold any interlocking position described in
45.2 of this chapter must do the following:
(1) Apply for Commission authorization under 45.8 of this chapter;
or
(2) If qualified, comply with the requirements for automatic
authorization under 45.9 of this chapter.
(Order 446, 51 FR 4904, Feb. 10, 1986)
18 CFR 45.2 Positions requiring authorization.
(a) The positions subject to this part shall include those of any
person elected or appointed to perform the duties or functions
ordinarily performed by a president, vice president, secretary,
treasurer, general manager, comptroller, chief purchasing agent,
director or partner, or to perform any other similar executive duties or
functions, in any corporation1040 within the purview of section 305(b)
of the Act. With respect to positions not herein specifically mentioned
which applicant holds and which are invested with executive authority,
applicant shall state in the application the source of such executive
authority, whether by bylaws, action of the board of directors, or
otherwise.
(b) Corporations1 within the purview of section 305(b) of the Act
include:
(1) Any public utility under the Act, which means any person who owns
or operates facilities for the transmission of electric energy in
interstate commerce, or any person who owns or operates facilities for
the sale at wholesale of electric energy in interstate commerce.
(2) Any bank, trust company, banking association, or firm that is
authorized by law to underwrite or participate in the marketing of
public utility securities; this includes any corporation when so
authorized whether or not same may also be a public utility and/or a
holding company. (See 12 U.S.C. 378)
(3) Any company that supplies electrical equipment to a public
utility in which applicant seeks authorization to hold a position,
whether the supplying company be a manufacturer, or dealer, or one
supplying electrical equipment pursuant to a construction, service,
agency, or other contract.
(c) Regardless of any action which may have been taken by the
Commission upon a previous application under section 305(b) of the Act,
an application for approval under such section is required with
reference to any position or positions not previously authorized which
are within the purview of said section.
0401Corporation means any corporation, joint-stock company,
partnership, association, business trust, organized group of persons,
whether incorporated or not, or a receiver or receivers, trustee or
trustees of any of the foregoing. It shall not include municipalities
as defined in the Federal Power Act (sec. 3, 49 Stat. 838; 16 U.S.C.
796).
18 CFR 45.3 Time of filing application.
(a) Anticipatory application. An application may be made in
anticipation of election or appointment to a position or positions
within the purview of section 305(b) of the Act.
(b) Application after election or appointment. Section 305(b) of the
Act provides that the holding of positions within the purview of that
section shall be unlawful unless the holding shall have been authorized
by order of the Commission. Nothing in this part shall be construed as
authorizing the holding of positions prior to the order of the
Commission on application therefor. Applications shall be filed within
30 days after election or appointment to any positions within the
purview of section 305(b) of the Act.
18 CFR 45.4 Supplemental applications.
(a) New positions. In the event of a change or changes in the
information set forth in an application, by the applicant's election or
appointment to another position or other positions in corporations
within the purview of section 305(b) of the Act, the application shall
be supplemented by the applicant's setting forth all the data with
respect to the new position or positions in accordance with the
requirements of this part.
(b) Old positions. After applicant has been authorized to hold a
particular position, further application in connection with each
successive term so long as he continues in uninterrupted tenure of such
position will not be required except as ordered by the Commission. If
the term of office or the holding of any position for which
authorization has been given shall be interrupted and the applicant
shall subsequently be reelected or reappointed thereto, further
authorization will be required.
18 CFR 45.5 Supplemental information.
(a) Required by Commission. Applicants under this part shall upon
request of the Commission and within such time as may be allowed,
supplement any application or any supplemental application with any
information required by the Commission.
(b) Notice of changes. In the event of the applicant's resignation,
withdrawal, or failure of reelection or appointment in respect to any of
the positions for which authorization has been granted by the
Commission, or in the event of any other material or substantial change
therein, the applicant shall within 30 days after any such change
occurs, give notice thereof to the Commission setting forth the position
corporation, and date of termination therewith, or other material or
substantial change.
(c) Reports. All persons holding positions by authorization of the
Commission under section 305(b) of the Act may be required to file such
periodic or special reports as the Commission may deem necessary.
18 CFR 45.6 Termination of authorization.
(a) By the Commission. Orders of authorization under section 305(b)
of the Act are subject to revocation by the Commission after due notice
to applicant and opportunity for hearing. In any such proceeding the
burden of proof shall be upon the applicant to show that neither public
nor private interests will be adversely affected by the holding of such
positions.
(b) Without action of the Commission. Whenever a person shall cease
to hold a position theretofore authorized to be held by the Commission
or such position shall cease to be within the purview of section 305(b)
of the Federal Power Act, the Commission's authorization to hold such
position shall terminate without further action by the Commission. If
upon such termination of authorization as aforesaid, such person does
not continue to hold at least two positions authorized and then
requiring authorization pursuant to said section 305(b) of the Act, all
authorization theretofore given by the Commission shall thereupon
terminate.
18 CFR 45.7 Form of application; number of copies.
An original and two copies of each application, supplemental
application, statement of supplemental information, notice of change and
report required to this part, together with one additional copy for each
interested State commission, shall be filed with the Commission. Each
original shall be dated, signed by the applicant and verified under oath
in accordance with 131.60 of this chapter. Each copy shall bear the
date and signature that appear on the original and shall be complete in
itself, but the signature in the copies may be stamped or typed and the
notarial seal may be omitted. The application shall conform to subpart
T of part 385 of this chapter.
(Order 141, 12 FR 8501, Dec. 19, 1947, as amended by Order 225, 47 FR
19057, May 3, 1982)
18 CFR 45.8 Contents of application; filing fee.
Each application shall be accompanied by the fee prescribed in part
381 of this chapter and shall state the following:
(a) Identification of applicant. (1) Full name, business address and
state of residence.
(2) Major business or professional activity.
(3) If former application or applications under section 305(b) of the
Act have been made by the applicant, give date and docket number of the
last application filed.
(b) List of positions within the purview of section 305(b) of the Act
for which authorization is sought. (Indicate by asterisk positions
which were the subjects of previous authorizations.)
(c) Data as to positions with each public utility mentioned in
paragraph (b) of this section. (The format should be adapted to the
information submitted, in keeping with completeness and conciseness. In
the case of public utilities of the same holding company system, brevity
will generally be promoted by submitting the information for all of the
utilities involved under each subsection progressively in the order of
the subsections, utilizing tables when feasible.)
(1) Name of utility.
(2) Date elected or appointed, or anticipated date of election or
appointment, to each position not previously authorized.
(3) Names of officers and directors; number of vacancies, if any, on
Board of Directors.
(4) Description of applicant's duties: Approximate amount of time
devoted thereto; and, if applicant seeks authorization as a director,
the percentage of directors meetings held during the past 12 months that
were attended by the applicant.
(5) All other professional, contractual, or business relationships of
applicant with the public utility, either directly or through other
corporations or firms.
(6) Extent of applicant's direct or indirect ownership, control of,
or beneficial interest in the public utility or the securities thereof.
If ownership or interest is held in a name other than that of applicant,
state name and address of the holder.
(7) Extent of applicant's indebtedness to the public utility, how and
when incurred, and consideration therefor.
(8) All money or property received by applicant from the public
utility or any affiliate (i) during the past 12 months, and expected
during the ensuing 12 months, or (ii) during the public utility's most
recently ended fiscal year, and expected during the public utility's
current fiscal year, or (iii) during the past and current calendar
years, whether for services, reimbursement for expenses, or otherwise.
Specify in detail the amount thereof and the basis therefor. If
applicant's compensation for services to the public utility is not paid
directly by the public utility, give name of the corporation that does
pay same, the amount allocated or allocable to the public utility or any
affiliate, and the basis or reason for such allocation.
(9) Whether during the past 5 years the public utility or any
affiliate thereof or any security holders of either have commenced any
suit against the officers or directors thereof for alleged waste,
mismanagement or violation of duty, to which suit applicant was a party
defendant. If so, give date of commencement of suit, court in which
commenced, and present status.
(d) Data as to positions with each bank, trust company, banking
association or firm, mentioned in paragraph (b) of this section, that is
authorized by law to underwrite or participate in the marketing of
securities of a public utility. (The applicant shall use a separate
sheet for each corporation.)
(1) Name of corporation and address of principal place of business.
(2) Positions which applicant holds or seeks authorization to hold
therein and when and by whom elected or appointed to each position.
(3) Description of applicant's duties in each position and the
approximate amount of time devoted thereto, and, if applicant seeks
authorization as director, the percentage of directors meetings held
during the past 12 months that were attended by the applicant.
(4) Extent of applicant's direct or indirect ownership, or control
of, or beneficial interest in, the company or in the securities thereof,
including common stock, preferred stock, bonds, or other securities. If
such ownership or interest is held in a name other than that of
applicant, state name and address of such holder.
(5) All money or property received by applicant from the company (i)
during the past 12 months, and expected during the ensuing 12 months, or
(ii) during the company's most recently ended fiscal year, and expected
during the company's current fiscal year, or (iii) during the past and
current calendar years, whether for services, reimbursement for
expenses, or otherwise. Specify in detail the amount thereof and the
basis therefor.
(6) Names and titles of directors, officers, or partners.
(7) Whether the corporation is now engaged in underwriting or
participating in the marketing of the securities of a public utility;
if so, to what extent.
(8) Whether the corporation, during applicant's connection therewith,
has underwritten or participated in the marketing of the security issue
of any public utility with which applicant was also connected; if so,
the details with respect to every such transaction that occurred during
the past 36 months.
(9) (If the answer to paragraph (d)(7) of this section is in the
negative.) Give excerpts from the charter, declaration of trust, or
articles of partnership that authorize the underwriting or participating
in the marketing of securities of a public utility.
(10) (If the answer to paragraph (d)(7) of this section is in the
negative.) Give general requirements of and appropriate reference to,
the laws of the State of organization and of States in which corporation
is doing business or has qualified to do business, with which it must
comply in order to engage in the business of underwriting or
participating in the marketing of the securities of a public utility.
(11) What steps, if any, have been taken to comply with laws
mentioned in paragraph (d)(10) of this section.
(12) In lieu of paragraphs (d)(9), (10), and (11) of this section, an
opinion by counsel to the same effect and including the information in
respect thereto may be filed with the application.
(13) Whether the corporation has registered with the Securities and
Exchange Commission; if so, when and under what section of what act.
(e) Data as to positions with each company, mentioned in paragraph
(b) of this section, supplying electrical equipment to a public utility
in which applicant holds a position. (Applicant shall use a separate
sheet for each company.)
(1) Name of company and address of principal place of business.
(2) Positions which applicant holds or seeks authorization to hold
therein and when and by whom elected or appointed to each position.
(3) Description of applicant's duties in each position and
approximate amounts of time devoted thereto, and, if applicant seeks
authorization as director, the percentage of directors meetings held
during the past 12 months that were attended by the applicant.
(4) Names and titles of directors or partners.
(5) Name of each public utility, with which applicant holds or seeks
authorization to hold a position, to which the company supplies
electrical equipment; the frequency of such transactions; the
approximate annual dollar volume of such business; and the type of
equipment supplied.
(6) Nature of relationship between the company supplying electrical
equipment and the public utility:
(i) Whether company manufactures such electrical equipment or is a
dealer therein.
(ii) Whether company supplies electrical equipment to the public
utility pursuant to construction, service, agency, or other contract
with the public utility or an affiliate thereof, and, if so, furnish
brief summary of the terms of such contract.
(7) Extent of applicant's direct or indirect ownership, or control
of, or beneficial interest in, the company or in the securities thereof,
including common stock, preferred stock, bonds, or other securities. If
such ownership or interest is held in a name other than that of
applicant, state name and address of such holder.
(8) All money or property received by applicant from the company (i)
during the past 12 months, and expected during the ensuing 12 months, or
(ii) during the company's most recently ended fiscal year, and expected
during the company's current fiscal year, or (iii) during the past and
current calendar years, whether for services, reimbursement for
expenses, or otherwise. Specify in detail the amount thereof and the
basis therefor.
(f) Data as to positions with public utility holding companies. (Do
not include here data as to corporations listed in paragraph (b) of this
section which are also holding companies. A holding company as herein
used means any corporation which directly or indirectly owns, controls,
or holds with power to vote, 10 per centum or more, of the outstanding
voting securities of a public utility.)
(1) Name of holding company and address of principal place of
business.
(2) Positions which applicant holds therein, when and by whom elected
or appointed to each position.
(3) Extent of applicant's direct or indirect ownership, or control
of, or beneficial interest in, the holding company or in the securities
thereof, including common stock, preferred stock, bonds, or other
securities. If such ownership or interest is held in a name other than
that of applicant, state name and address of such holder.
(4) All money or property received by applicant from the holding
company (i) during the past 12 months, and expected during the ensuing
12 months, or (ii) during the holding company's most recently ended
fiscal year, and expected during the holding company's current fiscal
year, or (iii) during the past and current calendar years, whether for
services, reimbursement for expenses, or otherwise. Specify in detail
the amount thereof and the basis therefor.
(g) Positions with all other corporations. (Do not include here data
that have been filed within the past 12 months in FERC-561, pursuant to
part 46 of this chapter, or data as to any corporations listed in
paragraph (b) or (f) of this section.)
(1) All other corporations and positions therein, including briefly
the information required in parallel columns as below:
(2) Any corporate, contractual, financial, or business relationships
between any of the corporations listed in paragraph (g)(1) of this
section and any of the public utilities listed in paragraph (b) of this
section.
(h) Data as to the public utility holding company system. The names
of the public utility holding company systems of which each public
utility listed in paragraph (b) of this section is a part, with a chart
showing the corporate relationships existing between and among the
corporations within the holding company systems.
(Order 246, 27 FR 4912, May 25, 1962, as amended by Order 427, 36 FR
5598, Mar. 25, 1971; Order 374, 49 FR 20479-20480, May 15, 1984; Order
435, 50 FR 40358, Oct. 3, 1985)
Cross Reference: For rules and regulations of the Securities and
Exchange Commission, see 17 CFR, chap. II.
18 CFR 45.9 Automatic authorization of certain interlocking positions.
(a) Applicability. Subject to paragraphs (b) and (c) of this
section, the Commission authorizes any officer or director of a public
utility to hold the following interlocking positions:
(1) Officer or director of one or more other public utilities if the
same holding company owns, directly or indirectly, that percentage of
each utility's stock (of whatever class or classes) which is required by
each utility's by-laws to elect directors;
(2) Officer or director of two public utilities, if one utility is
owned, wholly or in part, by the other and, as its primary business,
owns or operates transmission or generating facilities to provide
transmission service or electric power for sale to its owners; and
(3) Officer or director of more than one public utility, if such
officer or director is already authorized under this part to hold
different positions as officer or director of those utilities where the
interlock involves affiliated public utilities.
(b) Conditions of authorization. Any person authorized to hold
interlocking positions under this section must submit, not later than 30
days after assuming the duties of the position, an informational report
in accordance with paragraph (c) of this section, unless that person is
already authorized to hold interlocking positions of the type governed
by this section.
(c) Informational report. An informational report required under
paragraph (b) of this section must state:
(1) The full name and business address of the person required to
submit this report;
(2) The names of all public utilities with which the person holds or
will hold the positions of officer or director and a description of
those positions;
(3) The names of any entity, other than those listed in paragraph
(c)(2) of this section, of which the person is an officer or director
and a description of those positions; and
(4) An explanation of the corporate relationship between or among the
public utilities listed in paragraph (c)(2) of this section which
qualifies the person for automatic authorization under this section.
(Order 446, 51 FR 4905, Feb. 10, 1986)
18 CFR 45.9 PART 46 -- PUBLIC UTILITY FILING REQUIREMENTS AND FILING
REQUIREMENTS FOR PERSONS HOLDING INTERLOCKING POSITIONS
Sec.
46.1 Purpose.
46.2 Definitions.
46.3 Purchaser list.
46.4 General rule.
46.5 Covered entities.
46.6 Contents of the written statement and procedures for filing.
Authority: Federal Power Act, as amended, (16 U.S.C. 792-828c);
Public Utility Regulatory Policies Act of 1978, 16 U.S.C. 2601-2645;
Department of Energy Organization Act, (42 U.S.C. 7101-7352); E.O.
12009, 3 CFR 142 (1978).
Source: 45 FR 23418, Apr. 7, 1980, unless otherwise noted.
18 CFR 46.1 Purpose.
The purpose of this part is to implement section 305(c) of the
Federal Power Act, as amended by section 211 of the Public Utility
Regulatory Policies Act of 1978.
(Order 67, 45 FR 3569, Jan. 18, 1980)
18 CFR 46.2 Definitions.
For the purpose of this part:
(a) Public utility has the same meaning as in section 201(e) of the
Federal Power Act and further includes any company which is part of a
holding company system which includes a registered holding company
unless no company in such system is an electric utility within the
meaning of section 3 of the Federal Power Act. Such term does not
include any rural electric cooperative which is regulated by the Rural
Electrification Administration of the Department of Agriculture or any
other entities covered in section 201(f) of the Federal Power Act.
(b) The following terms have the same meaning as in the Public
Utility Holding Company Act of 1935:
(1) Holding company system; and
(2) Registered holding company.
(c) Purchaser means any individual or corporation within the meaning
of section 3 of the Federal Power Act who purchases electric energy from
a public utility. Such term does not include the United States or any
agency or instrumentality of the United States or any rural electric
cooperative which is regulated by the Rural Electrification
Administration of the Department of Agriculture.
(d) Control and controlled mean the possession, directly or
indirectly, of the power to direct the management or policies of an
entity whether such power is exercised through one or more intermediary
companies or pursuant to an agreement, written or oral, and whether such
power is established through ownership or voting of securities, or
common directors, officers, or stockholders, or voting trusts, holding
trusts, or debt holdings, or contract, or any other direct or indirect
means. A rebuttable presumption that control exists arises from the
ownership or the power to vote, directly or indirectly, ten percent
(10%) or more of the voting securities of such entity.
(e) Entity means any firm, company, or organization including any
corporation, joint-stock company, partnership, association, business
trust, organized group of persons, whether incorporated or not, or a
receiver or receivers, trustee or trustees of any of the foregoing.
Such term does not include municipality as defined in section 3 of the
Federal Power Act and does not include any Federal, State, or local
government agencies or any rural electric cooperative which is regulated
by the Rural Electrification Administration of the Department of
Agriculture.
(f) Electrical equipment means any apparatus, device, integral
component, or integral part used in an activity which is electrically,
electronically, mechanically, or by legal prescription necessary to the
process of generation, transmission, or distribution of electric energy.
1
(g) Produces or supplies means any transaction including a sale,
lease, sale-leaseback, consignment, or any other transaction in which an
entity provides electrical equipment, coal, natural gas, oil, nuclear
fuel, or other fuel to any public utility either directly or through an
entity controlled by such entity.
(h) Appointee means any person appointed on a temporary or permanent
basis to perform any duties or functions described in 46.4(a).
(i) Representative means any person empowered, through oral or
written agreement, to transact business on behalf of an entity and any
person who serves as an advisor regarding policy or management decisions
of the entity. The term does not include attorneys, accountants,
architects, or any other persons who render a professional service on a
fee basis.
1Guidance in applying the definition of electrical equipment may be
obtained by examining the items within the following accounts described
in part 101, title 18 of the Code of Federal Regulations:
Boiler/Reactor plant equipment (Accounts 312 and 322); Engines and
engine driven generators (313); Turbogenerator units (314 and 323);
Accessory electrical equipment (315, 324, 334 and 345); Miscellaneous
power plant equipment (316, 325, 335 and 346); Water wheels, turbines
and generators (333); Fuel holders, producers, and accessories (342);
Prime movers (343); Generators (344); Station equipment (353 and 362);
Poles, towers and fixtures (354, 355 and 364); Overhead conductors and
devices (356 and 365); Underground conduit (357 and 366); Underground
conductors and devices (358 and 367); Storage battery equipment (363);
Line transformers (368); Services (369); Meters (370); Installation
on customers' premises (371); Street lighting and signal systems (373);
Leased property on customers' premises (372); and Communication
equipment (397). Excepted from these accounts, are vehicles,
structures, foundations, settings, and services.
18 CFR 46.3 Purchaser list.
(a) Compilation and filing list. On or before January 31 of each
year, each public utility shall complile a list of the purchasers
described in paragraph (b) of this section and shall identify each
purchaser by name and principal business address. An original and two
(2) copies of such list shall be filed with the Commission by the public
utility and the list shall be made publicly available through its
principal business office.
(b) Largest purchasers. The list required under paragraph (a) of
this section shall include each purchaser who, during any of the three
(3) preceding calendar years, purchased (for purposes other than resale)
from a public utility one of the twenty (20) largest amounts of electric
energy measured in kilowatt hours sold (for purposes other than resale)
by such utility during such year.
(c) Special rules. If data for actual annual sales (for purposes
other than resale) are not available in the records of the public
utility, the utility may use estimates based on actual data available to
it. If one purchaser maintains several billing accounts with the public
utility, the kilowatt hours purchased in each account of that purchaser
shall be aggregated to arrive at the total for that purchaser.
(d) Notification of largest purchasers. Each public utility shall
notify by January 31 of each year each purchaser which has been
identified on the list of largest purchasers under paragraph (b) of this
section.
(e) Revision of the list. Each public utility relying upon any
estimates for its January 31st filing, shall revise the list compiled
under paragraph (b) of this section no later than March 1 of the year in
which the list was originally filed to reflect actual data not available
to the utility prior to that time. Any revised list shall be filed with
the Commission and made publicly available through the utility's
principal business office no later than March 1. A utility filing a
revised list shall indicate thereon the changes made to the list
previously filed under paragraph (b) of this section. On or before the
filing and publication of the revised list, the public utility shall
notify the newly-listed purchasers and any purchasers whose names were
removed from the list.
(Order 67, 45 FR 3569, Jan. 18, 1980; 45 FR 6377, Jan. 28, 1980)
18 CFR 46.4 General rule.
A person must file with the Office of the Secretary of the Commission
a written statement in accordance with 46.6, and in the form specified
in 131.31 of this chapter (except that with respect to calendar year
1980, no filings in the form specified in 131.31 is required if such
person has previously filed the statement required for calendar year
1980 in a different form than specified in 131.31), if such person:
(a) Serves for a public utility in any of the following positions: A
director or a chief executive officer, president, vice president,
secretary, treasurer, general manager, comptroller, chief purchasing
agent, or any other position in which such person performs similar
executive duties or functions for such public utility; and
(b) Serves for any entity described in 46.5 in any of the positions
described in paragraph (a) of this section or is a partner, appointee,
or representative of such entity.
(45 FR 23418, Apr. 7, 1980, as amended by Order 140, 46 FR 22181,
Apr. 16, 1981)
18 CFR 46.5 Covered entities.
Entities to which the general rule in 46.4(b) applies are the
following:
(a) Any investment bank, bank holding company, foreign bank or
subsidiary thereof doing business in the United States, insurance
company, or any other organization primarily engaged in the business of
providing financial services or credit, a mutual savings bank, or a
savings and loan association;
(b) Any entity which is authorized by law to underwrite or
participate in the marketing of securities of a public utility;
(c) Any entity which produces or supplies electrical equipment or
coal, natural gas, oil, nuclear fuel, or other fuel, for the use of any
public utility;
(d) Any entity specified in 46.3;
(e) Any entity referred to in section 305(b) of the Federal Power
Act; and
(f) Any entity which is controlled by any entity referred to in this
section.
18 CFR 46.6 Contents of the written statement and procedures for
filing.
Each person required to file a written statement under the general
rule in 46.4 shall comply with the following requirements:
(a) Each person shall provide the following information: full name
and business address; identification of the public utilities and the
covered entities in which such person holds executive positions
described in 46.4; and identification of the interlock described in
46.4;
(b) If the interlock is between a public utility and an entity
described in 46.5(c), which produces or supplies electrical equipment
for use of such public utility, such person shall provide the following
information:
(1) The aggregate amount of revenues received by such entity from
producing or supplying electrical equipment to such public utility in
the calendar year specified in paragraph (d) of this section, rounded up
to the nearest $100,000; and
(2) The nature of the business relationship between such public
utility and such entity.
(c) If the person is authorized by the Commission to hold the
positions of officer or director in accordance with part 45, such person
shall identify the authorization by docket number and shall give the
date of authorization.
(d)(1) Each person shall file an original and two copies of such
written statement with the Office of Secretary of the Commission on or
before April 30 of each year immediately following the calendar year
during any portion of which such person held a position described in
46.4. The original of such statement shall be dated, signed by such
person, and verified under oath in accordance with 131.60 of this
chapter. Each copy shall bear the date that appeared on the original;
the signature may be stamped or typed on the copy, and the notarial seal
may be omitted.
(2) Such statement shall be available to the public during regular
business hours through the Commission's Office of Public Information and
shall be made publicly available through the principal business offices
of the public utility and any entity to which it applies on or before
April 30 of the year the statement was filed with the Commission.
(Pub. L. 96-511, 94 Stat. 2812 (44 U.S.C. 3501 et seq.))
(45 FR 23418, Apr. 7, 1980)
18 CFR 46.6 SUBCHAPTER C -- ACCOUNTS, FEDERAL POWER ACT
18 CFR 46.6 PART 101 -- UNIFORM SYSTEM OF ACCOUNTS PRESCRIBED FOR PUBLIC UTILITIES AND LICENSEES SUBJECT TO THE PROVISIONS OF THE FEDERAL POWER ACT
18 CFR 46.6 Pt. 101
Authority: Department of Energy Organization Act, 42 U.S.C.
7101-7352 (1982); Exec. Order No. 12,009, 3 CFR 142 (1978);
Independent Offices Appropriations Act, 31 U.S.C. 9701 (1982); Federal
Power Act, 16 U.S.C. 791a-825r (1982); Public Utility Regulatory
Policies Act, 16 U.S.C. 2601-2645 (1982).
Source: Order 218, 25 FR 5014, June 7, 1960, as amended by Order
276, 28 FR 14267, Dec. 25, 1963, Order 290, 29 FR 18214, Dec. 23,
1964; 30 FR 484, Jan. 14, 1965; Order 322, 31 FR 7898, June 3, 1966;
Order 343, 32 FR 6678, May 2, 1967; 32 FR 8657, June 16, 1967; Order
354, 32 FR 15671, Nov. 14, 1967; Order 866, 33 FR 10135, July 16,
1968; Order 389, 34 FR 17436, Oct. 29, 1969; Order 393, 34 FR 20269,
Dec. 25, 1969; Order 389A, 35 FR 879, Jan. 22, 1970; Order 393A, 35
FR 5943, Apr. 10, 1970; Order 408, 35 FR 13985, Sept. 3, 1970; Order
419, 36 FR 518, Jan. 14, 1971; Order 420, 36 FR 507, Jan. 14, 1971;
Order 421, 36 FR 3047, Feb. 17, 1971; 36 FR 4386, Mar. 5, 1971;
Order 432, 36 FR 8240, May 1, 1971; Order 434, 36 FR 11431, June 12,
1971; Order 436, 36 FR 15529, Aug. 17, 1971; Order 439, 36 FR 20869,
Oct. 30, 1971; Order 454, 37 FR 14226, July 18, 1972; Order 460, 37
FR 24659, Nov. 18, 1972; Order 469, 38 FR 4248, Feb. 12, 1973; Order
462, 38 FR 4948, Feb. 23, 1973; Order 463, 38 FR 7214, Mar. 19, 1973;
Order 475, 38 FR 6667, Mar. 12, 1973; Order 488, 38 FR 12115, May 9,
1973; Order 486, 38 FR 18873, July 16, 1973; Order 490, 38 FR 23332,
Aug. 29, 1973; Order 486-1, 38 FR 30434, Nov. 5, 1973; Order 473, 39
FR 2469, Jan. 22, 1974; Order 504, 39 FR 6073, Feb. 19, 1974; Order
505, 39 FR 6093, Feb. 19, 1974; Order 505, 39 FR 22417, June 24, 1974;
Order 530, 40 FR 26983, June 26, 1975; Order 549, 41 FR 24993, June
22, 1976; Order 561, 42 FR 9163, Feb. 15, 1977; Order 566, 42 FR
30156, June 13, 1977; Order 567, 42 FR 30613, June 16, 1977; Order 5,
43 FR 15418, Apr. 13, 1978; Order 258, 47 FR 42723, Sept. 29, 1982;
48 FR 32567, 32568, 32570, July 18, 1983; Order 390, 49 FR 32505, Aug.
14, 1984; 50 FR 5744, Feb. 12, 1985; Order 435, 50 FR 40358, Oct. 3,
1985.
Note: Order 141, 12 FR 8503, Dec. 19, 1947, provides in part as
follows:
Prescribing a system of accounts for public utilities and licensees
under the Federal Power Act. The Federal Power Commission acting
pursuant to authority granted by the Federal Power Act, particularly
sections 301(a), 304(a), and 309, and paragraph (13) of section 3,
section 4(b) thereof, and finding such action necessary and appropriate
for carrying out the provisions of said act, hereby adopts the
accompanying system of accounts entitled ''Uniform System of Accounts
Prescribed for Public Utilities and Licensees Subject to the Provisions
of the Federal Power Act,'' and the rules and regulations contained
therein; and It is hereby ordered:
(a) That said system of accounts and said rules and regulations
contained therein be and the same are hereby prescribed and promulgated
as the system of accounts and rules and regulations of the Commission to
be kept and observed by public utilities subject to the jurisdiction of
the Commission and by licensees holding licenses issued by the
Commission, to the extent and in the manner set forth therein;
(b) That said system of accounts and rules and regulations therein
contained shall, as to all public utilities now subject to the
jurisdiction of the Commission and as to all present licensees, become
effective on January 1, 1937, and as to public utilities and licensees
which may hereafter become subject to the jurisdiction of the
Commission, they shall become effective as of the date when such public
utility becomes subject to the jurisdiction of the Commission or on the
effective date of the license;
(c) That a copy of said system of accounts and rules and regulation
contained therein be forthwith served upon each public utility subject
to the jurisdiction of the Commission, and each licensee or permittee
holding a license or permit from the Commission.
This system of accounts supersedes the system of accounts prescribed
for licensees under the Federal Water Power Act; and Order No. 13,
entered November 20, 1922, prescribing said system of accounts, was
rescinded effective January 1, 1937.
Applicability of system of accounts. This system of accounts is
applicable in principle to all licensees subject to the Commission's
accounting requirements under the Federal Power Act, and to all public
utilities subject to the provisions of the Federal Power Act. The
Commission reserves the right, however, under the provisions of section
301(a) of the Federal Power Act to classify such licensees and public
utilities and to prescribe a system of classification of accounts to be
kept by and which will be convenient for and meet the requirements of
each class.
This system of accounts is applicable to public utilities, as defined
in this part, and to licensees engaged in the generation and sale of
electric energy for ultimate distribution to the public.
This system of accounts shall also apply to agencies of the United
States engaged in the generation and sale of electric energy for
ultimate distribution to the public, so far as may be practicable, in
accordance with applicable statutes.
In accordance with the requirements of section 3 of the Act (49 Stat.
839; 16 U.S.C. 796(13)), the ''classification of investment in road and
equipment of steam roads, issue of 1914, Interstate Commerce
Commission'', is published and promulgated as a part of the accounting
rules and regulations of the Commission, and a copy thereof appears as
part 103 of this chapter. Irrespective of any rules and regulations
contained in this system of accounts, the cost of original projects
licensed under the Act, and also the cost of additions thereto and
betterments thereof, shall be determined under the rules and principles
as defined and interpreted in said classification of the Interstate
Commerce Commission so far as applicable.
Cross References: For application of uniform system of accounts to
Class C and D public utilities and licensees, see part 104 of this
chapter. For statements and reports, see part 141 of this chapter.
18 CFR 46.6 Uniform System of Accounts Prescribed for Public Utilities and Licensees Subject to the Provisions of the Federal Power Act
18 CFR 46.6 Definitions
When used in this system of accounts:
1. Accounts means the accounts prescribed in this system of accounts.
2. Actually issued, as applied to securities issued or assumed by the
utility, means those which have been sold to bona fide purchasers for a
valuable consideration, those issued as dividends on stock, and those
which have been issued in accordance with contractual requirements
direct to trustees of sinking funds.
3. Actually outstanding, as applied to securities issued or assumed
by the utility, means those which have been actually issued and are
neither retired nor held by or for the utility; provided, however, that
securities held by trustees shall be considered as actually outstanding.
4. Amortization means the gradual extinguishment of an amount in an
account by distributing such amount over a fixed period, over the life
of the asset or liability to which it applies, or over the period during
which it is anticipated the benefit will be realized.
5. A. Associated (affiliated) companies means companies or persons
that directly, or indirectly through one or more intermediaries,
control, or are controlled by, or are under common control with, the
accounting company.
B. Control (including the terms controlling, controlled by, and under
common control with) means the possession, directly or indirectly, of
the power to direct or cause the direction of the management and
policies of a company, whether such power is exercised through one or
more intermediary companies, or alone, or in conjunction with, or
pursuant to an agreement, and whether such power is established through
a majority or minority ownership or voting of securities, common
directors, officers, or stockholders, voting trusts, holding trusts,
associated companies, contract or any other direct or indirect means.
6. Book cost means the amount at which property is recorded in these
accounts without deduction of related provisions for accrued
depreciation, amortization, or for other purposes.
7. Commission, means the Federal Energy Regulatory Commission.
8. Continuing Plant Inventory Record means company plant records for
retirement units and mass property that provide, as either a single
record, or in separate records readily obtainable by references made in
a single record, the following information:
A. For each retirement unit:
(1) The name or description of the unit, or both;
(2) The location of the unit;
(3) The date the unit was placed in service;
(4) The cost of the unit as set forth in Plant Instructions 2 and 3
of this part; and
(5) The plant control account to which the cost of the unit is
charged; and
B. For each category of mass property:
(1) A general description of the property and quantity;
(2) The quantity placed in service by vintage year;
(3) The average cost as set forth in Plant Instructions 2 and 3 of
this part; and
(4) The plant control account to which the costs are charged.
9. Cost means the amount of money actually paid for property or
services. When the consideration given is other than cash in a purchase
and sale transaction, as distinguished from a transaction involving the
issuance of common stock in a merger or a pooling of interest, the value
of such consideration shall be determined on a cash basis.
10. Cost of removal means the cost of demolishing, dismantling,
tearing down or otherwise removing electric plant, including the cost of
transportation and handling incidental thereto.
11. Debt expense means all expenses in connection with the issuance
and initial sale of evidences of debt, such as fees for drafting
mortgages and trust deeds; fees and taxes for issuing or recording
evidences of debt; cost of engraving and printing bonds and
certificates of indebtedness; fees paid trustees; specific costs of
obtaining governmental authority; fees for legal services; fees and
commissions paid underwriters, brokers, and salesmen for marketing such
evidences of debt; fees and expenses of listing on exchanges; and
other like costs.
12. Depreciation, as applied to depreciable electric plant, means the
loss in service value not restored by current maintenance, incurred in
connection with the consumption or prospective retirement of electric
plant in the course of service from causes which are known to be in
current operation and against which the utility is not protected by
insurance. Among the causes to be given consideration are wear and
tear, decay, action of the elements, inadequacy, obsolescence, changes
in the art, changes in demand and requirements of public authorities.
13. Discount, as applied to the securities issued or assumed by the
utility, means the excess of the par (stated value of no-par stocks) or
face value of the securities plus interest or dividends accrued at the
date of the sale over the cash value of the consideration received from
their sale.
14. Investment advances means advances, represented by notes or by
book accounts only, with respect to which it is mutually agreed or
intended between the creditor and debtor that they shall be settled by
the issuance of securities or shall not be subject to current
settlement.
15. Lease, capital means a lease of property used in utility or
nonutility operations, which meets one or more of the criteria stated in
General Instruction 19.
16. Lease, operating means a lease of property used in utility or
nonutility operations, which does not meet any of the criteria stated in
General Instruction 19.
17. Licensee means any person, or State, licensed under the
provisions of the Federal Power Act and subject to the Commission's
accounting requirements under the terms of the license.
18. Minor items of property means the associated parts or items of
which retirement units are composed.
19. Net salvage value means the salvage value of property retired
less the cost of removal.
20. Nominally issued, as applied to securities issued or assumed by
the utility, means those which have been signed, certified, or otherwise
executed, and placed with the proper officer for sale and delivery, or
pledged, or otherwise placed in some special fund of the utility, but
which have not been sold, or issued direct to trustees of sinking funds
in accordance with contractual requirements.
21. Nominally outstanding, as applied to securities issued or assumed
by the utility, means those which, after being actually issued, have
been reacquired by or for the utility under circumstances which require
them to be considered as held alive and not retired, provided, however,
that securities held by trustees shall be considered as actually
outstanding.
22. Nonproject property means the electric plant of a licensee which
is not a part of the project property subject to a license issued by the
Commission.
23. Original cost, as applied to electric plant, means the cost of
such property to the person first devoting it to public service.
24. Person means an individual, a corporation, a partnership, an
association, a joint stock company, a business trust, or any organized
group of persons, whether incorporated or not, or any receiver or
trustee.
25. Premium, as applied to securities issued or assumed by the
utility, means the excess of the cash value of the consideration
received from their sale over the sum of their par (stated value of
no-par stocks) or face value and interest or dividends accrued at the
date of sale.
26. Project means complete unit of improvement or development,
consisting of a power house, all water conduits, all dams and
appurtenant works and structures (including navigation structures) which
are a part of said unit, and all storage, diverting, or forebay
reservoirs directly connected therewith, the primary line or lines
transmitting power therefrom to the point of junction with the
distribution system or with the interconnected primary transmission
system, all miscellaneous structures used and useful in connection with
said unit or any part thereof, and all water rights, rights of way,
ditches, dams, reservoirs, lands, or interest in lands the use and
occupancy of which are necessary or appropriate in the maintenance and
operation of such unit.
27. Project property means the property described in and subject to a
license issued by the Commission.
28. Property retired, as applied to electric plant, means property
which has been removed, sold, abandoned, destroyed, or which for any
cause has been withdrawn from service.
29. Public utility means any person who owns or operates facilities
subject to the jurisdiction of the Commission under the Federal Power
Act. (See section 201(e) of said act.)
30. A. Replacing or replacement, when not otherwise indicated in the
context, means the construction or installation of electric plant in
place of property retired, together with the removal of the property
retired.
B. Research, Development, and Demonstration (RD&D) in the case of
Major utilities means expenditures incurred by public utilities and
licensees either directly or through another person or organization
(such as research institute, industry association, foundation,
university, engineering company or similar contractor) in pursuing
research, development, and demonstration activities including
experiment, design, installation, construction, or operation. This
definition includes expenditures for the implementation or development
of new and/or existing concepts until technically feasible and
commercially feasible operations are verified. Such research,
development, and demonstration costs should be reasonably related to the
existing or future utility business, broadly defined, of the public
utility or licensee or in the environment in which it operates or
expects to operate. The term includes, but is not limited to: All such
costs incidental to the design, development or implementation of an
experimental facility, a plant process, a product, a formula, an
invention, a system or similar items, and the improvement of already
existing items of a like nature; amounts expended in connection with
the proposed development and/or proposed delivery of alternate sources
of electricity; and the costs of obtaining its own patent, such as
attorney's fees expended in making and perfecting a patent application.
The term includes preliminary investigations and detailed planning of
specific projects for securing for customers non-conventional electric
power supplies that rely on technology that has not been verified
previously to be feasible. The term does not include expenditures for
efficiency surveys; studies of management, management techniques and
organization; consumer surveys, advertising, promotions, or items of a
like nature.
31. Retained Earnings (formerly earned surplus) means the accumulated
net income of the utility less distribution to stockholders and
transfers to other capital accounts.
32. Retirement units means those items of electric plant which, when
retired, with or without replacement, are accounted for by crediting the
book cost thereof to the electric plant account in which included.
33. Salvage value means the amount received for property retired,
less any expenses incurred in connection with the sale or in preparing
the property for sale; or, if retained, the amount at which the
material recoverable is chargeable to materials and supplies, or other
appropriate account.
34. Service life means the time between the date electric plant is
includible in electric plant in service, or electric plant leased to
others, and the date of its retirement. If depreciation is accounted
for on a production basis rather than on a time basis, then service life
should be measured in terms of the appropriate unit of production.
35. Service value means the difference between original cost and net
salvage value of electric plant.
36. State means a State admitted to the Union, the District of
Columbia, and any organized Territory of the United States.
37. Subsidiary Company in the case of Major utilities means a company
which is controlled by the utility through ownership of voting stock.
(See Definitions item 5B, Control). A corporate joint venture in which
a corporation is owned by a small group of businesses as a separate and
specific business or project for the mutual benefit of the members of
the group is a subsidiary company for the purposes of this system of
accounts.
38. Utility, as used herein and when not otherwise indicated in the
context, means any public utility or licensee to which this system of
accounts is applicable.
18 CFR 46.6 General Instructions
1. Classification of utilities.
A. For purpose of applying the system of accounts prescribed by the
Commission, electric utilities and licensees are divided into classes,
as follows:
(1) Major. Utilities and licensees that had, in each of the last
three consecutive years, sales or transmission service that exceeded any
one or more of the following:
(1) One million megawatt-hours of total sales;
(2) 100 megawatt-hours of sales for resale;
(3) 500 megawatt-hours of gross interchange out; or
(4) 500 megawatt-hours of wheeling for others (deliveries plus
losses).
(2) Nonmajor. Utilities and licensees that are not classified as
Major (as defined above), and had total sales in each of the last three
consecutive years of 10,000 megawatt-hours or more.
B. This system applies to both Major and Nonmajor utilities and
licensees. Provisions have been incorporated into this system for those
entities which, prior to January 1, 1984, were applying the Commission's
Uniform System of Accounts Prescribed for Public Utilities and Licensees
subject to the Provisions of the Federal Power Act (Class C and Class D)
(part 104 of this chapter, now revoked). The notations (Nonmajor) and
(Major) have been used to indicate those instructions and accounts from
previous systems and classifications, which by definition, are not
interchangeable without causing a loss of detail for the Major
(previously Class A and Class B) or an increase in detail burden on the
Nonmajor (previously Class C and Class D).
C. The class to which any utility or licensee belongs will originally
be determined by its annual megawatt hours in each of the last three
consecutive years, or in the case of a newly established entity, the
projected data shall be the basis. Subsequent changes in classification
shall be made as necessary when the megawatt-hours for each of the three
immediately preceding years shall exceed the upper limit, or be less
than the lower limit of the classification previously applicable to the
utility.
D. Any utility may, at its option, adopt the system of accounts
prescribed by the Commission for any larger class of utilities.
2. Records.
A. Each utility shall keep its books of account, and all other books,
records, and memoranda which support the entries in such books of
account so as to be able to furnish readily full information as to any
item included in any account. Each entry shall be supported by such
detailed information as will permit ready identification, analysis, and
verification of all facts relevant thereto.
B. The books and records referred to herein include not only
accounting records in a limited technical sense, but all other records,
such as minute books, stock books, reports, correspondence, memoranda,
etc., which may be useful in developing the history of or facts
regarding any transaction.
C. No utility shall destroy any such books or records unless the
destruction thereof is permitted by rules and regulations of the
Commission.
D. In addition to prescribed accounts, clearing accounts, temporary
or experimental accounts, and subdivisions of any accounts, may be kept,
provided the integrity of the prescribed accounts is not impaired.
E. All amounts included in the accounts prescribed herein for
electric plant and operating expenses shall be just and reasonable and
any payments or accruals by the utility in excess of just and reasonable
charges shall be included in account 426.5, Other Deductions.
F. The arrangement or sequence of the accounts prescribed herein
shall not be controlling as to the arrangement or sequence in report
forms which may be prescribed by the Commission.
3. Numbering System.
A. The account numbering plan used herein consists of a system of
three-digit whole numbers as follows:
100-199 Assets and other debits.
200-299 Liabilities and other credits.
300-399 Plant accounts.
400-432, 434-435 Income accounts.
433, 436-439 Retained earnings accounts.
440-459 Revenue accounts.
500-599 Production, transmission and distribution expenses.
900-949 Customer accounts, customer service and informational, sales,
and general and administrative expenses.
B. In certain instances, numbers have been skipped in order to allow
for possible later expansion or to permit better coordination with the
numbering system for other utility departments.
C. The numbers prefixed to account titles are to be considered as
parts of the titles. Each utility, however, may adopt for its own
purposes a different system of account numbers (see also general
instruction 2D) provided that the numbers herein prescribed shall appear
in the descriptive headings of the ledger accounts and in the various
sources of original entry; however, if a utility uses a different group
of account numbers and it is not practicable to show the prescribed
account numbers in the various sources of original entry, such reference
to the prescribed account numbers may be omitted from the various
sources of original entry. Moreover, each utility using different
account numbers for its own purposes shall keep readily available a list
of such account numbers which it uses and a reconciliation of such
account numbers with the account numbers provided herein. It is
intended that the utility's records shall be so kept as to permit ready
analysis by prescribed accounts (by direct reference to sources of
original entry to the extent practicable) and to permit preparation of
financial and operating statements directly from such records at the end
of each accounting period according to the prescribed accounts.
4. Accounting Period.
Each utility shall keep its books on a monthly basis so that for each
month all transactions applicable thereto, as nearly as may be
ascertained, shall be entered in the books of the utility. Amounts
applicable or assignable to specific utility departments shall be so
segregated monthly. Each utility shall close its books at the end of
each calendar year unless otherwise authorized by the Commission.
5. Submittal of Questions.
To maintain uniformity of accounting, utilities shall submit
questions of doubtful interpretation to the Commission for consideration
and decision.
6. Item Lists.
Lists of items appearing in the texts of the accounts or elsewhere
herein are for the purpose of more clearly indicating the application of
the prescribed accounting. The lists are intended to be representative,
but not exhaustive. The appearance of an item in a list warrants the
inclusion of the item in the account mentioned only when the text of the
account also indicates inclusion inasmuch as the same item frequently
appears in more than one list. The proper entry in each instance must
be determined by the texts of the accounts.
7. Extraordinary Items.
It is the intent that net income shall reflect all items of profit
and loss during the period with the exception of prior period
adjustments as described in paragraph 7.1 and long-term debt as
described in paragraph 17 below. Those items related to the effects of
events and transactions which have occurred during the current period
and which are of unusual nature and infrequent occurrence shall be
considered extraordinary items. Accordingly, they will be events and
transactions of significant effect which are abnormal and significantly
different from the ordinary and typical activities of the company, and
which would not reasonably be expected to recur in the forseeable
future. (In determining significance, items should be considered
individually and not in the aggregate. However, the effects of a series
of related transactions arising from a single specific and identifiable
event or plan of action should be considered in the aggregate. To be
considered as extraordinary under the above guidelines, an item should
be more than approximately 5 percent of income, computed before
extraordinary items. Commission approval must be obtained to treat an
item of less than 5 percent, as extraordinary. (See accounts 434 and
435.)
7.1 Prior period items.
A. Items of profit and loss related to the following shall be
accounted for as prior period adjustments and excluded from the
determination of net income for the current year:
(1) Correction of an error in the financial statements of a prior
year.
(2) Adjustments that result from realization of income tax benefits
of pre-acquisition operating loss carryforwards of purchased
subsidiaries.
B. All other items of profit and loss recognized during the year
shall be included in the determination of net income for that year.
8. Unaudited Items (Major Utility).
Whenever a financial statement is required by the Commission, if it
is known that a transaction has occurred which affects the accounts but
the amount involved in the transaction and its effect upon the accounts
cannot be determined with absolute accuracy, the amount shall be
estimated and such estimated amount included in the proper accounts.
The utility is not required to anticipate minor items which would not
appreciably affect the accounts.
9. Distribution of Pay and Expenses of Employees.
The charges to electric plant, operating expense and other accounts
for services and expenses of employees engaged in activities chargeable
to various accounts, such as construction, maintenance, and operations,
shall be based upon the actual time engaged in the respective classes of
work, or in case that method is impracticable, upon the basis of a study
of the time actually engaged during a representative period.
10. Payroll Distribution.
Underlying accounting data shall be maintained so that the
distribution of the cost of labor charged direct to the various accounts
will be readily available. Such underlying data shall permit a
reasonably accurate distribution to be made of the cost of labor charged
initially to clearing accounts so that the total labor cost may be
classified among construction, cost of removal, electric operating
functions (steam generation, nuclear generation, hydraulic generation,
transmission, distribution, etc.) and nonutility operations.
11. Accounting to be on Accrual Basis.
A. The utility is required to keep its accounts on the accrual basis.
This requires the inclusion in its accounts of all known transactions
of appreciable amount which affect the accounts. If bills covering such
transactions have not been received or rendered, the amounts shall be
estimated and appropriate adjustments made when the bills are received.
B. When payments are made in advance for items such as insurance,
rents, taxes or interest the amount applicable to future periods shall
be charged to account 165, Prepayments, and spread over the periods to
which applicable by credits to account 165, and charges to the accounts
appropriate for the expenditure.
12. Records for Each Plant (Major Utility).
Separate records shall be maintained by electric plant accounts of
the book cost of each plant owned, including additions by the utility to
plant leased from others, and of the cost of operating and maintaining
each plant owned or operated. The term plant as here used means each
generating station and each transmission line or appropriate group of
transmission lines.
13. Accounting for Other Departments.
If the utility also operates other utility departments, such as gas,
water, etc., it shall keep such accounts for the other departments as
may be prescribed by proper authority and in the absence of prescribed
accounts, it shall keep such accounts as are proper or necessary to
reflect the results of operating each such department. It is not
intended that proprietary and similar accounts which apply to the
utility as a whole shall be departmentalized.
14. Transactions With Associated Companies (Major Utility).
Each utility shall keep its accounts and records so as to be able to
furnish accurately and expeditiously statements of all transactions with
associated companies. The statements may be required to show the
general nature of the transactions, the amounts involved therein and the
amounts included in each account prescribed herein with respect to such
transactions. Transactions with associated companies shall be recorded
in the appropriate accounts for transactions of the same nature.
Nothing herein contained, however, shall be construed as restraining the
utility from subdividing accounts for the purpose of recording
separately transactions with associated companies.
15. Contingent Assets and Liabilities (Major Utility).
Contingent assets represent a possible source of value to the utility
contingent upon the fulfillment of conditions regarded as uncertain.
Contingent liabilities include items which may under certain conditions
become obligations of the utility but which are neither direct nor
assumed liabilities at the date of the balance sheet. The utility shall
be prepared to give a complete statement of significant contingent
assets and liabilities (including cumulative dividends on preference
stock) in its annual report and at such other times as may be requested
by the Commission.
16. Separate Accounts or Records for Each Licensed Project.
The accounts or records of each licensee shall be so kept as to show
for each project (including pumped storage) under license;
(a) The actual legitimate original cost of the project, including the
original cost (or fair value, as determined under section 23 of the
Federal Power Act) of the original project, the original cost of
additions thereto and betterments thereof and credits for property
retired from service, as determined under the Commission's regulations;
(b) The charges for operation and maintenance of the project property
directly assignable to the project;
(c) The credits and debits to the depreciation and amortization
accounts, and the balances in such accounts;
(d) The credits and debits to operating revenue, income, and retained
earnings accounts that can be identified with and directly assigned to
the project.
Note: The purpose of this instruction is to insure that accounts or
records are currently maintained by each licensee from which reports may
be made to the Commission for use in determining the net investment in
each licensed project. The instruction covers only the debit and credit
items appearing in the licensee's accounts which may be identified with
and assigned directly to any licensed project. In the determination of
the net investment as defined in section 3 of the Federal Power Act,
allocations of items affecting the net investment may be required where
direct assignment is not practicable.
17. Long-Term Debt: Premium, Discount and Expense, and Gain or Loss
on Reacquisition.
A. Premium, discount and expense. A separate premium, discount and
expense account shall be maintained for each class and series of
long-term debt (including receivers' certificates) is- sued or assumed
by the utility. The premium will be recorded in account 225,
Unamortized Premium on Long-Term Debt, the discount will be recorded in
account 226, Unamortized Discount on Long-Term Debt -- Debit, and the
expense of issuance shall be recorded in account 181, Unamortized Debt
Expense.
The premium, discount and expense shall be amortized over the life of
the respective issues under a plan which will distribute the amounts
equitably over the life of the securities. The amortization shall be on
a monthly basis, and amounts thereof relating to discount and expense
shall be charged to account 428, Amortization of Debt Discount and
Expense. The amounts relating to premium shall be credited to account
429, Amortization of Premium on Debt -- Credit.
B. Reacquisition, without refunding. When long-term debt is
reacquired or redeemed without being converted into another form of
long-term debt and when the transaction is not in connection with a
refunding operation (primarily redemptions for sinking fund purposes),
the difference between the amount paid upon reacquisition and the face
value; plus any un- amortized premium less any related unamortized debt
expense and reacquisition costs; or less any unamortized discount,
related debt expense and reacquisition costs applicable to the debt
redeemed, retired and canceled, shall be included in account 189,
Unamortized Loss on Reacquired Debt, or account 257, Unamortized Gain on
Reacquired Debt, as appropriate. The utility shall amortize the
recorded amounts equally on a monthly basis over the remaining life of
the respective security issues (old original debt). The amounts so
amortized shall be charged to account 428.1, Amortization of Loss on
Reacquired Debt, or credited to account 429.1, Amortization of Gain on
Reacquired Debt -- Credit, as appropriate.
C. Reacquisition, with refunding. When the redemption of one issue
or series of bonds or other long-term obligations is financed by another
issue or series before the maturity date of the first issue, the
difference between the amount paid upon refunding and the face value;
plus any unamortized premium less related debt expense or less any
unamortized discount and related debt expense, applicable to the debt
refunded, shall be included in account 189, Unamortized Loss on
Reacquired Debt, or account 257, Unamortized Gain on Reacquired Debt, as
appropriate. The utility may elect to account for such amounts as
follows:
(1) Write them off immediately when the amounts are insignificant.
(2) Amortize them by equal monthly amounts over the remainder of the
original life of the issue retired, or
(3) Amortize them by equal monthly amounts over the life of the new
issue.
Once an election is made, it shall be applied on a consistent basis.
The amounts in (1), (2) or (3) above shall be charged to account 428.1.
Amortization of Loss on Reacquired Debt, or credited to account 429.1,
Amortization of Gain on Reacquired Debt -- Credit, as appropriate.
D. Under methods (2) and (3) above, the increase or reduction in
current income taxes resulting from the reacquisition should be
apportioned over the remainder of the original life of the issue retired
or over the life of the new issue, as appropriate, as directed more
specifically in paragraphs E and F below.
E. When the utility recognizes the loss in the year of reacquisition
as a tax deduction, account 410.1, Provision for Deferred Income Taxes,
Utility Operating Income, shall be debited and account 283, Accumulated
Deferred Income Taxes -- Other, shall be credited with the amount of the
related tax effect, such amount to be allocated to the periods affected
in accordance with the provisions of account 283.
F. When the utility chooses to recognize the gain in the year of
reacquisition as a taxable gain, account 411.1, Provision for Deferred
Income Taxes -- Credit, Utility Operating Income, shall be credited and
account 190, Accumulated Deferred Income Taxes, shall be debited with
the amount of the related tax effect, such amount to be allocated to the
periods affected in accordance with the provisions of account 190.
G. When the utility chooses to use the optional privilege of
deferring the tax on the gain attributable to the reacquisition of debt
by reducing the depreciable basis of utility property for tax purposes,
pursuant to section 108 of the Internal Revenue Code, the related tax
effects shall be deferred as the income is recognized for accounting
purposes, and the deferred amounts shall be amortized over the life of
the associated property on a vintage year basis. Account 410.1,
Provision for Deferred Income Taxes, Utility Operating Income, shall be
debited, and account 282, Accumulated Deferred Income Taxes -- Other
Property shall be credited with an amount equal to the estimated income
tax effect applicable to the portion of the income, attributable to
reacquired debt, recognized for accounting purposes during the period.
Account 282 shall be debited and account 411.1, Provision for Deferred
Income Taxes -- Credit, Utility Operating Income, shall be credited with
an amount equal to the estimated income tax effects, during the life of
the property, attributable to the reduction in the depreciable basis for
tax purposes.
H. The tax effects relating to gain or loss shall be allocated as
above to utility operations except in cases where a portion of the debt
reacquired is directly applicable to nonutility operations. In that
event, the related portion of the tax effects shall be allocated to
nonutility operations. Where it can be established that reacquired debt
is generally applicable to both utility and nonutility operations, the
tax effects shall be allocated between utility and nonutility operations
based on the ratio of net investment in utility plant to net investment
in nonutility plant.
I. Premium, discount, or expense on debt shall not be included as an
element in the cost of construction or acquisition of property (tangible
or intangible), except under the provisions of account 432, Allowance
for Borrowed Funds Used During Construction -- Credit.
J. Alternate method. Where a regulatory authority or a group of
regulatory authorities having prime rate jurisdiction over the utility
specifically disallows the rate principle of amortizing gains or losses
on reacquisition of long-term debt without refunding, and does not apply
the gain or loss to reduce interest charges in computing the allowed
rate of return for rate purposes, then the following alternate method
may be used to account for gains or losses relating to reacquisition of
long-term debt, with or without refunding.
(1) The difference between the amount paid upon reacquisition of any
long-term debt and the face value, adjusted for unamortized discount,
expenses or premium, as the case may be, applicable to the debt redeemed
shall be recognized currently in income and recorded in account 421,
Miscellaneous Nonoperating Income, or account 426.5, Other Deductions.
(2) When this alternate method of accounting is used, the utility
shall include a footnote to each financial statement, prepared for
public use, explaining why this method is being used along with the
treatment given for ratemaking purposes.
18. Comprehensive Interperiod In- come Tax Allocation.
A. Where there are timing differences between the periods in which
transactions affect taxable income and the periods in which they enter
into the determination of pretax accounting income, the income tax
effects of such transactions are to be recognized in the periods in
which the differences between book accounting income and taxable income
arise and in the periods in which the differences reverse using the
deferred tax method. In general, comprehensive interperiod tax
allocation should be followed whenever transactions enter into the
determination of pretax accounting income for the period even though
some transactions may affect the determination of taxes payable in a
different period, as further qualified below.
B. Utilities are not required to utilize comprehensive interperiod
income tax allocation until the deferred income taxes are included as an
expense in the rate level by the regulatory authority having rate
jurisdiction over the utility. Where comprehensive interperiod tax
allocation accounting is not practiced the utility shall include as a
note to each financial statement, prepared for public use, a footnote
explanation setting forth the utility's accounting policies with respect
to interperiod tax allocation and describing the treatment for
ratemaking purposes of the tax timing differences by regulatory
authorities having rate jurisdiction.
C. Should the utility be subject to more than one agency having rate
jurisdiction, its accounts shall appropriately reflect the ratemaking
treatment (deferral or flow through) of each jurisdiction.
D. Once comprehensive interperiod tax allocation has been initiated
either in whole or in part it shall be practiced on a consistent basis
and shall not be changed or discontinued without prior Commission
approval.
E. Tax effects deferred currently will be recorded as deferred debits
or deferred credits in accounts 190, Accumulated Deferred Income Taxes,
281, Accumulated Deferred Income Tax- es -- Accelerated Amortization
Property, 282, Accumulated Deferred Income Taxes -- Other Property, and
283, Accumulated Deferred Income Taxes -- Other, as appropriate. The
resulting amounts recorded in these accounts shall be disposed of as
prescribed in this system of accounts or as otherwise authorized by the
Commission.
19. Criteria for classifying leases.
A. If at its inception a lease meets one or more of the following
criteria, the lease shall be classified as a capital lease. Otherwise,
it shall be classified as an operating lease.
(1) The lease transfers ownership of the property to the lessee by
the end of the lease term
(2) The lease contains a bargain purchase option.
(3) The lease term is equal to 75 percent or more of the estimated
economic life of the leased property. However, if the beginning of the
lease term falls within the last 25 percent of the total estimated
economic life of the leased property, including earlier years of use,
this criterion shall not be used for purposes of classifying the lease.
(4) The present value at the beginning of the lease term of the
minimum lease payments, excluding that portion of the payments
representing executory costs such as insurance, maintenance, and taxes
to be paid by the lessor, including any profit thereon, equals or
exceeds 90 percent of the excees of the fair value of the leased
property to the lessor at the inception of the lease over any related
investment tax credit retained by the lessor and expected to be realized
by the lessor. However, if the beginning of the lease term falls within
the last 25 percent of the total estimated economic life of the leased
property, including earlier years of use, this criterion shall not be
used for purposes of classifying the lease. The lessee utility shall
compute the present value of the minimum lease payments using its
incremental borrowing rate, unless (A) it is practicable for the utility
to learn the implicit rate computed by the lessor, and (B) the implicit
rate computed by the lessor is less than the lessee's incremental
borrowing rate. If both of those conditions are met, the lessee shall
use the implicit rate.
B. If at any time the lessee and lessor agree to change the
provisions of the lease, other than by renewing the lease or extending
its term, in a manner that would have resulted in a different
classification of the lease under the criteria in paragraph A had the
changed terms been in effect at the inception of the lease, the revised
agreement shall be considered as a new agreement over its term, and the
criteria in paragraph A shall be applied for purposes of classifying the
new lease. Likewise, any action that extends the lease beyond the
expiration of the existing lease term, such as the exercise of a lease
renewal option other than those already included in the lease term,
shall be considered as a new agreement and shall be classified according
to the above provisions. Changes in estimates (for example, changes in
estimates of the economic life or of the residual value of the leased
property) or changes in circumstances (for example, default by the
lessee) shall not give rise to a new classification of a lease for
accounting purposes.
20. Accounting for leases.
A. All leases shall be classified as either capital or operating
leases. The accounting for capitalized leases is effective January 1,
1984, except for the retroactive classification of certain leases which,
in accordance with FASB No. 71, will not be required to be capitalized
until after a three year transition period. For the purpose of
reporting to the FERC, the transition period shall be deemed to end
December 31, 1986.
B. The utility shall record a capital lease as an asset in account
101.1, Property under Capital Leases, Account 120.6, Nuclear Fuel under
Capital Leases, or account 121, Nonutility Property, as appropriate, and
an obligation in account 227, Obligations under Capital Leases --
Noncurrent, or account 243, Obligations under Capital Leases -- Current,
at an amount equal to the present value at the beginning of the lease
term of minimum lease payments during the lease term, excluding that
portion of the payments representing executory costs such as insurance,
maintenance, and taxes to be paid by the lessor, together with any
profit thereon. However, if the amount so determined exceeds the fair
value of the leased property at the inception of the lease, the amount
recorded as the asset and obligation shall be the fair value.
C. Rental payments on all leases shall be charged to rent expense,
fuel expense, construction work in progress, or other appropriate
accounts as they become payable.
D. For a capital lease, for each period during the lease term, the
amounts recorded for the asset and obligation shall be reduced by an
amount equal to the portion of each lease payment that would have been
allocated to the reduction of the obligation, if the payment had been
treated as a payment on an installment obligation (liability) and
allocated between interest expense and a reduction of the obligation so
as to produce a constant periodic rate of interest on the remaining
balance.
18 CFR 46.6 Electric Plant Instructions
1. Classification of electric plant at effective date of system of
accounts (Major utilities).
A. The electric plant accounts provided herein are the same as those
contained in the prior system of accounts except for inclusion of
accounts for nuclear production plant and some changes in classification
in the general equipment accounts. Except for these changes, the
balances in the various plant accounts, as determined under the prior
system of accounts, should be carried forward. Any remaining balance of
plant which has not yet been classified, pursuant to the requirements of
the prior system, shall be classified in accordance with the following
instructions.
B. The cost to the utility of its unclassified plant shall be
ascertained by analysis of the utility's records. Adjustments shall not
be made to record in utility plant accounts amounts previously charged
to operating expenses or to income deductions in accordance with the
uniform system of accounts in effect at the time or in accordance with
the discretion of management as exercised under a uniform system of
accounts, or under accounting practices previously followed.
C. The detailed electric plant accounts (301 to 399, inclusive) shall
be stated on the basis of cost to the utility of plant constructed by it
and the original cost, estimated if not known, of plant acquired as an
operating unit or system. The difference between the original cost, as
above, and the cost to the utility of electric plant after giving effect
to any accumulated provision for depreciation or amortization shall be
recorded in account 114, Electric Plant Acquisition Adjustments. The
original cost of electric plant shall be determined by analysis of the
utility's records or those of the predecessor or vendor companies with
respect to electric plant previously acquired as operating units or
systems and the difference between the original cost so determined, less
accumulated provisions for depreciation and amortization and the cost to
the utility with necessary adjustments for retirements from the date of
acquisition, shall be entered in account 114, Electric Plant Acquisition
Adjustments. Any difference between the cost of electric plant and its
book cost, when not properly includible in other accounts, shall be
recorded in account 116, Other Electric Plant Adjustments.
D. Plant acquired by lease which qualifies as capital lease property
under General Instruction 19. Criteria for Classifying Leases, shall be
recorded in Account 101.1, Property under Capital Leases, or Account
120.6, Nuclear Fuel under Capital Leases, as appropriate.
2. Electric Plant To Be Recorded at Cost.
A. All amounts included in the accounts for electric plant acquired
as an operating unit or system, except as otherwise provided in the
texts of the intangible plant accounts, shall be stated at the cost
incurred by the person who first devoted the property to utility
service. All other electric plant shall be included in the accounts at
the cost incurred by the utility, except for property acquired by lease
which qualifies as capital lease property under General Instruction 19.
Criteria for Classifying Leases, and is recorded in Account 101.1,
Property under Capital Leases, or Account 120.6, Nuclear Fuel under
Capital Leases. Where the term cost is used in the detailed plant
accounts, it shall have the meaning stated in this paragraph.
B. When the consideration given for property is other than cash, the
value of such consideration shall be determined on a cash basis (see,
however, definition 9). In the entry recording such transition, the
actual consideration shall be described with sufficient particularity to
identify it. The utility shall be prepared to furnish the Commission
the particulars of its determination of the cash value of the
consideration if other than cash.
C. When property is purchased under a plan involving deferred
payments, no charge shall be made to the electric plant accounts for
interest, insurance, or other expenditures occasioned solely by such
form of payment.
D. The electric plant accounts shall not include the cost or other
value of electric plant contributed to the company. Contributions in
the form of money or its equivalent toward the construction of electric
plant shall be credited to accounts charged with the cost of such
construction. Plant constructed from contributions of cash or its
equivalent shall be shown as a reduction to gross plant constructed when
assembling cost data in work orders for posting to plant ledgers of
accounts. The accumulated gross costs of plant accumulated in the work
order shall be recorded as a debit in the plant ledger of accounts along
with the related amount of contributions concurrently be recorded as a
credit.
3. Components of construction cost.
A. For Major utilities, the cost of construction properly includible
in the electric plant accounts shall include, where applicable, the
direct and overhead cost as listed and defined hereunder:
(1) Contract work includes amounts paid for work performed under
contract by other companies, firms, or individuals, costs incident to
the award of such contracts, and the inspection of such work.
(2) Labor includes the pay and expenses of employees of the utility
engaged on construction work, and related workmen's compensation
insurance, payroll taxes and similar items of expense. It does not
include the pay and expenses of employees which are distributed to
construction through clearing accounts nor the pay and expenses included
in other items hereunder.
(3) Materials and supplies includes the purchase price at the point
of free delivery plus customs duties, excise taxes, the cost of
inspection, loading and transportation, the related stores expenses, and
the cost of fabricated materials from the utility's shop. In
determining the cost of materials and supplies used for construction,
proper allowance shall be made for unused materials and supplies, for
materials recovered from temporary structures used in performing the
work involved, and for discounts allowed and realized in the purchase of
materials and supplies.
Note: The cost of individual items of equipment of small value (for
example, $500 or less) or of short life, including small portable tools
and implements, shall not be charged to utility plant accounts unless
the correctness of the accounting therefor is verified by current
inventories. The cost shall be charged to the appropriate operating
expense or clearing accounts, according to the use of such items, or, if
such items are consumed directly in construction work, the cost shall be
included as part of the cost of the construction
(4) Transportation includes the cost of transporting employees,
materials and supplies, tools, purchased equipment, and other work
equipment (when not under own power) to and from points of construction.
It includes amounts paid to others as well as the cost of operating the
utility's own transportation equipment. (See item 5 following.)
(5) Special machine service includes the cost of labor (optional),
materials and supplies, depreciation, and other expenses incurred in the
maintenance, operation and use of special machines, such as steam
shovels, pile drivers, derricks, ditchers, scrapers, material unloaders,
and other labor saving machines; also expenditures for rental,
maintenance and operation of machines of others. It does not include
the cost of small tools and other individual items of small value or
short life which are included in the cost of materials and supplies.
(See item 3, above.) When a particular construction job requires the use
for an extended period of time of special machines, transportation or
other equipment, the net book cost thereof, less the appraised or
salvage value at time of release from the job, shall be included in the
cost of construction.
(6) Shop service includes the proportion of the expense of the
utility's shop department assignable to construction work except that
the cost of fabricated materials from the utility's shop shall be
included in materials and supplies.
(7) Protection includes the cost of protecting the utility's property
from fire or other casualties and the cost of preventing damages to
others, or to the property of others, including payments for discovery
or extinguishment of fires, cost of apprehending and prosecuting
incendiaries, witness fees in relation thereto, amounts paid to
municipalities and others for fire protection, and other analogous items
of expenditures in connection with construction work.
(8) Injuries and damages includes expenditures or losses in
connection with construction work on account of injuries to persons and
damages to the property of others; also the cost of investigation of
and defense against actions for such injuries and damages. Insurance
recovered or recoverable on account of compensation paid for injuries to
persons incident to construction shall be credited to the account or
accounts to which such compensation is charged Insurance recovered or
recoverable on account of property damages incident to construction
shall be credited to the account or accounts charged with the cost of
the damages.
(9) Privileges and permits includes payments for and expenses
incurred in securing temporary privileges, permits or rights in
connection with construction work, such as for the use of private or
public property, streets, or highways, but it does not include rents, or
amounts chargeable as franchises and consents for which see account 302,
Franchises and Consents.
(10) Rents includes amounts paid for the use of construction quarters
and office space occupied by construction forces and amounts properly
includible in construction costs for such facilities jointly used.
(11) Engineering and supervision includes the portion of the pay and
expenses of engineers, surveyors, draftsmen, inspectors, superintendents
and their assistants applicable to construction work.
(12) General administration capitalized includes the portion of the
pay and expenses of the general officers and administrative and general
expenses applicable to construction work.
(13) Engineering services includes amounts paid to other companies,
firms, or individuals engaged by the utility to plan, design, prepare
estimates, supervise, inspect, or give general advice and assistance in
connection with construction work.
(14) Insurance includes premiums paid or amounts provided or reserved
as self-insurance for the protection against loss and damages in
connection with construction, by fire or other casualty injuries to or
death of persons other than employees, damages to property of others,
defalcation of employees and agents, and the nonperformance of
contractual obligations of others. It does not include workmen's
compensation or similar insurance on employees included as labor in item
2, above.
(15) Law expenditures includes the general law expenditures incurred
in connection with construction and the court and legal costs directly
related thereto, other than law expenses included in protection, item 7,
and in injuries and damages, item 8.
(16) Taxes includes taxes on physical property (including land)
during the period of construction and other taxes properly includible in
construction costs before the facilities become available for service.
(17) Allowance for funds used during construction (Major and Nonmajor
Utilities) includes the net cost for the period of construction of
borrowed funds used for construction purposes and a reasonable rate on
other funds when so used, not to exceed, without prior approval of the
Commission, allowances computed in accordance with the formula
prescribed in paragraph (a) of this subparagraph. No allowance for
funds used during construction charges shall be included in these
accounts upon expenditures for construction projects which have been
abandoned.
(a) The formula and elements for the computation of the allowance for
funds used during construction shall be:
Ai=s(S/W)+d(D/D+P+C)(1^S/W)
Ae=(1^S/W)(p(P/D+P+C)+c(C/D+P+C))
Ai=Gross allowance for borrowed funds used during construction rate.
Ae=Allowance for other funds used during construction rate.
S=Average short-term debt.
s=Short-term debt interest rate.
D=Long-term debt.
d=Long-term debt interest rate.
P=Preferred stock.
p=Preferred stock cost rate.
C=Common equity.
c=Common equity cost rate.
W=Average balance in construction work in progress plus nuclear fuel
in process of refinement, conversion, enrichment and fabrication.
(b) The rates shall be determined annually. The balances for
long-term debt, preferred stock and common equity shall be the actual
book balances as of the end of the prior year. The cost rates for
long-term debt and preferred stock shall be the weighted average cost
determined in the manner indicated in 35.13 of the Commission's
Regulations Under the Federal Power Act. The cost rate for common
equity shall be the rate granted common equity in the last rate
proceeding before the ratemaking body having primary rate jurisdictions.
If such cost rate is not available, the average rate actually earned
during the preceding three years shall be used. The short-term debt
balances and related cost and the average balance for construction work
in progress plus nuclear fuel in process of refinement, conversion,
enrichment, and fabrication shall be estimated for the current year with
appropriate adjustments as actual data becomes available.
Note: When a part only of a plant or project is placed in operation
or is completed and ready for service but the construction work as a
whole is incomplete, that part of the cost of the property placed in
operation or ready for service, shall be treated as Electric Plant in
Service and allowance for funds used during construction thereon as a
charge to construction shall cease. Allowance for funds used during
construction on that part of the cost of the plant which is incomplete
may be continued as a charge to construction until such time as it is
placed in operation or is ready for service, except as limited in item
17, above.
(18) Earnings and expenses during construction. The earnings and
expenses during construction shall constitute a component of
construction costs.
(a) The earnings shall include revenues received or earned for power
produced by generating plants during the construction period and sold or
used by the utility. Where such power is sold to an independent
purchaser before intermingling with power generated by other plants, the
credit shall consist of the selling price of the energy. Where the
power generated by a plant under construction is delivered to the
utility's electric system for distribution and sale, or is delivered to
an associated company, or is delivered to and used by the utility for
purposes other than distribution and sale (for manufacturing or
industrial use, for example), the credit shall be the fair value of the
energy so delivered. The revenues shall also include rentals for lands,
buildings etc., and miscellaneous receipts not properly includible in
other accounts.
(b) The expenses shall consist of the cost of operating the power
plant, and other costs incident to the production and delivery of the
power for which construction is credited under paragraph (a), above,
including the cost of repairs and other expenses of operating and
maintaining lands, buildings, and other property, and other
miscellaneous and like expenses not properly includible in other
accounts.
(19) Training costs (Major and Nonmajor Utilities). When it is
necessary that employees be trained to operate or maintain plant
facilities that are being constructed and such facilities are not
conventional in nature, or are new to the company's operations, these
costs may be capitalized as a component of construction cost. Once
plant is placed in service, the capitalization of training costs shall
cease and subsequent training costs shall be expensed. (See Operating
Expense Instruction 4.)
(20) Studies includes the costs of studies such as nuclear
operational, safety, or seismic studies or environmental studies
mandated by regulatory bodies relative to plant under construction.
Studies relative to facilities in service shall be charged to account
183, Preliminary Survey and Investigation Charges.
B. For Nonmajor utilities, the cost of construction of property
chargeable to the electric plant accounts shall include, where
applicable, the cost of labor; materials and supplies; transportation;
work done by others for the utility; injuries and damages incurred in
construction work; privileges and permits; special machine service;
allowance for funds used during construction, not to exceed without
prior approval of the Commission, amounts computed in accordance with
the formula prescribed in paragraph (a) of paragraph (17) of this
Instruction; training costs; and such portion of general engineering,
administrative salaries and expenses, insurance, taxes, and other
analogous items as may be properly includable in construction costs.
(See Operating Expense Instruction 4.) The rates and balances of short
and long-term debt, preferred stock, common equity and construction work
in progress shall be determined as prescribed in paragraph (b) of
paragraph (17) of this Instruction.
4. Overhead Construction Costs.
A. All overhead construction costs, such as engineering, supervision,
general office salaries and expenses, construction engineering and
supervision by others than the accounting utility, law expenses,
insurance, injuries and damages, relief and pensions, taxes and
interest, shall be charged to particular jobs or units on the basis of
the amounts of such overheads reasonably applicable thereto, to the end
that each job or unit shall bear its equitable proportion of such costs
and that the entire cost of the unit, both direct and overhead, shall be
deducted from the plant accounts at the time the property is retired.
B. As far as practicable, the determination of pay roll charges
includible in construction overheads shall be based on time card
distributions thereof. Where this procedure is impractical, special
studies shall be made periodically of the time of supervisory employees
devoted to construction activities to the end that only such overhead
costs as have a definite relation to construction shall be capitalized.
The addition to direct construction costs of arbitrary percentages or
amounts to cover assumed overhead costs is not permitted.
C. For Major utilities, the records supporting the entries for
overhead construction costs shall be so kept as to show the total amount
of each overhead for each year, the nature and amount of each overhead
expenditure charged to each construction work order and to each electric
plant account, and the bases of distribution of such costs.
5. Electric Plant Purchased or Sold.
A. When electric plant constituting an operating unit or system is
acquired by purchase, merger, consolidation, liquidation, or otherwise,
after the effective date of this system of accounts, the costs of
acquisition, including expenses incidental thereto properly includible
in electric plant, shall be charged to account 102, Electric Plant
Purchased or Sold.
B. The accounting for the acquisition shall then be completed as
follows:
(1) The original cost of plant, estimated if not known, shall be
credited to account 102, Electric Plant Purchased or Sold, and
concurrently charged to the appropriate electric plant in service
accounts and to account 104, Electric Plant Leased to Others, account
105, Electric Plant Held for Future Use, and account 107, Construction
Work in Progress -- Electric, as appropriate.
(2) The depreciation and amortization applicable to the original cost
of the properties purchased shall be charged to account 102, Electric
Plant Purchased or Sold, and concurrently credited to the appropriate
account for accumulated provision for depreciation or amortization.
(3) The cost to the utility of any property includible in account
121, Nonutility Property, shall be transferred thereto.
(4) The amount remaining in account 102, Electric Plant Purchased or
Sold, shall then be closed to account 114, Electric Plant Acquisition
Adjustments.
C. If property acquired in the purchase of an operating unit or
system is in such physical condition when acquired that it is necessary
substantially to rehabilitate it in order to bring the property up to
the standards of the utility, the cost of such work, except
replacements, shall be accounted for as a part of the purchase price of
the property.
D. When any property acquired as an operating unit or system includes
duplicate or other plant which will be retired by the accounting utility
in the reconstruction of the acquired property or its consolidation with
previously owned property, the proposed accounting for such property
shall be presented to the Commission.
E. In connection with the acquisition of electric plant constituting
an operating unit or system, the utility shall procure, if possible, all
existing records relating to the property acquired, or certified copies
thereof, and shall preserve such records in conformity with regulations
or practices governing the preservation of records of its own
construction.
F. When electric plant constituting an operating unit or system is
sold, conveyed, or transferred to another by sale, merger,
consolidation, or otherwise, the book cost of the property sold or
transferred to another shall be credited to the appropriate utility
plant accounts, including amounts carried in account 114, Electric Plant
Acquisition Adjustments. The amounts (estimated if not known) carried
with respect thereto in the accounts for accumulated provision for
depreciation and amortization and in account 252, Customer Advances for
Construction, shall be charged to such accounts and contra entries made
to account 102, Electric Plant Purchased or Sold. Unless otherwise
ordered by the Commission, the difference, if any, between (1) the net
amount of debits and credits and (2) the consideration received for the
property (less commissions and other expenses of making the sale) shall
be included in account 421.1. Gain on Disposition of Property, or
account 421.2, Loss on Disposition of Property. (See account 102,
Electric Plant Purchased or Sold.)
Note: In cases where existing utilities merge or consolidate because
of financial or operating reasons or statutory requirements rather than
as a means of transferring title of purchased properties to a new owner,
the accounts of the constituent utilities, with the approval of the
Commission, may be combined. In the event original cost has not been
determined, the resulting utility shall proceed to determine such cost
as outlined herein.
6. Expenditures on Leased Property.
A. The cost of substantial initial improvements (including repairs,
rear-rangements, additions, and betterments) made in the course of
preparing for utility service property leased for a period of more than
one year, and the cost of subsequent substantial additions,
replacements, or betterments to such property, shall be charged to the
electric plant account appropriate for the class of property leased. If
the service life of the improvements is terminable by action of the
lease, the cost, less net salvage, of the improvements shall be spread
over the life of the lease by charges to account 404, Amortization of
Limited-Term Electric Plant. However, if the service life is not
terminated by action of the lease but by depreciation proper, the cost
of the improvements, less net salvage, shall be accounted for as
depreciable plant. The provisions of this paragraph are applicable to
property leased under either capital leases or operating leases.
B. If improvements made to property leased for a period of more than
one year are of relatively minor cost, or if the lease is for a period
of not more than one year, the cost of the improvements shall be charged
to the account in which the rent is included, either directly or by
amortization thereof.
7. Land and Land Rights.
A. The accounts for land and land rights shall include the cost of
land owned in fee by the utility and rights. Interests, and privileges
held by the utility in land owned by others, such as leaseholds,
easements, water and water power rights, diversion rights, submersion
rights, rights-of-way, and other like interests in land. Do not include
in the accounts for land and land rights and rights-of-way costs
incurred in connection with first clearing and grading of land and
rights-of-way and the damage costs associated with the construction and
installation of plant. Such costs shall be included in the appropriate
plant accounts directly benefited.
B. Where special assessments for public improvements provide for
deferred payments, the full amount of the assessments shall be charged
to the appropriate land account and the unpaid balance shall be carried
in an appropriate liability account. Interest on unpaid balances shall
be charged to the appropriate interest account. If any part of the cost
of public improvements is included in the general tax levy, the amount
thereof shall be charged to the appropriate tax account.
C. The net profit from the sale of timber, cord wood, sand, gravel,
other resources or other property acquired with the rights-of-way or
other lands shall be credited to the appropriate plant account to which
related. Where land is held for a considerable period of time and
timber and other natural resources on the land at the time of purchase
increases in value, the net profit (after giving effect to the cost of
the natural resources) from the sales of timber or its products or other
natural resources shall be credited to the appropriate utility operating
income account when such land has been recorded in account 105, Electric
Plant Held for Future Use or classified as plant in service, otherwise
to account 421, Miscellaneous Nonoperating Income.
D. Separate entries shall be made for the acquisition, transfer, or
retirement of each parcel of land, and each land right (except rights of
way for distribution lines), or water right, having a life of more than
one year. A record shall be maintained showing the nature of ownership,
full legal description, area, map reference, purpose for which used,
city, county, and tax district on which situated, from whom purchased or
to whom sold, payment given or received, other costs, contract date and
number, date of recording of deed, and book and page of record. Entries
transferring or retiring land or land rights shall refer to the original
entry recording its acquisition.
E. Any difference between the amount received from the sale of land
or land rights, less agents' commissions and other costs incident to the
sale, and the book cost of such land or rights, shall be included in
account 411.6, Gains from Disposition of Utility Plant, or 411.7, Losses
from Disposition of Utility Plant when such property has been recorded
in account 105, Electric Plant Held for Future Use, otherwise to account
421.1, Gain on Disposition of Property or 421.2, Loss on Disposition of
Property, as appropriate, unless a reserve therefor has been authorized
and provided. Appropriate adjustments of the accounts shall be made
with respect to any structures or improvements located on land sold.
F. The cost of buildings and other improvements (other than public
improvements) shall not be included in the land accounts. If at the
time of acquisition of an interest in land such interest extends to
buildings or other improvements (other than public improvements) which
are then devoted to utility operations, the land and improvements shall
be separately appraised and the cost allocated to land and buildings or
improvements on the basis of the appraisals. If the improvements are
removed or wrecked without being used in operations, the cost of
removing or wrecking shall be charged and the salvage credited to the
account in which the cost of the land is recorded.
G. When the purchase of land for electric operations requires the
purchase of more land than needed for such purposes, the charge to the
specific land account shall be based upon the cost of the land
purchased, less the fair market value of that portion of the land which
is not to be used in utility operations. The portion of the cost
measured by the fair market value of the land not to be used shall be
included in account 105, Electric Plant Held for Future Use, or account
121, Nonutility Property, as appropriate.
H. Provisions shall be made for amortizing amounts carried in the
accounts for limited-term interests in land so as to apportion equitably
the cost of each interest over the life thereof. (For Major utilities,
see account 111, Accumulated Provision for Amortization of Electric
Plant Utility, and account 404, Amortization of Limited-Term Electric
Plant. For Nonmajor utilities, see account 404.)
I. The items of cost to be included in the accounts for land and land
rights are as follows:
1. Bulkheads, buried, not requiring maintenance or replacement.
2. Cost, first, of acquisition including mortgages and other liens
assumed (but not subsequent interest thereon).
3. (Reserved)
4. Condemnation proceedings, including court and counsel costs.
5. Consents and abutting damages, payment for.
6. Conveyancers' and notaries' fees.
7. Fees, commissions, and salaries to brokers, agents and others in
connection with the acquisition of the land or land rights.
8. (Reserved)
9. Leases, cost of voiding upon purchase to secure possession of
land.
10. Removing, relocating, or reconstructing, property of others, such
as buildings, highways, railroads, bridges, cemeteries, churches,
telephone and power lines, etc., in order to acquire quiet possession.
11. Retaining walls unless identified with structures.
12. Special assessments levied by public authorities for public
improvements on the basis of benefits for new roads, new bridges, new
sewers, new curbing, new pavements, and other public improvements, but
not taxes levied to provide for the maintenance of such improvements.
13. Surveys in connection with the acquisition, but not amounts paid
for topographical surveys and maps where such costs are attributable to
structures or plant equipment erected or to be erected or installed on
such land.
14. Taxes assumed, accrued to date of transfer of title.
15. Title, examining, clearing, insuring and registering in
connection with the acquisition and defending against claims relating to
the period prior to the acquisition.
16. Appraisals prior to closing title.
17. Cost of dealing with distributees or legatees residing outside of
the state or county, such as recording power of attorney, recording will
or exemplification of will, recording satisfaction of state tax.
18. Filing satisfaction of mortgage.
19. Documentary stamps.
20. Photographs of property at acquisition.
21. Fees and expenses incurred in the acquisition of water rights and
grants.
22. Cost of fill to extend bulkhead line over land under water, where
riparian rights are held, which is not occasioned by the erection of a
structure.
23. Sidewalks and curbs constructed by the utility on public
property.
24. Labor and expenses in connection with securing rights of way,
where performed by company employees and company agents.
8. Structures and Improvements.
A. The accounts for structures and improvements shall include the
cost of all buildings and facilities to house, support, or safeguard
property or persons, including all fixtures permanently attached to and
made a part of buildings and which cannot be removed therefrom without
cutting into the walls, ceilings, or floors, or without in some way
impairing the buildings, and improvements of a permanent character on or
to land. Also include those costs incurred in connection with the first
clearing and grading of land and rights-of-way and the damage costs
associated with construction and installation of plant.
B. The cost of specially provided foundations not intended to outlast
the machinery or apparatus for which provided, and the cost of angle
irons, castings, etc., installed at the base of an item of equipment,
shall be charged to the same account as the cost of the machinery,
apparatus, or equipment.
C. Minor buildings and structures, such as valve towers, patrolmen's
towers, telephone stations, fish and wildlife, and recreation
facilities, etc., which are used directly in connection with or form a
part of a reservoir, dam, waterway, etc., shall be considered a part of
the facility in connection with which constructed or operated and the
cost thereof accounted for accordingly.
D. Where furnaces and boilers are used primarily for furnishing steam
for some particular department and only incidentally for furnishing
steam for heating a building and operating the equipment therein, the
entire cost of such furnaces and boilers shall be charged to the
appropriate plant account, and no part to the building account.
E. Where the structure of a dam forms also the foundation of the
power plant building, such foundation shall be considered a part of the
dam.
F. The cost of disposing of materials excavated in connection with
construction of structures shall be considered as a part of the cost of
such work, except as follows: (a) When such material is used for
filling, the cost of loading, hauling, and dumping shall be equitably
apportioned between the work in connection with which the removal occurs
and the work in connection with which the material is used; (b) when
such material is sold, the net amount realized from such sales shall be
credited to the work in connection with which the removal occurs. If
the amount realized from the sale of excavated materials exceeds the
removal costs and the costs in connection with the sale, the excess
shall be credited to the land account in which the site is carried.
G. Lighting or other fixtures temporarily attached to buildings for
purposes of display or demonstration shall not be included in the cost
of the building but in the appropriate equipment account.
H. The items of cost to be included in the accounts for structures
and improvements are as follows:
1. Architects' plans and specifications including supervision.
2. Ash pits (when located within the building). (Major Utilities)
3. Athletic field structures and improvements.
4. Boilers, furnaces, piping, wiring, fixtures, and machinery for
heating, lighting, signaling, ventilating, and air-conditioning systems,
plumbing, vacuum cleaning systems, incinerator and smoke pipe, flues,
etc.
5. Bulkheads, including dredging, riprap fill, piling, decking,
concrete, fenders, etc., when exposed and subject to maintenance and
replacement.
6. Chimneys (Major Utilities).
7. Coal bins and bunkers.
8. Commissions and fees to brokers, agents, architects, and others.
9. Conduit (not to be removed) with its contents.
10. Damages to abutting property during construction.
11. Docks (Major Utilities).
12. Door checks and door stops (Major Utilities).
13. Drainage and sewerage systems.
14. Elevators, cranes, hoists, etc., and the machinery for operating
them.
15. Excavation, including shoring, bracing, bridging, refill and
disposal of excess excavated material, cofferdams around foundation,
pumping water from cofferdams during construction, and test borings.
16. Fences and fence curbs (not including protective fences isolating
items of equipment, which shall be charged to the appropriate equipment
account).
17. Fire protection systems when forming a part of a structure.
18. Flagpole (Major Utilities).
19. Floor covering (permanently attached) (Major Utilities).
20. Foundations and piers for machinery, constructed as a permanent
part of a building or other item listed herein.
21. Grading and clearing when directly occasioned by the building of
a structure.
22. Intrasite communication system, poles, pole fixtures, wires, and
cables.
23. Landscaping, lawns, shrubbery, etc.
24. Leases, voiding upon purchase to secure possession of structures.
25. Leased property, expenditures on.
26. Lighting fixtures and outside lighting system.
27. Mailchutes when part of a building (Major Utilities).
28. Marquee, permanently attached to building (Major Utilities).
29. Painting, first cost.
30. Permanent paving, concrete, brick, flagstone, asphalt, etc.,
within the property lines.
31. Partitions, including movable (Major Utilities).
32. Permits and privileges.
33. Platforms, railings, and gratings when constructed as a part of a
structure.
34. Power boards for services to a building (Major Utilities).
35. Refrigerating systems for general use (Major Utilities).
36. Retaining walls except when identified with land.
37. Roadways, railroads, bridges, and trestles intrasite except
railroads provided for in equipment accounts.
38. Roofs (Major Utilities).
39. Scales, connected to and forming a part of a structure (Major
Utilities).
40. Screens (Major Utilities).
41. Sewer systems, for general use (Major Utilities).
42. Sidewalks, culverts, curbs and streets constructed by the utility
on its property (Major Utilities).
43. Sprinkling systems (Major Utilities).
44. Sump pumps and pits (Major Utilities).
45. Stacks -- brick, steel, or concrete, when set on foundation
forming part of general foundation and steelwork of a building.
46. Steel inspection during construction (Major Utilities).
47. Storage facilities constituting a part of a building.
48. Storm doors and windows (Major Utilities).
49. Subways, areaways, and tunnels, directly connected to and forming
part of a structure.
50. Tanks, constructed as part of a building or as a distinct
structural unit.
51. Temporary heating during construction (net cost) (Major
Utilities).
52. Temporary water connection during construction (net cost) (Major
Utilities).
53. Temporary shanties and other facilities used during construction
(net cost)
54. Topographical maps (Major Utilities).
55. Tunnels, intake and discharge, when constructed as part of a
structure, including sluice gates, and those constructed to house mains.
56. Vaults constructed as part of a building.
57. Watchmen's sheds and clock systems (net cost when used during
construction only) (Major Utilities).
58. Water basins or reservoirs.
59. Water front improvements (Major Utilities).
60. Water meters and supply system for a building or for general
company purposes (Major Utilities).
61. Water supply piping, hydrants and wells (Major Utilities).
62. Wharves.
63. Window shades and ventilators (Major Utilities).
64. Yard drainage system (Major Utilities).
65. Yard lighting system (Major Utilities).
66. Yard surfacing, gravel, concrete, or oil. (First cost only.)
(Major Utilities)
Note: Structures and Improvements accounts shall be credited with
the cost of coal bunkers, stacks, foundations, subways, tunnels, etc.,
the use of which has terminated with the removal of the equipment with
which they are associated even though they have not been physically
removed.
9. Equipment.
A. The cost of equipment chargeable to the electric plant accounts,
unless otherwise indicated in the text of an equipment account, includes
the net purchase price thereof, sales taxes, investigation and
inspection expenses necessary to such purchase, expenses of
transportation when borne by the utility, labor employed, materials and
supplies consumed, and expenses incurred by the utility in unloading and
placing the equipment in readiness to operate. Also include those costs
incurred in connection with the first clearing and grading of land and
rights-of-way and the damage costs associated with construction and
installation of plant.
B. Exclude from equipment accounts hand and other portable tools,
which are likely to be lost or stolen or which have relatively small
value (for example, $500 or less) or short life, unless the correctness
of the accounting therefor as electric plant is verified by current
inventories. Special tools acquired and included in the purchase price
of equipment shall be included in the appropriate plant account.
Portable drills and similar tool equipment when used in connection with
the operation and maintenance of a particular plant or department, such
as production, transmission, distribution, etc., or in stores, shall be
charged to the plant account appropriate for their use.
C. The equipment accounts shall include angle irons and similar items
which are installed at the base of an item of equipment, but piers and
foundations which are designed to be as permanent as the buildings which
house the equipment, or which are constructed as a part of the building
and which cannot be removed without cutting into the walls, ceilings or
floors or without in some way impairing the building, shall be included
in the building accounts.
D. The equipment accounts shall include the necessary costs of
testing or running a plant or parts thereof during an experimental or
test period prior to such plant becoming ready for or placed in service.
In the case of Nonmajor utilities, the utility shall pay the fee
prescribed in part 381 of this chapter and shall furnish the Commission
with full particulars of and justification for any test or experimental
run extending beyond a period of 30 days. In the case of Major
utilities, the utility shall furnish the Commission with full
particulars of and justification for any test or experimental run
extending beyond a period of 120 days for nuclear plant, and a period of
90 days for all other plant. Such particulars shall include a detailed
operational and downtime log showing days of production, gross kilowatts
generated by hourly increments, types, and periods of outages by hours
with explanation thereof, beginning with the first date the equipment
was either tested or synchronized on the line to the end of the test
period.
E. The cost of efficiency or other tests made subsequent to the date
equipment becomes available for service shall be charged to the
appropriate expense accounts, except that tests to determine whether
equipment meets the specifications and requirements as to efficiency,
performance, etc., guaranteed by manufacturers, made after operations
have commenced and within the period specified in the agreement or
contract of purchase may be charged to the appropriate electric plant
account.
10. Additions and Retirements of Electric Plant.
A. For the purpose of avoiding undue refinement in accounting for
additions to and retirements and replacements of electric plant, all
property shall be considered as consisting of (1) retirement units and
(2) minor items of property. Each utility shall use such list of
retirement units as is in use by it at the effective date hereof or as
may be prescribed by the Commission, with the option, however, of using
smaller units, provided the utility's practice in this respect is
consistent.
B. The addition and retirement of retirement units shall be accounted
for as follows:
(1) When a retirement unit is added to electric plant, the cost
thereof shall be added to the appropriate electric plant account, except
that when units are acquired in the acquisition of any electric plant
constituting an operating system, they shall be accounted for as
provided in electric plant instruction 5.
(2) When a retirement unit is retired from electric plant, with or
without replacement, the book cost thereof shall be credited to the
electric plant account in which it is included, determined in the manner
set forth in paragraph D, below. If the retirement unit is of a
depreciable class, the book cost of the unit retired and credited to
electric plant shall be charged to the accumulated provision for
depreciation applicable to such property. The cost of removal and the
salvage shall be charged or credited, as appropriate, to such
depreciation account.
C. The addition and retirement of minor items of property shall be
accounted for as follows:
(1) When a minor item of property which did not previously exist is
added to plant, the cost thereof shall be accounted for in the same
manner as for the addition of a retirement unit, as set forth in
paragraph B(1), above, if a substantial addition results, otherwise the
charge shall be to the appropriate maintenance expense account.
(2) When a minor item of property is retired and not replaced, the
book cost thereof shall be credited to the electric plant account in
which it is included; and, in the event the minor item is a part of
depreciable plant, the account for accumulated provision for
depreciation shall be charged with the book cost and cost of removal and
credited with the salvage. If, however, the book cost of the minor item
retired and not replaced has been or will be accounted for by its
inclusion in the retirement unit of which it is a part when such unit is
retired, no separate credit to the property account is required when
such minor item is retired.
(3) When a minor item of depreciable property is replaced
independently of the retirement unit of which it is a part, the cost of
replacement shall be charged to the maintenance account appropriate for
the item, except that if the replacement effects a substantial
betterment (the primary aim of which is to make the property affected
more useful, more efficient, of greater durability, or of greater
capacity), the excess cost of the replacement over the estimated cost at
current prices of replacing without betterment shall be charged to the
appropriate electric plant account.
D. The book cost of electric plant retired shall be the amount at
which such property is included in the electric plant accounts,
including all components of construction costs. The book cost shall be
determined from the utility's records and if this cannot be done it
shall be estimated. When it is impracticable to determine the book cost
of each unit, due to the relatively large number or small cost thereof,
an appropriate average book cost of the units, with due allowance for
any differences in size and character, shall be used as the book cost of
the units retired.
E. The book cost of land retired shall be credited to the appropriate
land account. If the land is sold, the difference between the book cost
(less any accumulated provision for depreciation or amortization
therefore which has been authorized and provided) and the sale price of
the land (less commissions and other expenses of making the sale) shall
be recorded in account 411.6, Gains from Disposition of Utility Plant,
or 411.7, Losses from Disposition of Utility Plant when the property has
been recorded in account 105, Electric Plant Held for Future Use,
otherwise to accounts 421.1, Gain on Disposition of Property or 421.2,
Loss on Disposition of Property, as appropriate. If the land is not
used in utility service but is retained by the utility, the book cost
shall be charged to account 105, Electric Plant Held for Future Use, or
account 121, Nonutility Property, as appropriate.
F. The book cost less net salvage of depreciable electric plant
retired shall be charged in its entirety to account 108. Accumulated
Provision for Depreciation of Electric Plant in Service (Account 110,
Accumulated Provision for Depreciation and Amortization of Electric
Utility Plant, in the case of Nonmajor utilities). Any amounts which,
by approval or order of the Commission, are charged to account 182.1,
Extraordinary Property Losses, shall be credited to account 108 (Account
110 for Nonmajor utilities).
G. In the case of Major utilities, the accounting for the retirement
of amounts included in account 302, Franchises and Consents, and account
303, Miscellaneous Intangible Plant, and the items of limited-term
interest in land included in the accounts for land and land rights,
shall be as provided for in the text of account 111. Accumulated
Provision for Amortization of Electric Plant in Service, account 404,
Amortization of Limited-Term Electric Plant, and account 405,
Amortization of Other Electric Plant.
11. Work Order and Property Record System Required.
A. Each utility shall record all construction and retirements of
electric plant by means of work orders or job orders. Separate work
orders may be opened for additions to and retirements of electric plant
or the retirements may be included with the construction work order,
provided, however, that all items relating to the retirements shall be
kept separate from those relating to construction and provided, further,
that any maintenance costs involved in the work shall likewise be
segregated.
B. Each utility shall keep its work order system so as to show the
nature of each addition to or retirement of electric plant, the total
cost thereof, the source or sources of costs, and the electric plant
account or accounts to which charged or credited. Work orders covering
jobs of short duration may be cleared monthly.
C. In the case of Major utilities, each utility shall maintain
records in which, for each plant account, the amounts of the annual
additions and retirements, subsequent to the effective date of this
system of accounts, are classified so as to show the number and cost of
the various record units or retirement units.
12. Transfers of Property.
When property is transferred from one electric plant account to
another, from one utility department to another, such as from electric
to gas, from one operating division or area to another, to or from
accounts 101, Electric Plant in Service, 104. Electric Plant Leased to
Others, 105. Electric Plant Held for Future Use, and 121, Nonutility
Property, the transfer shall be recorded by transferring the original
cost thereof from the one account, department, or location to the other.
Any related amounts carried in the accounts for accumulated provision
for depreciation or amortization shall be transferred in accordance with
the segregation of such accounts.
13. Common Utility Plant.
A. If the utility is engaged in more than one utility service, such
as electric, gas, and water, and any of its utility plant is used in
common for several utility services or for other purposes to such an
extent and in such manner that it is impracticable to segregate it by
utility services currently in the accounts, such property, with the
approval of the Commission, may be designated and classified as common
utility plant.
B. The book amount of utility plant designated as common plant shall
be included in account 118, Other Utility Plant, and if applicable in
part to the electric department, shall be segregated and accounted for
in subaccounts as electric plant is accounted for in accounts 101 to
107, inclusive, and electric plant adjustments in account 116; any
amounts classifiable as common plant acquisition adjustments or common
plant adjustments shall be subject to disposition as provided in
paragraphs C and B of accounts 114 and 116, respectively, for amounts
classified in those accounts. The original cost of common utility plant
in service shall be classified according to detailed utility plant
accounts appropriate for the property.
C. The utility shall be prepared to show at any time and to report to
the Commission annually, or more frequently, if required, and by utility
plant accounts (301 to 399) the following: (1) The book cost of common
utility plant, (2) The allocation of such cost to the respective
departments using the common utility plant, and (3) The basis of the
allocation.
D. The accumulated provision for depreciation and amortization of the
utility shall be segregated so as to show the amount applicable to the
property classified as common utility plant.
E. The expenses of operation, maintenance, rents, depreciation and
amortization of common utility plant shall be recorded in the accounts
prescribed herein, but designated as common expenses, and the allocation
of such expenses to the departments using the common utility plant shall
be supported in such manner as to reflect readily the basis of
allocation used.
14. Transmission and Distribution Plant.
For the purpose of this system of accounts:
A. Transmission system means:
(1) All land, conversion structures, and equipment employed at a
primary source of supply (i.e., generating station, or point of receipt
in the case of purchased power) to change the voltage or frequency of
electricity for the purpose of its more efficient or convenient
transmission;
(2) All land, structures, lines, switching and conversion stations,
high tension apparatus, and their control and protective equipment
between a generating or receiving point and the entrance to a
distribution center or wholesale point; and
(3) All lines and equipment whose primary purpose is to augment,
integrate or tie together the sources of power supply
B. Distribution system means all land, structures, conversion
equipment, lines, line transformers, and other facilities employed
between the primary source of supply (i.e., generating station, or point
of receipt in the case of purchased power) and of delivery to customers,
which are not includible in transmission system, as defined in paragraph
A, whether or not such land, structures, and facilities are operated as
part of a transmission system or as part of a distribution system.
Note: Stations which change electricity from transmission to
distribution voltage shall be classified as distribution stations.
C. Where poles or towers support both transmission and distribution
conductors, the poles, towers, anchors, guys, and rights of way shall be
classified as transmission system. The conductors, crossarms, braces,
grounds, tiewire, insulators, etc., shall be classified as transmission
or distribution facilities, according to the purpose for which used.
D. Where underground conduit contains both transmission and
distribution conductors, the underground conduit and right of way shall
be classified as distribution system. The conductors shall be
classified as transmission or distribution facilities according to the
purpose for which used.
E. Land (other than rights of way) and structures used jointly for
transmission and distribution purposes shall be classified as
transmission or distribution according to the major use thereof.
15. Hydraulic production plant (Major Utilities).
For the purpose of this system of accounts hydraulic production plant
means all land and land rights, structures and improvements used in
connection with hydraulic power generation, reservoirs dams and
waterways, water wheels, turbines, generators, accessory electric
equipment, miscellaneous powerplant equipment, roads, railroads, and
bridges, and structures and improvements used in connection with fish
and wildlife, and recreation.
16. Nuclear Fuel Records Required (Major Utilities).
Each utility shall keep all the necessary records to support the
entries to the various nuclear fuel plant accounts classified under
''Assets and Other Debits,'' Utility Plant 120.1 through 120.6,
inclusive, account 518, Nuclear Fuel Expense and account 157, Nuclear
Materials Held for Sale. These records shall be so kept as to readily
furnish the basis of the computation of the net nuclear fuel costs.
18 CFR 46.6 Operating Expense Instructions
1. Supervision and Engineering (Major Utilities).
The supervision and engineering includible in the operating expense
accounts shall consist of the pay and expenses of superintendents,
engineers, clerks, other employees and consultants engaged in
supervising and directing the operation and maintenance of each utility
function. Wherever allocations are necessary in order to arrive at the
amount to be included in any account, the method and basis of allocation
shall be reflected by underlying records.
1. Special tests to determine efficiency of equipment operation.
2. Preparing or reviewing budgets, estimates, and drawings relating
to operation or maintenance for departmental approval.
3. Preparing instructions for operations and maintenance activities.
4. Reviewing and analyzing operating results.
5. Establishing organizational setup of departments and executing
changes therein.
6. Formulating and reviewing routines of departments and executing
changes therein.
7. General training and instruction of employees by supervisors whose
pay is chargeable hereto. Specific instruction and training in a
particular type of work is chargeable to the appropriate functional
account (See Electric Plant Instruction 3(19)).
8. Secretarial work for supervisory personnel, but not general
clerical and stenographic work chargeable to other accounts.
9. Consultants' fees and expenses.
10. Meals, traveling and incidental expenses.
2. Maintenance.
A. The cost of maintenance chargeable to the various operating
expense and clearing accounts includes labor, materials, overheads and
other expenses incurred in maintenance work. A list of work operations
applicable generally to utility plant is included hereunder. Other work
operations applicable to specific classes of plant are listed in
functional maintenance expense accounts.
B. Materials recovered in connection with the maintenance of property
shall be credited to the same account to which the maintenance cost was
charged.
C. If the book cost of any property is carried in account 102,
Electric Plant Purchased or Sold, the cost of maintaining such property
shall be charged to the accounts for maintenance of property of the same
class and use, the book cost of which is carried in other electric plant
in service accounts. Maintenance of property leased from others shall
be treated as provided in operating expense instruction 3.
1. Direct field supervision of maintenance.
2. Inspecting, testing, and reporting on condition of plant
specifically to determine the need for repairs, replacements,
rearrangements and changes and inspecting and testing the adequacy of
repairs which have been made.
3. Work performed specifically for the purpose of preventing failure,
restoring serviceability or maintaining life of plant.
4. Rearranging and changing the location of plant not retired.
5. Repairing for reuse materials recovered from plant.
6. Testing for locating and clearing trouble.
7. Net cost of installing, maintaining, and removing temporary
facilities to prevent interruptions in service.
8. Replacing or adding minor items of plant which do not constitute a
retirement unit. (See electric plant instruction 10.)
3. Rents.
A. The rent expense accounts provided under the several functional
groups of expense accounts shall include all rents, including taxes paid
by the lessee on leased property, for property used in utility
operations, except (1) minor amounts paid for occasional or infrequent
use of any property or equipment and all amounts paid for use of
equipment that, if owned, would be includible in plant accounts 391 to
398, inclusive, which shall be treated as an expense item and included
in the appropriate functional account and (2) rents which are chargeable
to clearing accounts, and distributed therefrom to the appropriate
account. If rents cover property used for more than one function, such
as production and transmission, or by more than one department, the
rents shall be apportioned to the appropriate rent expense or clearing
accounts of each department on an actual, or, if necessary, an estimated
basis.
B. When a portion of property or equipment rented from others for use
in connection with utility operations is subleased, the revenue derived
from such subleasing shall be credited to the rent revenue account in
operating revenues; provided, however, that in case the rent was
charged to a clearing account, amounts received from subleasing the
property shall be credited to such clearing account.
C. The cost, when incurred by the lessee, of operating and
maintaining leased property, shall be charged to the accounts
appropriate for the expense if the property were owned.
D. The cost incurred by the lessee of additions and replacements to
electric plant leased from others shall be accounted for as provided in
electric plant instruction 6.
4. Training Costs.
When it is necessary that employees be trained to specifically
operate or maintain plant facilities that are being constructed, the
related costs shall be accounted for as a current operating and
maintenance expense. These expenses shall be charged to the appropriate
functional accounts currently as they are incurred. However, when the
training costs involved relate to facilities which are not conventional
in nature, or are new to the company's operations, then see Electric
Plant Instruction 3(19), for accounting.
Balance Sheet Chart of Accounts
101 Electric plant in service.
101.1 Property under capital leases.
102 Electric plant purchased or sold.
103 Experimental electric plant unclassified (Major only).
103.1 Electric plant in process of reclassification (Nonmajor only).
104 Electric plant leased to others.
105 Electric plant held for future use.
106 Completed construction not classified -- Electric (Major only).
107 Construction work in progress -- Electric.
108 Accumulated provision for depreciation of electric utility plant
(Major only).
109 (Reserved)
110 Accumulated provision for depreciation and amortization of
electric utility plant (Nonmajor only).
111 Accumulated provision for amortization of electric utility plant
(Major only).
112 -- 113 (Reserved)
114 Electric plant acquisition adjustments.
115 Accumulated provision for amortization of electric plant
acquisition adjustments (Major only).
116 Other electric plant adjustments.
118 Other utility plant.
119 Accumulated provision for depreciation and amortization of other
utility plant.
120.1 Nuclear fuel in process of refinement, conversion, enrichment
and fabrication (Major only).
120.2 Nuclear fuel materials and assemblies -- Stock account (Major
only).
120.3 Nuclear fuel assemblies in reactor (Major only).
120.4 Spent nuclear fuel (Major only).
120.5 Accumulated provision for amortization of nuclear fuel
assemblies (Major only).
120.6 Nuclear fuel under capital leases (Major only).
121 Nonutility property.
122 Accumulated provision for depreciation and amortization of
nonutility property.
123 Investment in associated companies (Major only).
123.1 Investment in subsidiary companies (Major only).
124 Other investments.
125 Sinking funds (Major only).
126 Depreciation fund (Major only).
127 Amortization fund -- Federal (Major only).
128 Other special funds (Major only).
129 Special funds (Nonmajor only).
130 Cash and working funds (Nonmajor only).
131 Cash (Major only).
132 Interest special deposits (Major only).
133 Dividend special deposits (Major only).
134 Other special deposits (Major only).
135 Working funds (Major only).
136 Temporary cash investments.
141 Notes receivable.
142 Customer accounts receivable.
143 Other accounts receivable.
144 Accumulated provision for uncollectible accounts -- credit.
145 Notes receivable from associated companies.
146 Accounts receivable from associated companies.
151 Fuel stock (Major only).
152 Fuel stock expenses undistributed (Major only).
153 Residuals (Major only).
154 Plant materials and operating supplies.
155 Merchandise (Major only).
156 Other materials and supplies (Major only).
157 Nuclear materials held for sale (Major only).
163 Stores expense undistributed (Major only).
165 Prepayments.
171 Interest and dividends receivable (Major only).
172 Rents receivable (Major only).
173 Accrued utility revenues (Major only).
174 Miscellaneous current and accrued assets.
181 Unamortized debt expense.
182.1 Extraordinary property losses.
182.2 Unrecovered plant and regulatory study costs.
183 Preliminary survey and investigation charges (Major only).
184 Clearing accounts (Major only).
185 Temporary facilities (Major only).
186 Miscellaneous deferred debits.
187 Deferred losses from disposition of utility plant.
188 Research, development, and demonstration expenditures (Major
only).
189 Unamortized loss on reacquired debt.
190 Accumulated deferred income taxes.
201 Common stock issued.
202 Common stock subscribed (Major only).
203 Common stock liability for conversion (Major only).
204 Preferred stock issued.
205 Preferred stock subscribed (Major only).
206 Preferred stock liability for conversion (Major only).
207 Premium on capital stock (Major only).
208 Donations received from stockholders (Major only).
209 Reduction in par or stated value of capital stock (Major only).
210 Gain on resale or cancellation of reacquired capital stock (Major
only).
211 Miscellaneous paid-in capital.
212 Installments received on capital stock.
213 Discount on capital stock.
214 Capital stock expense.
215 Appropriated retained earnings.
215.1 Appropriated retained earnings -- Amortization reserve,
Federal.
216 Unappropriated retained earnings.
216.1 Unappropriated undistributed subsidiary earnings (Major only).
217 Reacquired capital stock.
218 Noncorporate proprietorship (Nonmajor only).
221 Bonds.
222 Reacquired bonds (Major only).
223 Advances from associated companies.
224 Other long-term debt.
225 Unamortized premium on long-term debt.
226 Unamortized discount on long-term debt -- Debit.
227 Obligations under capital lease -- noncurrent.
228.1 Accumulated provision for property insurance.
228.2 Accumulated provision for injuries and damages.
228.3 Accumulated provision for pensions and benefits.
228.4 Accumulated miscellaneous operating provisions.
229 Accumulated provision for rate refunds.
231 Notes payable.
232 Accounts payable.
233 Notes payable to associated companies.
234 Accounts payable to associated companies.
235 Customer deposits.
236 Taxes accrued.
237 Interest accrued.
238 Dividends declared (Major only).
239 Matured long-term debt (Major only).
240 Matured interest (Major only).
241 Tax collections payable (Major only).
242 Miscellaneous current and accrued liabilities.
243 Obligations under capital leases -- current.
251 (Reserved)
252 Customer advances for construction.
253 Other deferred credits.
255 Accumulated deferred investment tax credits.
256 Deferred gains from disposition of utility plant.
257 Unamortized gain on reacquired debt.
281 Accumulated deferred income taxes -- Accelerated amortization
property.
282 Accumulated deferred income taxes -- Other property.
283 Accumulated deferred income taxes -- Other.
18 CFR 46.6 Balance Sheet Accounts
101 Electric plant in service (Major only).
A. This account shall include the original cost of electric plant,
included in accounts 301 to 399, prescribed herein, owned and used by
the utility in its electric utility operations, and having an
expectation of life in service of more than one year from date of
installation, including such property owned by the utility but held by
nominees. (See also account 106 for unclassified construction costs of
completed plant actually in service.)
B. The cost of additions to and betterments of property leased from
others, which are includible in this account, shall be recorded in
subdivisions separate and distinct from those relating to owned
property. (See electric plant instruction 6.)
101.1 Property under capital leases.
A. This account shall include the amount recorded under capital
leases for plant leased from others and used by the utility in its
utility operations.
B. The electric property included in this account shall be classified
separately according to the detailed accounts (301 to 399) prescribed
for electric plant in service.
C. Records shall be maintained with respect to each capital lease
reflecting: (1) name of lessor, (2) basic details of lease, (3)
terminal date, (4) original cost or fair market value of property
leased, (5) future minimum lease payments, (6) executory costs, (7)
present value of minimum lease payments, (8) the amount representing
interest and the interest rate used, and (9) expenses paid.
102 Electric plant purchased or sold.
A. This account shall be charged with the cost of electric plant
acquired as an operating unit or system by purchase, merger,
consolidation liquidation, or otherwise, and shall be credited with the
selling price of like property transferred to others pending the
distribution to appropriate accounts in accordance with electric plant
instruction 5.
B. Within six months from the date of acquisition or sale of property
recorded herein, the utility shall file with the Commission the proposed
journal entries to clear from this account the amounts recorded herein.
103 Experimental electric plant unclassified (Major only).
A. This account shall include the cost of electric plant which was
constructed as a research, development, and demonstration plant under
the provisions of paragraph C, Account 107, Construction Work in
Progress -- Electric, and due to the nature of the plant it is desirous
to operate it for a period of time in an experimental status.
B. Amounts in this account shall be transferred to Account 101,
Electric Plant in Service, or Account 121, Nonutility Property as
appropriate when the project is no longer considered as experimental.
C. The depreciation on property in this account shall be charged to
Account 403, Depreciation Expense, and credited to Account 108,
Accumulated Provision for Depreciation of Electric Utility Plant. The
amounts herein shall be depreciated over a period which would correspond
to the estimated useful life of the relevant project considering the
characteristics involved. However, when projects are transferred to
Account 101, Electric Plant in Service, a new depreciation rate based on
the remaining service life and undepreciated amounts, will be
established.
D. Records shall be maintained with respect to each unit of
experiment so that full details may be obtained as to the cost,
depreciation and the experimental status.
E. Should it be determined that experimental plant recorded in this
account will fail to satisfactorily perform its function, the costs
thereof shall be accounted for as directed or authorized by the
Commission.
103.1 Electric plant in process of reclassification (Nonmajor only).
A. This account shall include temporarily the balance of electric
plant as of the effective date of the prior system of accounts, which
has not yet been reclassified as of the effective date of this system of
accounts. The detail or primary accounts in support of this account
employed prior to such date shall be continued pending reclassification
into the electric plant accounts herein prescribed (301-399), but shall
not be used for additions, betterments, or new construction.
B. No charges other than as provided in paragraph A, above, shall be
made to this account, but retirements of such unclassified electric
plant shall be credited hereto and to the supporting (old) fixed capital
accounts until the reclassification shall have been accomplished.
104 Electric plant leased to others.
A. This account shall include the original cost of electric plant
owned by the utility, but leased to others as operating units or
systems, where the lessee has exclusive possession.
B. The property included in this account shall be classified
according to the detailed accounts (301 to 399) prescribed for electric
plant in service and this account shall be maintained in such detail as
though the property were used by the owner in its utility operations.
105 Electric plant held for future use.
A. This account shall include the original cost of electric plant
(except land and land rights) owned and held for future use in electric
service under a definite plan for such use, to include: (1) Property
acquired (except land and land rights) but never used by the utility in
electric service, but held for such service in the future under a
definite plan, and (2) property (except land and land rights) previously
used by the utility in service, but retired from such service and held
pending its reuse in the future, under a definite plan, in electric
service.
B. This account shall also include the original cost of land and land
rights owned and held for future use in electric service under a plan
for such use, to include land and land rights: (1) Acquired but never
used by the utility in electric service, but held for such service in
the future under a plan, and (2) previously held by the utility in
service, but retired from such service and held pending its reuse in the
future under a plan, in electric service. (See Electric Plant
Instruction 7.)
C. In the event that property recorded in this account shall no
longer be needed or appropriate for future utility operations, the
company shall request Commission approval of journal entries to remove
such property from this account when the gain realized from the sale or
other disposition of the property is $100,000 or more, prior to their
being recorded. Such filings shall include the description and original
cost of individual properties removed from this account, the accounts
charged upon removal, and any associated gains realized upon disposition
of such property.
D. Gains or losses from the sale of land and land rights or other
disposition of such property previously recorded in this account and not
placed in utility service shall be recorded directly in accounts 411.6
or 411.7, as appropriate, except when determined to be significant by
the Commission. Upon such a determination, the amounts shall be
transferred to account 256, Deferred Gains from Disposition of Utility
Plant, or account 187, Deferred Losses from Disposition of Utility
Plant, and amortized to accounts 411.6, Gains from Disposition of
Utility Plant, or 411.7, Losses from Disposition of Utility Plant, as
appropriate.
E. The property included in this account shall be classified
according to the detail accounts (301 to 399) prescribed for electric
plant in service and the account shall be maintained in such detail as
though the property were in service.
Note: Materials and supplies, meters and transformers held in
reserve, and normal spare capacity of plant in service shall not be
included in this account.
106 Completed construction not classified -- Electric (Major only).
At the end of the year or such other date as a balance sheet may be
required by the Commission, this account shall include the total of the
balances of work orders for electric plant which has been completed and
placed in service but which work orders have not been classified for
transfer to the detailed electric plant accounts.
Note: For the purpose of reporting to the Commission the
classification of electric plant in service by accounts is required, the
utility shall also report the balance in this account tentatively
classified as accurately as practicable according to prescribed account
classifications. The purpose of this provision is to avoid any
significant omissions in reported amounts of electric plant in service.
107 Construction work in progress -- Electric.
A. This account shall include the total of the balances of work
orders for electric plant in process of construction.
B. Work orders shall be cleared from this account as soon as
practicable after completion of the job. Further, if a project, such as
a hydroelectric project, a steam station or a transmission line, is
designed to consist of two or more units or circuits which may be placed
in service at different dates, any expenditures which are common to and
which will be used in the operation of the project as a whole shall be
included in electric plant in service upon the completion and the
readiness for service of the first unit. Any expenditures which are
identified exclusively with units of property not yet in service shall
be included in this account.
C. Expenditures on research, development, and demonstration projects
for construction of utility facilities are to be included in a separate
subdivision in this account. Records must be maintained to show
separately each project along with complete detail of the nature and
purpose of the research, development, and demonstration project together
with the related costs.
108 Accumulated provision for depreciation of electric utility plant
(Major only).
A. This account shall be credited with the following:
(1) Amounts charged to account 403, Depreciation Expense, or to
clearing accounts for current depreciation expense for electric plant in
service.
(2) Amounts charged to account 421, Miscellaneous Nonoperating
Income, for depreciation expense on property included in account 105,
Electric Plant Held for Future Use. Include, also, the balance of
accumulated provision for depreciation on property when transferred to
account 105, Electric Plant Held for Future Use, from other property
accounts. Normally account 108 will not be used for current
depreciation provisions because, as provided herein, the service life
during which depreciation is computed commences with the date property
is includible in electric plant in service; however, if special
circumstances indicate the propriety of current accruals for
depreciation, such charges shall be made to account 421, Miscellaneous
Nonoperating Income.
(3) Amounts charged to account 413, Expenses of Electric Plant Leased
to Others, for electric plant included in account 104, Electric Plant
Leased to Others.
(4) Amounts charged to account 416, Costs and Expenses of
Merchandising, Jobbing, and Contract Work, or to clearing accounts for
current depreciation expense.
(5) Amounts of depreciation applicable to electric properties
acquired as operating units or systems. (See electric plant instruction
5.)
(6) Amounts charged to account 182, Extraordinary Property Losses,
when authorized by the Commission.
(7) Amounts of depreciation applicable to electric plant donated to
the utility.
(The utility shall maintain separate subaccounts for depreciation
applicable to electric plant in service, electric plant leased to others
and electric plant held for future use.)
B. At the time of retirement of depreciable electric utility plant,
this account shall be charged with the book cost of the property retired
and the cost of removal and shall be credited with the salvage value and
any other amounts recovered, such as insurance. When retirement, costs
of removal and salvage are entered originally in retirement work orders,
the net total of such work orders may be included in a separate
subaccount hereunder. Upon completion of the work order, the proper
distribution to subdivisions of this account shall be made as provided
in the following paragraph.
C. For general ledger and balance sheet purposes, this account shall
be regarded and treated as a single composite provision for
depreciation. For purposes of analysis, however, each utility shall
maintain subsidiary records in which this account is segregated
according to the following functional classification for electric plant:
(1) Steam production, (2) Nuclear production, (3) Hydraulic production,
(4) Other production, (5) Transmission, (6) Distribution, and (7)
General. These subsidiary records shall reflect the current credits and
debits to this account in sufficient detail to show separately for each
such functional classification (a) the amount of accrual for
depreciation, (b) the book cost of property retired, (c) cost of
removal, (d) salvage, and (e) other items, including recoveries from
insurance.
D. When transfers of plant are made from one electric plant account
to another, or from or to another utility department, or from or to
nonutility property accounts, the accounting for the related accumulated
provision for depreciation shall be as provided in electric plant
instruction 12.
E. The utility is restricted in its use of the accumulated provision
for depreciation to the purposes set forth above. It shall not transfer
any portion of this account to retained earnings or make any other use
thereof without authorization by the Commission.
109 (Reserved)
110 Accumulated provision for depreciation and amortization of
electric utility plant (Nonmajor only).
A. This account shall be credited with the following:
(1) Amounts charged to account 403 Depreciation Expense, to account
404 Amortization of Limited-Term Electric Plant, to account 405,
Amortization of Other Electric Plant, to account 413, Expenses of
Electric Plant Leased to Others, to account 416. Costs and Expenses of
Merchandising, Jobbing and Contract Work, or to clearing accounts for
currently accruing depreciation and amortization.
(2) Amounts of depreciation applicable to electric properties
acquired as operating units or systems. (See electric plant instruction
4.)
(3) Amounts chargeable to account 182, Extraordinary Property Losses,
when authorized by the Commission.
(4) Amounts of depreciation applicable to electric plant donated to
the utility.
B. At the time of retirement of electric plant, this account shall be
charged with the book cost of the property retired and the cost of
removal, and shall be credited with the salvage value and any other
amounts recovered, such as insurance. When retirements, cost of removal
and salvage are entered originally in retirement work orders, the net
total of such work orders may be included in a separate subaccount
hereunder. Upon completion of the work order, the proper distribution
to subdivisions of this account shall be made as provided in the
following paragraph.
C. For general ledger and balance sheet purposes, this account shall
be regarded and treated as a single composite provision for
depreciation. This account shall be subdivided to show the amount
applicable to Electric Plant in Service, Electric Plant Leased to
Others, and Electric Plant Held for Future Use. These subsidiary
records shall show the current credits and debits to this account in
sufficient detail to show separately for each subdivision, (1) the
amount of accrual for depreciation or amortization, (2) the book cost of
property retired, (3) cost of removal, (4) salvage and (5) other items,
including recoveries from insurance.
D. When transfers of plant are made from one electric plant account
to another, or form or to nonutility property, the accounting shall be
as provided in electric plant instruction 10.
E. The utility is restricted in its use of the accumulated provision
for depreciation to the purposes set forth above. It shall not transfer
any portion of this account to retained earnings or make any other use
thereof without authorization by the Commission.
111 Accumulated provision for amortization of electric utility plant
(Major only).
A. This account shall be credited with the following:
(1) Amounts charged to account 404, Amortization of Limited-Term
Electric Plant, for the current amortization of limited-term electric
plant investments.
(2) Amounts charged to account 421, Miscellaneous Nonoperating
Income, for amortization expense on property included in account 105,
Electric Plant Held for Future Use. Include also the balance of
accumulated provision for amortization on property when transferred to
account 105, Electric Plant Held for Future Use, from other property
accounts. See also paragraph A(2), account 108, Accumulated Provision
for Depreciation of Electric Utility Plant.
(3) Amounts charged to account 405, Amortization of Other Electric
Plant.
(4) Amounts charged to account 413, Expenses of Electric Plant Leased
to Others, for the current amortization of limited-term or other
investments subject to amortization included in account 104, Electric
Plant Leased to Others.
(5) Amounts charged to account 425, Miscellaneous Amortization, for
the amortization of intangible or other electric plant which does not
have a definite or terminable life and is not subject to charges for
depreciation expense, with Commission approval.
(The utility shall maintain subaccounts of this account for the
amortization applicable to electric plant in service, electric plant
leased to others and electric plant held for future use.)
B. When any property to which this account applies is sold,
relinquished, or otherwise retired from service, this account shall be
charged with the amount previously credited in respect to such property.
The book cost of the property so retired less the amount chargeable to
this account and less the net proceeds realized at retirement shall be
included in account 421.1, Gain on Disposition of Property, or account
421.2, Loss on Disposition of Property, as appropriate.
C. For general ledger and balance sheet purposes, this account shall
be regarded and treated as a single composite provision for
amortization. For purposes of analysis, however, each utility shall
maintain subsidiary records in which this account is segregated
according to the following functional classification for electric plant:
(1) Steam production, (2) nuclear production, (3) hydraulic production,
(4) other production, (5) transmission, (6) distribution, and (7)
general. These subsidiary records shall reflect the current credits and
debits to this account in sufficient detail to show separately for each
such functional classification (a) the amount of accrual for
amortization, (b) the book cost of property retired, (c) cost of
removal, (d) salvage, and (e) other items, including recoveries from
insurance.
D. The utility is restricted in its use of the accumulated provision
for amortization to the purposes set forth above. It shall not transfer
any portion of this account to retained earnings or make any other use
thereof without authorization by the Commission.
112 -- 113 (Reserved)
114 Electric plant acquisition adjustments.
A. This account shall include the difference between (1) the cost to
the accounting utility of electric plant acquired as an operating unit
or system by purchase, merger, consolidation, liquidation, or otherwise,
and (2) the original cost, estimated, if not known, of such property,
less the amount or amounts credited by the accounting utility at the
time of acquisition to accumulated provisions for depreciation and
amortization and contributions in aid of construction with respect to
such property.
B. With respect to acquisitions after the effective date of this
system of accounts, this account shall be subdivided so as to show the
amounts included herein for each property acquisition and to electric
plant in service, electric plant held for future use, and electric plant
leased to others. (See electric plant instruction 5.)
C. Debit amounts recorded in this account related to plant and land
acquisition may be amortized to account 425, Miscellaneous Amortization,
over a period not longer than the estimated remaining life of the
properties to which such amounts relate. Amounts related to the
acquisition of land only may be amortized to account 425 over a period
of not more than 15 years. Should a utility wish to account for debit
amounts in this account in any other manner, it shall petition the
Commission for authority to do so. Credit amounts recorded in this
account shall be accounted for as directed by the Commission.
115 Accumulated provision for amortization of electric plant
acquisition adjustments (Major only).
This account shall be credited or debited with amounts which are
includible in account 406. Amortization of Electric Plant Acquisition
Adjustments or account 425, Miscellaneous Amortization, for the purpose
of providing for the extinguishment of amounts in account 114, Electric
Plant Acquisition Adjustments, in instances where the amortization of
account 114 is not being made by direct write-off of the account.
116 Other electric plant adjustments.
A. This account shall include the difference between the original
cost, estimated if not known, and the book cost of electric plant to the
extent that such difference is not properly includible in account 114,
Electric Plant Acquisition Adjustments. (See electric plant instruction
1C).
B. Amounts included in this account shall be classified in such
manner as to show the origin of each amount and shall be disposed of as
the Commission may approve or direct.
Note: The provisions of this account shall not be construed as
approving or authorizing the recording of appreciation of electric
plant.
118 Other utility plant.
This account shall include the balances in accounts for utility
plant, other than electric plant, such as gas, railway, etc.
119 Accumulated provision for depreciation and amortization of other
utility plant.
This account shall include the accumulated provision for depreciation
and amortization applicable to utility property other than electric
plant.
120.1 Nuclear fuel in process of refinement, conversion, enrichment
and fabrication (Major only).
A. This account shall include the original cost to the utility of
nuclear fuel materials while in process of refinement, conversion,
enrichment, and fabrication into nuclear fuel assemblies and components,
including processing, fabrication, and necessary shipping costs. This
account shall also include the salvage value of nuclear materials which
are actually being reprocessed for use and were transferred from account
120.5, Accumulated Provision for Amortization of Nuclear Fuel
Assemblies. (See definition 20.)
B. This account shall be credited and account 120.2, Nuclear Fuel
Materials and Assemblies -- Stock Account, shall be debited for the cost
of completed fuel assemblies delivered for use in refueling or to be
held as spares. In the case of the initial core loading, the transfer
shall be made directly to account 120.3, Nuclear Fuel Assemblies in
Reactor, upon the conclusion of the experimental or test period of the
plant prior to its becoming available for service.
1. Cost of natural uranium, uranium ores concentrates or other
nuclear fuel sources, such as thorium, plutonium, and U-233.
2. Value of recovered nuclear materials being reprocessed for use.
3. Milling process costs.
4. Sampling and weighing, and assaying costs.
5. Purification and conversion process costs.
6. Costs of enrichment by gaseous diffusion or other methods.
7. Costs of fabrication into fuel forms suitable for insertion in the
reactor.
8. All shipping costs of materials and components, including shipping
of fabricated fuel assemblies to the reactor site.
9. Use charges on leased nuclear materials while in process of
refinement, conversion, enrichment, and fabrication.
120.2 Nuclear fuel materials and assemblies -- Stock account (Major
only).
A. This account shall be debited and account 120.1, Nuclear Fuel in
Process of Refinement, Conversion, Enrichment, and Fabrication, shall be
credited with the cost of fabricated fuel assemblies delivered for use
in refueling or to be carried in stock as spares. It shall also include
the original cost of fabricated fuel assemblies purchased in completed
form. This account shall also include the original cost of partially
irradiated fuel assemblies being held in stock for reinsertion in a
reactor which had been transferred from account 120.3, Nuclear Fuel
Assemblies in Reactor.
B. When fuel assemblies included in this account are inserted in a
reactor, this account shall be credited and account 120.3, Nuclear Fuel
Assemblies in Reactor, debited for the cost of such assemblies.
C. This account shall also include the cost of nuclear materials and
byproduct materials being held for future use and not actually in
process in account 120.1, Nuclear Fuel in Process of Refinement,
Conversion, Enrichment, and Fabrication.
120.3 Nuclear fuel assemblies in reactor (Major only).
A. This account shall include the cost of nuclear fuel assemblies
when inserted in a reactor for the production of electricity. The
amounts included herein shall be transferred from account 120.2, Nuclear
Fuel Materials and Assemblies -- Stock Account, except for the initial
core loading which will be transferred directly from account 120.1.
B. Upon removal of fuel assemblies from a reactor, the original cost
of the assemblies removed shall be transferred to account 120.4, Spent
Nuclear Fuel or account 120.2, Nuclear Fuel Materials and Assemblies --
Stock Account, as appropriate.
120.4 Spent nuclear fuel (Major only).
A. This account shall include the original cost of nuclear fuel
assemblies, in the process of cooling, transferred from account 120.3,
Nuclear Fuel Assemblies in Reactor, upon removal from a reactor pending
reprocessing.
B. This account shall be credited and account 120.5, Accumulated
Provision for Amortization of Nuclear Fuel Assemblies, debited for fuel
assemblies, after the cooling period is over, at the cost recorded in
this account.
120.5 Accumulated provision for amortization of nuclear fuel
assemblies (Major only).
A. This account shall be credited and account 518, Nuclear fuel
expense shall be debited for the amortization of the net cost of nuclear
fuel assemblies used in the production of energy. The net cost of
nuclear fuel assemblies subject to amortization shall be the original
cost of nuclear fuel assemblies, plus or less the expected net salvage
value of uranium, plutonium, and other by-products.
B. This account shall be credited with the net salvage value of
uranium, plutonium, and other nuclear by-products when such items are
sold, transferred or otherwise disposed of. Account 120.1, Nuclear Fuel
in Process of Refinement, Conversion, Enrichment, and Fabrication, shall
be debited with the net salvage value of nuclear materials to be
reprocessed. Account 157, Nuclear Materials Held for Sale shall be
debited for the net salvage value of nuclear materials not to be
reprocessed but to be sold or otherwise disposed of and account 120.2,
will be debited with the net salvage value of nuclear materials that
will be held for future use and not actually in process, in account
120.1, Nuclear Fuel in Process of Refinement, Conversion, Enrichment,
and Fabrication.
C. This account shall be debited and account 120.4, Spent Nuclear
Fuel, shall be credited with the cost of fuel assemblies at the end of
the cooling period.
120.6 Nuclear fuel under capital leases (Major only).
A. This account shall include the amount recorded under capital
leases for nuclear fuel leased from others for use by the utility in its
utility operations.
B. Records shall be maintained with respect to each capital lease
reflecting: (1) Name of lessor, (2) basic details of lease, (3)
terminal date, (4) original cost or fair market value of nuclear fuel
leased, (5) future minimum lease payments, (6) executory costs, (7)
present value of minimum lease payments, (8) the amount representing
interest and the interest rate used, and (9) expenses paid.
121 Nonutility property.
A. This account shall include the book cost of land, structures,
equipment, or other tangible or intangible property owned by the
utility, but not used in utility service and not properly includible in
account 105, Electric Plant Held for Future Use.
B. This account shall also include the amount recorded under capital
leases for property leased from others and used by the utility in its
nonutility operations. Records shall be maintained with respect to each
lease reflecting: (1) name of lessor, (2) basic details of lease, (3)
terminal date, (4) original cost or fair market value of property
leased, (5) future minimum lease payments, (6) executory costs, (7)
present value of minimum lessee payments, (8) the amount representing
interest and the interest rate used, and (9) expenses paid.
C. This account shall be subdivided so as to show the amount of
property used in operations which are nonutility in character but
nevertheless constitute a distinct operating activity of the company
(such as operation of an ice department where such activity is not
classed as a utility) and the amount of miscellaneous property not used
in operations. The records in support of each subaccount shall be
maintained so as to show an appropriate classification of the property.
Note: The gain from the sale or other disposition of property
included in this account which had been previously recorded in account
105, Electric Plant Held for Future Use, shall be accounted for in
accordance with paragraph C of account 105.
122 Accumulated provision for depreciation and amortization of
nonutility property.
This account shall include the accumulated provision for depreciation
and amortization applicable to nonutility property.
123 Investment in associated companies (Major only).
A. This account shall include the book cost of investments in
securities issued or assumed by associated companies and investment
advances to such companies, including interest accrued thereon when such
interest is not subject to current settlement, provided that the
investment does not relate to a subsidiary company. (If the investment
relates to a subsidiary company it shall be included in account 123.1,
Investment in Subsidiary Companies.) Include herein the offsetting entry
to the recording of amortization of discount or premium on interest
bearing investments. (See account 419, Interest and Dividend Income.)
B. This account shall be maintained in such manner as to show the
investment in securities of, and advances to, each associated company
together with full particulars regarding any of such investments that
are pledged.
Note A: Securities and advances of associated companies owned and
pledged shall be included in this account, but such securities, if held
in special deposits or in special funds, shall be included in the
appropriate deposit or fund account. A complete record of securities
pledged shall be maintained
Note B: Securities of associated companies held as temporary cash
investments are includible in account 136, Temporary Cash Investments.
Note C: Balances in open accounts with associated companies, which
are subject to current settlement, are includible in account 146,
Accounts Receivable from Associated Companies.
Note D: The utility may write down the cost of any security in
recognition of a decline in the value thereof. Securities shall be
written off or written down to a nominal value if there is no reasonable
prospect of substantial value. Fluctuations in market value shall not
be recorded but a permanent impairment in the value of securities shall
be recognized in the accounts. When securities are written off or
written down, the amount of the adjustment shall be charged to account
426.5, Other Deductions, or to an appropriate account for accumulated
provisions for loss in value established as a separate subdivision of
this account.
123.1 Investment in subsidiary companies (Major only).
A. This account shall include the cost of investments in securities
issued or assumed by subsidiary companies and investment advances to
such companies, including interest accrued thereon when such interest is
not subject to current settlement plus the equity in undistributed
earnings or losses of such subsidiary companies since acquisition. This
account shall be credited with any dividends declared by such
subsidiaries.
B. This account shall be maintained in such a manner as to show
separately for each subsidiary: the cost of such investments in the
securities of the subsidiary at the time of acquisition; the amount of
equity in the subsidiary's undistributed net earnings or net losses
since acquisition; advances or loans to such subsidiary; and full
particulars regarding any such investments that are pledged.
124 Other investments.
A. This account shall include the book cost of investments in
securities issued or assumed by nonassociated companies, investment
advances to such companies, and any investments not accounted for
elsewhere. Include also the offsetting entry to the recording of
amortization of discount or premium on interest bearing investments.
(See account 419, Interest and Dividend Income.)
B. The cost of capital stock of the utility reacquired by it under a
definite plan for resale pursuant to authorization by the Board of
Directors may, if permitted by statutes, be included in a separate
subdivision of this account. (See also account 210, Gain on Resale or
Cancellation of Reacquired Capital Stock, and account 217, Reacquired
Capital Stock.)
C. The records shall be maintained in such manner as to show the
amount of each investment and the investment advances to each person.
Note A: Securities owned and pledged shall be included in this
account, but securities held in special deposits or in special funds
shall be included in appropriate deposit or fund accounts. A complete
record of securities pledged shall be maintained.
Note B: Securities held as temporary cash investments shall not be
included in this account.
Note C: Special funds. See Note D of account 123.
125 Sinking funds (Major only).
This account shall include the amount of cash and book cost of
investments held in sinking funds. A separate account, with appropriate
title, shall be kept for each sinking fund. Transfers from this account
to special deposit accounts, may be made as necessary for the purpose of
paying matured sinking-fund obligations, or obligations called for
redemption but not presented, or the interest thereon.
126 Depreciation fund (Major only).
This account shall include the amount of cash and the book cost of
investments which have been segregated in a special fund for the purpose
of identifying such assets with the accumulated provisions for
depreciation.
127 Amortization fund -- Federal (Major only).
This account shall include the amount of cash and book cost of
investments of any fund maintained pursuant to the requirements of a
federal regulatory body, and the cash and investments segregated for the
purpose of identifying the specific assets associated with account
215.1, Appropriated Retained Earnings -- Amortization Reserve, Federal.
128 Other special funds (Major only).
This account shall include the amount of cash and book cost of
investments which have been segregated in special funds for insurance,
employee pensions, savings, relief, hospital, and other purposes not
provided for elsewhere. A separate account with appropriate title,
shall be kept for each fund.
Note: Amounts deposited with a trustee under the terms of an
irrevocable trust agreement for pensions or other employee benefits
shall not be included in this account.
Special Instructions for Current and Accrued Assets. Current and
accrued assets are cash, those assets which are readily convertible into
cash or are held for current use in operations or construction, current
claims against others, payment of which is reasonably assured, and
amounts accruing to the utility which are subject to current settlement,
except such items for which accounts other than those designated as
current and accrued assets are provided. There shall not be included in
the group of accounts designated as current and accrued assets any item,
the amount or collectibility of which is not reasonably assured, unless
an adequate provision for possible loss has been made therefor. Items
of current character but of doubtful value may be written down and for
record purposes carried in these accounts at nominal value.
129 Special funds (Nonmajor only).
This account shall include the amount of cash and book cost of
investments which have been segregated in special funds for bond
retirements, property additions and replacements, insurance, employees'
pensions, savings, relief, hospital, and other purposes not provided for
elsewhere. A separate account, with appropriate title, shall be kept
for each fund.
Note A: Amounts deposited with a trustee under the terms of an
irrevocable trust agreement for pensions or other employees benefits
shall not be included in this account.
Note B: Licensees under the Federal Power Act which are required to
establish an amortization fund under terms of the license shall provide
a special subdivision of this account for the purpose of accounting for
and identifying the cash, investments or other specific assets
associated with account 215.1, Appropriated Retained Earnings --
Amortization Reserve, Federal.
Special Instructions for Current and Accrued Assets. Current and
accrued assets are cash, those assets which are readily convertible into
cash or are held for current use in operations or construction, current
claims against others, payment of which is reasonably assured, and
amounts accruing to the utility which are subject to current settlement,
except such items for which accounts other than those designated as
current and accrued assets are provided. There shall not be included in
the group of accounts designated as current and accrued assets any item,
the amount or collectibility of which is not reasonably assured, unless
an adequate provision for possible loss has been made therefor. Items
of current character but of doubtful value may be written down and for
record purposes carried in these accounts at nominal value.
130 Cash and working funds (Nonmajor only).
This account shall include the amount of cash on hand and in banks
and cash advanced to officers, agents, employees, and others as petty
cash or working funds. Special cash deposits for payment of interest,
dividends or other special purposes shall be included in this account in
separate subdivisions which shall specify the purpose for which each
such special deposit is made.
Note: Special Deposits for more than one year which are not offset
by current liabilities, shall not be charged to this account but to
account 125, Special Funds.
131 Cash (Major only).
This account shall include the amount of current cash funds except
working funds.
132 Interest special deposits (Major only).
This account shall include special deposits with fiscal agents or
others for the payment of interest.
133 Dividend special deposits (Major only).
This account shall include special deposits with fiscal agents or
others for the payment of dividends.
134 Other special deposits (Major only).
This account shall include deposits with fiscal agents or others for
special purposes other than the payment of interest and dividends. Such
special deposits may include cash deposited with federal, state, or
municipal authorities as a guaranty for the fulfillment of obligations;
cash deposited with trustees to be held until mortgaged property sold,
destroyed, or otherwise disposed of is replaced; cash realized from the
sale of the accounting utility's securities and deposited with trustees
to be held until invested in property of the utility, etc. Entries to
this account shall specify the purpose for which the deposit is made.
Note: Assets available for general corporate purposes shall not be
included in this account. Further, deposits for more than one year,
which are not offset by current liabilities, shall not be charged to
this account but to account 128, Other Special Funds.
135 Working funds (Major only).
This account shall include cash advanced to officers, agents,
employees, and others as petty cash or working funds.
136 Temporary cash investments.
A. This account shall include the book cost of investments, such as
demand and time loans, bankers' acceptances, United States Treasury
certificates, marketable securities, and other similar investments,
acquired for the purpose of temporarily investing cash.
B. This account shall be so maintained as to show separately
temporary cash investments in securities of associated companies and of
others. Records shall be kept of any pledged investments.
141 Notes receivable.
This account shall include the book cost, not includible elsewhere,
of all collectible obligations in the form of notes receivable and
similar evidences (except interest coupons) of money due on demand or
within one year from the date of issue, except, however, notes
receivable from associated companies. (See account 136, Temporary Cash
Investments, and account 145, Notes Receivable from Associated
Companies.)
Note: The face amount of notes receivable discounted, sold, or
transferred without releasing the utility from liability as endorser
thereon, shall be credited to a separate subdivision of this account and
appropriate disclosure shall be made in financial statements of any
contingent liability arising from such transactions.
142 Customer accounts receivable.
A. This account shall include amounts due from customers for utility
service, and for merchandising, jobbing and contract work. This account
shall not include amounts due from associated companies.
B. This account shall be maintained so as to permit ready segregation
of the amounts due for merchandising, jobbing and contract work.
143 Other accounts receivable.
A. This account shall include amounts due the utility upon open
accounts, other than amounts due from associated companies and from
customers for utility services and merchandising, jobbing and contract
work.
B. This account shall be maintained so as to show separately amounts
due on subscriptions to capital stock and from officers and employees,
but the account shall not include amounts advanced to officers or others
as working funds. (See account 135, Working Funds.)
144 Accumulated provision for uncollectible accounts -- credit.
A. This account shall be credited with amounts provided for losses on
accounts receivable which may become uncollectible, and also with
collections on accounts previously charged hereto. Concurrent charges
shall be made to account 904, Uncollectible Accounts, for amounts
applicable to utility operations, and to corresponding accounts for
other operations. Records shall be maintained so as to show the
write-offs of account receivable for each utility department.
B. This account shall be subdivided to show the provision applicable
to the following classes of accounts receivable:
Utility customers.
Merchandising, jobbing and contract work.
Officers and employees.
Others.
Note A: Accretions to this account shall not be made in excess of a
reasonable provision against losses of the character provided for.
Note B: If provisions for uncollectible notes receivable or for
uncollectible receivables from associated companies are necessary,
separate subaccounts therefor shall be established under the account in
which the receivable is carried.
145 Notes receivable from associated companies.
146 Accounts receivable from associated companies.
These accounts shall include notes and drafts upon which associated
companies are liable, and which mature and are expected to be paid in
full not later than one year from the date of issue, together with any
interest thereon, and debit balances subject to current settlement in
open accounts with associated companies. Items which do not bear a
specified due date but which have been carried for more than twelve
months and items which are not paid within twelve months from due date
shall be transferred to account 123, Investment in Associated Companies.
Note A: On the balance sheet, accounts receivable from an associated
company may be set off against accounts payable to the same company.
Note B: The face amount of notes receivable discounted, sold or
transferred without releasing the utility from liability as endorser
thereon, shall be credited to a separate subdivision of this account and
appropriate disclosure shall be made in financial statements of any
contingent liability arising from such transactions.
151 Fuel stock (Major only).
This account shall include the book cost of fuel on hand.
1. Invoice price of fuel less any cash or other discounts.
2. Freight, switching, demurrage and other transportation charges,
not including, however, any charges for unloading from the shipping
medium.
3. Excise taxes, purchasing agents' commissions, insurance and other
expenses directly assignable to cost of fuel.
4. Operating, maintenance and depreciation expenses and ad valorem
taxes on utility-owned transportation equipment used to transport fuel
from the point of acquisition to the unloading point.
5. Lease or rental costs of transportation equipment used to
transport fuel from the point of acquisition to the unloading point.
152 Fuel stock expenses undistributed (Major only).
A. This account may include the cost of labor and of supplies used
and expenses incurred in unloading fuel from the shipping medium and in
the handling thereof prior to its use, if such expenses are sufficiently
significant in amount to warrant being treated as a part of the cost of
fuel inventory rather than being charged direct to expense as incurred.
B. Amounts included herein shall be charged to expense as the fuel is
used to the end that the balance herein shall not exceed the expenses
attributable to the inventory of fuel on hand.
Labor:
1. Procuring and handling of fuel.
2. All routine fuel analyses.
3. Unloading from shipping facility and putting in storage.
4. Moving of fuel in storage and transferring from one station to
another.
5. Handling from storage or shipping facility to first bunker,
hopper, bucket, tank or holder of boiler house structure.
6. Operation of mechanical equipment, such as locomotives, trucks,
cars, boats, barges, cranes, etc.
Supplies and Expenses:
7. Tools, lubricants and other supplies.
8. Operating supplies for mechanical equipment.
9. Transportation and other expenses in moving fuel.
10. Stores expenses applicable to fuel.
153 Residuals (Major only).
This account shall include the book cost of any residuals produced in
production or manufacturing processes.
154 Plant materials and operating supplies.
A. This account shall include the cost of materials purchased
primarily for use in the utility business for construction, operation
and maintenance purposes. For Nonmajor utilities, this account shall
include the cost of fuel on hand and unapplied materials and supplies
(except meters and house regulators). For both Major and Nonmajor
utilities, it shall include also the book cost of materials recovered in
connection with construction, maintenance or the retirement of property,
such materials being credited to construction, maintenance or
accumulated depreciation provision, respectively, and included herein as
follows:
(1) Reusable materials consisting of large individual items shall be
included in this account at original cost, estimated if not known. The
cost of repairing such items shall be charged to the maintenance account
appropriate for the previous use.
(2) Reusable materials consisting of relatively small items, the
identity of which (from the date of original installation to the final
abandonment or sale thereof) cannot be ascertained without undue
refinement in accounting, shall be included in this account at current
prices new for such items. The cost of repairing such items shall be
charged to the appropriate expense account as indicated by previous use.
(3) Scrap and nonusable materials included in this account shall be
carried at the estimated net amount realizable therefrom. The
difference between the amounts realized for scrap and nonusable
materials sold and the net amount at which the materials were carried in
this account, as far as practicable, shall be adjusted to the accounts
credited when the materials were charged to this account.
B. Materials and supplies issued shall be credited hereto and charged
to the appropriate construction, operating expense, or other account on
the basis of a unit price determined by the use of cumulative average,
first-in-first-out, or such other method of inventory accounting as
conforms with accepted accounting standards consistently applied.
C. For Nonmajor utilities, inventories of materials, supplies, fuel,
etc., shall be taken at least annually and the necessary adjustments
shall be made to bring this account into agreement with the actual
inventories. In effecting the adjustments, large differences which can
be assigned to important classes of materials shall be equitably
adjusted among the accounts to which such classes of materials have been
charged since the previous inventory. Other differences shall be
equitably apportioned among the accounts to which materials have been
charged.
1. Invoice price of materials less cash or other discounts.
2. Freight, switching or other transportation charges when
practicable to include as part of the cost of particular materials to
which they relate.
3. Customs duties and excise taxes.
4. Costs of inspection and special tests prior to acceptance.
5. Insurance and other directly assignable charges.
Note A: Where expenses applicable to materials purchased cannot be
directly assigned to particular purchases, they may be charged to a
stores expense clearing account (account 163, Stores Expense
Undistributed, in the case of Major utilities), and distributed
therefrom to the appropriate account.
Note B: When materials and supplies are purchased for immediate use,
they need not be carried through this account but may be charged
directly to the appropriate utility plant or expense account.
155 Merchandise (Major only).
This account shall include the book cost of materials and supplies
and appliances and equipment held primarily for merchandising, jobbing
and contract work. The principles prescribed in accounting for utility
materials and supplies shall be observed in respect to items carried in
this account.
156 Other materials and supplies (Major only).
This account shall include the book cost of materials and supplies
held primarily for nonutility purposes. The principles prescribed in
accounting for utility materials and supplies shall be observed in
respect to items carried in this account.
157 Nuclear materials held for sale (Major only).
This account shall include the net salvage value of uranium,
plutonium and other nuclear materials held by the company for sale or
other disposition and that are not to be reused by the company in its
electric utility operations. This account shall be debited and account
120.5, Accumulated Provision for Amortization of Nuclear Fuel
Assemblies, credited for such net salvage value. Any difference between
the amount recorded in this account and the actual amount realized from
the sale of materials shall be debited or credited, as appropriate, to
account 518, Nuclear Fuel Expense at the time of such sale.
163 Stores expense undistributed (Major only).
A. This account shall include the cost of supervision, labor and
expenses incurred in the operation of general storerooms, including
purchasing, storage, handling and distribution of materials and
supplies.
B. This account shall be cleared by adding to the cost of materials
and supplies issued a suitable loading charge which will distribute the
expense equitably over stores issues. The balance in the account at the
close of the year shall not exceed the amount of stores expenses
reasonably attributable to the inventory of materials and supplies
exclusive of fuel, as any amount applicable to fuel costs should be
included in account 152, Fuel Stock Expenses Undistributed.
Labor:
1. Inspecting and testing materials and supplies when not assignable
to specific items.
2. Unloading from shipping facility and putting in storage.
3. Supervision of purchasing and stores department to extent
assignable to materials handled through stores.
4. Getting materials from stock and in readiness to go out.
5. Inventorying stock received or stock on hand by stores employees
but not including inventories by general department employees as part of
internal or general audits.
6. Purchasing department activities in checking material needs,
investigating sources of supply, analyzing prices, preparing and placing
orders, and related activities to extent applicable to materials handled
through stores. (Optional. Purchasing department expenses may be
included in administrative and general expenses.)
7. Maintaining stores equipment.
8. Cleaning and tidying storerooms and stores offices.
9. Keeping stock records, including recording and posting of material
receipts and issues and maintaining inventory record of stock.
10. Collecting and handling scrap materials in stores.
Supplies and expenses:
11. Adjustments of inventories of materials and supplies but not
including large differences which can readily be assigned to important
classes of materials and equitably distributed among the accounts to
which such classes of materials have been charged since the previous
inventory.
12. Cash and other discounts not practically assignable to specific
materials.
13. Freight, express, etc., when not assignable to specific items.
14. Heat, light and power for storerooms and store offices.
15. Brooms, brushes, sweeping compounds and other supplies used in
cleaning and tidying storerooms and stores offices.
16. Injuries and damages.
17. Insurance on materials and supplies and on stores equipment.
18. Losses due to breakage, leakage, evaporation, fire or other
causes, less credits for amounts received from insurance, transportation
companies or others in compensation of such losses.
19. Postage, printing, stationery and office supplies.
20. Rent of storage space and facilities.
21. Communication service.
22. Excise and other similar taxes not assignable to specific
materials.
23. Transportation expense on inward movement of stores and on
transfer between storerooms but not including charges on materials
recovered from retirements which shall be accounted for as part of cost
of removal.
Note: A physical inventory of each class of materials and supplies
shall be made at least every two years.
165 Prepayments.
This account shall include amounts representing prepayments of
insurance, rents, taxes, interest and miscellaneous items, and shall be
kept or supported in such manner as to disclose the amount of each class
of prepayment.
171 Interest and dividends receivable (Major only).
This account shall include the amount of interest on bonds,
mortgages, notes, commercial paper, loans, open accounts, deposits,
etc., the payment of which is reasonably assured, and the amount of
dividends declared or guaranteed on stocks owned.
Note A: Interest which is not subject to current settlement shall
not be included herein but in the account in which is carried the
principal on which the interest is accrued.
Note B: Interest and dividends receivable from associated companies
shall be included in account 146, Accounts receivable from associated
companies.
172 Rents receivable (Major only).
This account shall include rents receivable or accrued on property
rented or leased by the utility to others.
Note: Rents receivable from associated companies shall be included
in account 146, Accounts Receivable from Associated Companies.
173 Accrued utility revenues (Major only).
At the option of the utility, the estimated amount accrued for
service rendered, but not billed at the end of any accounting period,
may be included herein. In case accruals are made for unbilled
revenues, they shall be made likewise for unbilled expenses, such as for
the purchase of energy.
174 Miscellaneous current and accrued assets.
This account shall include the book cost of all other current and
accrued assets, appropriately designated and supported so as to show the
nature of each asset included herein.
181 Unamortized debt expense.
This account shall include expenses related to the issuance or
assumption of debt securities. Amounts recorded in this account shall
be amortized over the life of each respective issue under a plan which
will distribute the amount equitably over the life of the security. The
amortization shall be on a monthly basis, and the amounts thereof shall
be charged to account 428, Amortization of Debt Discount and Expense.
Any unamortized amounts outstanding at the time that the related debt is
prematurely reacquired shall be accounted for as indicated in General
Instruction 17.
182.1 Extraordinary property losses.
A. When authorized or directed by the Commission, this account shall
include extraordinary losses, which could not reasonably have been
anticipated and which are not covered by insurance or other provisions,
such as unforeseen damages to property.
B. Application to the Commission for permission to use this account
shall be accompanied by a statement giving a complete explanation with
respect to the items which it is proposed to include herein, the period
over which, and the accounts to which it is proposed to write off the
charges, and other pertinent information.
182.2 Unrecovered plant and regulatory study costs.
A. This account shall include: (1) Nonrecurring costs of studies and
analyses mandated by regulatory bodies related to plants in service,
transferred from account 183, Preliminary Survey and Investigation
Charges, and not resulting in construction; and (2) when authorized by
the Commission, significant unrecovered costs of plant facilities where
construction has been cancelled or which have been prematurely retired.
B. This account shall be credited and account 407, Amortization of
Property Losses, Unrecovered Plant and Regulatory Study Costs, shall be
debited over the period specified by the Commission.
C. Any additional costs incurred, relative to the cancellation or
premature retirement, may be included in this account and amortized over
the remaining period of the original amortization period. Should any
gains or recoveries be realized relative to the cancelled or prematurely
retired plant, such amounts shall be used to reduce the unamortized
amount of the costs recorded herein.
D. In the event that the recovery of costs included herein is
disallowed in the rate proceedings, the disallowed costs shall be
charged to account 426.5, Other Deductions, or account 435,
Extraordinary Deductions, in the year of such disallowance.
183 Preliminary survey and investigation charges (Major only).
A. This account shall be charged with all expenditures for
preliminary surveys, plans, investigations, etc., made for the purpose
of determining the feasibility of utility projects under contemplation.
If construction results, this account shall be credited and the
appropriate utility plant account charged. If the work is abandoned,
the charge shall be made to account 426.5, Other Deductions, or to the
appropriate operating expense account.
B. This account shall also include costs of studies and analyses
mandated by regulatory bodies related to plant in service. If
construction results from such studies, this account shall be credited
and the appropriate utility plant account charged with an equitable
portion of such study costs directly attributable to new construction.
The portion of such study costs not attributable to new construction or
the entire cost if construction does not result shall be charged to
account 182.2, Unrecovered Plant and Regulatory Costs, or the
appropriate operating expense account. The costs of such studies
relative to plant under construction shall be included directly in
account 107, Construction Work in Progress-Electric.
C. The records supporting the entries to this account shall be so
kept that the utility can furnish complete information as to the nature
and the purpose of the survey, plans, or investigations and the nature
and amounts of the several charges.
Note: The amount of preliminary survey and investigation charges
transferred to utility plant shall not exceed the expenditures which may
reasonably be determined to contribute directly and immediately and
without duplication to utility plant.
184 Clearing accounts (Major only).
This caption shall include undistributed balances in clearing
accounts at the date of the balance sheet. Balances in clearing
accounts shall be substantially cleared not later than the end of the
calendar year unless items held therein relate to a future period.
185 Temporary facilities (Major only).
This account shall include amounts shown by work orders for plant
installed for temporary use in utility service for periods of less than
one year. Such work orders shall be charged with the cost of temporary
facilities and credited with payments received from customers and net
salvage realized on removal of the temporary facilities. Any net credit
or debit resulting shall be cleared to account 451, Miscellaneous
Service Revenues.
186 Miscellaneous deferred debits.
A. For Major utilities, this account shall include all debits not
elsewhere provided for, such as miscellaneous work in progress, and
unusual or extraordinary expenses, not included in other accounts, which
are in process of amortization and items the proper final disposition of
which is uncertain.
B. For Nonmajor utilities, this account shall include the following
classes of items:
(1) Expenditures for preliminary surveys, plans, investigations,
etc., made for the purpose of determining the feasibility of utility
projects under contemplation. If construction results, this account
shall be credited with the amount applicable thereto and the appropriate
plant accounts shall be charged with an amount which does not exceed the
expenditures which may reasonably be determined to contribute directly
and immediately and without duplication to plant. If the work is
abandoned, the charge shall be to account 426.5, Other Deductions, or to
the appropriate operating expense accounts.
(2) Undistributed balances in clearing accounts at the date of the
balance sheet. Balances in clearing accounts shall be substantially
cleared not later than the end of the calendar year unless items held
therein related to a future period.
(3) Balances representing expenditures for work in progress other
than on utility plant. This includes jobbing and contract work in
progress.
(4) Other debit balances, the proper final disposition of which is
uncertain and unusual or extraordinary expenses not included in other
accounts, which are in process of being written off.
C. For both Major and Nonmajor utilities, the records supporting the
entries to this account shall be so kept that the utility can furnish
full information as to each deferred debit included herein.
187 Deferred losses from disposition of utility plant.
This account shall include losses from the sale or other disposition
of property previously recorded in account 105, Electric Plant held for
Future Use, under the provisions of paragraphs B, C, and D thereof,
where such losses are significant and are to be amortized over a period
of 5 years, unless otherwise authorized by the Commission. The
amortization of the amounts in this account shall be made by debits to
account 411.7, Losses from Disposition of Utility Plant. (See account
105, Electric Plant Held for Future Use.)
188 Research, development and demonstration expenditures (Major
only).
A. This account shall be charged with the cost of all expenditures
coming within the meaning of Research, Development and Demonstration (RD
& D) of this uniform system of accounts (see definition 27.B.), except
those expenditures properly chargeable to account 107, Construction Work
in Progress -- Electric.
B. Costs that are minor or of a general or recurring nature shall be
transferred from this account to the appropriate operating expense
function or if such costs are common to the overall operations or cannot
be feasibly allocated to the various operating accounts, then such costs
shall be recorded in account 930.2, Miscellaneous General Expenses.
C. In certain instances a company may incur large and significant
research, development, and demonstration expenditures which are
nonrecurring and which would distort the annual research, development,
and demonstration charges for the period. In such a case the portion of
such amounts that cause the distortion may be amortized to the
appropriate operating expense account over a period not to exceed 5
years unless otherwise authorized by the Commission.
D. The entries in this account must be so maintained as to show
separately each project along with complete detail of the nature and
purpose of the research, development, and demonstration project together
with the related costs.
189 Unamortized loss on reacquired debt.
This account shall include the losses on long-term debt reacquired or
redeemed. The amounts in this account shall be amortized in accordance
with General Instruction 17.
190 Accumulated deferred income taxes.
A. This account shall be debited and account 411.1, Provision for
Deferred Income Taxes -- Credit, Utility Operating Income, or account
411.2, Provision for Deferred Income Taxes -- Credit, Other Income and
Deductions, as appropriate, shall be credited with an amount equal to
that by which income taxes payable for the year are higher because of
the inclusion of certain items in income for tax purposes, which items
for general accounting purposes will not be fully reflected in the
utility's determination of annual net income until subsequent years.
B. This account shall be credited and account 410.1, Provision for
Deferred Income Taxes, Utility Operating Income, or account 410.2,
Provision for Deferred Income Taxes, Other Income and Deductions, as
appropriate, shall be debited with an amount equal to that by which
income taxes payable for the year are lower because of prior payment of
taxes as provided by paragraph A above, because of difference in timing
for tax purposes of particular items of income or income deductions from
that recognized by the utility for general accounting purposes. Such
credit to this account and debit to account 410.1 or 410.2 shall, in
general, represent the effect on taxes payable in the current year of
the smaller amount of book income recognized for tax purposes as
compared to the amount recognized in the utility's current accounts with
respect to the item or class of items for which deferred tax accounting
by the utility was authorized by the Commission.
C. Vintage year records with respect to entries to this account, as
described above, and the account balance, shall be so maintained as to
show the factor of calculation with respect to each annual amount of the
item or class of items for which deferred tax accounting by the utility
is utilized.
D. The utility is restricted in its use of this account to the
purpose set forth above. It shall not make use of the balance in this
account or any portion thereof except as provided in the text of this
account, without prior approval of the Commission. Any remaining
deferred tax account balance with respect to an amount for any prior
year's tax deferral, the amortization of which or other recognition in
the utility's income accounts has been completed, or other disposition
made, shall be debited to account 410.1, Provision for Deferred Income
Taxes, Utility Operating Income, or account 410.2, Provision for
Deferred Income Taxes, Other Income and Deductions, as appropriate, or
otherwise disposed of as the Commission may authorize or direct. (See
General Instruction 18.)
201 Common stock issued.
202 Common stock subscribed (Major only).
203 Common stock liability for conversion (Major only).
204 Preferred stock issued.
A. These accounts shall include the par value or the stated value of
stock without par value if such stock has a stated value, and, if not,
the cash value of the consideration received for such nonpar stock, of
each class of capital stock actually issued, including the par or stated
value of such capital stock in account 124, Other Investments, and
account 217, Reacquired Capital Stock.
B. When the actual cash value of the consideration received is more
or less than the par or stated value of any stock having a par or stated
value, the difference shall be credited or debited, as the case may be,
to the premium or discount account for the particular class and series.
C. When capital stock is retired, these accounts shall be charged
with the amount at which such stock is carried herein.
D. A separate ledger account, with a descriptive title, shall be
maintained for each class and series of stock. The supporting records
shall show the shares nominally issued, actually issued, and nominally
outstanding.
Note: When a levy or assessment, except a call for payment on
subscriptions, is made against holders of capital stock, the amount
collected upon such levy or assessment shall be credited to account 207,
Premium on Capital Stock (for Nonmajor utilities, account 211,
Miscellaneous Paid-In Capital), provided, however, that the credit shall
be made to account 213, Discount on Capital Stock, to the extent of any
remaining balance of discount on the issue of stock.
205 Preferred stock subscribed (Major only).
A. These accounts shall include the amount of legally enforceable
subscriptions to capital stock of the utility. They shall be credited
with the par or stated value of the stock subscribed, exclusive of
accrued dividends, if any. Concurrently, a debit shall be made to
subscriptions to capital stock, included as a separate subdivision of
account 143, Other Accounts Receivable, for the agreed price, and any
discount or premium shall be debited or credited to the appropriate
discount or premium account. When properly executed stock certificates
have been issued representing the shares subscribed, this account shall
be debited, and the appropriate capital stock account credited, with the
par or stated value of such stock.
B. The records shall be kept in such manner as to show the amount of
subscriptions to each class and series of stock.
206 Preferred stock liability for conversion (Major only).
A. These accounts shall include the par value or stated value, as
appropriate, of capital stock which the utility has agreed to exchange
for outstanding securities of other companies in connection with the
acquisition of properties of such companies under terms which allow the
holders of the securities of the other companies to surrender such
securities and receive in return therefor capital stock of the
accounting utility.
B. When the securities of the other companies have been surrendered
and capital stock issued in accordance with the terms of the exchange,
these accounts shall be charged and accounts 201, Common Stock Issued,
or 204, Preferred Stock Issued, as the case may be, shall be credited.
C. The records shall be kept so as to show separately the stocks of
each class and series for which a conversion liability exists.
207 Premium on capital stock (Major only).
A. This account shall include, in a separate subdivision for each
class and series of stock, the excess of the actual cash value of the
consideration received on original issues of capital stock over the par
or stated value and accrued dividends of such stock, together with
assessments against stockholders representing payments required in
excess of par or stated values.
B. Premium on capital stock shall not be set off against expenses.
Further, a premium received on an issue of a certain class or series of
stock shall not be set off against expenses of another issue of the same
class or series.
C. When capital stock which has been actually issued is retired, the
amount in this account applicable to the shares retired shall be
transferred to account 210, Gain on Resale or Cancellation of Reacquired
Capital Stock.
208 Donations received from stockholders (Major only).
This account shall include the balance of credits for donations
received from stockholders consisting of capital stock of the utility,
cancellation or reduction of debt of the utility, and the cash value of
other assets received as a donation.
209 Reduction in par or stated value of capital stock (Major only).
This account shall include the balance of credits arising from a
reduction in the par or stated value of capital stock.
210 Gain on resale or cancellation of reacquired capital stock (Major
only).
This account shall include the balance of credits arising from the
resale or cancellation of reacquired capital stock. (See account 217.
Reacquired Capital Stock.)
211 Miscellaneous paid-in capital.
This account shall include the balance of all other credits for
paid-in capital which are not properly includible in the foregoing
accounts. This account may include all commissions and expenses
incurred in connection with the issuance of capital stock. (In the case
of Nonmajor companies, this account shall be kept so as to show the
source of the credits includible herein.)
1. Premium received on original issues of capital stock.
2. Donations received from stockholders or reduction of debt of the
utility, and the cash value of other assets received as a donation.
3. Reduction in part or stated value of capital stock.
4. Gain on resale or cancellation of reacquired capital stock.
Note A: (Major utilities) Amounts included in capital surplus at the
effective date of this system of accounts which cannot be classified as
to the source thereof shall be included in this account.
Note B: (Nonmajor utilities) Premium on capital stock shall not be
set off against expenses. Further, a premium received on an issue of a
certain class or series of stock shall not be set off against expense of
another issue of the same class or series.
212 Installments received on capital stock.
A. This account shall include in a separate subdivision for each
class and series of capital stock the amount of installments received on
capital stock on a partial or installment payment plan from subscribers
who are not bound by legally enforceable subscription contracts.
B. As subscriptions are paid in full and certificates issued, this
account shall be charged and the appropriate capital stock account
credited with the par or stated value of such stock. Any discount or
premium on an original issue shall be included in the appropriate
discount or premium account.
213 Discount on capital stock.
A. This account shall include in a separate subdivision for each
class and series of capital stock all discount on the original issuance
and sale of capital stock, including additional capital stock of a
particular class or series as well as first issues.
B. When capital stock which has been actually issued is retired, the
amount in this account applicable to the shares retired shall be written
off to account 210, Gain on Resale or Cancellation of Reacquired Capital
Stock, provided, however, that the amount shall be charged to account
439, Adjustments to Retained Earnings, to the extent that it exceeds the
balance in account 210.
214 Capital stock expense.
A. This account shall include in a separate subdivision for each
class and series of stock all commissions and expenses incurred in
connection with the original issuance and sale of capital stock,
including additional capital stock of a particular class or series as
well as first issues. Expenses applicable to capital stock shall not be
deducted from premium on capital stock.
B. When capital stock which has been actually issued by the utility
is retired the amount in this account, applicable to the shares retired
shall be written off to account 210, Gain on Resale or Cancellation of
Reacquired Capital Stock, provided, however, that the amount shall be
charged to account 439, Adjustments to Retained Earnings, to the extent
that it exceeds the balance in account 210.
Note A: Expenses in connection with the reacquisition or resale of
the utility's capital stock shall not be included herein.
Note B: The utility may write off capital stock expense in whole or
in part by charges to account 211, Miscellaneous Paid-in Capital.
215 Appropriated retained earnings.
This account shall include the amount of retained earnings which has
been appropriated or set aside for specific purposes. Separate
subaccounts shall be maintained under such titles as will designate the
purpose for which each appropriation was made.
215.1 Appropriated retained earnings -- Amortization reserve,
Federal.
A. This account shall be credited with such amounts as are
appropriated by a licensee from account 216, Unappropriated Retained
Earnings, for amortization reserve purposes in accordance with the
requirements of a hydroelectric project license.
B. This account shall be debited with only such items or amounts as
the Commission may require or approve. (See account 127, Amortization
Fund -- Federal.)
216 Unappropriated retained earnings.
This account shall include the balances, either debit or credit, of
unappropriated retained earnings arising from earnings of the utility.
This account shall not include any amounts representing the
undistributed earnings of subsidiary companies.
216.1 Unappropriated undistributed subsidiary earnings (Major only).
This account shall include the balances, either debit or credit, of
undistributed retained earnings of subsidiary companies since their
acquisition. When dividends are received from subsidiary companies
relating to amounts included in this account, this account shall be
debited and account 216, ''Unappropriated Retained Earnings,'' credited.
217 Reacquired capital stock.
A. This account shall include in a separate subdivision for each
class and series of capital stock, the cost of capital stock actually
issued by the utility and reacquired by it and not retired or canceled,
except, however, stock which is held by trustees in sinking or other
funds.
B. When reacquired capital stock is retired or canceled, the
difference between its cost, including commissions and expenses paid in
connection with the reacquisition, and its par or stated value plus any
premium and less any discount and expenses applicable to the shares
retired, shall be debited or credited, as appropriate, to account 210,
Gain on Resale or Cancellation of Reacquired Capital Stock, provided,
however, that debits shall be charged to account 439, Adjustments to
Retained Earnings, to the extent that they exceed the balance in account
210.
C. When reacquired capital stock is resold by the utility, the
difference between the amount received on the resale of the stock, less
expenses incurred in the resale, and the cost of the stock included in
this account shall be accounted for as outlined in paragraph B.
Note A: See account 124. Other Investments, for permissive
accounting treatment of stock reacquired under a definite plan for
resale.
Note B: The accounting for reacquired stock shall be as prescribed
herein unless otherwise specifically required by statute.
218 Noncorporate proprietorship (Nonmajor only).
This account shall include the investment in an unincorporated
utility by the proprietor thereof, and shall be charged with all
withdrawals from the business by its proprietor. At the end of each
calendar year the net income for the year, as developed in the income
account, shall be transferred to this account. (See optional accounting
procedure provided in Note C, hereunder.)
Note A: Amounts payable to the proprietor as just and reasonable
compensation for services performed shall not be charged to this account
but to appropriate operating expense or other accounts.
Note B: When the utility is owned by a partnership, a separate
account shall be kept to show the net equity of each member therein and
the transactions affecting the interest of each such partner.
Note C: This account may be restricted to the amount considered by
the proprietor to be the permanent investment in the business, subject
to change only by additional investment by the proprietor or the
withdrawal of portions thereof not representing net income. When this
option is taken, the retained earnings accounts shall be maintained and
entries thereto shall be made in accordance with the texts thereof.
221 Bonds.
This account shall include in a separate subdivision for each class
and series of bonds the face value of the actually issued and unmatured
bonds which have not been retired or canceled; also the face value of
such bonds issued by others the payment of which has been assumed by the
utility.
222 Reacquired bonds (Major only).
A. This account shall include the face value of bonds actually issued
or assumed by the utility and reacquired by it and not retired or
canceled. The account for reacquired debt shall not include securities
which are held by trustees in sinking or other funds.
B. When bonds are reacquired, the difference between face value,
adjusted for unamortized discount, expenses or premium, and the amount
paid upon reacquisition, shall be included in account 189, Unamortized
Loss on Reacquired Debt, or account 257, Unamortized Gain on Reacquired
Debt, as appropriate. (See General Instruction 17.)
223 Advances from associated companies.
A. This account shall include the face value of notes payable to
associated companies and the amount of open book accounts representing
advances from associated companies. It does not include notes and open
accounts representing indebtedness subject to current settlement which
are includible in account 233. Notes Payable to Associated Companies,
or account 234, Accounts Payable to Associated Companies.
B. The records supporting the entries to this account shall be so
kept that the utility can furnish complete information concerning each
note and open account.
224 Other long-term debt.
A. This account shall include, until maturity all long-term debt not
otherwise provided for. This covers such items as receivers'
certificates, real estate mortgages executed or assumed, assessments for
public improvements, notes and unsecured certificates of indebtedness
not owned by associated companies, receipts outstanding for long-term
debt, and other obligations maturing more than one year from date of
issue or assumption.
B. Separate accounts shall be maintained for each class of
obligation, and records shall be maintained to show for each class all
details as to date of obligation, date of maturity, interest dates and
rates, security for the obligation, etc.
Note: Miscellaneous long-term debt reacquired shall be accounted for
in accordance with the procedure set forth in account 222. Reacquired
Bonds.
225 Unamortized premium on long-term debt.
A. This account shall include the excess of the cash value of
consideration received over the face value upon the issuance or
assumption of long-term debt securities.
B. Amounts recorded in this account shall be amortized over the life
of each respective issue under a plan which will distribute the amount
equitably over the life of the security. The amortization shall be on a
monthly basis, with the amounts thereof to be credited to account 429,
Amortization of Premium on Debt -- Credit. (See General Instruction
17.)
226 Unamortized discount on long-term debt -- Debit.
A. This account shall include the excess of the face value of
long-term debt securities over the cash value of consideration received
therefor, related to the issue or assumption of all types and classes of
debt.
B. Amounts recorded in this account shall be amortized over the life
of the respective issues under a plan which will distribute the amount
equitably over the life of the securities. The amortization shall be on
a monthly basis, with the amounts thereof charged to account 428,
Amortization of Debt Discount and Expense. (See General Instruction
17.)
Special Instructions for Current and Accrued Liabilities. Current
and accrued liabilities are those obligations which have either matured
or which become due within one year from the date thereof: except,
however, bonds, receivers' certificates and similar obligations which
shall be classified as long-term debt until date of maturity; accrued
taxes, such as income taxes, which shall be classified as accrued
liabilities even though payable more than one year from date;
compensation awards, which shall be classified as current liabilities
regardless of date due; and minor amounts payable in installments which
may be classified as current liabilities. If a liability is due more
than one year from date of issuance or assumption by the utility, it
shall be credited to a long-term debt account appropriate for the
transaction, except, however, the current liabilities previously
mentioned.
227 Obligations under capital lease -- noncurrent.
This account shall include the portion not due within one year, of
the obligations recorded for the amounts applicable to leased property
recorded as assets in account 101.1, Property under Capital Leases,
account 120.6, Nuclear Fuel under Capital Leases, or account 121,
Nonutility Property.
18 CFR 46.6 Special Instructions to Accounts 228.1 Through 228.4
No amounts shall be credited to these accounts unless authorized by a
regulatory authority or authorities to be collected in a utility's rate
levels.
228.1 Accumulated provision for property insurance.
A. This account shall include amounts reserved by the utility for
losses through accident, fire, flood, or other hazards to its own
property or property leased from others, not covered by insurance. The
amounts charged to account 924, Property Insurance, or other appropriate
accounts to cover such risks shall be credited to this account. A
schedule of risks covered shall be maintained, giving a description of
the property involved, the character of the risks covered and the rates
used.
B. Charges shall be made to this account for losses covered, not to
exceed the account balance. Details of these charges shall be
maintained according to the year the casualty occurred which gave rise
to the loss.
228.2 Accumulated provision for injuries and damages.
A. This account shall be credited with amounts charged to account
925, Injuries and Damages, or other appropriate accounts, to meet the
probable liability, not covered by insurance, for deaths or injuries to
employees and others and for damages to property neither owned nor held
under lease by the utility.
B. When liability for any injury or damage is admitted by the utility
either voluntarily or because of the decision of a court or other lawful
authority, such as a workmen's compensation board, the admitted
liability shall be charged to this account and credited to the
appropriate current liability account. Details of these charges shall
be maintained according to the year the casualty occurred which gave
rise to the loss.
Note: Recoveries or reimbursements for losses charged to this
account shall be credited hereto; the cost of repairs to property of
others if provided for herein shall be charged to this account.
228.3 Accumulated provision for pensions and benefits.
A. This account shall include provisions made by the utility and
amounts contributed by employees for pensions, accident and death
benefits, savings, relief, hospital and other provident purposes, where
the funds are included in the assets of the utility either in general or
in segregated fund accounts.
B. Amounts paid by the utility for the purposes for which this
liability is established shall be charged hereto.
C. A separate account shall be kept for each kind of provision
included herein.
Note: If employee pension or benefit plan funds are not included
among the assets of the utility but are held by outside trustees,
payments into such funds, or accruals therefor, shall not be included in
this account.
228.4 Accumulated miscellaneous operating provisions.
A. This account shall include all operating provisions which are not
provided for elsewhere.
B. This account shall be maintained in such manner as to show the
amount of each separate provision and the nature and amounts of the
debits and credits thereto.
Note: This account includes only provisions as may be created for
operating purposes and does not include any reservations of income the
credits for which should be carried in account 215, Appropriated
Retained Earnings.
229 Accumulated provision for rate refunds.
A. This account shall be credited with amounts charged to Account
449.1, Provisions for Rate Refunds, to provide for estimated refunds
where the utility is collecting amounts in rates subject to refund.
B. When refund of any amount recorded in this account is ordered by a
regulatory authority, such amount shall be changed hereto and credited
to account 242, Miscellaneous Current and Accrued Liabilities.
C. Records supporting the entries to this account shall be kept so as
to identify each amount recorded by the respective rate filing docket
number.
231 Notes payable.
This account shall include the face value of all notes, drafts,
acceptances, or other similar evidences of indebtedness, payable on
demand or within a time not exceeding one year from date of issue, to
other than associated companies.
232 Accounts payable.
This account shall include all amounts payable by the utility within
one year, which are not provided for in other accounts.
233 Notes payable to associated companies.
234 Accounts payable to associated companies.
These accounts shall include amounts owing to associated companies on
notes, drafts, acceptances, or other similar evidences of indebtedness,
and open accounts payable on demand or not more than one year from date
of issue or creation.
Note: Exclude from these accounts notes and accounts which are
includible in account 223, Advances from Associated Companies.
235 Customer deposits.
This account shall include all amounts deposited with the utility by
customers as security for the payment of bills.
236 Taxes accrued.
A. This account shall be credited with the amount of taxes accrued
during the accounting period, corresponding debits being made to the
appropriate accounts for tax charges. Such credits may be based upon
estimates, but from time to time during the year as the facts become
known, the amount of the periodic credits shall be adjusted so as to
include as nearly as can be determined in each year the taxes applicable
thereto. Any amount representing a prepayment of taxes applicable to
the period subsequent to the date of the balance sheet, shall be shown
under account 165, Prepayments.
B. If accruals for taxes are found to be insufficient or excessive,
correction therefor shall be made through current tax accruals.
C. Accruals for taxes shall be based upon the net amounts payable
after credit for any discounts, and shall not include any amounts for
interest on tax deficiencies or refunds. Interest received on refunds
shall be credited to account 419, Interest and Dividend Income, and
interest paid on deficiencies shall be charged to account 431, Other
Interest Expense.
D. The records supporting the entries to this account shall be kept
so as to show for each class of taxes, the amount accrued, the basis for
the accrual, the accounts to which charged, and the amount of tax paid.
237 Interest accrued.
This account shall include the amount of interest accrued but not
matured on all liabilities of the utility not including, however,
interest which is added to the principal of the debt on which incurred.
Supporting records shall be maintained so as to show the amount of
interest accrued on each obligation.
238 Dividends declared (Major only).
This account shall include the amount of dividends which have been
declared but not paid. Dividends shall be credited to this account when
they become a liability.
239 Matured long-term debt (Major only).
This account shall include the amount of long-term debt (including
any obligation for premiums) matured and unpaid, without specific
agreement for extension of the time of payment and bonds called for
redemption but not presented.
240 Matured interest (Major only).
This account shall include the amount of matured interest on
long-term debt or other obligations of the utility at the date of the
balance sheet unless such interest is added to the principal of the debt
on which incurred.
241 Tax collections payable (Major only).
This account shall include the amount of taxes collected by the
utility through payroll deductions or otherwise pending transmittal of
such taxes to the proper taxing authority.
Note: Do not include liability for taxes assessed directly against
the utility which are accounted for as part of the utility's own tax
expense.
242 Miscellaneous current and accrued liabilities.
This account shall include the amount of all other current and
accrued liabilities not provided for elsewhere appropriately designated
and supported so as to show the nature of each liability.
1. Dividends declared but not paid.
2. Matured long-term debt.
3. Matured interest.
4. Taxes collected through payroll deductions or otherwise pending
transmittal to the proper taxing authority.
243 Obligations under capital leases -- current.
This account shall include the portion, due within one year, of the
obligations recorded for the amounts applicable to leased property
recorded as assets in account 101.1, Property under Capital Leases,
account 120.6, Nuclear Fuel under Capital Leases (Major only), or
account 121, Nonutility Property.
251 (Reserved)
252 Customer advances for construction.
This account shall include advances by customers for construction
which are to be refunded either wholly or in part. When a customer is
refunded the entire amount to which he is entitled, according to the
agreement or rule under which the advance was made, the balance, if any,
remaining in this account shall be credited to the respective plant
account.
253 Other deferred credits.
This account shall include advance billings and receipts and other
deferred credit items, not provided for elsewhere, including amounts
which cannot be entirely cleared or disposed of until additional
information has been received.
255 Accumulated deferred investment tax credits.
A. This account shall be credited with all investment tax credits
deferred by companies which have elected to follow deferral accounting,
partial or full, rather than recognizing in the income statement the
total benefits of the tax credit as realized. After such election, a
company may not transfer amounts from this account, except as authorized
herein and in accounts 411.4, Investment Tax Credit Adjustments, Utility
Operations, 411.5, Investment Tax Credit Adjustments, Nonutility
Operations, and 420, Investment Tax Credits, or with approval of the
Commission.
B. Where the company's accounting provides that investment tax
credits are to be passed on to customers, this account shall be debited
and account 411.4 credited with a proportionate amount determined in
relation to the average useful life of electric utility property to
which the tax credits relate or such lesser period of time as allowed by
a regulatory agency having rate jurisdiction. If, however, the deferral
procedure provides that investment tax credits are not to be passed on
to customers, the proportionate restorations to income shall be credited
to account 420.
C. Subdivisions of this account by department shall be maintained for
deferred investment tax credits that are related to nonelectric utility
or other operations. Contra entries affecting such account subdivisions
shall be appropriately recorded in account 413, Expenses of Electric
Plant Leased to Others; or account 414, Other Utility Operating Income.
Use of deferral or nondeferral accounting procedures adopted for
nonelectric utility or other operations are to be followed on a
consistent basis.
D. Separate records for electric and nonelectric utility or other
operations shall be maintained identifying the properties giving rise to
the investment tax credits for each year with the weighted-average
service life of such properties and any unused balances of such credits.
Such records are not necessary unless the tax credits are deferred.
256 Deferred gains from disposition of utility plant.
This account shall include gains from the sale or other disposition
of property previously recorded in account 105, Electric Plant Held for
Future Use, under the provisions of paragraphs B, C, and D thereof,
where such gains are significant and are to be amortized over a period
of 5 years, unless otherwise authorized by the Commission. The
amortization of the amounts in this account shall be made by credits to
account 411.6, Gains from Disposition of Utility Plant. (See account
105, Electric Plant Held for Future Use.)
257 Unamortized gain on reacquired debt.
This account shall include the amounts of discount realized upon
reacquisition or redemption of long-term debt. The amounts in this
account shall be amortized in accordance with General Instruction 17.
18 CFR 46.6 Special Instructions
18 CFR 46.6 Accumulated Deferred Income Taxes
Before using the deferred tax accounts provided below refer to
General Instruction 18. Comprehensive Interperiod Income Tax
Allocation.
The text of these accounts are designed primarily to cover deferrals
of Federal income taxes. However, they are also to be used when making
deferrals of state and local income taxes. Public utilities and
licensees which, in addition to an electric utility department, have
another utility department, gas, water, etc., and nonutility property
and which have deferred taxes on income with respect thereto shall
separately classify such deferrals in the accounts provided below so as
to allow ready identification of items relating to each utility
Deductions.
281 Accumulated deferred income taxes -- Accelerated amortization
property.
A. This account shall include tax deferrals resulting from adoption
of the principles of comprehensive interperiod tax allocation described
in General Instruction 18 of this system of accounts that relate to
property for which the utility has availed itself of the use of
accelerated (5-year) amortization of (1) certified defense facilities as
permitted by Section 168 of the Internal Revenue Code and (2) certified
pollution control facilities as permitted by Section 169 of the Internal
Revenue Code.
B. This account shall be credited and accounts 410.1, Provision for
Deferred Income Taxes, Utility Operating Income, or 410.2, Provision for
Deferred Income Taxes, Other Income and Deductions, as appropriate,
shall be debited with tax effects related to property described in
paragraph A above where taxable income is lower than pretax accounting
income due to differences between the periods in which revenue and
expense transactions affect taxable income and the periods in which they
enter into the determination of pretax accounting income.
C. This account shall be debited and accounts 411.1, Provision for
Deferred Income Taxes -- Credit, Utility Operating Income, or 411.2,
Provision for Deferred Income Taxes -- Credit, Other Income and
Deductions, as appropriate, shall be credited with tax effects related
to property described in paragraph A above where taxable income is
higher than pretax accounting income due to differences between the
periods in which revenue and expense transactions affect taxable income
and the periods in which they enter into the determination of pretax
accounting income.
D. The utility is restricted in its use of this account to the
purposes set forth above. It shall not transfer the balance in this
account or any portion thereof to retained earnings or make any use
thereof except as provided in the text of this account without prior
approval of the Commission. Upon the disposition by sale exchange,
transfer, abandonment or premature retirement of plant on which there is
a related balance herein, this account shall be charged with an amount
equal to the related income tax expense, if any, arising from such
disposition and account 411.1, Provision for Deferred Income Taxes --
Credit, Utility Operating Income, or 411.2, Provision for Deferred
Income Taxes -- Credit, Other Income and Deductions, as appropriate,
shall be credited. When the remaining balance, after consideration of
any related income tax expense, is less than $25,000, this account shall
be charged and account 411.1 or 411.2, as appropriate, credited with
such balance. If after consideration of any related income tax expense,
there is a remaining amount of $25,000 or more, the Commission shall
authorize or direct how such amount shall be accounted for at the time
approval for the disposition of accounting is granted. When plant is
disposed of by transfer to a wholly owned subsidiary the related balance
in this account shall also be transferred. When the disposition relates
to retirement of an item or items under a group method of depreciation
where there is no tax effect in the year of retirement, no entries are
required in this account if it can be determined that the related
balances would be necessary to be retained to offset future group item
tax deficiencies.
282 Accumulated deferred income taxes -- Other property.
A. This account shall include the tax deferrals resulting from
adoption of the principle of comprehensive interperiod income tax
allocation described in General Instruction 18 of this system of
accounts which are related to all property other than accelerated
amortization property.
B. This account shall be credited and accounts 410.1, Provision for
Deferred Income Taxes, Utility Operating Income, or 410.2, Provision for
Deferred Income Taxes, Other Income and Deductions, as appropriate,
shall be debited with tax effects related to property described in
paragraph A above where taxable income is lower than pretax accounting
income due to differences between the periods in which revenue and
expense transactions affect taxable income and the periods in which they
enter into the determination of pretax accounting income.
C. This account shall be debited and accounts 411.1, Provision for
Deferred Income Taxes -- Credit, Utility Operating Income, or 411.2,
Provision for Deferred Income Taxes -- Credit, Other Income and
Deductions, as appropriate, shall be credited with tax effects related
to property described in paragraph A above where taxable income is
higher than pretax accounting income due to differences between the
periods in which revenue and expense transactions affect taxable income
and the periods in which they enter into the determination of pretax
accounting income.
D. The utility is restricted in its use of this account to the
purposes set forth above. It shall not transfer the balance in this
account or any portion thereof to retained earnings or make any use
thereof except as provided in the text of this account without prior
approval of the Commission. Upon the disposition by sale, exchange,
transfer, abandonment or premature retirement of plant on which there is
a related balance herein, this account shall be charged with an amount
equal to the related income tax expense, if any, arising from such
disposition and account 411.1, Income Taxes Deferred in Prior Years --
Credit, Utility Operating Income, or 411.2, Income Taxes Deferred in
Prior Years -- Credit, Other Income and Deductions, shall be credited.
When the remaining balance after consideration of any related tax
expenses, is less than $25,000, this account shall be charged and
account 411.1 or 411.2, as appropriate, credited with such balance. If
after consideration of any related income tax expense, there is a
remaining amount of $25,000 or more, the Commission shall authorize or
direct how such amount shall be accounted for at the time approval for
the disposition of accounting is granted. When plant disposed of by
transfer to a wholly owned subsidiary, the related balance in this
account shall also be transferred. When the disposition relates to
retirement of an item or items under a group method of depreciation
where there is no tax effect in the year of retirement, no entries are
required in this account if it can be determined that the related
balance would be necessary to be retained to offset future group item
tax deficiencies.
283 Accumulated deferred income taxes -- Other.
A. This account shall include all credit tax deferrals resulting from
the adoption of the principles of comprehensive interperiod income tax
allocation described in General Instruction 18 of this system of
accounts other than those deferrals which are includible in Accounts
281, Accumulated Deferred Income Taxes -- Accelerated Amortization
Property and 282, Accumulated Deferred Income Taxes -- Other Property.
B. This account shall be credited and accounts 410.1 Provision for
Deferred Income Taxes, Utility Operating Income, or 410.2, Provision for
Deferred Income Taxes, Other Income and Deductions, as appropriate,
shall be debited with tax effects related to items described in
paragraph A above where taxable income is lower than pretax accounting
income due to differences between the periods in which revenue and
expense transactions affect taxable income and the periods in which they
enter into the determination of pretax accounting income.
C. This account shall be debited and accounts 411.1, Provision for
Deferred Income Taxes -- Credit, Utility Operating Income or 411.2,
Provision for Deferred Income Taxes -- Credit, Other Income and
Deductions, as appropriate, shall be credited with tax effects related
to items described in paragraph A above where taxable income is higher
than pretax accounting income due to differences between the periods in
which revenue and expense transactions affect taxable income and the
periods in which they enter into the determination of pretax accounting
income.
D. Records with respect to entries to this account, as described
above, and the account balance, shall be so maintained as to show the
factors of calculation with respect to each annual amount of the item or
class of items.
E. The utility is restricted in its use of this account to the
purposes set forth above. It shall not transfer the balance in the
account or any portion thereof to retained earnings or to any other
account or make any use thereof except as provided in the text of this
account, without prior approval of the Commission. Upon the disposition
by sale, exchange, transfer, abandonment or premature retirement of
items on which there is a related balance herein, this account shall be
charged with an amount equal to the related income tax effect, if any,
arising from such disposition and account 411.1, Provision For Deferred
Income Taxes -- Credit, Utility Operating Income, or 411.2, Provision
For Deferred Income Taxes -- Credit, Other Income and Deductions, as
appropriate, shall be credited. When the remaining balance, after
consideration of any related tax expenses, is less than $25,000, this
account shall be charged and account 411.1 or 411.2, as appropriate,
credited with such balance. If after consideration of any related
income tax expense, there is a remaining amount of $25,000 or more, the
Commission shall authorize or direct how such amount shall be accounted
for at the time approval for the disposition of accounting is granted.
When plant is disposed of by transfer to a wholly owned subsidiary,
the related balance in this account shall also be transferred. When the
disposition relates to retirement of an item or items under a group
method of depreciation where there is no tax effect in the year of
retirement, no entries are required in this account if it can be
determined that the related balance would be necessary to be retained to
offset future group item tax deficiencies.
Electric Plant Chart of Accounts
301 Organization.
302 Franchises and consents.
303 Miscellaneous intangible plant.
310 Land and land rights.
311 Structures and improvements.
312 Boiler plant equipment.
313 Engines and engine-driven generators.
314 Turbogenerator units.
315 Accessory electric equipment.
316 Miscellaneous power plant equipment
320 Land and land rights (Major only).
321 Structures and improvements (Major only).
322 Reactor plant equipment (Major only).
323 Turbogenerator units (Major only).
324 Accessory electric equipment (Major only).
325 Miscellaneous power plant equipment (Major only).
330 Land and land rights.
331 Structures and improvements.
332 Reservoirs, dams, and waterways.
333 Water wheels, turbines and generators.
334 Accessory electric equipment.
335 Miscellaneous power plant equipment.
336 Roads, railroads and bridges.
340 Land and land rights.
341 Structures and improvements.
342 Fuel holders, producers, and accessories.
343 Prime movers.
344 Generators.
345 Accessory electric equipment.
346 Miscellaneous power plant equipment.
350 Land and land rights.
351 (Reserved)
352 Structures and improvements.
353 Station equipment.
354 Towers and fixtures.
355 Poles and fixtures.
356 Overhead conductors and devices.
357 Underground conduit.
358 Underground conductors and devices.
359 Roads and trails.
360 Land and land rights.
361 Structures and improvements.
362 Station equipment.
363 Storage battery equipment.
364 Poles, towers and fixtures.
365 Overhead conductors and devices
366 Underground conduit.
367 Underground conductors and devices
368 Line transformers.
369 Services.
370 Meters.
371 Installations on customers' premises
372 Leased property on customers' premises.
373 Street lighting and signal systems.
389 Land and land rights.
390 Structures and improvements.
391 Office furniture and equipment.
392 Transportation equipment.
393 Stores equipment.
394 Tools, shop and garage equipment.
395 Laboratory equipment.
396 Power operated equipment.
397 Communication equipment.
398 Miscellaneous equipment.
399 Other tangible property.
18 CFR 46.6 Electric Plant Accounts
301 Organization.
This account shall include all fees paid to federal or state
governments for the privilege of incorporation and expenditures incident
to organizing the corporation, partnership, or other enterprise and
putting it into readiness to do business.
1. Cost of obtaining certificates authorizing an enterprise to engage
in the public-utility business.
2. Fees and expenses for incorporation
3. Fees and expenses for mergers or consolidations.
4. Office expenses incident to organizing the utility.
5. Stock and minute books and corporate seal.
Note A: This account shall not include any discounts upon securities
issued or assumed; nor shall it include any costs incident to
negotiating loans, selling bonds or other evidences of debt or expenses
in connection with the authorization, issuance or sale of capital stock.
Note B: Exclude from this account and include in the appropriate
expense account the cost of preparing and filing papers in connection
with the extension of the term of incorporation unless the first
organization costs have been written off. When charges are made to this
account for expenses incurred in mergers, consolidations, or
reorganizations, amounts previously included herein or in similar
accounts in the books of the companies concerned shall be excluded from
this account.
302 Franchises and consents.
A. This account shall include amounts paid to the federal government,
to a state or to a political subdivision thereof in consideration for
franchises, consents, water power licenses, or certificates, running in
perpetuity or for a specified term of more than one year, together with
necessary and reasonable expenses incident to procuring such franchises,
consents, water power licenses, or certificates of permission and
approval, including expenses of organizing and merging separate
corporations, where statutes require, solely for the purpose of
acquiring franchises.
B. If a franchise, consent, water power license or certificate is
acquired by assignment, the charge to this account in respect thereof
shall not exceed the amount paid therefor by the utility to the
assignor, nor shall it exceed the amount paid by the original grantee,
plus the expense of acquisition to such grantee. Any excess of the
amount actually paid by the utility over the amount above specified
shall be charged to account 426.5, Other Deductions.
C. When any franchise has expired, the book cost thereof shall be
credited hereto and charged to account 426.5, Other Deductions, or to
account 111, Accumulated Provision for Amortization of Electric Utility
Plant (for Nonmajor utilities, account 110, Accumulated Provision for
Depreciation and Amortization of Electric Plant), as appropriate.
D. Records supporting this account shall be kept so as to show
separately the book cost of each franchise or consent.
Note: Annual or other periodic payments under franchises shall not
be included herein but in the appropriate operating expense account.
303 Miscellaneous intangible plant.
A. This account shall include the cost of patent rights, licenses,
privileges, and other intangible property necessary or valuable in the
conduct of utility operations and not specifically chargeable to any
other account.
B. When any item included in this account is retired or expires, the
book cost thereof shall be credited hereto and charged to account 426.5,
Other Deductions, or account 111, Accumulated Provision for Amortization
of Electric Utility Plant (for Nonmajor utilities, account 110,
Accumulated Provision for Depreciation and Amortization of Electric
Plant), as appropriate.
C. This account shall be maintained in such a manner that the utility
can furnish full information with respect to the amounts included
herein.
310 Land and land rights.
This account shall include the cost of land and land rights used in
connection with steam-power generation. (See electric plant instruction
7.)
311 Structures and improvements.
This account shall include the cost in place of structures and
improvements used in connection with steam-power generation. (See
electric plant instruction 8.)
Note: Include steam production roads and railroads in this account.
312 Boiler plant equipment.
This account shall include the cost installed of furnaces, boilers,
coal and ash handling and coal preparing equipment, steam and feed water
piping, boiler apparatus and accessories used in the production of
steam, mercury, or other vapor, to be used primarily for generating
electricity.
1. Ash handling equipment, including hoppers, gates, cars, conveyors,
hoists, sluicing equipment, including pumps and motors, sluicing water
pipe and fittings, sluicing trenches and accessories, etc., except
sluices which are a part of a building.
2. Boiler feed system, including feed water heaters, evaporator
condensers, heater drain pumps, heater drainers, deaerators, and vent
condensers, boiler feed pumps, surge tanks, feed water regulators, feed
water measuring equipment, and all associated drives.
3. Boiler plant cranes and hoists and associated drives.
4. Boilers and equipment, including boilers and baffles, economizers,
superheaters, soot blowers, foundations and settings, water walls,
arches, grates, insulation, blow-down system, drying out of new boilers,
also associated motors or other power equipment.
5. Breeching and accessories, including breeching, dampers, soot
spouts, hoppers and gates, cinder eliminators, breeching insulation,
soot blowers and associated motors.
6. Coal handling and storage equipment, including coal towers, coal
lorries, coal cars, locomotives and tracks when devoted principally to
the transportation of coal, hoppers, downtakes, unloading and hoisting
equipment, skip hoists and conveyors, weighing equipment, magnetic
separators, cable ways, housings and supports for coal handling
equipment.
7. Draft equipment, including air preheaters and accessories, induced
and forced draft fans, air ducts, combustion control mechanisms, and
associated motors or other power equipment.
8. Gas-burning equipment, including holders, burner equipment and
piping, control equipment, etc.
9. Instruments and devices, including all measuring, indicating, and
recording equipment for boiler plant service together with mountings and
supports.
10. Lighting systems.
11. Oil-burning equipment, including tanks, heaters, pumps with
drive, burner equipment and piping, control equipment, etc.
12. Pulverized fuel equipment, including pulverizers, accessory
motors, primary air fans, cyclones and ducts, dryers, pulverized fuel
bins, pulverized fuel conveyors and equipment, burners, burner piping,
priming equipment, air compressors, motors, etc.
13. Stacks, including foundations and supports, stack steel and
ladders, stack brick work, stack concrete, stack lining, stack painting
(first), when set on separate foundations, independent of substructure
or superstructure of building.
14. Station piping, including pipe, valves, fittings, separators,
traps, desuperheaters, hangers, excavation, covering, etc., for station
piping system, including all steam, condensate, boiler feed and water
supply piping, etc., but not condensing water, plumbing, building
heating, oil, gas, air piping or piping specifically provided for in
account 313.
15. Stoker or equivalent feeding equipment, including stokers and
accessory motors, clinker grinders, fans and motors, etc.
16. Ventilating equipment.
17. Water purification equipment, including softeners and
accessories, evaporators and accessories, heat exchangers, filters,
tanks for filtered or softened water, pumps, motors, etc.
18. Water-supply systems, including pumps, motors, strainers,
raw-water storage tanks, boiler wash pumps, intake and discharge pipes
and tunnels not a part of a building.
19. Wood fuel equipment, including hoppers, fuel hogs and
accessories, elevators and conveyors, bins and gates, spouts, measuring
equipment and associated drives.
Note: When the system for supplying boiler or condenser water is
elaborate, as when it includes a dam, reservoir, canal, pipe line,
cooling ponds, or where gas or oil is used as a fuel for producing steam
and is supplied through a pipe line system owned by the utility, the
cost of such special facilities shall be charged to a subdivision of
account 311, Structures and Improvements.
313 Engines and engine-driven generators.
This account shall include the cost installed of steam engines,
reciprocating or rotary, and their associated auxiliaries; and
engine-driven main generators, except turbogenerator units.
1. Air cleaning and cooling apparatus, including blowers, drive
equipment, air ducts not a part of building, louvers, pumps, hoods, etc.
2. Belting, shafting, pulleys, reduction gearing, etc.
3. Circulating pumps, including connections between condensers and
intake and discharge tunnels.
4. Cooling system, including towers, pumps, tank, and piping.
5. Condensers, including condensate pumps, air and vacuum pumps,
ejectors, unloading valves and vacuum breakers, expansion devices,
screens, etc.
6. Cranes, hoists, etc., including items wholly identified with items
listed herein.
7. Engines, reciprocating or rotary.
8. Fire-extinguishing systems.
9. Foundations and settings, especially constructed for and not
expected to outlast the apparatus for which provided.
10. Generators -- Main, a.c. or d.c., including field rheostats and
connections for self-excited units, and excitation systems when
identified with the generating unit.
11. Governors.
12. Lighting systems.
13. Lubricating systems including gauges, filters, tanks, pumps,
piping, motors, etc.
14. Mechanical meters, including gauges, recording instruments,
sampling and testing equipment.
15. Piping -- main exhaust, including connections between generator
and condenser and between condenser and hotwell.
16. Piping -- main steam, including connections from main throttle
valve to turbine inlet.
17. Platforms, railings, steps, gratings, etc., appurtenant to
apparatus listed herein.
18. Pressure oil system, including accumulators, pumps, piping,
motors, etc.
19. Throttle and inlet valve.
20. Tunnels, intake and discharge, for condenser system, when not a
part of a structure.
21. Water screens, motors, etc.
314 Turbogenerator units.
This account shall include the cost installed of main turbine-driven
units and accessory equipment used in generating electricity by steam.
1. Air cleaning and cooling apparatus, including blowers, drive
equipment, air ducts not a part of building, louvers, pumps, hoods, etc.
2. Circulating pumps, including connections between condensers and
intake and discharge tunnels.
3. Condensers, including condensate pumps, air and vacuum pumps,
ejectors, unloading valves and vacuum breakers, expansion devices,
screens, etc.
4. Generator hydrogen, gas piping and detrainment equipment.
5. Cooling system, including towers, pumps, tanks, and piping.
6. Cranes, hoists, etc., including items wholly identified with items
listed herein.
7. Excitation system, when identified with main generating units.
8. Fire-extinguishing systems.
9. Foundations and settings, especially constructed for and not
expected to outlast the apparatus for which provided.
10. Governors.
11. Lighting systems.
12. Lubricating systems, including gauges, filters, water separators,
tanks, pumps, piping, motors, etc.
13. Mechanical meters, including gauges, recording instruments,
sampling and testing equipment.
14. Piping -- main exhaust, including connections between
turbogenerator and condenser and between condenser and hotwell.
15. Piping -- main steam, including connections from main throttle
valve to turbine inlet.
16. Platforms, railings, steps, gratings, etc., appurtenant to
apparatus listed herein.
17. Pressure oil systems, including accumulators, pumps, piping,
motors, etc.
18. Steelwork, specially constructed for apparatus listed herein.
19. Throttle and inlet valve.
20. Tunnels, intake and discharge, for condenser system, when not a
part of structure, water screens, etc.
21. Turbogenerators -- main, including turbine and generator, field
rheostats and electric connections for self-excited units.
22. Water screens, motors, etc.
23. Moisture separator for turbine steam.
24. Turbine lubricating oil (initial charge).
315 Accessory electric equipment.
This account shall include the cost installed of auxiliary generating
apparatus, conversion equipment, and equipment used primarily in
connection with the control and switching of electric energy produced by
steam power, and the protection of electric circuits and equipment,
except electric motors used to drive equipment included in other
accounts. Such motors shall be included in the account in which the
equipment with which they are associated is included.
1. Auxiliary generators, including boards, compartments, switching
equipment, control equipment, and connections to auxiliary power bus.
2. Excitation system, including motor, turbine and dual-drive exciter
sets and rheostats, storage batteries and charging equipment, circuit
breakers, panels and accessories, knife switches and accessories, surge
arresters, instrument shunts, conductors and conduit, special supports
for conduit, generator field and exciter switch panels, exciter bus tie
panels, generator and exciter rheostats, etc., special housing,
protective screens, etc.
3. Generator main connections, including oil circuit breakers and
accessories, disconnecting switches and accessories, operating
mechanisms and interlocks, current transformers, potential transformers,
protective relays, isolated panels and equipment, conductors and
conduit, special supports for generator main leads grounding switch,
etc., special housings, protective screens, etc.
4. Station buses including main, auxiliary, transfer, synchronizing
and fault ground buses, including oil circuit breakers and accessories,
disconnecting switches and accessories, operating mechanisms and
interlocks, reactors and accessories, voltage regulators and
accessories, compensators, resistors, starting transformers, current
transformers, potential transformers, protective relays, storage
batteries and charging equipment, isolated panels and equipment,
conductors and conduit, special supports, special housings, concrete
pads, general station grounding system, special fire-extinguishing
system, and test equipment.
5. Station control system, including station switchboards with panel
wiring, panels with instruments and control equipment only, panels with
switching equipment mounted or mechanically connected, truck-type boards
complete, cubicles, station supervisory control boards, generator and
exciter signal stands, temperature recording devices, frequency-control
equipment, master clocks, watt-hour meters and synchronoscope in the
turbine room, station totalizing wattmeter, boiler-room load indicator
equipment, storage batteries, panels and charging sets, instrument
transformers for supervisory metering, conductors and conduit, special
supports for conduit, switchboards, batteries, special housing for
batteries, protective screens, doors, etc.
Note A: Do not include in this account transformers and other
equipment used for changing the voltage or frequency of electricity for
the purposes of transmission or distribution.
Note B: When any item of equipment listed herein is used wholly to
furnish power to equipment included in another account, its cost shall
be included in such other account.
316 Miscellaneous power plant equipment.
This account shall include the cost installed of miscellaneous
equipment in and about the steam generating plant devoted to general
station use, and which is not properly includible in any of the
foregoing steam-power production accounts.
1. Compressed air and vacuum cleaning systems, including tanks,
compressors, exhausters, air filters, piping, etc.
2. Cranes and hoisting equipment, including cranes, cars, crane
rails, monorails, hoists, etc., with electric and mechanical
connections.
3. Fire-extinguishing equipment for general station use.
4. Foundations and settings specially constructed for and not
expected to outlast the apparatus for which provided.
5. Locomotive cranes not includible elsewhere.
6. Locomotives not includible elsewhere.
7. Marine equipment, including boats, barges, etc.
8. Miscellaneous belts, pulleys, countershafts, etc.
9. Miscellaneous equipment, including atmospheric and weather
indicating devices, intrasite communication equipment, laboratory
equipment, signal systems, callophones emergency whistles and sirens,
fire alarms, insect-control equipment, and other similar equipment.
10. Railway cars not includible elsewhere.
11. Refrigerating systems, including compressors, pumps, cooling
coils, etc.
12. Station maintenance equipment, including lathes, shapers,
planers, drill presses, hydraulic presses, grinders, etc., with motors,
shafting, hangers, pulleys, etc.
13. Ventilating equipment, including items wholly identified with
apparatus listed herein.
Note: When any item of equipment listed herein is wholly used in
connection with equipment included in another account, its cost shall be
included in such other account.
320 Land and land rights (Major only).
This account shall include the cost of land and land rights used in
connection with nuclear power generation. (See electric plant
instruction 7.)
321 Structures and improvements (Major only).
This account shall include the cost in place of structures and
improvements used and useful in connection with nuclear power
generation. (See electric plant instruction 8.)
Note: Include vapor containers and nuclear production roads and
railroads in this account.
322 Reactor plant equipment (Major only).
This account shall include the installed cost of reactors, reactor
fuel handling and storage equipment, pressurizing equipment, coolant
charging equipment, purification and discharging equipment, radioactive
waste treatment and disposal equipment, boilers, steam and feed water
piping, reactor and boiler apparatus and accessories and other reactor
plant equipment used in the production of steam to be used primarily for
generating electricity, including auxiliary superheat boilers and
associated equipment in systems which change temperatures or pressure of
steam from the reactor system.
1. Auxiliary superheat boilers and associated fuel storage handling
preparation and burning equipment, etc. (See account 312 Boiler Plant
Equipment, for items, but exclude water supply, water flow lines, and
steam lines, as well as other equipment not strictly within the
superheat function.)
2. Boiler feed system, including feed water heaters, evaporator
condensers, heater drain pumps, heater drainers, deaerators, and vent
condensers, boiler feed pumps, surge tanks, feed water regulators, feed
water measuring equipment, and all associated drivers.
3. Boilers and heat exchangers.
4. Instruments and devices, including all measuring, indicating, and
recording equipment for reactor and boiler plant service together with
mountings and supports.
5. Lighting systems.
6. Moderators, such as heavy water, graphite, etc., initial charge.
7. Reactor coolant; primary and secondary systems (initial charge).
8. Radioactive waste treatment and disposal equipment, including
tanks, ion exchangers, incinerators, condensers, chimneys, and diluting
fans and pumps.
9. Foundations and settings, especially constructed for and not
expected to outlast the apparatus for which provided.
10. Reactor including shielding, control rods and mechanisms.
11. Reactor fuel handling equipment, including manipulating and
extraction tools, underwater viewing equipment, seal cutting and welding
equipment, fuel transfer equipment and fuel disassembly machinery.
12. Reactor fuel element failure detection system.
13. Reactor emergency poison container and injection system.
14. Reactor pressurizing and pressure relief equipment, including
pressurizing tanks and immersion heaters.
15. Reactor coolant or moderator circulation charging, purification,
and discharging equipment, including tanks, pumps, heat exchangers,
demineralizers, and storage.
16. Station piping, including pipes, valves, fittings, separators,
traps, desuperheaters, hangers, excavation, covering, etc., for station
piping system, including all-reactor coolant, steam, condensate, boiler
feed and water supply piping, etc., but not condensing water, plumbing,
building heating, oil, gas, or air piping.
17. Ventilating equipment.
18. Water purification equipment, including softeners,
demineralizers, and accessories, evaporators and accessories, heat
exchangers, filters, tanks for filtered or softened water, pumps,
motors, etc.
19. Water supply systems, including pumps, motors, strainers,
raw-water storage tanks, boiler wash pumps, intake and discharge pipes
and tunnels not a part of a building.
20. Reactor plant cranes and hoists, and associated drives.
Note: When the system for supplying boiler or condenser water is
elaborate, as when it includes a dam, reservoir, canal, pipe lines, or
cooling ponds, the cost of such special facilities shall be charged to a
subdivision of account 321, Structures and Improvements.
323 Turbogenerator units (Major only).
This account shall include the cost installed of main turbine-driven
units and accessory equipment used in generating electricity by steam.
1. Air cleaning and cooling apparatus, including blowers, drive
equipment, air ducts not a part of building, louvers, pumps, hoods, etc.
2. Circulating pumps, including connections between condensers, and
intake and discharge tunnels.
3. Condensers, including condensate pumps, air and vacuum pumps
ejectors, unloading valves and vacuum breakers, expansion devices,
screens, etc.
4. Generator hydrogen gas piping system and hydrogen detrainment
equipment, and bulk hydrogen gas storage equipment.
5. Cooling system, including towers, pumps, tanks and piping.
6. Cranes, hoists, etc., including items wholly identified with items
listed herein.
7. Excitation system, when identified with main generating units.
8. Fire extinguishing systems.
9. Foundations and settings, especially constructed for and not
expected to outlast the apparatus for which provided.
10. Governors.
11. Lighting systems.
12. Lubricating systems, including gauges filters, water separators,
tanks, pumps, piping motors, etc.
13. Mechanical meters, including gauges recording instruments,
sampling and testing equipment.
14. Piping -- main exhaust, including connections between
turbogenerator and condenser and between condenser and hotwell.
15. Piping -- main steam, including connections from main throttle
valve to turbine inlet.
16. Platforms, railings, steps, gratings, etc. appurtenant to
apparatus listed herein.
17. Pressure oil systems, including accumulators, pumps, piping,
motors, etc.
18. Steelwork, specially constructed for apparatus listed herein.
19. Throttle and inlet valve.
20. Tunnels, intake and discharge, for condenser system, when not a
part of structure water screens, etc.
21. Turbogenerators -- main, including turbine and generator, field
rheostats and electric connections for self-excited units.
22. Water screens, motors, etc.
23 Moisture separators for turbine steam.
24. Turbine lubricating oil (initial charge).
324 Accessory electric equipment (Major only).
This account shall include the cost installed of auxiliary generating
apparatus, conversion equipment, and equipment used primarily in
connection with the control and switching of electric energy produced by
nuclear power, and the protection of electric circuits and equipment,
except electric motors used to drive equipment included in other
accounts. Such motors shall be included in the account in which the
equipment with which they are associated is included.
Note: Do not include in this account transformers and other
equipment used for changing the voltage or frequency of electric energy
for the purpose of transmission or distribution.
1. Auxiliary generators, including boards, compartments, switching
equipment, control equipment, and connections to auxiliary power bus.
2. Excitation system, including motor, turbine and dual-drive exciter
sets and rheostats, storage batteries and charging equipment, circuit
breakers, panels and accessories, knife switches and accessories, surge
arresters, instrument shunts, conductors and conduit, special supports
for conduit, generator field and exciter switch panels, exciter bus tie
panels, generator and exciter rheostats, etc., special housing,
protective screens, etc.
3. Generator main connections, including oil circuit breakers and
accessories, disconnecting switches and accessories, operating
mechanisms and interlocks, current transformers, potential transformers,
protective relays, isolated panels and equipment, conductors and
conduit, special supports for generator main leads, grounding switch,
etc., special housings, protective screens, etc.
4. Station buses, including main, auxiliary, transfer, synchronizing
and fault ground buses, including oil circuit breakers and accessories,
disconnecting switches and accessories, operating mechanisms and
interlocks, reactors and accessories, voltage regulators and
accessories, compensators, resistors, starting transformers, current
transformers, potential transformers, protective relays, storage
batteries and charging equipment, isolated panels and equipment,
conductors and conduit, special supports, special housings, concrete
pads, general station grounding system, fire-extinguishing system, and
test equipment.
5. Station control system, including station switchboards with panel
wiring, panels with instruments and control equipment only, panels with
switching equipment mounted or mechanically connected, truck-type boards
complete, cubicles, station supervisory control boards, generator and
exciter signal stands, temperature recording devices, frequency-control
equipment, master clocks, watt-hour meters and synchronoscope in the
turbine room, station totalizing wattmeter, boiler-room load indicator
equipment, storage batteries, panels and charging sets, instrument
transformers for supervisory metering, conductors and conduit, special
supports for conduit, switchboards, batteries, special housing for
batteries, protective screens, doors, etc.
Note: When any item of equipment listed herein is used wholly to
furnish power to equipment included in another account, its cost shall
be included in such other account
325 Miscellaneous power plant equipment (Major only).
This account shall include the cost installed of miscellaneous
equipment in and about the nuclear generating plant devoted to general
station use, and which is not properly includible in any of the
foregoing nuclear-power production accounts.
1. Compressed air and vacuum cleaning systems, including tanks,
compressors, exhausters, air filters, piping, etc.
2. Cranes and hoisting equipment, including cranes, cars, crane
rails, monorails, hoists, etc., with electric and mechanical
connections.
3. Fire-extinguishing equipment for general station and site use.
4. Foundations and settings specially constructed for and not
expected to outlast the apparatus for which provided.
5. Locomotive cranes not includible elsewhere.
6. Locomotives not included elsewhere.
7. Marine equipment, including boats, barges, etc.
8. Miscellaneous belts, pulleys, countershafts, etc.
9. Miscellaneous equipment, including atmospheric and weather
recording devices, intrasite communication equipment, laboratory
equipment, signal systems, callophones emergency whistles and sirens,
fire alarms, insect-control equipment, and other similar equipment.
10. Railway cars or special shipping containers not includible
elsewhere.
11. Refrigerating systems, including compressors, pumps, cooling
coils, etc.
12. Station maintenance equipment, including lathes, shapers,
planers, drill presses, hydraulic presses, grinders, etc., with motors,
shafting, hangers, pulleys, etc.
13. Ventilating equipment, including items wholly identified with
apparatus listed herein.
14. Station and area radiation monitoring equipment.
Note: When any item of equipment listed herein is wholly used in
connection with equipment included in another account, its cost shall be
included in such other account.
330 Land and land rights.
This account shall include the cost of land and land rights used in
connection with hydraulic power generation. (See electric plant
instruction 7.) For Major utilities, it shall also include the cost of
land and land rights used in connection with (1) the conservation of
fish and wildlife, and (2) recreation. Separate subaccounts shall be
maintained for each of the above.
331 Structures and improvements.
This account shall include the cost in place of structures and
improvements used in connection with hydraulic power generation. (See
electric plant instruction 8.) For Major utilities, it shall also
include the cost in place of structures and improvements used in
connection with (1) the conservation of fish and wildlife, and (2)
recreation. Separate subaccounts shall be maintained for each of the
above.
332 Reservoirs, dams, and waterways.
This account shall include the cost in place of facilities used for
impounding, collecting, storage, diversion, regulation, and delivery of
water used primarily for generating electricity. For Major utilities,
it shall also include the cost in place of facilities used in connection
with (a) the conservation of fish and wildlife, and (b) recreation.
Separate subaccounts shall be maintained for each of the above. (See
electric plant instruction 8C.)
1. Bridges and culverts (when not a part of roads or railroads).
2. Clearing and preparing land.
3. Dams, including wasteways, spillways, flash boards, spillway gates
with operating and control mechanisms, tunnels, gate houses, and fish
ladders.
4. Dikes and embankments.
5. Electric system, including conductors control system,
transformers, lighting fixtures, etc.
6. Excavation, including shoring, bracing, bridging, refill, and
disposal of excess excavated material.
7. Foundations and settings specially constructed for and not
expected to outlast the apparatus for which provided.
8. Intakes, including trash racks, rack cleaners, control gates and
valves with operating mechanisms, and intake house when not a part of
station structure.
9. Platforms, railings, steps, gratings, etc., appurtenant to
structures listed herein.
10. Power line wholly identified with items included herein.
11. Retaining walls.
12. Water conductors and accessories, including canals, tunnels,
flumes, penstocks pipe conductors, forebays, tailraces, navigation locks
and operating mechanisms, waterhammer and surge tanks, and supporting
trestles and structures.
13. Water storage reservoirs, including dams, flashboards, spillway
gates and operating mechanisms, inlet and outlet tunnels, regulating
valves and valve towers, silt and mud sluicing tunnels with valve or
gate towers, and all other structures wholly identified with any of the
foregoing items.
333 Water wheels, turbines and generators.
This account shall include the cost installed of water wheels and
hydraulic turbines (from connection with penstock or flume to tailrace)
and generators driven thereby devoted to the production of electricity
by water power or for the production of power for industrial or other
purposes, if the equipment used for such purposes is a part of the
hydraulic power plant works.
1. Exciter water wheels and turbines, including runners, gates,
governors, pressure regulators, oil pumps, operating mechanisms, scroll
cases, draft tubes, and draft-tube supports.
2. Fire-extinguishing equipment.
3. Foundations and settings, specially constructed for and not
expected to outlast the apparatus for which provided.
4. Generator cooling system, including air cooling and washing
apparatus, air fans and accessories, air ducts, etc.
5. Generators -- main, a.c. or d.c., including field rheostats and
connections for self-excited units and excitation system when identified
with the generating unit.
6. Lighting systems.
7. Lubricating systems, including gauges, filters, tanks, pumps,
piping, etc.
8. Main penstock valves and appurtenances, including main valves,
control equipment, bypass valves and fittings, and other accessories.
9. Main turbines and water wheels, including runners, gates,
governors, pressure regulators, oil pumps, operating mechanisms, scroll
cases, draft tubes, and draft-tube supports.
10. Mechanical meters and recording instruments.
11. Miscellaneous water-wheel equipment, including gauges,
thermometers, meters, and other instruments.
12. Platforms, railings, steps, gratings, etc., appurtenant to
apparatus listed herein.
13. Scroll case filling and drain system, including gates, pipe,
valves, fittings, etc.
14. Water-actuated pressure-regulator system, including tanks and
housings, pipes, valves, fittings and insulations, piers and anchorage,
and excavation and backfill.
334 Accessory electric equipment.
This account shall include the cost installed of auxiliary generating
apparatus, conversion equipment, and equipment used primarily in
connection with the control and switching of electric energy produced by
hydraulic power and the protection of electric circuits and equipment,
except electric motors used to drive equipment included in other
accounts, such motors being included in the account in which the
equipment with which they are associated is included.
1. Auxiliary generators, including boards, compartments, switching
equipment, control equipment, and connections to auxiliary power bus.
2. Excitation system, including motor, turbine, and dual-drive
exciter sets and rheostats, storage batteries and charging equipment,
circuit breakers, panels and accessories, knife switches and
accessories, surge arresters, instrument shunts, conductors and conduit,
special supports for conduit, generator field and exciter switch panels,
exciter bus tie panels, generator and exciter rheostats, etc., special
housings, protective screens, etc.
3. Generator main connections, including oil circuit breakers and
accessories, disconnecting switches and accessories, operating
mechanisms and interlocks, current transformers, potential transformers,
protective relays, isolated panels and equipment, conductors and
conduit, special supports for generator main leads, grounding switch,
etc., special housings, protective screens, etc.
4. Station buses, including main, auxiliary, transfer, synchronizing,
and fault ground buses, including oil circuit breakers and accessories,
disconnecting switches and accessories, operating mechanisms and
interlocks, reactors and accessories, voltage regulators and
accessories, compensators, resistors starting transformers, current
transformers, potential transformers, protective relays, storage
batteries, and charging equipment, isolated panels and equipment,
conductors and conduit, special supports, special fire-extinguishing
system, and test equipment.
5. Station control system, including station switchboards with panel
wiring panels with instruments and control equipment only, panels with
switching equipment mounted or mechanically connected, trucktype boards
complete, cubicles, station supervisory control devices, frequency
control equipment, master clocks, watt-hour meter, station totalizing
watt-meter, storage batteries, panels and charging sets, instrument
transformers for supervisory metering, conductors and conduit, special
supports for conduit, switchboards, batteries, special housings for
batteries, protective screens, doors, etc.
Note A: Do not include in this account transformers and other
equipment used for changing the voltage or frequency of electricity for
the purpose of transmission or distribution.
Note B: When any item of equipment listed herein is used wholly to
furnish power to equipment, it shall be included in such equipment
account.
335 Miscellaneous power plant equipment.
This account shall include the cost installed of miscellaneous
equipment in and about the hydroelectric generating plant which is
devoted to general station use and is not properly includible in other
hydraulic production accounts. For Major utilities, it shall also
include the cost of equipment used in connection with (a) the
conservation of fish and wildlife, and (b) recreation. Separate
subaccounts shall be maintained for each of the above.
1. Compressed air and vacuum cleaning systems, including tanks,
compressors, exhausters, air filters, piping, etc.
2. Cranes and hoisting equipment, including cranes, cars, crane
rails, monorails, hoists, etc., with electric and mechanical
connections.
3. Fire-extinguishing equipment for general station use.
4. Foundations and settings, specially constructed for and not
expected to outlast the apparatus for which provided.
5. Locomotive cranes not includible elsewhere.
6. Locomotives not includible elsewhere.
7. Marine equipment, including boats, barges, etc.
8. Miscellaneous belts, pulleys, countershafts, etc.
9. Miscellaneous equipment, including atmospheric and weather
indicating devices, intrasite communication equipment, laboratory
equipment, insect control equipment, signal systems, callophones,
emergency whistles and sirens, fire alarms, and other similar equipment.
10. Railway cars, not includible elsewhere.
11. Refrigerating system, including compressors, pumps, cooling
coils, etc.
12. Station maintenance equipment, including lathes, shapers,
planers, drill presses, hydraulic presses, grinders, etc., with motors,
shafting, hangers, pulleys, etc.
13. Ventilating equipment, including items wholly identified with
apparatus listed herein.
Note: When any item of equipment, listed herein is used wholly in
connection with equipment included in another account, its cost shall be
included in such other account.
336 Roads, railroads and bridges.
This account shall include the cost of roads, railroads, trails,
bridges, and trestles used primarily as production facilities. It
includes also those roads, etc., necessary to connect the plant with
highway transportation systems, except when such roads are dedicated to
public use and maintained by public authorities.
1. Bridges, including foundations, piers, girders, trusses, flooring,
etc.
2. Clearing land.
3. Railroads, including grading, ballast, ties, rails, culverts,
hoists, etc.
4. Roads, including grading, surfacing, culverts, etc.
5. Structures, constructed and maintained in connection with items
listed herein.
6. Trails, including grading, surfacing, culverts, etc.
7. Trestles, including foundations, piers, girders, trusses,
flooring, etc.
Note A: Roads intended primarily for connecting employees' houses
with the powerplant, and roads used primarily in connection with fish
and wildlife, and recreation activities, shall not be included herein
but in account 331, Structures and Improvements.
Note B: The cost of temporary roads, bridges, etc. necessary during
the period of construction but abandoned or dedicated to public use upon
completion of the plant, shall not be included herein but shall be
charged to the accounts appropriate for the construction.
340 Land and land rights.
This account shall include the cost of land and land rights used in
connection with other power generation. (See electric plant instruction
7.)
341 Structures and improvements.
This account shall include the cost in place of structures and
improvements used in connection with other power generation. (See
electric plant instruction 8.)
342 Fuel holders, producers, and accessories.
This account shall include the cost installed of fuel handling and
storage equipment used between the point of fuel delivery to the station
and the intake pipe through which fuel is directly drawn to the engine,
also the cost of gas producers and accessories devoted to the production
of gas for use in prime movers driving main electric generators.
1. Blower and fans.
2. Boilers and pumps.
3. Economizers.
4. Exhauster outfits.
5. Flues and piping.
6. Pipe system.
7. Producers.
8. Regenerators.
9. Scrubbers.
10. Steam injectors.
11. Tanks for storage of oil, gasoline, etc.
12. Vaporizers.
343 Prime movers.
This account shall include the cost installed of Diesel or other
prime movers devoted to the generation of electric energy, together with
their auxiliaries.
1. Air-filtering system.
2. Belting, shafting, pulleys, reduction gearing, etc.
3. Cooling system, including towers, pumps, tanks, and piping.
4. Cranes, hoists, etc., including items wholly identified with
apparatus listed herein.
5. Engines, Diesel, gasoline, gas, or other internal combustion.
6. Foundations and settings specially constructed for and not
expected to outlast the apparatus for which provided.
7. Governors.
8. Ignition system.
9. Inlet valve.
10. Lighting systems.
11. Lubricating systems, including filters, tanks, pumps, and piping.
12. Mechanical meters, including gauges, recording instruments,
sampling, and testing equipment.
13. Mufflers.
14. Piping.
15. Starting systems, compressed air, or other, including compressors
and drives, tanks, piping, motors, boards and connections, storage
tanks, etc.
16. Steelwork, specially constructed for apparatus listed herein.
17. Waste heat boilers, antifluctuators, etc.
344 Generators.
This account shall include the cost installed of Diesel or other
power driven main generators.
1. Cranes, hoists, etc., including items wholly identified with such
apparatus.
2. Fire-extinguishing equipment.
3. Foundations and settings, specially constructed for and not
expected to outlast the apparatus for which provided.
4. Generator cooling system, including air cooling and washing
apparatus, air fans and accessories, air ducts, etc.
5. Generators -- main, a.c. or d.c., including field rheostats and
connections for self-excited units and excitation system when identified
with the generating unit.
6. Lighting systems.
7. Lubricating system, including tanks, filters, strainers, pumps,
piping, coolers, etc.
8. Mechanical meters, and recording instruments.
9. Platforms, railings, steps, gratings, etc., appurtenant to
apparatus listed herein.
Note: If prime movers and generators are so integrated that it is
not practical to classify them separately, the entire unit may be
included in account 344, Generators.
345 Accessory electric equipment.
This account shall include the cost installed of auxiliary generating
apparatus, conversion equipment, and equipment used primarily in
connection with the control and switching of electric energy produced in
other power generating stations, and the protection of electric circuits
and equipment, except electric motors used to drive equipment included
in other accounts. Such motors shall be included in the account in
which the equipment with which it is associated is included.
1. Auxiliary generators, including boards, compartments, switching
equipment, control equipment, and connections to auxiliary power bus.
2. Excitation system, including motor, turbine and dual-drive exciter
sets and rheostats, storage batteries and charging equipment, circuit
breakers, panels and accessories, knife switches and accessories, surge
arresters, instrument shunts, conductors and conduit, special supports
for conduit, generator field and exciter switch panels, exciter bus tie
panels, generator and exciter rheostats, etc., special housings,
protective screens, etc.
3. Generator main connections, including oil circuit breakers and
accessories, disconnecting switches and accessories, operating
mechanisms and interlocks, current transformers, potential transformers,
protective relays, isolated panels and equipment, conductors and
conduit, special supports for generator main leads, grounding switch,
etc., special housing, protective screens, etc.
4. Station control system, including station switchboards with panel
wiring, panels with instruments and control equipment only, panels with
switching equipment mounted or mechanically connected, trunktype boards
complete, cubicles, station supervisory control boards, generator and
exciter signal stands, temperature-recording devices, frequency control
equipment, master clocks, watt-hour meter, station totalizing wattmeter,
storage batteries, panels and charging sets, instrument transformers for
supervisory metering, conductors and conduit, special supports for
conduit, switchboards, batteries, special housing for batteries,
protective screens, doors, etc.
5. Station buses, including main, auxiliary transfer, synchronizing
and fault ground buses, including oil curcuit breakers and accessories,
disconnecting switches and accessories, operating mechanisms and
interlocks, reactors and accessories, voltage regulators and
accessories, compensators, resistors, starting transformers, current
transformers, potential transformers, protective relays, storage
batteries and charging equipment, isolated panels and equipment,
conductors and conduit, special supports, special housings, concrete
pads, general station ground system, special fire-extinguishing system,
and test equipment.
Note A: Do not include in this account transformers and other
equipment used for changing the voltage or frequency of electric energy
for the purpose of transmission or distribution.
Note B: When any item of equipment listed herein is used wholly to
furnish power to equipment included in another account, its cost shall
be included in such other account.
346 Miscellaneous power plant equipment.
This account shall include the cost installed of miscellaneous
equipment in and about the other power generating plant, devoted to
general station use, and not properly includible in any of the foregoing
other power production accounts.
1. Compressed air and vacuum cleaning systems, including tanks,
compressors, exhausters, air filters, piping, etc.
2. Cranes and hoisting equipment, including cranes, cars, crane
rails, monorails, hoists, etc., with electric and mechanical
connections.
3. Fire-extinguishing equipment for general station use.
4. Foundations and settings, specially constructed for and not
expected to outlast the apparatus for which provided.
5. Miscellaneous equipment, including atmospheric and weather
indicating devices, intrasite communication equipment, laboratory
equipment, signal systems, callophones, emergency whistles and sirens,
fire alarms, and other similar equipment.
6. Miscellaneous belts, pulleys, countershafts, etc.
7. Refrigerating system including compressors, pumps, cooling coils,
etc.
8. Station maintenance equipment, including lathes, shapers, planers,
drill presses, hydraulic presses, grinders, etc., with motors, shafting,
hangers, pulleys, etc.
9. Ventilating equipment, including items wholly identified with
apparatus listed herein.
Note: When any item of equipment, listed herein is used wholly in
connection with equipment included in another account, its cost shall be
included in such other account.
350 Land and land rights.
This account shall include the cost of land and land rights used in
connection with transmission operations. (See electric plant
instruction 7.)
351 (Reserved)
352 Structures and improvements.
This account shall include the cost in place of structures and
improvements used in connection with transmission operations. (See
electric plant instruction 8.)
353 Station equipment.
This account shall include the cost installed of transforming,
conversion, and switching equipment used for the purpose of changing the
characteristics of electricity in connection with its transmission or
for controlling transmission circuits.
1. Bus compartments, concrete, brick, and sectional steel, including
items permanently attached thereto.
2. Conduit, including concrete and iron duct runs not a part of a
building.
3. Control equipment, including batteries battery charging equipment,
transformers, remote relay boards, and connections.
4. Conversion equipment, including transformers, indoor and outdoor,
frequency changers, motor generator sets, rectifiers, synchronous
converters, motors, cooling equipment, and associated connections.
5. Fences.
6. Fixed and synchronous condensers, including transformers,
switching equipment blowers, motors and connections.
7. Foundations and settings, specially constructed for and not
expected to outlast the apparatus for which provided.
8. General station equipment, including air compressors, motors,
hoists, cranes, test equipment, ventilating equipment, etc.
9. Platforms, railings, steps, gratings, etc. appurtenant to
apparatus listed herein.
10. Primary and secondary voltage connections, including bus runs and
supports, insulators, potheads, lightning arresters, cable and wire runs
from and to outdoor connections or to manholes and the associated
regulators, reactors, resistors, surge arresters, and accessory
equipment.
11. Switchboards, including meters, relays, control wiring, etc.
12. Switching equipment, indoor and outdoor, including oil circuit
breakers and operating mechanisms, truck switches, and disconnect
switches.
13. Tools and appliances.
354 Towers and fixtures.
This account shall include the cost installed of towers and
appurtenant fixtures used for supporting overhead transmission
conductors.
1. Anchors, guys, braces.
2. Brackets.
3. Crossarms, including braces.
4. Excavation, backfill, and disposal of excess excavated material.
5. Foundations.
6. Guards.
7. Insulator pins and suspension bolts.
8. Ladders and steps.
9. Railings, etc.
10. Towers.
355 Poles and fixtures.
This account shall include the cost installed of transmission line
poles, wood, steel, concrete, or other material, together with
appurtenant fixtures used for supporting overhead transmission
conductors.
1. Anchors, head arm and other guys, including guy guards, guy
clamps, strain insulators, pole plates, etc.
2. Brackets.
3. Crossarms and braces.
4. Excavation and backfill, including disposal of excess excavated
material.
5. Extension arms.
6. Gaining, roofing stenciling, and tagging.
7. Insulator pins and suspension bolts.
8. Paving.
9. Pole steps.
10. Poles, wood, steel, concrete, or other material.
11. Racks complete with insulators.
12. Reinforcing and stubbing.
13. Settings.
14. Shaving and painting.
356 Overhead conductors and devices.
This account shall include the cost installed of overhead conductors
and devices used for transmission purposes.
1. Circuit breakers.
2. Conductors, including insulated and bare wires and cables.
3. Ground wires and ground clamps.
4. Insulators, including pin, suspension, and other types.
5. Lightning arresters.
6. Switches.
7. Other line devices.
357 Underground conduit.
This account shall include the cost installed of underground conduit
and tunnels used for housing transmission cables or wires. (See
electric plant instruction 14.)
1. Conduit, concrete, brick or tile, including iron pipe, fiber pipe,
Murray duct, and standpipe on pole or tower.
2. Excavation, including shoring, bracing, bridging, backfill, and
disposal of excess excavated material.
3. Foundations and settings specially constructed for and not
expected to outlast the apparatus for which provided.
4. Lighting systems.
5. Manholes, concrete or brick, including iron or steel, frames and
covers, hatchways, gratings, ladders, cable racks and hangers, etc.,
permanently attached to manholes.
6. Municipal inspection.
7. Pavement disturbed, including cutting and replacing pavement,
pavement base and sidewalks.
8. Permits.
9. Protection of street openings.
10. Removal and relocation of subsurface obstructions.
11. Sewer connections, including drains, traps, tide valves, check
valves, etc.
12. Sumps, including pumps.
13. Ventilating equipment.
358 Underground conductors and devices.
This account shall include the cost installed of underground
conductors and devices used for transmission purposes.
1. Armored conductors, buried, including insulators, insulating
materials, splices, potheads, trenching, etc.
2. Armored conductors, submarine, including insulators, insulating
materials, splices in terminal chambers, potheads, etc.
3. Cables in standpipe, including pothead and connection from
terminal chamber of manhole to insulators on pole.
4. Circuit breakers.
5. Fireproofing, in connection with any items listed herein.
6. Hollow-core oil-filled cable, including straight or stop joints
pressure tanks, auxiliary air tanks, feeding tanks, terminals, potheads
and connections, ventilating equipment, etc.
7. Lead and fabric covered conductors, including insulators, compound
filled, oil filled, or vacuum splices, potheads, etc.
8. Lightning arresters.
9. Municipal inspection.
10. Permits.
11. Protection of street openings.
12. Racking of cables.
13. Switches.
14. Other line devices.
359 Roads and trails.
This account shall include the cost of roads, trails, and bridges
used primarily as transmission facilities.
1. Bridges, including foundation piers, girders, trusses, flooring,
etc.
2. Clearing land.
3. Roads, including grading, surfacing, culverts, etc.
4. Structures, constructed and maintained in connection with items
included herein.
5. Trails, including grading, surfacing, culverts, etc.
Note: The cost of temporary roads, bridges, etc., necessary during
the period of construction but abandoned or dedicated to public use upon
completion of the plant, shall be charged to the accounts appropriate
for the construction.
360 Land and land rights.
This account shall include the cost of land and land rights used in
connection with distribution operations. (See electric plant
instruction 7.)
Note: Do not include in this account the cost of permits to erect
poles, towers, etc., or to trim trees. (See account 364, Poles, Towers
and Fixtures, and account 365, Overhead Conductors and Devices.)
361 Structures and improvements.
This account shall include the cost in place of structures and
improvements used in connection with distribution operations. (See
electric plant instruction 8.)
362 Station equipment.
This account shall include the cost installed of station equipment,
including transformer banks, etc., which are used for the purpose of
changing the characteristics of electricity in connection with its
distribution.
1. Bus compartments, concrete, brick and sectional steel, including
items permanently attached thereto.
2. Conduit, including concrete and iron duct runs not part of
building.
3. Control equipment, including batteries, battery charging
equipment, transformers, remote relay boards, and connections.
4. Conversion equipment, indoor and outdoor, frequency changers,
motor generator sets, rectifiers, synchronous converters, motors,
cooling equipment, and associated connections.
5. Fences.
6. Fixed and synchronous condensers, including transformers,
switching equipment, blowers, motors, and connections.
7. Foundations and settings, specially constructed for and not
expected to outlast the apparatus for which provided.
8. General station equipment, including air compressors, motors,
hoists, cranes, test equipment, ventilating equipment, etc.
9. Platforms, railings, steps, gratings, etc., appurtenant to
apparatus listed herein.
10. Primary and secondary voltage connections, including bus runs and
supports, insulators, potheads, lightning arresters, cable and wire runs
from and to outdoor connections or to manholes and the associated
regulators, reactors, resistors, surge arresters, and accessory
equipment.
11. Switchboards, including meters, relays, control wiring, etc.
12. Switching equipment, indoor and outdoor, including oil circuit
breakers and operating mechanisms, truck switches, disconnect switches.
Note: The cost of rectifiers, series transformers, and other special
station equipment devoted exclusively to street lighting service shall
not be included in this account, but in account 373, Street Lighting and
Signal Systems.
363 Storage battery equipment.
This account shall include the cost installed of storage battery
equipment used for the purpose of supplying electricity to meet
emergency or peak demands.
1. Batteries, including elements, tanks, tank insulators, etc.
2. Battery room connections, including cable or bus runs and
connections.
3. Battery room flooring, when specially laid for supporting
batteries.
4. Charging equipment, including motor generator sets and other
charging equipment and connections, and cable runs from generator or
station bus to battery room connections.
5. Miscellaneous equipment, including instruments, water stills, etc.
6. Switching equipment, including endcell switches and connections,
boards and panels, used exclusively for battery control, not part of
general station switchboard.
7. Ventilating equipment, including fans and motors, louvers, and
ducts not part of building.
Note: Storage batteries used for control and general station
purposes shall not be included in this account but in the account
appropriate for their use.
364 Poles, towers and fixtures.
This account shall include the cost installed of poles, towers, and
appurtenant fixtures used for supporting overhead distribution
conductors and service wires.
1. Anchors, head arm, and other guys, including guy guards, guy
clamps, strain insulators, pole plates, etc.
2. Brackets.
3. Crossarms and braces.
4. Excavation and backfill, including disposal of excess excavated
material.
5. Extension arms.
6. Foundations.
7. Guards.
8. Insulator pins and suspension bolts.
9. Paving.
10. Permits for construction.
11. Pole steps and ladders.
12. Poles, wood, steel, concrete, or other material.
13. Racks complete with insulators.
14. Railings.
15. Reinforcing and stubbing.
16. Settings.
17. Shaving, painting, gaining, roofing, stenciling, and tagging.
18. Towers.
19. Transformer racks and platforms.
365 Overhead conductors and devices.
This account shall include the cost installed of overhead conductors
and devices used for distribution purposes.
1. Circuit breakers.
2. Conductors, including insulated and bare wires and cables.
3. Ground wires, clamps, etc.
4. Insulators, including pin, suspension, and other types, and tie
wire or clamps.
5. Lightning arresters.
6. Railroad and highway crossing guards.
7. Splices.
8. Switches.
9. Tree trimming, initial cost including the cost of permits
therefor.
10. Other line devices.
Note: The cost of conductors used solely for street lighting or
signal systems shall not be included in this account but in account 373,
Street Lighting and Signal Systems.
366 Underground conduit.
This account shall include the cost installed of underground conduit
and tunnels used for housing distribution cables or wires.
1. Conduit, concrete, brick and tile, including iron pipe, fiber
pipe, Murray duct, and standpipe on pole or tower.
2. Excavation, including shoring, bracing, bridging, backfill, and
disposal of excess excavated material.
3. Foundations and settings specially constructed for and not
expected to outlast the apparatus for which constructed.
4. Lighting systems.
5. Manholes, concrete or brick, including iron or steel frames and
covers, hatchways, gratings, ladders, cable racks and hangers, etc.,
permanently attached to manholes.
6. Municipal inspection.
7. Pavement disturbed, including cutting and replacing pavement,
pavement base, and sidewalks.
8. Permits.
9. Protection of street openings.
10. Removal and relocation of subsurface obstructions.
11. Sewer connections, including drains, traps, tide valves, check
valves, etc.
12. Sumps, including pumps.
13. Ventilating equipment.
Note: The cost of underground conduit used solely for street
lighting or signal systems shall be included in account 373, Street
Lighting and Signal Systems.
367 Underground conductors and devices.
This account shall include the cost installed of underground
conductors and devices used for distribution purposes.
1. Armored conductors, buried, including insulators, insulating
materials, splices, potheads, trenching, etc.
2. Armored conductors, submarine, including insulators, insulating
materials, splices in terminal chamber, potheads, etc.
3. Cables in standpipe, including pothead and connection from
terminal chamber or manhole to insulators on pole.
4. Circuit breakers.
5. Fireproofing, in connection with any items listed herein.
6. Hollow-core oil-filled cable, including straight or stop joints,
pressure tanks, auxiliary air tanks, feeding tanks, terminals, potheads
and connections, etc.
7. Lead and fabric covered conductors, including insulators,
compound-filled, oil-filled or vacuum splices, potheads, etc.
8. Lightning arresters.
9. Municipal inspection.
10. Permits.
11. Protection of street openings.
12. Racking of cables.
13. Switches.
14. Other line devices.
Note: The cost of underground conductors and devices used solely for
street lighting or signal systems shall be included in account 373,
Street Lighting and Signal Systems.
368 Line transformers.
A. This account shall include the cost installed of overhead and
underground distribution line transformers and poletype and underground
voltage regulators owned by the utility, for use in transforming
electricity to the voltage at which it is to be used by the customer,
whether actually in service or held in reserve.
B. When a transformer is permanently retired from service, the
original installed cost thereof shall be credited to this account.
C. The records covering line transformers shall be so kept that the
utility can furnish the number of transformers of various capacities in
service and those in reserve, and the location and the use of each
transformer.
1. Installation, labor of (first installation only).
2. Transformer cut-out boxes.
3. Transformer lightning arresters.
4. Transformers, line and network.
5. Capacitors.
6. Network protectors.
Note: The cost of removing and resetting line transformers shall not
be charged to this account but to account 583, Overhead Line Expenses,
or account 584, Underground Line Expenses (for Nonmajor utilities,
account 561, Line and Station Labor, or account 562, Line and Station
Supplies and Expenses), as appropriate. The cost of line transformers
used solely for street lighting or signal systems shall be included in
account 373, Street Lighting and Signal Systems.
369 Services.
This account shall include the cost installed of overhead and
underground conductors leading from a point where wires leave the last
pole of the overhead system or the distribution box or manhole, or the
top of the pole of the distribution line, to the point of connection
with the customer's outlet or wiring. Conduit used for underground
service conductors shall be included herein.
1. Brackets.
2. Cables and wires.
3. Conduit.
4. Insulators.
5. Municipal inspection.
6. Overhead to underground, including conduit or standpipe and
conductor from last splice on pole to connection with customer's wiring.
7. Pavement disturbed, including cutting and replacing pavement,
pavement base, and sidewalks.
8. Permits.
9. Protection of street openings.
10. Service switch.
11. Suspension wire.
370 Meters.
A. This account shall include the cost installed of meters or devices
and appurtenances thereto, for use in measuring the electricity
delivered to its users, whether actually in service or held in reserve.
B. When a meter is permanently retired from service, the installed
cost included herein shall be credited to this account.
C. The records covering meters shall be so kept that the utility can
furnish information as to the number of meters of various capacities in
service and in reserve as well as the location of each meter owned.
1. Alternating current, watt-hour meters.
2. Current limiting devices.
3. Demand indicators.
4. Demand meters.
5. Direct current watt-hour meters.
6. Graphic demand meters.
7. Installation, labor of (first installation only).
8. Instrument transformers.
9. Maximum demand meters.
10. Meter badges and their attachments.
11. Meter boards and boxes.
12. Meter fittings, connections, and shelves (first set).
13. Meter switches and cut-outs.
14. Prepayment meters.
15. Protective devices.
16. Testing new meters.
Note A: This account shall not include meters for recording output
of a generating station, substation meters, etc. It includes only those
meters used to record energy delivered to customers.
Note B: The cost of removing and resetting meters shall be charged
to account 586, Meter Expenses (for Nonmajor utilities, account 556,
Meter Expenses).
371 Installations on customers' premises.
This account shall include the cost installed of equipment on the
customer's side of a meter when the utility incurs such cost and when
the utility retains title to and assumes full responsibility for
maintenance and replacement of such property. This account shall not
include leased equipment, for which see account 372, Leased Property on
Customers' Premises.
1. Cable vaults.
2. Commercial lamp equipment.
3. Foundations and settings specially provided for equipment included
herein.
4. Frequency changer sets.
5. Motor generator sets.
6. Motors.
7. Switchboard panels, high or low tension.
8. Wire and cable connections to incoming cables.
Note: Do not include in this account any costs incurred in
connection with merchandising, jobbing, or contract work activities.
372 Leased property on customers' premises.
This account shall include the cost of electric motors, transformers,
and other equipment on customers' premises (including municipal
corporations), leased or loaned to customers, but not including property
held for sale.
Note A: The cost of setting and connecting such appliances or
equipment on the premises of customers and the cost of resetting or
removal shall not be charged to this account but to operating expenses,
account 587, Customer Installations Expenses (for Nonmajor utilities,
account 567, Customer Installations Expenses).
Note B: Do not include in this account any costs incurred in
connection with merchandising, jobbing, or contract work activities.
373 Street lighting and signal systems.
This account shall include the cost installed of equipment used
wholly for public street and highway lighting or traffic, fire alarm,
police, and other signal systems.
1. Armored conductors, buried or submarine, including insulators,
insulating materials, splices, trenching, etc.
2. Automatic control equipment.
3. Conductors, overhead or underground, including lead or fabric
covered, parkway cables, etc., including splices, insulators, etc.
4. Lamps, are, incandescent, or other types, including glassware,
suspension fixtures, brackets, etc.
5. Municipal inspection.
6. Ornamental lamp posts.
7. Pavement disturbed, including cutting and replacing pavement,
pavement base, and sidewalks.
8. Permits.
9. Posts and standards.
10. Protection of street openings.
11. Relays or time clocks.
12. Series contactors.
13. Switches.
14. Transformers, pole or underground.
389 Land and land rights.
This account shall include the cost of land and land rights used for
utility purposes, the cost of which is not properly includible in other
land and land rights accounts. (See electric plant instruction 7.)
390 Structures and improvements.
This account shall include the cost in place of structures and
improvements used for utility purposes, the cost of which is not
properly includible in other structures and improvements accounts (See
electric plant instruction 8.)
391 Office furniture and equipment.
This account shall include the cost of office furniture and equipment
owned by the utility and devoted to utility service, and not permanently
attached to buildings, except the cost of such furniture and equipment
which the utility elects to assign to other plant accounts on a
functional basis.
1. Bookcases and shelves.
2. Desks, chairs, and desk equipment.
3. Drafting-room equipment.
4. Filing, storage, and other cabinets.
5. Floor covering.
6. Library and library equipment.
7. Mechanical office equipment, such as accounting machines,
typewriters, etc.
8. Safes.
9. Tables.
392 Transportation equipment.
This account shall include the cost of transportation vehicles used
for utility purposes.
1. Airplanes.
2. Automobiles.
3. Bicycles.
4. Electrical vehicles.
5. Motor trucks.
6. Motorcycles.
7. Repair cars or trucks.
8. Tractors and trailers.
9. Other transportation vehicles.
393 Stores equipment.
This account shall include the cost of equipment used for the
receiving, shipping, handling, and storage of materials and supplies.
1. Chain falls.
2. Counters.
3. Cranes (portable).
4. Elevating and stacking equipment (portable).
5. Hoists.
6. Lockers.
7. Scales.
8. Shelving.
9. Storage bins.
10. Trucks, hand and power driven.
11. Wheelbarrows.
394 Tools, shop and garage equipment.
This account shall include the cost of tools, implements, and
equipment used in construction, repair work, general shops and garages
and not specifically provided for or includible in other accounts.
1. Air compressors.
2. Anvils.
3. Automobile repair shop equipment.
4. Battery charging equipment.
5. Belts, shafts and countershafts.
6. Boilers.
7. Cable pulling equipment.
8. Concrete mixers.
9. Drill presses.
10. Derricks.
11. Electric equipment.
12. Engines.
13. Forges.
14. Furnaces.
15. Foundations and settings specially constructed for and not
expected to outlast the equipment for which provided.
16. Gas producers.
17. Gasoline pumps, oil pumps and storage tanks.
18. Greasing tools and equipment.
19. Hoists.
20. Ladders.
21. Lathes.
22. Machine tools.
23. Motor-driven tools.
24. Motors.
25. Pipe threading and cutting tools
26. Pneumatic tools.
27. Pumps.
28. Riveters.
29. Smithing equipment.
30. Tool racks.
31. Vises.
32. Welding apparatus.
33. Work benches.
395 Laboratory equipment.
This account shall include the cost installed of laboratory equipment
used for general laboratory purposes and not specifically provided for
or includible in other departmental or functional plant accounts.
1. Ammeters.
2. Current batteries.
3. Frequency changers.
4. Galvanometers.
5. Inductometers.
6. Laboratory standard millivolt meters.
7. Laboratory standard volt meters.
8. Meter-testing equipment.
9. Millivolt meters.
10. Motor generator sets.
11. Panels.
12. Phantom loads.
13. Portable graphic ammeters, voltmeters, and wattmeters.
14. Portable loading devices.
15. Potential batteries.
16. Potentiometers.
17. Rotating standards.
18. Standard cell, reactance, resistor, and shunt.
19. Switchboards.
20. Synchronous timers.
21. Testing panels.
22. Testing resistors.
23. Transformers.
24. Voltmeters.
25. Other testing, laboratory, or research equipment not provided for
elsewhere.
396 Power operated equipment.
This account shall include the cost of power operated equipment used
in construction or repair work exclusive of equipment includible in
other accounts. Include, also, the tools and accessories acquired for
use with such equipment and the vehicle on which such equipment is
mounted.
1. Air compressors, including driving unit and vehicle.
2. Back filling machines.
3. Boring machines.
4. Bulldozers.
5. Cranes and hoists.
6. Diggers.
7. Engines.
8. Pile drivers.
9. Pipe cleaning machines.
10. Pipe coating or wrapping machines.
11. Tractors -- Crawler type.
12. Trenchers.
13. Other power operated equipment.
Note: It is intended that this account include only such large units
as are generally self-propelled or mounted on movable equipment.
397 Communication equipment.
This account shall include the cost installed of telephone,
telegraph, and wireless equipment for general use in connection with
utility operations.
1. Antennae.
2. Booths.
3. Cables.
4. Distributing boards.
5. Extension cords.
6. Gongs
7. Hand sets, manual and dial.
8. Insulators.
9. Intercommunicating sets.
10. Loading coils.
11. Operators' desks.
12. Poles and fixtures used wholly for telephone or telegraph wire.
13. Radio transmitting and receiving sets.
14. Remote control equipment and lines.
15. Sending keys.
16. Storage batteries
17. Switchboards.
18. Telautograph circuit connections.
19. Telegraph receiving sets.
20. Telephone and telegraph circuits.
21. Testing instruments.
22. Towers.
23. Underground conduit used wholly for telephone or telegraph wires
and cable wires.
398 Miscellaneous equipment.
This account shall include the cost of equipment, apparatus, etc.,
used in the utility operations, which is not includible in any other
account of this system of accounts.
1. Hospital and infirmary equipment.
2. Kitchen equipment.
3. Employees' recreation equipment.
4. Radios.
5. Restaurant equipment.
6. Soda fountains.
7. Operators' cottage furnishings.
8. Other miscellaneous equipment.
Note: Miscellaneous equipment of the nature indicated above wherever
practicable shall be included in the utility plant accounts on a
functional basis.
399 Other tangible property.
This account shall include the cost of tangible utility plant not
provided for elsewhere.
Income Chart of Accounts
400 Operating revenues.
401 Operation expense.
402 Maintenance expense.
403 Depreciation expense.
404 Amortization of limited-term electric plant.
405 Amortization of other electric plant.
406 Amortization of electric plant acquisition adjustments.
407 Amortization of property losses, unrecovered plant and regulatory
study costs.
408 (Reserved)
408.1 Taxes other than income taxes, utility operating income.
409 (Reserved)
409.1 Income taxes, utility operating income.
410 (Reserved)
410.1 Provisions for deferred income taxes, utility operating income.
411 (Reserved)
411.1 Provision for deferred income taxes -- Credit, utility
operating income.
411.3 (Reserved)
411.4 Investment tax credit adjustments, utility operations.
411.6 Gains from disposition of utility plant.
411.7 Losses from disposition of utility plant.
412 Revenues from electric plant leased to others.
413 Expenses of electric plant leased to others.
414 Other utility operating income.
415 Revenues from merchandising, jobbing, and contract work.
416 Costs and expenses of merchandising, jobbing, and contract work.
417 Revenues from nonutility operations.
417.1 Expenses of nonutility operations.
418 Nonoperating rental income.
418.1 Equity in earnings of subsidiary companies (Major only).
419 Interest and dividend income.
419.1 Allowance for other funds used during construction.
421 Miscellaneous nonoperating income.
421.1 Gain on disposition of property.
421.2 Loss on disposition of property.
425 Miscellaneous amortization.
426 (Reserved)
426.1 Donations.
426.2 Life insurance.
426.3 Penalties.
426.4 Expenditures for certain civic, political and related
activities.
426.5 Other deductions.
Total other income deductions. Total Other Income and Deductions.
408.2 Taxes other than income taxes, other income and deductions.
409.2 Income tax, other income and deductions.
409.3 Income taxes, extraordinary items.
410.2 Provision for deferred income taxes, other income and
deductions.
411.2 Provision for deferred income taxes -- Credit, other income and
deductions.
411.5 Investment tax credit adjustments, nonutility operations.
420 Investment tax credits.
Total taxes on other income and deductions. Net other income and
deductions.
427 Interest on long-term debt.
428 Amortization of debt discount and expense.
428.1 Amortization of loss on reacquired debt.
429 Amortization of premium on debt-Cr.
429.1 Amortization of gain on reacquired debt -- Credit.
430 Interest on debt to associated companies.
431 Other interest expense.
432 Allowance for borrowed funds used during construction -- Credit.
434 Extraordinary income.
435 Extraordinary deductions.
18 CFR 46.6 Income Accounts
400 Operating revenues.
There shall be shown under this caption the total amount included in
the electric operating revenue accounts provided herein.
401 Operation expense.
There shall be shown under this caption the total amount included in
the electric operation expense accounts provided herein. (See note to
operating expense instruction 3.)
402 Maintenance expense.
There shall be shown under this caption the total amount included in
the electric maintenance expense accounts provided herein.
403 Depreciation expense.
A. This account shall include the amount of depreciation expense for
all classes of depreciable electric plant in service except such
depreciation expense as is chargeable to clearing accounts or to account
416, Costs and Expenses of Merchandising, Jobbing and Contract Work.
B. The utility shall keep such records of property and property
retirements as will reflect the service life of property which has been
retired and aid in estimating probable service life by mortality,
turnover, or other appropriate methods; and also such records as will
reflect the percentage of salvage and costs of removal for property
retired from each account, or subdivision thereof, for depreciable
electric plant.
Note A: Depreciation expense applicable to property included in
account 104, Electric Plant Leased to Others, shall be charged to
account 413, Expenses of Electric Plant Leased to Others.
Note B: Depreciation expenses applicable to transportation
equipment, shop equipment, tools, work equipment, power operated
equipment and other general equipment may be charged to clearing
accounts as necessary in order to obtain a proper distribution of
expenses between construction and operation.
Note C: Depreciation expense applicable to transportation equipment
used for transportation of fuel from the point of acquisition to the
unloading point shall be charged to Account 151, Fuel Stock.
404 Amortization of limited-term electric plant.
This account shall include amortization charges applicable to amounts
included in the electric plant accounts for limited-term franchises,
licenses, patent rights, limited-term interests in land, and
expenditures on leased property where the service life of the
improvements is terminable by action of the lease. The charges to this
account shall be such as to distribute the book cost of each investment
as evenly as may be over the period of its benefit to the utility.
(See account 111, Accumulated Provision for Amortization of Electric
Utility Plant.)
405 Amortization of other electric plant.
A. When authorized by the Commission, this account shall include
charges for amortization of intangible or other electric utility plant
which does not have a definite or terminable life and which is not
subject to charges for depreciation expense.
B. This account shall be supported in such detail as to show the
amortization applicable to each investment being amortized, together
with the book cost of the investment and the period over which it is
being written off.
406 Amortization of electric plant acquisition adjustments.
This account shall be debited or credited, as the case may be, with
amounts includible in operating expenses, pursuant to approval or order
of the Commission, for the purpose of providing for the extinguishment
of the amount in account 114, Electric Plant Acquisition Adjustments.
407 Amortization of property losses, unrecovered plant and regulatory
study costs.
This account shall be charged with amounts credited to account 182.1,
Extraordinary Property Losses, and account 182.2, Unrecovered Plant and
Regulatory Study Costs, when the Commission has authorized the amount in
the latter account to be amortized by charges to electric operations.
408 (Reserved)
A. These accounts shall include the amounts of ad valorem, gross
revenue or gross receipts taxes, state unemployment insurance, franchise
taxes, Federal excise taxes, social security taxes, and all other taxes
assessed by Federal, state, county, municipal, or other local
governmental authorities, except income taxes.
B. These accounts shall be charged in each accounting period with the
amounts of taxes which are applicable thereto, with concurrent credits
to account 236, Taxes Accrued, or account 165, Prepayments, as
appropriate. When it is not possible to determine the exact amounts of
taxes, the amounts shall be estimated and adjustments made in current
accruals as the actual tax levies become known.
C. The charges to these accounts shall be made or supported so as to
show the amount of each tax and the basis upon which each charge is
made. In the case of a utility rendering more than one utility service,
taxes of the kind includible in these accounts shall be assigned
directly to the utility department the operation of which gave rise to
the tax in so far as practicable. Where the tax is not attributable to
a specific utility department, it shall be distributed among the utility
departments or nonutility operations on an equitable basis after
appropriate study to determine such basis.
Note 1: Special assessments for street and similar improvements
shall be included in the appropriate utility plant or nonutility
property account.
Note 2: Taxes specifically applicable to construction shall be
included in the cost of construction.
Note 3: Gasoline and other sales taxes shall be charged as far as
practicable to the same account as the materials on which the tax is
levied.
Note 4: Social security and other forms of so-called payroll taxes
shall be distributed to utility departments and to nonutility functions
on a basis related to payroll. Amounts applicable to construction shall
be charged to the appropriate plant account.
Note 5: Interest on tax refunds or deficiencies shall not be
included in these accounts but in account 419, Interest and Dividend
Income, or 431, Other Interest Expense, as appropriate.
408.1 Taxes other than income taxes, utility operating income.
This account shall include those taxes other than income taxes which
relate to utility operating income. This account shall be maintained so
as to allow ready identification of the various classes of taxes
relating to Utility Operating Income (by department), Utility Plant
Leased to Others and Other Utility Operating Income.
408.2 Taxes other than income taxes, other income and deductions.
This account shall include those taxes other than income taxes which
relate to Other Income and Deductions.
409 (Reserved)
A. These accounts shall include the amounts of local, state and
Federal income taxes on income properly accruable during the period
covered by the income statement to meet the actual liability for such
taxes. Concurrent credits for the tax accruals shall be made to account
236, Taxes Accrued, and as the exact amounts of taxes become known, the
current tax accruals shall be adjusted by charges or credits to these
accounts, so that these accounts as nearly as can be ascertained shall
include the actual taxes payable by the utility.
B. The accruals for income taxes shall be apportioned among utility
departments and to Other Income and Deductions so that, as nearly as
practicable, each tax shall be included in the expenses of the utility
department or Other Income and Deductions, the income from which gave
rise to the tax. The tax effects relating to Interest Charges shall be
allocated between utility and nonutility operations. The basis for this
allocation shall be the ratio of net investment in utility plant to net
investment in nonutility plant.
Note 1: Taxes assumed by the utility on interest shall be charged to
account 431, Other Interest Expense.
Note 2: Interest on tax refunds or deficiencies shall not be
included in these accounts but in account 419, Interest and Dividend
Income, or account 431, Other Interest Expense, as appropriate.
409.1 Income taxes, utility operating income.
This account shall include the amount of those local, state and
Federal income taxes which relate to utility operating income. This
account shall be maintained so as to allow ready identification of tax
effects (both positive and negative) relating to Utility Operating
Income (by department), Utility Plant Leased to Others and Other Utility
Operating Income.
409.2 Income taxes, other income and deductions.
This account shall include the amount of those local, state and
Federal income taxes (both positive and negative), which relate to Other
Income and Deductions.
409.3 Income taxes, extraordinary items.
This account shall include the amount of those local, state and
Federal income taxes (both positive and negative), which relate to
Extraordinary Items.
410 (Reserved)
A. Accounts 410.1 and 410.2 shall be debited, and Accumulated
Deferred Income Taxes shall be credited, with amounts equal to any
current deferrals of taxes on income or any allocations of deferred
taxes originating in prior periods, as provided by the texts of accounts
190, 281, 282, and 283. There shall not be netted against entries
required to be made to these accounts any credit amounts appropriately
includible in account 411.1 or 411.2.
B. Accounts 411.1 and 411.2 shall be credited, and Accumulated
Deferred Income Taxes shall be debited, with amounts equal to any
allocations of deferred taxes originating in prior periods or any
current deferrals of taxes on income, as provided by the texts of
accounts 190, 281, 282, and 283. There shall not be netted against
entries required to be made to these accounts any debit amounts
appropriately includible in account 410.1 or 410.2.
410.1 Provision for deferred income taxes, utility operating income.
This account shall include the amounts of those deferrals of taxes
and allocations of deferred taxes which relate to Utility Operating
Income (by department).
410.2 Provision for deferred income taxes, other income and
deductions.
This account shall include the amounts of those deferrals of taxes
and allocations of deferred taxes which relate to Other Income and
Deductions.
411 (Reserved)
411.1 Provision for deferred income taxes -- Credit, utility
operating income.
This account shall include the amounts of those allocations of
deferred taxes and deferrals of taxes, credit, which relate to Utility
Operating Income (by department).
411.2 Provision for deferred income taxes -- Credit, other income and
deductions.
This account shall include the amounts of those allocations of
deferred taxes and deferrals of taxes, credit, which relate to Other
Income and Deductions.
411.3 (Reserved)
A. Account 411.4 shall be debited with the amounts of investment tax
credits related to electric utility property that are credited to
account 255, Accumulated Deferred Investment Tax Credits, by companies
which do not apply the entire amount of the benefits of the investment
credit as a reduction of the overall income tax expense in the year in
which such credit is realized (see account 255).
B. Account 411.4 shall be credited with the amounts debited to
account 255 for proportionate amounts of tax credit deferrals allocated
over the average useful life of electric utility property to which the
tax credits relate or such lesser period of time as may be adopted and
consistently followed by the company.
C. Account 411.5 shall also be debited and credited as directed in
paragraphs A and B, for investment tax credits related to nonutility
property.
411.4 Investment tax credit adjustments, utility operations.
This account shall include the amount of those investment tax credit
adjustments related to property used in Utility Operations (by
department).
411.5 Investment tax credit adjustments, nonutility operations.
This account shall include the amount of those investment tax credit
adjustments related to property used in Nonutility Operations.
411.6 Gains from disposition of utility plant.
This account shall include, as approved by the Commission, amounts
relating to gains from the disposition of future use utility plant
including amounts which were previously recorded in and transferred from
account 105, Electric Plant Held for Future Use, under the provisions of
paragraphs B, C, and D thereof. Income taxes relating to gains recorded
in this account shall be recorded in account 409.1, Income Taxes,
Utility Operating Income.
411.7 Losses from disposition of utility plant.
This account shall include, as approved by the Commission, amounts
relating to losses from the disposition of future use utility plant
including amounts which were previously recorded in and transferred from
account 105, Electric Plant Held for Future Use, under the provisions of
paragraphs B, C, and D thereof. Income taxes relating to losses,
recorded in this account shall be recorded in account 409.1, Income
Taxes, Utility Operating Income.
412 Revenues from electric plant leased to others.
413 Expenses of electric plant leased to others.
A. These accounts shall include respectively, revenues from electric
property constituting a distinct operating unit or system leased by the
utility to others, and which property is properly includible in account
104, Electric Plant Leased to Others, and the expenses attributable to
such property.
B. The detail of expenses shall be kept or supported so as to show
separately the following:
Operation.
Maintenance.
Depreciation.
Amortization.
Note: Related taxes shall be recorded in account 408.1, Taxes Other
Than Income Taxes, Utility Operating Income, or account 409.1, Income
Taxes, Utility Operating Income, as appropriate.
414 Other utility operating income.
A. This account shall include the revenues received and expenses
incurred in connection with the operations of utility plant, the book
cost of which is included in account 118, Other Utility Plant.
B. The expenses shall include every element of cost incurred in such
operations, including depreciation, rents, and insurance.
Note: Related taxes shall be recorded in account 408.1, Taxes Other
Than Income Taxes, Utility Operating Income, or account 409.1, Income
Taxes, Utility Operating Income, as appropriate.
415 Revenues from merchandising, jobbing and contract work.
416 Costs and expenses of merchandising, jobbing and contract work.
A. These accounts shall include respectively, all revenues derived
from the sale of merchandise and jobbing or contract work, including any
profit or commission accruing to the utility on jobbing work performed
by it as agent under contracts whereby it does jobbing work for another
for a stipulated profit or commission, and all expenses incurred in such
activities. Interest related income from installment sales shall be
recorded in Account 419, Interest and Dividend income.
B. Records in support of these accounts shall be so kept as to permit
ready summarization of revenues, costs and expenses by such major items
as are feasible.
Note 1: The classification of revenues, costs, and expenses of
merchandising, jobbing, and contract work as nonoperating, and thus
inclusion in this account, is for accounting purposes. It does not
preclude consideration of justification to the contrary for ratemaking
or other purposes.
Note 2: Related taxes shall be recorded in account 408.2, Taxes
Other Than Income Taxes, Other Income and Deductions, or account 409.2,
Income Taxes, Other Income and Deductions, as appropriate.
Account 415:
1. Revenues from sale of merchandise and from jobbing and contract
work.
2. Discounts and allowances made in settlement of bills for
merchandise and jobbing work.
Account 416:
Labor --
1. Canvassing and demonstrating appliances in homes and other places
for the purpose of selling appliances.
2. Demonstrating and selling activities in sales rooms.
3. Installing appliances on customer premises where such work is done
only for purchasers of appliances from the utility.
4. Installing wiring, piping, or other property work, on a jobbing or
contract basis.
5. Preparing advertising materials for appliance sales purposes.
6. Receiving and handling customer orders for merchandise or for
jobbing services.
7. Cleaning and tidying sales rooms.
8. Maintaining display counters and other equipment used in
merchandising.
9. Arranging merchandise in sales rooms and decorating display
windows.
10. Reconditioning repossessed appliances.
11. Bookkeeping and other clerical work in connection with
merchandise and jobbing activities.
12. Supervising merchandise and jobbing operations.
Materials and expenses --
13. Advertising in newspapers, periodicals, radio, television, etc.
14. Cost of merchandise sold and of materials used in jobbing work.
15. Stores expenses on merchandise and jobbing stocks.
16. Fees and expenses of advertising and commercial artists'
agencies.
17. Printing booklets, dodgers, and other advertising data.
18. Premiums given as inducement to buy appliances.
19. Light, heat and power.
20. Depreciation on equipment used primarily for merchandise and
jobbing operations.
21. Rent of sales rooms or of equipment.
22. Transportation expense in delivery and pick-up of appliances by
utility's facilities or by others.
23. Stationery and office supplies and expenses.
24. Losses from uncollectible merchandise and jobbing accounts.
417 Revenues from nonutility operations.
417.1 Expenses of nonutility operations.
A. These accounts shall include revenues and expenses applicable to
operations which are nonutility in character but nevertheless constitute
a distinct operating activity of the enterprise as a whole, such as the
operation of an ice department where applicable statutes do not define
such operation as a utility, or the operation of a servicing
organization for furnishing supervision, management, engineering, and
similar services to others.
B. The expenses shall include all elements of costs incurred in such
operations, and the accounts shall be maintained so as to permit ready
summarization as follows:
Operation.
Maintenance.
Rents.
Depreciation.
Amortization.
Note: Related taxes shall be recorded in account 408.2, Taxes Other
Than Income Taxes, Other Income and Deductions, or account 409.2, Income
Taxes, Other Income and Deductions, as appropriate.
418 Nonoperating rental income.
A. This account shall include all rent revenues and related expenses
of land, buildings, or other property included in account 121,
Nonutility Property, which is not used in operations covered by account
417 or 417.1.
B. The expenses shall include all elements of costs incurred in the
ownership and rental of property and the accounts shall be maintained so
as to permit ready summarization as follows:
Operation.
Maintenance.
Rents.
Depreciation.
Amortization.
Note: Related taxes shall be recorded in account 408.2. Taxes Other
Than Income Taxes, Other Income and Deductions, or account 409.2, Income
Taxes, Other Income and Deductions, as appropriate.
418.1 Equity in earnings of subsidiary companies (Major only).
This account shall include the utility's equity in the earnings or
losses of subsidiary companies for the year.
419 Interest and dividend income.
A. This account shall include interest revenues on securities, loans,
notes, advances, special deposits, tax refunds and all other
interest-bearing assets, and dividends on stocks of other companies,
whether the securities on which the interest and dividends are received
are carried as investments or included in sinking or other special fund
accounts.
B. This account may include the pro rata amount necessary to
extinguish (during the interval between the date of acquisition and the
date of maturity) the difference between the cost to the utility and the
face value of interest-bearing securities. Amounts thus credited or
charged shall be concurrently included in the accounts in which the
securities are carried.
C. Where significant in amount, expenses, excluding operating taxes
and income taxes, applicable to security investments and to interest and
dividend revenues thereon shall be charged hereto.
Note 1: Related taxes shall be recorded in account 408.2, Taxes
Other Than Income Taxes, Other Income and Deductions, or account 409.2,
Income Taxes, Other Income and Deductions, as appropriate.
Note 2: Interest accrued, the payment of which is not reasonably
assured, dividends receivable which have not been declared or
guaranteed, and interest or dividends upon reacquired securities issued
or assumed by the utility shall not be credited to this account.
419.1 Allowance for other funds used during construction.
This account shall include concurrent credits for allowance for other
funds used during construction, not to exceed amounts computed in
accordance with the formula prescribed in Electric Plant Instruction
3(17).
420 Investment tax credits.
This account shall be credited as follows with investment tax credit
amounts not passed on to customers:
A. By amounts equal to debits to accounts 411.4, Investment Tax
Credit Adjustments, Utility Operations, and 411.5, Investment Tax Credit
Adjustments, Nonutility Operations, for investment tax credits used in
calculating income taxes for the year when the company's accounting
provides for nondeferral of all or a portion of such credits; and,
B. By amounts equal to debits to account 255, Accumulated deferred
investment tax credits, for proportionate amounts of tax credit
deferrals allocated over the average useful life of the property to
which the tax credits relate, or such lesser period of time as may be
adopted and consistently used by the company.
421 Miscellaneous nonoperating income.
This account shall include all revenue and expense items except taxes
properly includible in the income account and not provided for
elsewhere. Related taxes shall be recorded in account 408.2, Taxes
Other Than Income Taxes, Other Income and Deductions, or account 409.2,
Income Taxes, Other Income and Deductions, as appropriate.
1. Profit on sale of timber. (See electric plant instruction 7C.)
2. Profits from operations of others realized by the utility under
contracts.
3. Gains on disposition of investments. Also, gains on reacquisition
and resale or retirement of utilities debt securities when the gain is
not amortized and used by a jurisdictional regulatory agency to reduce
embedded debt cost in establishing rates. See General Instruction 17.
421.1 Gain on disposition of property.
This account shall be credited with the gain on the sale, conveyance,
exchange, or transfer of utility or other property to another. Amounts
relating to gains on land and land rights held for future use recorded
in account 105, Electric Plant Held for Future Use will be accounted for
as prescribed in paragraphs B, C, and D thereof. (See electric plant
instructions 5F, 7E, and 10E.) Income taxes on gains recorded in this
account shall be recorded in account 409.2, Income Taxes, Other Income
and Deductions.
421.2 Loss on disposition of property.
This account shall be charged with the loss on the sale, conveyance,
exchange or transfer of utility or other property to another. Amounts
relating to losses on land and land rights held for future use recorded
in account 105, Electric Plant Held for Future Use will be accounted for
as prescribed in paragraphs B, C, and D thereof. (See electric plant
instructions 5F, 7E, and 10E.) The reduction in income taxes relating to
losses recorded in this account shall be recorded in account 409.2,
Income Taxes, Other Income and Deductions.
425 Miscellaneous amortization.
This account shall include amortization charges not includible in
other accounts which are properly deductible in determining the income
of the utility before interest charges. Charges includible herein, if
significant in amount, must be in accordance with an orderly and
systematic amortization program.
1. Amortization of utility plant acquisition adjustments, or of
intangibles included in utility plant in service when not authorized to
be included in utility operating expenses by the Commission.
2. Other miscellaneous amortization charges allowed to be included in
this account by the Commission.
426 (Reserved)
These accounts shall include miscellaneous expense items which are
nonoperating in nature but which are properly deductible before
determining total income before interest charges.
Note: The classification of expenses as nonoperating and their
inclusion in these accounts is for accounting purposes. It does not
preclude Commission consideration of proof to the contrary for
ratemaking or other purposes.
426.1 Donations.
This account shall include all payments or donations for charitable,
social or community welfare purposes.
426.2 Life insurance.
This account shall include all payments for life insurance of
officers and employees where company is beneficiary (net premiums less
increase in cash surrender value of policies).
426.3 Penalties.
This account shall include payments by the company for penalties or
fines for violation of any regulatory statutes by the company or its
officials.
426.4 Expenditures for certain civic, political and related
activities.
This account shall include expenditures for the purpose of
influencing public opinion with respect to the election or appointment
of public officials, referenda, legislation, or ordinances (either with
respect to the possible adoption of new referenda, legislation or
ordinances or repeal or modification of existing referenda, legislation
or ordinances) or approval, modification, or revocation of franchises;
or for the purpose of influencing the decisions of public officials, but
shall not include such expenditures which are directly related to
appearances before regulatory or other governmental bodies in connection
with the reporting utility's existing or proposed operations.
426.5 Other deductions.
This account shall include other miscellaneous expenses which are
nonoperating in nature, but which are properly deductible before
determining total income before interest charges.
1. Loss relating to investments in securities written-off or
written-down.
2. Loss on sale of investments.
3. Loss on reacquisition, resale or retirement of utility's debt
securities, when the loss is not amortized and used by a jurisdictional
regulatory agency to increase embedded debt cost in establishing rates.
See General Instruction 17.
4. Preliminary survey and investigation expenses related to abandoned
projects, when not written-off to the appropriate operating expense
account.
5. Costs of preliminary abandonment costs recorded in accounts 182.1,
Extraordinary Property Losses, and 182.2, Unrecovered Plant and
Regulatory Study Costs, not allowed to be amortized to account 407,
Amortization of Property Losses, Unrecovered Plant and Regulatory Study
Costs.
427 Interest on long-term debt.
A. This account shall include the amount of interest on outstanding
long-term debt issued or assumed by the utility, the liability for which
is included in account 221, Bonds, or account 224, Other Long-Term Debt.
B. This account shall be so kept or supported as to show the interest
accruals on each class and series of long-term debt.
Note: This account shall not include interest on nominally issued or
nominally outstanding long-term debt, including securities assumed.
428 Amortization of debt discount and expense.
A. This account shall include the amortization of unamortized debt
discount and expense on outstanding long-term debt. Amounts charged to
this account shall be credited concurrently to accounts 181, Unamortized
Debt Expense, and 226, Unamortized Discount on Long-Term Debt -- Debit.
B. This account shall be so kept or supported as to show the debt
discount and expense on each class and series of long-term debt.
428.1 Amortization of loss on reacquired debt.
A. This account shall include the amortization of the losses on
reacquisition of debt. Amounts charged to this account shall be
credited concurrently to account 189, Unamortized Loss on Reacquired
Debt.
B. This account shall be maintained so as to allow ready
identification of the loss amortized applicable to each class and series
of long-term debt reacquired. See General Instruction 17.
429 Amortization of premium on debt -- Cr.
A. This account shall include the amortization of unamortized net
premium on outstanding long-term debt. Amounts credited to this account
shall be charged concurrently to account 225, Unamortized Premium on
Long-Term Debt.
B. This account shall be so kept or supported as to show the premium
on each class and series of long-term debt.
429.1 Amortization of gain on reacquired debt -- Credit.
A. This account shall include the amortization of the gains realized
from reacquisition of debt. Amounts credited to this account shall be
charged concurrently to account 257, Unamortized Gain on Reacquired
Debt.
B. This account shall be maintained so as to allow ready
identification of the gains amortized applicable to each class and
series of long-term debt reacquired. See General Instruction 17.
430 Interest on debt to associated companies.
A. This account shall include the interest accrued on amounts
included in account 223, Advances from Associated Companies, and on all
other obligations to associated companies.
B. The records supporting the entries to this account shall be so
kept as to show to whom the interest is to be paid, the period covered
by the accrual, the rate of interest and the principal amount of the
advances or other obligations on which the interest is accrued.
431 Other interest expense.
This account shall include all interest charges not provided for
elsewhere.
1. Interest on notes payable on demand or maturing one year or less
from date and on open accounts, except notes and accounts with
associated companies.
2. Interest on customers' deposits.
3. Interest on claims and judgments, tax assessments, and assessments
for public improvements past due.
4. Income and other taxes levied upon bondholders of utility and
assumed by it.
432 Allowance for borrowed funds used during construction -- Credit.
This account shall include concurrent credits for allowance for
borrowed funds used during construction, not to exceed amounts computed
in accordance with the formula prescribed in Electric Plant Instruction
3(17).
434 Extraordinary income.
This account shall be credited with gains of unusual nature and
infrequent occurrence, which would significantly distort the current
year's income computed before Extraordinary Items, if reported other
than as extraordinary items. Income tax relating to the amounts
recorded in this account shall be recorded in account 409.3, Income
Taxes, Extraordinary Items. (See General Instruction 7.)
435 Extraordinary deductions.
This account shall be debited with losses of unusual nature and
infrequent occurrence, which would significantly distort the current
year's income computed before Extraordinary Items, if reported other
than as extraordinary items. Income tax relating to the amounts
recorded in this account shall be recorded in account 409.3, Income
Taxes, Extraordinary Items. (See General Instruction 7.)
Retained Earnings Chart of Accounts
433 Balance transferred from income.
436 Appropriations of retained earnings.
437 Dividends declared -- preferred stock.
438 Dividends declared -- common stock.
439 Adjustments to retained earnings.
18 CFR 46.6 Retained Earnings Accounts
433 Balance transferred from income.
This account shall include the net credit or debit transferred from
income for the year.
436 Appropriations of retained earnings.
This account shall include appropriations of retained earnings.
1. Appropriations required under terms of mortgages, orders of
courts, contracts, or other agreements.
2. Appropriations required by action of regulatory authorities.
3. Other appropriations made at option of utility for specific
purposes.
437 Dividends declared -- preferred stock.
A. This account shall include amounts declared payable out of
retained earnings as dividends on actually outstanding preferred or
prior lien capital stock issued by the utility.
B. Dividends shall be segregated for each class and series of
preferred stock as to those payable in cash, stock, and other forms. If
not payable in cash, the medium of payment shall be described with
sufficient detail to identify it.
438 Dividends declared -- common stock.
A. This account shall include amounts declared payable out of
retained earnings as dividends on actually outstanding common capital
stock issued by the utility.
B. Dividends shall be segregated for each class of common stock as to
those payable in cash, stock and other forms. If not payable in cash,
the medium of payment shall be described with sufficient detail to
identify it.
439 Adjustments to retained earnings.
A. This account shall, with prior Commission approval, include
significant nonrecurring transactions accounted for as prior period
adjustments, as follows:
(1) Correction of an error in the financial statements of a prior
year.
(2) Adjustments that result from realization of income tax benefits
of pre-acquisition operating loss carryforwards of purchased
subsidiaries.
All other items of profit and loss recognized during a year shall be
included in the determination of net income for that year;
B. Adjustments, charges, or credits due to losses on reacquisition,
resale or retirement of the company's own capital stock shall be
included in this account. (See account 210, Gain on Resale or
Cancellation of Reacquired Capital Stock, for the treatment of gains.)
Operating Revenue Chart of Accounts
440 Residential sales.
442 Commercial and industrial sales.
444 Public street and highway lighting.
445 Other sales to public authorities (Major only).
446 Sales to railroads and railways (Major only).
447 Sales for resale.
448 Interdepartmental sales.
449 Other sales (Nonmajor only).
449.1 Provision for rate refunds.
450 Forfeited discounts.
451 Miscellaneous service revenues.
453 Sales of water and water power.
454 Rent from electric property.
455 Interdepartmental rents.
456 Other electric revenues.
18 CFR 46.6 Operating Revenue Accounts
440 Residential sales.
A. This account shall include the net billing for electricity
supplied for residential or domestic purposes.
B. Records shall be maintained so that the quantity of electricity
sold and the revenue received under each rate schedule shall be readily
available.
Note: When electricity supplied through a single meter is used for
both residential and commercial purposes, the total revenue shall be
included in this account, or account 442, Commercial and Industrial
Sales, according to the rate schedule which is applied. If the same
rate schedules apply to residential as to commercial and industrial
service, classification shall be made according to principal use.
442 Commercial and industrial sales.
A. This account shall include the net billing for electricity
supplied to customers for commercial and industrial purposes.
B. Records shall be maintained so that the quantity of electricity
sold and the revenue received under each rate schedule shall be readily
available. Records shall be maintained also so as to show separately
the revenues from commercial and industrial customers (1) which have
demands generally of 1000 kw or more, and (2) those which have demands
generally less than 1000 kw. Reasonable deviations above or below the
1000 kw demand are permissible in order that transfers of customers
between the two classes during the year may be minimized.
Note A: If the utility classifies large commercial and industrial
customers and related revenues on a lesser basis than 1000 kilowatts of
demand, or segregates industrial customers and related revenues
according to a recognized definition of an industrial customer, such
classifications are acceptable in lieu of those otherwise required by
the text of this account on the basis of 1000 kilowatts of demand.
Note B: When electricity supplied through a single meter is used for
both commercial and residential purposes, the total revenue shall be
included in this account, or in account 440, Residential Sales,
according to the rate schedule which is applied. If the same rate
schedules apply to residential as to commercial and industrial service,
classification shall be made according to the principal use.
444 Public street and highway lighting.
A. This account shall include the net billing for electricity
supplied and services rendered for the purposes of lighting streets,
highways, parks and other public places, or for traffic or other signal
system service, for municipalities or other divisions or agencies of
state or federal governments.
B. Records shall be maintained so that the quantity of electricity
sold and the revenue received from each customer shall be readily
available. In addition, the records shall be maintained so as to show
the revenues from (1) contracts which include both electricity and
services, and (2) contracts which include sales of electricity only.
445 Other sales to public authorities (Major only).
A. This account shall include the net billing for electricity
supplied to municipalities or divisions or agencies of federal or state
governments, under special contracts or agreements or service
classifications applicable only to public authorities, except such
revenues as are includible in accounts 444 and 447.
B. Records shall be maintained so as to show the quantity of
electricity sold and the revenues received from each customer.
446 Sales to railroads and railways (Major only).
A. This account shall include the net billing for electricity
supplied to railroads and interurban and street railways, for general
railroad use, including the propulsion of cars or locomotives, where
such electricity is supplied under separate and distinct rate schedules.
B. Records shall be maintained so that the quantity of electricity
sold and the revenue received from each customer shall be readily
available.
Note: Revenues from incidental use of electricity furnished under a
contract for propulsion of cars or locomotives shall be included herein.
447 Sales for resale.
A. This account shall include the net billing for electricity
supplied to other electric utilities or to public authorities for resale
purposes.
B. Records shall be maintained so as to show the quantity of
electricity sold and the revenue received from each customer.
Note: Revenues from electricity supplied to other public utilities
for use by them and not for distribution, shall be included in account
442, Commercial and Industrial Sales, unless supplied under the same
contract as and not readily separable from revenues includible in this
account.
448 Interdepartmental sales.
A. This account shall include amounts charged by the electric
department at tariff or other specified rates for electricity supplied
by it to other utility departments.
B. Records shall be maintained so that the quantity of electricity
supplied each other department and the charges therefor shall be readily
available.
449 Other sales (Nonmajor only).
A. This account shall include revenues for electricity supplied which
are not provided for elsewhere.
B. Records shall be maintained so as to show the quantity of
electricity sold and the revenues received from each customer.
449.1 Provision for rate refunds.
A. This account shall be charged with provisions for the estimated
pretax effects on net income of the portions of amounts being collected
subject to refund which are estimated to be required to be refunded.
Such provisions shall be credited to Account 229, Accumulated Provision
for Rate Refunds.
B. This account shall also be charged with amounts refunded when such
amounts had not been previously accrued.
C. Income tax effects relating to the amounts recorded in this
account shall be recorded in account 410.1, Provision for Deferred
Income Taxes, Utility Operating Income, or account 411.1, Provision for
Deferred Income Taxes -- Credit, Utility Operating Income, as
appropriate.
450 Forfeited discounts.
This account shall include the amount of discounts forfeited or
additional charges imposed because of the failure of customers to pay
their electric bills on or before a specified date.
451 Miscellaneous service revenues.
This account shall include revenues for all miscellaneous services
and charges billed to customers which are not specifically provided for
in other accounts.
1. Fees for changing, connecting or disconnecting service.
2. Profit on maintenance of appliances, wiring, piping or other
installations on customers' premises.
3. Net credit or debit (cost less net salvage and less payment from
customers) on closing of work orders for plant installed for temporary
service of less than one year. (See account 185, Temporary Facilities.)
4. Recovery of expenses in connection with current diversion cases
(billing for the electricity consumed shall be included in the
appropriate electric revenue account).
453 Sales of water and water power.
A. This account shall include revenues derived from the sale of water
for irrigation, domestic, industrial or other uses, or for the
development by others of water power, or for headwater benefits; also,
revenues derived from furnishing water power for mechanical purposes
when the investment in the property used in supplying such water or
water power is carried as electric plant in service.
B. The records for this account shall be kept in such manner as to
permit an analysis of the rates charged and the purposes for which the
water was used.
454 Rent from electric property.
A. This account shall include rents received for the use by others of
land, buildings, and other property devoted to electric operations by
the utility.
B. When property owned by the utility is operated jointly with others
under a definite arrangement for apportioning the actual expenses among
the parties to the arrangement, any amount received by the utility for
interest or return or in reimbursement of taxes or depreciation on the
property shall be credited to this account.
Note: Do not include in this account rents from property
constituting an operating unit or system. (See account 412, Revenues
from Electric Plant Leased to Others.)
455 Interdepartmental rents.
This account shall include rents credited to the electric department
on account of rental charges made against other departments (gas, water,
etc.) of the utility. In the case of property operated under a definite
arrangement to allocate the costs among the departments using the
property, any reimbursement to the electric department for interest or
return and depreciation and taxes shall be credited to this account.
456 Other electric revenues.
This account shall include revenues derived from electric operations
not includible in any of the foregoing accounts. It shall also include
in a separate subaccount revenues received from operation of fish and
wildlife, and recreation facilities whether operated by the company or
by contract concessionaires, such as revenues from leases, or rentals of
land for cottage, homes, or campsites.
1. Commission on sale or distribution of electricity of others when
sold under rates filed by such others.
2. Compensation for minor or incidental services provided for others
such as customer billing, engineering, etc.
3. Profit or loss on sale of material and supplies not ordinarily
purchased for resale and not handled through merchandising and jobbing
accounts.
4. Sale of steam, but not including sales made by a steamheating
department or transfers of steam under joint facility operations.
5. Revenues from transmission of electricity of others over
transmission facilities of the utility.
6. Include in a separate subaccount revenues in payment for rights
and/or benefits received from others which are realized through
research, development, and demonstration ventures. In the event the
amounts received are so large as to distort revenues for the year in
which received (5 percent of net income before application of the
benefit) the amounts shall be credited to Account 253, Other Deferred
Credits, and amortized by credits to this account over a period not to
exceed 5 years.
Operation and Maintenance Expense Chart of Accounts
500 Operation supervision and engineering.
501 Fuel.
502 Steam expenses (Major only).
503 Steam from other sources.
504 Steam transferred -- Credit.
505 Electric expenses (Major only).
506 Miscellaneous steam power expenses (Major only).
507 Rents.
508 Operation supplies and expenses (Nonmajor only).
510 Maintenance supervision and engineering (Major only).
511 Maintenance of structures (Major only).
512 Maintenance of boiler plant (Major only).
513 Maintenance of electric plant (Major only).
514 Maintenance of miscellaneous steam plant (Major only).
515 Maintenance of steam production plant (Nonmajor only).
517 Operation supervision and engineering (Major only).
518 Nuclear fuel expense (Major only).
519 Coolants and water (Major only).
520 Steam expenses (Major only).
521 Steam from other sources (Major only).
522 Steam transferred -- Credit. (Major only).
523 Electric expenses (Major only).
524 Miscellaneous nuclear power expenses (Major only).
525 Rents (Major only).
528 Maintenance supervision and engineering (Major only).
529 Maintenance of structures (Major only).
530 Maintenance of reactor plant equipment (Major only).
531 Maintenance of electric plant (Major only).
532 Maintenance of miscellaneous nuclear plant (Major only).
535 Operation supervision and engineering.
536 Water for power.
537 Hydraulic expenses (Major only).
538 Electric expenses (Major only).
539 Miscellaneous hydraulic power generation expenses (Major only).
540 Rents.
540.1 Operation supplies and expenses (Nonmajor only).
541 Maintenance supervision and engineering (Major only).
542 Maintenance of structures (Major only).
543 Maintenance of reservoirs, dams and waterways (Major only).
544 Maintenance of electric plant (Major only).
545 Maintenance of miscellaneous hydraulic plant (Major only).
545.1 Maintenance of hydraulic production plant (Nonmajor only).
546 Operation supervision and engineering.
547 Fuel.
548 Generation expenses (Major only).
549 Miscellaneous other power generation expenses (Major only).
550 Rents.
550.1 Operation supplies and expenses (Nonmajor only).
551 Maintenance supervision and engineering (Major only).
552 Maintenance of structures (Major only).
553 Maintenance of generating and electric plant (Major only).
554 Maintenance of miscellaneous other power generation plant (Major
only).
554.1 Maintenance of other power production plant (Nonmajor only).
555 Purchased power.
556 System control and load dispatching (Major only).
557 Other expenses.
560 Operation supervision and engineering.
561 Load dispatching (Major only).
562 Station expenses (Major only).
563 Overhead line expenses (Major only).
564 Underground line expenses (Major only).
565 Transmission of electricity by others (Major only).
566 Miscellaneous transmission expenses (Major only).
567 Rents.
567.1 Operation supplies and expenses (Nonmajor only).
568 Maintenance supervision and engineering (Major only).
569 Maintenance of structures (Major only).
570 Maintenance of station equipment (Major only).
571 Maintenance of overhead lines (Major only).
572 Maintenance of underground lines (Major only).
573 Maintenance of miscellaneous transmission plant (Major only).
574 Maintenance of transmission plant (Nonmajor only).
580 Operation supervision and engineering.
581 Load dispatching (Major only).
581.1 Line and station expenses (Nonmajor only).
582 Station expenses (Major only).
583 Overhead line expenses (Major only).
584 Underground line expenses (Major only).
585 Street lighting and signal system expenses.
586 Meter expenses.
587 Customer installations expenses.
588 Miscellaneous distribution expenses.
589 Rents.
590 Maintenance supervision and engineering (Major only).
591 Maintenance of structures (Major only).
592 Maintenance of station equipment (Major only).
592.1 Maintenance of structures and equipment (Nonmajor only).
593 Maintenance of overhead lines (Major only).
594 Maintenance of underground lines (Major only).
594.1 Maintenance of lines (Nonmajor only).
595 Maintenance of line transformers.
596 Maintenance of street lighting and signal systems.
597 Maintenance of meters.
598 Maintenance of miscellaneous distribution plant.
901 Supervision (Major only).
902 Meter reading expenses.
903 Customer records and collection expenses.
904 Uncollectible accounts.
905 Miscellaneous customer accounts expenses (Major only).
906 Customer service and informational expenses (Nonmajor only).
907 Supervision (Major only).
908 Customer assistance expenses (Major only).
909 Informational and instructional advertising expenses (Major
only).
910 Miscellaneous customer service and informational expenses (Major
only).
911 Supervision (Major only).
912 Demonstrating and selling expenses (Major only).
913 Advertising expenses (Major only).
916 Miscellaneous sales expenses (Major only).
917 Sales expenses (Nonmajor only).
920 Administrative and general salaries.
921 Office supplies and expenses.
922 Administrative expenses transferred -- Credit.
923 Outside services employed.
924 Property insurance.
925 Injuries and damages.
926 Employee pensions and benefits.
927 Franchise requirements.
928 Regulatory commission expenses.
929 Duplicate charges -- Credit.
930.1 General advertising expenses.
930.2 Miscellaneous general expenses.
931 Rents.
933 Transportation expenses (Nonmajor only).
935 Maintenance of general plant.
18 CFR 46.6 Operation and Maintenance Expense Accounts
500 Operation supervision and engineering.
A. For Major Utilities, this account shall include the cost of labor
and expenses incurred in the general supervision and direction of the
operation of steam power generating stations. Direct supervision of
specific activities, such as fuel handling, boiler room operations,
generator operations, etc., shall be charged to the appropriate account.
(See operating expense instruction 1.)
B. For Nonmajor Utilities, this account shall include the cost of
supervision and labor in the operation of steam power generating
stations.
1. Supervising steam production.
2. Operating fuel conveying, storage, weighing and processing
equipment within boiler plant.
3. Operating boiler and boiler auxiliary equipment.
4. Operating boiler feed water purification and treatment equipment.
5. Operating ash collection and disposal equipment located inside the
plant.
6. Operating boiler plant electrical equipment.
7. Keeping boiler plant log and records and preparing reports on
boiler plant operations.
8. Testing boiler water.
9. Testing, checking, and adjusting meters, gauges and other
instruments in boiler plant.
10. Cleaning boiler plant equipment when not incidental to
maintenance work.
11. Repacking glands and replacing gauge classes where the work
involved is of a minor nature and is performed by regular operating
crews. Where the work is of a major character such as that performed on
high pressure boilers the item should be considered as maintenance.
12. Supervising electric production.
13. Operating turbines, engines, generators and exciters.
14. Operating condensers, circulating water systems and other
auxiliary apparatus.
15. Operating generator cooling system.
16. Operating lubrication and oil control system, including oil
purification.
17. Operating switchboards, switch gear and electric control and
protective equipment.
18. Keeping electric plant log and records and preparing reports on
electric plant operations.
19. Testing, checking and adjusting meters, gauges, and other
instruments, relays, controls and other equipment in electric plant.
20. Cleaning electric plant equipment when not incidental to
maintenance work.
21. Repacking glands and replacing gauge glasses.
22. General clerical and stenographic work at plant.
23. Guarding and patrolling plant and yard.
24. Building service.
25. Care of grounds including snow removal, cutting grass, etc.
26. Miscellaneous labor.
501 Fuel.
A. This account shall include the cost of fuel used in the production
of steam for the generation of electricity, including expenses in
unloading fuel from the shipping media and handling thereof up to the
point where the fuel enters the first boiler plant bunker, hopper,
bucket, tank or holder of the boiler-house structure. Records shall be
maintained to show the quantity, B.t.u. content and cost of each type of
fuel used.
B. The cost of fuel shall be charged initially to account 151, Fuel
Stock (for Nonmajor utilities, appropriate fuel accounts carried under
account 154, Plant Materials and Operating Supplies) and cleared to this
account on the basis of the fuel used. Fuel handling expenses may be
charged to this account as incurred or charged initially to account 152,
Fuel Stock Expenses Undistributed (for Nonmajor utilities, an
appropriate subaccount of account 154, Plant Materials and Operating
Supplies). In the latter event, they shall be cleared to this account
on the basis of the fuel used. Respective amounts of fuel stock and
fuel stock expenses shall be readily available.
Labor:
1. Supervising purchasing and handling of fuel.
2. All routine fuel analyses.
3. Unloading from shipping facility and putting in storage.
4. Moving of fuel in storage and transferring fuel from one station
to another.
5. Handling from storage or shipping facility to first bunker,
hopper, bucket, tank or holder of boiler-house structure.
6. Operation of mechanical equipment, such as locomotives, trucks,
cars, boats, barges, cranes, etc.
Materials and Expenses:
7. Operating, maintenance and depreciation expenses and ad valorem
taxes on utility-owned transportation equipment used to transport fuel
from the point of acquisition to the unloading point (Major only).
8. Lease or rental costs of transportation equipment used to
transport fuel from the point of acquisition to the unloading point
(Major only).
9. Cost of fuel including freight, switching, demurrage and other
transportation charges.
10. Excise taxes, insurance, purchasing commissions and similar
items.
11. Stores expenses to extent applicable to fuel.
12. Transportation and other expenses in moving fuel in storage.
13. Tools, lubricants and other supplies.
14. Operating supplies for mechanical equipment.
15. Residual disposal expenses less any proceeds from sale of
residuals.
Note: Abnormal fuel handling expenses occasioned by emergency
conditions shall be charged to expense as incurred.
502 Steam expenses (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in production of steam for electric generation. This
includes all expenses of handling and preparing fuel beginning at the
point where the fuel enters the first boiler plant bunker, hopper, tank
or holder of the boiler-house structure.
Labor:
1. Supervising steam production.
2. Operating fuel conveying, storage weighing and processing
equipment within boiler plant.
3. Operating boiler and boiler auxiliary equipment.
4. Operating boiler feed water purification and treatment equipment.
5. Operating ash-collecting and disposal equipment located inside the
plant.
6. Operating boiler plant electrical equipment.
7. Keeping boiler plant log and records and preparing reports on
boiler plant operation.
8. Testing boiler water.
9. Testing, checking, and adjusting meters, gauges, and other
instruments and equipment in boiler plant.
10. Cleaning boiler plant equipment when not incidental to
maintenance work.
11. Repacking glands and replacing gauge glasses where the work
involved is of a minor nature and is performed by regular operating
crews. Where the work is of a major character, such as that performed
on high-pressure boilers, the item should be considered as maintenance.
Materials and Expenses:
12. Chemicals and boiler inspection fees.
13. Lubricants.
14. Boiler feed water purchased and pumping supplies.
503 Steam from other sources.
This account shall include the cost of steam purchased, or
transferred from another department of the utility or from others under
a joint facility operating arrangement, for use in prime movers devoted
to the production of electricity.
Note: The records shall be so kept as to show separately for each
company from which steam is purchased, the point of delivery, the
quantity, the price, and the total charge. When steam is transferred
from another department or from others under a joint operating
arrangement, the utility shall be prepared to show full details of the
cost of producing such steam, the basis of the charge to electric
generation and the extent and manner of use by each department or party
involved.
504 Steam transferred -- Credit.
A. This account shall include credits for expenses of producing steam
which are charged to others or to other utility departments under a
joint operating arrangement. Include also credits for steam expenses
chargeable to other electric accounts outside of the steam generation
group. Full details of the basis of determination of the cost of steam
transferred shall be maintained.
B. If the charges to others or to other departments of the utility
include an amount for depreciation, taxes and return on the joint steam
facilities, such portion of the charge shall be credited, in the case of
others, to account 454, Rent from Electric Property, and in the case of
other departments of the utility, to account 455, Interdepartmental
Rents.
505 Electric expenses (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in operating prime movers, generators, and their
auxiliary apparatus, switch gear and other electric equipment to the
points where electricity leaves for conversion for transmission or
distribution.
Labor:
1. Supervising electric production.
2. Operating turbines, engines, generators and exciters.
3. Operating condensers, circulating water systems and other
auxiliary apparatus.
4. Operating generator cooling system.
5. Operating lubrication and oil control system, including oil
purification.
6. Operating switchboards, switch gear and electric control and
protective equipment.
7. Keeping electric plant log and records and preparing reports on
electric plant operations.
8. Testing, checking and adjusting meters, gauges, and other
instruments, relays, controls and other equipment in the electric plant.
9. Cleaning electric plant equipment when not incidental to
maintenance work.
10. Repacking glands and replacing gauge glasses.
Materials and Expenses:
11. Lubricants and control system oils.
12. Generator cooling gases.
13. Circulating water purification supplies.
14. Cooling water purchased.
15. Motor and generator brushes.
506 Miscellaneous steam power expenses (Major only).
This account shall include the cost of labor, materials used and
expenses incurred which are not specifically provided for or are not
readily assignable to other steam generation operation expense accounts.
Labor:
1. General clerical and stenographic work.
2. Guarding and patrolling plant and yard.
3. Building service.
4. Care of grounds including snow removal, cutting grass, etc.
5. Miscellaneous labor.
Materials and Expenses:
6. General operating supplies, such as tools, gaskets, packing waste,
gauge glasses, hose, indicating lamps, record and report forms, etc.
7. First-aid supplies and safety equipment.
8. Employees' service facilities expenses.
9. Building service supplies.
10. Communication service.
11. Miscellaneous office supplies and expenses, printing and
stationery.
12. Transportation expenses.
13. Meals, traveling and incidental expenses.
14. Research, development, and demonstration expenses.
507 Rents.
This account shall include all rents of property of others used,
occupied or operated in connection with steam power generation. (See
operating expense instruction 3.)
508 Operation supplies and expenses (Nonmajor only).
This account shall include the cost of materials used and expenses
incurred in the operation of steam power generating stations.
1. Chemicals and boiler inspection fees.
2. Lubricants and control system oils.
3. Boiler feed water purchased and pumping supplies.
4. Generator cooling gases.
5. Circulating water purification supplies.
6. Cooling water purchased.
7. Motor and generator brushes.
8. General operating supplies, such as tools, gaskets, packing waste,
gauge glasses, hose, indicating lamps, record and report forms, etc.
9. First-aid supplies and safety equipment.
10. Employees' service facilities expenses.
11. Building service supplies.
12. Communication service.
13. Miscellaneous office supplies and expenses, printing and
stationery.
14. Transportation expenses.
15. Meals, traveling and incidental expenses.
510 Maintenance supervision and engineering (Major only).
This account shall include the cost of labor and expenses incurred in
the general supervision and direction of maintenance of steam generation
facilities. Direct field supervision of specific jobs shall be charged
to the appropriate maintenance account. (See operating expense
instruction 1.)
511 Maintenance of structures (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in the maintenance of steam structures, the book cost
of which is includible in account 311, Structures and Improvements.
(See operating expense instruction 2.)
512 Maintenance of boiler plant (Major only).
A. This account shall include the cost of labor, materials used and
expenses incurred in the maintenance of steam plant, the book cost of
which is includible in account 312, Boiler Plant Equipment. (See
operating expense instruction 2.)
B. For the purpose of making charges hereto and to account 513,
Maintenance of Electric Plant, the point at which steam plant is
distinguished from electric plant is defined as follows:
1. Inlet flange of throttle valve on prime mover.
2. Flange of all steam extraction lines on prime mover.
3. Hotwell pump outlet on condensate lines.
4. Inlet flange of all turbine-room auxiliaries.
5. Connection to line side of motor starter for all boiler-plant
equipment.
513 Maintenance of electric plant (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in the maintenance of electric plant, the book cost of
which is includible in account 313, Engines and Engine-Driven
Generators, account 314, Turbogenerator Units, and account 315,
Accessory Electric Equipment. (See operating expense instruction 2 and
paragraph B of account 512.)
514 Maintenance of miscellaneous steam plant (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in maintenance of miscellaneous steam generation
plant, the book cost of which is includible in account 316,
Miscellaneous Power Plant Equipment. (See operating expense instruction
2.)
515 Maintenance of steam production plant (Nonmajor only).
This account shall include the cost of labor, materials used and
expenses incurred in the maintenance of steam production plant the book
cost of which is includible in plant accounts 311 to 316, inclusive.
(See operating expense instruction 2.)
517 Operation supervision and engineering (Major only).
This account shall include the cost of labor and expenses incurred in
the general supervision and direction of the operation of nuclear power
generating stations. Direct supervision of specific activities, such as
fuel handling, reactor operations, generator operations, etc., shall be
charged to the appropriate account. (See operating expense instruction
1.)
518 Nuclear fuel expense (Major only).
A. This account shall be debited and account 120.5, Accumulated
Provision for Amortization of Nuclear Fuel Assemblies, credited for the
amortization of the net cost of nuclear fuel assemblies used in the
production of energy. The net cost of nuclear fuel assemblies subject
to amortization shall be the cost of nuclear fuel assemblies plus or
less the expected net salvage of uranium, plutonium, and other
byproducts and unburned fuel. The utility shall adopt the necessary
procedures to assure that charges to this account are distributed
according to the thermal energy produced in such periods.
B. This account shall also include the costs involved when fuel is
leased.
C. This account shall also include the cost of other fuels, used for
ancillary steam facilities, including superheat.
D. This account shall be debited or credited as appropriate for
significant changes in the amounts estimated as the net salvage value of
uranium, plutonium, and other byproducts contained in account 157,
Nuclear Materials Held for Sale and the amount realized upon the final
disposition of the materials. Significant declines in the estimated
realizable value of items carried in account 157 may be recognized at
the time of market price declines by charging this account and crediting
account 157. When the declining change occurs while the fuel is
recorded in account 120.3, Nuclear Fuel Assemblies in Reactor, the
effect shall be amortized over the remaining life of the fuel.
519 Coolants and water (Major only).
This account shall include the cost of labor, materials used and
expenses incurred for heat transfer materials and water used for steam
and cooling purposes.
Labor:
1. Operation of water supply facilities.
2. Handling of coolants and heat transfer materials.
Materials and Expenses:
3. Chemicals.
4. Additions to or refining of, fluids used in reactor systems.
5. Lubricants.
6. Pumping supplies and expenses.
7. Miscellaneous supplies and expenses.
8. Purchased water.
Note: Do not include in this account water for general station use
or the initial charge for coolants, heat transfer or moderator fluids,
chemicals or other supplies capitalized.
520 Steam expenses (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in production of steam through nuclear processes, and
similar expenses for operation of any auxiliary superheat facilities.
Labor:
1. Supervising steam production.
2. Fuel handling including removal, insertion, disassembly and
preparation for cooling operations and shipment.
3. Testing instruments and gauges.
4. Health, safety, monitoring and decontamination activities.
5. Waste disposal.
6. Operating steam boilers and auxiliary steam, superheat facilities.
Materials and Expenses:
7. Chemical supplies.
8. Charts, logs, etc.
9. Health, safety, monitoring and decontamination supplies.
10. Boiler inspection fees.
11. Lubricants.
521 Steam from other sources (Major only).
This account shall include the cost of steam purchased or transferred
from another department of the utility or from others under a joint
facility operating arrangement for use in prime movers devoted to the
production of electricity.
Note: The records shall be so kept as to show separately for each
company from which steam is purchased, the point of delivery, the
quantity, the price, and the total charge. When steam is transferred
from another operating department, the utility shall be prepared to show
full details of the cost of producing such steam, the basis of the
charges to electric generation, and the extent and manner of use by each
department involved.
522 Steam transferred -- Credit (Major only).
A. This account shall include credits for expenses of producing steam
which are charged to others or to other utility departments under a
joint operating arrangement. Include also credits for steam expenses
chargeable to other electric accounts outside of the steam generation
group. Full details of the basis of determination of the cost of steam
transferred shall be maintained.
B. If the charges to others or to other departments of the utility
include an amount for depreciation, taxes and return on the joint steam
facilities, such portion of the charge shall be credited, in the case of
others, to account 454, Rent from Electric Property, and in the case of
other departments of the utility, to account 455, Interdepartmental
Rents.
523 Electric expenses (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in operating turbogenerators, steam turbines and their
auxiliary apparatus, switch gear and other electric equipment to the
points where electricity leaves for conversion for transmission or
distribution.
Labor:
1. Supervising electric production.
2. Operating turbines, engines, generators and exciters.
3. Operating condensers, circulating water systems and other
auxiliary apparatus.
4. Operating generator cooling system.
5. Operating lubrication and oil control system, including oil
purification.
6. Operating switchboards, switch gear and electric control and
protective equipment.
7. Keeping plant log and records and preparing reports on electric
plant operations.
8. Testing, checking and adjusting meters, gauges, and other
instruments, relays, controls and other equipment in the electric plant.
9. Cleaning electric plant equipment when not incidental to
maintenance.
10. Repacking glands and replacing gauge glasses.
Materials and Expenses:
11. Lubricants and control system oils.
12. Generator cooling gases.
13. Log sheets and charts.
14. Motor and generator brushes.
524 Miscellaneous nuclear power expenses (Major only).
This account shall include the cost of labor, materials used and
expenses incurred which are not specifically provided for or are not
readily assignable to other nuclear generation operation accounts.
Labor:
1. General clerical and stenographic work.
2. Plant security.
3. Building service.
4. Care of grounds, including snow removal, cutting grass, etc.
5. Miscellaneous labor.
Materials and Expenses:
6. General operating supplies, such as tools, gaskets, hose,
indicating lamps, record and report forms, etc.
7. First-aid supplies and safety equipment.
8. Employees' service facilities expenses.
9. Building service supplies.
10. Communication service.
11. Miscellaneous office supplies and expenses, printing and
stationery.
12. Transportation expenses.
13. Meals, traveling and incidental expenses.
14. Research, development, and demonstration expenses.
525 Rents (Major only).
This account shall include all rents of property of others used,
occupied or operated in connection with nuclear generation. (See
operating expense instruction 3.)
528 Maintenance supervision and engineering (Major only).
This account shall include the cost of labor and expenses incurred in
the general supervision and direction of maintenance of nuclear
generation facilities. Direct field supervision of specific jobs shall
be charged to the appropriate maintenance account. (See operating
expense instruction 1.)
529 Maintenance of structures (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in the maintenance of structures, the book cost of
which is includible in account 321, Structures and Improvements. (See
operating expense instruction 2.)
530 Maintenance of reactor plant equipment (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in the maintenance of reactor plant, the book cost of
which is includible in account 322, Reactor Plant Equipment. (See
operating expense instruction 2.)
531 Maintenance of electric plant (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in the maintenance of electric plant, the book cost of
which is includible in account 323, Turbogenerator Units, and account
324, Accessory Electric Equipment. (See operating expense instruction
2.)
532 Maintenance of miscellaneous nuclear plant (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in maintenance of miscellaneous nuclear generating
plant, the book cost of which is includible in account 325,
Miscellaneous Power Plant Equipment. (See operating expense instruction
2.)
535 Operation supervision and engineering.
A. For Major utilities, this account shall include the cost of labor
and expenses incurred in the general supervision and direction of the
operation of hydraulic power generating stations. Direct supervision of
specific activities, such as hydraulic operation, generator operation,
etc., shall be charged to the appropriate account (See operating expense
instruction 1).
B. For Nonmajor utilities, this account shall include the cost of
supervision and labor in the operation of hydraulic power generating
stations.
1. Supervising hydraulic operation.
2. Removing debris and ice from trash racks, reservoirs and
waterways.
3. Patrolling reservoirs and waterways.
4. Operating intakes, spillways, sluiceways and outlet works.
5. Operating bubbler, heater or other deicing systems.
6. Ice and log jam work.
7. Operating navigation facilities.
8. Operations relating to conservation of game, fish, forests, etc.
9. Insect control activities.
10. Supervising electric production.
11. Operating prime movers, generators and auxiliary equipment.
12. Operating generator cooling system.
13. Operating lubrication and oil control systems, including oil
purification.
14. Operating switchboards, switchgear and electric control and
protection equipment.
15. Keeping plant log and records and preparing reports on plant
operations.
16. Testing, checking and adjusting meters, gauges, and other
instruments, relays, controls and other equipment in the plant.
17. Cleaning plant equipment when not incidental to maintenance work.
18. Repacking glands.
19. General clerical and stenographic work.
20. Guarding and patrolling plant and yard.
21. Building service.
22. Care of grounds, including snow removal, cutting grass, etc.
23. Snow removal from roads and bridges.
24. Miscellaneous labor.
536 Water for power.
This account shall include the cost of water used for hydraulic power
generation.
1. Cost of water purchased from others, including water tolls paid
reservoir companies.
2. Periodic payments for licenses or permits from any governmental
agency for water rights, or payments based on the use of the water.
3. Periodic payments for riparian rights.
4. Periodic payments for headwater benefits or for detriments to
others.
5. Cloud seeding.
537 Hydraulic expenses (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in operating hydraulic works including reservoirs,
dams, and waterways, and in activities directly relating to the
hydroelectric development outside the generating station. It shall also
include the cost of labor, materials used and other expenses incurred in
connection with the operation of (a) fish and wildlife, and (b)
recreation facilities. Separate subaccounts shall be maintained for
each of the above.
Labor:
1. Supervising hydraulic operation.
2. Removing debris and ice from trash racks, reservoirs and
waterways.
3. Patrolling reservoirs and waterways.
4. Operating intakes, spillways, sluiceways, and outlet works.
5. Operating bubbler, heater or other deicing systems.
6. Ice and log jam work.
7. Operating navigation facilities.
8. Operations relating to conservation of game, fish, forests, etc.
9. Insect control activities.
Materials and Expenses:
10. Insect control materials.
11. Lubricants, packing, and other supplies used in operation of
hydraulic equipment.
12. Transportation expense.
538 Electric expenses (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in operating prime movers, generators, and their
auxiliary apparatus, switchgear, and other electric equipment, to the
point where electricity leaves for conversion for transmission or
distribution.
Labor:
1. Supervising electric production.
2. Operating prime movers, generators and auxiliary equipment.
3. Operating generator cooling system.
4. Operating lubrication and oil control systems, including oil
purification.
5. Operating switchboards, switchgear, and electric control and
protection equipment.
6. Keeping plant log and records and preparing reports on plant
operations.
7. Testing, checking and adjusting meters, gauges, and other
instruments, relays, controls, and other equipment in the plant.
8. Cleaning plant equipment when not incidental to maintenance work.
9. Repacking glands.
Materials and Expenses:
10. Lubricants and control system oils.
11. Motor and generator brushes.
539 Miscellaneous hydraulic power generation expenses (Major only).
This account shall include the cost of labor, materials used and
expenses incurred which are not specifically provided for or are not
readily assignable to other hydraulic generation operation expense
accounts.
Labor:
1. General clerical and stenographic work.
2. Guarding and patrolling plant and yard.
3. Building service.
4. Care of grounds including snow removal, cutting grass, etc.
5. Snow removal from roads and bridges.
6. Miscellaneous labor.
Materials and Expenses:
7. General operating supplies, such as tools, gaskets, packing,
waste, hose, indicating lamps, record and report forms, etc.
8. First-aid supplies and safety equipment.
9. Employees' service facilities expenses.
10. Building service supplies.
11. Communication service.
12. Office supplies, printing and station- ery.
13. Transportation expenses.
14. Fuel.
15. Meals, traveling and incidental expenses.
16. Research, development, and demonstration expenses.
540 Rents.
This account shall include all rents of property of others used,
occupied or operated in connection with hydraulic power generation,
including amounts payable to the United States for the occupancy of
public lands and reservations for reservoirs, dams, flumes, forebays,
penstocks, power houses, etc., but not including transmission right of
way. (See operating expense instruction 3.)
540.1 Operation supplies and expenses (Nonmajor only).
This account shall include the cost of materials used and expenses
incurred in the operation of hydraulic power generating stations.
1. Insect control materials.
2. Lubricants, packing, and other supplies used in operation of
hydraulic equipment.
3. Supplies and expenses in conservation of game, fish, forests, etc.
4. Transportation expense.
5. Control system oils.
6. Motor and generator brushes.
7. General operating supplies, such as tools, gaskets, packing, waste
hose, indicating lamps, record and report forms, etc.
8. First-aid supplies and safety equipment.
9. Employees' service facilities expenses.
10. Building service supplies.
11. Communication service.
12. Office supplies, printing and stationery.
13. Transportation expenses.
14. Fuel.
15. Meals, traveling and incidental expenses.
541 Maintenance supervision and engineering (Major only).
This account shall include the cost of labor and expenses incurred in
the general supervision and direction of the maintenance of hydraulic
power generating stations. Direct field supervision of specific jobs
shall be charged to the appropriate maintenance account. (See operating
expense instruction 1.)
542 Maintenance of structures (Major only).
This account shall include the cost of labor, materials used, and
expenses incurred in maintenance of hydraulic structures, the book cost
of which is includible in Account 331, Structures and Improvements.
(See operating expense instruction 2) However, the cost of labor,
materials used and expenses incurred in the maintenance of fish and
wildlife, and recreation facilities, the book cost of which is
includible in Account 331, Structures and Improvements, shall be charged
to Account 545, Maintenance of Miscellaneous Hydraulic Plant.
543 Maintenance of reservoirs, dams, and waterways (Major only).
This account shall include the cost of labor, materials used, and
expenses incurred in maintenance of plant includible in Account 332,
Reservoirs, Dams, and Waterways. (See operating expense instruction 2)
However, the cost of labor materials used and expenses incurred in the
maintenance of fish and wildlife, and recreation facilities, the book
cost of which is includible in Account 332, Reservoirs, Dams and
Waterways, shall be charged to Account 545, Maintenance of Miscellaneous
Hydraulic Plant.
544 Maintenance of electric plant (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in maintenance of plant includible in Account 333,
Water Wheels, Turbines and Generators, and account 334, Accessory
Electric Equipment. (See operating expense instruction 2.)
545 Maintenance of miscellaneous hydraulic plant (Major only).
This account shall include the cost of labor, materials used, and
expenses incurred in maintenance of plant, the book cost of which is
includible in Account 335, Miscellaneous Power Plant Equipment, and
Account 336, Roads, Railroads and Bridges. (See operating expense
instruction 2.) It shall also include the cost of labor, materials used
and other expenses incurred in the maintenance of (a) fish and wildlife,
and (b) recreation facilities. Separate subaccounts shall be maintained
for each of the above.
545.1 Maintenance of hydraulic production plant (Nonmajor only).
This account shall include the cost of labor, materials used and
expenses incurred in the maintenance of hydraulic production plant the
book cost of which is includible in plant accounts 331 to 336,
inclusive. (See operating expense instruction 2.)
546 Operation supervision and engineering.
A. For Major utilities, this account shall include the cost of labor
and expenses incurred in the general supervision and direction of the
operation of other power generating stations. Direct supervision of
specific activities, such as fuel handling, engine and generator
operation, etc., shall be charged to the appropriate account. (See
operating expense instruction 1.)
B. For Nonmajor utilities, this account shall include the cost of
supervision and labor in the operation of other power generating
stations.
1. Supervising other power generation operation.
2. Operating prime movers, generators and auxiliary apparatus and
switching and other electric equipment.
3. Keeping plant log and records and preparing reports on plant
operations.
4. Testing, checking, cleaning, oiling and adjusting equipment.
5. General clerical and stenographic work.
6. Guarding and patrolling plant and yard.
7. Building service.
8. Care of grounds, including snow removal, cutting grass, etc.
9. Miscellaneous labor.
547 Fuel.
This account shall include the cost delivered at the station (see
account 151, Fuel Stock, for Major utilities, and account 154, Plant
Materials and Operating Supplies, for Nonmajor utilities) of all fuel,
such as gas, oil, kerosene, and gasoline used in other power generation.
548 Generation expenses (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in operating prime movers, generators and electric
equipment in other power generating stations, to the point where
electricity leaves for conversion for transmission or distribution.
Labor:
1. Supervising other power generation operation.
2. Operating prime movers, generators and auxiliary apparatus and
switching and other electric equipment.
3. Keeping plant log and records and preparing reports on plant
operations.
4. Testing, checking, cleaning, oiling and adjusting equipment.
Materials and Expenses:
5. Dynamo, motor, and generator brushes.
6. Lubricants and control system oils.
7. Water for cooling engines and generators.
549 Miscellaneous other power generation expenses (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in the operation of other power generating stations
which are not specifically provided for or are not readily assignable to
other generation expense accounts.
Labor:
1. General clerical and stenographic work.
2. Guarding and patrolling plant and yard.
3. Building service.
4. Care of grounds, including snow removal, cutting grass, etc.
5. Miscellaneous labor.
Materials and Expenses:
6. Building service supplies.
7. First-aid supplies and safety equipment.
8. Communication service.
9. Employees' service facilities expenses.
10. Office supplies, printing and station- ery.
11. Transportation expense.
12. Meals, traveling and incidental expenses.
13. Fuel for heating.
14. Water for fire protection or general use.
15. Miscellaneous supplies, such as hand tools, drills, saw blades,
files, etc.
16. Research, development, and demonstration expenses.
550 Rents.
This account shall include all rents of property of others used,
occupied, or operated in connection with other power generation. (See
operating expense instruction 3.)
550.1 Operation supplies and expenses (Nonmajor only).
This account shall include the cost of materials used and expenses
incurred in the operation of other power generating stations.
1. Dynamo, motor, and generator brushes.
2. Lubricants and control system oils.
3. Water for cooling engines and generators.
4. Building service supplies.
5. First-aid supplies and safety equipment.
6. Communication service.
7. Employees' service facilities expenses.
8. Office supplies, printing and stationery.
9. Transportation expense.
10. Meals, traveling and incidental expenses.
11. Fuel for heating.
12. Water for fire protection or general use.
13. Miscellaneous supplies, such as hand tools, drills, saw blades,
files, etc.
551 Maintenance supervision and engineering (Major only).
This account shall include the cost of labor and expenses incurred in
the general supervision and direction of the maintenance of other power
generating stations. Direct field supervision of specific jobs shall be
charged to the appropriate maintenance account. (See operating expense
instruction 1.)
552 Maintenance of structures (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in maintenance of facilities used in other power
generation, the book cost of which is includible in account 341,
Structures and Improvements, and account 342, Fuel Holders, Producers
and Accessories. (See operating expense instruction 2.)
553 Maintenance of generating and electric equipment (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in maintenance of plant, the book cost of which is
includible in account 343, Prime Movers, account 344. Generators, and
account 345, Accessory Electric Equipment. (See operating expense
instruction 2.)
554 Maintenance of miscellaneous other power generation plant (Major
only).
This account shall include the cost of labor, materials used and
expenses incurred in maintenance of other power generation plant, the
book cost of which is includible in account 346, Miscellaneous Power
Plant Equipment. (See operating expense instruction 2.)
554.1 Maintenance of other power production plant (Nonmajor only).
This account shall include the cost of labor, materials used and
expenses incurred in the maintenance of other power generation plant,
the book cost of which is includible in plant accounts 341 to 346,
inclusive. (See operating expense instruction 2.)
555 Purchased power.
A. This account shall include the cost at point of receipt by the
utility of electricity purchased for resale. It shall include, also,
net settlements for exchange of electricity or power, such as economy
energy, off-peak energy for on-peak energy, spinning reserve capacity,
etc. In addition, the account shall include the net settlements for
transactions under pooling or interconnection agreements wherein there
is a balancing of debits and credits for energy, capacity, etc.
Distinct purchases and sales shall not be recorded as exchanges and net
amounts only recorded merely because debit and credit amounts are
combined in the voucher settlement.
B. The records supporting this account shall show, by months, the
demands and demand charges, kilowatt-hours and prices thereof under each
purchase contract and the charges and credits under each exchange or
power pooling contract.
556 System control and load dispatching (Major only).
This account shall include the cost of labor and expenses incurred in
load dispatching activities for system control Utilities having an
interconnected electric system or operating under a central authority
which controls the production and dispatching of electricity may
apportion these costs to this account and accounts 561, Load Dispatching
-- Transmission, and 581, Load Dispatching -- Distribution.
Labor:
1. Allocating loads to plants and interconnections with others.
2. Directing switching.
3. Arranging and controlling clearances for construction,
maintenance, test and emergency purposes.
4. Controlling system voltages.
5. Recording loadings, water conditions, etc.
6. Preparing operating reports and data for billing and budget
purposes.
7. Obtaining reports on the weather and special events.
Expenses:
8. Communication service provided for system control purposes.
9. System record and report forms.
10. Meals, traveling and incidental expenses.
11. Obtaining weather and special events reports.
557 Other expenses.
A. This account shall be charged with any production expenses
including expenses incurred directly in connection with the purchase of
electricity, which are not specifically provided for in other production
expense accounts. Charges to this account shall be supported so that a
description of each type of charge will be readily available.
B. Recoveries from insurance companies, under use and occupancy
provisions of policies, of amounts in reimbursement of excessive or
added production costs for which the insurance company is liable under
the terms of the policy shall be credited to this account.
560 Operation supervision and engineering.
A. For Major utilities, this account shall include the cost of labor
and expenses incurred in the general supervision and direction of the
operation of the transmission system as a whole. Direct supervision of
specific activities, such as station operation, line operation, etc.,
shall be charged to the appropriate account. (See operating expense
instruction 1.)
B. For Nonmajor utilities, this account shall include the cost of
supervision and labor in the operation of the transmission system.
1. Direct switching.
2. Arranging and controlling clearances for construction,
maintenance, test and emergency purposes.
3. Controlling system voltages.
4. Obtaining reports on the weather and special events.
5. Preparing operating reports and data for billing and budget
purposes.
Station Labor:
6. Supervising station operation.
7. Adjusting station equipment where such adjustment primarily
affects performance, such as regulating the flow of cooling water,
adjusting current in fields of a machine or changing voltage of
regulators changing station transformer taps.
8. Inspecting, testing and calibrating station equipment for the
purpose of checking its performance.
9. Keeping station log and records and preparing reports on station
operation.
10. Operating switching and other station equipment.
11. Standing watch, guarding and patrolling station and station yard.
12. Sweeping, mopping and tidying station.
13. Care of grounds, including snow removal, cutting grass, etc.
14. Supervising line operation.
15. Inspecting and testing lightning arresters, circuit breakers,
switches and grounds.
16. Load tests of circuits.
17. Routine line patrolling.
18. Routine voltage surveys made to determine the condition of
efficiency of transmission system.
19. Transfering loads, switching and reconnecting circuits and
equipment for operating purposes. (Switching for construction or
maintenance purposes is not includible in this account.)
20. Routine inspection and cleaning of manholes, conduit, network and
transformer vaults.
21. Electrolysis surveys.
22. Inspecting and adjusting line testing equipment such as
voltmeters, ammeters, wattmeters, etc.
23. Regulation and addition of oil or gas in high voltage cable
systems.
24. General records of physical characteristics of lines and
stations, such as capacities, etc.
25. Ground resistance records.
26. Janitorial work at transmission office buildings, including care
of grounds, snow removal, cutting grass, etc.
27. Joint pole maps and prints.
28. Line load and voltage records.
29. Preparing maps and prints.
30. General clerical and stenographic work.
31. Miscellaneous labor.
561 Load dispatching (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in load dispatching operations pertaining to the
transmission of electricity.
Labor:
1. Directing switching.
2. Arranging and controlling clearances for construction,
maintenance, test and emergency purposes.
3. Controlling system voltages.
4. Obtaining reports on the weather and special events.
5. Preparing operating reports and data for billing and budget
purposes.
Expenses:
6. Communication service provided for system control purposes.
7. System record and report forms.
8. Meals, traveling and incidental expenses.
9. Obtaining weather and special events reports.
562 Station expenses (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in operating transmission substantions and switching
stations. If transmission station equipment is located in or adjacent
to a generating station the expenses applicable to transmission station
operations shall nevertheless be charged to this account.
Labor:
1. Supervising station operation.
2. Adjusting station equipment where such adjustment primarily
affects performance, such as regulating the flow of cooling water,
adjusting current in fields of a machine or changing voltage of
regulators, changing station transformer taps.
3. Inspecting, testing and calibrating station equipment for the
purpose of checking its performance.
4. Keeping station log and records and preparing reports on station
operation.
5. Operating switching and other station equipment.
6. Standing watch, guarding, and patrolling station and station yard.
7. Sweeping, mopping, and tidying station.
8. Care of grounds, including snow removal, cutting grass, etc.
Materials and Expenses:
9. Building service expenses.
10. Operating supplies, such as lubricants, commutator brushes,
water, and rubber goods.
11. Station meter and instrument supplies, such as ink and charts.
12. Station record and report forms.
13. Tool expense.
14. Transportation expenses.
15. Meals, traveling, and incidental expenses.
563 Overhead line expenses (Major only).
564 Underground line expenses (Major only).
A. These accounts shall include the cost of labor, materials used and
expenses incurred in the operation of transmission lines.
B. If the expenses are not substantial for both overhead and
underground lines, these accounts may be combined.
Labor:
1. Supervising line operation.
2. Inspecting and testing lightning arresters, circuit breakers,
switches, and grounds
3. Load tests of circuits.
4. Routine line patrolling.
5. Routine voltage surveys made to determine the condition or
efficiency of transmission system.
6. Transferring loads, switching and reconnecting circuits and
equipment for operating purposes. (Switching for construction or
maintenance purposes is not includible in this account.)
7. Routine inspection and cleaning of manholes, conduit, network and
transformer vaults.
8. Electrolysis surveys.
9. Inspecting and adjusting line-testing equipment, such as
voltmeters, ammeters, wattmeters, etc.
10. Regulation and addition of oil or gas in high-voltage cable
systems.
Materials and Expenses:
11. Transportation expenses.
12. Meals, traveling and incidental expenses.
13. Tool expenses.
14. Operating supplies, such as instrument charts, rubber goods, etc.
565 Transmission of electricity by others (Major only).
This account shall include amounts payable to others for the
transmission of the utility's electricity over transmission facilities
owned by others.
566 Miscellaneous transmission expenses (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in transmission map and record work, transmission
office expenses, and other transmission expenses not provided for
elsewhere.
Labor:
1. General records of physical characteristics of lines and stations,
such as capacities, etc.
2. Ground resistance records.
3. Janitor work at transmission office buildings, including care of
grounds, snow removal, cutting grass, etc.
4. Joint pole maps and records.
5. Line load and voltage records.
6. Preparing maps and prints.
7. General clerical and stenographic work.
8. Miscellaneous labor.
Materials and Expenses:
9. Communication service.
10. Building service supplies.
11. Map and record supplies.
12. Transmission office supplies and expenses, printing and
stationery.
13. First-aid supplies.
14. Research, development, and demonstration expenses.
567 Rents.
This account shall include rents of property of others used,
occupied, or operated in connection with the transmission system,
including payments to the United States and others for use of public or
private lands and reservations for transmission line rights of way.
(See operating expense instruction 3.)
567.1 Operation supplies and expenses (Nonmajor only).
This account shall include the cost of materials used and expenses
incurred in the operation of the transmission system.
1. Building service expenses.
2. Operating supplies, such as lubricants, commutator brushes, water,
and rubber goods.
3. Station meter and instrument supplies, such as ink and charts.
4. Station record and report forms.
5. Communication service.
6. First-aid supplies.
7. Tool expense.
8. Transportation expenses.
9. Meals, traveling, and incidental expenses.
568 Maintenance supervision and engineering (Major only).
This account shall include the cost of labor and expenses incurred in
the general supervision and direction of maintenance of the transmission
system. Direct field supervision of specific jobs shall be charged to
the appropriate maintenance account. (See operating expense instruction
1.)
569 Maintenance of structures (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in the maintenance of structures, the book cost of
which is includible in account 352, Structures and Improvements. (See
operating expense instruction 2.)
570 Maintenance of station equipment (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in maintenance of station equipment the book cost of
which is includible in account 353, Station Equipment. (See operating
expense instruction 2.)
571 Maintenance of overhead lines (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in maintenance of transmission plant, the book cost of
which is includible in accounts 354, Towers and Fixtures, 355, Poles and
Fixtures, 356, Overhead Conductors and Devices, 359, Roads and Trails.
(See operating expense instruction 2.)
1. Work of the following character on poles, towers and fixtures:
a. Installing or removing additional clamps or strain insulators on
guys in place.
b. Moving line or guy pole in relocation of the same pole or section
of line.
c. Painting poles, towers, crossarms or pole extensions.
d. Readjusting and changing position of guys or braces.
e. Realigning and straightening poles, cross arms braces, and other
pole fixtures.
f. Reconditioning reclaimed pole fixtures.
g. Relocating crossarms, racks, brackets, and other fixtures on
poles.
h. Repairing or realigning pins, racks, or brackets.
i. Repairing pole supported platform.
j. Repairs by others to jointly owned poles.
k. Shaving, cutting rot, or treating poles or crossarms in use or
salvaged for reuse.
l. Stubbing poles already in service.
m. Supporting fixtures and conductors and transferring them to new
pole during poles replacements.
n. Maintenance of pole signs, stencils, tags, etc.
2. Work of the following character on overhead conductors and
devices:
a. Overhauling and repairing line cutouts, line switches, line
breakers, etc.
b. Cleaning insulators and bushings.
c. Refusing cutouts.
d. Repairing line oil circuit breakers and associated relays and
control wiring.
e. Repairing grounds.
f. Resagging, retying, or rearranging position or spacing of
conductors.
g. Standing by phones, going to calls, cutting faulty lines clear, or
similar activities at times of emergencies.
h. Sampling, testing, changing, purifying, and replenishing
insulating oil.
i. Repairing line testing equipment.
j. Transferring loads, switching and reconnecting circuits and
equipment for maintenance purposes.
k. Trimming trees and clearing brush.
l. Chemical treatment of right of way areas when occurring subsequent
to construction of line.
3. Work of the following character on roads and trails:
a. Repairing roadway, bridges, etc.
b. Trimming trees and brush to maintain previous roadway clearance.
c. Snow removal from roads and trails.
d. Maintenance work on publicly owned roads and trails when done by
utility at its expense.
572 Maintenance of underground lines (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in maintenance of transmission plant, the book cost of
which is includible in accounts 357, Underground Conduit, and 358,
Underground Conductors and Devices. (See operating expense instruction
2.)
1. Work of the following character on underground conduit:
a. Cleaning ducts, manholes, and sewer connections.
b. Minor alterations of handholes, manholes, or vaults.
c. Refastening, repairing, or moving racks, ladders, or hangers in
manholes, or vaults.
d. Plugging and shelving or replugging ducts.
e. Repairs to sewers and drains, walls and floors, rings and covers.
2. Work of the following character on underground conductors and
devices:
a Repairing oil circuit breakers, switches, cutouts, and control
wiring.
b. Repairing grounds.
c. Retraining and reconnecting cables in manhole, including transfer
of cables from one duct to another.
d. Repairing conductors and splices.
e. Repairing or moving junction boxes and potheads.
f. Refireproofing of cables and repairing supports.
g. Repairing electrolysis preventive devices for cables.
h. Repairing cable bonding systems.
i. Sampling, testing, changing, purifying and replenishing insulating
oil.
j. Transferring loads, switching and reconnecting circuits and
equipment for maintenance purposes.
k. Repairing line testing equipment.
l. Repairs to oil or gas equipment in highvoltage cable system and
replacement of oil or gas.
573 Maintenance of miscellaneous transmission plant (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in maintenance of owned or leased plant which is
assignable to transmission operations and is not provided for elsewhere.
(See operating expense instruction 2.)
574 Maintenance of transmission plant (Nonmajor only).
This account shall include the cost of labor, materials used and
expenses incurred in the maintenance of transmission plant the book cost
of which is includible in plant accounts 351 to 359 inclusive. (See
operating expense instruction 2.)
1. Work of the following character on poles, towers and fixtures:
a. Installing or removing additional clamps or strain insulators on
guys in place.
b. Moving line or guy pole in relocation of the same pole or section
of line.
c. Painting poles, towers, crossarms or pole extensions.
d. Readjusting and changing position of guys or braces.
e. Realigning and straightening poles, crossarms, braces and other
pole fixtures.
f. Reconditioning reclaimed pole fixtures.
g. Relocating crossarms, racks, brackets, and other fixtures on
poles.
h. Repairing or realigning pins, racks, or brackets.
i. Repairing pole supported platform.
j. Repairs by others to jointly owned poles.
k. Shaving, cutting rot, or treating poles or crossarms in use or
salvaged for reuse.
l. Stubbing poles already in service.
m. Supporting fixtures and conductors and transferring them to new
pole during pole replacement.
n. Maintenance of pole signs, stencils, tags, etc.
2. Work of the following character on overhead conductors and
devices:
a. Overhauling and repairing line cutouts, line switches, line
breakers, etc.
b. Cleaning insulators and bushings.
c. Refusing cutouts.
d. Repairing line oil circuit breakers and associated relays and
control wiring.
e. Repairing grounds.
f. Resagging, retying, or rearranging position or spacing of
conductors.
g. Standing by phones, going to calls, cutting faulty lines clear, or
similar activities at times of emergencies.
h. Sampling, testing, changing, purifying, and replenishing
insulating oil.
i. Repairing line testing equipment.
j. Transferring loads, switching and reconnecting circuits and
equipment for maintenance purposes.
k. Trimming trees and clearing brush.
l. Chemical treatment of right of way areas when occurring subsequent
to construction of line.
3. Work of the following character on roads and trails:
a. Repairing roadway, bridges, etc.
b. Trimming trees and brush to maintain previous roadway clearance.
c. Snow removal from roads and trails.
d. Maintenance work on publicly owned roads and trails when done by
utility at its expense.
4. Work of the following character on underground conduit:
a. Cleaning ducts, manholes, and sewer connections.
b. Minor alterations of handholes, manholes, or vaults.
c. Refasting, repairing, or moving racks, ladders, or hangers in
manholes, or vaults.
d. Plugging and shelving or replugging ducts.
e. Repairs to sewers and drains, walls and floors, rings and covers.
5. Work of the following character on underground conductors and
devices:
a. Repairing oil circuit breakers, switches, cutouts, and control
wiring.
b. Repairing grounds.
c. Retraining and reconnecting cables in manhole, including transfer
of cables from one duct to another.
d. Repairing conductors and splices.
e. Repairing or moving junction boxes and potheads.
f. Refireproofing of cables and repairing supports.
g. Repairing electrolysis preventive devices for cables.
h. Repairing cable bonding systems.
i. Sampling, testing, changing, purifying and replenishing insulating
oil.
j. Transferring loads, switching and reconnecting circuits and
equipment for maintenance purposes.
k. Repairing line testing equipment.
l. Repairs to oil or gas equipment in high voltage cable system and
replacement of oil or gas.
580 Operation supervision and engineering.
This account shall include the cost of labor and expenses incurred in
the general supervision and direction of the operation of the
distribution system. Direct supervision of specific activities, such as
station operation, line operation, meter department operation, etc.,
shall be charged to the appropriate account. (For Major utilities, see
operating expense instruction 1.)
581 Load dispatching (Major only).
This account (the keeping of which is optional with the utility)
shall include the cost of labor, materials used and expenses incurred in
load dispatching operations pertaining to the distribution of
electricity.
Labor:
1. Directing switching.
2. Arranging and controlling clearances for construction,
maintenance, test and emergency purposes.
3. Controlling system voltages.
4. Preparing operating reports.
5. Obtaining reports on the weather and special events.
Expenses:
6. Communication service provided for system control purposes.
7. System record and report forms.
8. Meals, traveling and incidental expenses.
581.1 Line and station supplies and expenses (Nonmajor only).
582 Station expenses (Major only).
583 Overhead line expenses (Major only).
584 Underground line expenses (Major only).
Accounts 581.1 through 584 shall include, respectively, the cost of
labor, materials used and expenses incurred in the operation of overhead
and underground distribution lines and stations.
1. Supervising line operation.
2. Changing line transformer taps.
3. Inspecting and testing lightning arresters, line circuit breakers,
switches and grounds.
4. Inspecting and testing line transformers for the purpose of
determining load, temperature or operating performance.
5. Patrolling lines.
6. Load tests and voltages surveys of feeders, circuits and line
transformers.
7. Removing line transformers and voltage regulators with or without
replacements.
8. Installing line transformers or voltage regulators with or without
change in capacity provided that the first installation of these items
is included in account 368, Line transformers.
9. Voltage surveys, either routine or upon request of customers,
including voltage tests at customers' main switch.
10. Transferring loads, switching and reconnecting circuits and
equipment for operation purposes.
11. Electrolysis surveys.
12. Inspecting and adjusting line testing equipment.
13. Tool expenses.
14. Transportation expenses.
15. Meals, traveling and incidental expense.
16. Operating supplies, such as instrument charts, rubber goods, etc.
1. Supervising station operation.
2. Adjusting station equipment where such adjustment primarily
affects performance, such as regulating the flow of cooling water,
adjusting current in fields of a machine, changing voltage of regulators
or changing station transformer taps.
3. Keeping station log and records and preparing reports on station
operation.
4. Inspecting, testing and calibrating station equipment for the
purpose of checking its performance.
5. Operating switching and other station equipment.
6. Standing watch, guarding and patrolling station and station yard.
7. Sweeping, mopping and tidying station.
8. Care of grounds, including snow removal, cutting grass, etc.
9. Building service expenses.
10. Operating supplies, such as lubricants, commutator brushes, water
and rubber goods.
11. Station meter and instrument supplies, such as ink and charts.
12. Station record and report forms.
13. Tool expenses.
14. Transportation expenses.
15. Meals, traveling and incidental expenses.
Note (Major only): If the utility owns storage battery equipment
used for supplying electricity to customers in periods of emergency, the
cost of operating labor and of supplies, such as acid, gloves,
hydrometers, thermometers, soda, automatic cell fillers, acid proof
shoes, etc., shall be included in this account. If significant in
amount, a separate subdivision shall be maintained for such expenses.
585 Street lighting and signal system expenses.
A. For Nonmajor utilities, this account shall include the cost of
labor, materials used and expenses incurred in the operation of street
lighting and signal system plant.
B. For Major utilities, this account shall include the cost of labor,
materials used and expenses incurred in: (a) The operation of street
lighting and signal system plant which is owned or leased by the
utility; and (b) the operation and maintenance of such plant owned by
customers where such work is done regularly as a part of the street
lighting and signal system service.
Labor:
1. Supervising street lighting and signal systems operation.
2. Replacing lamps and incidental cleaning of glassware and fixtures
in connection therewith.
3. Routine patrolling for lamp outages, extraneous nuisances or
encroachments, etc.
4. Testing lines and equipment including voltage and current
measurement.
5. Winding and inspection of time switch and other controls.
Materials and Expenses:
6. Street lamp renewals.
7. Transportation and tool expense.
8. Meals, traveling, and incidental expenses.
586 Meter expenses.
This account shall include the cost of labor, materials used and
expenses incurred in the operation of customer meters and associated
equipment.
Labor:
1. Supervising meter operation.
2. Clerical work on meter history and associated equipment record
cards, test cards, and reports.
3. Disconnecting and reconnecting, removing and reinstalling, sealing
and unsealing meters and other metering equipment in connection with
initiating or terminating services including the cost of obtaining meter
readings, if incidental to such operation.
4. Consolidating meter installations due to elimination of separate
meters for different rates of service.
5. Changing or relocating meters, instrument transformers, time
switches, and other metering equipment.
6. Resetting time controls, checking operation of demand meters and
other metering equipment, when done as an independent operation.
7. Inspecting and adjusting meter testing equipment.
8. Inspecting and testing meters, instrument transformers, time
switches, and other metering equipment on premises or in shops excluding
inspecting and testing incidental to maintenance
Materials and Expenses:
9. Meter seals and miscellaneous meter supplies.
10. Transportation expenses.
11. Meals, traveling, and incidental expenses.
12. Tool expenses.
Note: The cost of the first setting and testing of a meter is
chargeable to utility plant account 370, Meters.
587 Customer installations expenses.
This account shall include the cost of labor, materials used and
expenses incurred in work on customer installations in inspecting
premises and in rendering services to customers of the nature of those
indicated by the list of items hereunder.
Labor:
1. Supervising customer installations work.
2. Inspecting premises, including check of wiring for code
compliance.
3. Investigating, locating, and clearing grounds on customers'
wiring.
4. Investigating service complaints, including load tests of motors
and lighting and power circuits on customers' premises; field
investigations of complaints on bills or of voltage.
5. Installing, removing, renewing, and changing lamps and fuses.
6. Radio, television and similar interference work including erection
of new aerials on customers' premises and patrolling of lines, testing
of lightning arresters, inspection of pole hardware, etc., and
examination on or off premises of customers' appliances, wiring, or
equipment to locate cause of interference.
7. Installing, connecting, reinstalling, or removing leased property
on customers' premises.
8. Testing, adjusting, and repairing customers' fixtures and
appliances in shop or on premises.
9. Cost of changing customers' equipment due to changes in service
characteristics.
10. Investigation of current diversion including setting and removal
of check meters and securing special readings thereon; special calls by
employees in connection with discovery and settlement of current
diversion; changes in customer wiring and any other labor cost
identifiable as caused by current diversion.
Materials and Expenses:
11. Lamp and fuse renewals.
12. Materials used in servicing customers' fixtures, appliances and
equipment.
13. Power, light, heat, telephone, and other expenses of appliance
repair department.
14. Tool expense.
15. Transportation expense, including pickup and delivery charges.
16. Meals, traveling and incidental expenses.
17. Rewards paid for discovery of current diversion.
Note A: Amounts billed customers for any work, the cost of which is
charged to this account, shall be credited to this account. Any excess
over costs resulting therefrom shall be transferred to account 451,
Miscellaneous Service Revenues.
Note B: Do not include in this account expenses incurred in
connection with merchandising, jobbing and contract work.
588 Miscellaneous distribution expenses.
This account shall include the cost of labor, materials used and
expenses incurred in distribution system operation not provided for
elsewhere.
Labor:
1. General records of physical characteristics of lines and
substations, such as capacities, etc.
2. Ground resistance records.
3. Joint pole maps and records.
4. Distribution system voltage and load records.
5. Preparing maps and prints.
6. Service interruption and trouble records.
7. General clerical and stenographic work except that chargeable to
account 586, Meter expenses.
Expenses:
8. Operating records covering poles, transformers, manholes, cables,
and other distribution facilities. Exclude meter records chargeable to
account 586. Meter Expenses and station records chargeable to account
582, Station Expenses (For Nonmajor utilities, account 581.1, Line and
Station Expenses), and stores records (For Nonmajor utilities, station
records) chargeable to account 163, Stores Expense Undistributed (For
Nonmajor utilities, account 581.1, Line and Station Expenses).
9. Janitor work at distribution office buildings including snow
removal, cutting grass, etc.
Materials and Expenses:
10. Communication service.
11. Building service expenses.
12. Miscellaneous office supplies and expenses, printing, and
stationery, maps and records and first-aid supplies.
13. Research, development, and demonstration expenses (Major only).
589 Rents.
This account shall include rents of property of others used,
occupied, or operated in connection with the distribution system,
including payments to the United States and others for the use and
occupancy of public lands and reservations for distribution line rights
of way. (See operating expense instruction 3.)
590 Maintenance supervision and engineering (Major only).
This account shall include the cost of labor and expenses incurred in
the general supervision and direction of maintenance of the distribution
system. Direct field supervision of specific jobs shall be charged to
the appropriate maintenance account. (See operating expense instruction
1.)
591 Maintenance of structures (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in maintenance of structures, the book cost of which
is includible in account 361, Structures and Improvements. (See
operating expense instruction 2.)
592 Maintenance of station equipment (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in maintenance of plant, the book cost of which is
includible in account 362, Station Equipment, and account 363, Storage
Battery Equipment. (See operating expense instruction 2.)
592.1 Maintenance of structures and equipment (Nonmajor only).
This account shall include the cost of labor, materials used and
expenses incurred in maintenance of structures, the book cost of which
is includible in account 361, Structures and Improvements, account 362,
Station Equipment, and account 363, Storage Battery Equipment. (See
operating expense instruction 2.)
593 Maintenance of overhead lines (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in the maintenance of overhead distribution line
facilities, the book cost of which is includible in account 364, Poles,
Towers and Fixtures, account 365, Overhead Conductors and Devices, and
account 369, Services. (See operating expense instruction 2.)
1. Work of the following character on poles, towers, and fixtures:
a. Installing additional clamps or removing clamps or strain
insulators on guys in place.
b. Moving line or guy pole in relocation of pole or section of line.
c. Painting poles, towers, crossarms, or pole extensions.
d. Readjusting and changing position of guys or braces.
e. Realigning and straightening poles, crossarms, braces, pins,
racks, brackets, and other pole fixtures.
f. Reconditioning reclaimed pole fixtures.
g. Relocating crossarms, racks, brackets, and other fixtures on
poles.
h. Repairing pole supported platform.
i. Repairs by others to jointly owned poles.
j. Shaving, cutting rot, or treating poles or crossarms in use or
salvaged for reuse.
k. Stubbing poles already in service.
l. Supporting conductors, transformers, and other fixtures and
transferring them to new poles during pole replacements.
m. Maintaining pole signs, stencils, tags, etc.
2. Work of the following character on overhead conductors and
devices:
a. Overhauling and repairing line cutouts, line switches, line
breakers, and capacitor installations.
b. Cleaning insulators and bushings.
c. Refusing line cutouts.
d. Repairing line oil circuit breakers and associated relays and
control wiring.
e. Repairing grounds.
f. Resagging, retying, or rearranging position or spacing of
conductors.
g. Standing by phones, going to calls, cutting faulty lines clear, or
similar activities at times of emergency.
h. Sampling, testing, changing, purifying, and replenishing
insulating oil.
i. Transferring loads, switching, and reconnecting circuits and
equipment for maintenance purposes.
j. Repairing line testing equipment.
k. Trimming trees and clearing brush.
l. Chemical treatment of right of way area when occurring subsequent
to construction of line.
3. Work of the following character on overhead services:
a. Moving position of service either on pole or on customers'
premises.
b. Pulling slack in service wire.
c. Retying service wire.
d. Refastening or tightening service bracket.
594 Maintenance of underground lines (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in the maintenance of underground distribution line
facilities, the book cost of which is includible in account 366,
Underground Conduit, account 367, Underground Conductors and Devices,
and account 369, Services. (See operating expense instruction 2.)
1. Work of the following character on underground conduit:
a. Cleaning ducts, manholes, and sewer connections.
b. Moving or changing position of conduit or pipe.
c. Minor alterations of handholes, manholes, or vaults.
d. Refastening, repairing, or moving racks, ladders, or hangers in
manholes or vaults.
e. Plugging and shelving ducts.
f. Repairs to sewers, drains, walls, and floors, rings and covers.
2. Work of the following character on underground conductors and
devices:
a. Repairing circuit breakers, switches, cutouts, network protectors,
and associated relays and control wiring.
b. Repairing grounds.
c. Retraining and reconnecting cables in manholes including transfer
of cables from one duct to another.
d. Repairing conductors and splices.
e. Repairing or moving junction boxes and potheads.
f. Refireproofing cables and repairing supports.
g. Repairing electrolysis preventive devices for cables.
h. Repairing cable bonding systems.
i. Sampling, testing, changing, purifying and replenishing insulating
oil.
j. Transferring loads, switching and reconnecting circuits and
equipment for maintenance purposes.
k. Repairing line testing equipment.
l. Repairing oil or gas equipment in high voltage cable systems and
replacement of oil or gas.
3. Work of the following character on underground services:
a. Cleaning ducts.
b. Repairing any underground service plant.
594.1 Maintenance of lines (Nonmajor only).
This account shall include the cost of labor, materials used and
expenses incurred in the maintenance of distribution line facilities,
the book cost of which is includible in account 364, Poles, Towers and
Fixtures, account 365, Overhead Conductors and Devices, account 366,
Underground Conduit, account 367, Underground Conductors and Devices,
and account 369, Services. (See operating expense instruction 2.)
1. Work of the following character on poles, towers, and fixtures:
a. Installing additional clamps or removing clamps or strain
insulators on guys in place.
b. Moving line or guy pole in relocation of pole or section of line.
c. Painting poles, towers, crossarms, or pole extensions.
d. Readjusting and changing position of guys or braces.
e. Realigning and straightening poles, crossarms, braces, pins,
racks, brackets, and other pole fixtures.
f. Reconditioning reclaimed pole fixtures.
g. Relocating crossarms, racks, brackets, and other fixtures on pole.
h. Repairing pole supported platform.
i. Repairs by others to jointly owned poles.
j. Shaving, cutting rot, or treating poles or crossarms in use or
salvage for reuse.
k. Stubbing poles already in service.
l. Supporting conductors, transformers, and other fixtures and
transferring them to new poles during pole replacement.
m. Maintaining pole signs, stencils, tags, etc.
2. Work of the following character on overhead conductors and
devices:
a. Overhauling and repairing line cutouts, line switches, line
breakers, and capacitor installations.
b. Cleaning insulators and bushings.
c. Refusing line cutouts.
d. Repairing line oil circuit breakers and associated relays and
control wiring.
e. Repairing grounds.
f. Resagging, retying, or rearranging position or spacing of
conductors.
g. Standing by phones, going to calls, cutting faulting lines clear,
or similar activities at times of emergencies.
h. Sampling, testing, changing, purifying, and replenishing
insulating oil.
i. Transferring loads, switching, and reconnecting circuits and
equipment for maintenance purposes.
j. Repairing line testing equipment.
k. Trimming trees and clearing brush.
l. Chemical treatment of right of way area when occurring subsequent
to construction of line.
3. Work of the following character on underground conduit:
a. Cleaning ducts, manholes, and sewer connections.
b. Moving or changing position of conduit or pipe.
c. Minor alterations of handholes, manholes, or vaults.
d. Refastening, repairing or moving racks, ladders, or hangers in
manholes or vaults.
e. Plugging and shelving ducts.
f. Repairs to sewers, drains, walls and floors, rings and covers.
4. Work of the following character on underground conductors and
devices:
a. Repairing circuit breakers, switches, cutouts, network protectors,
and associated relays and control wiring.
b. Repairing grounds.
c. Retraining and reconnecting cables in manhole including transfer
of cables from one duct to another.
d. Repairing conductors and splices.
e. Repairing or moving junction boxes and potheads.
f. Refireproofing cables and repairing supports.
g. Repairing electrolysis preventive devices for cables.
h. Repairing cable bonding systems.
i. Sampling, testing, changing, purifying and replenishing insulating
oil.
j. Transferring loads, switching and reconnecting circuits and
equipment for maintenance purposes.
k. Repairing line testing equipment.
l. Repairing oil or gas equipment in high voltage cable system and
replacement of oil or gas.
5. Work of the following character on services:
a. Moving position of service either on pole or on customers'
premises.
b. Pulling slack in service wire.
c. Retying service wire.
d. Refastening or tightening service bracket.
e. Cleaning ducts.
595 Maintenance of line transformers.
This account shall include the cost of labor, materials used and
expenses incurred in maintenance of distribution line transformers, the
book cost of which is includible in account 368, Line Transformers.
(See operating expense instruction 2.)
596 Maintenance of street lighting and signal systems.
This account shall include the cost of labor, materials used and
expenses incurred in maintenance of plant, the book cost of which is
includible in account 373, Street Lighting and Signal Systems. (See
operating expense instruction 2.)
597 Maintenance of meters.
This account shall include the cost of labor, materials used and
expenses incurred in the maintenance of meters and meter testing
equipment, the book cost of which is includible in account 370, Meters,
and account 395, Laboratory Equipment, respectively. (See operating
expense instruction 2.)
598 Maintenance of miscellaneous distribution plant.
This account shall include the cost of labor, materials used and
expenses incurred in maintenance of plant, the book cost of which is
includible in accounts 371, Installations on Customers' Premises, and
372, Leased Property on Customers' Premises, and any other plant the
maintenance of which is assignable to the distribution function and is
not provided for elsewhere. (See operating expense instruction 2.)
a. Work of similar nature to that listed in other distribution
maintenance accounts.
b. Maintenance of office furniture and equipment used by distribution
system department.
901 Supervision (Major only).
This account shall include the cost of labor and expenses incurred in
the general direction and supervision of customer accounting and
collecting activities. Direct supervision of a specific activity shall
be charged to account 902, Meter Reading Expenses, or account 903,
Customer Records and Collection Expenses, as appropriate. (See
operating expense instruction 1.)
902 Meter reading expenses.
This account shall include the cost of labor, materials used and
expenses incurred in reading customer meters, and determining
consumption when performed by employees engaged in reading meters.
Labor:
1. Addressing forms for obtaining meter readings by mail.
2. Changing and collecting meter charts used for billing purposes.
3. Inspecting time clocks, checking seals, etc., when performed by
meter readers and the work represents a minor activity incidental to
regular meter reading routine.
4. Reading meters, including demand meters, and obtaining load
information for billing purposes. Exclude and charge to account 586,
Meter Expenses, or to account 903, Customer Records and Collection
Expenses, as applicable, the cost of obtaining meter readings, first and
final, if incidental to the operation of removing or resetting, sealing,
or locking, and disconnecting or reconnecting meters.
5. Computing consumption from meter reader's book or from reports by
mail when done by employees engaged in reading meters.
6. Collecting from prepayment meters when incidental to meter
reading.
7. Maintaining record of customers' keys.
8. Computing estimated or average consumption when performed by
employees engaged in reading meters.
Materials and Expenses:
9. Badges, lamps, and uniforms.
10. Demand charts, meter books and binders and forms for recording
readings, but not the cost of preparation.
11. Postage and supplies used in obtaining meter readings by mail.
12. Transportation, meals, and incidental expenses.
903 Customer records and collection expenses.
This account shall include the cost of labor, materials used and
expenses incurred in work on customer applications, contracts, orders,
credit investigations, billing and accounting, collections and
complaints.
Labor:
1. Receiving, preparing, recording and handling routine orders for
service, disconnections, transfers or meter tests initiated by the
customer, excluding the cost of carrying out such orders, which is
chargeable to the account appropriate for the work called for by such
orders.
2. Investigations of customers' credit and keeping of records
pertaining thereto, including records of uncollectible accounts written
off.
3. Receiving, refunding or applying customer deposits and maintaining
customer deposit, line extension, and other miscellaneous records.
4. Checking consumption shown by meter readers' reports where
incidental to preparation of billing data.
5. Preparing address plates and addressing bills and delinquent
notices.
6. Preparing billing data.
7. Operating billing and bookkeeping machines.
8. Verifying billing records with contracts or rate schedules.
9. Preparing bills for delivery, and mailing or delivering bills.
10. Collecting revenues, including collection from prepayment meters
unless incidental to meter-reading operations.
11. Balancing collections, preparing collections for deposit, and
preparing cash reports.
12. Posting collections and other credits or charges to customer
accounts and extending unpaid balances.
13. Balancing customer accounts and controls.
14. Preparing, mailing, or delivering delinquent notices and
preparing reports of delinquent accounts.
15. Final meter reading of delinquent accounts when done by
collectors incidental to regular activities.
16. Disconnecting and reconnecting service because of nonpayment of
bills.
17. Receiving, recording, and handling of inquiries, complaints, and
requests for investigations from customers, including preparation of
necessary orders, but excluding the cost of carrying out such orders,
which is chargeable to the account appropriate for the work called for
by such orders.
18. Statistical and tabulating work on customer accounts and
revenues, but not including special analyses for sales department, rate
department, or other general purposes, unless incidental to regular
customer accounting routines.
19. Preparing and periodically rewriting meter reading sheets.
20. Determining consumption and computing estimated or average
consumption when performed by employees other than those engaged in
reading meters.
Materials and Expenses:
21. Address plates and supplies.
22. Cash overages and shortages.
23. Commissions or fees to others for collecting.
24. Payments to credit organizations for investigations and reports.
25. Postage.
26. Transportation expenses (Major only), including transportation of
customer bills and meter books under centralized billing procedure.
27. Transportation, meals, and incidental expenses.
28. Bank charges, exchange, and other fees for cashing and depositing
customers' checks.
29. Forms for recording orders for services removals, etc.
30. Rent of mechanical equipment.
31. Communication service (Nonmajor only).
32. Miscellaneous office supplies and expenses and stationery and
printing (Nonmajor only).
Note: The cost of work on meter history and meter location records
is chargeable to account 586, Meter Expenses.
904 Uncollectible accounts.
This account shall be charged with amounts sufficient to provide for
losses from uncollectible utility revenues. Concurrent credits shall be
made to account 144, Accumulated Provision for Uncollectible Accounts --
Cr. Losses from uncollectible accounts shall be charged to account 144.
905 Miscellaneous customer accounts expenses (Major only).
This account shall include the cost of labor, materials used and
expenses incurred not provided for in other accounts.
Labor:
1. General clerical and stenographic work.
2. Miscellaneous labor.
Materials and Expenses:
3. Communication service.
4. Miscellaneous office supplies and expenses and stationery and
printing other than those specifically provided for in accounts 902 and
903.
906 Customer service and informational expenses (Nonmajor only).
This account shall include the cost of supervision, labor, and
expenses incurred in customer service and informational activities, the
purpose of which is to encourage safe and efficient use of the utility's
service, to encourage conservation of the utility's service, and to
assist present customers in answering specific inquiries as to the
proper and economic use of the utility's service and the customer's
equipment utilizing the service.
907 Supervision (Major only).
This account shall include the cost of labor and expenses incurred in
the general direction and supervision of customer service activities,
the object of which is to encourage safe, efficient and economical use
of the utility's service. Direct supervision of a specific activity
within customer service and informational expense classification shall
be charged to the account wherein the costs of such activity are
included. (See operating expense instruction 1.)
908 Customer assistance expenses (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in providing instructions or assistance to customers,
the object of which is to encourage safe, efficient and economical use
of the utility's service.
Labor:
1. Direct supervision of department.
2. Processing customer inquiries relating to the proper use of
electric equipment, the replacement of such equipment and information
related to such equipment.
3. Advice directed to customers as to how they may achieve the most
efficient and safest use of electric equipment.
4. Demonstrations, exhibits, lectures, and other programs designed to
instruct customers in the safe, economical or efficient use of electric
service, and/or oriented toward conservation of energy.
5. Engineering and technical advice to customers, the object of which
is to promote safe, efficient and economical use of the utility's
service.
Materials and Expenses:
6. Supplies and expenses pertaining to demonstrations, exhibits,
lectures, and other programs.
7. Loss in value on equipment and appliances used for customer
assistance programs.
8. Office supplies and expenses.
9. Transportation, meals, and incidental expenses.
Note. -- Do not include in this account expenses that are provided
for elsewhere, such as accounts 416, Costs and Expenses of
Merchandising, Jobbing and Contract Work, 587, Customer Installations
Expenses, and 912, Demonstrating and Selling Expenses.
909 Informational and instructional advertising expenses (Major
only).
This account shall include the cost of labor, materials used and
expenses incurred in activities which primarily convey information as to
what the utility urges or suggests customers should do in utilizing
electric service to protect health and safety, to encourage
environmental protection, to utilize their electric equipment safely and
economically, or to conserve electric energy.
Labor:
1. Direct supervision of informational activities.
2. Preparing informational materials for newspapers, periodicals,
billboards, etc., and preparing and conducting informational motion
pictures, radio and television programs.
3. Preparing informational booklets, bulletins, etc., used in direct
mailings.
4. Preparing informational window and other displays.
5. Employing agencies, selecting media and conducting negotiations in
connection with the placement and subject matter of information
programs.
Materials and Expenses:
6. Use of newspapers, periodicals, billboards, radio, etc., for
informational purposes.
7. Postage on direct mailings to customers exclusive of postage
related to billings.
8. Printing of informational booklets, dodgers, bulletins, etc.
9. Supplies and expenses in preparing informational materials by the
utility.
10. Office supplies and expenses.
Note A: Exclude from this account and charge to account 930.2,
Miscellaneous General Expenses, the cost of publication of stockholder
reports, dividend notices, bond redemption notices, financial
statements, and other notices of a general corporate character. Exclude
also all expenses of a promotional, institutional, goodwill or political
nature, which are includible in such accounts as 913, Advertising
Expenses, 930.1, General Advertising Expenses, and 426.4, Expenditures
for Certain Civic, Political and Related Activities.
Note B: Entries relating to informational advertising included in
this account shall contain or refer to supporting documents which
identify the specific advertising message. If references are used,
copies of the advertising message shall be readily available.
910 Miscellaneous customer service and informational expenses (Major
only).
This account shall include the cost of labor, materials used and
expenses incurred in connection with customer service and informational
activities which are not includible in other customer information
expense accounts.
Labor:
1. General clerical and stenographic work not assigned to specific
customer service and informational programs.
2. Miscellaneous labor.
Materials and Expenses:
3. Communication service.
4. Printing, postage and office supplies expenses.
911 Supervision (Major only).
This account shall include the cost of labor and expenses incurred in
the general direction and supervision of sales activities, except
merchandising. Direct supervision of a specific activity, such as
demonstrating, selling, or advertising shall be charged to the account
wherein the costs of such activity are included. (See operating expense
instruction 1.)
912 Demonstrating and selling expenses (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in promotional, demonstrating, and selling activities,
except by merchandising, the object of which is to promote or retain the
use of utility services by present and prospective customers.
Labor:
1. Demonstrating uses of utility services.
2. Conducting cooking schools, preparing recipes, and related home
service activities.
3. Exhibitions, displays, lectures, and other programs designed to
promote use of utility services.
4. Experimental and development work in connection with new and
improved appliances and equipment, prior to general public acceptance.
5. Solicitation of new customers or of additional business from old
customers, including commissions paid employees.
6. Engineering and technical advice to present or prospective
customers in connection with promoting or retaining the use of utility
services.
7. Special customer canvasses when their primary purpose is the
retention of business or the promotion of new business.
Materials and Expenses:
8. Supplies and expenses pertaining to demonstration, and
experimental and development activities.
9. Booth and temporary space rental.
10. Loss in value on equipment and appliances used for demonstration
purposes.
11. Transportation, meals, and incidental expenses.
913 Advertising expenses (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in advertising designed to promote or retain the use
of utility service, except advertising the sale of merchandise by the
utility.
Labor:
1. Direct supervision of department.
2. Preparing advertising material for newspapers, periodicals,
billboards, etc., and preparing and conducting motion pictures, radio
and television programs.
3. Preparing booklets, bulletins, etc., used in direct mail
advertising.
4. Preparing window and other displays.
5. Clerical and stenographic work.
6. Investigating advertising agencies and media and conducting
negotiations in connection with the placement and subject matter of
sales advertising.
Materials and expenses:
7. Advertising in newspapers, periodicals, billboards, radio, etc.,
for sales promotion purposes, but not including institutional or
goodwill advertising includible in account 930.1, General Advertising
Expenses.
8. Materials and services given as prizes or otherwise in connection
with civic lighting contests, canning, or cooking contests, bazaars,
etc., in order to publicize and promote the use of utility services.
9. Fees and expenses of advertising agencies and commercial artists.
10. Novelties for general distribution.
11. Postage on direct mail advertising.
12. Premiums distributed generally, such as recipe books, etc., when
not offered as inducement to purchase appliances.
13. Printing booklets, dodgers, bulletins, etc.
14. Supplies and expenses in preparing advertising material.
15. Office supplies and expenses.
Note A: The cost of advertisements which set forth the value or
advantages of utility service without reference to specific appliances
or, if reference is made to appliances invites the reader to purchase
appliances from his dealer or refer to appliances not carried for sale
by the utility, shall be considered sales promotion advertising and
charged to this account. However, advertisements which are limited to
specific makes of appliances sold by the utility and prices, terms,
etc., thereof, without referring to the value or advantages of utility
service, shall be considered as merchandise advertising and the cost
shall be charged to Costs and Expenses of Merchandising, Jobbing and
Contract Work, Account 416.
Note B: Advertisements which substantially mention or refer to the
value or advantages of utility service, together with specific reference
to makes of appliances sold by the utility and the price, terms, etc.,
thereof and designed for the joint purpose of increasing the use of
utility service and the sales of appliances, shall be considered as a
combination advertisement and the costs shall be distributed between
this account and Account 416 on the basis of space, time, or other
proportional factors.
Note C: Exclude from this account and charge to Account 930.2,
Miscellaneous General Expenses, the cost of publication of stockholder
reports, dividend notices, bond redemption notices, financial
statements, and other notices of a general corporate character. Exclude
also all institutional or goodwill advertising. (See Account 930.1,
General Advertising Expenses.)
916 Miscellaneous sales expenses (Major only).
This account shall include the cost of labor, materials used and
expenses incurred in connection with sales activities, except
merchandising, which are not includible in other sales expense accounts.
Labor:
1. General clerical and stenographic work not assigned to specific
functions.
2. Special analysis of customer accounts and other statistical work
for sales purposes not a part of the regular customer accounting and
billing routine.
3. Miscellaneous labor.
Materials and Expenses:
4. Communication service.
5. Printing, postage, and office supplies and expenses applicable to
sales activities, except those chargeable to account 913, Advertising
Expenses.
917 Sales expenses (Nonmajor only).
This account shall include the cost of labor and expenses incurred
for the purpose of promoting the sale of electricity, other than
merchandising, jobbing or contract work activities.
1. Advertising.
2. Demonstrating uses of utility service.
3. Home service activities.
4. Solicitation of new business.
920 Administrative and general salaries.
A. This account shall include the compensation (salaries, bonuses,
and other consideration for services, but not including directors' fees)
of officers, executives, and other employees of the utility properly
chargeable to utility operations and not chargeable directly to a
particular operating function.
B. This account may be subdivided in accordance with a classification
appropriate to the departmental or other functional organization of the
utility.
921 Office supplies and expenses.
A. This account shall include office supplies and expenses incurred
in connection with the general administration of the utility's
operations which are assignable to specific administrative or general
departments and are not specifically provided for in other accounts.
This includes the expenses of the various administrative and general
departments, the salaries and wages of which are includible in account
920.
B. This account may be subdivided in accordance with a classification
appropriate to the departmental or other functional organization of the
utility.
Note: Office expenses which are clearly applicable to any group of
operating expenses other than the administrative and general group shall
be included in the appropriate account in such group. Further, general
expenses which apply to the utility as a whole rather than to a
particular administrative function shall be included in account 930.2,
Miscellaneous General Expenses.
1. Automobile service, including charges through clearing account.
2. Bank messenger and service charges.
3. Books, periodicals, bulletins and subscriptions to newspapers,
newsletters, tax services, etc.
4. Building service expenses for customer accounts, sales, and
administrative and general purposes.
5. Communication service expenses.
6. Cost of individual items of office equipment used by general
departments which are of small value or short life.
7. Membership fees and dues in trade, technical, and professional
associations paid by a utility for employees. (Company memberships are
includible in account 930.2.)
8. Office supplies and expenses.
9. Payment of court costs, witness fees and other expenses of legal
department.
10. Postage, printing and stationery.
11. Meals, traveling and incidental expenses.
922 Administrative expenses transferred -- Credit.
This account shall be credited with administrative expenses recorded
in accounts 920 and 921 which are transferred to construction costs or
to nonutility accounts. (See electric plant instruction 4.)
923 Outside services employed.
A. This account shall include the fees and expenses of professional
consultants and others for general services which are not applicable to
a particular operating function or to other accounts. It shall include
also the pay and expenses of persons engaged for a special or temporary
administrative or general purpose in circumstances where the person so
engaged is not considered as an employee of the utility.
B. This account shall be so maintained as to permit ready
summarization according to the nature of service and the person
furnishing the same.
1. Fees, pay and expenses of accountants and auditors, actuaries,
appraisers, attorneys, engineering consultants, management consultants,
negotiators, public relations counsel, tax consultants, etc.
2. Supervision fees and expenses paid under contracts for general
management services.
Note: Do not include inspection and brokerage fees and commissions
chargeable to other accounts or fees and expenses in connection with
security issues which are includible in the expenses of issuing
securities.
924 Property insurance.
A. This account shall include the cost of insurance or reserve
accruals to protect the utility against losses and damages to owned or
leased property used in its utility operations. It shall include also
the cost of labor and related supplies and expenses incurred in property
insurance activities.
B. Recoveries from insurance companies or others for property damages
shall be credited to the account charged with the cost of the damage.
If the damaged property has been retired, the credit shall be to the
appropriate account for accumulated provision for depreciation.
C. Records shall be kept so as to show the amount of coverage for
each class of insurance carried, the property covered, and the
applicable premiums. Any dividends distributed by mutual insurance
companies shall be credited to the accounts to which the insurance
premiums were charged.
1. Premiums payable to insurance companies for fire, storm, burglary,
boiler explosion, lightning, fidelity, riot, and similar insurance.
2. Amounts credited to account 228.1, Accumulated Provision for
Property Insurance, for similar protection.
3. Special costs incurred in procuring insurance.
4. Insurance inspection service.
5. Insurance counsel, brokerage fees, and expenses.
Note A: The cost of insurance or reserve accruals capitalized shall
be charged to construction either directly or by transfer to
construction work orders from this account.
Note B: The cost of insurance or reserve accruals for the following
classes of property shall be charged as indicated.
(1) Materials and supplies and stores equipment, to account 163,
Stores Expense Undistributed (store expenses in the case of Nonmajor
utilities), or appropriate materials account.
(2) For Major Utilities, transportation and other general equipment
to appropriate clearing accounts that may be maintained. For Nonmajor
utilities, transportation and garage equipment, to account 933,
Transportation Expenses.
(3) Electric plant leased to others, to account 413, Expenses of
Electric Plant Leased to Others.
(4) Nonutility property, to the appropriate nonutility income
account.
(5) Merchandise and jobbing property, to Account 416, Costs and
Expenses of Merchandising, Jobbing and Contract Work.
Note C (Major only): The cost of labor and related supplies and
expenses of administrative and general employees who are only
incidentally engaged in property insurance work may be included in
accounts 920 and 921, as appropriate.
925 Injuries and damages.
A. This account shall include the cost of insurance or reserve
accruals to protect the utility against injuries and damages claims of
employees or others, losses of such character not covered by insurance,
and expenses incurred in settlement of injuries and damages claims. For
Major utilities, it shall also include the cost of labor and related
supplies and expenses incurred in injuries and damages activities.
B. Reimbursements from insurance companies or others for expenses
charged hereto on account of injuries and damages and insurance
dividends or refunds shall be credited to this account.
1. Premiums payable to insurance companies for protection against
claims from injuries and damages by employees or others, such as public
liability, property damages, casualty, employee liability, etc., and
amounts credited to account 228.2, Accumulated Provision for Injuries
and Damages, for similar protection.
2. Losses not covered by insurance or reserve accruals on account of
injuries or deaths to employees or others and damages to the property of
others.
3. Fees and expenses of claim investigators.
4. Payment of awards to claimants for court costs and attorneys'
services.
5. Medical and hospital service and expenses for employees as the
result of occupational injuries, or resulting from claims of others.
6. Compensation payments under workmen's compensation laws.
7. Compensation paid while incapacitated as the result of
occupational injuries. (See Note A.)
8. Cost of safety, accident prevention and similar educational
activities.
Note A: Payments to or in behalf of employees for accident or death
benefits, hospital expenses, medical supplies or for salaries while
incapacitated for service or on leave of absence beyond periods normally
allowed, when not the result of occupational injuries, shall be charged
to account 926, Employee Pensions and Benefits. (See also Note B of
account 926.)
Note B: The cost of injuries and damages or reserve accruals
capitalized shall be charged to construction directly or by transfer to
construction work orders from this account.
Note C: Exclude herefrom the time and expenses of employees (except
those engaged in injuries and damages activities) spent in attendance at
safety and accident prevention educational meetings, if occurring during
the regular work period.
Note D: The cost of labor and related supplies and expenses of
administrative and general employees who are only incidentally engaged
in injuries and damages activities may be included in accounts 920 and
921, as appropriate.
926 Employee pensions and benefits.
A. This account shall include pensions paid to or on behalf of
retired employees, or accruals to provide for pensions, or payments for
the purchase of annuities for this purpose, when the utility has
definitely, by contract, committed itself to a pension plan under which
the pension funds are irrevocably devoted to pension purposes, and
payments for employee accident, sickness, hospital, and death benefits,
or insurance therefor. Include, also, expenses incurred in medical,
educational or recreational activities for the benefit of employees, and
administrative expenses in connection with employee pensions and
benefits.
B. The utility shall maintain a complete record of accruals or
payments for pensions and be prepared to furnish full information to the
Commission of the plan under which it has created or proposes to create
a pension fund and a copy of the declaration of trust or resolution
under which the pension plan is established.
C. There shall be credited to this account the portion of pensions
and benefits expenses which is applicable to nonutility operations or
which is charged to construction unless such amounts are distributed
directly to the accounts involved and are not included herein in the
first instance.
D. For Major utilities, records in support of this account shall be
so kept that the total pensions expense, the total benefits expense, the
administrative expenses included herein, and the amounts of pensions and
benefits expenses transferred to construction or other accounts will be
readily available.
1. Payment of pensions under a nonaccrual or nonfunded basis.
2. Accruals for or payments to pension funds or to insurance
companies for pension purposes.
3. Group and life insurance premiums (credit dividends received).
4. Payments for medical and hospital services and expenses of
employees when not the result of occupational injuries.
5. Payments for accident, sickness, hospital, and death benefits or
insurance.
6. Payments to employees incapacitated for service or on leave of
absence beyond periods normally allowed, when not the result of
occupational injuries, or in excess of statutory awards.
7. Expenses in connection with educational and recreational
activities for the benefit of employees.
Note A: The cost of labor and related supplies and expenses of
administrative and general employees who are only incidentally engaged
in employee pension and benefit activities may be included in accounts
920 and 921, as appropriate.
Note B: Salaries paid to employees during periods of nonoccupational
sickness may be charged to the appropriate labor account rather than to
employee benefits.
927 Franchise requirements.
A. This account shall include payments to municipal or other
governmental authorities, and the cost of materials, supplies and
services furnished such authorities without reimbursement in compliance
with franchise, ordinance, or similar requirements; provided, however,
that the utility may charge to this account at regular tariff rates,
instead of cost, utility service furnished without charge under
provisions of franchises.
B. When no direct outlay is involved, concurrent credit for such
charges shall be made to account 929, Duplicate Charges -- Credit.
C. The account shall be maintained so as to readily reflect the
amounts of cash outlays, utility service supplied without charge, and
other items furnished without charge.
Note A: Franchise taxes shall not be charged to this account but to
account 408.1, Taxes Other Than Income Taxes, Utility Operating Income.
Note B: Any amount paid as initial consideration for a franchise
running for more than one year shall be charged to account 302,
Franchises and Consents.
928 Regulatory commission expenses.
A. This account shall include all expenses (except pay of regular
employees only incidentally engaged in such work) properly includible in
utility operating expenses, incurred by the utility in connection with
formal cases before regulatory commissions, or other regulatory bodies,
or cases in which such a body is a party, including payments made to a
regulatory commission for fees assessed against the utility for pay and
expenses of such commission, its officers, agents, and employees, and
also including payments made to the United States for the administration
of the Federal Power Act.
B. Amounts of regulatory commission expenses which by approval or
direction of the Commission are to be spread over future periods shall
be charged to account 186, Miscellaneous Deferred Debits, and amortized
by charges to this account.
C. The utility shall be prepared to show the cost of each formal
case.
1. Salaries, fees, retainers, and expenses of counsel, solicitors,
attorneys, accountants, engineers, clerks, attendants, witnesses, and
others engaged in the prosecution of, or defense against petitions or
complaints presented to regulatory bodies, or in the valuation of
property owned or used by the utility in connection with such cases.
2. Office supplies and expenses, payments to public service or other
regulatory commissions, stationery and printing, traveling expenses, and
other expenses incurred directly in connection with formal cases before
regulatory commissions.
Note A: Exclude from this account and include in other appropriate
operating expense accounts, expenses incurred in the improvement of
service, additional inspection, or rendering reports, which are made
necessary by the rules and regulations, or orders, of regulatory bodies.
Note B: Do not include in this account amounts includible in account
302, Franchises and Consents, account 181, Unamortized Debt Expense, or
account 214, Capital Stock Expense.
929 Duplicate charges -- Credit.
This account shall include concurrent credits for charges which may
be made to operating expenses or to other accounts for the use of
utility service from its own supply. Include, also, offsetting credits
for any other charges made to operating expenses for which there is no
direct money outlay.
930.1 General advertising expenses.
This account shall include the cost of labor, materials used, and
expenses incurred in advertising and related activities, the cost of
which by their content and purpose are not provided for elsewhere.
Labor:
1. Supervision.
2. Preparing advertising material for newspapers, periodicals,
billboards, etc., and preparing or conducting motion pictures, radio and
television programs.
3. Preparing booklets, bulletins, etc., used in direct mail
advertising.
4. Preparing window and other displays.
5. Clerical and stenographic work.
6. Investigating and employing advertising agencies, selecting media
and conducting negotiations in connection with the placement and subject
matter of advertising.
Materials and Expenses:
7. Advertising in newspapers, periodicals, billboards, radio, etc.
8. Advertising matter such as posters, bulletins, booklets, and
related items.
9. Fees and expenses of advertising agencies and commercial artists.
10. Postage and direct mail advertising.
11. Printing of booklets, dodgers, bulletins, etc.
12. Supplies and expenses in preparing advertising materials.
13. Office supplies and expenses.
Note A: Properly includible in this account is the cost of
advertising activities on a local or national basis of a good will or
institutional nature, which is primarily designed to improve the image
of the utility or the industry, including advertisements which inform
the public concerning matters affecting the company's operations, such
as, the cost of providing service, the company's efforts to improve the
quality of service, the company's efforts to improve and protect the
environment, etc. Entries relating to advertising included in this
account shall contain or refer to supporting documents which identify
the specific advertising message. If references are used, copies of the
advertising message shall be readily available.
Note B: Exclude from this account and include in account 426.4,
Expenditures for Certain Civic, Political and Related Activities,
expenses for advertising activities, which are designed to solicit
public support or the support of public officials in matters of a
political nature.
930.2 Miscellaneous general expenses.
This account shall include the cost of labor and expenses incurred in
connection with the general management of the utility not provided for
elsewhere.
Labor:
1. Miscellaneous labor not elsewhere provided for.
Expenses:
2. Industry association dues for company memberships.
3. Contributions for conventions and meetings of the industry.
4. For Major utilities, research, development, and demonstration
expenses not charged to other operation and maintenance expense accounts
on a functional basis.
5. Communication service not chargeable to other accounts.
6. Trustee, registrar, and transfer agent fees and expenses.
7. Stockholders meeting expenses.
8. Dividend and other financial notices.
9. Printing and mailing dividend checks.
10. Directors' fees and expenses.
11. Publishing and distributing annual reports to stockholders.
12. Public notices of financial, operating and other data required by
regulatory statutes, not including, however, notices required in
connection with security issues or acquisitions of property. For
Nonmajor utilities, transportation and garage equipment, to account 933,
Transportation Expenses.
931 Rents.
This account shall include rents properly includible in utility
operating expenses for the property of others used, occupied, or
operated in connection with the customer accounts, customer service and
informational, sales, and general and administrative functions of the
utility. (See operating expense instruction 3.)
933 Transportation expenses (Nonmajor only).
A. This account shall include the cost of labor, materials used and
expenses incurred in the operation and maintenance of general
transportation equipment of the utility.
B. This account may be used as a clearing account in which event the
charges hereto shall be cleared by apportionment to the appropriate
operating expense, electric plant, or other accounts on a basis which
will distribute the expenses equitably. Credits to this account shall
be made in such detail as to permit ready analysis.
1. Supervision.
2. Building service.
3. Care of grounds, including snow removal, cutting grass, etc.
4. Utility services.
5. Depreciation of transportation equipment.
6. Fuel and lubricants for vehicles (including sales and excise taxes
thereon).
7. Insurance on garage equipment and transportation equipment,
including public liability and property damage.
8. Maintenance of transportation and garage equipment.
9. Compensation of drivers, mechanics, clerks, and other garage
employees.
10. Rent of garage buildings and grounds, vehicles or equipment.
11. Replacement of tires, tubes, batteries, etc.
12. Direct taxes, licenses, and permits.
13. Miscellaneous garage supplies, tools, and equipment.
14. Miscellaneous office supplies and expenses, printing, and
stationery.
15. Transportation, meals, and incidental expenses.
Note A: The pay of employees driving trucks or other transportation
equipment incidental to their regular occupation, shall not be included
herein but charged directly to the appropriate expense or other account.
Note B: Transportation expenses applicable to construction shall not
be included in operating expenses.
935 Maintenance of general plant.
A. This account shall include the cost assignable to customer
accounts, sales and administrative and general functions of labor,
materials used and expenses incurred in the maintenance of property, the
book cost of which is includible in account 390, Structures and
Improvements, account 391, Office Furniture and Equipment, account 397,
Communication Equipment, and account 398 Miscellaneous Equipment. For
Nonmajor utilities, include also other general equipment accounts (not
including transportation equipment). (See operating expense instruction
2.)
B. Maintenance expenses on office furniture and equipment used
elsewhere than in general, commercial and sales offices shall be charged
to the following accounts:
Steam Power Generation, Account 514.
Nuclear Power Generation, Account 532 (Major only).
Hydraulic Power Generation, Account 545.
Other Power Generation, Account 554.
Transmission, Account 573.
Distribution, Account 598.
Merchandise and Jobbing, Account 416.
Garages, Shops, etc., Appropriate clearing account, if used.
Note: Maintenance of plant included in other general equipment
accounts shall be included herein unless charged to clearing accounts or
to the particular functional maintenance expense account indicated by
the use of the equipment.
18 CFR 46.6 PART 104 -- (RESERVED)
Note: For the Uniform System of Accounts for all Public Utilities,
see part 101 of this subchapter.
18 CFR 46.6 Pt. 116
18 CFR 46.6 PART 116 -- UNITS OF PROPERTY FOR USE IN ACCOUNTING FOR
ADDITIONS AND RETIREMENTS OF ELECTRIC PLANT
Authority: Department of Energy Organization Act, 42 U.S.C.
7102-7352 (1982); E.O. 12009, 3 CFR 1978 Comp., p. 142; Federal Power
Act, 16 U.S.C. 791a-828c (1982); Public Utility Regulatory Policies
Act, 16 U.S.C. 2601-2645 (1982).
Source: Order 235, 26 FR 9887, Oct. 21, 1961, as amended by Order
390, 49 FR 32515, Aug. 14, 1984.
18 CFR 46.6 Instructions
1. The retirement units listed herein are prescribed and are to be
accounted for in accordance with Electric Plant Instruction 10,
Additions and Retirements of Electric Plant, of the Uniform System of
Accounts Prescribed for Public Utilities and Licensees.
2. The list of units may be expanded by any utility without other
authorization from this Commission, but it shall not be condensed.
This, the retirement units listed herein are of maximum size and while a
subdivision thereof, or the addition of other units, is permitted, the
combination or the increase in size of such units is not permitted
without the approval of the Commission.
3. Whenever appropriate, the retirement of any unit of property in
the structures or equipment account shall include all costs of
associated items which pertain solely to that unit, such as the cost of
foundations, supports, ladders, runways, enclosures, guards, driving
mechanisms, indicating, recording, and measuring devices with their
mountings, starting, control, regulating, protective, and safety
devices, switchboards, special lighting conduits and wiring, pipes,
ducts, spouts, chutes, hoppers, etc.
4. The appearance of a retirement unit under an account warrants the
inclusion of the unit in the account mentioned only when the text of the
account also indicates the inclusion as the same unit frequently appears
under more than one account.
The omission of an item from the list in an account or its inclusion
in a functional system does not preclude its treatment as a retirement
unit if it is relatively costly and not an integral part of a larger
retirement unit. The list of General Retirement Units, instruction 6
below, should be read in connection with the lists under the respective
accounts since in some cases retirement units have not been separately
listed because they appear in the List of General Retirement Units and
are common to more than one account. Likewise the List of General
Retirement Units and these instructions should be considered in
connection with listed retirement units designated as ''system,'' etc.
In these cases, particularly if ''system,'' etc., be extensive, a
component of such system, such as a relative costly piece of apparatus
not an integral part of a larger retirement unit, or a unit specified in
the List of General Retirement Units, should be separately treated as a
retirement unit.
5. It is contemplated that the list of units contained herein will be
revised and amended from time to time as experience and conditions
warrant.
6. List of General Retirement Units:
In all accounts where they occur, the following shall be considered a
retirement unit, if relatively costly and not an integral part of the
retirement unit specifically listed.
The term ''relatively costly'' applies to the relationship of the
cost of the item to the cost of other items in that particular account
of sub-account for the particular station or plant.
(1) Assembly for two or more retirement units.
(2) Blower or fan.
(3) Control installation, automatic, semi-automatic, or remote (such
as, pressure, voltage, current, speed, level, weight and volume
regulators).
(4) Coupling device, i.e., speed reducer, speed increaser, clutch
coupling, etc.
(5) Driving unit, i.e., prime mover, motor, gas engine, etc.
(6) Enclosure for two or more retirement units (fence, guard,
railing, etc.).
(7) Foundation for a unit of equipment, when not an integral part of
the building and its usefulness is not intended to outlast the equipment
for which provided.
(8) Instrument or device for indicating measuring, recording or
weighing.
(9) Instrument transformer.
(10) Landscaping (complete at one location).
(11) Plant piping, a run of any system (gas, oil, steam, water,
etc.), 6 inches or over in size, with or without valves, between two or
more retirement units of property, and/or a header. (See Note A and
Item 17.)
(12) Piping header, 6 inches or over in size, with or without valves
or blocking. (See Note A and Item 17.)
(13) Platforms, ladders, stairs, runways (complete section).
(14) Pump.
(15) Road, walk, parking lot, etc.
(16) Tank, vessel, etc.
(17) Valve, power operated, pressure reducing, atmospheric relief, or
relatively costly valve.
Note A: Whenever appropriate, the ''piping'' costs of additions and
retirements shall include all costs for pipes, valves, fittings,
specials, covering, hangers, supports, etc., pertaining to the run or
header in question.
(Order 235, 26 FR 9887, Oct. 21, 1961, as amended by Order 390, 49 FR
32515, Aug. 14, 1984; Order 484, 52 FR 45169, Nov. 25, 1987)
18 CFR 46.6 LIST OF RETIREMENT UNITS
(The article a, an, or the, as appropriate, should be read in
connection with each retirement unit of property listed herein)
18 CFR 46.6 Steam Production
311 Structures and Improvements.
1. Air conditioning system, ventilating system, heating system, or
any combination thereof.
2. Bin or bunker (when part of structure framework).
3. Bridge, trestle, etc.
4. Bulkhead, retaining wall, etc.
5. Canal, dam, dock, pier, wharf.
6. Drainage and sewerage system.
7. Elevator, crane, hoist, etc., complete with operating mechanism.
8. Equipment item, such as, a generator, engine, turbine, compressor,
or similar item of equipment includible in structures, with or without
associated wiring, control equipment, etc.
9. Fence, complete with gates.
10. Fire escape system.
11. Fire protection system.
12. Foundation (equipment) when includible in structure.
13. Light and power system.
14. Plumbing system.
15. Refrigeration system.
16. Railroad or track system, including culverts, etc.
17. Roof, with or without supporting members. (A structure of
irregular shape having more than one roof level may have several
isolated roofs, each of which shall be considered an entire roof. In the
case of structures to which lateral extensions have been made, even
though having but one roof level, that part of the roof covering an
entire section built at one time shall be considered an entire roof.)
18. Structure, complete, with or without stack or chimney.
19. Tunnel, pipe line, etc.
20. Vacuum cleaning system.
21. Water basin or reservoir.
22. Water supply system, including well.
23. Yard drainage system.
24. Yard lighting system.
312 Boiler Plant Equipment.
A. Steam Boiler Installation:
1. Boiler complete with furnace, boiler setting, grates, etc.
2. Desuperheater.
3. Foundation, boiler, when independent of structure.
4. Fuel burning equipment for one boiler (grates, stokers, stoker
drive, burners, etc.).
5. Reheater, when separate from boiler.
6. Soot blower system for one boiler.
7. Superheater, when separate from boiler.
B. Draft Equipment:
1. Air duct system.
2. Air heater.
3. Breeching system.
4. Cinder or fly ash collecting equipment, such as, cinder catcher,
precipitator, hopper, concentrator, etc.
5. Stack, with or without foundation.
C. Feed Water System:
1. Deaerator.
2. Economizer, when separate from boiler.
3. Heat exchanger.
4. Heater, feed water (main or stage).
5. Regulator, feed water.
D. Coal Fuel Equipment:
1. Bin or bunker not includible in structures.
2. Bin unloader.
3. Barge.
4. Capstan, winch or power moving equipment.
5. Car, lorry.
6. Car dumper, puller, shaker, thawing system, etc.
7. Chutes or spouts, system of.
8. Coal moving equipment (bulldozer, carry-all, tractor, drag
scraper, etc.).
9. Conveyor system (belt, cable way, portable, screw, etc.).
10. Crane (locomotive, gantry or monorail).
11. Crusher.
12. Dust collecting unit.
13. Electric trolley or third rail system.
14. Elevator (vertical, bucket, skip hoist).
15. Gates, chutes, downtakes, spreaders, or hoppers, for one boiler.
16. Hoist or derrick.
17. Hopper, track or weigh.
18. Locomotive.
19. Sampling system.
20. Screening or sizing installation.
21. Separator, magnetic.
22. Structure, fuel handling (not includible in structures account).
23. Track system.
24. Trestle.
25. Weighing device, including track scale, coal meter, etc.
E. Pulverized Fuel Equipment:
1. Air filter or washer.
2. Air preheater.
3. Air compressor.
4. Conveyor.
5. Chutes, ducts or transport pipes, system of.
6. Coal feeder, raw or powdered.
7. Crusher.
8. Dryer.
9. Hopper or bin.
10. Pulverizer.
11. Screening or sizing installation.
12. Separator, electric or mechanical (dust collector or
concentrator).
F. Oil Fuel Equipment:
1. Heater.
Note: See list of general retirement units.
G. Gas Fuel Equipment:
Note: See list of general retirement units.
H. Ash Handling Equipment:
1. Ash hopper (when not includible in structures account).
2. Car.
3. Clinker grinder (when a separate unit).
4. Conveyor or elevator.
5. Crane hoist or derrick.
6. Dust collecting system.
7. Electric trolley or third rail system.
8. Locomotive.
9. Removal system (vacuum, steam jet, or hydraulic).
10. Sluiceway or piping system.
11. Storage bin or pit.
12. Sump dredge.
13. Track system.
I. Water Supply and Purification System:
1. Pipe, intake or discharge (when not includible in structures
account).
2. Tunnel, intake or discharge (when not includible in structures
account).
3. Water softener or purification system, including demineralizer,
etc.
4. Well.
Note: See list of general retirement units.
J. Ventilating Equipment:
1. Air duct system.
2. Cooler or heater.
3. Washer.
K. Instruments and Meters:
1. Automatic control installation.
2. Master controller installation.
3. Panel or panels, devoted to a single purpose, with equipment
associated thereto.
L. Boiler Plant Piping:
Note: See list of general retirement units.
M. Process Steam Equipment:
1. Separator or purifier.
2. Accumulator.
3. Automatic control for accumulator.
4. Trap, high pressure.
N. Wood Fuel Equipment:
1. Hopper or bin.
2. Fuel hogs.
3. Elevator, conveyors, etc.
313 Engines and Engine-Driven Generators.
314 Turbogenerator Units.
A. Engine-Driven Generating Installation (Account 313):
1. Drive or connection between engine and generator.
2. Engine.
3. Exciter.
4. Foundation, independent of structure.
5. Generator.
6. Governor control system.
B. Turbogenerator Installation (Account 314):
1. Equipment, starting and turning.
2. Exciter.
3. Foundation, independent of structure.
4. Generator.
5. Governor control system.
6. Turbine.
C. Condensing and Cooling Water System (Accounts 313 and 314):
1. Air ejector apparatus for one condenser.
2. Condenser.
3. Condenser tube protective system (chemical, electric,
electrolytic, etc.).
4. Cooling tower.
5. Intake or discharge, screen and mechanism.
6. Pump, circulating, condensate, vacuum, etc.
7. Spraying system.
8. Tunnel, intake, or discharge (when not includible in structures
account).
D. Central Generator Cooling System (Accounts 313 and 314):
1. Air duct system.
2. Air washer.
3. Cooler.
4. Hydrogen system, including storage cylinder, etc.
E. Central Lubricating System (Accounts 313 and 314):
1. Accumulator.
2. Cooler.
3. Purifier or filter.
F. Instruments and Meters (Accounts 313 and 314):
1. Panel or panels, devoted to a single purpose, with equipment
associated thereto.
G. Engine and Turbine Plant Piping (Accounts 313 and 314):
Note: See list of general retirement units.
315 Accessory Electric Equipment.
(See Account 353 for applicable retirement units of property.)
316 Miscellaneous Power Plant Equipment.
Each principal item, system or set of equipment, such as:
1. Air compressor.
2. Air conditioning or ventilating equipment (portable unit).
3. Barge, boat, or similar item of marine equipment.
4. Car, railway.
5. Communication system, station signal or call.
6. Compressed air system.
7. Crane, hoist or derrick.
8. Fire protection equipment (general station use).
9. Laboratory equipment, principal item, such as drying oven,
calorimeter, etc.
10. Locomotive.
11. Oil-reclaiming installation.
12. Refrigeration system.
13. Tool, each principal item such as forge, lathe, drill press,
steam hammer, welding equipment, etc.
14. Vacuum cleaning system.
Note: If any of the units of property listed above are a part of a
structure and includible in account 311, Structures and Improvements,
they shall be accounted for through that account.
18 CFR 46.6 Nuclear Production
321 Structures and Improvements.
(See Account 311 for applicable retirement units of property.)
322 Reactor Plant Equipment
18 CFR 46.6 Boiling Water Reactor
A. Reactor:
1. Reactor vessel internals.
2. Reactivity control systems.
3. Reactor vessels and appurtenances.
4. Reactor trip systems.
B. Reactor Coolant System and Connected Systems:
1. Coolant recirculation systems and controls.
2. Main steam systems and controls.
3. Main steam isolation systems and controls.
4. Reactor core isolation cooling systems and controls.
5. Residual heat removal systems and controls.
6. Feedwater systems and controls.
7. Reactor coolant pressure boundary leakage detection system (When
not part of another retirement unit).
8. Other coolant subsystems and controls (not included as an item
elsewhere).
9. Engineered safety feature instrument systems.
10. Systems required for safe shutdown.
11. Safety related display instrumentation.
12. Coolant injection systems.
13. Other instrument systems.
C. Containment System:
1. Reactor containment.
2. Containment heat removal systems and controls.
3. Containment air purification and cleanup systems and controls.
4. Containment isolation systems and controls.
5. Containment combustible gas control systems and controls.
6. Other containment systems and controls.
D. Fuel Storage and Handling Systems:
1. New fuel storage equipment and/or racks.
2. Spent fuel storage equipment and/or racks.
3. Spent fuel pool cooling and cleanup systems and controls.
4. Fuel handling systems.
E. Auxiliary Water Systems:
1. Cooling systems for reactor auxiliaries and controls.
F. Auxiliary Process Systems:
1. Process sampling system.
2. Failed fuel detection systems.
3. Reactor coolant cleanup systems and controls.
4. Liquid poison systems and controls.
G. Radioactive Waste Management Systems:
1. Liquid radioactive waste management systems.
2. Gaseous radioactive waste management systems.
3. Process and effluent radiological monitoring systems.
4. Solid radioactive waste management systems.
H. Radiation Protection Systems:
1. Area monitoring systems.
2. Airborne radioactivity monitoring systems.
3. Control room habitability systems and controls.
I. Other Systems:
1. Auxiliary boiler system.
2. Control air systems.
3. Service water system.
4. Vent and drain system.
5. Ventilating equipment.
6. Water supply and purification or cleanup system.
Note: See list of general retirement units.
18 CFR 46.6 Pressurized Water Reactor
A. Reactor:
1. Reactor vessel internals.
2. Reactivity control systems.
3. Reactor vessels and appurtenances.
4. Reactor trip systems.
B. Reactor Coolant System and Connected Systems:
1. Coolant recirculation systems and controls.
2. Main steam systems and controls.
3. Main steam isolation systems and controls.
4. Emergency core cooling systems and controls.
5. Residual heat removal systems and controls.
6. Feedwater systems and controls.
7. Reactor coolant pressure boundary leakage detection systems (when
not part of another retirement unit).
8. Other coolant subsystems and controls (not included as an item
elsewhere).
9. Engineered safety feature instrument systems.
10. Systems required for safe shutdown.
11. Safety related display instrumentation.
12. Other instrument systems.
C. Containment Systems:
1. Reactor containment.
2. Containment air purification and cleanup systems and controls.
4. Containment isolation systems and controls.
5. Containment combustible gas control systems and controls.
6. Other containment systems and controls.
D. Fuel Storage and Handling Systems:
1. New fuel storage equipment and/or racks.
2. Spent fuel storage equipment and/or racks.
3. Spent fuel cooling and cleanup systems and controls.
4. Fuel handling systems.
E. Auxiliary Water Systems:
1. Cooling systems for reactor auxiliaries and controls.
F. Auxiliary Process System:
1. Process sampling system.
2. Failed fuel detection system.
3. Chemical and volume control systems and controls.
G. Radioactive Waste Management Systems:
1. Liquid radioactive waste mangement systems.
2. Gaseous radioactive waste management systems.
3. Process and effluent radiological monitoring systems.
4. Solid radioactive waste management systems.
H. Radiation Protection Systems:
1. Area monitoring systems.
2. Airborne radioactivity monitoring systems.
3. Control room habitability systems and controls.
I. Other Systems:
1. Auxiliary boiler system.
2. Control air systems.
3. Service water system.
4. Vent and drain system.
5. Ventilating equipment.
6. Water supply and purification or cleanup system.
Note: See list of general retirement units.
18 CFR 46.6 High Temperature Gas Reactor
A. Reactor:
1. Reactor.
2. Reactor reflector system.
B. Reactor Coolant System and Connected Systems:
1. Primary coolant systems and controls.
2. Secondary coolant systems and controls.
3. Feedwater and condensate system and controls.
4. Reactor plant piping.
5. Hydraulic power systems and controls.
6. Moisture monitoring control system.
7. Linear neutron flux monitor and control rod calibration.
8. Analytical depressurization box controls.
9. Analytical liquid sampling control system.
10. Analytical gaseous sampling control system.
11. Tritium monitoring control system.
C. Fuel Storage and Handling System:
1. Fuel storage systems and controls.
2. Fuel handling systems and controls.
D. Radioactive Waste Management Systems:
1. Radioactive liquid waste management systems and controls.
2. Radioactive gaseous waste management systems and controls.
3. Decontamination systems and controls.
E. Radiation Protection Systems:
1. Air monitor control systems and controls.
F. Auxiliary Boiler System.
G. Alternate Cooling Method.
Note: See list of general retirement units.
(Order 484, 52 FR 45169, Nov. 25, 1987, as amended at 52 FR 49157,
Dec. 30, 1987)
323 Turbogenerator Units.
(See Account 314 for applicable retirement units of property.)
324 Accessory Electric Equipment.
(See Account 353 for applicable retirement units of property.)
325 Miscellaneous Power Plant Equipment.
(See Account 316 for applicable retirement units of property.)
18 CFR 46.6 Hydraulic Production
331 Structures and Improvements.
(See Account 311 for applicable retirement units of property.)
332 Reservoirs, Dams and Waterways.
1. Apron.
2. Boom.
3. Bridge or draw span.
4. Bulkhead.
5. Cribbing, system of, when not a part of a dike, embankment, road,
etc.
6. Dam.
7. Dike or embankment, with or without riprap or core wall.
8. Fence, complete.
9. Fish ladder, elevator or lock system.
10. Forebay.
11. Flume, tunnel, or canal.
12. Gate.
13. Gate hoist.
14. Gate hoist track.
15. Gate house and equipment.
16. Gate section.
17. Gravity section.
18. Heating or thawing system.
19. Intake house, when not a part of structure.
20. Lighting system, including wire, supports, fixtures, etc.
21. Lock, navigation.
22. Penstock.
23. Pier.
24. Piling, system of, to protect any of the structures.
25. Power and control system.
26. Road.
27. Sluice or wasteway.
28. Sewer complete.
29. Stability testing equipment.
30. Substructure, power plant.
31. Tailrace.
32. Tank, surge (complete with surge pipe, viser, housing, heating
system, etc.).
33. Trash rack.
34. Trash rake with mechanism.
35. Valve, power operated or other relatively costly valve.
36. Walkway.
37. Wall, wing, cut-off baffle, retaining.
333 Water Wheels, Turbines and Generators.
A. Hydro-Generating Installation:
1. Drive or connection between water wheel and generator.
2. Exciter.
3. Foundation, independent of structure.
4. Generator.
5. Governor control system.
6. Valve, penstock, main or by-pass.
7. Water turbine or water wheel, with or without draft tube, scroll
case or housing.
B. Central Generator Cooling System:
1. Air duct system.
2. Air washer.
3. Cooler.
C. Central Lubricating or Bearing Pressure System:
1. Accumulator.
2. Cooler.
3. Piping system.
4. Purifier or filter.
D. Instruments and Meters:
1. Panel or panels, devoted to a single purpose, with equipment
associated thereto.
334 Accessory Electric Equipment.
(See Account 353 for applicable retirement units of property.)
335 Miscellaneous Power Plant Equipment.
(See Account 316 for applicable retirement units of property.)
336 Roads, Railroads and Bridges.
1. Bridge.
2. Culvert.
3. Draw span.
4. Railroad.
5. Road or trail.
6. Trestle.
18 CFR 46.6 Other Production
341 Structures and Improvements.
(See Account 311 for applicable retirement units of property.)
342 Fuel Holders, Producers and Accessories.
A. Fuel Oil System:
1. Boiler, heating.
2. Heater, not a part of tank.
3. Meter, fuel oil.
4. Piping system, fuel oil.
5. Purifier.
6. Tank, including foundations, supports and fire protection.
B. Gas Fuel System:
1. Ash handling equipment for a producer.
2. Boiler.
3. Booster.
4. Compressor.
5. Fuel handling equipment for a producer.
6. Holder.
7. Meter.
8. Piping system, gas.
9. Producer.
10. Regenerator.
11. Scrubber or washer.
12. Vaporizing unit for butane gas.
343 Prime Movers.
A. Combustion Engines and Equipment:
1. Air intake equipment for one engine.
2. Drive or connection between engine and generator.
3. Engine, with or without foundation.
4. Governor control system.
5. Heat exchanger.
6. Muffler.
7. Panel or panels and instruments for one engine.
8. Stack.
9. Starting and turning device.
B. Central Lubricating System:
1. Cooler.
2. Piping system, oil.
3. Purifier or filter.
C. Central Cooling Water System:
1. Heat exchanger.
2. Piping system, cooling water.
3. Purification system, water.
4. Spraying system.
5. Tank, storage, surge, or hot-well.
6. Tower, cooling.
D. Central Starting System:
1. Compressor.
2. Piping system, starting.
E. Central Intake Air Supply:
1. Air duct system.
2. Air filter or screen.
3. Silencer.
F. Central Exhaust Gas System:
1. Heat exchanger (or waste heat boiler).
2. Muffler.
3. Piping system, exhaust.
4. Stack.
344 Generators.
1. Exciter.
2. Generator.
3. Panel or panels, devoted to a single purpose, with equipment
accessory thereto.
345 Accessory Electric Equipment.
(See Account 353 for applicable retirement units of property.)
346 Miscellaneous Power Plant Equipment.
(See Account 316 for applicable retirement units of property.)
18 CFR 46.6 Transmission Plant
352 Structures and Improvements.
(See Account 311 for applicable retirement units of property.)
353 Station Equipment.
1. Air compressor.
2. Air duct system.
3. Auxiliary generator set.
4. Battery charging set.
5. Bus and Wiring -- Power:
a. Bus compartment or cubicle for equipment.
b. Bus -- wires, cables, shapes, and insulators.
c. Cable or conductor, each continuous circuit run.
d. Conduit, duct or cable trench, each continuous run, bank or
section.
6. Capactor, static, bank of.
7. Condenser, synchronous.
8. Control installation, system operator's.
9. Converter, synchronous or rotary.
10. Crane or hoist.
11. Exciter.
12. Fire protection system or equipment.
13. Frequency changer.
14. Frequency control system.
15. Fuse equipment, set of high tension.
16. Generator voltage regulator system.
17. Lighting system.
18. Lighting arrester, 23 kv or higher, set of.
19. Manhole.
20. Motor generator set.
21. Oil purifier or filter.
22. Oil switch or circuit breaker.
23. Panel or panels, devoted to a single purpose, with equipment
accessory thereto.
24. Reactor or resistor.
25. Rectifier.
26. Storage battery, set or bank for station control and power.
27. Structure forming or support for one or more units of equipment.
28. Switches, airbreak, grounding or set of disconnecting.
29. Switchgear (compartment, cubicle, etc.), complete assembly.
30. Telemetering equipment, each installation.
31. Testing equipment, set of.
32. Track system, transformer.
33. Transformer, not accessory to a panel.
34. Truck switch with wiring and instruments.
35. Truck, transformer.
36. Unit station.
37. Voltage regulator (see also item 16).
38. Wave trap, carrier current.
354 Towers and Fixtures.
1. Tower, with or without foundation.
355 Poles and Fixtures.
1. Frame, A or H, with or without associated cross- arms, guys,
anchors, etc.
2. Pole, i.e., line pole, brace pole, or guy pole, with or without
associated crossarms, guys, anchors, etc.
3. Special structure, such as, bridge fixture, river crossing,
long-span fixture, with or without associated crossarms, guys, anchors,
etc.
356 Overhead Conductors and Devices.
1. Conductor, two continuous spans of one circuit.
2. Circuit breaker.
3. Lightning arresters, set of.
4. Line switches, set of.
357 Underground Conduit.
1. Conduit, section of, between two manholes, or between a manhole
and a pole.
2. Manhole, splicing chamber or vault (not including handholes).
3. Ventilating equipment, complete installation at one location.
4. Tunnel.
358 Underground Conductors and Devices.
1. Circuit breaker.
2. Cable (buried), with or without potheads, section between two
termini points.
3. Cable (in conduit), with or without potheads, circuit between two
manholes or vaults or between a manhole and a terminal.
4. Cable (submarine), with or without potheads, between terminal
chambers or manholes.
5. Lightning arresters, set of.
6. Line switches, set of.
7. Pump house, complete structure (oil filled cables).
8. Pumping equipment, storage tank, etc., each installation (oil
filled cables).
359 Roads and Trails.
(See Account 336 for applicable retirement units of property.)
18 CFR 46.6 Distribution Plant
361 Structures and Improvements.
(See Account 311 for applicable retirement units of property.)
362 Station Equipment.
(See Account 353 for applicable retirement units of property.)
363 Storage Battery Equipment.
(See Account 353 for applicable retirement units of property.)
364 Poles, Towers and Fixtures.
1. Frame, A or H, with or without associated crossarms, guys,
anchors, etc.
2. Pole, i.e., line pole, brace pole, or guy pole, with or without
associated crossarms, guys, anchors, etc.
3. Tower, with or without foundation.
365 Overhead Conductors and Devices.
1. Conductor, two continuous spans of one circuit.
2. Circuit breaker.
3. Lightning arresters, set of.
4. Line switches, set of.
Note: At option of utility, on distribution lines of low voltage,
the retirement unit may comprise two continuous spans of one circuit
including all associated line equipment.
366 Underground Conduit.
1. Conduit, section of, between two manholes or between a manhole and
a pole.
2. Manhole, splicing chamber or vault (not including handholes).
3. Ventilating equipment, complete installation at one location.
4. Tunnel.
367 Underground Conductors and Devices.
1. Circuit breaker.
2. Conductor (buried), section of cable between two termini points.
3. Conductor (in conduit), circuit between two manholes or between a
manhole and a pole.
4. Conductor (submarine), submerged length of cable between terminal
chambers or manholes.
5. Lightning arresters, set of.
6. Line switches, set of.
7. Pump house, complete structure (oil filled cables).
8. Pumping equipment, storage tank etc., each installation (oil
filled cables)
368 Line Transformers.
1. Transformer, capacitor bank, voltage regulator or network
protector, with or without associated control and protective devices.
(See also text of Account 583, Overhead Line Expenses and Account 584
Underground Line Expenses.)
369 Services.
1. Overhead service.
2. Underground service, with or without duct.
370 Meters.
1. Current limiting device.
2. Instrument transformers, set of.
3. Meter.
4. Time switch.
(See also text of Account 586, Meter Expenses.)
371 Installation on Customers' Premises
1. Cable vault.
2. Commercial lighting equipment installation on one premise.
3. Equipment installation, such as a frequency changer, a motor
generator set, etc.
4. Switchboard and wire or cable connections on one premise.
Note: See also other accounts for appropriate units of property.
372 Leased Property on Customers' Premises.
1. Equipment installation, such as a motor, a transformer, etc.
Note: See also other accounts for appropriate units of property.
373 Street Lighting and Signal Systems.
1. Capacitor, bank of.
2. Control equipment, such as, contactor, protector, clock operated
switch, etc.
3. Post, standard or bracket, with or without luminaire or suspension
lamp fixture.
4. Signal installations at one location.
5. Transformer.
Note: See also units as listed under accounts 365, Overhead
Conductors and Devices, 366, Underground Conduit, 367, Underground
Conductors and Devices, and 368, Line Transformers, when such property
is included in this account.
18 CFR 46.6 General Plant
390 Structures and Improvements.
(See account 311 for applicable retirement units of property.)
391 Office Furniture and Equipment.
Each principal item of equipment such as:
1. Office equipment; accounting machine, adding machine, calculating
machine, coin counters, signature writer, typewriter.
2. Office furniture; desk, cabinet, safe, file.
3. Duplicating equipment; blueprint machine, photostat machine,
offset press, photocopy machine, transcopy machine.
4. Mechanical processing equipment; key punch, sorters, tabulators,
electronic calculators.
392 Transportation Equipment.
Each principal item of equipment such as:
1. Airplane.
2. Automobile.
3. Boat.
4. Electrical vehicle.
5. Motor truck.
6. Motorcycle.
7. Tractor.
8. Trailer, wagon, etc.
393 Stores Equipment.
Each principal item of equipment such as:
1. Counter, shelving, bins or racks, each location.
2. Crane, hoist, or chainfall.
3. Portable elevating and stacking equipment.
4. Truck.
394 Tools, Shop and Garage Equipment.
Each principal item of equipment such as:
1. Shop equipment and tools; drill press, welding machine, forge,
furnace, lathe, planer, shaper.
2. Garage and repair equipment; gasoline or oil pump, battery
charging set, car lift, power-driven greasing machine.
3. Tools and work equipment; pneumatic tool, welding set, power saw,
transmit, level, concrete mixer.
395 Laboratory Equipment.
Each principal item of equipment such as:
1. Centrifuge.
2. Dynamometer.
3. Oscillograph.
4. Meter testing equipment.
5. Transformer, testing and loading.
396 Power Operated Equipment.
Each principal item of equipment such as:
1. Air compressor, including driving unit and vehicle.
2. Back filling machine.
3. Boring machine.
4. Brush grinder.
5. Bulldozer.
6. Crane or hoist.
7. Digger.
8. Locomotive.
9. Pile driver.
10. Pipe coating or wrapping machine.
11. Pipe cleaning machine.
12. Tractor.
13. Trencher.
397 Communication Equipment.
Each principal item or set of equipment such as:
1. Antenna and supporting structure.
2. Carrier current coupling capacitor.
3. Carrier current transmitting and receiving set.
4. Intercommunicating telephone apparatus.
5. Microwave apparatus.
6. Receiver, stationary or mobile.
7. Storage battery set or motor generator set.
8. Teletype apparatus.
9. Transmitter, stationary or mobile.
Note: Units of conductors, supports, and duct lines shall be
identical with those prescribed for Accounts 354, 355, 356, 357, 358,
364, 365, 366 and 367.
398 Miscellaneous Equipment.
Each principal item of equipment if includible in this amount.
399 Other Tangible Property.
Units to be assigned as items of property are included herein.
18 CFR 46.6 PART 125 -- PRESERVATION OF RECORDS OF PUBLIC UTILITIES AND
LICENSEES
Sec.
125.1 Promulgation.
125.2 General instructions.
125.3 Schedule of records and periods of retention.
Authority: Secs. 301, 304, 309; 49 Stat. 854, 855, 856, 858, 859;
16 U.S.C. 825, 825c, 825h; Pub. L. 96-511, 94 Stat. 2812 (44 U.S.C.
3501 et seq.), unless otherwise noted.
18 CFR 125.1 Promulgation.
(a) This part is prescribed and promulgated as the regulations
governing the preservation of records by public utilities subject to the
jurisdiction of the Commission and by licensees holding licenses issued
by the Commission, to the extent and in the manner set forth therein;
(b) This part shall, as to all public utilities now subject to the
jurisdiction of the Commission and as to all present licensees, become
effective as herein revised on January 1, 1972. As to any public
utility or licensee which may hereafter become subject to the
jurisdiction of the Commission, this part shall become effective as of
the date when such public utility becomes subject to the jurisdiction of
the Commission or on the effective date of the license of such licensee.
(Order 450, 37 FR 6293, Mar. 28, 1972)
18 CFR 125.2 General instructions.
(a) Scope of this part. (1) The regulations in this part apply to
all books of account and other records prepared by or on behalf of the
public utility or licensee. See subsection 64 of the schedule for those
records which come into possession of the public utility or licensee in
connection with the acquisition of property, such as purchase,
consolidation, merger, etc.
(2) The regulations in this part shall not be construed as excusing
compliance with any other lawful requirement for the preservation of
records for periods longer than those prescribed herein.
(3) Unless otherwise specified in the schedule ( 125.3), duplicate
copies of records may be destroyed at any time: Provided, however, That
such duplicate copies contain no significant information not shown on
the originals.
(4) Records other than those listed in the schedule may be destroyed
at the option of the public utility or licensee: Provided, however,
That records which are used in lieu of those listed shall be preserved
for the periods prescribed for the records used for substantially
similar purposes. And, provided further, That retention of records
pertaining to added services, functions, plant, etc., the establishment
of which cannot be presently foreseen, shall conform to the principles
embodied herein.
(5) Notwithstanding the provisions of the Records Retention Schedule,
the Commission may, upon the request of the Company, authorize a shorter
period of retention for any record listed therein upon a showing by the
Company that preservation of such record for a longer period is not
necessary or appropriate in the public interest or for the protection of
investors or consumers.
(b) Designation of supervisory official. Each public utility or
licensee subject to the regulations in this part shall designate one or
more persons with official responsibility to supervise the utility's or
licensee's program for preservation and the authorized destruction of
its records.
(c) Protection and storage of records. The public utility or
licensee shall provide reasonable protection for records subject to the
regulations in this part from damage by fire, floods, and other hazards
and, in the selection of storage spaces, safeguards the records from
unnecessary exposure to deterioration from excessive humidity, dryness,
or lack of proper ventilation.
(d) Definition of record media. (1) For the purpose of these
regulations, the data constituting the records listed in the schedule
may be retained in any of the media forms in Figure 1 of this section,
provided that the media selected has a standard life expectancy equal to
or in excess of the specified retention period. However, records
supporting plant and licensed project cost shall be retained in their
original form, unless microfilmed. (See general instruction (j), for
periods of retention.) In no instance, except in emergencies, will media
regeneration to achieve the full length of period retention be allowed
without Commission approval of the request of the company. In emergency
cases management shall take such action as prudence calls for and notify
the Commission immediately thereafter.
(2) If the media form of the record retained is other than a readable
paper copy, then reader and/or printer equipment and related printout
programs, if required, shall be provided by the utility for data
reference.
(3) The media form initially selected for the record becomes the
''original'' for that particular record. If subsequent conditions (e.g.
improved media life expectancy, increased utility resources,
environmental factors) require and the remaining retention period
permits a change in the media forms, the utility may convert to another
media and dispose of its old equipment, provided the certification
processes described in paragraph (e) of this section are observed and
data referencing capability is maintained.
(e) Microform, tape and computer output certification. (1) As the
initial recording media --
(i) Except as provided in paragraph (e)(1)(ii) of this section each
microform record series:
(A) shall contain, at the beginning, a microform introduction stating
the title of the record series, the date prepared, the name of the
official responsible for validating or confirming the data contained
therein; and
(B) shall be closed with a clear and standard microform notation
indicating the completion of the series and the date.
(ii) If an official permanent record series is a computer output
product (i.e., output paper or microfilm, jacketed microfiche, or
aperture cards), any certification that may otherwise be required under
paragraph (e)(1)(i) of this section is not required if:
(A) The series is prepared in accordance with written standard
procedures developed, or accepted general business practices followed,
by the company that ensure the integrity of record series that are the
product of computer output; and
(B) Such procedures or practices include the name or title of the
official responsible for validating or confirming the data contained in
the record series and confirming that a particular computer output
record series was produced in accordance with the standard procedures or
practices.
(iii) If after validation, supplemental data and/or corrections
(i.e., resulting from computer programing) are required, said microform
may be produced separately or as a part of the series rerun, but shall
be affixed to the original microform certificate as described in
paragraph (e)(1)(i) of this section.
(iv) Each tape record series shall be externally labeled and shall
include, as a basic part of the program, at the beginning of that series
an introduction stating the record series title, date prepared, the name
of the official responsible for validating or confirming the data
contained therein and an index where appropriate. Each record series
shall be closed with a clear and standard notation indicating the
completion of that series and the date.
(2) Conversion from other media --
(i) Each microform record series shall include, as an integral part,
a certificate(s) stating that the microforms are direct and facsmile
reproductions of the original records and that they have been made in
accordance with prescribed instructions. Such certificate(s) shall be
executed by a person(s) having personal knowledge of the facts covered
thereby.
(ii) Each microform record series shall commence and end with a
statement as to the nature and arrangement of the records reproduced,
and the date. Rolls of film shall not be cut except to produce jacketed
microfiche. Supplemental or retaken film, whether of misplaced or
omitted documents or of portions of microform found to be defective,
shall be attached to the beginning of the microform record series.
However, if a retrieval system using such methods as, for example, image
count indexing or ''blipping'' is used, the supplemental or retaken film
may be attached at the end of the series, if provisions at the beginning
of the series advise the viewer of the location of the problem frames
and the location of the supplemental or retaken frames. If supplemental
or retaken film of misplaced or omitted documents, or of portions of
microform found to be defective, are attached to the microform record
series, the certificate described in paragraph (e)(1)(i) of this section
shall cover the supplemental or retaken film and shall state the reasons
for the attachment.
(iii) If, in accordance with the provisions of paragraph (f) of this
section, the utility or licensee elects to convert records to the tape
media, the same certification provisions specified in paragraph
(e)(1)(iii) of this section must be provided in the conversion program.
(f) Change of media for existing records. Those records prepared and
maintained under previous regulations in a paper media and whose
remaining retention period falls within the life expectancy range of any
of the media detailed in Figure 1, may be converted to that media at the
public utility's and/or licensee's option, provided the applicable
certification processes described in paragraph (e) of this section are
observed and an audit referencing capability maintained.
(g) Media. (1) All records created or maintained in a media and a
format other than readable entries on paper shall:
(i) Be prepared, arranged, classified, identified, and indexed as to
permit the subsequent location, examination, and reproduction of the
record to a readable media;
(ii) Be stored in such a manner as to provide reasonable protection
from hazards such as fire, flood, theft, etc.; and be maintained in a
controlled environment;
(iii) Be regenerated, including proper certification, when damaged.
(Also see 125.2(d)(1).)
(2) The company shall be prepared to furnish, at its own expense,
standard facilities for reading media and shall additionally provide, if
the Commission so directs, copies of record in a readable form.
(3) All film stock shall be of approved
operationally-permanent-record microcopying type, which meets the
current specifications of the American National Standards Institute.
(h) Destruction of records. The destruction of the records permitted
to be destroyed under the provisions of the regulations in this part may
be performed in any manner elected by the public utility or licensee
concerned. Precautions should be taken, however, to macerate or
otherwise destroy the legibility of records, the content of which is
forbidden by law to be divulged to unauthorized persons.
(i) Premature destruction or loss of records. When records are
destroyed or lost before the expiration of the prescribed period of
retention, a certified statement listing, as far as may be determined,
the records destroyed and describing the circumstances of accidental or
other premature destruction or loss shall be filed with the Commission
within ninety (90) days from the date of discovery of such destruction.
(j) Schedule of records and periods of retention. The schedule of
records, 125.3, shows the period of time that designated records shall
be preserved. However, records related to plant shall be retained a
minimum of 25 years unless accounting adjustments resulting from
reclassification and original cost studies have been approved by the
regulatory commission having jurisdiction, and either (1) continuing
plant inventory records are maintained (see Definition No. 8,
''Continuing Plant Inventory Records'', Parts 101 and 104 of this
subchapter), or (2) unitization of construction costs appear in work
orders, except that those relating to the construction of licensed
projects, or additions or betterments thereto for which the Commission
has not determined the actual legitimate original cost are to be
retained until such cost has been determined. Additionally, all records
which affect the determination of amortization reserves related to
licensed projects shall be retained until Commission determination and
final adjudication is made.
(k) Retention periods designated ''Destroy at option''. Use of the
retention period, ''Destroy at option,'' in the regulations in this part
constitutes authorization for such destruction under the conditions
specified for the particular types of records, only if such optional
destruction is appropriate to limited managerial interest in such
records and if such optional destruction is not in conflict with other
legal retention requirements or usefulness of such records in satisfying
pending regulatory actions or directives.
(l) Records of services performed by associated companies. The
public utility or licensee to which the regulations in this part apply
shall assure the availability of records of services performed by
associated companies for the periods indicated herein, as are necessary,
to support the cost of services rendered to it by an associated company.
(m) Index of records. At each office of the public utility or
licensee where records are kept or stored, such records as are herein
required to be preserved shall be so arranged, filed and currently
indexed that they may be readily identified and made available to
representatives of the Commission.
(n) Schedule of notes. (1) For the purpose of the regulation, a
stockholder's account may be treated as a closed account at the time
that such stockholder ceases to be a holder of record of the particular
class and series of stock of the company and the 6-year retention period
prescribed herein shall run from that date. If such person subsequently
acquires shares of capital stock of the company and thus again becomes a
stockholder of the company, the record of such acquisition shall be
treated as a new stockholder account.
(2) The terms ''bonds'' and ''debentures,'' as used in captions (a)
through (f) of this item, shall include all debt securities, such as
bonds, debentures or notes other than debt securities which evidence
temporary borrowings and which are expected to be repaid out of the
proceeds of the sale of longer term securities. Typical of such
temporary debt securities as described in 4(i) would be notes issued to
banks evidencing temporary working capital and construction loans.
(3) Canceled bonds and debentures and paid interest coupons
pertaining thereto may be destroyed, provided that a certificate of
destruction giving full descriptive reference to the documents destroyed
shall be made by the person or persons authorized to perform such
destruction and shall be retained by the company for the period herein
prescribed. The certificate of destruction evidencing the destruction
of paid interest coupons pertaining to bonds or debentures need not
contain a listing of the bond or debenture serial numbers pertaining to
such paid interest coupons. When documents represent debt secured by
mortage, the certificate of destruction shall also be authorized by a
representative of the trustee(s) acting in conjunction with the person
or persons destroying the documents or shall have the trustee(s)
acceptance thereon. The certificate of destruction above described may
be destroyed 6 years after the payment and discharge of the bonds or
debentures or interest coupons described in such certificate.
(4) If a retention period is prescribed elsewhere in the schedule
with respect to any document which is included as an exhibit to any
filing retained pursuant to the requirements of this item, the company
need retain only one copy of such document in its files provided
appropriate cross references are established.
(5) Life or mortality study data for depreciation purposes shall be
retained for 25 years or for 10 years after plant is retired, whichever
is longer.
(Secs. 3, 4, 15, 16, 308; 41 Stat. 1063-1066, 1068, 1072, 1075; 49
Stat. 838-841; 82 Stat. 617 (16 U.S.C. 796, 797, 803, 808, 809, 816,
825b, 825g, 826i); secs. 8, 10, 16; 52 Stat. 825, 826, 830 (15 U.S.C.
717g, 717i, 717o))
(Order 450, 37 FR 6293, Mar. 28, 1972, as amended by Order 567, 42 FR
30615, June 16, 1977; Order 258, 47 FR 42724, Sept. 29, 1982; Order
335, 48 FR 44483, Sept. 29, 1983)
18 CFR 125.3 Schedule of records and periods of retention.
1 Capital stock records. (Reserved)
2 Proxies and voting lists. (Reserved)
3 Reports to stockholders.
4 Debt security records. (Reserved)
5 Filings with and authorization by regulatory agencies. (Reserved)
6 Organizational documents:
(a) Minute books.
(b) Titles, franchises, licenses.
(c) Permits. (Reserved)
(d) Organization diagrams and charts. (Reserved)
7 Contracts and agreements.
8 Accountants' and auditors' reports.
9 Automatic data processing records.
10 General and subsidiary ledgers.
11 Journals.
12 Journal vouchers and entries.
13 Cash books.
14 Voucher register.
15 Vouchers.
16 Accounts receivable. (Reserved)
17 Records of securities owned. (Reserved)
18 Payroll records. (Reserved)
19 Assignments, attachments, and garnishments. (Reserved)
20 Insurance records.
21 Injuries and damages. (Reserved)
22.1 Production -- Electric (less nuclear).
22.2 Production -- Nuclear.
23 Transmission and distribution -- Electric.
24 Customers service. (Reserved)
25 Records of auxiliary and other operations. (Reserved)
26 Maintenance work orders and job orders.
27 Personnel records. (Reserved)
28 Employees benefit and pension records. (Reserved)
29 Instruction to employees and others. (Reserved)
30 Plant ledgers.
31 Construction work in progress.
32 Retirement work in progress.
33 Summary sheets.
34 Appraisals and valuations.
35 Maps. (Reserved)
36 Engineering records.
37 Contracts and other agreements relating to utility plant.
38 Reclassification of utility plant account records.
39 Accumulated depreciation and depletion of utility plant account
records.
40 Procurements.
41 Material ledgers.
42 Materials and supplies received and issued.
43 Records of sale of scrap and materials and supplies.
44 Inventories of materials and supplies. (Reserved)
45 Customers service applications and contracts.
46 Rate schedules.
47 Customer guarantee deposits. (Reserved)
48 Meter reading sheets and records. (Reserved)
49 Maximum demand pressure temperature.
50 Miscellaneous billing data.
51 Revenue summaries.
52 Customers ledgers. (Reserved)
53 Merchandise sales. (Reserved)
54 Collection reports and records. (Reserved)
55 Customers' account adjustments. (Reserved)
56 Uncollectible accounts. (Reserved)
57 Tax records.
58 Statement of funds and deposits.
59 Records of deposits with banks and others.
60 Records of receipts and disbursements. (Reserved)
61 Statistics.
62 Budgets and other forecasts.
63 Correspondence. (Reserved)
64 Records of predecessor and former associates.
65 Reports to Federal and State regulatory commissions.
66 Copies of advertisements.
(Order 450, 37 FR 6293, Mar. 28, 1972, as amended by Order 258, 47 FR
42725, Sept. 29, 1982; 48 FR 44483, Sept. 29, 1983)
18 CFR 125.3 SUBCHAPTER D -- APPROVED FORMS, FEDERAL POWER ACT
18 CFR 125.3 PART 131 -- FORMS
Sec.
131.20 Application for approval of transfer of license.
131.31 Format No. FERC 561, Annual report of interlocking positions.
131.43 Report of securities issued.
131.50 Certificate of notification.
131.51 Notice of succession in ownership or operation.
131.52 Certificate of concurrence.
131.53 Notice of cancellation.
131.70 Form of application by State and municipal licensees for
exemption from payment of annual charges.
Authority: 16 U.S.C. 797, 825, 825g, 825h.
18 CFR 131.20 Application for approval of transfer of license.
(See 9.1 through 9.10 of this chapter.)
(This application and all accompanying documents shall be submitted
in quadruplicate, together with one additional copy for each interested
State commission)
(1) -------------------- , licensee under the license for Project No.
------ , issued by the Commission on -------------------- (Month, day,
year) and
(2) -------------------- , (hereinafter referred to as the
Transferee).
(3) Hereby jointly and severally apply for the written approval by
the Federal Energy Regulatory Commission of the transfer of the
aforesaid license from the transferor to the transferee and request that
the instrument of such approval by the Commission be made effective as
of the date of conveyance of the project properties; and in support
thereof show the Commission as follows:
(4) The said transferee is:
(a)4044 A citizen of the United States, whereof proof is submitted
herewith as Exhibit A, which is hereby incorporated herein and made a
part hereof;
(b)4 An association of citizens under articles of association, a
certified copy of which as now in effect is attached hereto as exhibit A
and hereby incorporated herein and made a part hereof;
(c)4 A municipality organized under the following statutes:
-------------------- , proof of such organization being submitted
herewith as Exhibits A-1, A-2, etc., which is (are) hereby incorporated
herein and made a part hereof;
(d)5045 A ------------------------ (e.g., private, nonprofit, etc.)
corporation, organized under the laws of the State of
-------------------- , and domesticated in the States of
-------------------- , -------------------- ; certified copies of its
charter or certificate or incorporation, articles of incorporation,
corporate by-laws, and certificates of authority to do business, with
all amendments of each to date, being submitted herewith as exhibits
A-1, A-2, etc., said exhibits being hereby incorporated herein and made
a part hereof;
(5) The transferee submits as (partial) evidence of its compliance
with all applicable State laws as required by section 9(b) of the
Federal Power Act
submitted herewith as exhibits B-1, B-2, etc., and proposes to
complete its showing of such compliance by submitting ------------
to be submitted as exhibits B-3, B-4, etc., at the time it submits
proof of the conveyance to it of the project properties as hereinafter
provided for; 5
(6) The transferee will submit certified copies of all instruments of
conveyance whereby title to the project properties is conveyed to it,
upon the completion of such conveyance, if and when the Commission shall
have given its approval to the proposed transfer;
(7) If and when the Commission shall have given its approval to the
proposed transfer, and upon completion of conveyance of the project
properties to the transferee, the transferor will deliver to the
transferee and the transferee will accept and permanently retain all
license instruments and all maps, plans, specifications, contracts,
reports of engineers, accounts, books, records, and all other papers and
documents relating to the original project and to all additions thereto
and betterments thereof;
(8) The transferor certifies that it has fully complied with the
terms and conditions of its license, as amended, and that it has fully
satisfied and discharged all of its liabilities and obligations
thereunder to the date hereof, and obligates itself to pay all annual
charges accrued under the license to the date of transfer;
(9) Contingent upon the final written approval by the Commission of
the transfer of the license, the transferee accepts all the terms and
conditions of the said license (as amended) and the act, and agrees to
be bound thereby to the same extent as though it were the original
licensee thereunder;
(10) The name, title, and post-office address of the person or
persons to whom correspondence in regard to this application shall be
addressed are as follows:
In witness whereof the transferor has caused its name to be hereunto
signed by ---------------------------- (Name), its
---------------------------- (Title -- chief executive officer), and its
corporate seal to be hereunto affixed by ----------------------------
(Name), its ---------------------------- (Title -- custodian of seal),
thereunto duly authorized, this ------------ day of ---------------- ,
19 ---- ; and the transferee has caused its name to be hereunto signed
by ---------------------------- (Name), its ----------------------------
(Title -- chief executive officer), and its corporate seal to be
hereunto affixed by ---------------------------- (Name), its
---------------------------- (Title -- custodian of seal), thereunto
duly authorized this ---------- day of -------------- , 19 ---- . /6/
(Exact name of transferor)
By
(Name)
(Title)
(Exact name of transferee)
By
(Name)
(Title)
Attest:
(Secretary)
State of
------------------------ being duly sworn deposes and says:
That he is the
(Title of person signing the application) of the
------------------------ (Name of one of applicants), one of the
applicants for approval of transfer of license; that he has read the
foregoing application and knows the contents thereof; and that the same
are true to the best of his knowledge and belief.
(Signature)
Subscribed and sworn to before me, a notary public of the State of
-------------- this -------------- day of -------------- , 19 -- .
State of
-------------------- , -------------------- and
-------------------- , being duly sworn, each for himself, deposes and
says that he is a citizen of the United States of America.
Subscribed and sworn to before me, a notary public of the State of
-------------- this -------------- day of -------------- , 19 ---- .
(Order 141, 12 FR 8588, Dec. 19, 1947, as amended by Order 175, 19 FR
5218, Aug. 18, 1954; Order 541, 57 FR 21734, May 22, 1992)
0444In par. 4 include only the subparagraph which is applicable.
0455This form for application contemplates the filing of the
application and Commission action thereon prior to any conveyance of the
project properties. If the Commission acts favorably upon the
application, it will issue to the applicants an order approving the
transfer of the license. Applicants may then consummate the conveyance
of the project properties and transferee shall submit to the Commission
certified copies of the instruments of such conveyance (see par. 6 of
this form). The transferor shall at the same time make payment of
annual charges to the date of the conveyance (see par. 6 of this form).
The transferor shall at the same time make payment of annual charges to
the date of the conveyance (see par. 8 of this form). The transferee
shall at the same time submit to the Commission final proofs showing its
compliance with state laws. See par. 5 of this form. The transferor
shall at the same time turn over to the transferee all license
instruments and all maps, plans, specifications, contracts, reports of
engineers, accounts, books, records, and all other papers and documents,
relating to the original project and to all additions thereto and
betterments thereof.
5See footnote 5 on preceding page.
/6/ If applicant is a natural citizen modify final paragraph.
/7/ To be separately executed by each of the persons signing the
foregoing application.
/8/ If the applicant is a natural person or an association of
citizens, proof of citizenship is required. Such proof may be made by
affidavit in the form indicated.
18 CFR 131.31 Format No. FERC 561, Annual report of interlocking
positions.
(See 46.4 of this chapter.)
Insert Illus.131A
Insert Illus.131B
(Order 140, 46 FR 22181, Apr. 16, 1981; 46 FR 23048, Apr. 23, 1981;
46 FR 25084, May 5, 1981)
18 CFR 131.43 Report of securities issued.
(See 34.10 of this chapter.)
(Submit an original and four copies.)
(Order 141, 12 FR 8591, Dec. 19, 1947, as amended by Order 182, 46 FR
50517, Oct. 14, 1981)
18 CFR 131.50 Certificate of notification.
(See 34.1(c)(2) of this chapter. If the aggregate amount of the
issuance reported herein, together with all other outstanding notes and
drafts with a maturity of 1 year or less is in excess of 5 percent of
the par value of the outstanding securities at the date of the issuance
in accordance with 34.1(c)(2) of this chapter, the respondent shall
file an application pursuant to Part 34 of this chapter.)
(Submit an original and four copies.)
(Name of Public Utility)
(Address of Public Utility)
This is to certify that the following are the facts relating to an
issuance entered into by the above-named public utility to which the
provisions of section 204(e) of the Federal Power Act are applicable:
(1) Date of issuance, renewal, or assumption.
(2) Description of the terms of the note or draft including the
amount, payee, interest rate and maturity date.
(3) Aggregate amount of such note or draft, and all other outstanding
notes and drafts of a maturity of 1 year or less on which the public
utility is primarily or secondarily liable at the date of this issuance.
(4) Total par value (or, in the case of securities having no par
value, the fair market value as of the date of this issuance) of all
other securities outstanding at the date of this issuance.
(5) Full details on how fair market value of securities having no par
value was calculated at the date of this issuance of securities.
(6) Date of State authorization and docket number, if applicable.
(Corporate Seal)
(Name and title of person who signs this certificate)
Subscribed and sworn to before me this ------ day of ---------- , 19
-- .
(Notary public)
Only original need be verified.
(Order 182, 46 FR 50517, Oct. 14, 1981)
18 CFR 131.51 Notice of succession in ownership or operation.
(See 35.1 through 35.21 of this chapter.)
The
(Exact name of new owner, receiver, or trustee)
(Address)
on this -------- day of ------------ , 19 ---- , hereby adopts,
ratifies, and makes his own, or its own, in every respect all applicable
rate schedules, and supplements thereto, listed below, heretofore filed
with the Federal Energy Regulatory Commission by --------------------
(Exact name of predecessor)
effective
(Effective date of change in ownership or operation)
(List all Rate Schedule F.E.R.C. numbers adopted)
(Exact name of successor)
By
(Title)
(Order 141, 12 FR 8591, Dec. 19, 1947, as amended by Order 271, 28 FR
11404, Oct. 24, 1963; Order 541, 57 FR 21734, May 22, 1992)
18 CFR 131.52 Certificate of concurrence.
(See 35.1 through 35.21 of this chapter.)
This is to certify that
(Name of public utility
concurring)
assents to and concurs in the rate schedule (rate schedule
supplement) described below, which the ----------------------------
(Name of public utility filing rate schedule) has filed, and hereby
files this certificate of concurrence in lieu of the filing of the rate
schedule (rate schedule supplement) specified.
(Here give exact description of rate schedule or supplement,
including F.E.R.C. number)
(Name of public utility)
By
(Title)
Dated ---------------------------- 19 ---- .
(Order 141, 12 FR 8591, Dec. 19, 1947, as amended by Order 271, 28 FR
11404, Oct. 24, 1963; Order 541, 57 FR 21734, May 22, 1992)
18 CFR 131.53 Notice of cancellation.
(See 35.1 through 35.21 of this chapter.)
Notice is hereby given that effective the ---- day of ------------ 19
---- , Rate Schedule F.E.R.C. No. ------ , effective date ------------
and filed with the Federal Energy Regulatory Commission by
--------------------------------
(Name of public utility filing rate schedule) is to be cancelled.
Notice of the proposed cancellation has been served upon the
following:
(Name of public utility)
By
(Title)
Dated ---------------------------- , 19 ---- .
(Order 141, 12 FR 8591, Dec. 19, 1947, as amended by Order 271, 28 FR
11404, Oct. 24; Order 541, 57 FR 21734, May 22, 1992)
18 CFR 131.70 Form12 of application by State and municipal licensees
for exemption from payment of annual charges.
(See 11.24 of this chapter.) Application by State and municipal
licensees for exemption from payment of annual charges must be prepared
on this form. The form specifies that in filing application for
exemption, the following data and schedules shall be submitted:
1. Name and address of correspondent;
2. Basis for claimed exemption;
3. Generating plants owned or operated by licensee;
4. Transmission lines and distribution lines;
5. KWH of power generated, purchased and interchanged;
6. Power sold or otherwise disposed of (kwh);
7. Power interchange (in detail);
8. Statement of unusual conditions attending the disposition of
electric power;
9. Book cost of electric property;
10. Operating revenues;
11. Operating expenses and other deductions from revenues;
12. Affidavit.
(Order 143, 13 FR 6682, Nov. 13, 1948)
12Copies of this form may be obtained upon request from the Federal
Energy Regulatory Commission.
18 CFR 131.70 PART 141 -- STATEMENTS AND REPORTS (SCHEDULES)
Sec.
141.1 FERC Form No. 1, Annual report of Major electric utilities,
licensees and others.
141.2 FERC Form No. 1-F, Annual report for Nonmajor public utilities
and licensees.
141.14 Form No. 80, Licensed Hydropower Development Recreation
Report.
141.15 Annual Conveyance Report.
141.51 Form No. FERC-714, Annual Electric Control and Planning Area
Report.
141.61 FERC Form No. 423, Monthly Report of Cost and Quality of
Fuels for Electric Plants.
141.100 Original cost statement of utility property.
Authority: 16 U.S.C. 791a-828c, 2601-2645; 42 U.S.C. 7102-7352.
18 CFR 141.1 FERC Form No. 1, Annual report of Major electric
utilities, licensees and others.
(a) Prescription. The Form of Annual Report for Major electric
utilities, licensees and others, designated herein as FERC Form No. 1,
is prescribed for the reporting year 1981 and each year thereafter.
(b) Filing requirements -- (1) Who must file -- (i) Generally. Each
Major electric utility (as defined in Part 101 of Subchapter C of this
chapter) and other entity, i.e., each corporation, person, or licensee
as defined in section 3 of the Federal Power Act (16 U.S.C. 792 et
seq.), including any agency, authority or other legal entity or
instrumentality engaged in generation, transmission, distribution, or
sale of electric energy, however produced, throughout the United States
and its possessions, having sales or transmission service equal to Major
as defined above, whether or not the jurisdiction of the Commission is
otherwise involved, shall prepare and file with the Commission an
original and conformed copies of the FERC Form No. 1 pursuant to the
General Instructions set out in that form.
(ii) Exceptions. This report form is not prescribed for any agency,
authority or instrumentality of the United States, nor is it prescribed
for municipalities as defined in section 3 of the Federal Power Act;
(i.e., a city, county, irrigation district, drainage district, or other
political subdivision or agency of a State competent under the laws
thereof to carry on the business of developing, transmitting, utilizing,
or distributing power).
(2) When to file. This report shall be filed on or before April 30
of each year for the previous calendar year, beginning April 30, 1982
for the 1981 calendar year.
(Order 200, 47 FR 1280, Jan. 12, 1982, as amended by Order 390, 49 FR
32515, Aug. 14, 1984)
18 CFR 141.2 FERC Form No. 1-F, Annual report for Nonmajor public
utilities and licensees.
(a) Prescription. The form of Annual Report for Nonmajor Public
Utilities and Licensees, designated herein as FERC Form No. 1-F, is
prescribed for the year 1980 and each year thereafter.
(b) Filing requirements -- (1) Who must file -- (i) Generally. Each
public utility and licensee as defined by the Federal Power Act, which
is considered Nonmajor as defined in Part 101 of this chapter, shall
prepare and file with the Commission an original and conformed copies of
FERC Form No. 1-F pursuant to the General Instructions set out in that
form.
(ii) Exceptions. FERC Form No. 1-F is not prescribed for any
municipality as defined in Section 3 of the Federal Power Act, i.e., a
city, county, irrigation district, drainage district, or other political
subdivision or agency of a State competent under the laws thereof to
carry on the business of developing, transmitting, utilizing, or
distributing power.
(2) When to file. Such report shall be filed on or before March 31
of each year for the previous calendar year, beginning with a filing by
March 31, 1981 for the 1980 calendar year.
(Order 101, 45 FR 60899, Sept. 15, 1980, as amended by Order 390, 49
FR 32515, Aug. 14, 1984; 50 FR 5744, Feb. 12, 1985)
18 CFR 141.14 Form No. 80, Licensed Hydropower Development Recreation
Report.
The form of the report, Licensed Hydropower Development Recreation
Report, designated as FERC Form No. 80, for use by licensees in
reporting information with respect to existing and potential
recreational use at developments within projects under major and minor
license, is approved and prescribed for use as provided in 8.11 of this
chapter.
(46 FR 50059, Oct. 9, 1981)
18 CFR 141.15 Annual Conveyance Report.
If a licensee of a hydropower project is required by its license to
file with the Commission an annual report of conveyances of easements or
rights-of-way across, or leases of, project lands, the report must be
filed only if such a conveyance or lease of project lands has occurred
in the previous year.
(Order 540, 57 FR 21738, May 22, 1992)
18 CFR 141.51 Form No. FERC-714, Annual Electric Control and Planning
Area Report.
(a) Who must file. (1) Any electric utility, as defined under
section 3(4) of the Public Utility Regulatory Policies Act, 16 U.S.C.
2602, operating a control area, and any group of electric utilities,
which by way of contractual arrangements operates as a single control
area, must complete and file the applicable schedules in Form No.
FERC-714 with the Federal Energy Regulatory Commission.
(2) Any electric utility, or group of electric utilities, that
constitutes a planning area and that has a peak load greater than 200
megawatts (MW) based on net energy for load for the reporting year must
complete applicable schedules in Form No. FERC-714.
(b) When to file. Form No. FERC-714 must be filed on or before May
1 for the preceding calendar year, beginning with data covering calendar
year 1991, which must be filed on or before May 1, 1992.
(c) What to file. An original and three conformed copies of Form No.
FERC-714, ''Annual Electric Control and Planning Area Report,'' must be
filed with the Federal Energy Regulatory Commission, in accordance with
the instructions in that form and in this section.
(Order 531, 55 FR 51281, Dec. 13, 1990, as amended by Order 535, 56
FR 41454, Aug. 21, 1991)
18 CFR 141.61 FERC Form No. 423, Monthly Report of Cost and Quality of
Fuels for Electric Plants.
Every electric power producer having electric generating plants with
a rated steam-electric generating capacity of 50 megawatts or greater
during the reporting month must file with the Commission for each such
plant an original and conformed copies of FERC Form No. 423, ''Monthly
Report of Cost and Quality of Fuels for Electric Plants'' pursuant to
the General Instructions set out in that form. Form No. 423 must be
filed on or before the 45th day after the end of each reporting month,
beginning with the reporting period of January, 1983.
(Order 264, 47 FR 44726, Oct. 12, 1982)
18 CFR 141.100 Original cost statement of utility property.
Any public utility or licensee becoming subject to the jurisdiction
of the Commission shall file, insofar as applicable, the following
statements properly sworn to by the officer in responsible charge of
their compilation:
Statement A showing in outline the origin and development of the
company including particularly a description (giving names of parties
and dates) of each consolidation and merger to which the company, or a
predecessor, was a party and each acquisition of an electric operating
unit or system.
Statement B showing for each acquisition by the reporting company or
any of its predecessors of an electric operating unit or system, the
original cost, estimated, if not known, the cost of such company and the
amount entered in the books in respect thereto as of the date of
acquisition. If the depreciation, retirement, or amortization reserve
was adjusted as of the date of acquisition and in connection therewith,
a full disclosure of the pertinent facts should be made. The difference
between the original cost and the amount entered in respect thereto of
each acquisition of an electric operating unit or system, as of the date
of acquisition, should be clearly stated, and a summary of all
transactions affecting such difference through the end of the calendar
year prior to the year in which the filing is made, and the resultant
amount at the latter date, should be set forth. The amount to be
included in account 114, Electric Plant Acquisition Adjustments, shall
be subdivided so as to show the amounts applicable to (1) electric plant
in service, (2) electric plant leased to others, and (3) electric plant
held for future use. Whenever practical, such amount shall be
classified according to nature, i.e., going value, structural value,
etc.
Where estimates are used in arriving at original cost or the amount
to be included in account 114, a full disclosure of the method and
underlying facts should be given. The method of determining the
original cost of the electric plant acquired as operating units or
systems should be described in sufficient detail to permit a clear
understanding of the nature of the investigations which were made for
that purpose.
Statement C showing any amounts arrived at by appraisals in the
electric plant accounts (and not eliminated) in lieu of cost to the
reporting company. This statement should give the full journal entry at
the time the appraisal was originally recorded and if the entry had the
effect of appreciating or writing up the electric plant account, the
amount of the appreciation of writeup should be traced, by proper
description and explanation of changes, from the date recorded through
the end of the calendar year prior to the year in which the filing is
made.
Statement D showing electric plant as classified in the books of
account immediately prior to reclassification in accordance with the
Uniform System of Accounts, including, under a descriptive heading, any
unclassified amounts applicable jointly to the electric department and
other departments of the utility.
Statement E showing summary of adjustments necessary to state
accounts 101, 103-107, 114, and 116, as prescribed in the Uniform System
of Accounts.
Statement F showing electric plant classified according to the
accounts prescribed in the Uniform System of Accounts, and showing also
the amount includible in account 116, Other Electric Plant Adjustments.
Statement G giving a comparative balance sheet showing the accounts
and amounts appearing in the books before the adjusting entries have
been made and after such entries shall have been made.
Statement H giving a suggested plan for depreciating, amortizing, or
otherwise disposing in whole or in part of the amounts includible in
account 114, Electric Plant Acquisition Adjustments, and account 116,
Other Electric Plant Adjustments.
Statement I giving the following statistical information relative to
electric plant.
Steam production. Separately for each steam plant: Name of plant,
date of construction, nameplate generating capacity (kw.) as originally
constructed and as at present, also nameplate capacity and date of
installation of each addition to generating capacity. The original
cost, where available, by accounts 310 and 316, of each steam production
plant.
Hydraulic production. Separately for each hydroplant: Name of
plant, date of construction, capacity of reservoirs (acre-feet),
nameplate generating capacity (kw.) as originally constructed and as at
present, also nameplate capacity and date of installation of each
addition to generating capacity. The original cost, where available, by
accounts 330 and 336, of each hydraulic production plant.
Internal combustion engine production. For each internal combustion
engine plant: Name of plant, date of construction, nameplate generating
capacity (kw.) as originally constructed and as at present, also
nameplate capacity and date of installation of each addition to
generating capacity. The original cost, where available, by accounts
340 to 346, of each internal combustion engine production plant.
Overhead transmission lines. For each overhead transmission line or
for each group of transmission lines of the same voltage, same general
type of construction, and same number of circuits per structure; the
voltage, length in miles, type of construction, kind and size of
conductor. The original cost, where available, by accounts 350, 352,
354, 355, 356, and 359, of each such line or group of lines.
Underground transmission lines. For each underground transmission
line or for each group of transmission lines of the same voltage, same
general type of construction and same number of circuits per structure:
The voltage length in miles and type of construction. The original
cost, where available, by accounts 350, 352, 357, 358, and 359, of each
such line or group of lines.
Transmission substations. For each substation: Function, capacity
(kva), high and low voltages of transformers, description and capacity
of special items of equipment.
Overhead system. 1057 Number of pole and circuit miles, number of
active meters or services connected (if available), description and
number of each type of pole or tower.
Underground system. 2058 Number of circuit miles, number of active
meters or services connected (if available), description of type of
construction and general statement of any special construction problem.
Distribution substation. General description of number, capacity
(kva) and high and low voltages of transformers.
Line transformers. Number and capacity.
Street lighting and signal systems. Description and number of each
type of street lighting standard, number and wattage of lamps, and
description of signal system.
Description of principal structures and improvements.
Number and type of transportation vehicles and appurtenant equipment.
Description of store, shop, and laboratory equipment.
Description of communication equipment.
Description of miscellaneous equipment.
(38 FR 7214, Mar. 19, 1973. Redesignated by Order 541, 57 FR 21734,
May 22, 1992)
0571If number of active meters or services is not available
separately for overhead and underground systems, report totals.
0582To be shown on the original when tendered for filing with the
Commission of every paper as specified in 1.17(f) of this chapter.
18 CFR 141.100 PARTS 142-149 -- (RESERVED)
18 CFR 141.100 FINDING AIDS
A list of CFR titles, subtitles, chapters, subchapters and parts and
an alphabetical list of agencies publishing in the CFR are included in
the CFR Index and Finding Aids volume to the Code of Federal Regulations
which is published separately and revised annually.
Table of CFR Titles and Chapters
Alphabetical List of Agencies Appearing in the CFR
Table of OMB Control Numbers
List of CFR Sections Affected
Chap.
18 CFR 141.100 Table of CFR Titles and Chapters
18 CFR 141.100 Title 1 -- General Provisions
I Administrative Committee of the Federal Register (Parts 1 -- 49)
II Office of the Federal Register (Parts 50 -- 299)
III Administrative Conference of the United States (Parts 300 -- 399)
IV Miscellaneous Agencies (Parts 400 -- 500)
18 CFR 141.100 Title 2 -- (Reserved)
18 CFR 141.100 Title 3 -- The President
I Executive Office of the President (Parts 100 -- 199)
18 CFR 141.100 Title 4 -- Accounts
I General Accounting Office (Parts 1 -- 99)
II Federal Claims Collection Standards (General Accounting Office --
Department of Justice) (Parts 100 -- 299)
18 CFR 141.100 Title 5 -- Administrative Personnel
I Office of Personnel Management (Parts 1 -- 1199)
II Merit Systems Protection Board (Parts 1200 -- 1299)
III Office of Management and Budget (Parts 1300 -- 1399)
IV Advisory Committee on Federal Pay (Parts 1400 -- 1499)
V The International Organizations Employees Loyalty Board (Parts 1500
-- 1599)
VI Federal Retirement Thrift Investment Board (Parts 1600 -- 1699)
VII Advisory Commission on Intergovernmental Relations (Parts 1700 --
1799)
VIII Office of Special Counsel (Parts 1800 -- 1899)
IX Appalachian Regional Commission (Parts 1900 -- 1999)
XI United States Soldiers' and Airmen's Home (Parts 2100 -- 2199)
XIV Federal Labor Relations Authority, General Counsel of the Federal
Labor Relations Authority and Federal Service Impasses Panel (Parts 2400
-- 2499)
XV Office of Administration, Executive Office of the President (Parts
2500 -- 2599)
XVI Office of Government Ethics (Parts 2600 -- 2699)
18 CFR 141.100 Title 6 (Reserved)
18 CFR 141.100 Title 7 -- Agriculture
Subtitle A -- Office of the Secretary of Agriculture (Parts 0 -- 26)
Subtitle B -- Regulations of the Department of Agriculture
I Agricultural Marketing Service (Standards, Inspections, Marketing
Practices), Department of Agriculture (Parts 27 -- 209)
II Food and Nutrition Service, Department of Agriculture (Parts 210
-- 299)
III Animal and Plant Health Inspection Service, Department of
Agriculture (Parts 300 -- 399)
IV Federal Crop Insurance Corporation, Department of Agriculture
(Parts 400 -- 499)
V Agricultural Research Service, Department of Agriculture (Parts 500
-- 599)
VI Soil Conservation Service, Department of Agriculture (Parts 600 --
699)
VII Agricultural Stabilization and Conservation Service (Agricultural
Adjustment), Department of Agriculture (Parts 700 -- 799)
VIII Federal Grain Inspection Service, Department of Agriculture
(Parts 800 -- 899)
IX Agricultural Marketing Service (Marketing Agreements and Orders;
Fruits, Vegetables, Nuts), Department of Agriculture (Parts 900 -- 999)
X Agricultural Marketing Service (Marketing Agreements and Orders;
Milk), Department of Agriculture (Parts 1000 -- 1199)
XI Agricultural Marketing Service (Marketing Agreements and Orders;
Miscellaneous Commodities), Department of Agriculture (Parts 1200 --
1299)
XIV Commodity Credit Corporation, Department of Agriculture (Parts
1400 -- 1499)
XV Foreign Agricultural Service, Department of Agriculture (Parts
1500 -- 1599)
XVI Rural Telephone Bank, Department of Agriculture (Parts 1600 --
1699)
XVII Rural Electrification Administration, Department of Agriculture
(Parts 1700 -- 1799)
XVIII Farmers Home Administration, Department of Agriculture (Parts
1800 -- 2099)
XXI Foreign Economic Development Service, Department of Agriculture
(Parts 2100 -- 2199)
XXII Office of International Cooperation and Development, Department
of Agriculture (Parts 2200 -- 2299)
XXV Office of the General Sales Manager, Department of Agriculture
(Parts 2500 -- 2599)
XXVI Office of Inspector General, Department of Agriculture (Parts
2600 -- 2699)
XXVII Office of Information Resources Management, Department of
Agriculture (Parts 2700 -- 2799)
XXVIII Office of Operations, Department of Agriculture (Parts 2800 --
2899)
XXIX Office of Energy, Department of Agriculture (Parts 2900 -- 2999)
XXX Office of Finance and Management, Department of Agriculture
(Parts 3000 -- 3099)
XXXI Office of Environmental Quality, Department of Agriculture
(Parts 3100 -- 3199)
XXXII Office of Grants and Program Systems, Department of Agriculture
(Parts 3200 -- 3299)
XXXIII Office of Transportation, Department of Agriculture (Parts
3300 -- 3399)
XXXIV Cooperative State Research Service, Department of Agriculture
(Parts 3400 -- 3499)
XXXVI National Agricultural Statistics Service, Department of
Agriculture (Parts 3600 -- 3699)
XXXVII Economic Research Service, Department of Agriculture (Parts
3700 -- 3799)
XXXVIII World Agricultural Outlook Board, Department of Agriculture
(Parts 3800 -- 3899)
XXXIX Economic Analysis Staff, Department of Agriculture (Parts 3900
-- 3999)
XL Economics Management Staff, Department of Agriculture (Parts 4000
-- 4099)
XLI National Agricultural Library, Department of Agriculture (Part
4100)
XLII Rural Development Administration, Department of Agriculture
(Part 4284 )
18 CFR 141.100 Title 8 -- Aliens and Nationality
I Immigration and Naturalization Service, Department of Justice
(Parts 1 -- 499)
18 CFR 141.100 Title 9 -- Animals and Animal Products
I Animal and Plant Health Inspection Service, Department of
Agriculture (Parts 1 -- 199)
II Packers and Stockyards Administration, Department of Agriculture
(Parts 200 -- 299)
III Food Safety and Inspection Service, Meat and Poultry Inspection,
Department of Agriculture (Parts 300 -- 399)
18 CFR 141.100 Title 10 -- Energy
I Nuclear Regulatory Commission (Parts 0 -- 199)
II Department of Energy (Parts 200 -- 699)
III Department of Energy (Parts 700 -- 999)
X Department of Energy (General Provisions) (Parts 1000 -- 1099)
XV Office of the Federal Inspector for the Alaska Natural Gas
Transportation System (Parts 1500 -- 1599)
XVII Defense Nuclear Facilities Safety Board (Parts 1700 -- 1799)
18 CFR 141.100 Title 11 -- Federal Elections
I Federal Election Commission (Parts 1 -- 9099)
18 CFR 141.100 Title 12 -- Banks and Banking
I Comptroller of the Currency, Department of the Treasury (Parts 1 --
199)
II Federal Reserve System (Parts 200 -- 299)
III Federal Deposit Insurance Corporation (Parts 300 -- 399)
IV Export-Import Bank of the United States (Parts 400 -- 499)
V Office of Thrift Supervision, Department of The Treasury (Parts 500
-- 599)
VI Farm Credit Administration (Parts 600 -- 699)
VII National Credit Union Administration (Parts 700 -- 799)
VIII Federal Financing Bank (Parts 800 -- 899)
IX Federal Housing Finance Board (Parts 900 -- 999)
XI Federal Financial Institutions Examination Council (Parts 1100 --
1199)
XIV Farm Credit System Insurance Corporation (Parts 1400 -- 1499)
XV Thrift Depositor Protection Oversight Board (Parts 1500 -- 1599)
XVI Resolution Trust Corporation (Parts 1600 -- 1699)
18 CFR 141.100 Title 13 -- Business Credit and Assistance
I Small Business Administration (Parts 1 -- 199)
III Economic Development Administration, Department of Commerce
(Parts 300 -- 399)
18 CFR 141.100 Title 14 -- Aeronautics and Space
I Federal Aviation Administration, Department of Transportation
(Parts 1 -- 199)
II Office of the Secretary, Department of Transportation (Aviation
Proceedings) (Parts 200 -- 399)
III Office of Commercial Space Transportation, Department of
Transportation (Parts 400 -- 499)
V National Aeronautics and Space Administration (Parts 1200 -- 1299)
18 CFR 141.100 Title 15 -- Commerce and Foreign Trade
Subtitle A -- Office of the Secretary of Commerce (Parts 0 -- 29)
Subtitle B -- Regulations Relating to Commerce and Foreign Trade
I Bureau of the Census, Department of Commerce (Parts 30 -- 199)
II National Institute of Standards and Technology, Department of
Commerce (Parts 200 -- 299)
III International Trade Administration, Department of Commerce (Parts
300 -- 399)
IV Foreign-Trade Zones Board (Parts 400 -- 499)
VII Bureau of Export Administration, Department of Commerce (Parts
700 -- 799)
VIII Bureau of Economic Analysis, Department of Commerce (Parts 800
-- 899)
IX National Oceanic and Atmospheric Administration, Department of
Commerce (Parts 900 -- 999)
XI Technology Administration, Department of Commerce (Parts 1100 --
1199)
XII United States Travel and Tourism Administration, Department of
Commerce (Parts 1200 -- 1299)
XIII East-West Foreign Trade Board (Parts 1300 -- 1399)
XIV Minority Business Development Agency (Parts 1400 -- 1499)
Subtitle C -- Regulations Relating to Foreign Trade Agreements
XX Office of the United States Trade Representative (Parts 2000 --
2099)
Subtitle D -- Regulations Relating to Telecommunications and
Information
XXIII National Telecommunications and Information Administration,
Department of Commerce (Parts 2300 -- 2399)
18 CFR 141.100 Title 16 -- Commercial Practices
I Federal Trade Commission (Parts 0 -- 999)
II Consumer Product Safety Commission (Parts 1000 -- 1799)
18 CFR 141.100 Title 17 -- Commodity and Securities Exchanges
I Commodity Futures Trading Commission (Parts 1 -- 199)
II Securities and Exchange Commission (Parts 200 -- 399)
IV Department of the Treasury (Parts 400 -- 499)
18 CFR 141.100 Title 18 -- Conservation of Power and Water Resources
I Federal Energy Regulatory Commission, Department of Energy (Parts 1
-- 399)
III Delaware River Basin Commission (Parts 400 -- 499)
VI Water Resources Council (Parts 700 -- 799)
VIII Susquehanna River Basin Commission (Parts 800 -- 899)
XIII Tennessee Valley Authority (Parts 1300 -- 1399)
18 CFR 141.100 Title 19 -- Customs Duties
I United States Customs Service, Department of the Treasury (Parts 1
-- 199)
II United States International Trade Commission (Parts 200 -- 299)
III International Trade Administration, Department of Commerce (Parts
300 -- 399)
18 CFR 141.100 Title 20 -- Employees' Benefits
I Office of Workers' Compensation Programs, Department of Labor
(Parts 1 -- 199)
II Railroad Retirement Board (Parts 200 -- 399)
III Social Security Administration, Department of Health and Human
Services (Parts 400 -- 499)
IV Employees' Compensation Appeals Board, Department of Labor (Parts
500 -- 599)
V Employment and Training Administration, Department of Labor (Parts
600 -- 699)
VI Employment Standards Administration, Department of Labor (Parts
700 -- 799)
VII Benefits Review Board, Department of Labor (Parts 800 -- 899)
VIII Joint Board for the Enrollment of Actuaries (Parts 900 -- 999)
IX Office of the Assistant Secretary for Veterans' Employment and
Training, Department of Labor (Parts 1000 -- 1099)
18 CFR 141.100 Title 21 -- Food and Drugs
I Food and Drug Administration, Department of Health and Human
Services (Parts 1 -- 1299)
II Drug Enforcement Administration, Department of Justice (Parts 1300
-- 1399)
III Office of National Drug Control Policy (Parts 1400 -- 1499)
18 CFR 141.100 Title 22 -- Foreign Relations
I Department of State (Parts 1 -- 199)
II Agency for International Development, International Development
Cooperation Agency (Parts 200 -- 299)
III Peace Corps (Parts 300 -- 399)
IV International Joint Commission, United States and Canada (Parts
400 -- 499)
V United States Information Agency (Parts 500 -- 599)
VI United States Arms Control and Disarmament Agency (Parts 600 --
699)
VII Overseas Private Investment Corporation, International
Development Cooperation Agency (Parts 700 -- 799)
IX Foreign Service Grievance Board Regulations (Parts 900 -- 999)
X Inter-American Foundation (Parts 1000 -- 1099)
XI International Boundary and Water Commission, United States and
Mexico, United States Section (Parts 1100 -- 1199)
XII United States International Development Cooperation Agency (Parts
1200 -- 1299)
XIII Board for International Broadcasting (Parts 1300 -- 1399)
XIV Foreign Service Labor Relations Board; Federal Labor Relations
Authority; General Counsel of the Federal Labor Relations Authority;
and the Foreign Service Impasse Disputes Panel (Parts 1400 -- 1499)
XV African Development Foundation (Parts 1500 -- 1599)
XVI Japan-United States Friendship Commission (Parts 1600 -- 1699)
18 CFR 141.100 Title 23 -- Highways
I Federal Highway Administration, Department of Transportation (Parts
1 -- 999)
II National Highway Traffic Safety Administration and Federal Highway
Administration, Department of Transportation (Parts 1200 -- 1299)
III National Highway Traffic Safety Administration, Department of
Transportation (Parts 1300 -- 1399)
18 CFR 141.100 Title 24 -- Housing and Urban Development
Subtitle A -- Office of the Secretary, Department of Housing and
Urban Development (Parts 0 -- 99)
Subtitle B -- Regulations Relating to Housing and Urban Development
I Office of Assistant Secretary for Equal Opportunity, Department of
Housing and Urban Development (Parts 100 -- 199)
II Office of Assistant Secretary for Housing-Federal Housing
Commissioner, Department of Housing and Urban Development (Parts 200 --
299)
III Government National Mortgage Association, Department of Housing
and Urban Development (Parts 300 -- 399)
V Office of Assistant Secretary for Community Planning and
Development, Department of Housing and Urban Development (Parts 500 --
599)
VI Office of Assistant Secretary for Community Planning and
Development, Department of Housing and Urban Development (Parts 600 --
699)
VII Office of the Secretary, Department of Housing and Urban
Development (Section 8 Housing Assistance Programs and Public and Indian
Housing Programs) (Parts 700 -- 799)
VIII Office of the Assistant Secretary for Housing -- Federal Housing
Commissioner, Department of Housing and Urban Development (Section 8
Housing Assistance Programs and Section 202 Direct Loan Program) (Parts
800 -- 899)
IX Office of Assistant Secretary for Public and Indian Housing,
Department of Housing and Urban Development (Parts 900 -- 999)
X Office of Assistant Secretary for Housing -- Federal Housing
Commissioner, Department of Housing and Urban Development (Interstate
Land Sales Registration Program) (Parts 1700 -- 1799)
XI Solar Energy and Energy Conservation Bank, Department of Housing
and Urban Development (Parts 1800 -- 1899)
XII Office of Inspector General, Department of Housing and Urban
Development (Parts 2000 -- 2099)
XV Mortgage Insurance and Loan Programs under the Emergency
Homeowners' Relief Act, Department of Housing and Urban Development
(Parts 2700 -- 2799)
XX Office of Assistant Secretary for Housing -- Federal Housing
Commissioner, Department of Housing and Urban Development (Parts 3200 --
3699)
XXV Neighborhood Reinvestment Corporation (Parts 4100 -- 4199)
18 CFR 141.100 Title 25 -- Indians
I Bureau of Indian Affairs, Department of the Interior (Parts 1 --
299)
II Indian Arts and Crafts Board, Department of the Interior (Parts
300 -- 399)
III National Indian Gaming Commission (Parts 500 -- 599)
IV Office of Navajo and Hopi Indian Relocation (Parts 700 -- 799)
18 CFR 141.100 Title 26 -- Internal Revenue
I Internal Revenue Service, Department of the Treasury (Parts 1 --
799)
18 CFR 141.100 Title 27 -- Alcohol, Tobacco Products and Firearms
I Bureau of Alcohol, Tobacco and Firearms, Department of the Treasury
(Parts 1 -- 299)
18 CFR 141.100 Title 28 -- Judicial Administration
I Department of Justice (Parts 0 -- 199)
III Federal Prison Industries, Inc., Department of Justice (Parts 300
-- 399)
V Bureau of Prisons, Department of Justice (Parts 500 -- 599)
VI Offices of Independent Counsel, Department of Justice (Parts 600
-- 699)
VII Office of Independent Counsel (Parts 700 -- 799)
18 CFR 141.100 Title 29 -- Labor
Subtitle A -- Office of the Secretary of Labor (Parts 0 -- 99)
Subtitle B -- Regulations Relating to Labor
I National Labor Relations Board (Parts 100 -- 199)
II Bureau of Labor-Management Relations and Cooperative Programs,
Department of Labor (Parts 200 -- 299)
III National Railroad Adjustment Board (Parts 300 -- 399)
IV Office of Labor-Management Standards, Department of Labor (Parts
400 -- 499)
V Wage and Hour Division, Department of Labor (Parts 500 -- 899)
IX Construction Industry Collective Bargaining Commission (Parts 900
-- 999)
X National Mediation Board (Parts 1200 -- 1299)
XII Federal Mediation and Conciliation Service (Parts 1400 -- 1499)
XIV Equal Employment Opportunity Commission (Parts 1600 -- 1699)
XVII Occupational Safety and Health Administration, Department of
Labor (Parts 1900 -- 1999)
XX Occupational Safety and Health Review Commission (Parts 2200 --
2499)
XXV Pension and Welfare Benefits Administration, Department of Labor
(Parts 2500 -- 2599)
XXVI Pension Benefit Guaranty Corporation (Parts 2600 -- 2699)
XXVII Federal Mine Safety and Health Review Commission (Parts 2700 --
2799)
18 CFR 141.100 Title 30 -- Mineral Resources
I Mine Safety and Health Administration, Department of Labor (Parts 1
-- 199)
II Minerals Management Service, Department of the Interior (Parts 200
-- 299)
III Board of Surface Mining and Reclamation Appeals, Department of
the Interior (Parts 300 -- 399)
IV Geological Survey, Department of the Interior (Parts 400 -- 499)
VI Bureau of Mines, Department of the Interior (Parts 600 -- 699)
VII Office of Surface Mining Reclamation and Enforcement, Department
of the Interior (Parts 700 -- 999)
18 CFR 141.100 Title 31 -- Money and Finance: Treasury
Subtitle A -- Office of the Secretary of the Treasury (Parts 0 -- 50)
Subtitle B -- Regulations Relating to Money and Finance
I Monetary Offices, Department of the Treasury (Parts 51 -- 199)
II Fiscal Service, Department of the Treasury (Parts 200 -- 399)
IV Secret Service, Department of the Treasury (Parts 400 -- 499)
V Office of Foreign Assets Control, Department of the Treasury (Parts
500 -- 599)
VI Bureau of Engraving and Printing, Department of the Treasury
(Parts 600 -- 699)
VII Federal Law Enforcement Training Center, Department of the
Treasury (Parts 700 -- 799)
VIII Office of International Investment, Department of the Treasury
(Parts 800 -- 899)
18 CFR 141.100 Title 32 -- National Defense
Subtitle A -- Department of Defense
I Office of the Secretary of Defense (Parts 1 -- 399)
V Department of the Army (Parts 400 -- 699)
VI Department of the Navy (Parts 700 -- 799)
VII Department of the Air Force (Parts 800 -- 1099)
Subtitle B -- Other Regulations Relating to National Defense
XII Defense Logistics Agency (Parts 1200 -- 1299)
XVI Selective Service System (Parts 1600 -- 1699)
XIX Central Intelligence Agency (Parts 1900 -- 1999)
XX Information Security Oversight Office (Parts 2000 -- 2099)
XXI National Security Council (Parts 2100 -- 2199)
XXIV Office of Science and Technology Policy (Parts 2400 -- 2499)
XXVII Office for Micronesian Status Negotiations (Parts 2700 -- 2799)
XXVIII Office of the Vice President of the United States (Parts 2800
-- 2899)
XXIX Presidential Commission on the Assignment of Women in the Armed
Forces (Part 2900)
18 CFR 141.100 Title 33 -- Navigation and Navigable Waters
I Coast Guard, Department of Transportation (Parts 1 -- 199)
II Corps of Engineers, Department of the Army (Parts 200 -- 399)
IV Saint Lawrence Seaway Development Corporation, Department of
Transportation (Parts 400 -- 499)
18 CFR 141.100 Title 34 -- Education
Subtitle A -- Office of the Secretary, Department of Education (Parts
1 -- 99)
Subtitle B -- Regulations of the Offices of the Department of
Education
I Office for Civil Rights, Department of Education (Parts 100 -- 199)
II Office of Elementary and Secondary Education, Department of
Education (Parts 200 -- 299)
III Office of Special Education and Rehabilitative Services,
Department of Education (Parts 300 -- 399)
IV Office of Vocational and Adult Education, Department of Education
(Parts 400 -- 499)
V Office of Bilingual Education and Minority Languages Affairs,
Department of Education (Parts 500 -- 599)
VI Office of Postsecondary Education, Department of Education (Parts
600 -- 699)
VII Office of Educational Research and Improvement, Department of
Education (Parts 700 -- 799)
18 CFR 141.100 Title 35 -- Panama Canal
I Panama Canal Regulations (Parts 1 -- 299)
18 CFR 141.100 Title 36 -- Parks, Forests, and Public Property
I National Park Service, Department of the Interior (Parts 1 -- 199)
II Forest Service, Department of Agriculture (Parts 200 -- 299)
III Corps of Engineers, Department of the Army (Parts 300 -- 399)
IV American Battle Monuments Commission (Parts 400 -- 499)
V Smithsonian Institution (Parts 500 -- 599)
VII Library of Congress (Parts 700 -- 799)
VIII Advisory Council on Historic Preservation (Parts 800 -- 899)
IX Pennsylvania Avenue Development Corporation (Parts 900 -- 999)
XI Architectural and Transportation Barriers Compliance Board (Parts
1100 -- 1199)
XII National Archives and Records Administration (Parts 1200 -- 1299)
18 CFR 141.100 Title 37 -- Patents, Trademarks, and Copyrights
I Patent and Trademark Office, Department of Commerce (Parts 1 --
199)
II Copyright Office, Library of Congress (Parts 200 -- 299)
III Copyright Royalty Tribunal (Parts 300 -- 399)
IV Assistant Secretary for Technology Policy, Department of Commerce
(Parts 400 -- 499)
V Under Secretary for Technology, Department of Commerce (Parts 500
-- 599)
18 CFR 141.100 Title 38 -- Pensions, Bonuses, and Veterans' Relief
I Department of Veterans Affairs (Parts 0 -- 99)
18 CFR 141.100 Title 39 -- Postal Service
I United States Postal Service (Parts 1 -- 999)
III Postal Rate Commission (Parts 3000 -- 3099)
18 CFR 141.100 Title 40 -- Protection of Environment
I Environmental Protection Agency (Parts 1 -- 799)
V Council on Environmental Quality (Parts 1500 -- 1599)
18 CFR 141.100 Title 41 -- Public Contracts and Property Management
Subtitle B -- Other Provisions Relating to Public Contracts
50 Public Contracts, Department of Labor (Parts 50-1 -- 50-999)
51 Committee for Purchase from the Blind and Other Severely
Handicapped (Parts 51-1 -- 51-99)
60 Office of Federal Contract Compliance Programs, Equal Employment
Opportunity, Department of Labor (Parts 60-1 -- 60-999)
61 Office of the Assistant Secretary for Veterans Employment and
Training, Department of Labor (Parts 61-1 -- 61-999)
Subtitle C -- Federal Property Management Regulations System
101 Federal Property Management Regulations (Parts 101-1 -- 101-99)
105 General Services Administration (Parts 105-1 -- 105-999)
109 Department of Energy Property Management Regulations (Parts 109-1
-- 109-99)
114 Department of the Interior (Parts 114-1 -- 114-99)
115 Environmental Protection Agency (Parts 115-1 -- 115-99)
128 Department of Justice (Parts 128-1 -- 128-99)
132 Department of the Air Force (Parts 132-1 -- 132-99)
Subtitle D -- Other Provisions Relating to Property Management
(Reserved)
Subtitle E -- Federal Information Resources Management Regulations
System
201 Federal Information Resources Management Regulation (Parts 201-1
-- 201-99)
Subtitle F -- Federal Travel Regulation System
301 Travel Allowances (Parts 301-1 -- 301-99)
302 Relocation Allowances (Parts 302-1 -- 302-99)
303 Payment of Expenses Connected with the Death of Certain Employees
(Parts 303-1 -- 303-2)
304 Payment from a non-Federal source for travel expenses (Parts
304-1 -- 304-99)
18 CFR 141.100 Title 42 -- Public Health
I Public Health Service, Department of Health and Human Services
(Parts 1 -- 199)
IV Health Care Financing Administration, Department of Health and
Human Services (Parts 400 -- 499)
V Office of Inspector General-Health Care, Department of Health and
Human Services (Parts 1000 -- 1999)
18 CFR 141.100 Title 43 -- Public Lands: Interior
Subtitle A -- Office of the Secretary of the Interior (Parts 1 --
199)
Subtitle B -- Regulations Relating to Public Lands
I Bureau of Reclamation, Department of the Interior (Parts 200 --
499)
II Bureau of Land Management, Department of the Interior (Parts 1000
-- 9999)
18 CFR 141.100 Title 44 -- Emergency Management and Assistance
I Federal Emergency Management Agency (Parts 0 -- 399)
IV Department of Commerce and Department of Transportation (Parts 400
-- 499)
18 CFR 141.100 Title 45 -- Public Welfare
Subtitle A -- Department of Health and Human Services, General
Administration (Parts 1 -- 199)
Subtitle B -- Regulations Relating to Public Welfare
II Office of Family Assistance (Assistance Programs), Administration
for Children and Families, Department of Health and Human Services
(Parts 200 -- 299)
III Office of Child Support Enforcement (Child Support Enforcement
Program), Administration for Children and Families, Department of Health
and Human Services (Parts 300 -- 399)
IV Office of Refugee Resettlement, Administration for Children and
Families Department of Health and Human Services (Parts 400 -- 499)
V Foreign Claims Settlement Commission of the United States,
Department of Justice (Parts 500 -- 599)
VI National Science Foundation (Parts 600 -- 699)
VII Commission on Civil Rights (Parts 700 -- 799)
VIII Office of Personnel Management (Parts 800 -- 899)
X Office of Community Services, Administration for Children and
Families, Department of Health and Human Services (Parts 1000 -- 1099)
XI National Foundation on the Arts and the Humanities (Parts 1100 --
1199)
XII ACTION (Parts 1200 -- 1299)
XIII Office of Human Development Services, Department of Health and
Human Services (Parts 1300 -- 1399)
XVI Legal Services Corporation (Parts 1600 -- 1699)
XVII National Commission on Libraries and Information Science (Parts
1700 -- 1799)
XVIII Harry S. Truman Scholarship Foundation (Parts 1800 -- 1899)
XXI Commission on Fine Arts (Parts 2100 -- 2199)
XXII Christopher Columbus Quincentenary Jubilee Commission (Parts
2200 -- 2299)
XXIV James Madison Memorial Fellowship Foundation (Parts 2400 --
2499)
XXV Commission on National and Community Service (Parts 2500 -- 2506)
18 CFR 141.100 Title 46 -- Shipping
I Coast Guard, Department of Transportation (Parts 1 -- 199)
II Maritime Administration, Department of Transportation (Parts 200
-- 399)
III Coast Guard (Great Lakes Pilotage), Department of Transportation
(Parts 400 -- 499)
IV Federal Maritime Commission (Parts 500 -- 599)
18 CFR 141.100 Title 47 -- Telecommunication
I Federal Communications Commission (Parts 0 -- 199)
II Office of Science and Technology Policy and National Security
Council (Parts 200 -- 299)
III National Telecommunications and Information Administration,
Department of Commerce (Parts 300 -- 399)
18 CFR 141.100 Title 48 -- Federal Acquisition Regulations System
1 Federal Acquisition Regulation (Parts 1 -- 99)
2 Department of Defense (Parts 200 -- 299)
3 Department of Health and Human Services (Parts 300 -- 399)
4 Department of Agriculture (Parts 400 -- 499)
5 General Services Administration (Parts 500 -- 599)
6 Department of State (Parts 600 -- 699)
7 Agency for International Development (Parts 700 -- 799)
8 Department of Veterans Affairs (Parts 800 -- 899)
9 Department of Energy (Parts 900 -- 999)
10 Department of the Treasury (Parts 1000 -- 1099)
12 Department of Transportation (Parts 1200 -- 1299)
13 Department of Commerce (Parts 1300 -- 1399)
14 Department of the Interior (Parts 1400 -- 1499)
15 Environmental Protection Agency (Parts 1500 -- 1599)
16 Office of Personnel Management Federal Employees Health Benefits
Acquisition Regulation (Parts 1600 -- 1699)
17 Office of Personnel Management (Parts 1700 -- 1799)
18 National Aeronautics and Space Administration (Parts 1800 -- 1899)
19 United States Information Agency (Parts 1900 -- 1999)
20 Nuclear Regulatory Commission (Parts 2000 -- 2099)
22 Small Business Administration (Parts 2200 -- 2299)
24 Department of Housing and Urban Development (Parts 2400 -- 2499)
25 National Science Foundation (Parts 2500 -- 2599)
28 Department of Justice (Parts 2800 -- 2899)
29 Department of Labor (Parts 2900 -- 2999)
34 Department of Education Acquisition Regulation (Parts 3400 --
3499)
35 Panama Canal Commission (Parts 3500 -- 3599)
44 Federal Emergency Management Agency (Parts 4400 -- 4499)
51 Department of the Army Acquisition Regulations (Parts 5100 --
5199)
52 Department of the Navy Acquisition Regulations (Parts 5200 --
5299)
53 Department of the Air Force Federal Acquisition Regulation
Supplement (Parts 5300 -- 5399)
57 African Development Foundation (Parts 5700 -- 5799)
61 General Services Administration Board of Contract Appeals (Parts
6100 -- 6199)
63 Department of Transportation Board of Contract Appeals (Parts 6300
-- 6399)
99 Cost Accounting Standards Board, Office of Federal Procurement
Policy, Office of Management and Budget (Parts 9900 -- 9999)
18 CFR 141.100 Title 49 -- Transportation
Subtitle A -- Office of the Secretary of Transportation (Parts 1 --
99)
Subtitle B -- Other Regulations Relating to Transportation
I Research and Special Programs Administration, Department of
Transportation (Parts 100 -- 199)
II Federal Railroad Administration, Department of Transportation
(Parts 200 -- 299)
III Federal Highway Administration, Department of Transportation
(Parts 300 -- 399)
IV Coast Guard, Department of Transportation (Parts 400 -- 499)
V National Highway Traffic Safety Administration, Department of
Transportation (Parts 500 -- 599)
VI Federal Transit Administration, Department of Transportation
(Parts 600 -- 699)
VII National Railroad Passenger Corporation (AMTRAK) (Parts 700 --
799)
VIII National Transportation Safety Board (Parts 800 -- 899)
X Interstate Commerce Commission (Parts 1000 -- 1399)
18 CFR 141.100 Title 50 -- Wildlife and Fisheries
I United States Fish and Wildlife Service, Department of the Interior
(Parts 1 -- 199)
II National Marine Fisheries Service, National Oceanic and
Atmospheric Administration, Department of Commerce (Parts 200 -- 299)
III International Regulatory Agencies (Fishing and Whaling) (Parts
300 -- 399)
IV Joint Regulations (United States Fish and Wildlife Service,
Department of the Interior and National Marine Fisheries Service,
National Oceanic and Atmospheric Administration, Department of
Commerce); Endangered Species Committee Regulations (Parts 400 -- 499)
V Marine Mammal Commission (Parts 500 -- 599)
VI Fishery Conservation and Management, National Oceanic and
Atmospheric Administration, Department of Commerce (Parts 600 -- 699)
18 CFR 141.100 CFR Index and Finding Aids Subject/Agency Index
List of Agency Prepared Indexes Parallel Tables of Statutory Authorities
and Rules Acts Requiring Publication in the Federal Register List of CFR
Titles, Chapters, Subchapters, and Parts Alphabetical List of Agencies
Appearing in the CFR
18 CFR 141.100 Alphabetical List of Agencies Appearing in the CFR
CFR Title, Subtitle or
Agency
Chapter
ACTION 45, XII
Administrative Committee of the Federal Register 1, I
Administrative Conference of the United States 1, III
Advisory Commission on Intergovernmental Relations 5, VII
Advisory Committee on Federal Pay 5, IV
Advisory Council on Historic Preservation 36, VIII
African Development Foundation 22, XV; 48, 57
Agency for International Development 22, II; 48, 7
Agricultural Marketing Service 7, I, IX, X, XI
Agricultural Research Service 7, V
Agricultural Stabilization and Conservation Service 7, VII
Agriculture Department
Agricultural Marketing Service 7, I, IX, X, XI
Agricultural Research Service 7, V
Agricultural Stabilization and Conservation Service 7, VII
Animal and Plant Health Inspection Service 7, III; 9, I
Commodity Credit Corporation 7, XIV
Cooperative State Research Service 7, XXXIV
Economic Analysis Staff 7, XXXIX
Economic Research Service 7, XXXVII
Economics Management Staff 7, XL
Energy, Office of 7, XXIX
Environmental Quality, Office of 7, XXXI
Farmers Home Administration 7, XVIII
Federal Acquisition Regulation 48, 4
Federal Crop Insurance Corporation 7, IV
Federal Grain Inspection Service 7, VIII
Finance and Management, Office of 7, XXX
Food and Nutrition Service 7, II
Food Safety and Inspection Service 9, III
Foreign Agricultural Service 7, XV
Foreign Economic Development Service 7, XXI
Forest Service 36, II
General Sales Manager, Office of 7, XXV
Grants and Program Systems, Office of 7, XXXII
Information Resources Management, Office of 7, XXVII
Inspector General, Office of 7, XXVI
International Cooperation and Development Office 7, XXII
National Agricultural Library 7, XLI
National Agricultural Statistics Service 7, XXXVI
Operations Office 7, XXVIII
Packers and Stockyards Administration 9, II
Rural Electrification Administration 7, XVII
Rural Telephone Bank 7, XVI
Secretary of Agriculture, Office of 7, Subtitle A
Soil Conservation Service 7, VI
Transportation, Office of 7, XXXIII
World Agriculture Outlook Board 7, XXXVIII
Air Force Department 32, VII; 41, Subtitle C, Ch. 132
Federal Acquisition Regulation Supplement 48, 53
Alaska Natural Gas Transportation System, Office of the Federal
Inspector 10, XV
Alcohol, Tobacco and Firearms, Bureau of 27, I
AMTRAK 49, VII
American Battle Monuments Commission 36, IV
Animal and Plant Health Inspection Service 7, III; 9, I
Appalachian Regional Commission 5, IX
Architectural and Transportation Barriers Compliance Board 36, XI
Arms Control and Disarmament Agency, U.S. 22, VI
Army Department 32, V
Engineers, Corps of 33, II; 36, III
Federal Acquisition Regulation 48, 51
Assistant Secretary for Technology Policy, Department of Commerce 37,
IV
Benefits Review Board 20, VII
Bilingual Education and Minority Languages Affairs, Office of 34, V
Blind and Other Severely Handicapped, Committee for Purchase from 41,
51
Board for International Broadcasting 22, XIII
Budget, Office of Management and 5, III
Census Bureau 15, I
Central Intelligence Agency 32, XIX
Child Support Enforcement, Office of 45, III
Children and Families, Administration for 45, II, III, IV, X
Christopher Columbus Quincentenary Jubilee Commission 45, XXII
Civil Rights Commission 45, VII
Civil Rights, Office for (Education Department) 34, I
Claims Collection Standards, Federal 4, II
Coast Guard 33, I; 46, I, III; 49, IV
Commerce Department 44, IV
Census Bureau 15, I
Assistant Secretary for Technology Policy 37, IV
Economic Affairs, Under Secretary 37, V
Economic Analysis, Bureau of 15, VIII
Economic Development Administration 13, III
Endangered Species Committee 50, IV
Export Administration Bureau 15, VII
Federal Acquisition Regulation 48, 13
Fishery Conservation and Management 50, VI
International Trade Administration 15, III; 19, III
National Institute of Standards and Technology 15, II
National Marine Fisheries Service 50, II, IV
National Oceanic and Atmospheric Administration 15, IX; 50, II, III,
IV, VI
National Telecommunications and Information Administration 15, XXIII;
47, III
Patent and Trademark Office 37, I
Productivity, Technology and Innovation, Assistant Secretary for 37,
IV
Secretary of Commerce, Office of 15, Subtitle A
Technology Administration 15, XI
Under Secretary for Technology 37, V
United States Travel and Tourism Administration 15, XII
Commercial Space Transportation, Office of, Department of
Transportation 14, III
Commission on National and Community Service 45, XXV
Committee for Purchase from People who are Blind or Severely Disabled
41, 51
Commodity Credit Corporation 7, XIV
Commodity Futures Trading Commission 17, I
Community Planning and Development, Office of Assistant Secretary for
24, V, VI
Community Services, Office of 45, X
Comptroller of the Currency 12, I
Construction Industry Collective Bargaining Commission 29, IX
Consumer Product Safety Commission 16, II
Cooperative State Research Service 7, XXXIV
Copyright Office 37, II
Copyright Royalty Tribunal 37, III
Cost Accounting Standards Board, Office of Federal Procurement Policy
48, 99
Council on Environmental Quality 40, V
Customs Service, United States 19, I
Defense Department 32, Subtitle A
Air Force Department 32, VII; 41, Subtitle C, Ch. 132
Army Department 32, V; 33, II; 36, III, 48, 51
Engineers, Corps of 33, II; 36, III
Federal Acquisition Regulation 48, 2
Navy Department 32, VI; 48, 52
Secretary of Defense, Office of 32, I
Defense Logistics Agency 32, XII
Defense Nuclear Facilities Safety Board 10, XVII
Delaware River Basin Commission 18, III
Drug Enforcement Administration 21, II
East-West Foreign Trade Board 15, XIII
Economic Affairs, Under Secretary (Commerce) 37, V
Economic Analysis, Bureau of 15, VIII
Economic Analysis Staff, Department of Agriculture 7, XXXIX
Economic Development Administration 13, III
Economics Management Staff 7, XL
Economic Research Service 7, XXXVII
Education, Department of
Bilingual Education and Minority Languages Affairs, Office of 34, V
Civil Rights, Office for 34, I
Educational Research and Improvement, Office of 34, VII
Elementary and Secondary Education, Office of 34, II
Federal Acquisition Regulation 48, 34
Postsecondary Education, Office of 34, VI
Secretary of Education, Office of 34, Subtitle A
Special Education and Rehabilitative Services, Office of 34, III
Vocational and Adult Education, Office of 34, IV
Educational Research and Improvement, Office of 34, VII
Elementary and Secondary Education, Office of 34, II
Employees' Compensation Appeals Board 20, IV
Employees Loyalty Board, International Organizations 5, V
Employment and Training Administration 20, V
Employment Standards Administration 20, VI
Endangered Species Committee 50, IV
Energy, Department of 10, II, III, X; 41, 109
Federal Acquisition Regulation 48, 9
Federal Energy Regulatory Commission 18, I
Energy, Office of, Department of Agriculture 7, XXIX
Engineers, Corps of 33, II; 36, III
Engraving and Printing, Bureau of 31, VI
Environmental Protection Agency 40, I; 41, 115; 48, 15
Environmental Quality, Office of (Agriculture Department) 7, XXXI
Equal Employment Opportunity Commission 29, XIV
Equal Opportunity, Office of Assistant Secretary for 24, I
Executive Office of the President 3, I
Administration, Office of 5, XV
Export Administration Bureau 15, VII
Export-Import Bank of the United States 12, IV
Family Assistance, Office of 45, II
Farm Credit Administration 12, VI
Farm Credit System Insurance Corporation 12, XIV
Farmers Home Administration 7, XVIII
Federal Acquisition Regulation 48, 1
Federal Aviation Administration 14, I
Federal Claims Collection Standards 4, II
Federal Communications Commission 47, I
Federal Contract Compliance Programs, Office of 41, 60
Federal Crop Insurance Corporation 7, IV
Federal Deposit Insurance Corporation 12, III
Federal Election Commission 11, I
Federal Emergency Management Agency 44, I; 48, 44
Federal Energy Regulatory Commission 18, I
Federal Financial Institutions Examination Council 12, XI
Federal Financing Bank 12, VIII
Federal Grain Inspection Service 7, VIII
Federal Highway Administration 23, I, II; 49, III
Federal Home Loan Mortgage Corporation 1, IV
Federal Housing Finance Board 12, IX
Federal Information Resources Management Regulations 41, Subtitle E,
Ch. 201
Federal Inspector for the Alaska Natural Gas Transportation System,
Office of 10, XV
Federal Labor Relations Authority, and General Counsel of the Federal
Labor Relations Authority 5, XIV; 22, XIV
Federal Law Enforcement Training Center 31, VII
Federal Maritime Commission 46, IV
Federal Mediation and Conciliation Service 29, XII
Federal Mine Safety and Health Review Commission 29, XXVII
Federal Pay, Advisory Committee on 5, IV
Federal Prison Industries, Inc. 28, III
Federal Procurement Policy Office 48, 99
Federal Property Management Regulations 41, 101
Federal Property Management Regulations System 41, Subtitle C
Federal Railroad Administration 49, II
Federal Register, Administrative Committee of 1, I
Federal Register, Office of 1, II
Federal Reserve System 12, II
Federal Retirement Thrift Investment Board 5, VI
Federal Service Impasses Panel 5, XIV
Federal Trade Commission 16, I
Federal Transit Administration 49, VI
Federal Travel Regulation System 41, Subtitle F
Finance and Management, Department of Agriculture 7, XXX
Fine Arts Commission 45, XXI
Fiscal Service 31, II
Fish and Wildlife Service, United States 50, I, IV
Fishery Conservation and Management 50, VI
Fishing and Whaling, International Regulatory Agencies 50, III
Food and Drug Administration 21, I
Food and Nutrition Service 7, II
Food Safety and Inspection Service 9, III
Foreign Agricultural Service 7, XV
Foreign Assets Control, Office of 31, V
Foreign Claims Settlement Commission of United States 45, V
Foreign Economic Development Service 7, XXI
Foreign Service Grievance Board 22, IX
Foreign Service Impasse Disputes Panel 22, XIV
Foreign Service Labor Relations Board 22, XIV
Foreign-Trade Zones Board 15, IV
Forest Service 36, II
General Accounting Office 4, I, II
General Sales Manager, Office of 7, XXV
General Services Administration
Contract Appeals Board 48, 61
Federal Acquisition Regulation 48, 5
Federal Information Resources Management Regulations 41, Subtitle E,
Ch. 201
Federal Property Management Regulations System 41, 101, 105
Federal Travel Regulation System 41, Subtitle F
Payment of Expenses Connected With the Death of Certain Employees 41,
303
Relocation Allowances 41, 302
Travel Allowances 41, 301
Geological Survey 30, IV
Government Ethics, Office of 5, XVI
Government National Mortgage Association 24, III
Grants and Program Systems, Office of 7, XXXII
Great Lakes Pilotage 46, III
Harry S. Truman Scholarship Foundation 45, XVIII
Health and Human Services, Department of 45, Subtitle A
Child Support Enforcement, Office of 45, III
Children and Families, Administration for 45, II, III, IV, X
Community Services, Office of 45, X
Family Assistance, Office of 45, II
Federal Acquisition Regulation 48, 3
Food and Drug Administration 21, I
Health Care Financing Administration 42, IV
Human Development Services Office 45, XIII
Inspector General, Office of 42, V
Public Health Service 42, I
Refugee Resettlement, Office of 45, IV
Social Security Administration 20, III; 45, IV
Health Care Financing Administration 42, IV
Housing and Urban Development, Department of
Community Planning and Development, Office of Assistant Secretary for
24, V, VI
Equal Opportunity, Office of Assistant Secretary for 24, I
Federal Acquisition Regulation 48, 24
Government National Mortgage Association 24, III
Housing -- Federal Housing Commissioner, Office of Assistant
Secretary for 24, II, VIII, X, XX
Inspector General, Office of 24, XII
Mortgage Insurance and Loan Programs Under Emergency Homeowners'
Relief Act 24, XV
Public and Indian Housing, Office of Assistant Secretary for 24, IX
Secretary, Office of 24, Subtitle B, VII
Solar Energy and Energy Conservation Bank 24, XI
Housing -- Federal Housing Commissioner, Office of Assistant
Secretary for 24, II, VIII, X, XX
Human Development Services Office 45, XIII
Immigration and Naturalization Service 8, I
Indian Affairs, Bureau of 25, I
Indian Arts and Crafts Board 25, II
Information Agency, United States 22, V; 48, 19
Information Resources Management, Office of, Agriculture Department
7, XXVII
Information Security Oversight Office 32, XX
Inspector General, Office of, Agriculture Department 7, XXVI
Inspector General, Office of, Health and Human Services Department
42, V
Inspector General, Office of, Housing and Urban Development
Department 24, XII
Inter-American Foundation 22, X
Intergovernmental Relations, Advisory Commission on 5, VII
Interior Department
Endangered Species Committee 50, IV
Federal Acquisition Regulation 48, 14
Federal Property Management Regulations System 41, 114
Fish and Wildlife Service, United States 50, I, IV
Geological Survey 30, IV
Indian Affairs, Bureau of 25, I
Indian Arts and Crafts Board 25, II
Land Management Bureau 43, II
Minerals Management Service 30, II
Mines, Bureau of 30, VI
National Park Service 36, I
Reclamation Bureau 43, I
Secretary of the Interior, Office of 43, Subtitle A
Surface Mining and Reclamation Appeals, Board of 30, III
Surface Mining Reclamation and Enforcement, Office of 30, VII
United States Fish and Wildlife Service 50, I, IV
Internal Revenue Service 26, I
International Boundary and Water Commission, United States and Mexico
22, XI
International Cooperation and Development Office, Department of
Agriculture 7, XXII
International Development, Agency for 22, II
International Development Cooperation Agency 22, XII
International Development, Agency for 22, II
Overseas Private Investment Corporation 22, VII
International Joint Commission, United States and Canada 22, IV
International Organizations Employees Loyalty Board 5, V
International Regulatory Agencies (Fishing and Whaling) 50, III
International Trade Administration 15, III; 19, III
International Trade Commission, United States 19, II
Interstate Commerce Commission 49, X
James Madison Memorial Fellowship Foundation 45, XXIV
Japan-United States Friendship Commission 22, XVI
Joint Board for the Enrollment of Actuaries 20, VIII
Justice Department 28, I; 41, 128
Drug Enforcement Administration 21, II
Federal Acquisition Regulation 48, 28
Federal Claims Collection Standards 4, II
Federal Prison Industries, Inc. 28, III
Foreign Claims Settlement Commission of the United States 45, V
Immigration and Naturalization Service 8, I
Offices of Independent Counsel 28, VI
Prisons, Bureau of 28, V
Labor Department
Benefits Review Board 20, VII
Employees' Compensation Appeals Board 20, IV
Employment and Training Administration 20, V
Employment Standards Administration 20, VI
Federal Acquisition Regulation 48, 29
Federal Contract Compliance Programs, Office of 41, 60
Federal Procurement Regulations System 41, 50
Labor-Management Relations and Cooperative Programs, Bureau of 29, II
Labor-Management Standards, Office of 29, IV
Mine Safety and Health Administration 30, I
Occupational Safety and Health Administration 29, XVII
Pension and Welfare Benefits Administration 29, XXV
Public Contracts 41, 50
Secretary of Labor, Office of 29, Subtitle A
Veterans' Employment and Training, Office of the Assistant Secretary
for 41, 61; 20, IX
Wage and Hour Division 29, V
Workers' Compensation Programs, Office of 20, I
Labor-Management Relations and Cooperative Programs, Bureau of 29, II
Labor-Management Standards, Office of 29, IV
Land Management, Bureau of 43, II
Legal Services Corporation 45, XVI
Library of Congress 36, VII
Copyright Office 37, II
Management and Budget, Office of 5, III; 48, 99
Marine Mammal Commission 50, V
Maritime Administration 46, II
Merit Systems Protection Board 5, II
Micronesian Status Negotiations, Office for 32, XXVII
Mine Safety and Health Administration 30, I
Minerals Management Service 30, II
Mines, Bureau of 30, VI
Minority Business Development Agency 15, XIV
Miscellaneous Agencies 1, IV
Monetary Offices 31, I
Mortgage Insurance and Loan Programs Under the Emergency Homeowners'
Relief Act, Department of Housing and Urban Development 24, XV
National Aeronautics and Space Administration 14, V; 48, 18
National Agricultural Library 7, XLI
National Agricultural Statistics Service 7, XXXVI
National Archives and Records Administration 36, XII
National Bureau of Standards 15, II
National Capital Planning Commission 1, IV
National Commission for Employment Policy 1, IV
National Commission on Libraries and Information Science 45, XVII
National and Community Service, Commission on 45, XXV
National Credit Union Administration 12, VII
National Drug Control Policy, Office of 21, III
National Foundation on the Arts and the Humanities 45, XI
National Highway Traffic Safety Administration 23, II, III; 49, V
National Indian Gaming Commission 25, III
National Institute of Standards and Technology 15, II
National Labor Relations Board 29, I
National Marine Fisheries Service 50, II, IV
National Mediation Board 29, X
National Oceanic and Atmospheric Administration 15, IX; 50, II, III,
IV, VI
National Park Service 36, I
National Railroad Adjustment Board 29, III
National Railroad Passenger Corporation (AMTRAK) 49, VII
National Science Foundation 45, VI; 48, 25
National Security Council 32, XXI
National Security Council and Office of Science and Technology Policy
47, II
National Telecommunications and Information Administration 15, XXIII;
47, III
National Transportation Safety Board 49, VIII
Navy Department 32, VI; 48, 52
Neighborhood Reinvestment Corporation 24, XXV
Nuclear Regulatory Commission 10, I; 48, XX
Occupational Safety and Health Administration 29, XVII
Occupational Safety and Health Review Commission 29, XX
Office of Independent Counsel 28, VII
Office of National Drug Control Policy 21, III
Office of Navajo and Hopi Indian Relocation 25, IV
Offices of Independent Counsel, Department of Justice 28, VI
Operations Office, Department of Agriculture 7, XXVIII
Overseas Private Investment Corporation 22, VII
Packers and Stockyards Administration 9, II
Panama Canal Commission 48, 35
Panama Canal Regulations 35, I
Patent and Trademark Office 37, I
Payment of Expenses Connected With the Death of Certain Employees 41,
303
Peace Corps 22, III
Pennsylvania Avenue Development Corporation 36, IX
Pension and Welfare Benefits Administration, Department of Labor 29,
XXV
Pension Benefit Guaranty Corporation 29, XXVI
Personnel Management, Office of 5, I; 45, VIII; 48, 17
Federal Employees Health Benefits Acquisition Regulation 48, 16
Postal Rate Commission 39, III
Postal Service, United States 39, I
Postsecondary Education, Office of 34, VI
President's Commission on White House Fellowships 1, IV
Presidential Commission on the Assignment of Women in the Armed
Forces 32, XXIX
Presidential Documents 3
Prisons, Bureau of 28, V
Productivity, Technology and Innovation, Assistant Secretary
(Commerce) 37, IV
Property Management Regulations System, Federal 41, Subtitle C
Public Contracts, Department of Labor 41, 50
Public Health Service 42, I
Railroad Retirement Board 20, II
Reclamation Bureau 43, I
Reduction in Meeting and Training Allowance Payments 41, 304
Refugee Resettlement, Office of 45, IV
Regional Action Planning Commissions 13, V
Relocation Allowances 41, 302
Research and Special Programs Administration 49, I
Resolution Trust Corporation 12, XVI
Rural Electrification Administration 7, XVII
Rural Telephone Bank 7, XVI
Saint Lawrence Seaway Development Corporation 33, IV
Science and Technology Policy, Office of 32, XXIV
Science and Technology Policy, Office of, and National Security
Council 47, II
Secret Service 31, IV
Securities and Exchange Commission 17, II
Selective Service System 32, XVI
Small Business Administration 13, I; 48, 22
Smithsonian Institution 36, V
Social Security Administration 20, III; 45, IV
Soil Conservation Service 7, VI
Solar Energy and Energy Conservation Bank, Department of Housing and
Urban Development 24, XI
Soldiers' and Airmen's Home, United States 5, XI
Special Counsel, Office of 5, VIII
Special Education and Rehabilitative Services, Office of 34, III
State Department 22, I
Federal Acquisition Regulation 48, 6
Surface Mining and Reclamation Appeals, Board of 30, III
Susquehanna River Basin Commission 18, VIII
Technology Administration 15, XI
Tennessee Valley Authority 18, XIII
Thrift Depositor Protection Oversight Board 12, XV
Thrift Supervision Office, Department of the Treasury 12, V
Trade Representative, United States, Office of 15, XX
Transportation, Department of 44, IV
Coast Guard 33, I; 46, I, III; 49, IV
Commercial Space Transportation, Office of 14, III
Contract Appeals Board 48, 63
Federal Acquisition Regulation 48, 12
Federal Aviation Administration 14, I
Federal Highway Administration 23, I, II; 49, III
Federal Railroad Administration 49, II
Federal Transit Administration 49, VI
Maritime Administration 46, II
National Highway Traffic Safety Administration 23, II, III; 49, V
Research and Special Programs Administration 49, I
Saint Lawrence Seaway Development Corporation 33, IV
Secretary of Transportation, Office of 14, II; 49, Subtitle A
Transportation, Office of, Department of Agriculture 7, XXXIII
Travel Allowance 41, 301
Travel and Tourism Administration, United States 15, XII
Treasury Department 17, IV
Alcohol, Tobacco and Firearms, Bureau of 27, I
Comptroller of the Currency 12, I
Customs Service, United States 19, I
Engraving and Printing, Bureau of 31, VI
Federal Acquisition Regulation 48, 10
Federal Law Enforcement Training Center 31, VII
Fiscal Service 31, II
Foreign Assets Control, Office of 31, V
Internal Revenue Service 26, I
Monetary Offices 31, I
Secret Service 31, IV
Secretary of the Treasury, Office of 31, Subtitle A
Thrift Supervision Office 12, V
United States Customs Service 19, I
Truman, Harry S. Scholarship Foundation 45, XVIII
Under Secretary for Technology, Department of Commerce 37, V
United States and Canada, International Joint Commission 22, IV
United States Arms Control and Disarmament Agency 22, VI
United States Customs Service 19, I
United States Fish and Wildlife Service 50, I, IV
United States Information Agency 22, V; 48, 19
United States International Development Cooperation Agency 22, XII
United States International Trade Commission 19, II
United States Postal Service 39, I
United States Soldiers' and Airmen's Home 5, XI
United States Trade Representative, Office of 15, XX
United States Travel and Tourism Administration 15, XII
Veterans Affairs Department 38, I; 48, 8
Veterans' Employment and Training, Office of the Assistant Secretary
for 41, 61; 20, IX
Vice President of the United States, Office of 32, XXVIII
Vocational and Adult Education, Office of 34, IV
Wage and Hour Division 29, V
Water Resources Council 18, VI
Workers' Compensation Programs, Office of 20, I
World Agriculture Outlook Board 7, XXXVIII
18 CFR 141.100 18 CFR Ch. I (4-1-93 Edition)
18 CFR 141.100 OMB Control Numbers
18 CFR 141.100
18 CFR 141.100
18 CFR 141.100 Table of OMB Control Numbers
The OMB control numbers for the Federal Energy Regulatory Commission,
Department of Energy, appear in 389.101 of Chapter I. For the
convenience of the user, 389.101 is reprinted below.
18 CFR 141.100 PART 389 -- OMB CONTROL NUMBERS FOR COMMISSION INFORMATION COLLECTION REQUIREMENTS
18 CFR 389.101 OMB control numbers assigned pursuant to the Paperwork
Reduction Act.
(a) Purpose. This part collects and displays control numbers
assigned to information collection requirements of the Commission by the
Office of Management and Budget (OMB) pursuant to the Paperwork
Reduction Act of 1980. This part fulfills the requirements of section
3507(f) of the Paperwork Reduction Act, which requires that agencies
display a current control number assigned by the Director of OMB for
each agency information collection requirement.
(b) Display.
(49 FR 12692, Mar. 30, 1984)
Editorial Note: For Federal Register citations affecting 389.101,
see the List of CFR Sections Affected in the Finding Aids section of
this volume.
18 CFR 389.101 18 CFR (4-1-93 Edition)
18 CFR 389.101 List of CFR Sections Affected
18 CFR 389.101 List of CFR Sections Affected
All changes in this volume of the Code of Federal Regulations which
were made by documents published in the Federal Register since January
1, 1986, are enumerated in the following list. Entries indicate the
nature of the changes effected. Page numbers refer to Federal Register
pages. The user should consult the entries for chapters and parts as
well as sections for revisions.
For the period before January 1, 1986, see the ''List of CFR Sections
Affected, 1949-1963, 1964-1972, and 1973-1985'' published in seven
separate volumes.
18 CFR 389.101 1986
18 CFR
51 FR
Page
Chapter I
2 Authority citation revised 9186
2.67a Removal rehearing denied 36217
2.68 Removed; eff. 6-2-86 9186
Removal effective date changed 11717
2.76 Petition denied 11566
2.77 Petition denied 11566
3.8 (k)(2) (i) and (ii) amended 12137
(k)(2)(ii) corrected 13211
11 Authority citation revised 24318
Technical correction 25362
Rehearing denied 44049
11.1 -- 11.8 (Subpart A) Heading added 24318
Rehearing granted 30478
11.1 Redesignated from 11.20 24318
Rehearing granted 30478
11.2 Redesignated from 11.21 24318
Rehearing granted 30478
11.3 Redesignated from 11.22 and heading revised 24318
Rehearing granted 30478
11.4 Redesignated from 11.23 and heading revised 24318
Rehearing granted 30478
11.5 Redesignated from 11.24 24318
Rehearing granted 30478
11.6 Redesignated from 11.25 24318
Rehearing granted 30478
11.7 Redesignated from 11.29 and revised 24318
Rehearing granted 30478
11.8 Redesignated from 11.30 and revised 24318
Rehearing granted 30478
11.10 -- 11.16 (Subpart B) Added 24318
Rehearing granted 30478
11.20 -- 11.21 (Subpart C) Added 24322
Rehearing granted 30478
11.20 Redesignated as 11.1 24318
Added 24322
Rehearing granted 30478
11.21 Redesignated as 11.2 24318
Added 24322
Rehearing granted 30478
11.22 Redesignated as 11.3 and heading revised 24318
Rehearing granted 30478
11.23 Redesignated as 11.4 and heading revised 24318
Rehearing granted 30478
11.24 Redesignated as 11.5 24318
Rehearing granted 30478
11.25 Redesignated as 11.6 24318
Rehearing granted 30478
11.26 Removed 24318
Rehearing granted 30478
11.27 Removed 24318
Rehearing granted 30478
11.28 Removed 24318
Rehearing granted 30478
11.29 Redesignated as 11.7 and revised 24318
Rehearing granted 30478
11.30 Redesignated as 11.8 and revised 24318
Rehearing granted 30478
11.31 Removed 24318
Rehearing granted 30478
11.32 Removed 24318
Rehearing granted 30478
13 Removed 24322
Technical correction 25362
Rehearing granted 30478
Rehearing denied 44049
35.13 (h)(7), (13), and (38) confirmed 7782
Technical correction 8486
Petitions denied 22065
35.26 Revised; interim 7782
Technical correction 8486
Comment time extended; rehearing granted 16012
Petitions denied 22065
Comment time extended 30855
37.3 Revised 371, 22509
Rehearing granted 7261
37.4 Revised 371, 22509
Rehearing granted 7261
37.5 Revised 371
Rehearing granted 7261
37.9 Revised 371
(d) table revised 3329,
14983, 26237, 37266
Rehearing granted 7261
(a) (2) and (3) removed; (a) (4), (5), and (6) redesignated as (a)
(2), (3), and (4); (a)(1), new (2), and (3), and (d) revised; (a)
introductory text republished 22509
Technical correction 27018, 43343
(d) table corrected 27836
141.59 Revised 44283
45.1 Revised; eff. 4-11-86 4904
45.9 Added; eff. 4-11-86 4905
18 CFR 389.101 1987
18 CFR
52 FR
Page
Chapter I
2 Authority citation revised 47910
2.18 Added 11
2.19 Added 39907
Rehearing granted 48398
2.66 Order on remand 30146
Rehearing granted 37928
2.80 Revised 47910
2.81 Removed 47910
2.82 Removed 47910
2.104 Added; interim 30351
Addition eff. 9-15-87; (f) amended 35539
Rehearing granted 36919, 47914
Seminars 37284
Response time extended 39507
2.105 Added; interim 30352
Addition eff. 9-15-87 35539
Rehearing granted 36919, 47914
Seminars 37284
Response time extended 39507
2.400 Undesignated center heading and section added 19310
Undesignated center heading correctly added 21410
2 Appendix A removed; Appendix B redesignated as Part 380 Appendix A
and heading revised 47910
3 Authority citation revised 7824
3.4 Authority citation removed 7824
3.8 (k)(5)(iii) amended; authority citation removed 7824
4 Authority citation revised 5449,
37285, 39630, 48404
4.30 (b)(9) revised 48404
4.32 (a) (3) and (4) redesignated as (a) (4) and (5); (a)(2)(iv)
revised; new (a)(3) added 37285
(c)(4) added 48404
4.38 (a), (c), and (e) revised; eff. 5-11-87 5449
Rehearing denied 13234
(a) amended 48404
4.41 (f)(2)(vii) removed; eff. 5-11-87 5449
Rehearing denied 13234
4.51 (f)(2)(vi) removed; eff. 5-11-87 5449
Rehearing denied 13234
4.61 (a)(1) removed; (a)(2), (3), and (4) redesignated as (a)(1),
(2), and (3); eff. 5-11-87 5449
Rehearing denied 13234
4.101 Amended 39630
4.106 (c) amended 39630
4.109 -- 4.113 Removed 39630
4.300 -- 4.305 (Subpart M) Added 48404
11 Rehearing granted 25208
Rehearing denied 37929
Authority citation revised 48406
11.1 (a) (2) and (4) and (b) (2), (3) and (4) revised; (b)(6)
removed 18208
Rehearing denied 37929
(f) added 48406
11.2 (b), (c), and (d) revised 18209
Rehearing denied 37929
11.3 (c) revised 18209
(c) revision effective date confirmed 33802
Rehearing denied 37929
11.4 (b) revised 18209
(b) revision effective date confirmed 33802
Rehearing denied 37929
11 Schedule A added 18210
Schedule A revised 43321
16 Authority citation revised 11039
16.1 Revised; interim 11039
16.14 Added; interim 11039
16.15 Added; interim 11039
16.16 Added; interim 11039
(c)(1) revised; (d)(1) suspended; interim 18228
35 Authority citation revised 23965, 24993
35.13 (a)(2)(ii) revised 24993
Rehearing granted 30659
Rehearing denied 39907
35.26 Revised 23965
Rehearing granted 30659
(b)(1) and (g)(2) revised; (c)(4) amended; rehearing granted in
part 35702
35.27 Added 24993
Rehearing denied 39907
37.8 Revised 31
Requests for rehearing denied 5757
37.9 (a)(3) revised; (a)(4) removed 31
(d) table revised 2678,
13638, 27680, 39909
Technical correction 4896
Requests for rehearing denied 5757
116 Authority citation revised; text amended 45169
Effective date suspended 49157
18 CFR 389.101 1988
18 CFR
53 FR
Page
Chapter I
2 Rehearing granted 3584
2 Hearing transcript and question availability 15198
26436
Rehearing denied 16859
Authority citation revised 15804,
2.19 Revised 15804
2.51 Removed 26436
2.66 Petition dismissed and rehearing denied 3886
2.80 Rehearing granted 3584
2.100 Removed 26436
2.101 Removed 26436
2.104 (c)(1) amended 50924
3 Authority citation revised 1472
3.8 Removed 1472
4 Authority citation revised 15381
Rehearing denied 47525
4.30 (b)(28) added 27001
Rehearing granted 36272
(b)(4)(iii) and (27) revised 36567
4.32 (a)(5) (vii) and (viii) revised; (a)(5)(ix) added; (c) through
(i) redesignated as (d) through (j); new (c) added; new (d) through
(f) nomenclature change; (b) (1) and (2), new (d)(4), (e) introductory
text, (1) (ii) and (iii), and (2)(ii)(B), (f), and (g) amended 27001
Rehearing granted 36272
4.33 (d)(3) amended 27002
Rehearing granted 36272
4.35 Heading and (a) revised; (b) redesignated as (f); new (b)
through (e) added 27002
Rehearing granted 36272
4.38 (b)(1)(vi) added; (b)(3) amended 27002
Rehearing granted 36272
(b)(1)(vi)(B) revised 40724
4.40 (b) amended 27002
Rehearing granted 36272
4.50 (b) amended 27002
4.82 (b) amended 27002
Rehearing granted 36272
4.103 (c) revised 36568
4.107 (a) revised 15381
11.2 (b) amended 44859
11.3 (a)(2) amended 44859
11 Fee Schedule designated as Appendix A and revised 44859
16 Authority citation revised 15810
16.15 Revised 15810
16.16 Revised 15810
37 Quarterly rate of return determination 51752
37.3 (a) and (c) amended 3360
Rehearing denied 11991
37.4 Revised 3360
Rehearing denied 11991
37.6 (a) revised 3360
Rehearing denied 11991
37.8 Revised 3360
Rehearing denied 11991
37.9 (d) table revised 3340
Rehearing denied 11991
(d) revised 12932, 27483, 40870
(a) (1), (2), and (3) amended 3360
141.1 FERC Form No. 1 amended 40875
141.2 FERC Form No. 1-F amended 40875
18 CFR 389.101 1989
18 CFR
54 FR
Page
Chapter I
2 Rehearing denied 7400
Authority citation revised 52394
2.104 Regulation at 52 FR 30351 confirmed; (c) amended 52394
2.105 Regulation at 52 FR 30352 confirmed 52394
4.60 (c) added 23806
4.61 (f)(3) revised 23806
11 Schedule A revised 48590
16.1 -- 16.5 Designated as Subpart A and heading added; revised
23806
16.6 -- 16.13 Designated as Subpart B and heading added 23807
16.6 Redesignated from 16.15 and (d)(2) revised 23807
16.7 Removed; new 16.7 redesignated from 16.16 23807
16.8 Revised 23807
16.9 Revised 23811
16.10 Revised 23811
16.11 Revised 23813
16.12 Revised 23813
16.13 Revised 23813
16.14 Revised 23813
16.14 -- 16.17 Designated as Subpart C and heading added 23813
16.15 Redesignated as 16.6 and (d)(2) revised 23607
Added 23814
16.16 Redesignated as 16.7 23807
Added 23814
16.17 Added 23814
16.18 (Subpart D) Added 23814
16.19 -- 16.22 (Subpart E) Added 23814
16.23 -- 16.26 (Subpart F) Added 23815
35.26 (g)(2) revised 32804
37.9 (d) table revised 3435, 15921,
30371, 42946
141.1 FERC Form No. 1 amended (OMB number) 8529
141.2 FERC Form No. 1-F amended (OMB number) 8529
18 CFR 389.101 1990
18 CFR
55 FR
Page
Chapter I
2 Order 6605
Authority citation revised 33015
Tariff provisions stayed 47863
Rehearing denial and clarification 47457
2.55 (b) revised; interim 33015
11 Authority citation revised 47310
Appendix A revised 47310
16 Order 7490
16.2 (f) added 15
16.7 (b) corrected 10768
16.8 (a)(1) and (2), (b)(1) introductory text, (2), (3), (4)
introductory text, (vi), (5)(i), (iv), (6), (c)(1) introductory text,
(2), (4) introductory text, (i)(B), (ii), (5) through (8), (9)(i), (ii),
(10) (i), (ii), (d)(2) introductory text, (e)(1) through (3); (f)
heading, (1), (3) introductory text, (ii), (5), (6); (g), (h),
(j)(4)(iii)(D) revised; (a)(3) and (j)(6) added 16
16.18 (d) added 18
32 Authority citation and heading revised 3944
32.20 -- 32.62 Undesignated center headings and sections removed 3944
35 Authority citation revised 47321
35.14 (a)(3) revised 47321
37 Authority citation revised 29353, 42700
Quarterly rate of return determination 146
37.9 (d) revised 2061,
14962, 29353, 42700
101 Amended 11902
141 Authority citation revised 51281
141.51 Revised 51281
18 CFR 389.101 1991
18 CFR
56 FR
Page
Chapter I
2 Rehearing granted and denied in part 5929
Rehearing denied 27194
Authority citation revised 52381
Technical correction 56544
Technical conference 57255, 63648, 65990
2.55 (b) revised 52381
Regulation at 56 FR 52381 effective date delayed 58845
2.65 Heading revised; (a) amended 52381
Regulation at 56 FR 52381 effective date delayed 58845
2.69 Removed 52382
Removal at 56 FR 52382 effective date delayed 58845
4 Authority citation revised 23146, 31331, 61154
4.30 (b)(9) revised; (b)(11) removed; (b)(10) and (25) through (28)
redesignated as (b)(11), (26) and (28) through (30); new (b)(10), (25)
and (27) added 23146
(b)(9)(iii) and (28) revised 61154
4.32 Heading, (a)(2)(iii)(B) and (iv) revised; (a)(2)(v) and (b)(3)
through (9) added; (d)(4) revised 23147
(b)(6), (7), (e)(2)(i) and (ii) revised 61155
4.34 Revised 23148
(b) introductory text amended; (e)(5) and (f)(1)(i) revised 61155
4.35 (e)(4) revised 23149
4.38 Revised 23149
(a)(1) and (d) revised 61155
4.92 (a)(2) and (3) revised; (a)(4) added 23153
4.93 (b) revised 23153
4.94 (b) revised 31331
4.105 (b)(1) revised 23154
4.106 (b) revised 31331
4.107 (a) amended 23154
4.201 (b) introductory text and (c) revised 23154
11 Appendix A revised 58497
16 Authority citation revised 23154
Authority citation revised 61156
16.2 (d) and (f) removed; (e) redesignated as (d) 23154
16.8 (f)(7)(i)(B), (ii) and (iii) revised 23154
(a)(1) and (d) revised 61156
16.10 Heading revised; (f) added 23154
(f) revised 61156
37 Quarterly rate of return determinations 10
37.9 (d) revised 2131, 15999, 33378
(d) revised 54535
37 Appendix revised 16000
141 Authority citation revised 41453
141.51 Heading, (a) introductory text, (1), (b) and (c) amended 41454
141.59 Removed 41453
18 CFR 389.101 1992
18 CFR
57 FR
Page
Chapter I
Chapter I Policy statement 1861
2 Technical conference; questions 794
Authority citation revised 21733
Rehearing denied 59289
2.1 (a)(1)(ii)(B), (C), (E) and (ix) removed 21733
2.5 Removed 21733
2.10 Removed 21733
2.11 Removed 21733
2.53 Removed 21893
2.55 (b) revised 46495
2.56 Removed 21893
2.56a Removed 21893
2.56b Removed 21893
2.61 Removed 21893
2.63 Removed 21893
2.66 Removed 21893
2.70 Removed 21893
2.75 Removed 21893
2.77 Removed 21893
2.79 Removed 21893
2.90 Removed 21893
2.90a Removed 21893
2.90b Removed 21893
2.91 Removed 21893
4 Authority citation revised 21737
4.30 (b)(27) correctly designated 10809
4.32 (b)(1) and (2) revised 21737
4.34 (h) added 21737
4.41 (g)(4) revised 21737
4.51 (g)(3) revised 21737
8 Authority citation revised 21737
8.11 (a)(2) and (c) revised 21737
11 Authority citation revised 48455
Appendix A revised 48455
16 Authority citation revised 21738
16.18 (d) amended 21738
24 Authority citation revised 21738
24.1 Introductory text amended 21738
33 Authority citation revised 53990
33.2 (b), (d), (g), (h), (i) and (n) removed; (c), (e), (f), (j)
through (m) and (o) through (r) redesignated as (b) through (l); new
(c) revised 53990
33.3 Introductory text revised; Exhibits A, B, D, and E and note
removed; Exhibits C and F through M redesignated as Exhibits A through
I 53990
35 Authority citation revised 21734
Rehearing denied 59289
35.1 (d)(2) and (3) amended 21734
35.7 Amended 21734
35.8 Amended 21734
35.9 Amended 21734
35.13 (d)(6) and (h)(7)(iv) removed; (d)(7), (h)(7)(v) and (vi)
redesignated as (d)(6), (h)(7)(iv) and (v) 53990
35.18 Amended 21734
35.19a (b) revised 53990
35.20 Removed 21734
35.22 Removed; new 35.22 redesignated from 35.23 53990
35.23 Redesignated as 35.22 53990
35.24 Redesignated from 35.25 53990
35.25 Redesignated as 35.24; new 35.25 redesignated from 35.26 53990
35.26 Redesignated as 35.25 53990
35.27 Removed 21734
37 Removed 806
50 Removed 21734
Rehearing denied 59289
101 Termination of inquiry 13064
103 Removed 21738
131 Authority citation revised 21734
Rehearing denied 59289
131.20 Amended 21734
131.51 Amended 21734
131.52 Amended 21734
131.53 Amended 21734
131.60 Removed 21734
141 Authority citation revised 21738
Rehearing denied 59289
141.15 Added 21738
141.100 Removed; new 141.100 redesignated from 141.200 21734
141.200 Redesignated as 141.100 21734
18 CFR 389.101 1993
18 CFR
58 FR
Page
Chapter I
2.1b Redesignated from 2.72 and revised 494
2.55 Regulation at 56 FR 52381 withdrawn 15418
2.65 Regulation at 56 FR 52381 withdrawn 15418
2.69 Removal at 56 FR 52382 withdrawn 15418
2.72 Redesignated as 2.1b 494
3c Authority citation revised 7488
3c.1 Removed; new 3c.1 redesignated from 3c.5(b)(3)(i) 7488
3c.2 Removed 7488
3c.3 Removed 7488
3c.4 Removed 7488
3c.5 (a), (b)(1), (2), and (b)(3)(ii) through (e) removed; (b)(3)(i)
redesignated as 3c.1 7488
3c.6 (a) through (c) and (f) through (j) removed; (d) and (e)
redesignated as 3c.2(a) and (b) 7488
3c.7 Removed 7488
3c.8 (a) removed 7488
3c.9 Removed 7488
3c.10 Removed 7488
3c.11 Removed 7488
3c.101 -- 3c.112 (Subpart B) Removed 7488
3c.201 -- 3c.206 (Subpart C) Removed 7488
11 Authority citation revised 15770
11.1 (g) added; eff. 4-23-93 15770
11.4 (c) added; eff. 4-23-93 15770
18
Conservation of Power and Water Resources
PARTS 1 TO 149
Revised as of April 1, 1993
CONTAINING
A CODIFICATION OF DOCUMENTS
OF GENERAL APPLICABILITY
AND FUTURE EFFECT
AS OF APRIL 1, 1993
With Ancillaries
Published by
the Office of the Federal Register
National Archives and Records
Administration
as a Special Edition of
the Federal Register
Washington, DC 20402-9328
18 CFR 389.101 Table of Contents
Page
Explanation v
Title 18:
Chapter I -- Federal Energy Regulatory Commission, Department of
Energy
Finding Aids:
Table of CFR Titles and Chapters
Alphabetical List of Agencies Appearing in the CFR
Table of OMB Control Numbers
List of CFR Sections Affected '
18 CFR 389.101 Explanation
The Code of Federal Regulations is a codification of the general and
permanent rules published in the Federal Register by the Executive
departments and agencies of the Federal Government. The Code is divided
into 50 titles which represent broad areas subject to Federal
regulation. Each title is divided into chapters which usually bear the
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parts covering specific regulatory areas.
Each volume of the Code is revised at least once each calendar year
and issued on a quarterly basis approximately as follows:
Title 1 through Title 16 as of January 1
Title 17 through Title 27 as of April 1
Title 28 through Title 41 as of July 1
Title 42 through Title 50 as of October 1
The appropriate revision date is printed on the cover of each volume.
LEGAL STATUS
The contents of the Federal Register are required to be judicially
noticed (44 U.S.C. 1507). The Code of Federal Regulations is prima facie
evidence of the text of the original documents (44 U.S.C. 1510).
HOW TO USE THE CODE OF FEDERAL REGULATIONS
The Code of Federal Regulations is kept up to date by the individual
issues of the Federal Register. These two publications must be used
together to determine the latest version of any given rule.
To determine whether a Code volume has been amended since its
revision date (in this case, April 1, 1993), consult the ''List of CFR
Sections Affected (LSA),'' which is issued monthly, and the ''Cumulative
List of Parts Affected,'' which appears in the Reader Aids section of
the daily Federal Register. These two lists will identify the Federal
Register page number of the latest amendment of any given rule.
EFFECTIVE AND EXPIRATION DATES
Each volume of the Code contains amendments published in the Federal
Register since the last revision of that volume of the Code. Source
citations for the regulations are referred to by volume number and page
number of the Federal Register and date of publication. Publication
dates and effective dates are usually not the same and care must be
exercised by the user in determining the actual effective date. In
instances where the effective date is beyond the cut-off date for the
Code a note has been inserted to reflect the future effective date. In
those instances where a regulation published in the Federal Register
states a date certain for expiration, an appropriate note will be
inserted following the text.
OMB CONTROL NUMBERS
The Paperwork Reduction Act of 1980 (Pub. L. 96-511) requires Federal
agencies to display an OMB control number with their information
collection request. Many agencies have begun publishing numerous OMB
control numbers as amendments to existing regulations in the CFR. These
OMB numbers are placed as close as possible to the applicable
recordkeeping or reporting requirements.
OBSOLETE PROVISIONS
Provisions that become obsolete before the revision date stated on
the cover of each volume are not carried. Code users may find the text
of provisions in effect on a given date in the past by using the
appropriate numerical list of sections affected. For the period before
January 1, 1986, consult either the List of CFR Sections Affected,
1949-1963, 1964-1972, or 1973-1985, published in seven separate volumes.
For the period beginning January 1, 1986, a ''List of CFR Sections
Affected'' is published at the end of each CFR volume.
CFR INDEXES AND TABULAR GUIDES
A subject index to the Code of Federal Regulations is contained in a
separate volume, revised annually as of January 1, entitled CFR Index
and Finding Aids. This volume contains the Parallel Table of Statutory
Authorities and Agency Rules (Table I), and Acts Requiring Publication
in the Federal Register (Table II). A list of CFR titles, chapters, and
parts and an alphabetical list of agencies publishing in the CFR are
also included in this volume.
An index to the text of ''Title 3 -- The President'' is carried
within that volume.
The Federal Register Index is issued monthly in cumulative form.
This index is based on a consolidation of the ''Contents'' entries in
the daily Federal Register.
A List of CFR Sections Affected (LSA) is published monthly, keyed to
the revision dates of the 50 CFR titles.
REPUBLICATION OF MATERIAL
There are no restrictions on the republication of material appearing
in the Code of Federal Regulations.
INQUIRIES AND SALES
For a summary, legal interpretation, or other explanation of any
regulation in this volume, contact the issuing agency. Inquiries
concerning editing procedures and reference assistance with respect to
the Code of Federal Regulations may be addressed to the Director, Office
of the Federal Register, National Archives and Records Administration,
Washington, DC 20408 (telephone 202-512-1557). All mail order sales are
handled exclusively by the Superintendent of Documents, Attn: New
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Martha L. Girard,
Director,
Office of the Federal Register.
April 1, 1993.
18 CFR 389.101 THIS TITLE
Title 18 -- Conservation of Power and Water Resources is composed of
four volumes. The first three volumes, parts 1 to 149, parts 150 to
279, and parts 280 to 399 contain chapter I, the current regulations of
the Federal Energy Regulatory Commission, Department of Energy. The
fourth volume, containing part 400 to end, includes all current
regulations issued by the Delaware River Basin Commission, the Water
Resources Council, the Susquehanna River Basin Commission, and the
Tennessee Valley Authority as of April 1, 1993.
The OMB control numbers for the Federal Energy Regulatory Commission,
Department of Energy, appear in 389.101 of chapter I. For the
convenience of the user, 389.101 is reprinted in the Finding Aids
section of the first and second volumes.
For this volume, Suzanne L. Meyer was Chief Editor. The Code of
Federal Regulation publications program is under the direction of
Richard L. Claypoole, assisted by Alomha S. Morris.
18 CFR 0.0 18 CFR Ch. I (4-1-93 Edition)
18 CFR 0.0 Federal Energy Regulatory Commission
18 CFR 0.0 Title 18 -- Conservation of Power and Water Resources
18 CFR 0.0 (This book contains parts 150 to 279)
Part
chapter i -- Federal Energy Regulatory Commission, Department of
Energy (Continued) 152
Cross References: Applications and entries conflicting with lands
reserved or classified as power sites, or covered by power applications:
See Public Lands, Interior, 43 CFR subpart 2320.
Interstate Commerce Commission: See Transportation, 49 CFR chapter
X.
Irrigation projects; electrification, Bureau of Indian Affairs,
Department of the Interior: See Indians, 25 CFR parts 172-177.
Regulations of the Bureau of Land Management relating to
rights-of-way for power, telephone, and telegraph purposes: See Public
Lands, Interior, 43 CFR Group 2800.
Rights-of-way over Indian lands: See Indians, 25 CFR parts 169, 170,
and 265.
Commodity Futures Trading Commission and Securities and Exchange
Commission: See Commodity and Securities Exchanges, 17 CFR chapters I
and II.
Withdrawal of public lands: See Public Lands, Interior, 43 CFR Group
2300.
18 CFR 0.0 18 CFR Ch. I (4-1-93 Edition)
18 CFR 0.0 Federal Energy Regulatory Commission
18 CFR 0.0 CHAPTER I -- FEDERAL ENERGY REGULATORY COMMISSION, DEPARTMENT OF ENERGY (CONTINUED)
18 CFR 0.0
18 CFR 0.0 SUBCHAPTER E -- REGULATIONS UNDER NATURAL GAS ACT
Part
Page
152 Application for exemption from the provisions of the Natural Gas
Act pursuant to section 1(c) thereof and issuance of blanket
certificates authorizing certain sales for resale
153 Application for authorization to export or import natural gas
154 Rate schedules and tariffs
156 Applications for orders under section 7(a) of the Natural Gas Act
157 Applications for certificates of public convenience and necessity
and for orders permitting and approving abandonment under section 7 of
the Natural Gas Act
158 Accounts, records, and memoranda
161 Standards of conduct for interstate pipelines with marketing
affiliates
18 CFR 0.0
18 CFR 0.0 SUBCHAPTER F -- ACCOUNTS, NATURAL GAS ACT
201 Uniform system of accounts prescribed for natural gas companies
subject to the provisions of the Natural Gas Act
204 (Note)
216 Units of property for use in accounting for additions to and
retirements of gas plant
225 Preservation of records of natural gas companies
18 CFR 0.0
18 CFR 0.0 SUBCHAPTER G -- APPROVED FORMS, NATURAL GAS ACT
250 Forms
260 Statements and reports (schedules)
18 CFR 0.0
18 CFR 0.0 SUBCHAPTER H -- FIRST SALE REGULATION UNDER THE NATURAL GAS
POLICY ACT OF 1978
270 Rules generally applicable to regulated sales of natural gas
271 Ceiling prices
272 Deregulated natural gas
273 Collection authority; refunds
274 Determinations by jurisdictional agencies
275 Commission determinations and review of jurisdictional agency
determinations
276-279 (Reserved)
Abbreviations: The following abbreviations are used in this
chapter:
M.c.f.=Thousand cubic feet. B.t.u.=British thermal units.
ICC=Interstate Commerce Commission.
18 CFR 0.0 18 CFR Ch. I (4-1-93 Edition)
18 CFR 0.0 Federal Energy Regulatory Commission
18 CFR 0.0 SUBCHAPTER E -- REGULATIONS UNDER NATURAL GAS ACT
18 CFR 0.0 PART 152 -- APPLICATION FOR EXEMPTION FROM THE PROVISIONS
OF THE NATURAL GAS ACT PURSUANT TO SECTION 1(C) THEREOF AND ISSUANCE OF
BLANKET CERTIFICATES AUTHORIZING CERTAIN SALES FOR RESALE
Sec.
152.1 Exemption applications and blanket certificates.
152.2 Form of application; number of copies; service.
152.3 Contents of application; filing fee.
152.4 Certificate from State Commission.
152.5 Applicability of exemption.
Authority: 15 U.S.C. 717-717w, 3301-3432; 42 U.S.C. 7101-7352.
18 CFR 152.1 Exemption applications and blanket certificates.
(a) Application for exemption from the provisions of the Natural Gas
Act and the rules and regulations of the Commission issued pursuant
thereto may be made by any person as defined in the Natural Gas Act
engaged in, or authorized to engage in the transportation in interstate
commerce or the sale in interstate commerce for resale, of natural gas
received by such applicant from another person within or at the boundary
of a State, if all of the natural gas so received is ultimately consumed
in such State: Provided, That the natural-gas rates (including rates
for sales for resale) and service of the applicant and its natural-gas
facilities are subject to regulation by a State Commission, as defined
in the Natural Gas Act, and that such State Commission is exercising
that jurisdiction.
(b)(1)(i) For purposes of the Commission's regulations implementing
the Natural Gas Act, ''vehicular natural gas'' or ''VNG'' means natural
gas that will be used, in either a gaseous or liquefied state, as fuel
in any self-propelled vehicle.
(ii) For purposes of the Commission's regulations implementing the
Natural Gas Act, vehicular natural gas, or VNG, is deemed to be
ultimately consumed in the state in which the gas is physically
delivered into the vehicle's fuel tank regardless of whether the tank is
attached to the vehicle at the time it is filled.
(2)(i) Blanket certificates of public convenience and necessity are
issued pursuant to section 7(c) of the Natural Gas Act to all persons
that engage in sales for resale of VNG that are subject to the
Commission's authority under section 1(b) of the NGA, such authorization
to be effective upon that person's engagement in the jurisdictional
sale. A blanket certificate issued under this paragraph (b)(2)(i) is a
certificate of limited jurisdiction which will not subject the
certificate holder to any other regulation under the Natural Gas Act
jurisdiction of the Commission by virtue of transactions under the
certificate. Such certificate will not impair the continued validity of
any Natural Gas Act exemption from Commission jurisdiction.
(ii) A blanket certificate issued under paragraph (b)(2)(i) of this
section authorizes the holder to make sales of VNG for resale in
interstate commerce at market rates.
(iii) Abandonment of the sales service authorized in paragraph
(b)(2)(i) of this section is authorized pursuant to section 7(b) of the
Natural Gas Act upon the expiration of the contractual term or upon
termination of each individual sales arrangement.
(Sec. 1(c), 68 Stat. 36; 15 U.S.C. 717(c))
(Order 306, 30 FR 12729, Oct. 6, 1965, as amended by Order 543, 57 FR
32894, July 24, 1992)
18 CFR 152.2 Form of application; number of copies; service.
An original and 7 conformed copies of an application under this part
shall be furnished to the Commission. The Commission reserves the right
to request additional copies. A copy of the application shall be served
on the State Commission which has jurisdiction over the applicant and
upon each wholesale customer of the applicant.
(Sec. 1(c), 68 Stat. 36; 15 U.S.C. 717(c))
(Order 306, 30 FR 12729, Oct. 6, 1965, as amended by Order 225, 47 FR
19057, May 3, 1982)
18 CFR 152.3 Contents of application; filing fee.
Every application shall be accompanied by the fee prescribed in part
381 of this chapter or a petition for waiver pursuant to 381.106 of
this chapter and shall set forth in the order indicated, the following:
(a) The exact legal name of applicant.
(b) The name, title, and postoffice address of the person to whom
correspondence in regard to the application shall be addressed.
(c) A statement of pertinent facts as to the existing service, if
any, or authorized service by applicant, including a showing that all of
the natural gas which applicant receives from out-of-State sources is
and will be ultimately consumed within the State in which the operations
sought to be exempted are conducted.
(Secs. 3, 16, 52 Stat. 822, 830; 15 U.S.C. 717b, 717o)
(Order 173, 19 FR 4276, July 13, 1954, as amended by Order 317, 31 FR
432, Jan. 13, 1966; Order 433, 50 FR 40345, Oct. 3, 1985)
18 CFR 152.4 Certificate from State Commission.
Applications for exemption under 152.3 shall contain, or there shall
be separately filed, a certificate from the appropriate State Commission
that the natural-gas (a) rates (including rates for sales for resale),
(b) service, and (c) facilities of the applicant are subject to the
regulatory jurisdiction of the State Commission and that the State
Commission is exercising such jurisdiction.
(Sec. 1(c), 68 Stat. 36; 15 U.S.C. 717(c))
(Order 306, 30 FR 12729, Oct. 6, 1965)
18 CFR 152.5 Applicability of exemption.
Nothing in this part shall be construed to relieve any person
exempted from the provisions of the Natural Gas Act by section 1(c)
thereof from compliance with valid State regulatory requirements. If an
exemption from the provisions of the Natural Gas Act is effective
pursuant to section 1(c), the exempted person shall be responsible for
calling to the attention of the State Commission by which it is
regulated and of the Federal Power Commission any future operations in
which it may engage which may make the exemption inapplicable to it.
The exempted person shall also be responsible for calling to the
attention of the Federal Power Commission any changes, amendment, or
judicial or administrative interpretation of the State law pursuant to
which it is regulated, which may make the exemption inapplicable to it.
(Sec. 1(c), 68 Stat. 36; 15 U.S.C. 717(c))
(Order 306, 30 FR 12729, Oct. 6, 1965)
18 CFR 152.5 PART 153 -- APPLICATION FOR AUTHORIZATION TO EXPORT OR
IMPORT NATURAL GAS
Sec.
153.1 Who shall apply.
153.2 Form and time of filing; number of copies.
153.3 Contents of application; filing fee.
153.4 Required exhibits.
153.5 Other information.
153.6 Transferability.
153.7 Authorization not exclusive.
153.8 Filing of contracts, rate schedules, etc.
153.10 Who shall apply.
153.11 Contents of application; number of copies; filing fee.
153.12 Other information.
Authority: Secs. 3, 16, 52 Stat. 822, 830; 15 U.S.C. 717b, 717o;
E.O. 10485, 3 CFR, 1949 -- 1953 Comp., p. 970.
Source: Order 141, 12 FR 8596, Dec. 19, 1947, unless otherwise
noted.
18 CFR 153.1 Who shall apply.
(a) Any person proposing to export natural gas from the United States
to a foreign country or to import natural gas from a foreign country,
pursuant to the provisions of section 3 of the Natural Gas Act, shall
make an application for authorization therefor under this part.
(b) In connection with applications under this section, attention is
directed to the provisions of 153.10 to 153.12, inclusive, relative to
applications for Presidential Permits for the construction, operation,
maintenance, or connection, at the borders of the United States, of
facilities for the exportation and importation of natural gas to or from
a foreign country in compliance with Executive Order No. 8202, dated
July 13, 1939.
(Order 160, 16 FR 6751, July 12, 1951)
Editorial Note: Executive Order 8202 was revoked and superseded by
E.O. 10485, Sept. 3, 1953, 18 FR 5397; 3 CFR, 1949 -- 1953 Comp., p.
970.
18 CFR 153.2 Form and time of filing; number of copies.
An original and 7 conformed copies of an application under this part
shall be furnished to the Commission. The Commission reserves the right
to request additional copies. Such application shall be made at least
30 days in advance of the proposed exportation or importation, except
where otherwise ordered by the Commission for good cause shown.
(Order 196, 22 FR 2882, Apr. 24, 1957, as amended by Order 225, 47 FR
19057, May 3, 1982)
18 CFR 153.3 Contents of application; filing fee.
Every application shall be accompanied by the fee prescribed in part
159 of this subchapter and shall set forth in the order indicated, the
following:
(a) The exact legal name of applicant;
(b) The name, title, and post office address of the person to whom
correspondence in regard to the application shall be addressed;
(c) If a corporation, the State or Territory under the laws of which
the applicant was organized, and the town or city where applicant's
principal office is located. If applicant is incorporated under the
laws of, or authorized to operate in more than one State, all pertinent
facts should be stated;
(d) A statement giving the name and location of the field or fields
in which the gas proposed to be exported or imported is produced and the
most recent estimate of the remaining natural gas reserves in such field
or fields;
(e) If the application is for authority to export natural gas, state
the name of the purchaser of the gas proposed to be exported, its
proposed use in the foreign country, and the rate or rates proposed to
be charged the purchaser for such gas, together with the rate or rates
charged by the applicant for similar service, if rendered in the United
States;
(f) If the application is for authority to import natural gas, state
the name of the seller and of the producer of the gas proposed to be
imported, and the rate or rates proposed to be paid by the applicant for
the said gas;
(g) A description of the facilities utilized in the proposed
exportation or the importation of natural gas;
(h) A statement of the reasons why the proposed exportation or
importation of natural gas (1) will not be inconsistent with the public
interest and (2) will not in any way impair the ability of applicant to
render natural gas service at reasonable rates to its customers in the
United States.
(Order 141, 12 FR 8596, Dec. 19, 1947, as amended by Order 317, 31 FR
432, Jan. 13, 1966)
18 CFR 153.4 Required exhibits.
(a) There shall be filed with the application and as a part thereof
the following exhibits:
Exhibit A. Photostatic or certified copy of articles of
incorporation and by-laws of applicant company;
Exhibit B. A detailed statement of the financial and corporate
relationship existing between applicant and any other person or
corporation;
Exhibit C. Statement, including signed opinion of counsel, showing
that the exportation or the importation of natural gas is within the
corporate powers of applicant, and that applicant has complied with
State laws and with the rules and regulations of State regulatory
authorities in the State or States in which applicant operates;
Exhibit D. If the application is for authority to export natural
gas, copy of the contract or contracts with purchasers in the foreign
country of the natural gas proposed to be exported by applicant;
Exhibit E. If the application is for authority to import natural
gas, copy of the contract or contracts with the producer or seller in
the foreign country of the natural gas proposed to be imported;
Exhibit F. A general or key map on a scale not greater than 20 miles
to the inch, showing the physical location of the facilities utilized in
the applicant's proposed export or import operations. The map should
indicate with particularity the ownership of such facilities at or on
each side of the border between the United States and the foreign
country.
(b) Any exhibit required by this section already on file with the
Commission may be incorporated by reference.
18 CFR 153.5 Other information.
The applicant shall furnish such additional information as the
Commission may deem pertinent.
18 CFR 153.6 Transferability.
(a) Authorizations to export natural gas from the United States to a
foreign country or to import natural gas from a foreign country granted
by order of the Commission under 153.1 to 153.5 inclusive pursuant to
section 3 of the Natural Gas Act shall not be transferable or
assignable. The Commission order granting the authorization may,
however, provide that the authorization shall continue in effect
temporarily for a reasonable time in the event of the involuntary
transfer of facilities used thereunder by operation of law (including
such transfers to receivers, trustees, or purchasers under foreclosure
or judicial sale) pending the making of an application for permanent
authorization and decision thereon, provided notice is promptly given in
writing to the Commission accompanied by a statement that the physical
facts relating to sufficiency of supply, rates, and nature of use remain
substantially the same as before the transfer and as stated in the
initial application for such authorization.
(b) The Commission may also, at any time subsequent to the original
order of authorization, from time to time, after opportunity for
hearing, make such supplemental orders in the premises as it may find
necessary or appropriate.
18 CFR 153.7 Authorization not exclusive.
No authorization granted pursuant to section 3 of the Natural Gas Act
shall be deemed to prevent authorization being granted to any other
person to export natural gas from the United States to a foreign country
or to import natural gas from a foreign country for the same use, or to
prevent any other person from making application for such authorization.
18 CFR 153.8 Filing of contracts, rate schedules, etc.
Persons authorized to export natural gas from the United States to a
foreign country or to import natural gas from a foreign country shall
file two full and complete copies of every contract and the amendments
thereto, presently or hereafter effective, for such export or import,
together with all rate schedules, agreements, leases or other writings,
tariffs, classifications, rules and regulations relative to such export
or import in the manner specified in part 154 of this chapter, except
that the requirements of 154.31 through 154.41 shall not be
applicable.
(Sec. 4, 52 Stat. 822; 15 U.S.C. 717c)
(Order 144, 13 FR 6372, Oct. 30, 1948; 13 FR 6838, Nov. 20, 1948)
18 CFR 153.8 Application for Construction, Operation, Maintenance, or Connection at International Boundary, of Facilities for Exportation or Importation of Natural Gas
18 CFR 153.10 Who shall apply.
Any person, firm, or corporation contemplating the construction of,
or who is operating or maintaining facilities at the borders of the
United States, for the exportation or the importation of natural gas to
or from a foreign country, shall file with the Commission an application
for a Presidential Permit, in compliance with Executive Order 8202,
dated July 13, 1939. In connection with applications hereunder,
attention is directed to the provisions of 153.1 to 153.5, inclusive,
relative to applications for authorization to export or import natural
gas to or from a foreign country under section 3 of the Natural Gas Act.
Editorial Note: Executive Order 8202 was revoked and superseded by
E.O. 10485, Sept. 3, 1953, 18 FR 5397; 3 CFR, 1949 -- 1953 Comp., p.
970.
18 CFR 153.11 Contents of application; number of copies; filing fee.
An original and 9 conformed copies of an application under this
section shall be furnished to the Commission. The Commission reserves
the right to request additional copies. Every application shall be
accompanied by the fee prescribed in part 159 of this subchapter and
shall set forth in the order indicated, the following:
(a) Information regarding applicant;
(1) The exact legal name of applicant;
(2) The name, title, and post office address of the person to whom
correspondence in regard to the application shall be addressed;
(3) If applicant is a corporation: Copy of articles of incorporation
and bylaws; the amount and classes of capital stock; nationality of
officers, directors, and stockholders, and the amount and class of stock
held by each;
(4) Is applicant company, or its transmission lines, owned wholly or
in part by any foreign government or directly, or indirectly
subventioned by any foreign government; or, has applicant company any
understanding for such ownership or by subvention from any foreign
government; if so give full details;
(b) A general or key map on a scale not greater than 20 miles to the
inch, showing the physical location and giving a full description of the
facilities employed, or to be employed in the exportation or importation
of natural gas at the international boundary. The map should indicate
with particularity the ownership of such facilities at or on each side
of the border between the United States and the foreign country.
(c) Statement describing every existing contract that applicant has
with a foreign government, or private concerns, which in any way relate
to the control or fixing of rates for the purchase, sale or
transportation of natural gas and which may serve in any way to restrict
or prevent competing American companies from extending their activities;
also, attach certified copies of such contracts;
(d) Copies of every landing license, or permit, which has been
granted applicant, or any predecessor, by a foreign government or by any
of its agencies, in connection with the exportation or importation of
natural gas.
(Order 141, 12 FR 8596, Dec. 19, 1947, as amended by Order 317, 31 FR
432, Jan. 13, 1966; Order 225, 47 FR 19057, May 3, 1982)
18 CFR 153.12 Other information.
The applicant shall furnish such additional information, in
connection with the application, as the Commission may deem pertinent.
18 CFR 153.12 PART 154 -- RATE SCHEDULES AND TARIFFS
18 CFR 153.12 Pt. 154
Sec.
154.1 Application; obligation to file.
154.11 Rate schedule.
154.12 Contract.
154.13 Service agreement.
154.14 Tariff or FERC gas tariff.
154.15 Filing date.
154.16 Posting.
154.21 Effective tariff.
154.22 Notice requirements.
154.23 Acceptance for filing not approval.
154.24 Rejection of material submitted for filing.
154.25 Informal submission for staff suggestions.
154.26 Copies to be supplied.
154.27 Comments by interested parties.
154.28 Form of notice for Federal Register.
154.31 Application.
154.32 Form, type, and size.
154.33 Binder, title page and arrangements.
154.34 Composition of tariff.
154.35 Table of contents.
154.36 Preliminary statement.
154.37 Map.
154.38 Composition of rate schedule.
154.39 General terms and conditions.
154.40 Composition of service agreement.
154.41 Index of purchasers.
154.42 Pricing of gas produced on or after December 1, 1978, by
pipelines and pipeline affiliates.
154.51 Waiver of notice requirements.
154.52 Exception to form and composition of tariff.
154.61 Application.
154.62 Material submitted with initial rate schedule or executed
service agreement.
154.63 Changes in a tariff, executed service agreement or part
thereof.
154.63a Tax normalization for interstate pipelines.
154.63b Cash working capital.
154.64 Cancellation or termination.
154.65 Adoption of tariff by successor.
154.66 Changes relating to suspended tariffs, executed service
agreements or parts thereof.
154.67 Suspended changes in rate schedules; motions to make
effective at end of period of suspension; procedure.
154.91 Applicability.
154.92 Filing of rate schedules by independent producer.
154.93 Rate schedule defined.
154.94 Changes in rate schedules.
154.95 Oral agreements.
154.96 Filing date.
154.97 Cancellation or termination -- assignment of interest.
154.98 Waiver of notice requirements.
154.99 Number of copies; material to be submitted with changes in
rate schedules.
154.100 Rejection of rate schedules and material submitted for
filing.
154.101 Acceptance for filing not approval.
154.102 Suspended changes in rate schedules; motions to make
effective at end of period of suspension; procedure.
154.103 Limitations on provisions in rate schedules relating to
makeup period for taking prepaid gas.
154.104 (Reserved)
154.105 Area rates -- Southern Louisiana area.
154.106 Area rates -- Hugoton-Anadarko area.
154.107 Area rates -- Appalachian Basin area.
154.108 Area rates -- Illinois Basin area.
154.109 Area rates -- Texas gulf coast area.
154.109a Area rates -- Other Southwest area.
154.109b Area rates -- Rocky Mountain area.
154.110 Applicability of 154.92 through 154.102.
154.111 Limitations on provisions in rate schedules and tariffs.
154.201 Applicability.
154.202 Definitions.
154.203 Recoverable ANGTS charges.
154.204 General rule.
154.205 ACR clause requirement.
154.206 Filing to recover ANGTS charges incurred prior to delivery of
Alaska natural gas.
154.207 Initial filing to recover ANGTS charges associated with the
delivery of Alaska natural gas.
154.208 Filing to track changes in ANGTS charges.
154.209 Filing to restate base tariff rates.
154.210 Refunds from project sponsors.
154.211 Line pack gas costs.
154.212 Separate tracking of ANGTS charges and purchased gas costs.
154.213 Election of an ACR clause.
154.301 Applicability.
154.302 Definitions.
154.303 Election of a PGA clause.
I54.304 Scheduled annual and quarterly PGA filings.
154.305 Annual PGA filing.
154.306 Assessment of past performance.
154.307 (Reserved)
154.308 Quarterly PGA filing.
I54.309 Interim adjustment filings.
154.310 Transition rules.
Authority: 15 U.S.C. 717-717w; 31 U.S.C. 9701; 42 U.S.C.
7102-7352.
Source: Order 144, 13 FR 6372, Oct. 30, 1948; 13 FR 6838, Nov.
20, 1948, unless otherwise noted.
Effective Date Note: At 53 FR 15023, Apr. 27, 1988, part 154 was
amended by Order 493. At 53 FR 16058, May 5, 1988, the Commission
issued an order granting rehearing for the purpose of further
consideration and suspending the effective date (May 2, 1988) of Order
493. At 53 FR 19283, May 27, 1988, a new effective date of August 1,
1988 was set, subject to OMB approval.
18 CFR 153.12 Application
18 CFR 154.1 Application; obligation to file.
(a) On or after December 1, 1948, every natural gas company must file
with the Commission and post in conformity with the requirements of this
part, schedules showing all rates and charges for any transportation or
sale of natural gas subject to the jurisdiction of the Commission and
the classifications, practices, rules and regulations affecting such
rates, charges and services, together with all contracts in any manner
affecting or relating thereto: Provided, however, That all such
presently effective schedules filed with the Commission before the
aforesaid date must be restated as set forth in 154.82 to conform with
the following rules and regulations, and filed and posted on or before
the dates specified in 154.83. The reporting requirements of part 154
governing the filing of contracts, service agreements and related
information do not apply to the sale or transportation of natural gas
pursuant to part 284.
(b) On or after October 31, 1989, any change to a tariff contained in
Volumes 1 and 1A must be submitted on an electronic medium in
conformance with the requirements of 385.2011 of this chapter.
(c) On or after October 31, 1989, any natural gas company submitting
a general rate proceeding pursuant to section 4 of the Natural Gas Act
and 154.63 or a restatement of the base tariff rate pursuant to
154.303(a) must incorporate as part of this filing a resubmittal of
Volumes 1 and 1A of the company's tariff, except executed service
agreements, on an electronic medium pursuant to 385.2011 of this
chapter.
(Order 493, 53 FR 15026, Apr. 27, 1988, as amended by Order 493-B, 53
FR Dec. 9, 1988; Order 493-C, 54 FR 21198, May 17, 1989; Order 516, 54
FR 47760, Nov. 17, 1989)
18 CFR 154.1 Definitions
18 CFR 154.11 Rate schedule.
The term ''rate schedule'' means a statement of a rate or charge for
a particular classification of transportation or sale of natural gas
subject to the jurisdiction of the Commission, and all terms,
conditions, classifications, practices, rules and regulations affecting
such rate or charge. This term also includes any contract for which
special permission has been obtained in accordance with 154.52.
18 CFR 154.12 Contract.
The term ''contract'' means any agreement which in any manner affects
or relates to rates, charges, classifications, practices, rules,
regulations or services for any transportation or sale of natural gas
subject to the jurisdiction of the Commission. This term includes an
executed service agreement.
18 CFR 154.13 Service agreement.
The term ''service agreement'' means an unexecuted form of agreement
for service under a natural-gas company's tariff.
18 CFR 154.14 Tariff or FERC gas tariff.
The term ''tariff'' or ''FERC gas tariff'' means a compilation,
either in book form or on electronic media, of all of the effective rate
schedules of a particular natural gas company, and a copy of each form
of service agreement.
(Order 493, 53 FR 15027, Apr. 27, 1988)
18 CFR 154.15 Filing date.
The term ''filing date'' means the day on which a tariff, or part
thereof, or a contract is received in the office of the Secretary of the
Commission for filing in compliance with the requirements of this part.
(Order 493, 53 FR 15027, Apr. 27, 1988)
18 CFR 154.16 Posting.
The term ''posting'' means:
(a) Making a copy of a natural gas company's tariff and contracts
available during regular business hours for public inspection in a
convenient form and place at the natural gas company's offices where
business is conducted with affected customers, and
(b) Mailing to each customer affected a hard copy of the tariff, or
part thereof, unless another format is agreed to by the parties, at the
time it is sent to the Commission for filing.
(Order 493, 53 FR 15027, Apr. 27, 1988)
18 CFR 154.16 In General
18 CFR 154.21 Effective tariff.
The effective tariff of a natural-gas company shall be the tariff
filed pursuant to the requirements of this part, and permitted by the
Commission to become effective. The tariff filing hereunder must be
accompanied by the fee prescribed in part 381 of this chapter or a
petiton for waiver pursuant to 381.106 of this chapter. No natural-gas
company shall directly or indirectly, demand, charge or collect any rate
or charge for or in connection with the transportation or sale of
natural gas subject to the jurisdiction of the Commission, or impose any
classifications, practices, rules or regulations, different from those
prescribed in its effective tariff and executed service agreements on
file with the Commission, unless otherwise specifically provided by
order of the Commission.
(Order 144, 13 FR 6372, Oct. 30, 1948; 13 FR 6838, Nov. 20, 1948, as
amended by Order 433, 50 FR 40345, Oct. 3, 1985)
18 CFR 154.22 Notice requirements.
All tariffs, and contracts or any parts thereof shall be filed with
the Commission and posted not less than thirty days nor more than sixty
days prior to the proposed effective date thereof unless a different
period of time is permitted by the Commission in accordance with 154.5:
Provided, however, That no natural-gas company shall file under this
part any new rate schedule or contract for the performance of any
service for which a certificate of public convenience and necessity must
be obtained pursuant to section 7(c) of the Natural Gas Act, until such
certificate has been issued. Nothing herein shall be construed as
preventing the natural-gas company from entering into any such agreement
prior to the granting of such a certificate.
18 CFR 154.23 Acceptance for filing not approval.
The acceptance for filing of any tariff, contract or part thereof is
not to be considered as approval by the Commission.
18 CFR 154.24 Rejection of material submitted for filing.
The Commission reserves the right to reject any material submitted
for filing which fails to comply with the requirements set forth in this
part or is not accompanied with the fee prescribed in part 381, unless a
petition for waiver is submitted in lieu thereof under 381.106 of this
chapter.
(Order 144, 13 FR 6372, Oct. 30, 1948; 13 FR 6838, Nov. 20, 1948, as
amended by Order 361, 49 FR 5091, Feb. 10, 1984)
18 CFR 154.25 Informal submission for staff suggestions.
Any natural-gas company may informally submit a tariff or any part
thereof or material relating thereto for the suggestions of the staff of
the Commission prior to filing.
18 CFR 154.26 Copies to be supplied.
(a) General rule. Except as provided in paragraph (b) of this
section, all tariffs, rate schedules, and contracts, or parts thereof,
and material related thereto, including any change in rates, notices of
cancellation or termination, and certificates of adoption, must be
supplied to the Commission in six copies.
(b) Exceptions. On or after October 31, 1989, natural gas companies
submitting a rate filing pursuant to 154.63 or 154.301(a) must submit
this filing on electronic media as prescribed in FERC Form 542-PGA and
385.2011 of this chapter, as applicable.
(c) Submittals. All copies and electronic submissions other than EDI
are to be included in one package together with a letter of transmittal
and all other material and information required by these regulations,
and addressed to the Federal Energy Regulatory Commission, Washington,
DC 20426. If the electronic data submission is made via electronic data
interchange (EDI), the paper copies, a letter of transmittal, and all
other material and information required by these regulations should be
addressed to the Federal Energy Regulatory Commission, Washington, DC
20426. The EDI submissions are to be made as indicated in the
electronic filing instructions and formats for the particular form or
filing. And EDI submission is not deemed to be filed until it is
received in the Commission's VAN mailbox and the paper copies and
accompanying documents are received at the Commission. An EDI
transmission received outside of regular Commission business hours will
be deemed filed the next regular business day.
(Order 493, 53 FR 15027, Apr. 27, 1988, as amended by Order 493-B, 53
FR 49653, Dec. 9, 1988; Order 493-D, 58 FR 7986, Feb. 11, 1993)
18 CFR 154.27 Comments by interested parties.
Comments of any purchaser or other interested party concerning any
filing made pursuant to this part should be submitted within 15 days
after the date of filing. This section shall not limit any right to
file protests and complaints.
18 CFR 154.28 Form of notice for Federal Register.
The company must file a form of notice suitable for publication in
the Federal Register which must be in the following form:
(Name of Company)
Docket No.
Take notice that (name of company), on (date), tendered for filing
proposed changes in its FERC Gas Tariff, Volume No. (number). (The
following language in the first paragraph applies only to rate increase
filings.) The proposed changes would increase revenues from
jurisdictional sales and service by (dollar amount) based on the
12-month period ending (date), as adjusted. (For proposed changes other
than increased rates and charges, the company must state concisely the
nature of these changes.)
(The company must briefly describe the reasons for the proposed
changes in the second paragraph.)
Copies of the filing were served upon the company's jurisdictional
customers (and other parties the company served, inter alia, state
regulatory commissions, other government agencies, etc.).
Any person desiring to be heard or to protest said filing should file
a motion to intervene or protest with the Federal Energy Regulatory
Commission, 825 North Capitol Street, NE., Washington, DC 20426, in
accordance with 385.214 and 385.211 of the Commission's Rules and
Regulations. All such motions or protests should be filed on or
beforeXXXX. Protests will be considered by the Commission in
determining the appropriate action to be taken, but will not serve to
make protestants parties to the proceeding. Any person wishing to
become a party must file a motion to intervene. Copies of this filing
are on file with the Commission and are available for public inspection
in the Public Reference Room.
(Order 483, 52 FR 43879, Nov. 17, 1987)
18 CFR 154.28 Form and Composition of Tariff
18 CFR 154.31 Application.
(a) Sections 154.32 through 154.41 after December 1, 1948, are
applicable to all rate schedules thereafter filed or restated, except
that such sections are only partially applicable to rate schedules filed
under 154.52. (A form, or an electronic record format, of an assembled
tariff is available upon request.) On or after October 31, 1989, these
filings must be on electronic media as prescribed in 385.2011 of this
chapter.
(b) Volumes 1 and 1A tariff sheets filed on or after October 31,
1989, on an electronic medium must conform to the format required in
154.32 through 154.36 and 154.38 through 154.41.
(Order 493, 53 FR 15027, Apr. 27, 1988, as amended by Order 493-B, 53
FR 49653, Dec. 9, 1988; Order 493-C, 54 FR 21199, May 17, 1989)
18 CFR 154.32 Form, type, and size.
(a) When the tariff is provided in hard copy before October 31, 1989,
and thereafter under the waiver provision prescribed in 385.2011 of
this chapter, the tariff must be printed, typewritten or otherwise
reproduced on 8 1/2 by 11 inch sheets of a durable paper so as to result
in a clear and permanent record. The sheets of the tariff must be ruled
to set off borders of 1 1/4 inches on top, bottom and left sides and 1/2
inch on the right side, punched on the left side and assembled in a
binder.
(b) When the tariff is provided on electronic media on or after
October 31, 1989, the tariff paper copy must be printed or otherwise
reproduced on sheets of durable paper so as to result in a clear and
permanent record. The electronic media record format and paper copy
must duplicate the page size, borders and margins provided in paragraph
(a) of this section.
(Order 493, 53 FR 15027, Apr. 27, 1988, as amended by Order 493-B, 53
FR 49653, Dec. 9, 1988)
18 CFR 154.33 Binder, title page and arrangements.
(a) The binder shall show on the front cover:
If it is advisable to submit the tariff in two or more volumes, the
volumes shall be identified by ''Original Volume No. 1'', ''Original
Volume No. 2'', etc., directly below the words ''FPC Gas Tariff.'' Rate
schedules for which special exception has been obtained under 154.52
may be filed in a separate volume as part of the tariff.
(b) When any volume of a tariff is to be superseded or replaced in
its entirety, the replacing volume shall show prominently on the binder
and the title page the volume number being superseded or replaced, as
for example:
(c) The first page shall be a title page which shall carry the
information shown on the cover and, in addition, the name, title, and
address of the person to whom communications concerning the tariff
should be sent.
(d) All sheets except the title page shall have the following
information placed in the margins:
(1) Identification. At the left above the top marginal ruling, the
exact name of the company shall be shown, under which shall be set forth
the words ''FPC Gas Tariff,'' together with volume identification where
applicable.
(2) Numbering of sheets. At the right above the top marginal ruling,
the sheet number shall appear after the words ''Original Sheet No.
------ .'' All sheets in the originally filed tariff shall be numbered
consecutively beginning with the table of contents as ''Original Sheet
No. 1''.
(i) Revised or superseding sheets shall be numbered '' ------ Revised
Sheet No. ------ '' below which shall appear ''Superseding ------ Sheet
No. ------ .'' The first blank above shall show the number of the
revision (i.e., First, Second, etc.) and the sheet number shall be the
same as the sheet replaced. The third and fourths blanks shall be
filled according to the numbering of the sheet replaced.
(ii) Sheets which are to be inserted between two consecutively
numbered sheets shall be designated ''Original Sheet No. ------ ,''
with the blank space filled with the appropriate number and a letter to
indicate an insertion. Illustration: Three sheets which would come
between original sheets 8 and 9 would be designated ''Original Sheet No.
8A,'' ''Original Sheet No. 8B,'' and ''Original Sheet No. 8C.''
(3) Issuing officer and issue date. On the left below the lower
marginal ruling, shall be placed ''Issued by:'' followed by the name and
title of the person authorized to issue the sheet. Immediately below
shall be placed ''Issued on'' followed by the date of issue.
(4) Effective date. On the right below the lower marginal ruling
shall be placed ''Effective:'' followed by the specific effective date
desired by the company.
(5) Sheets filed to comply with Commission orders. Sheets which are
filed to make effective rate schedules or provisions ordered by the
Commission shall carry the following notation in the bottom margin:
''Issued to comply with order of the Federal Power Commission, Docket
No. ------ , dated ------------ .''
18 CFR 154.34 Composition of tariff.
(a)(1) Before October 31, 1989, and thereafter under the waiver
provisions prescribed in 385.2011 of this chapter, the tariff must
contain, in the order named, sections setting forth a table of contents,
a preliminary statement, a map of the system, the rate schedules,
general terms and conditions, form of service agreement and an index of
purchasers: Provided, however, that rate schedules for which special
exception has been obtained under 154.52 may be filed in a separate
volume as permitted by 154.33.
(2) On or after October 31, 1989, the tariff sheets must be submitted
on electronic media as prescribed in 385.2011 of this chapter in the
order stated in paragraph (a)(1) of this section except maps and
executed service agreements which must be submitted on paper.
(b) Rate schedules shall be grouped according to class and numbered
serially within each group, using a letter before the serial number to
indicate the class of service. For example, G-1, G-2 may be used for
general service; CD-1, CD-2 for contract demand service; I-1, I-2 for
interruptible service; T-1, T-2 for transmission service; X-1, X-2 for
schedules for which special exception has been obtained.
(Order 144, 13 FR 6372, Oct. 30, 1948; 13 FR 6838, Nov. 20, 1948, as
amended by Order 493, 53 FR 15027, Apr. 27, 1988; Order 493-B, 53 FR
49653, Dec. 9, 1988)
18 CFR 154.35 Table of contents.
The table of contents shall contain a list of the rate schedules and
other sections in the order in which they appear, showing the sheet
number of the first page of each section. The list of rate schedules
shall consist of: (a) The symbol designation of each rate schedule, (b)
a very brief description of the service, and (c) the sheet number of the
first page of each rate schedule.
18 CFR 154.36 Preliminary statement.
The preliminary statement shall contain a brief general description
of the company's operations and may also contain a general explanation
of its policies and practices. No general rules and regulations shall
be included in the preliminary statement, nor any material necessary for
the interpretation or application of the rate schedules.
18 CFR 154.37 Map.
The map shall show on a single sheet, if practicable, the general
geographic location of the company's principal pipe line facilities and
of the points at which service is rendered under the tariff. Where the
company's rate schedules are generally available by area, the boundary
lines of the rate zones or rate areas should be shown and the areas or
zones identified. The map shall be revised annually to reflect major
changes if any.
18 CFR 154.38 Composition of rate schedule.
The sheets of a rate schedule shall contain a statement of a rate or
charge and all terms and conditions governing its application, arranged
as follows:
(a) Title. Each rate schedule shall have a title consisting of a
designation (see 154.34), and a statement of the type or classification
of service to which it is applicable.
(b) Availability. This paragraph shall describe the conditions under
which the rate is available, and, if necessary, the geographic zone in
which available.
(c) Applicability and character of service. This paragraph shall
fully describe the kind or classification of service to be rendered.
(d) Statement of rate. (1) Except as permitted in 154.52, 154.82
and part 282, all rates shall be clearly stated in cents or in dollars
and cents per unit. Only the rates and charges to be used in current
billing shall be included in the rate schedules.
(2) A rate having more than one part shall have each part set out
separately under appropriate headings such as: Demand Charge, Commodity
Charge, etc. The minimum bill and other provisions affecting charges
shall not be included in this paragraph, but shall be included in
subsequent paragraphs.
(3) No rule, regulation, exception or condition such as tax,
commodity price index, wholesale price index or other similar price
adjustments or periodic changes shall be included in the rate schedule
or any other part of the tariff which in any way purports to effect the
modification or change of any rate or charge specified in the rate
schedule, or the substitution therefor of any other rate or charge:
Provided, however, a natural-gas company may state in the service
agreement or in rate schedules filed pursuant to 154.52 that it is or
will be its privilege, under certain specified conditions, to propose to
the Commission a modification, change or substitution of the then
effective rate or charge: Provided further, That no such clause may
effectuate a change in an effective rate or charge except in the manner
provided in section 4 of the Natural Gas Act, as amended, and the
regulations in this part.
(4) Refunds. If a pipeline does not elect to recover its gas costs
under the PGA filing procedures in 154.301 through 154.310, and holds
supplier refunds for more than 30 days, the jurisdictional portion of
supplier refunds (including interest received), applicable to periods in
which a PGA clause was in effect, must be flowed through to the
pipeline's jurisdictional customers with interest. The reporting
requirements for refunds accomplished through billing adjustments are
set forth in 270.101(f) and 273.302(f) of this chapter. An interstate
pipeline, that does not make a PGA filing under 154.301 through
154.310, but has recovered refunds through billing adjustments pursuant
to 270.101(e) or 273.302 of this chapter during a calendar year, must
file a refund report for that year by the following March 1 which sets
forth all the information required by 270.101(f) and 273.302(f)(2)(i)
of this chapter. Any requirement for the serving and filing of other
reports showing details of the computations of any such refunds, must be
either as agreed in settlement discussions held among the pipeline,
jurisdictional customers, interested state commissions, other interested
parties, and the Commission staff, or as prescribed by Commission order.
(5)(i) Commission approval may be requested of rate treatment for
RD&D expenditures of $50,000 or more related to a project undertaken by
the company or as part of a project undertaken by others, or for a group
of projects which, in the aggregate, cost $50,000 or more when advance
assurance of rate base treatment is desired. This approval may be
requested regardless of whether the RD&D is undertaken by the utility or
by other party or organization. Approval requests shall describe the
project in such detail so as to satisfy the Commission that the project
expenditures involved qualifies as being valid, justifiable, and
reasonable. In addition, the request shall specifically include the
estimated cost of the project and a description of utility's expenditure
percentage in the total project program. When a utility participates in
a joint project, the contractual agreements should provide the utility
complete access to cost records and results related to the project.
Records shall be so kept that unscheduled progress reports may be called
for as determined by the Commission.
Approval requests shall justify any conduct of or partial support of
large-scale demonstration facilities by clearly identifying and
justifying the portions of the capital and operating costs which require
the high risk financial support necessary to the pursuit of RD&D. The
justification of support for a large-scale demonstration facility shall
include a statement as to the planned accounting treatment of revenue
which may be derived from the facility's product and of proceeds which
may be derived from the sale of the facility.
(ii) Where more than one jurisdictional company proposes to support
an RD&D organization as defined below, an approval request may be
submitted to the Commission by the RD&D organization covering the
organization's RD&D program as defined below. Approval by the
Commission of such RD&D program shall constitute approval of individual
companies' contributions to the RD&D organization. Organizations
eligible to receive contributions from companies and to request program
approval from the Commission under this section may be RD&D
organizations broadly supported by a number of energy industry sectors
(e.g., natural gas, electric power, petroleum, coal, nuclear energy);
RD&D organizations broadly supported by a single industry sector;
regional organizations that work primarily on problems of a regional
nature; or consortia of companies that jointly support RD&D programs
for the collective benefit of their ratepayers.
(iii) RD&D organizations or individual jurisdictional companies
requesting RD&D approval shall annually submit a five-year program plan
at least 180 days prior to the commencement of the five-year period of
the plan. The plan shall clearly state the objectives within and beyond
the five-year period and clearly relate the objectives to the interests
of the ratepayers, the public, and the industry and to the objectives of
other major research organizations, particularly the U.S. Energy
Research and Development Administration. The plan shall contain
sufficient budget, technical, and schedule details to afford an
understanding of the work to be performed, to allow an assessment of the
probability of success, and to permit comparison with other
organizations' research plans. The commencement date and expected
termination date for individual research, development, and demonstration
projects to be initiated during the first year of the plan will be given
along with expected annual costs. The plan shall discuss the RD&D
efforts and progress since the preparation of the program plan submitted
the previous year and shall explain any changes that have been made in
objectives, priorities, and budgets since the plan of the previous year.
The plan shall identify all jurisdictional companies that will support
the program and their budgeted support. The plan shall identify those
persons involved in the development, review, and approval of the plan
and shall state the amount of effort contributed and the degree of
control exercised in each. The principal tests for the adequacy of
proposed plan shall be the following guidelines.
(a) Evidence that the RD&D objectives of the company or research
organization have been clearly established.
(b) Evidence that the plan evolves from these RD&D objectives and
adequately utilizes the viewpoints of scientific, engineering, industry,
economic, consumers and environmental interests.
(c) Evidence that an effective mechanism exists and is used for
coordinating this research and development plan with other relevant
efforts of national scope.
(d) Evidence that the project or program is well conceived and has a
reasonable chance of benefitting the ratepayer in a reasonable period of
time, having due regard to the basic, exploratory or applied nature of
each submitted RD&D project.
(e) Evidence that whatever achievements may result, including the
knowledge gained or technology developed from the RD&D effort, if any,
will accrue to the benefit of the sponsoring jurisdictional company(s)
and its/their customers.
(iv) Within 120 days of filing of the five-year RD&D plan as defined
above, the Commission will state its decision with respect to
acceptance, partial acceptance, or rejection of the plan, or, when the
complexity of issues in the plan so requires, will set a date certain by
which a final decision will be made, or will order the matter set for
hearing. Partial rejection of a plan by the Commission will be
accompanied by a decision as to the partial level of acceptance which
will be proportionally applied to all contributions listed for
jurisdictional companies in the plan. Approval by the Commission of a
five-year plan constitutes approval for rate treatment of all projects
identified as starting during the first year of the approved plan.
Continued rate treatment will be dependent upon review and evaluation of
subsequent annual reports.
(v) A natural gas pipeline company may submit a research, development
and demonstration cost adjustment provision to flow through changes in
its expenditures for research, development and demonstration. 4003
Changes permitted hereunder include both expenditures chargeable to
operations as well as rate base treatment of the balances in account 188
as hereinafter defined. No RD&D adjustment provision shall become
effective until authorized by the Commission. No request for RD&D
adjustment provision will be considered by the Commission unless the
proposed clause indicates the following terms and conditions:
(a) The RD&D expenditures adjustment shall be reflected in the
company's rates only when it amounts to at least one-tenth of 1 mill
($0.0001) per thousand cubic feet of annual jurisdictional sales. Rate
changes shall be applied to the commodity component of the existing
rates of a pipeline company's two-part rates and to the volumetric rates
of a pipeline company's one-part rates.
(b) Rate changes shall be computed and filed not more frequently than
semi-annually. Rate changes by companies having Commission approved PGA
clauses should be computed and filed to the extent practicable to
coincide with the proposed effective date of a PGA rate change.
(c) Except in the case of expenditure approval pursuant to
154.38(d)(5)(ii) RD&D expenditures chargeable to operations which may be
tracked and reflected in rates shall be the amount which actual RD&D
expenditures during the 12-month period ending 3 months prior to a
proposed rate adjustment exceed or are less than (1) the amount allowed
in the companies last rate proceeding or the average of 3 years RD&D
expenditures if such rate adjustment is an initial filing under the
subsection; or (2) the actual RD&D expenditures in the company's last
prior rate adjustment under this section.
(d) RD&D expenditures in account 188 which are eligible to receive
rate base treatment and which may be tracked and reflected in rates
shall be the amount which the actual balances in such account during the
12-month period ending 3 months prior to the proposed rate adjustment
exceed or are less than the balances in such account as of the date of
this regulation, if an initial filing under this section, or the
balances in account 188 included in the company's last prior rate
adjustment under this subsection. For the purpose of determining the
balance which may be tracked the company shall reduce the balance in
account 188 by all moneys recorded in account 495 related to its RD&D
expenditures and shall increase or reduce such account balance, as
appropriate, by the applicable accumulated deferred income taxes. The
rate of return used by the company to determine the rate effect of the
rate base treatment of the balance in account 188 shall be the rate of
return last allowed by the Commission during the previous 3-year period.
If there has been no such rate of return allowed during the previous
3-year period, then, in the absence of evidence submitted to the
contrary, the return utilized shall be the present interest rate used
for computing refunds as specified in 154.67.
(e) Any tariff filing made by the company to increase its rates to
its customers shall meet the notice requirements of 154.22, which
provide, in pertinent part, that the filing be filed with the Commission
and posted (as defined in 154.16) at least 45 days prior to the date on
which any change(s) in its existing rates is to become effective.
Simultaneously with the above filing, the company shall furnish the
Commission, jurisdictional customers, and interested State Commissions a
report containing detailed computations which clearly show the
derivation of the proposed rate adjustment. The effect upon
jurisdictional rates shall be determined by computing the unit change
(either increase or decrease) based upon jurisdictional sales volumes
for the 12-month period ending 3 months prior to the proposed rate
adjustment. Any RD&D expenditure for which the company has been allowed
to track by other regulatory body shall be clearly designated and
treated in such a manner so as to avoid double recovery. Each rate
adjustment shall become effective on the proposed effective date without
suspension provided that except in the case of rate adjustments based on
expenditure approval pursuant to 154.38(d)(5)(ii) any rate increase
shall be subject to reduction and refund of any portion found after
hearing to be unjustified by a final Commission order.
(f) In addition to the above required report containing the
derivation of the proposed rate, the following additional data shall be
submitted as part of the application: A statement as to the anticipated
scope and objective of the RD&D and the relationship of such objective
to the jurisdictional service for which the tracking is to apply. If
the tracking is not to apply to certain jurisdictional service but is to
apply to others, a statement as to the reasons for such determination.
(g) No company shall be required to reduce its rate under this
subsection by an increment exceeding the aggregate increases allowed
thereunder.
(6)(i) A natural gas pipeline company may adjust its rates annually
to recover from its customers annual charges assessed it by the
Commission under part 382 of this chapter pursuant to an annual charge
adjustment clause (ACA clause). The ACA clause: (A) Must be filed with
the Commission; (B) must indicate the amount of annual charges to be
flowed through per unit of energy sold or transported (ACA unit charge);
and (C) can only be effective if approved by the Commission. A natural
gas pipeline choosing to recover its annual charges pursuant to an ACA
clause must use the ACA unit charge specified by the Commission at the
time the Commission calculates the annual charge bills.
(ii)(A) Except as provided in paragraph (d)(6)(ii)(B) of this
section, a company must reflect the ACA unit charge in each of its rate
schedules applicable to sales or transportation deliveries. The company
must apply the ACA unit charge to the commodity component of rate
schedules with two-part rates. The company seeking authorization to use
an ACA unit charge must file with the Commission an ACA-related tariff
sheet which must include:
(1) Language specifying the purpose and manner of collecting the ACA
(to collect an ACA per unit charge as specified by the Commission,
applicable to all the pipeline's sales and transportation schedules),
(2) The per unit charge of the ACA,
(3) The proposed effective date of the tariff change (30 days after
the filing of the tariff sheet, unless a shorter period is specifically
requested and justified in a waiver petition), and
(4) An expression of the pipeline's intent not to recover any annual
charges recorded in FERC Account No. 928 in a NGA Section 4 rate case,
(5) Tariff sheets must be accompanied by the filing fee specified in
381.204 of the Commission's regulations. Subsequent tariff filings
amending the initial ACA-related tariff sheet must be accompanied by the
filing fee specified in 381.205 of the Commission's regulations.
(B) If a pipeline files in 1987 a revision of an ACA-related tariff
for the purpose of complying with the requirements of this section, the
pipeline will not be required to pay a filing fee for the revised tariff
sheet.
(iii) Changes to the ACA unit charge must be filed annually to
reflect the annual charge unit rate, as authorized by the Commission
each fiscal year. Any tariff filings made by the company to change its
ACA unit charge must meet the notice requirements of 154.22 of this
part.
(iv) Only if the company has paid the applicable annual charge in
compliance with 382.103 of this chapter, its ACA unit charge can go
into effect.
(v) A company may recover annual charges through an ACA unit charge
only if its rates do not otherwise reflect the costs of annual charges
assessed by the Commission under 382.106(a)(i) of this chapter.
(e) Minimum bill. The minimum bill heading shall appear on every
rate schedule followed by the word ''none'' if no minimum bill is
provided.
(f) Other provisions. All other major provisions governing the
application of the rate schedule, such as determination of billing
demand, contract demand, heat content, measurement base, shall be set
forth similarly with appropriate headings, or if appropriate, they may
be incorporated by reference to the applicable general terms and
conditions.
(g) Applicable general terms and conditions. This paragraph shall
list by reference the general terms and conditions set forth in the
following section which apply to the particular rate schedule.
(Order 144, 13 FR 6372, Oct. 30, 1948)
Editorial Note: For Federal Register citations affecting 154.38,
see the List of CFR Sections Affected in the Finding Aids section of
this volume.
Editorial Note: For documents clarifying amendments issued at 52 FR
21263, June 5, 1987, under Order 472 to 154.38, see 52 FR 23650, June
24, 1987 and 53 FR 1748, Jan. 22, 1988.
0034For purposes of this subsection, RD&D expenditures represent
those cost includable in Account 188, Research, Development and
Demonstration expenditures.
18 CFR 154.39 General terms and conditions.
(a) This section shall contain provisions which apply to all or any
of the rate schedules and which may more conveniently be arranged in a
separate section of the tariff. Subsections and paragraphs shall be
numbered for convenient reference.
(b) The general terms and conditions of the tariff shall contain a
statement of the company's policy with respect to the financing and/or
construction of sales laterals serving resale customers. For the
purposes of this section, the term ''sales lateral'' is defined as any
pipeline extension (other than a main line extension) built from an
existing pipeline facility to deliver natural gas to one or more
customers of the company inclusive of both new and present purchasers,
and, for present purchasers, inclusive of new delivery points and
enlargements or replacements of present sales lateral pipelines.
(1) If it is the company's policy to build or contribute to the
construction of any sales laterals to resale customers, the statement
shall contain the following elements:
(i) An explicit statement in measurable quantitative terms (e.g.,
estimated revenues, estimated cost of service, estimated sales volumes,
pipeline system capacity, or other specific quantitative factors) of the
method(s) or formula(s) by which the company determines the amount of
its or the purchaser's contribution to the construction of any sales
lateral pipeline. If the company's policy contemplates subsequent
adjustment of initial contributions to construction to reflect actual
operating experience, the statement shall set forth the method by which
the adjustment is computed, and shall indicate (a) when the adjustment
is determined, and (b) how the company disburses or collects additional
contributions. The statement required by this subparagraph shall be
formulated so as to facilitate ready computation of the respective
contributions to sales lateral construction of the pipeline company and
its purchaser. Reference to imprecise criteria (e.g., ''economic
feasibility'') will be unacceptable.
(ii) The following statement: ''Nothing in this policy statement
shall require (the company) to file an application for a certificate of
public convenience and necessity under section 7(c) of the Natural Gas
Act. Nothing in this policy statement, further, shall prevent (the
company) from contesting an application for service filed pursuant to
section 7(a). (The company) reserves the right to seek a waiver of the
policy set forth herein, for good cause shown, during any proceeding
before the Commission instituted under section 7 of the Natural Gas
Act.''
(2) If it is the company's policy not to build or contribute to the
construction of any sales laterals to resale customers, the policy
statement shall read as follows: ''(The company) will not build or
contribute to the cost of building any sales lateral pipelines to resale
customers.'' This statement shall be followed by the provision required
by paragraph (b)(1)(ii) of this section.
(Secs. 5, 7, 52 Stat. 823, 824; 15 U.S.C. 717d, 717f)
(Order 328, 31 FR 13721, Oct. 25, 1966, as amended by Order 365, 33
FR 10140, July 16, 1968)
18 CFR 154.40 Composition of service agreement.
There shall be submitted as part of the tariff an unexecuted copy of
each form of service agreement. The service agreement forms should
provide for insertion of such items as the name of the purchaser,
service to be rendered, area to be served, maximum obligation to
deliver, delivery points, delivery pressure, applicable rate schedules
by reference to the tariff, effective date and term, and identification
of any prior agreements being superseded.
18 CFR 154.41 Index of purchasers.
(a) The index of purchasers shall contain an alphabetical list of all
purchasers under the tariff, showing for each the rate schedule or
schedules under which service is rendered, and the following information
concerning the contract: (1) The date of execution, (2) the effective
date and (3) the term.
(b) The index of purchasers shall be kept current by filing new or
revised sheets within 60 days of any change.
18 CFR 154.42 Pricing of gas produced on or after December 1, 1978, by
pipelines and pipeline affiliates.
(a) Applicability. This section applies to natural gas that is
produced by an interstate pipeline or an affiliate thereof and that is
delivered to such pipeline or affiliate in a first sale on or after
December 1, 1978.
(b) General rule. Except as provided in paragraph (c) of this
section, natural gas to which this section applies shall be priced at a
rate not to exceed the lower of:
(1) The applicable rate under part 271 or part 272 of subchapter H;
or
(2) The amount paid in comparable sales between persons not
affiliated with such interstate pipeline, affiliate, or each other.
(c) Cost-of-service treatment. A pipeline that has been permitted to
price its production on a cost-of-service basis may price natural gas to
which this section applies on a cost-of-service basis for ratemaking
purposes in any pipeline rate proceeding. The Commission will review
such a price if it exceeds the maximum lawful price that would otherwise
apply to the first sale of such gas at the wellhead under part 271 or
part 272 of subchapter H.
(d) Subchapter H requirements. A pipeline or affiliate that produces
natural gas for which the maximum lawful price under part 271 or part
272 of subchapter H is available under paragraph (b) of this section
shall be subject to all the requirements of subchapter H including the
requirement of 270.101(d)(1) regarding applicable filing requirements
under 154.92 and 154.94. Such pipeline or affiliate may apply for a
waiver of any time-of-filing requirement in subchapter H.
(e) Definitions. For purposes of this section:
(1) NGPA definitions. The terms ''interstate pipeline,''
''affiliate,'' ''first sale,'' and ''intracompany operating statement''
have the same meaning for this section as they have for subchapter H.
(2) Pipeline rate proceeding. The term ''pipeline rate proceeding''
includes a proceeding under 154.305, 154.308, and 154.309.
(Natural Gas Act, 15 U.S.C. 717-717w (1982); Natural Gas Policy Act
of 1978, 15 U.S.C. 3301-3432 (1982); Department of Energy Organization
Act, 42 U.S.C. 7101-7352 (1982); E. O. 12009, 3 CFR part 142 (1978))
(Order 391, 49 FR 33858, Aug. 27, 1984, as amended by Order 483, 52
FR 43880, Nov. 17, 1987)
18 CFR 154.42 Special Permissions
18 CFR 154.51 Waiver of notice requirements.
Upon application and for good cause shown, the Commission may by
order provide that a tariff, contract, or part thereof shall be
effective on less than 30 days notice. The Commission, upon request and
for good cause shown, may permit a tariff, contract, or part thereof to
be filed prior to sixty days before the proposed effective date.
18 CFR 154.52 Exception to form and composition of tariff.
(a) Upon application and for good cause shown, the Commission may
permit special rate schedules to be filed in the form of an agreement in
the case of special operating arrangements such as for exchange or
transportation of natural gas; or for the sale of gas at charges
computed on a cost-formula basis, which charges need not be stated in
cents or in dollars and cents per unit. Such rate schedules shall
conform to the form, type and size specified in 154.32 and shall
contain on each sheet the marginal notation specified in 154.33. In
addition each such rate schedule shall contain a title page which shall
show its designation, the parties to the agreement, the date of
agreement and a brief generalized description of services to be
rendered. Such rate schedules shall not contain any supplements. Any
modifications shall be by revised or insert sheets.
(b) Such rate schedules may be included in a separate volume of the
tariff, which shall contain a table of its contents. This table of
contents shall also be incorporated with the table of contents of other
volumes.
(c) Purchased gas cost tracking under special operating arrangements
filed pursuant to this section must conform to the requirements set
forth in 154.301 through 154.310.
(Order 144, 13 FR 6372, Oct. 30, 1948, as amended by Order 483, 52 FR
43880, Nov. 17, 1987)
18 CFR 154.52 Method of Submission for Filing
18 CFR 154.61 Application.
Sections 154.62 through 154.65, except as otherwise specifically
provided in this part, apply to all tariffs, executed service
agreements, or parts of service agreements, which are filed after
December 1, 1948. On or after the October 31, 1989, Volumes 1 and 1A
tariffs filed pursuant to 154.62, 154.63 (except 154.63(b)) and
154.303(e) must be filed on an electronic medium as prescribed in
385.2011 of this chapter.
(Order 493-C, 54 FR 21199, May 17, 1989)
18 CFR 154.62 Material submitted with initial rate schedule or executed
service agreement.
(a) Initial rate schedules or executed service agreements submitted
pursuant to this section before October 31, 1989, may be on paper.
Initial rate schedules submitted pursuant to this section on or after
October 31, 1989, must be on electronic media as prescribed in 385.2011
of this chapter. On or after October 31, 1989, executed service
agreements must be filed on paper.
(b) With the filing of any initial rate schedule or executed service
agreement not superseding or making any change in a rate schedule,
executed service agreement, or part thereof already on file, there shall
be included a letter of transmittal containing a list of the material
inclosed, the date on which such filing is proposed to become effective,
and a list of the purchasers to whom it has been mailed: Provided,
however, That the provisions of this section shall not be applicable to
filings made pursuant to 154.81 through 154.86.
(c) In addition, the following material shall be submitted where
applicable:
(1) Statement of the reasons for initial rate schedule. A statement
of the nature, and the reason for such proposed initial rate schedule.
Data submitted in response to subsequent items may be included by
reference as a part of the response to this item.
(2) Estimate of sales and revenues under an initial rate schedule or
executed service agreement. An estimate of sales or transportation
performed and revenues thereunder, by months, for the 12 months
immediately succeeding the proposed effective date. The estimate shall
be subdivided by rate schedules, classes of service, customers and
delivery points, when more than one is involved. Such data shall
include estimates of actual and billing quantities, that are to be used
to compute the charges, such as actual demands, billing demands,
volumes, heat content, and other determinants.
(3) Basis of the rate or charge proposed in initial rate schedule. A
statement shall be submitted explaining the basis used in arriving at
the proposed rate or charge. Such statement shall clearly show whether
such rate or charge results from negotiation, cost of service
determination, competitive factors, or others, and shall give the nature
of any studies which have been made in connection therewith. If all or
any portion of such information has already been submitted to the
Commission, specific reference thereto should be made.
(Order 144, 13 FR 6372, Oct. 30, 1948; 13 FR 6838, Nov. 20, 1948, as
amended by Order 493, 53 FR 15027, Apr. 27, 1988; Order 493-B, 53 FR
49653, Dec. 9, 1988)
18 CFR 154.63 Changes in a tariff, executed service agreement or part
thereof. 1004
(a) Definitions -- (1) Changes other than in rate level. Rate
filings for changes other than in rate level include inter alia changes
in service agreements (changed contract demand, new delivery points,
etc.), tariff provisions (changed penalty provisions, changed delivery
pressures, etc.), rate form (where no change in revenue is
contemplated).
(2) Major rate increase. (i) Rate changes that will result in a
general increase in revenues for the stated purpose of obtaining a fair
rate of return on jurisdictional sales,
(ii) Rate changes that extend to all, or substantially all, of the
jurisdictional sales, or
(iii) Rate changes associated with the delivery of substantially
changed volumes of gas to existing customers.
(3) Minor rate increase. Minor rate increases usually relate to a
few schedules and are designed to bring such schedules into harmony with
general tariff policy, to eliminate inequities and to achieve other
formal adjustments, in cases where any increase in revenue is
subordinate to some other purpose. They include changes that are not
designed to provide general revenue increases such as to offset
increased cost or otherwise achieve a fair return on the overall
jurisdictional business. For the purpose of compliance with this
subchapter, proposed increases in rates or charges which, for the test
period, do not exceed the smaller of $100,000 or 5 percent, of the
revenues under the jurisdiction of the Commission shall be considered
minor.
(4) Rate decrease. Changes in rate level no part of which directly
or indirectly result in any increased charge to a customer or class of
customers will be considered as a rate decrease.
(b) Material to be submitted -- (1) All filings. In addition to the
requirements in paragraph (b)(5) of this section, with the filing of any
tariff, executed service agreement or part thereof which changes or
supersedes any tariff, contract or part thereof on file with the
Commission, there must be included the following:
(i) A letter of transmittal containing a list of the material
enclosed, the date on which such filing is proposed to become effective,
the docket number, if any, of the proceeding in which the change was
authorized and a list of the names and addresses of the purchasers and
State Commissions to whom it has been mailed.
(ii) A statement of the nature, the reasons, and the basis for the
proposed change.
(iii) A fee in the amount prescribed in part 381 of this chapter,
unless a petition for waiver is submitted in lieu thereof under 381.106
of this chapter.
(iv) The representation of the chief accounting officer when the
filing is submitted on electronic media on or after October 31, 1989, as
prescribed in 385.2011 of this chapter.
(2) Changes other than in rate level. In addition to the material
required by paragraph (b)(1) of this section there shall be submitted a
comparative statement of sales made, or transportation, exchange, etc.,
performed, and revenues therefrom, by months and in total, under the
present and proposed tariff, contract, or part thereof, setting forth
the transactions for the twelve months immediately preceding and for the
twelve months immediately succeeding the proposed effective date of the
change in tariff, contract, or part thereof. Actual data shall be used
as far as possible, and any estimated data shall be designated as such.
The statements shall be subdivided by rate schedules, classes of
service, customers, and delivery point when more than one is involved.
In the event any sale shown separately is made through more than one
delivery point, and conjunctive billing is provided by the tariff, the
above data may be combined for all delivery points. Such data shall
include billing quantities that are used to compute the charges
including contract demands, billing demands, metered demands and
volumes, heat content, rates and other determinants, in sufficient
detail to permit complete verification of the revenues.
(3) Major rate increase. Major natural gas companies (as defined in
subchapter F, part 201, Uniform System of Accounts Prescribed for
Natural Gas Companies Subject to the Provisions of the Natural Gas Act
of this chapter) shall submit, in addition to the material required by
paragraph (b)(1) of this section, Statements A to M inclusive and O and
P described in paragraph (f) of this section. Nonmajor companies,
defined above shall file only Statements L, M, N, O, and P. Statement
P, which is required to be submitted by all classes of companies, may be
furnished not later than 15 days after the date of the filing. A
natural gas company filing another major increase in rates or charges
within a period of twelve months after the date of filing of Statements
A through M and O and P or after the end of the test period used therein
including the period of adjustments shown on Statements A through M may
submit for such other increase Statements L, M, and N in lieu of
Statements A through M if the proposed new rate increase is filed to
compensate only for an increase in the cost of purchased gas and there
has been no material change in the company's facilities, sales volumes,
and cost of service other than cost of purchased gas since such prior
rate increase was filed. However, pipelines with Commission approved
PGA clauses conforming to 154.303 shall not be permitted to include
changes in purchased gas cost in filings made under this subparagraph
unless they have received a waiver of their PGA election under 154.303.
A pipeline with an effective Commission approved PGA clauses shall
reflect in any filing made pursuant to this paragraph the total system
weighted average current unit cost of purchased gas reflected in the
pipeline's latest effective PGA rate adjustment, unless the pipeline has
received a waiver of its PGA election under 154.303.
(4) Minor rate increase, rate decrease and changes in cost of service
tariff. Only Statement L through N need be filed in addition to the
material required by paragraph (b)(1) of this section. (Statements L
through N are not required to make effective rate changes or tariff
provisions ordered by the Commission). A pipeline with an effective
Commission approved PGA clause conforming to 154.303 shall not be
permitted to include changes in purchased gas costs in rate filings made
pursuant to this subparagraph unless the pipeline has received a waiver
of its PGA election under 154.303. A pipeline with an effective
Commission approved PGA clause shall reflect in any filing made under
this subparagraph the total system weighted average current unit cost of
purchased gas reflected in the pipeline's latest effective PGA rate
adjustment, unless the pipeline has received a waiver of its PGA
election under 154.303. However, the pipeline may adjust the purchased
gas volumes.
(5) On or after October 31, 1989, all filings under 154.63 must be
on electronic media pursuant to 385.2011 of this chapter, unless a
waiver is granted by the Commission.
(c) Submission and rejection -- (1) Submission of material by
reference. If all or any portion of the information called for by this
section has already been submitted to the Commission or is included
among the data filed pursuant to this section, specific reference
thereto may be made in lieu of resubmission in response to these
requirements.
(i) Before October 31, 1989, copies of material submitted by
reference must be made available to the staff and six additional copies
thereof must be furnished to the Director, Division of Gas Pipeline
Rates (Office of Pipeline and Producer Regulation) to be available to
interveners according to their needs, after their intervention has been
permitted by the Commission.
(ii) On or after October 31, 1989, copies of material submitted by
reference must be on electronic media as prescribed in 385.2011 of this
chapter.
(2) Item by reference for major rate increase. In addition to the
material required to be submitted pursuant to paragraph (b)(3) of this
section, the last FERC Form No. 2 of the natural gas company on file
with the Commission shall be made an item by reference. In the event an
FERC Form No. 2 for a later calendar year would otherwise be required
to be filed with the Commission within 60 days from the end of the base
period selected by the natural gas company for its rate increase filing,
said FERC Form No. 2 shall be filed concurrently with the rate
increase. There shall be furnished to the Director, Division of Gas
Pipeline Rates (Office of Pipeline and Producer Regulation) with the
rate increase filing, one copy of the FERC Form No. 2 to be available
to staff and six additional copies to be available to interveners
according to their needs after intervention has been approved by the
Commission.
(3) Reliance on other data. If the natural gas company has relied on
data other than those in Statements A through P in support of its rate
increase, such other data, appropriately identified and designated as
such and separately stated, shall be submitted in addition to the data
required by Statements A to P, in accordance with the requirements of
paragraphs (d) and (e) of this section and limited to the test period
prescribed in paragraph (e)(2) of this section. Where such other data
fails to comply with the requirements herein prescribed, it shall be
subject to rejection and if not properly refiled at least 15 days prior
to the effective date proposed for the rate filing it may not thereafter
be introduced in evidence in the event the proposed rate filing is set
for hearing.
(4) Rejection for noncompliance. Where the data submitted in
compliance with paragraph (b) of this section do not comply with the
requirements of the rules and regulations, the rate filing is subject to
rejection.
(d) Form and number of copies -- (1) Changes other than in rate
level. Filings for changes other than in rate level shall comply with
154.26.
(2) Change in executed service agreement. Agreements intended to
effect a change or revision of an executed service agreement shall be in
the form of a superseding executed service agreement only. Service
agreements shall not contain any supplements, but may contain exhibits
(stating contract demand, delivery points, delivery pressures, names of
industrial customers of the distributor-customer, names of distributors
with one named as agent where delivery to several distributors is
effected at the same delivery point and well names) which may be
separately superseded.
(3) Rate changes. Before October 31, 1989, ten sets of the
statements and of the additional information, if any, must be submitted,
each set securely bound in a cover. On or after October 31, 1989, the
statements and additional information, if any, must be submitted on
electronic media as prescribed in 385.2011 of this chapter.
(4) Format of statements and schedules. Amounts purporting to
represent book data included in statements and schedules required to be
prepared or submitted as part of the filing shall be reported in a
separate column or columns. All adjustments to book amounts shall also
be reported in a separate column or columns so that book amounts,
adjustments thereto and adjusted amounts will be clearly disclosed.
(e) Scope and composition of material for major increase -- (1)
Preparation for hearing. A natural gas company filing for an increase
in rates or charges shall be prepared to go forward at a hearing on
reasonable notice on the data which have been submitted and sustain the
burden of proof imposed by the Natural Gas Act of establishing that its
proposed changes are just and reasonable and not unduly discriminatory
or preferential. The Commission is desirous of avoiding delay in
processing rate filings. To this end, the material relied on in the
filing and supporting work papers should be of such composition, scope,
and format that it could serve as the company's complete case-in-chief
in the event the rate is suspended and the matter is set for hearing to
commence on a date within six months from the date of filing. If the
rate fixing adjustments presented are not in full accord with a prior
Commission decision directly involving the filing company, the company
shall include in its working papers alternate material which will
reflect the effect of such prior decision. (For purpose of this
provision, rate of return is not a rate fixing adjustment.)
(2) Base and test periods. (i) If the natural gas company has been
in operation for 12 months at the time of the filing, the Statements A
to M, inclusive, and O and P or, L through N inclusive, as appropriate,
and supporting schedules, shall be based upon a test period which shall
consist of a base period of 12 consecutive months of most recently
available actual experience, adjusted for changes in revenues and costs
which are known and are measurable with reasonable accuracy at the time
of the filing, and which will become effective within nine months after
the last month of available actual experience utilized in the filing,
but in no event shall such test period extend more than nine months
beyond the date of filing; Provided, however, That, for good cause
shown, upon application of the natural gas company made to the
Commission 30 days in advance of the rate filing, the Commission may
allow reasonable deviation from the prescribed test period; Provided
further, That the last day of the 12 months of actual experience shall
not be more than four months prior to the date of filing the proposed
change in rates and charges. The 12 months of experience shall be
adjusted to eliminate nonrecurring items (except minor amounts), but
this shall not preclude the filing company from including items which,
on the basis of existing facts, it can show will be experienced or from
including an appropriate normalizing adjustment, e.g., rate case
expenses, in lieu of a nonrecurring item. If the natural gas company
has had less than 12 months' experience, the test period may consist of
12 consecutive months ending not more than one year from filing date,
provided, however, the adjustments are not included for occurrences
anticipated after the one-year period. The Commission may allow
reasonable deviation from the prescribed test period; also, deviation
will be allowed when the filing company proposes to support the changed
rate levels with actual expense for a 12 month base period adjusted only
for annualization and normalization of those actual costs.
(ii) Adjustments to experience, or estimates where 12 months'
experience is not available, may include the amounts for facilities for
which a permanent or temporary certificate has been granted, provided
such facilities will be in service within the test period, but such
adjustments or estimates shall not include any amounts for facilities in
respect to which a certificate of public convenience and necessity must
be obtained but which has not been issued at the date of filing, nor
shall adjustments or estimates include any amounts for other facilities
associated therewith. The bases and procedures, including the docket
number of each such outstanding certificate and other significant data,
used in the derivation of adjustments or estimates shall be submitted in
sufficient detail on supporting schedules as to permit ready analysis of
such adjustments or estimates.
(3) Joint facilities. If the natural gas company operates other
departments in addition to the natural gas operations involved in the
subject rate increase and has allocated to such natural gas operations
any of its investment in joint or other department facilities and the
operation, maintenance, depreciation costs or taxes associated
therewith, it shall be shown on the statements required to be filed by
this section, or the schedules in support thereof, the amounts so
allocated together with the methods used in making such allocations:
Provided That if such allocations are recorded in the natural gas
company's books on the basis of current accounting procedures the
submittal may be confined to a brief description of the methods
followed.
(4) Working papers and supporting data. (i) In the statements
described in paragraph (f) of this section, certain items are designated
as being included in working papers. When the tariff is provided in
hard copy before October 31, 1989, there is to be furnished to the
Director, Division of Gas Pipeline Rates (Office of Pipeline and
Producer Regulation) upon filing the rate increase, one set of working
papers for use by the staff and six additional copies of the working
papers to be available to interveners according to their needs after
intervention has been approved by the Commission. On or after October
31, 1989, working papers must be submitted on electronic media as
prescribed in 385.2011 of this chapter.
(ii) The data in support of the proposed increased rates shall
include the required particulars of book data, adjustments and other
computations and information on which the company relies to justify the
increased rates sought.
(iii) Any data or summaries included in the filing purporting to
reflect the books of account shall be supported by accounting working
papers, which papers shall set forth all necessary particulars from
which an auditor may readily identify the book data included in the
filing in separate columns and verify that such data are in agreement
with the company's books of account. All statements, schedules, and
working papers shall be prepared in accordance with the classifications
provided in the Uniform System of Accounts. Working papers prepared in
accordance with similar standards and disclosing full particulars
properly crossreferenced to the filing and within themselves and indexed
shall be available for staff examination in support of all adjustments,
computations and other information included in the filing.
(iv) Any company filing for a rate increase shall be responsible for
preparing prior to filing and maintaining work papers sufficient to
support the filing. Any failure to produce promptly such working papers
on request by an authorized representative of the Commission prior to
Commission action on the filing shall be cause for rejection of the
tendered filing in its entirety. In addition to the working paper
support the following specific material related to the base period
normally prepared by the filing company shall be available for staff
verification and analysis, and a copy shall be furnished on request:
1. Copies of monthly financial reports prepared for management
purposes.
2. Copies of accounting analyses of balance sheet accounts.
3. Complete trial balances of all the balance sheet accounts at the
beginning and end of the 12 months of actual experience, and revenue and
expense accounts for the 12 months of actual experience used for the
filing.
4. Analyses of the various miscellaneous revenues and related
expenses included in the submitted cost of service.
5. Analyses of surplus and capital surplus accounts.
(5) Representation of chief accounting officer. The filing shall
include a narrative statement executed by the chief accounting officer
or other authorized accounting representative of the filing company
representing that the cost statements and supporting data submitted as a
part of the filing, as well as working papers required herein, which
purport to reflect the books of the company do, in fact, set forth the
results shown by such books.
(f) Description of statements. Descriptions of Statements A through
P and supporting schedules required to be filed pursuant to the
directions set out in paragraphs (b) (3), (4), and (5) of this section.
Statement A -- Overall cost of service. This statement shall
summarize the overall gas utility cost of service (operation and
maintenance expenses; depreciation, taxes, credits to cost of service
and return) developed from the supporting statements described below.
Statement B -- Overall rate base and return. This statement shall
summarize the overall gas utility rate base from the figures contained
in Statement C, D, and E. The statement shall also include the claimed
rate of return and shall show the application of the claimed rate of
return to the overall rate base.
Statement C -- Cost of plant. This statement shall show in summary
form the amounts of gas utility plant classified by Accounts 101, 102,
103, 104, 105, 106, 107, and 117 as of the beginning of the 12 months of
actual experience, the book additions and reductions (in separate
columns) during the 12 months, together with the book balances at the
end of the 12-month period. In adjoining columns there shall be shown
the claimed adjustments, if any, to the book balances and the total cost
of plant. All adjustments shall be fully and clearly explained in the
supporting material submitted.
The following schedules and additional material shall be submitted as
part of Statement C:
Schedule C-1, showing in columnar form only the ending base period
balance, test period adjustments, and test period balance for each of
the above accounts, the amounts by detailed plant account prescribed by
the Commission's Uniform System of Accounts for Natural Gas Companies
(parts 201 and 204 of this chapter) with subtotals thereof by functional
classifications, i.e., Intangible Plant, Manufactured Gas Production
Plant, Natural Gas Production and Gathering Plant, Products Extraction
Plant, Underground Storage Plant, Local Storage Plant, Transmission
Plant, Distribution Plant and General Plant: Provided, however, That to
the extent plant costs are not available by detailed plant accounts they
may be shown by functional classifications.
Schedule C-2, showing major plant addition and retirement projects
during the nine months after the last month of the base period, brief
descriptions, approximate dates of operation or retirement from service
and costs classified by functions.
Schedule C-3, showing in respect of Accounts 106 and 107, at the end
of the 12 months of actual experience a list of uncompleted work orders
(small items grouped) claimed in the rate base, giving the work order
number, docket number, description and amount of each and the amounts of
each type of undistributed construction overheads.
Schedule C-4, which material may be contained in Company's FERC Form
No. 2, and cross-referenced if such report is up to date, giving
details of each storage project owned, showing cost by major functions,
and base top gas storage volumes for the test period and for the 12
months of actual experience also making reference to any special rate
schedules relating thereto, with monthly volumes and associated dollars
for the inputs and outputs for the 12 months of actual experience.
Schedule C-5, which is to be part of the working papers, a complete
statement of methods and procedures followed in capitalizing interest
during construction and other construction overheads, only if a change
in such methods and procedures has been made since the end of the year
reported in the company's last FERC Form No. 2.
Schedule C-6, which is to be part of the working papers, setting
forth the cost of plant in service and description thereof carried on
the company's books as gas utility plant which was not being used in
rendering gas service, only if there is a significant change in such
amounts since the end of the year reported in the company's last FPC
Form No. 2.
Statement D -- Accumulated provisions for depreciation, depletion,
amortization, and abandonment. This statement shall show the
accumulated provisions for depreciation, depletion, amortization, and
abandonment (Accounts 108 (detailed by functional plant classification),
111), as of the beginning of the 12 months of actual experience, the
book additions and reductions during the 12 months, together with the
balances at the end of the 12-month period. In adjoining columns there
shall be shown adjustments to these ending book balances and the total
adjusted balances. Any authorized negative salvage shall be reflected
as a separate and distinct part of Account No. 108. This statement also
shall show depreciation reserve associated with onshore and offshore
production and gathering plant and transmission plant.
The following schedules and additional material shall be submitted as
part of Statement D:
Schedule D-1, which is to be part of the working papers showing the
depreciation reserve book applicable to that portion of the depreciation
rate not yet approved by FERC, the rates, Docket No. and any
explanation of the difference. This schedule shall also show the
depreciation reserve separated between onshore production and gathering
plant and offshore transmission plant.
Schedule D-2, which is to be part of the working papers, a
description of the methods and procedures followed in depreciating,
depleting, or amortizing plant and recording abandonments by the company
if any policy change has been made effective since the period covered by
the last annual report on FERC Form No. 2 was filed with the
Commission.
Schedule D-3, with respect to each allocation of an overall account
to obtain the amounts applicable to various functional groups of plant,
a complete explanation of the method, procedures and significant data
used in making the allocation.
Statement E -- Working capital. This statement shall show the
components of working capital, including cash working capital, in such
detail as to show how the amount of each component was computed.
This statement shall show the computation of cash working capital
claimed as an adjustment to the gas utility's rate base. Any adjustment
requested must be based on a fully-developed and reliable lead-lag
study. (See 154.63b.) The components shall include the following:
total company revenues, purchased gas costs, storage expense,
transportation and compression of gas by others, salaries and wages,
administrative and general expenses, income taxes payable, taxes other
than income taxes, and any other operating and maintenance expenses.
Cash working capital allowances in the form of additions to rate base
may not exceed one-eighth of the annual operating expenses, as adjusted,
net of purchased gas costs and non-cash items.
The other components of working capital may include an allowance for
the average of 13 monthly balances of materials and supplies
prepayments, the unrecovered portion of advances to supplies in Account
No. 166 made under contracts executed prior to 10:49 a.m. E.S.T. on
December 31, 1975, and gas for current delivery from underground
storage. Any item claimed which is different from or in addition to
those specified herein shall be explained and the reasons for inclusion
therein shall be given.
The following schedules and material shall be submitted as part of
Statement E:
Schedule E-1 setting forth monthly balances for materials and
supplies, prepayments, and advances in such detail as to disclose,
either by subaccounts regularly maintained on the books or by analysis
of the principal items included in the main account, the nature of the
charges included therein.
Schedule E-2 showing the quantities and the respective costs of
natural gas stored at the beginning of the test period, the input,
output and balance remaining in Mcf and associated costs by months,
method of pricing input, output and balance, and the claimed adjustments
shall be disclosed and clearly and fully explained.
Schedule E-3 -- If gas is priced in and out of storage through FERC
Account No. 191, the base periods storage activity should be reconciled
with amounts charged to Account No. 191 and any difference should be
fully explained. Companies using the LIFO method of storage accounting
shall provide the data required by this schedule by LIFO ''layers.''
Schedule E-4 setting forth monthly balances included in Account 188,
Research, development, and demonstration expenditures, separately for
each project therein immediately followed and increased or reduced, as
appropriate, by the applicable accumulated deferred income taxes. This
schedule shall also include all related amortization for the same
period.
Schedule E-5 showing the computations, cross-references and sources
from which the data used in computing claimed working capital are
derived.
Statement F(1) -- Rate of return claimed. This statement shall show
the percentage rate of return claimed and the general reasons therefor.
2005
Statement F(2) -- This statement shall show, based upon the company's
capitalization, the cost of debt capital and preferred stock capital and
the return on the stockholder's equity resulting from the overall rate
of return claimed.
Statement F(3) -- Debt capital. This statement shall show the
weighted average cost of debt capital based upon the following data for
each class and series of long-term debt outstanding according to the
balance sheet as of the end of the 12-months' actual experience and as
of the end of the nine-month period.
(a) Title.
(b) Date of issuance and date of maturity.
(c) Interest rate.
(d) Principal amount of issue:
Gross proceeds.
Underwriters' discount or commission:
Amount.
Percent gross proceeds.
Issuance expense:
Amount.
Percent gross proceeds.
Net proceeds.
Net proceeds per unit.
(e) Cost of money:
Yield to maturity based on the interest rate and net proceeds per
unit outstanding determined by reference to any generally accepted table
of bond yields.
(f) If issue is owned by an affiliate, state name and relationship of
owner.
(g) If the Company has acquired at a discount or premium, some part
of the outstanding debt which could be used in meeting sinking fund
requirements, or for other reasons, it shall show the annual
amortization of the discount or premium, for each series of debt from
the date of reacquisition, over the remaining life of the debt being
retired and separately show the total discount and premium, as a result
of such amortization, applicable to the test period.
Statement F(4) -- Preferred stock capital. This statement shall show
the weighted average cost of preferred stock capital based upon the
following data for each class and series of preferred stock outstanding
according to the balance sheet as of the end of the 12-months' actual
experience and as of the end of the nine-month period.
(a) Title.
(b) Date of issuance.
(c) If callable, call price.
(d) If convertible, terms of conversion.
(e) Dividend rate.
(f) Par or stated amount of issue:
Gross proceeds.
Underwriters' discount or commission:
Amount.
Percent gross proceeds.
Issuance expenses:
Amount.
Percent gross proceeds.
Net proceeds.
Net proceeds per unit.
(g) Cost of money:
Dividend rate divided by net proceeds per unit.
(h) Whether issue was offered to stockholders through subscription
rights or to the public.
(i) If issue is owned by an affiliate, state name and relationship of
owner.
Statement F(5) -- Common stock capital. This statement shall show
for each sale of common stock during the five-year period preceding the
balance sheet as of the end of the 12-months' actual experience:
(a) Number of shares sold.
(b)(1) Gross proceeds at offering price.
(2) Underwriters' discount or commission:
Amount.
Percent gross proceeds.
(3) Proceeds to applicant.
(4) Issuance expenses:
Amount.
Percent gross proceeds.
(5) Net proceeds:
Offering price per share.
Net proceeds per share.
(c) Book value per share at date immediately prior to issuance:
Closing market price at latest trading date prior to date of
issuance.
Latest published earnings per share available at date of issuance.
Dividend rate at date of issuance.
(d) Whether issue was offered to stockholders through subscription
rights or to the public; whether common stock was issued for property
or for capital stock of others.
The following schedules and additional material shall be submitted as
part of Statement F(5):
Schedule F(5)-1. Submit information respecting any stock dividends,
stock splits or changes in par or estated value during five-year period
preceding date of the balance sheet and by months for the 12-month
period ended that date.
Schedule F(5)-2. Submit following information on outstanding common
stock for the five calendar years preceding the date of balance sheet
and by months for the 12-month period ended that date:
Schedule F(5)-3. If the applicant relied upon ratios or other data
concerning the common stocks of other specific companies in reaching its
conclusion as to a fair allowance for earnings on common equity, submit
the following information to the extent available from published sources
respecting the common stock of such other companies:
(a) With respect to recent issuances, the same information as
submitted under Statement F(5).
(b) With respect to outstanding issues, the same information as
submitted under Schedule F(5)-2.
Schedule F(5)-4. Show the earnings per share of common stock which
the claimed rate of return would yield.
Schedule F(5)-5 -- Show the ''Times Interest Earned,'' before and
after taxes, produced by the claimed rate of return and disclose the
method of computation.
Schedule F(6) -- Submit a Statement of Changes in Financial Position
for the base period consisting of the 12 months of actual experience
utilized in the test year and for the nine-month adjustment period.
Statement G -- Gas operating revenues and sales volumes. This
statement shall show the operating revenues from sales of gas and other
sources classified in accordance with the operating revenue accounts
prescribed by the Commission's Uniform System of Accounts, and the
related volumes of gas and products. Sales and Services and related
volumes shall be classified as between jurisdictional and
nonjurisdictional; items which are reflected as credits to cost of
service in preparing Statement A, Overall Cost of Service shall be
identified. Statement G shall disclose the following, using supporting
schedules as necessary.
(a) Revenues by months and the totals thereof for the 12 months of
actual experience from jurisdictional sales as computed under the
presently effective and proposed rates together with the differences in
the annual revenues, and the actual annual revenues from the
nonjurisdictional sales.
(b) Revenues by months and the totals thereof for 12 months of actual
experience as adjusted for changes which are known and measurable and
which are expected to be realized within the test period from
jurisdictional sales as computed under the presently effective and
proposed rates together with the differences in the annual revenues for
the test period, and the annual revenues from the nonjurisdictional
sales under the rates effective during the test period.
(c) A schedule showing the revenues from the transportation of gas
for others. This schedule shall show by rate schedule the base and test
period volumes and revenues and the rates used to develop the test
period revenues. In addtion, this schedule shall identify rate
schedules under which costs are allocated and rate schedules under which
revenues are credited for the test period in the application with
cross-references to the other filed schedules of the application.
(d) A schedule showing revenues applicable to the sale of products.
This schedule shall show the name and location of each product
extraction plant handling gas of the applicant, the inlet and outlet
annual Mcf and average heating value of the applicant's gas at each
plant (specify dry or wet basis) and the revenues received by the
applicant by product by month for each extraction plant for both the
base and test period. In addition, the schedule shall show the gallons
and price per gallon used to develop the monthly revenues.
(e) A schedule showing Other Gas Revenues (Account No. 495). This
schedule shall separately state each item and revenue received for the
transportation of liquids, liquefiable hydrocarbon or nonhydrocarbon
constituents owned by producers. For both the base and test periods,
this schedule shall indicate, by producer contract, the volume
transported; the unit rate charged for transportation; the revenues
received; the producing area, including block number for offshore
areas, which the contract contemplates; and the processing plant where
the constituents owned by the producer are removed from the gas stream.
Each jurisdictional sale for resale, and each jurisdictional
transportation service, shall be shown separately but the mainline
nonjurisdictional sales and nonjurisdictional field sales may be
separately grouped and the other sales may also be grouped by the
classifications prescribed by the Commission's Uniform System of
Accounts for Natural Gas Companies. For each revenue item shown
separately, there shall be shown the points of delivery, the billing
quantities for each month and their determinants or adjustments
(demands, volumes, Btu content, Btu adjustment, etc.), and the maximum
single day's delivery in each month if available. In the event any sale
shown separately is made through more than one delivery point, and
conjunctive billing is provided by the tariff, the above data may be
combined for all delivery points.
Adjustments to actual period sales volumes, jurisdictional and
nonjurisdictional, shall be fully and clearly explained including
reference to any certificate docket authorizing changes in sales.
All penalties paid by jurisdictional customers shall be stated
separately from sales revenues.
The total jurisdictional revenues under the proposed increased rates
shall be broken down to show demand revenues, commodity revenues, Btu
adjustment, etc. The revenue and other data shall be grouped and
totaled by rate schedules and by zones.
Credits to cost of service shall set forth the principal components
comprising each of the various items which are reflected as credits to
cost of service in preparing Statement A. The amounts per books,
adjustments and as adjusted shall be clearly set forth.
This Statement G shall be included, in full, in the submittal to the
Commission and to all State commissions having jurisdiction over the
affected customers of the natural gas company. The submittal to each of
the affected customers may be limited to exclude the above details by
months except with respect to the gas sales to, or transportation
service for, that particular customer, provided a copy of Statement G,
in full, is promptly submitted to any affected customer upon such
customer's request.
Statement H(1) -- Operation and maintenance expenses. This statement
shall show the gas operation and maintenance expenses according to each
account of the Uniform System of Accounts for Natural Gas Companies.
The expenses shall be shown under appropriate columnar-headings, as
follows, with subtotals for each functional classification: (a)
Operation and maintenance expense by months, as booked, for the 12
months of actual experience, and the total thereof, (b) adjustments, if
any, to expenses as booked, and (c) total adjusted operation and
maintenance expenses claimed. Detailed explanations of the adjustments,
if any, and the manner of their determination shall be supplied,
specifying the month or months during which the adjustments would be
applicable.
The following schedules and additional material shall be submitted as
part of Statement H(1):
Schedule H(1)^1 to be a part of the working papers with respect to
the following listed schedules showing the labor costs, materials and
other charges (excluding purchased gas costs) and expenses associated
with Account Nos. 810, 811 and 812 recorded in each gas operation and
maintenance expense account of the Uniform System of Accounts. These
expenses shall be shown, under the appropriate columnar-headings, as
follows, with subtotals for each functional classification: (a)
operation and maintenance expenses by months, as booked, for the 12
months of actual experience, and the total thereof, (b) adjustments, if
any, to expenses as booked and (c) total adjusted operation and
maintenance expenses claimed. In the event the monthly expenses as
presented per books reflect any special accrual or equalization
accounting entries for internal purposes, the effect thereof shall be
fully disclosed and explained. Any amounts not currently payable,
except depreciation charged through clearing accounts, included in
operation and maintenance expenses shall be fully explained.
Schedule H(1)-1(a) -- Labor Costs.
Schedule H(1)-1(b) -- Materials and Other Charges (Excluding
Purchased Gas Costs).
Schedule H(1)-1(c) -- Expenses and Associated Volumes Applicable to
Accounts Nos. 810, 811 and 812. The expenses and volumes for each of
the contra-accounts for both base and test periods shall be shown.
Schedule H(1)-2, a schedule showing either: (a) In the case of a
pipeline which has a Commission approved PGA clause in its tariff, its
total system weighted average current unit cost of purchased gas
reflected in the pipeline's latest effective PGA rate adjustment.
However, the pipeline may adjust its purchased gas volumes as provided
in (b) hereof; or (b) in the case of a pipeline which does not have a
Commission approved PGA clause in its tariff or in the case of a
pipeline which has a Commission approved PGA clause but obtains a waiver
of its PGA clause election under 154.303, the total annual cost of gas
purchased for the 12 months of actual experience, the adjustments
thereto, and the total adjusted cost for test period, with the data
grouped by States and producing areas and detailed by contract or rate
schedule designation, field, volumes in Mcf at a common pressure base
and price in total for the contracts or rate schedules under which
actual or adjusted volumes exceed 1,000,000 Mcf annually. Field
purchases under rate schedules where the actual or adjusted volumes are
less than 1,000,000 Mcf annually may be grouped by field or producing
area. Purchases from pipelines in any volume shall be shown in full
detail by rate schedule including splits between demand and commodity
charges.
In the event adjustments are made to the volumes of gas taken from
any source during the 12 months of actual experience, a detailed
explanation and data in support of the adjusted volumes shall be
furnished. No adjustments are to be made to reflect the attachment of
new gas supplies unless both the filing company and the supplier have
each obtained the required permanent or temporary certificates of public
convenience and necessity and the necessary facilities by both are or
will have been in operation during the test period.
In the event the adjustments to volume aggregate more than 10 percent
of the total volume of gas purchased during the 12 months of actual
experience, and are due to change in gas purchase pattern or additional
gas supply, the minimum take-or-pay-for quantities for each source of
supply, applicable at the end of the test year period, and the reasons
for making such adjustments shall be submitted.
If the company purchases and sells gas under exchange agreements, the
method of recording on books, total gross volumes exchanged, net dollar
amounts involved and details of each major exchange shall be submitted.
A pipeline operating under the ''PGA option'' for purchased gas costs
shall file a separate attachment as part of this schedule which sets
forth the development of the purchased gas costs for the test period
including volumes, the PGA rate utilized, the filing date, Docket No.,
and date of Commission order underlying such unit rate.
Schedule H(1)-3, to be a part of the working papers with respect to
the following listed expense accounts, there shall be furnished in
supporting schedules as designated, for the 12 months of actual
experience and claimed adjustments, analytical details which will
clearly disclose for each account: A classification of principal
charges and credits (all minor items may be grouped); particulars of
supporting computations and accounting bases; a description of services
and related dollar amounts for which liability is incurred or accrued
and name of the firm or individual rendering such services:
Schedule H(1)-3a. Account 913 -- Advertising expenses (analysis need
only disclose principal types of advertising such as TV, newspaper,
etc.).
Schedule H(1)-3b. Account 922 -- Administrative expenses transferred
Credit.
Schedule H(1)-3c. Account 923 -- Outside services employed.
Schedule H(1)-3d. Account 926 -- Employee pensions and benefits
(insofar as this account included items other than pensions).
Schedule H(1)-3e. Account 928 -- Regulatory commission expenses.
Schedule H(1)-3f. Account 929 -- Duplicate charges -- Credit.
Schedule H(1)-3g. Account 930.2 -- Miscellaneous general expenses.
Schedule H(1)-3h. Intercompany and interdepartmental transactions.
If the expense accounts contain charges of credits from associated
companies or nonutility departments of the company submit a schedule, or
schedules, as to each such associated company or nonutility department
showing:
(a) The amount of the charges, or credits, during each month and in
total for the test year.
(b) The FERC account classification or classifications charged (or
credited).
(c) Descriptions of the specific services performed for, or by, the
associated company or nonutility department.
(d) Complete particulars as to the bases used in determining the
amounts of the charges (credits).
Statement H(2) -- Depreciation, depletion, amortization and negative
salvage expenses. This statement shall show separately the gas plant
depreciation, depletion, amortization and negative salvage expenses by
functional classifications. The production and gathering function and
the transmission function shall be further classified as onshore and
offshore. These expenses shall be shown in separate columns as follows:
(a) Expenses for the 12 months of actual experience, (b) adjustments,
if any, to such expense, and (c) the total adjusted expense claimed.
The bases, methods, essential computations and derivation of unit rates
for the calculation of depreciation, depletion and amortization expense
for the 12 months of actual experience and for the adjustments thereto,
if any, shall be fully and clearly explained. The amounts of
depreciable plant shall be shown by the functions specified in paragraph
C of Account 108, Accumulated Provisions for Depreciation of Gas Utility
Plant of the Commission's Uniform System of Accounts for Natural Gas
Companies, and, if available, for each detailed plant account (300
Series) together with the rates used in computing such expenses. Any
deviation from the rates used in disposing of the applicant's last
previous rate filing or determination by the Commission shall be
explained, showing the rate or rates previously used together with
supporting data for the new rate or rates used for this filing.
The following schedule and additional material shall be submitted as
a part of Statement H(2):
Schedule H(2)-1. There shall be included in support of Statement
H(2) a reconciliation of the depreciable plant shown therein with the
aggregate investment in gas plant shown in Statement C, and the expense
thereon charged in the first instance to other than prescribed
depreciation, depletion, amortization and negative salvage expense
accounts. The production and gathering function and the transmission
function shall be classified between onshore and offshore.
Statement H(3) -- Income taxes. This statement shall show the
computation of allowances for Federal and State income taxes for the
test period based on the claimed return applied to the overall gas
utility rate base. To indicate the accounting classification applicable
to the amount claimed, the computation of the Federal income tax
allowance shall show separately the amounts designated as current tax
and deferred tax.
The following schedules and additional material shall be submitted as
a part of Statement H(3):
Schedule H(3)-1, to be part of the working papers, in support of
federal income taxes the company shall submit a complete reconciliation
of the book net income with taxable net income as reported to the
Federal Internal Revenue Service for the most recent year for which a
tax return was filed. A complete explanation of all items in the
reconciliations shall be submitted. In the event the tax allowances
claimed give effect to omission of items appearing in the reconciliation
for the most recent tax return or inclusion of items not appearing
therein, the reasons for such omissions or inclusions shall be
submitted.
Schedule H(3)-2, to be a part of the working papers, where tax
depreciation differs from book depreciation, the company shall file a
schedule showing the computation of the tax depreciation which will
indicate (a) differences between book and tax depreciation on a
straight-line basis; and (b) the excess of liberalized depreciation and
amortization of emergency facilities over straight-line depreciation for
tax purposes for the taxable year or years.
Schedule H(3)-3, to be a part of the working papers, if the company
joins in the filing of a consolidated federal income tax return there
shall be submitted a schedule showing the net taxable income or loss for
each company in the consolidation, including an adjustment to effect the
exclusion of the excess of liberalized depreciation and amortization of
emergency facilities over straight-line depreciation for each company
involved. There shall also be submitted with the statement of taxable
net income or tax loss of each individual company participating in the
consolidated returns, the details of consolidating adjustments, and a
computation of the system tax liability based on the consolidated net
income for the last tax year ending within the test period, or
immediately prior thereto, for which a tax return was filed. In
addition, there shall be included a computation showing the percentage
of tax savings arising from consolidation for the taxable year or years
covered by the test period.
Schedule H(3)-4, to be a part of the working papers, if the company
claims an allowance for current tax in its cost of service which would
be greater than the federal income tax which would actually be payable
on the basis of the return allowed in cost of service, full disclosure
thereof shall be made, including the allocation among utility and
nonutility departments of the tax payable.
Schedule H(3)-5, to be a part of the working papers, in support of
the claimed allowances for income taxes paid State governments, the
company shall submit a schedule showing the income tax paid each State
in the current or previous year covered by the test period including the
effect of liberalized depreciation on such taxes paid.
Schedule H(3)-6 -- Accumulated deferred income taxes. This statement
shall show monthly book balances of accumulated deferred income taxes
for each of the 12 months during the base period. In adjoining columns
there shall be shown additions and reductions for the nine months
subsequent to the base period balance and the total adjusted balance.
Schedule H(3)-7 -- If the company, in a prior rate case, elected to
use the South Georgia Method (Docket No. RP77-32, letter order issued
May 5, 1978), or another method, a schedule to be a part of the
workpapers showing the computation of an updated reconciliation between
book depreciable plant and tax depreciable plant and accumulated
provision for deferred income taxes, projected through the end of the
test period shall be filed. The reconciliation shall be made using the
same conditions as that agreed to when the original election was made
and should show the amount, if any, of the remaining deficiency in the
deferred income tax Account No. 282. In addition, the company shall
report any changes made from the effective date of the South Georgia
Method, or any other method adopted, and the elections made with
Internal Revenue Service regarding gains on reacquired debts in
accordance with Internal Service Code sections 108 and 1017.
Statement H(4) -- Other taxes. This statement shall show the gas
utility taxes, other than Federal or state income taxes in separate
columns, as follows: (a) Tax expense per books for the 12 months of
actual experience, (b) adjustments, if any, to amounts booked, and (c)
the total adjusted taxes claimed. Provide the details of the kind and
amount of taxes paid under protest or in connection with taxes under
litigation. The taxes shall be shown by states and by kind of taxes.
The following schedules and additional material shall be submitted as
a part of Statement H(4):
Schedule H(4)-1, to be a part of the working papers, shall be
submitted showing computations of adjusted taxes claimed in Statement
H(4).
Statement I -- Allocation of overall cost of service. This statement
shall show with respect to overall cost of service (Statement A); (a)
Grouping and allocation of various items of cost and credits to cost of
service into functional totals; (b) Classification of items of cost and
credits into demand, commodity, customer or other appropriate
categories; and (c) Allocation among jurisdictional and
nonjurisdictional sales and service, including allocation factors used
and data used in computing such allocation factors.
The following schedules and additional material shall be submitted as
part of Statement I:
Schedule I-1. Particulars of allocating general or common (joint)
costs to various functions.
Schedule I-2. Sufficient detailed breakdown or operation and
maintenance expense accounts and taxes to disclose how component items
(e.g., compressor station fuel, purchased gas, taxes other than income
taxes) have been classified among demand, commodity, customer or other
category of cost.
Schedule I-3. If the revenues from field or gathering system sales
are not credited to the cost of service, then a separation of costs
applicable to field or gathering system sales from costs applicable to
sales from the transmission system shall be made. If such revenues are
credited to the cost of service, a statement with respect thereto should
be made, together with the reasons therefor.
Schedule I-4 -- Details of base and test period costs of compression
and transportation of gas by others setting forth for each service the
name of the transporter, the rate schedule or other designation, the
base and test period volumes (contract demand and annual) and the demand
and commodity rates utilized to develop the costs. In addition, the
applicant shall identify those services which are short-term or limited
term transportations under NGA and NGPA with appropriate section
designation.
Schedule I-5. If utilized by applicant in its cost allocation, there
shall be furnished, with respect to the various classes of service, the
total number of metering points and the number of metering units grouped
on the basis of the occurrence of meter reading (such as 24-hour, 7-day,
30-day, etc.)
Schedule I-6. Deliveries to the jurisdictional and nonjurisdictional
customers on three continuous days of maximum transmission system
deliveries during the winter heating season within the 12 months of
actual experience, classified as between firm, interruptible, exchange,
transportation, gasoline plants, emergency, etc. If the 12 months of
actual experience represent a calendar year these data shall be
submitted for the winter heating seasons beginning immediately prior to
such year and at the end of such year to the extent practicable. The
deliveries made from field or gathering systems shall be reported for
the same three continuous days as maximum transmission system
deliveries. Full particulars and justification shall be furnished of
any claimed adjustment to the actual experience of the peak periods
used. The deliveries on each of the three days should be submitted
together with withdrawals from storage, line-pack fluctuations and
temperature. If abnormal amount is supplied from line-pack, the company
shall supply the second and third highest three-day peaks, giving the
same information on line-pack.
Schedule I-7 showing by months, and total thereof, for the 12 months
of actual experience, the company's Gas Account, in the form required by
the Commission's Annual Report Form No. 2 pages 518 and 519. In
addition, there shall be shown corresponding estimated data, if claimed
to be different from actual experience. The schedule shall show by
accounts, purchases made or projected pursuant to subpart D of part 284
and 157.45 of the Commission's regulations.
Statement J -- Allocation of cost of service by zones. If the rates
on file are zoned, or if it is proposed to establish zone rates, the
cost of service for the test period shall be further allocated to the
existing or proposed rate zones. A detailed description of methods and
procedures used to allocate cost to zones shall be given. Where zones
are sought to be established for the first time, the reasons for this
establishment and for the zone boundaries selected shall be set forth.
The following schedules and additional material shall be submitted as
a part of Statement J.
Schedule J-1, if the system rates are zoned or are to be zoned, the
company shall furnish an allocation of system costs. If during the last
five years a Commission decision was issued relating to the subject
concerning the company, and the company's allocation does not follow
such decision, then, in addition, the company shall also furnish in
working papers a study and a classification of costs adhering to such
decision.
Schedule J-2, to be a part of the working papers, if the company's
zone costs are determined as provided in Schedule J-1, but the zone rate
differentials depart from those resulting from the allocated unit zone
costs, the company shall furnish in this schedule the development of the
zone rate differentials proposed.
Statement K -- Comparison of estimated revenues with cost of service.
This statement shall consist of a comparison of the total
jurisdictional revenues with the allocated cost of service for the test
period. Where zone rates are in existence or are proposed, this
statement shall also include a comparison of revenues and costs by
zones.
The following schedule and additional materials shall be submitted as
a part of Statement K:
Schedule K-1 showing the derivation of each of the increased rates
shall be submitted. If the increased rates are predicated on costs as
classified and allocated, all calculations involved in derivation of the
rates shall be shown. If in computing the increased rates, weight is
given in whole or in part to value of service, competition, historical
revenue pattern, etc., a full and complete explanation and justification
therefor shall be included.
Schedule K-2 -- The company shall furnish a narrative, if not already
included in Statement P or elsewhere in its filing, setting forth any
changes in cost classification, allocation, crediting, and/or rate
design procedures as compared to those used in developing its underlying
rates. The filing shall also include a full and complete explanation
and justification for any changes.
Statement L -- Balance Sheet. A balance sheet in the form prescribed
by the Commission's Uniform System of Accounts for Natural Gas Companies
as of the beginning and end of the 12 consecutive months of the actual
experience utilized for the test period, including therein the notes, if
any, applicable to the balance sheet; similarly, a balance sheet on a
consolidated basis if the natural gas company is a member of a system
group of companies.
Statement M -- Income statement. An income statement, including a
section on earned surplus in the form prescribed by the Commission's
Uniform System of Accounts for Natural Gas Companies for the 12
consecutive months of actual experience utilized for the test period,
including therein the notes, if any, applicable to the income statement;
similarly, an income statement on a consolidated basis if the natural
gas company is a member of a system group of companies.
Statement N -- Cost determinants for minor changes in rate level.
This group of schedules shall contain the principal determinants
essential to test the reasonableness of the proposed rate or charge.
Any adjustments to book figures shall be separately stated and the basis
for the adjustment shall be explained. The following shall be
submitted:
Schedule N-1. Cost of plant by functional classification as of the
beginning and as of the end of the test period.
Schedule N-2. Accumulated provisions for depreciation, depletion,
amortization, and abandonment by functional classifications as of the
beginning and as of the end of the test period.
Schedule N-3. Working capital, setting forth the various components
provided for in Statement E. Instead of 13 monthly balances, however,
the average may be based on beginning and ending balances for the test
period.
Schedule N-4. Rate of return claimed with a brief statement of the
basis therefor.
Schedule N-5. Operation and maintenance expenses by functional
classifications.
Schedule N-6. Depreciation, depletion, and amortization expense by
functional classifications.
Schedule N-7. Income tax allowances computed on the basis of the
rate of return claimed.
Schedule N-8. Other taxes.
Schedule N-9. Cost of service allocated to the sales or services for
which the increase in rate, or charge is proposed, including the
principal determinants used for allocation purposes.
Schedule N-10. Comparison of cost of service with revenues under
proposed rates for the test period.
Schedule N-11. A complete description of amounts, by venture,
recorded in Account 188, Research, development, and demonstration
expenditures, as of the beginning and end of the test period, increased
or reduced, as appropriate, by the applicable accumulated deferred
income taxes. This schedule shall also include all related amortization
for the same period.
When this group of schedules is filed by a Major company pursuant to
154.63(b)(3) and the beginning of the 12 consecutive months of the most
recently available actual experience is more than one month beyond the
12 months of actual data used in the prior rate increase filing, the
natural gas company shall also report separately for the intervening
period actual data comparable to that required by Schedules N-1, N-2,
N-5, N-6, and N-8, above, and total sales volumes and revenues for such
period broken down between jurisdictional and nonjurisdictional sales.
Statement O -- Description of company operations. A description of
the company's area and diversity of operations including the following:
(1) A detailed system map is required only if significant changes
have occured since the filing of the last FERC Form No. 2.
(2) A complete rate history showing filing and rate levels since the
beginning of the company with a brief description of each filing. Such
rate history need be filed every three years and any general rate filing
made in the interim reflect only those changes since the last complete
rate history filing.
(3) A detailed history of each major expansion (new service), and
major abandonment certificate issued to the company by FERC filing for
the last three years of the company, along with a brief description of
each certificate. Such 3 year certificate history need be filed every 3
years and any general rate filing made in the interim reflect only those
changes since the last 3 year rate history filing.
(4) A detailed description of how the company designs and operates
its systems, including design temperature or temperatures and the effect
of conjunctive billing on design considerations.
Statement P -- Explanatory text and prepared testimony. This
statement shall contain copies of proposed testimony indicating the line
of proof which the company would offer for its case-in-chief in the
event the rates should be suspended and the matter set for hearing.
(Order 254, 27 FR 9502, Sept. 26, 1962)
Editorial Note: For Federal Register citations affecting 154.63,
see the List of CFR Sections Affected in the Finding Aids section of
this volume.
0041The provisions of this section shall not be applicable to filings
made pursuant to 154.81 through 154.86, unless such filing results in
a change in rate, charge, classification or service.
0052Where any component of the capital of the filing company is not
primarily obtained through its own financing, but is primarily obtained
from a company by which the filing company is controlled, as defined in
the Uniform System of Accounts, then the data required by those
statements shall be submitted with respect to the debt capital,
preferred stock capital and common stock capital of such controlling
company or any intermediate company through which such funds have been
secured. Furnish the staff a copy of the latest prospectus issued by
the natural gas company, any superimposed holding company or subsidiary
companies.
18 CFR 154.63a Tax normalization for interstate pipelines.
(a) Applicability. (1) Except as provided in paragraph (a)(2) of
this section, this section applies, with respect to rate schedules filed
by interstate pipelines under 154.62 and 154.63 of this part, to the
ratemaking treatment of the tax effects of all transactions for which
there are timing differences.
(2) This section does not apply to the following timing differences:
(i) Differences that result from the use of accelerated depreciation;
(ii) Differences that result from the use of Class Life Asset
Depreciation Range (ADR) provisions of the Internal Revenue Code;
(iii) Differences that result from the use of accelerated
amortization provisions on certified defense and pollution control
facilities;
(iv) Differences that arise from recognition of extraordinary
property losses as a current expense for tax purposes but as a deferred
and amortized expense for book purposes;
(v) Differences that arise from recognition of research, development,
and demonstration expenditures as a current expense for tax purposes but
as a deferred and amortized expense for book purposes;
(vi) Differences that result from different tax and book reporting of
deferred gains or losses from disposition of utility plant;
(vii) Differences that result from the use of the Asset Guideline
Class ''Repair Allowance'' provision of the Internal Revenue Code;
(viii) Differences that result from recognition of purchased gas
costs as a current expense for tax purposes but as a deferred expense
for book purposes.
(See Order No. 13, issued October 18, 1978; Order No. 203, issued
May 29, 1958; Order No. 204, issued May 29, 1958; Order No. 404,
issued May 15, 1970; Order No. 408, issued August 26, 1970; Order No.
432, issued April 23, 1971; Order No. 504, issued February 11, 1974;
Order No. 505, issued February 11, 1974; Order No. 566, issued June 3,
1977; Opinion No. 578, issued June 3, 1970; and Opinion No. 801,
issued May 31, 1977.)
(b) General rules -- (1) Tax normalization required. (i) An
interstate pipeline must compute the income tax component of its cost of
service by using tax normalization for all transactions to which this
section applies.
(ii) Except as provided in paragraph (c) of this section, application
of tax normalization by an interstate pipeline under this section to
compute the income tax component will not be subject to case-by-case
adjudication.
(2) Reduction of, and addition to, rate base. (i) The rate base of
an interstate pipeline using tax normalization under this section must
be reduced by the balances that are properly recordable in account 281,
''Accumulated deferred income taxes-accelerated amortization property;''
account 282, ''Accumulated deferred income taxes -- other property;''
and account 283, ''Accumulated deferred income taxes -- other.''
Balances that are properly recordable in account 190, ''Accumulated
deferred income taxes,'' must be treated as an addition to rate base.
(ii) Such rate base reductions or additions must be limited to
deferred taxes related to rate base, construction or other
jurisdictional activities.
(iii) If an interstate pipeline uses an approved purchased gas
adjustment clause or a research, development and demonstration tracking
clause, the rate base reductions or additions required under this
paragraph must apply only to the extent that the balances in account 190
and accounts 281 through 283 are not used, for proposes of calculating
carrying charges, as an offset to balances properly recordable in
account 188, ''Research development and demonstration expenditures,'' or
account 191, ''Unrecovered purchased gas costs.''
(c) Special rules. (1) This paragraph applies:
(i) If the rate applicant has not provided deferred taxes in the same
amount that would have accrued had tax normalization been applied for
the tax effects of timing difference transactions originating at any
time prior to the test period; or
(ii) If, as a result of changes in tax rates, the accumulated
provision for deferred taxes becomes deficient in or in excess of
amounts necessary to meet future tax liabilities as determined by
application of the current tax rate to all timing difference
transactions originating in the test period and prior to the test
period.
(2) The interstate pipeline must compute the income tax component in
its cost of service by making provision for any excess or deficiency in
deferred taxes described in paragraphs (c)(1)(i) or (c)(1)(ii) of this
section.
(3) The interstate pipeline must apply a Commission-approved
ratemaking method made specifically applicable to the interstate
pipeline for determining the cost of service provision described in
paragraph (c)(2) of this section. If no Commission-approved ratemaking
method has been made specifically applicable to the interstate pipeline,
then the interstate pipeline must use some ratemaking method for making
such provision, and the appropriateness of this method will be subject
to case-by-case determination.
(d) Definitions. For purposes of this section, the term:
(1) ''Tax normalization'' means computing the income tax component as
if the amounts of timing difference transactions recognized in each
period for ratemaking purposes were also recognized in the same amount
in each such period for income tax purposes.
(2) ''Timing differences'' means differences between amounts of
expenses or revenues recognized for income tax purposes and amounts of
expenses or revenues recognized for ratemaking purposes, which
differences arise in one time period and reverse in one or more other
time periods so that the total amounts of expenses or revenues
recognized for income tax purposes and for ratemaking purposes are
equal.
(3) ''Commission-approved ratemaking method'' means a ratemaking
method approved by the Commission in a final decision including approval
of a settlement agreement containing a ratemaking method only if such
settlement agreement applies that method beyond the effective term of
the settlement agreement.
(4) ''Income tax purposes'' means for the purpose of computing income
tax under the provisions of the Internal Revenue Code or the income tax
provisions of the laws of a State or political subdivision of a State
(including franchise taxes).
(5) ''Income tax component'' means that part of the cost of service
that covers income tax expenses allowable by the Commission.
(6) ''Ratemaking purposes'' means for the purpose of fixing,
modifying, approving, disapproving or rejecting rates under the Federal
Power Act or the Natural Gas Act.
(7) For purposes of this section, ''interstate pipeline'' means a
natural gas company engaged in natural gas transportation subject to the
jurisdiction of the Commission under the Natural Gas Act.
(8) ''Tax effect'' means the tax reduction or addition associated
with a specific expense or revenue transaction.
(9) ''Transaction'' means an activity or event that gives rise to an
accounting entry that is used in determining revenues or expenses.
(Federal Power Act, 16 U.S.C. 792 et seq.: Natural Gas Act, 15 U.S.C.
717 et seq.; Department of Energy Organization Act, 42 U.S.C. 7101 and
1701, et seq.; Administrative Procedure Act, 5 U.S.C. 553 et seq.; E.O.
12009, 3 CFR 142)
(46 FR 26637, May 14, 1981. Redesignated and amended at 47 FR 8342,
Feb. 26, 1982)
18 CFR 154.63b Cash working capital.
(a) General rule. Except as provided in paragraph (b) of this
section, any natural gas pipeline company that files an application for
a change in a tariff under 154.63 will not receive a cash working
capital adjustment to its rate base.
(b) Exceptions. If any participant in a rate proceeding under this
part demonstrates with a fully-developed and reliable lead-lag study a
net revenue receipt lag or a net expense payment lag (''revenue lead''):
(1) Any demonstrated net revenue receipt lag will be credited to rate
base; and
(2) Any demonstrated net expense payment lag will be deducted from
rate base.
(Order 383, 49 FR 24892, June 18, 1984)
18 CFR 154.64 Cancellation or termination.
When a filed tariff, contract or part thereof is proposed to be
canceled or is to terminate by its own terms and no new tariff, executed
service agreement or part thereof is to be filed in its place, the
natural-gas company shall notify the Commission of the proposed
cancellation or termination on the form indicated in 250.2 or 250.3,
whichever is applicable, at least thirty days prior to the proposed
effective date of such cancellation or termination. A copy of such
notice to the Commission shall be duly posted. With such notice, the
company shall submit a statement showing the reasons for the
cancellation or termination, a list of the affected purchasers to whom
the notice has been mailed, the sales made or transportation performed
and revenues therefrom, by months, for the twelve months immediately
preceding the proposed effective date of the cancellation or
termination. Actual data shall be used as far as possible, and any
estimated data should be designated as such. Such statement shall be
subdivided by rate schedules, classes of service, customers and delivery
points when more than one is involved: Provided, however, That the
filing of such notice shall not be construed as compliance with the
requirements of section 7(b) of the Natural Gas Act.
18 CFR 154.65 Adoption of tariff by successor.
Whenever the tariff or contracts of a natural-gas company are to be
adopted by another company or person as a result of an acquisition, or
merger, authorized by appropriate certificate of public convenience and
necessity, or for any other reason, the succeeding company shall file
with the Commission and post within thirty days after such succession a
certificate of adoption on the form prescribed in 250.4. Within ninety
days after such notice is filed, the succeeding company shall file a
tariff with the sheets bearing the correct name of the successor
company, to replace the tariff previously adopted.
18 CFR 154.66 Changes relating to suspended tariffs, executed service
agreements or parts thereof.
(a) Withdrawal of suspended tariffs, executed service agreements or
parts thereof. Where a tariff, executed service agreement or part
thereof has been suspended by the Commission, it may be withdrawn during
the period of suspension only by special permission of the Commission
upon application therefor and for good cause shown.
(b) Changes in suspended tariffs, executed service agreements or
parts thereof. A natural-gas company may not, within the period of
suspension file any change in a tariff, executed service agreement or
part thereof which has been suspended by order of the Commission except
by special permission of the Commission granted upon application
therefor and for good cause shown.
(c) Changes in tariffs, executed service agreement or parts thereof
continued in effect, and which were to be changed by the suspended
filing. A natural-gas company may not, within the period of suspension,
file any change in a tariff, executed service agreement or part thereof
continued in effect by operation of the order of suspension, and which
was proposed to be changed by the suspending filing, except by special
permission of the Commission granted upon application therefor and for
good cause shown.
(Order 159, 16 FR 2389, Mar. 14, 1951)
18 CFR 154.67 Suspended changes in rate schedules; motions to make
effective at end of period of suspension; procedure.
(a) Effect of suspended changes in rate schedules. If a rate
suspension proceeding initiated under section 4(e) of the Natural Gas
Act has not been concluded and an order issued by the Commission at the
expiration of the suspension period, the proposed change of rate,
charge, classification, or service shall go into effect pursuant to
motion of the pipeline company proposing the change, so long as the
pipeline company complies with all requirements of this section. The
pipeline company may file such motion concurrently with the proposed
change of rate, charge, classification, or service, at which time the
pipeline company may request that the proposed change be effectuated at
the expiration of the suspension period. The proposed rate, charge,
classification, or service shall become effective as of the date of
receipt of such motion by the Commission or the expiration of the
suspension period, whichever is later. Three copies of the motion shall
be filed with the Commission.
(b) Reports. Any pipeline company whose proposed increased rates or
charges were suspended and have gone into effect pending final order of
the Commission pursuant to section 4(e) of the Natural Gas Act shall:
(1) Keep accurate account of all amounts received under the increased
rates or charges which became effective after the suspension period, for
each billing period, specifying by whom and in whose behalf such amounts
are paid;
(2) Submit annually on or before April 30 of each year to the
Commission, in writing (original and one copy) and under oath the
following information concerning each billing period, for each purchaser
for the previous calendar year:
(i) The monthly billing determinants of natural gas sold and
transported to each purchaser under the suspended agreements or tariffs;
(ii) The revenues which would result from such sales if they were
computed under the rates in effect immediately prior to the date the
proposed increased rates or charges became effective;
(iii) The revenues resulting from such sales as computed under the
proposed increased rates or charges that became effective after the
suspension period; and
(iv) The difference between the revenues computed in paragraphs
(c)(2) (ii) and (iii) of this section.
(3) The Director of the Office of Pipeline and Producer Regulation
may require reports on a more frequent basis in individual cases when it
is deemed appropriate and necessary to do so, or upon request where good
cause is shown.
(c) Refunds. (1) Any pipeline company that collects rates or charges
pursuant to this section shall refund at such time in such amounts and
in such manner as may be required by final order of the Commission the
portion of any increased rates or charges found by the Commission in
that proceeding not to be justified, together with interest as required
in paragraph (c)(2) of this section.
(2) Interest shall be computed from the date of collection until the
date refunds are made as follows:
(i) At a rate of seven percent simple interest per annum on all
excessive rates or charges held prior to October 10, 1974;
(ii) At a rate of nine percent simple interest per annum on all
excessive rates or charges held between October 10, 1974 and September
30, 1979; and
(iii)(A) At an average prime rate for each calendar quarter on all
excessive rates or charges held (including all interest applicable to
such rates and charges) on or after October 1, 1979. The applicable
average prime rate for each calendar quarter shall be the arthimetic
mean, to the nearest one-hundredth of one percent, of the prime rate
values published in the Federal Reserve Bulletin, or in the Federal
Reserve's ''Selected Interest Rates'' (Statistical Release G, 13), for
the fourth, third, and second months preceding the first month of the
calendar quarter.
(B) The interest required to be paid under paragraph (c)(2)(iii)(A)
of this section shall be compounded quarterly.
(3) Any pipeline company required to make refunds pursuant to this
section shall bear all costs of such refunding.
(Sec. 16, Natural Gas Act, 15 U.S.C. 717o; sec. 309, Federal Power
Act, 16 U.S.C. 825h; Department of Energy Organization Act, Pub. L.
95-91; E.O. 12009, 42 FR 46267; Dept. of Energy Organization Act, 42
U.S.C. 7101-7352; E.O. 12009, 3 CFR 142; Interstate Commerce Act, 49
U.S.C. 1, et seq.; Natural Gas Act, 15 U.S.C. 717-717w)
(44 FR 53503, Sept. 14, 1979, as amended at 45 FR 3890, Jan. 21,
1980; Order 273, 48 FR 1288, Jan. 12, 1983; 53 FR 14788, Apr. 26,
1988)
18 CFR 154.91 Applicability.
(a) Definition. An ''independent producer'' as that term is used in
this part means any person as defined in the Natural Gas Act who is
engaged in the production or gathering of natural gas and who sells
natural gas in interstate commerce for resale, but who is not engaged in
the transportation of natural gas (other than gathering) by pipeline in
interstate commerce.
(b) Filings by operators signatory to a gas sales contract. (1)
Where the operator (i) of a natural gas producing property (not a
producer selling pursuant to a percentage formula under paragraph (e) of
this section), or (ii) of a plant processing natural gas and located in
or near the production area of the gas it processes is a signatory party
to a contract for the sale of the gas produced or processed, the
operator shall make all the filings required under 154.92 (rate
schedules), 154.94 (changes in rate schedules), or 157.23 (applications
for certificates) of all signatories for such sale, as well as for the
sale and delivery (according to the terms of the contract) of the gas of
nonsignatory co-owners. Notwithstanding this requirement for filings by
operators, a co-owner who is a signatory party to a contract of sale of
natural gas may, but he need not, make his own filings under 154.92,
154.94 and 157.23 in addition to the filings required of the operators.
(2) As a part of his application for a certificate of public
convenience and necessity, the operator shall file: (i) A copy of the
contract or contracts for the sale of gas in interstate commerce for
resale; (ii) the names and percentum of ownership of co-owners whose
interest in production is to be delivered to the purchaser under the
terms of such contract or contracts; and (iii) a copy of the sales
authorization from, or operating agreement with, any non-signatory
co-owners whose gas is so to be delivered.
(c) Filings by signatory co-owners. (1) Where gas is delivered by a
well, unit, or plant operator under the terms of a contract of sale of
an owner or owners to which the operator is not a signatory party, each
signatory owner is responsible for making the filings required by
154.92, 154.94 and 157.23 to cover the sale, but any such filings may be
made and accepted to cover other co-owners who are joint signatories to
the sales contract. As a part of his application for a certificate of
public convenience and necessity, such owner shall file a single
statement setting forth:
(i) The names of the co-owners (signatory or non-signatory) to whose
accounts the gas so delivered is to be credited; (ii) the per centum of
ownership of such owners in the well, unit, or plant; and (iii) a copy
of the contract or contracts for the sale of gas in interstate commerce
for resale. Also, such owner, either at the close of each calendar year
or at the end of each twelve-month period following the date of initial
filing, shall submit a statement listing any changes in the ownership of
working interests, producers, or plant ownership occurring subsequent to
the filing of a prior statement hereunder.
(2) Where the operator is an interstate pipe-line transmission
company and delivers the gas into its own lines for interstate
transmission it shall file a statement setting forth the names of all
the co-owners whose gas is so delivered and the respective per centum of
ownership therein, and such co-owners shall make all required filings.
(d) No filings by non-signatories. Where, under paragraph (b) or (c)
of this section, filings of rate schedules, rate changes, and
certificate applications covering the sale are required of the operator
or of the signatory owners, a non-signatory co-owner may not file rate
schedules, rate changes, or certificate applications where his gas is
being sold or delivered by the operator according to the terms of a
contract to which the co-owner is not a signatory party, whether or not
the filings by operator or co-owner as above required have been made.
However, the non-signatory co-owner whose gas is being sold by the
operator may, where he has reserved the right to do so, elect to take
his gas in kind and dispose of it otherwise if and when there has first
been obtained authorization therefor to the extent required by section 7
(b), and 7 (c), or other applicable provisions of the Natural Gas Act,
and filings have been made as required by section 4 thereof.
(e) Percentage sales. Where a producer sells to the operator of a
proc- essing plant at a price which is a percentage of the proceeds from
the resale of the residue gas, the plant operator shall make all filings
required to cover the sale by such producers, which filings shall
include a list of the producers from whom the natural gas is purchased,
showing the per centum of the resale price received by each from such
sale of gas. At the close of each calendar year or at the end of each
twelve-month period following the date of initial filing the operator
shall submit a further statement listing any changes in the producers
from whom the gas is purchased or in the percentum they receive. In
cases of percentage sales by producers covered by this paragraph, the
producers may not file rate schedules, rate changes, or certificate
applications, whether or not the filings by operator as herein required
have been made. However, such producer is fully subject to applicable
provisions of the Natural Gas Act, including sections 5 and 7 (b).
(f) Filings by certain nonsignatories. Where the operator and the
signatory co-owners in a particular sale are exempt with respect to such
sale pursuant to 157.40, and where any nonsignatory co-owner's
interests are not covered by such exemption, such co-owner may file rate
schedules, rate changes, or certificate applications with respect to
such interests notwithstanding the provisions of paragraph (d) of this
section.
(Order 190, 21 FR 7617, Oct. 4, 1956, as amended by Order 243, 27 FR
1356, Feb. 14, 1962; Order 429, 36 FR 5601, Mar. 25, 1971; Order 556,
41 FR 52443, Nov. 30, 1976)
18 CFR 154.92 Filing of rate schedules by independent producer.
(a) Every independent producer who, on or since June 7, 1954, has
engaged in the interstate transportation or sale of natural gas subject
to the jurisdiction of the Commission shall on or before December 1,
1954, filed with the Commission rate schedules, as defined in 154.93,
setting forth the terms and conditions of service and all rates and
charges for such transportation or sale effective on June 7, 1954. To
each such rate schedule, there shall be attached a billing statement, in
the format specified in 250.14.
(b) Every independent producer who subsequent to the effective date
of this part, proposes to initiate an interstate transportation or sale
of natural gas subject to the jurisdiction of the Commission to an
existing or new customer shall file with the Commission not less than 30
days nor more than 90 days prior to the date such transportation or sale
is proposed to be initiated a rate schedule, as defined in 154.93,
setting forth the terms and conditions of service and all rates and
charges for such transportation or sale. To each such rate schedule
there shall be attached a statement, in the format specified in 250.14,
which shows the estimated sales and billing for the first month of
service, in sufficient detail to show the method of billing and price
used. The statement shall also give the proposed date of commencement
of service. A complete copy of all material shall be furnished to each
purchaser under the rate schedule. With each such filing there shall be
submitted a list of parties to whom such material has been mailed.
(c) Every independent producer who transports or sells less than
100,000 Mcf annually of natural gas subject to the jurisdiction of the
Commission may, in lieu of the requirements of paragraphs (a) and (b) of
this section file a statement showing (1) the approximate annual volume
involved, (2) the rate charged therefor, (3) the name of the purchaser,
and (4) the geographical location (field, county, and State) at which
delivery is made.
(d)(1) Every independent producer seeking authority to render natural
gas service previously authorized by the Commission, as successor in
interest in all the properties or other rights covered by a particular
rate schedule, shall file three copies of the instrument of assignment
whereby the assignee acquired the properties (or rights therein)
involved, along with a request that the assignor's rate schedule be
redesignated as the rate schedule of the assignee. He shall also file
three copies of an informational summary, in the form prescribed in
250.8 of this chapter, for each contract of sale or transportation of
gas involved in the assignment.
(2) Where the authority being sought under paragraph (d)(1) of this
section relates only to an assigned portion of the rights covered by the
rate schedule of the assignor, the assignee shall file, as his rate
schedule, three copies of the assignor's basic contract of sale, as
amended, and of the instrument of assignment together with the
informational summary required by paragraph (d)(1) of this section.
(3) If the rate schedule of the assignor relating to the rights
assigned is in effect subject to refund or if the sale is being made by
the assignor under temporary authorization subject to a rate refund
condition, authority to render service will be granted to the assignee
only upon condition that he file assurance by way of bond or undertaking
that he will refund, at such times and in such amounts to such persons
as the Commission may find to be entitled thereto any portion of the
rate which had been permitted to become effective pursuant to 154.102
or the rate condition in the assignor's temporary authorization, as may
be found by the Commission not to be justified. Assignee's obligation
to refund, in the absence of his voluntary assumption of some greater
proportion of assignor's liability, shall attach as of the effective
date of the Commission's order granting the assignee a certificate or
temporary certificate as the base may be unless otherwise ordered or
provided.
(Natural Gas Act, 15 U.S.C. 717-717w; Dept. of Energy Organization
Act, 42 U.S.C. 7101-7352; E.O. 12009, 3 CFR 142)
(Order 174-B, 19 FR 8808, Dec. 23, 1954, as amended by Order 278, 29
FR 3699, Mar. 25, 1964; Order 556-A, 42 FR 41276, Aug. 16, 1977; Order
196, 46 FR 60432, Dec. 10, 1981)
18 CFR 154.93 Rate schedule defined.
For the purpose of 154.92 through 154.101 ''rate schedule'' shall
mean the basic contract and all supplements or agreements amendatory
thereof, effective and applicable on and after June 7, 1954, showing the
service to be provided and the rates and charges, terms, conditions,
classifications, practices, rules and regulations affecting or relating
to such rates or charges, applicable to the transportation of natural
gas in interstate commerce or the sale of natural gas in interstate
commerce for resale subject to the jurisdiction of the Commission:
Provided, That in contracts executed on or after April 3, 1961, for the
sale or transportation of natural gas subject to the jurisdiction of the
Commission, any provision for a change of price other than the following
provisions shall be inoperative and of no effect at law; the
permissible provisions for a change in price are:
(a) Provisions that change a price in order to reimburse the seller
for all or any part of the changes in production, severance, or
gathering taxes levied upon the seller;
(b) Provisions that change a price to a specific amount at a definite
date;
(b-1) Provisions that permit a change in price to the applicable just
and reasonable area ceiling rate which has been, or which may be,
prescribed by the Commission for the quality of the gas involved; and
(c) Provisions that, once in five-year contract periods during which
there is no provision for a change in price to a specific amount
(paragraph (b) of this section), change a price at a definite date by a
price-redetermination based upon and not higher than a producer rate or
producer rates which are subject to the jurisdiction of the Commission,
are not in issue in suspension or certificate proceedings, and, are in
the area of the price in question: Provided further, That any contract
executed on or after April 2, 1962, containing price-changing provisions
other than the permissible provisions set forth in the proviso next
above shall be rejected.
(Order 242, 27 FR 1357, Feb. 14, 1962, as amended by Order 329, 31 FR
15486, Dec. 8, 1966)
18 CFR 154.94 Changes in rate schedules.
(a) No change shall be made in any rate, charge, or service in effect
on and after June 7, 1954, for the interstate transportation or sale of
natural gas in interstate commerce subject to the jurisdiction of the
Commission by any independent producer required to file rate schedules
pursuant to 154.92, without first filing a change in rates pursuant to
section 4 (d) of the Natural Gas Act and in accordance with this
section. Each filing of a change in rate schedule must be accompanied
by the appropriate fee prescribed in 381.203 of this chapter, unless a
petition for waiver is submitted in lieu thereof under 381.106 of this
chapter.
(b) Except as provided in paragraphs (h) and (i) of this section,
every change in any rate schedule, rate, charge, classification, or
service effective or applicable to a sale subject to the jurisdiction of
the Commission as of June 7, 1954, and on file with the Commission, or
required to be filed pursuant to 154.92, or in any rate schedule, rate,
charge, classification or service effective or applicable to a sale
subject to the jurisdiction of the Commission initiated subsequent to
June 7, 1954, on file with the Commission, or required to be filed with
the Commission pursuant to 154.92 shall be filed with the Commission by
an original and three copies not less than 30 days nor more than 90 days
prior to the date such change in rate schedule is proposed to be made
effective.
(c) The operation of any provision of the rate schedule providing for
future or periodic changes in the rate, charge, classification, or
service after June 7, 1954, or the operation of any like provision in
any initial rate schedule filed after June 7, 1954, shall constitute a
change in rate schedule.
(d) Any change in any rate schedule, rate, charge, classification, or
service provided in a rate schedule in effect on June 7, 1954, which by
the terms of said rate schedule is to be operative after June 7, 1954
and prior to September 15, 1954, may be filed on less than thirty days'
prior notice, subject nevertheless to the right of the Commission to
suspend any such proposed change, if the Commission in any case shall,
within thirty days after the date of filing, find it necessary to
suspend such proposed change. If any such proposed change is suspended,
the suspension period will begin with the designated effective date of
such change.
(e) With each change in rate schedule not constituting a change in
rate level by any means there shall be submitted reasons, nature and
basis for the proposed change and the date upon which the change is
proposed to be made effective. Changes in service such as compression,
dehydration, etc., by either seller or buyer shall be considered as a
change in the existing rate level.
(f) Notice of change in rate level. An independent producer who is
proposing a contractual change in rates, charges, etc., shall file the
information specified in 250.14.
(g) A complete copy of all material filed pursuant to this section
shall be furnished to each party to the rate schedule. With each such
filing there shall be submitted to the Commission a list of the parties
to whom such material has been furnished.
(h) Blanket filing -- (1) General rule. An independent producer may
file a blanket affidavit under this paragraph under which it may collect
any applicable maximum lawful price (including periodic escalations)
under sections 102(d), 104, 106(a), 107(c)(5), 108 or 109 of the Natural
Gas Policy Act of 1978 (NGPA) or any contract price less than the
applicable maximum lawful price which changes monthly in accordance with
an NGPA inflation adjustment and to which it is entitled on the basis of
having qualified under the Natural Gas Act (NGA) filing requirements for
a base rate. Such price may be collected only in accordance with this
paragraph. A producer who has qualified under this section to collect a
base rate (including periodic escalations) for a sale of natural gas
continues to have blanket affidavit coverage for that sale when the
price received for the sale is by contract temporarily less than the
applicable NGPA maximum lawful price.
(2) Base rate. For purposes of this paragraph:
(i) Definition. ''Base rate'' means the maximum lawful price under
section 104, 106(a) or 109 of the NGPA applicable to a first sale of
natural gas, the maximum lawful price under section 102(d), 107(c)(5) or
108 of the NGPA for first sales for which a jurisdictional agency's
determination of eligibility has become final within the meaning of
273.102 of the chapter, or a contract rate which is less than the
applicable maximum lawful price under the NGPA and which changes monthly
in accordance with an NGPA inflation adustment.
(ii) Establishment of base rate. An independent producer has
established qualification for a base rate if: (A) It has made a filing
with the Commission under 154.92 or the preceding paragraphs of this
section to collect such base rate; (B) such filing has taken effect;
and (C) except in the case of minimum rate gas (as defined in
271.402(b)(9) of this chapter), collection of such rate is permissible
under the applicable sales contract. A producer who has qualified for
interim collections under 273.202 or 273.203 or retroactive
collections under 273.204 of this chapter may charge and collect the
applicable maximum lawful price allowable on the date the determination
of eligibility for the sales becomes final. However, until the base
rate is established under the rate schedule and a blanket affidavit is
filed pursuant to requirements of paragraph (h) of this section, the
producer is not entitled to collect subsequent monthly escalations in
the maximum lawful price applicable on the date of the final
determination.
(iii) Date of base rate. An initial filing under 154.92 to collect
a base rate has taken effect if such filing has been accepted by the
Commission. A rate change filing under the preceding paragraphs of this
section to collect a base rate takes effect on the thirty-first day
after the date of filing (or any later effective date specified in the
filing) unless such filing has been suspended or rejected. In the case
of natural gas eligible under section 102(d), 107(c)(5) or 108 of the
NGPA, a rate change filing under the preceding paragraphs of this
section to collect a base rate takes effect on the latest of the
following: the date the determination of eligibility becomes final;
the date of initial deliveries; or any other effective date specified
in the filing or in the contract authorizing collection of the filed
rate. A rate change filing under the preceding paragraphs of this
section to collect a base rate less than the maximum lawful price but
which changes monthly in accordance with an NGPA inflation adjustment
takes effect on the date the otherwise applicable maximum lawful price
would take effect.
(3) Sales covered by affidavit. An affidavit under paragraph (h)(1)
covers:
(i) Any first sale for which qualification to collect the base rate
has been established before the date of filing of the affidavit, if such
first sale is listed in the affidavit, and
(ii) Any first sale for which qualification to collect the base rate
is established on or after the date of filing of the affidavit, if the
filing to establish the base rate states that upon establishment of
qualification for the base rate, the first sale will be covered by such
affidavit.
(4) Effective date of coverage under affidavit. (i) An affidavit
filed before December 30, 1978, is effective with respect to deliveries,
pursuant to a first sale, beginning at the later of December 1, 1978, or
the date of qualification of such first sale for the base rate.
(ii) An affidavit filed on or after December 30, 1978, is effective
with respect to deliveries, pursuant to a first sale, beginning at the
later of the date of qualification of such first sale for the base rate
or the date of filing of the affidavit.
(iii) Affidavits with respect to natural gas eligible under section
102(d), 107(c)(5) or 108 of the NGPA which are filed no later than 90
days after the date a determination of eligibility has become final or
90 days after the date certificate authorization is granted become
effective on the later of the following: the date the base rate takes
effect; or the date a filing to establish the base rate is made (if the
filing to establish the base rate is made more than 90 days after the
date the determination becomes final or more than 90 days after the date
certificate authorization is granted).
(iv) Affidavits filed with respect to natural gas eligible under
section 102(d), 107(c)(5) or 108 of the NGPA, and filed later than 90
days after the date the determination becomes final or the date
certificate authorization is granted, become effective on the date the
affidavit is filed or the date of the filing to establish the base rate,
whichever is later.
(5) Effect of affidavit. An affidavit filed under this paragraph is
deemed to be a notice of change in rate for purposes of section 4(d) of
the NGA. A filing made under this paragraph does not constitute a
waiver of the right to apply for a higher rate under sections 104(b)(2),
106(c) or 109(b)(2) of the NGPA.
(6) Form. Any affidavit filed under paragraph (h)(1) of this section
shall be signed in accordance with 274.201(c) of this chapter. The
form for such affidavit appears as Appendix A to this section.
Concurrently with any filing made under this paragraph, the filing party
must serve each affected purchaser with a copy of the affidavit.
(7) Contractual authorization. Except in the case of minimum rate
gas (as defined in 271.402(b)(9) of this chapter), neither the filing
of a blanket affidavit, nor the acceptance for filing of such an
affidavit by the Commission, will affect any person's contractual right
to purchase natural gas at a rate which is less than the applicable
maximum lawful price under the NGPA. For special rules respecting
contractual authorization to collect NGPA rates, see 270.205.
(8) Protests. Any protest to a blanket affidavit shall be submitted
to the Commission.
(i) In the case of a protest by the purchaser in the first sale,
within 60 days from the filing of the blanket affidavit or August 15,
1979, whichever is later; or
(ii) In any other case, within 60 days of the filing of the
evidentiary submission referencing the contract which governs the sales
covered by the blanket affidavit, or October 15, 1979, whichever is
later. A protest under this clause shall also be served upon the
purchaser in the first sale.
(i) Interim and retroactive collections -- (1) Filings. Compliance
with the applicable filing requirements imposed by 273.201(c),
273.202(d), 273.203(c), and 273.204(c)(3) of this chapter shall be
deemed to satisfy the requirements of paragraph (b) of this section and
section 4(d) of the Natural Gas Act for first sales of natural gas to
which the Natural Gas Act remains applicable and for which an interim or
retroactive collection is authorized by part 273 of this chapter. The
30 day notice otherwise required by section 4(d) of the Natural Gas Act
is waived.
(2) Contractual authorization. Neither the filing described in
paragraph (i)(1) of this section nor the acceptance of such filing by
the Commission, will affect any person's contractual right to purchase
natural gas at a rate which is less than the applicable maximum lawful
price under the NGPA.
(3) Protests. (i) Any protest shall be submitted to the Commission.
(A) In the case of a protest by the purchaser in the first sale,
within 60 days from the date of such filing or August 15, 1979,
whichever is later; or
(B) In any other case, within 60 days of the filing of the
evidentiary submission referencing the contract which governs the sales
covered by the interim or retroactive collection filing, or October 15,
1979, whichever is later. A protest filed under this subclause shall
also be served upon the purchaser in the first sale.
(ii) If a protest is made with respect to a filing under paragraph
(i)(1) of this section, on the grounds of lack of contractual
authorization, then notwithstanding 273.302(f) of this chapter, any
refund obligation under 273.302 of this chapter shall continue until
contractual authorization is established or until refund is made in
accordance with the direction of the Commission.
(j) Evidentiary submission by pipeline, protest procedure. (1)
Evidentiary submission. Each interstate pipeline which purchases
natural gas in a first sale and sells such gas for resale shall file an
evidentiary submission which shall include:
(i)(A) The rate schedule number assigned by the Commission for each
contract for each first sale of natural gas for which the seller has
made a rate increase filing under paragraph (h) or (i) of this section;
(B) The date of the contract for each first sale of natural gas by a
small producer for which the small producer has asserted the right to
collect the maximum lawful price under the NGPA.
(ii) The name of the seller for each contract listed in paragraph
(j)(1)(i) of this section;
(iii) The section or sections of the NGPA which are applicable to
each first sale of natural gas under each contract listed in paragraph
(i)(1)(i) of this section;
(iv)(A) A statement specifying whether or not, in such pipeline's
opinion, the seller has contractual authority to collect the filed-for
NGPA rate, and (B) the text of any contract provisions, and any other
evidence, which the pipeline believes constitutes, or may constitute,
contractual authority for the seller to charge and the pipeline to pay a
maximum lawful price under the NGPA; and
(v) The rate schedule number (or if none has been assigned, the date
of the contract) for each natural gas contract listed in paragraph
(j)(1)(i) of this section with respect to which the pipeline has filed a
protest on grounds of lack of contractual authorization under paragraph
(h)(8) or (i)(3) of this section or under 157.40(1)(c)(v)(B).
(vi) Any requirement of this section for data which has previously
been submitted in an evidentiary submission under this section may be
satisfied by a specific reference sufficient to locate the data in the
prior evidentiary submission.
(2) Filing. (i) The evidentiary submission required by paragraph
(j)(1) of this section shall be filed with the Commission, and, if
requested, served on the seller in the sale, and any state Commission,
interstate pipeline or local distribution company. In the case of all
contracts except small producer contracts, the evidentiary submission
shall be filed by the later of:
(A) August 15, 1979, or
(B) 60 days from the date the pipeline received notice of:
(1) An interim collection to be made pursuant to 273.202(d)(1);
(2) A retroactive collection to be made pursuant to
273.204(c)(3)(iii); or
(3) A filing pursuant to paragraph (h)(6) of this section. In the
case of small producer contracts, as defined in 157.40(a), the
evidentiary submission shall be filed no later than September 5, 1979,
or, not later than 60 days after the date on which the pipeline knew or
should have known of the seller's assertion of contractual authority to
charge and collect a maximum lawful price under the Natural Gas Policy
Act of 1978, whichever is later. In either case, the seller in the
first sale may request a service list of the parties served with the
evidentiary filing.
(ii) The seller in the first sale may submit, to the Commission and
any other party served with the evidentiary submission, any supplemental
information deemed relevant to the evidentiary submission.
(3) Contents of protests. Each protest filed under paragraph (h)(8)
or (i)(3) of this section or 157.40(c)(1)(v)(B) shall
(i) Specifically identify the contract which is protested,
(ii) Set forth the text of the contractual provisions which the
protestor believes is inconsistent with the conclusion that the contract
authorizes the seller to collect the filed-for NGPA rate, and the
specific reasons why the protestor believes such inconsistency exists,
and
(iii) May include any other evidence which the protestor believes is
relevant to the issue of the existence of contractual authorization to
collect the NGPA rate.
(4) Protest procedure. (i) Each protest filed under paragraph (h)(8)
or (i)(3) of this section or 157.40(1) (c)(v)(B) of this subchapter
shall be noticed in the Federal Register and transmitted to the Chief
Administrative Law Judge for assignment to an Administrative Law Judge.
A protest will be set for hearing unless summary disposition is made of
the protest.
(ii) Upon receipt by the Commission of any protest referred to in
paragraph (j)(i) of the section, the seller in the first sale shall be
joined as a party.
(iii) Upon receipt by a pipeline of any third-party protest referred
to in paragraph (j)(4)(i) of this section, the pipeline shall mail
within thirty days to the seller under the contract a copy of such
third-party protest. For purposes of this clause, a third-party protest
is a protest by a party who is not a party to the contract which is
protested.
(5) Authority of Chief Administrative Law Judge. (i) In the case of
any proceeding relating to a protest filed under paragraph (h)(8) or
(i)(3) of this section or under 157.40(1)(c)(v)(B), the Chief
Administrative Law Judge is authorized to issue such procedural orders,
including orders setting matters for heating, severing and consolidating
proceedings and certifying questions to the Commission, as he determines
necessary or appropriate for the expeditious consideration of such
protests. The Chief Administrative Law Judge may, by such order,
authorize the Administrative Law Judge to whom a protest is assigned to
issue similar procedural orders relating to that protest.
(ii) Part I of the Commission's regulations (relating to rules of
practice) shall apply to such protest proceedings except to the extent
otherwise provided by a procedural order issued under paragraph
(j)(5)(i) of this section. Section 385.715 of this chapter shall apply
to any procedural order issued under paragraph (j)(5)(i) of this
section.
(6) Definitions. For purposes of this paragraph the terms ''first
sale'' and ''interstate pipeline'' have the same meaning as they do
under section 2 of the NGPA.
(k) Affidavit to collect production-related costs -- (1) General
rule. If an independent producer has made an effective filing under
paragraph (h) of this section, the producer may file an affidavit under
this paragraph under which he may, in addition to the base rate
described under the affidavit filed under paragraph (h) of this section,
collect an amount necessary to recover production-related costs if:
(i) The producer is permitted, in accordance with 271.1104 of this
chapter, to charge for the production-related costs; and
(ii) The production-related costs are incurred as part of the sales
transaction described in the filing made under paragraph (h).
(2) Amendments. The affidavit filed under paragraph (k)(1) of this
section shall be amended to reflect any changes in eligibility to
recover production-related costs under new or old contracts.
(3) Effect of affidavit. An affidavit filed under paragraphs (k)(1)
or (k)(2) of this section shall be deemed to be a notice of change of
rate for purposes of section 4(d) of the Natural Gas Act.
(4) Effective date of coverage under affidavit. Except as otherwise
permitted for delivery and compression allowances under
271.1104(d)(1)(iv)(B) and 271.1104(e), an affidavit filed under this
paragraph by May 6, 1983, shall become effective with respect to
deliveries beginning on March 7, 1983; an affidavit filed under this
paragraph after May 6, 1983, shall become effective on the date of
filing with respect to deliveries beginning on and after the date of
filing. Any amendment filed under paragraph (k)(2) of this section will
be subject to the filing requirements of 154.92 of this chapter.
(5) Form of affidavit and service. Any affidavit filed under
paragraph (k)(1) of this section shall be signed. The form for such
affidavit appears as Appendix B to this section. Concurrently, with any
filing made under this paragraph, the filing party must serve each
affected purchaser with a copy of the affidavit or amendment.
(6) Protests. Any protest to the filing of an affidavit under
paragraphs (k)(1) and (k)(2) of this section shall be submitted to the
Commission under the provisions of 385.211 of this chapter (Rule 211).
-------- (the affiant) certifies that he or she is --------
(exact legal title or capacity of the affiant) of -------- (filing
party) and, that:
(1) Under 18 CFR 154.94(h) the filing party is entitled, and intends,
to collect a maximum lawful price (including periodic escalations) under
section 102(d), 104, 106(a), 107(c)(5), 108, or 109 of the Natural Gas
Policy Act of 1978 (NGPA) or a lesser contract rate which changes
monthly in accordance with an NGPA inflation adjustment for each of the
sales identified in the form attached as Exhibit A to his or her
affidavit; and
(2) He or she will notify the Commission that additional first sales
are covered by this affidavit in accordance with the requirements of
section 154.94(h).
The undersigned swears or affirms that with respect to each rate
filing under 18 CFR 154.92 or 154.94 which is identified in Exhibit A
and on which he or she relies to collect the applicable price under this
affidavit, he or she has made a diligent inquiry of individuals with
personal knowledge of the facts contained in such filing and has
determined after such inquiry that all statements made in such filings
are true and accurate to the best of his or her knowledge, information
and belief concerning, among other things, the factors relating to the
eligibility to charge the rates therein, and that he or she has examined
the prices to be charged under the NGPA for sales covered by this
affidavit and found them to be in accordance with sections 102(d),
104(b)(1)(A), 106(a), 107(c)(5), 108 and 109 of the NGPA.
Signature
Respondent name and code ------------------------
I. General Instructions. Exhibit A shall be attached to the
affidavit filed pursuant to section 154.94(h)(1) to identify those sales
that qualify for the maximum lawful price permitted under section
102(d), 104, 106(a), 107(c)(5), 108, or 109 of the NGPA, or any lesser
contract rate which changes monthly in accordance with an NGPA inflation
adjustment. Where necessary, the list may be continued on succeeding
pages in the same form. An affidavit and Exhibit A or revised Exhibit A
thereto may be filed in conjunction with a qualifying initial service
application and should be attached to the billing statement filed
therewith. A ''yes'' answer to Item 9 on Format No. 559 ( 250.14) is
considered a revision of Exhibit A.
II. Specific Instructions. Respondent Name and Code: Enter the name
of the respondent and the code, if any, assigned to the respondent from
the publication entitled Buyer/Seller Codes.
FERC Rate Schedule Number: Enter the rate schedule number assigned
by the FERC. If none, enter the contract date.
Buyer Name: Enter the buyer name.
Applicable Just and Reasonable Rate Previously Established Under the
NGA: Enter either the base rate (Mcf at 14.73 psia) reflected in the
last notice of change in rate submitted for the vintage involved or the
base rate reflected in the initial billing statement. See 250.14 of
this chapter.
Applicable NGPA Rate: Enter the maximum lawful MMBtu ceiling price
(excluding taxes) for the vintage involved.
Effective Date of the Rate Establishment: Enter the proposed
effective date of the NGPA rate.
-------- (the affiant) certifies that he is -------- (exact
legal title or capacity of the affiant) of (filing -------- party) and,
that:
(1) Under 18 CFR 154.94(k) the filing party is entitled, and intends,
to collect an adjustment under section 110 of the Natural Gas Policy Act
of 1978 (NGPA) for each of the sales identified in the form attached as
Exhibit A to his affidavit; and
(2) he will notify the Commission of any changes to be covered by
this affidavit in accordance with the requirements of 154.94(k)(2).
The undersigned swears or affirms that with respect to each rate
schedule which is identified in Exhibit A and on which he relies to
collect the applicable production-related cost allowance, he has made a
diligent inquiry of individuals with personal knowledge of the facts
contained in such filing and has determined after such inquiry that all
statements made in such filing are true and accurate to the best of his
knowledge, information and belief concerning, among other things, the
factors relating to the eligibility to charge the allowances therein,
and that he has examined the schedules covered by this affidavit and
found them to be in accordance with sections 110 of the NGPA and
271.1104 of Title 18 Code of Federal Regulations.
Signature
Respondent name
I. General Instructions. Exhibit A shall be attached to the
affidavit filed pursuant to 154.94(k) to identify those sales which
qualify for production-related allowances established by the Commission
pursuant to section 110 of the NGPA. The rate schedules should be shown
in numerical sequence, and where necessary the list may be continued on
succeeding pages in the same form.
II. Specific Instruction. Respondent Name.
Enter the name of the respondent.
FERC Rate Schedule Number: Enter the rate schedule number assigned
by the FERC. If none, or unknown, enter the contract date and
certificate docket number, if known.
Buyer Name: Enter the buyer name.
Applicable NGPA Section: Enter the NGPA section applicable to the
sales qualifying for the allowance (i.e., section 102(d), 104, 106(a),
107(c)(5), 108, 109).
Type of Adjustment: Enter the type of adjustment (e.g., delivery,
compression, treating, conditioning).
(Natural Gas Act, as amended, 15 U.S.C. 717 et. seq., Department of
Energy Organization Act, Pub. L. 95-91, 42 U.S.C. 7101-7352 and 7107 et
seq., E.O. 12009, 42 FR 46267 Natural Gas Policy Act of 1978, Pub. L.
95-621, 15 U.S.C. 3301 et seq., Administrative Procedure Act, 5 U.S.C.
553, 3 CFR 142)
(Order 174-B, 19 FR 8809, Dec. 23, 1954)
Editorial Note: For Federal Register citations affecting 154.94,
see the List of CFR Sections Affected in the Finding Aids section of
this volume.
18 CFR 154.95 Oral agreements.
If any rate schedule or change in a rate schedule is not in writing,
its terms shall be reduced to writing and filed with the Commission. If
the parties are not able to agree to the precise terms within a
reasonable time, the applicant shall file, in triplicate, a statement of
his understanding of the agreement, serving a copy thereof on the other
parties to the agreement. Such other parties, in the latter event, may
subsequently file, in triplicate, their understanding of the agreement.
(Order 174-B, 19 FR 8809, Dec. 23, 1954, as amended by Order 202, 23
FR 3716, May 29, 1958)
18 CFR 154.96 Filing date.
Filing date means the day on which a rate schedule, or a change in
rate schedule, is received in the office of the Secretary of the
Commission in compliance with the requirements of 154.92 through
154.99.
(Order 174-B, 19 FR 8809, Dec. 23, 1954)
18 CFR 154.97 Cancellation or termination -- assignment of interest.
(a) When a rate schedule or part thereof is proposed to be cancelled
or is to terminate by its own terms and no new rate schedule or part
thereof is to be filed in its place, the independent producer shall
notify the Commission of the proposed cancellation or termination at
least 30 days prior to the proposed effective date of such cancellation
or termination. Such notice shall be in the form prescribed in 250.9
of this chapter and shall contain a statement showing the reasons for
the cancellation or termination and a certification that such notice of
cancellation or termination has been served on the affected party or
parties, together with names of parties to whom the notice has been
mailed.
(b) When part of the acreage or other interest of an independent
producer is proposed to be assigned to a successor who intends to render
service from the same acreage as the assignor pursuant to the terms of
the assignor's effective rate schedule, the assignor shall file with the
Commission three copies of the instrument whereby the assignment is
effected.
(Order 278, 29 FR 3700, Mar. 25, 1964)
18 CFR 154.98 Waiver of notice requirements.
Upon application and for good cause shown, the Commission may by
order provide that a rate schedule or a change in rate schedule shall be
effective on less than 30 days' notice. The Commission upon request and
for good cause shown may permit a rate schedule or a change in rate
schedule to be filed prior to 90 days before the effective date.
(Order 174-B, 19 FR 8809, Dec. 23, 1954)
18 CFR 154.99 Number of copies; material to be submitted with changes
in rate schedules.
(a) Three copies of any rate schedule or part thereof, and material
required by 154.95 to be filed therewith, and Notices of Cancellation
or Termination submitted for filing, must be supplied to the Commission.
The Commission reserves the right to request additional copies. All
copies are to be included in a single package, insofar as possible,
together with a letter of transmittal and other material and information
required by this part, addressed to the Secretary of the Federal Power
Commission, Washington 25, D.C.
(b) Such letter of transmittal shall contain a complete list of all
material being filed, properly designated so that each item is easily
identifiable.
(Order 174-B, 19 FR 8809, Dec. 23, 1954, as amended by Order 195, 22
FR 1329, Mar. 5, 1957)
18 CFR 154.100 Rejection of rate schedules and material submitted for
filing.
The Commission reserves the right to reject any rate schedule or
material submitted for filing which fails to comply with the
requirements of 154.92 through 154.99.
(Order 174-B, 19 FR 8809, Dec. 23, 1954)
18 CFR 154.101 Acceptance for filing not approval.
Acceptance for filing of any rate schedule or part thereof, or of a
Notice of Cancellation or Termination, is not to be construed as
approval by the Commission, nor to serve in lieu of any requirements
under section 7 of the Natural Gas Act.
(Order 174-B, 19 FR 8809, Dec. 23, 1954)
18 CFR 154.102 Suspended changes in rate schedules; motions to make
effective at end of period of suspension; procedure.
(a) Effect of suspended changes in rate schedules. If a rate
suspension proceeding initiated under section 4(e) of the Natural Gas
Act has not been concluded and an order issued by the Commission at the
expiration of the suspension period, the proposed change of rate,
charge, classification, or service shall go into effect pursuant to
motion of the independent producer proposing the change so long as the
independent producer complies with all requirements of this section.
The independent producer may file such motion concurrently with the
proposed change of rate, charge, classification, or service, at which
time the independent producer may request that the proposed change be
effectuated at the expiration of the suspension period. The proposed
rate, charge, classification, or service shall become effective as of
the date of receipt of such motion by the Commission or the expiration
of the suspension period, whichever is later. Three copies of the
motion shall be filed with the Commission. The Secretary, upon receipt
of such motion, shall, if the motion is legally adequate for the
purpose, notify the movant that the proposed rate change shall be
effective as provided in this section: Provided, That the Secretary
shall refer to the Commission any motion requesting that a change in
rate, charge, classification, or service be made effective, if in his
judgement the motion should receive the specific attention of the
Commission.
(b) Recordkeeping. Any independent producer whose proposed increased
rates or charges were suspended and have gone into effect pending final
order of the Commission pursuant to section 4(e) of the Natural Gas Act
shall:
(1) Keep accurate accounts of all amounts received by reason of the
increased rates or charges which became effective after the suspension
period, for each billing period, specifying by whom and in whose behalf
such amounts are paid;
(2) Record for each purchaser:
(i) The monthly billing determinants of natural gas sold and
delivered to each purchaser under the suspended agreements and tariffs;
(ii) The revenues which would result from such sales if they were
computed under the rates in effect immediately prior to the date the
proposed increased rates or charges became effective;
(iii) The revenues resulting from such sales as computed under the
proposed increased rates or charges that became effective after the
suspension period; and
(iv) The difference between the revenues computed in paragraphs
(c)(2) (ii) and (iii) of this section.
(c) Refunds. (1) Any independent producer that collects rates and
charges pursuant to this section shall refund at such times, in such
amounts to the persons entitled thereto and in such manner as may be
required by final order of the Commission the portion of any increased
rates or charges found by the Commission in that proceeding not to be
justified, together with interest thereon as required in paragraph
(c)(2) of this section.
(2) Interest shall be computed from the date of collection until
refunds are made as follows:
(i) At a rate of seven percent simple interest per annum on all
excessive rates or charges held prior to October 10, 1974;
(ii) At a rate of nine percent simple interest per annum on all
excessive rates or charges held between October 10, 1974, and September
30, 1979; and
(iii)(A) At an average prime rate for each calendar quarter on all
excessive rates or charges held (including all interest applicable to
such rates or charges) on or after October 1, 1979. The applicable
average prime rate for each calendar quarter shall be the arithmetic
mean, to the nearest one-hundredth of one percent, of the prime rate
values published in the Federal Reserve Bulletin, or in the Federal
Reserve's ''Selected Interest Rates'' (Statistical Release G. 13), for
the fourth, third and second months preceding the first month of the
calendar quarter.
(B) The interest required to be paid under paragraph (c)(2)(iii)(A)
of this section shall be compounded quarterly.
(3) Any independent producer that is required to refund amounts
collected pursuant to this section shall bear all costs of any such
refunding.
(d) No interest is required to be paid on any portion of a refund
which represents payments of royalties or taxes to Federal or State
governmental authorities, except to the extent that such authorities pay
interest to the first seller when refunding overpayments of royalties or
taxes.
(Sec. 16, Natural Gas Act, 15 U.S.C. 717o; Sec. 309, Federal Power
Act, 16 U.S.C 825h; Department of Energy Organization Act, Pub. L.
95-91; E.O. 12009, 42 FR 46267; Department of Energy Organization Act,
42 U.S.C. 7101-7352; E.O. 12009 43 CFR 142; Interstate Commerce Act,
49 U.S.C. 1, et seq.; Natural Gas Act, 15 U.S.C. 717-717w)
(44 FR 53504, Sept. 14, 1979, as amended at 45 FR 3890, Jan. 21,
1980; Order 273, 48 FR 1289, Jan. 12, 1983; 49 FR 3644, Jan. 30, 1984;
Order 399, 49 FR 37746, Sept. 26, 1984)
18 CFR 154.103 Limitations on provisions in rate schedules relating to
makeup period for taking prepaid gas.
Contracts for the transportation or sale of natural gas, subject to
the jurisdiction of the Commission, executed after February 1, 1967,
will be rejected if they contain provisions precluding buyer from
receiving gas paid for but not taken at any time during a period of at
least 5 years immediately following payment for such gas not taken,
subject to contract provisions to protect against drainage. If the
contract terminates before the end of the minimum 5-year makeup period,
a shorter makeup period, consistent with the time remaining under the
contract will be permitted. The contract may provide that the
prepayment price is the total price for the gas. In the alternative the
contract may provide that where the price being collected under the
contract has changed between the date that the gas was paid for but not
taken and the date the gas is madeup, the makeup gas will be delivered
at the price effective at the time it is delivered. If the price has
decreased, the decrement will be set off against payments for other gas
delivered under the contract and if the price has increased pursuant to
the provisions of section 4 of the Natural Gas Act, any increase
provided for the makeup gas should be subject to any rate order issued
by the Commission in the appropriate rate action.
(Secs. 5, 7, 52 Stat. 823, 825, 56 Stat. 83; 15 U.S.C. 717d, 717f)
(Order 334-A, 32 FR 5258, Mar. 29, 1967)
154.104 (Reserved)
18 CFR 154.105 Area rates -- Southern Louisiana area.
(a) From and after August 1, 1971, the effective date of Opinion No.
598 in Dockets Nos. AR69-2 and AR69-1, et al., 46 FPC ------ , and
prior to October 1, 1977, for contracts dated on or after October 1,
1968, and prior to October 1, 1976, for contracts dated prior to October
1, 1968, no rate or charge made, demanded or received under a rate
schedule filed pursuant to this part for gas produced in the southern
Louisiana area shall exceed the applicable area rate prescribed by this
section except in compliance with a specific order of the Commission.
(b) Applicable area rate means the base area rate established by
paragraph (c) of this section adjusted to the extent required by
paragraphs (d), (e), (g), (h), and (i) of this section.
(c) The base area rates: The following base area rates per Mcf (at
15.025 p.s.i.a.) are hereby established subject to the adjustments
provided in paragraphs (d), (e), (g), (h), and (i) of this section,
(1) Gas sold under contracts dated prior to October 1, 1968:
(i) 22.375 cents for gas subject to Louisiana production tax.
(ii) 21.375 cents for gas not subject to Louisiana production tax.
(2) Gas sold under contracts dated on or after October 1, 1968, and
newly discovered reservoirs discovered on or after October 1, 1968:
(i) 26 cents prior to October 1, 1974.
(ii) 27 cents on and after October 1, 1974.
(3) For gas sold under contracts dated prior to October 1, 1968, the
base area rates in paragraph (c)(1) of this section shall be adjusted
upward 0.5 cent on October 1, 1973.
(4) The applicable base area rate prescribed herein shall be adjusted
downward by 0.51 cent for deliveries made closer to the wellhead than a
central point in the field, the tailgate of a natural gas processing
plant, an offshore platform to the buyer's line, or a point on the
buyer's pipeline.
(d) Contingent escalations of area rates: From such time prior to
October 1, 1977, as the Commission determines that independent producers
shall have dedicated for sale to interstate pipelines new gas reserves
from the southern Louisiana area, in addition to gas already dedicated
as of October 1, 1970 and also in addition to any dedications used to
reduce refund obligations, in the amounts hereafter specified, the base
area rates established in paragraph (c) of this section for gas sold
under contracts prior to October 1, 1968, shall be increased as follows:
New gas reserves shall mean the estimated original recoverable
reserves in place, less any prior production therefrom, which are either
initially committed to a jurisdictional sale under a contract dated on
or after October 1, 1970, or which are new discoveries (as defined in
2.56(f)(2) of the Commission's rules of practice and procedure in this
chapter) made on or after October 1, 1970.
(e) Quality standards and adjustments to the base area rates:
(1) The base area rates fixed in paragraph (c) of this section shall
be adjusted for any deviations from the following standards.
(i) B.t.u. adjustment. The maximum standard will be 1,050 B.t.u.'s
per cubic foot of gas, saturated with water vapor, at 60 F. and 14.73
p.s.i.a., and the minimum standard will be 1,000 B.t.u.'s per cubic foot
of gas, saturated with water vapor, at 60 F. and 14.73 p.s.i.a. For
gas with more than 1,050 B.t.u.'s per cubic foot, upward adjustments
shall be made on a proportional basis from a base of 1,050 B.t.u.'s. For
gas with less than 1,000 B.t.u.'s per cubic foot, downward adjustments
shall be made on a proportional basis from a base of 1,000 B.t.u.'s.
(ii) Delivery point. The gas shall be delivered at a central point.
A central point includes a central point in the field, the tailgate of a
natural gas processing plant, an offshore platform to the buyer's line,
and a point on the buyer's pipeline.
(2) When a purchaser buys gas which deviates from the quality
standards established in paragraph (e)(1) of this section, the base area
rate fixed in paragraph (c) of this section shall be adjusted for any
deviations from such standards as follows:
(i) The applicable base area rate shall be adjusted downward or
upward by the amount of any applicable B.t.u. adjustment as set forth in
paragraph (e)(1)(i) of this section.
(f) From and after August 1, 1971, nonassociated gas which has been
paid for but not taken may be taken in the manner provided by the
contract at any time within 5 years (or longer if the contract so
provides) from the end of the contract year in which the obligation to
take occurred, provided the purchaser must take the gas within the term
of contract under which the gas is being purchased.
(g) The applicable area rate shall be adjusted upward or downward to
reflect 87.5 percent of any change in State or Federal production,
severance, gathering, or similar taxes effective after October 1, 1970.
(h) If gas produced offshore is delivered onshore, at the sole cost
of the producer, the applicable area rate for such offshore gas shall be
increased by 1 cent.
(i) As to all contracts dated after August 1, 1971, together with all
sales conditioned to the outcome of Docket No. R-338, under which a
pipeline transports liquid hydrocarbons or liquefiable hydrocarbons and
related fuel, the contract provisions shall control and the ceiling
price shall not be reduced; provided, however, if such contracts do not
provide for a transportation fee at least equal to the amount obtained
by the following formula:
Liquefiable hydrocarbons and related fuel -- 0.02 cent per Mcf per
mile.
Liquid hydrocarbons -- 20 cents per barrel.
then the payment to the pipeline, from and after August 1, 1971,
shall be equal to the amounts set forth in the above formula. As to all
contracts dated prior to August 1, 1971, except sales conditioned to the
outcome of Docket No. R-338, the terms of the contract shall control
and there shall be no reduction in the ceiling contract price because of
such transportation.
(j) Prior to October 1, 1977, for contracts dated on or after October
1, 1968, and prior to October 1, 1976, for contracts dated prior to
October 1, 1968, any seller seeking to charge a rate in excess of the
applicable area rate must file a petition for waiver or amendment of
this section pursuant to 1.7(b) of the Commission's rules of practice
and procedure in this chapter (18 CFR 1.7(b)) fully justifying the
relief sought in the light of this opinion and order. Prior to October
1, 1977, for contracts dated on or after October 1, 1968, and prior to
October 1, 1976, for contracts dated prior to October 1, 1968, a seller
may not file any rate increase in excess of the applicable area rate
herein prescribed unless and until the Commission grants the petition.
(k) The southern Louisiana area consists of the portion of the State
of Louisiana lying south of the 31 parallel and including all areas,
both State and Federal, in the Gulf of Mexico off the shore of
Louisiana.
(36 FR 13916, July 28, 1971)
18 CFR 154.106 Area rates -- Hugoton-Anadarko area.
(a) From and after October 1, 1970, the effective date of Opinion No.
586, Docket No. AR64-1 et al., -------- FPC -------- , and prior to
July 1, 1977, no rate or charge made, demanded or received under a rate
schedule filed pursuant to this part for gas produced in the
Hugoton-Anadarko area shall exceed the applicable area rate prescribed
by this section except in compliance with a specific order of the
Commission.
(b) Applicable area rate means the base area rate established in
paragraph (c) of this section adjusted to the extent required by
paragraphs (d), (e), and (f) of this section.
(c) The base area rates: The following base area rates per Mcf (at
14.65 p.s.i.a.) are hereby established and subject to the adjustments
provided in paragraphs (d), (e), and (f) of this section:
(1) Gas sold under contracts dated prior to November 1, 1969:
(i) For all gas produced in the Panhandle and Hugoton Fields: 3006
(a) Prior to July 1, 1972:
12.50 cents in Kansas.
13.25 cents in Oklahoma.
13.50 cents in Texas.
(b) On and after July 1, 1972:
13.50 cents in Kansas.
14.25 cents in Oklahoma.
14.50 cents in Texas.
(ii) For all gas produced from fields or reservoirs other than the
Panhandle and Hugoton Fields:
(a) Prior to July 1, 1972:
17.50 cents in Kansas.
18.50 cents in Oklahoma.
19.00 cents in Texas.
(b) On or after July 1, 1972:
18.50 cents in Kansas.
19.50 cents in Oklahoma.
20.00 cents in Texas.
(2) Gas sold under contracts dated on or after November 1, 1969.
(i) Gas well gas:
(a) Prior to July 1, 1972:
19.0 cents in Kansas.
20.0 cents in Oklahoma.
20.5 cents in Texas.
(b) On or after July 1, 1972:
20.0 cents in Kansas.
21.0 cents in Oklahoma.
21.5 cents in Texas.
(ii) Casinghead gas: 4007
(a) Prior to July 1, 1972:
17.5 cents in Kansas.
18.5 cents in Oklahoma.
19.0 cents in Texas.
(b) On or after July 1, 1972:
18.5 cents in Kansas.
19.5 cents in Oklahoma.
20.0 cents in Texas.
(d) Quality standards and adjustments to the base area rate:
(1) For gas sold under contracts dated prior to November 1, 1969,
quality standards and resulting adjustments to the base area rate shall
be in accordance with the provisions of the particular contract with
respect to contract rates. 5008
(2) For gas sold under contracts dated on or after November 1, 1969,
quality standards and resulting adjustments to the base area rate shall
be in accordance with the provisions of the particular contract with
respect to contract rates, except:
(i) Hydrogen sulphide. The gas shall contain not more than 1 grain
of hydrogen sulphide per 100 cubic feet of gas at 60 F. and 14.73
p.s.i.a. (10 gr. per Mcf).
(ii) Total sulphur. The gas shall contain not more than 20 grains of
total sulphur per 100 cubic feet of gas at 60 F. and 14.73 p.s.i.a.
(200 gr. per Mcf).
(iii) Carbon dioxide. The gas shall contain not more than 3 percent
by volume of carbon dioxide.
(iv) B.t.u. adjustment. For gas with more than 1,000 B.t.u.'s per
cubic foot, at 60 F. and 14.73 p.s.i.a., upward adjustments shall be
made on a proportional basis from a base of 1,000 B.t.u.'s. For gas with
less than 1,000 B.t.u.'s per cubic foot, at 60 F. and 14.73 p.s.i.a.,
downward adjustments shall be made on a proportional basis from a base
of 1,000 B.t.u.'s.
(e) Adjustment for substantial off-lease gathering: Where delivery
of the gas is made after substantial off-lease gathering by the
producer, whether at a plant tailgate or at a central point, the
applicable area rate shall be adjusted upward above the base area rate:
(1) For gas produced in the Panhandle and Hugoton Fields:
(i) Prior to July 1, 1972, 2 cents per Mcf.
(ii) On or after July 1, 1972, 2.5 cents per Mcf.
(2) For gas produced from fields or reservoirs other than the
Panhandle or Hugoton Fields, 1 cent per Mcf.
(3) In all instances where deliveries are nominated for the gathering
allowance, or claim to the same is otherwise made, that portion of any
rate or charge attributable to such gathering allowance, and made
effective pursuant to the Order herein, shall be charged and collected
subject to refund, with interest at 7 percent per annum, pending the
Commission's determination, whether such gathering allowance is, in
fact, applicable.
(f) Adjustments for tax changes: The applicable area rate shall be
adjusted upward by 75 percent of the amount of any applicable new State
or Federal production, severance, or similar taxes, effective subsequent
to January 29, 1970, and shall be adjusted upward by 75 percent of the
amount of any increase in existing State or Federal production,
severance, or similar taxes, subsequent to January 29, 1970, and shall
be adjusted downward by 75 percent of the amount of any decrease in
existing State or Federal production, severance, or similar taxes
subsequent to January 29, 1970.
(g) The Hugoton-Anadarko area consists of the State of Kansas, Texas
Railroad Commission District No. 10, and the Oklahoma counties of
Cimarron, Texas, Beaver, Harper, Woodward, Ellis, Woods, Alfalfa, Grant,
Major, Garfield, Roger Mills, Dewey, Custer, Blaine, Kingfisher,
Canadian, Beckham, Washita, Caddo, and Grady, and that part of Stephens
County lying within T. 2 N., RS. 4 and 5 W.
(h) Prior to July 1, 1977, any seller seeking to charge rates in
excess of the applicable area rate or requesting a change in the
applicable area rate must file a petition for waiver or amendment of
this section pursuant to 1.7(b) of the Commission's rules of practice
and procedure ( 1.7(b) of this chapter) fully justifying the relief
sought in the light of this opinion and order. Prior to July 1, 1977,
the seller may not file any rate increase in excess of the applicable
area rate herein prescribed unless and until the Commission grants the
petition.
(35 FR 15987, Oct. 10, 1970)
0063The Hugoton fields in Kansas, Oklahoma, and Texas are limited to
the producing zones of the Chase group in the Permian system. The
Panhandle fields in Texas include the Panhandle Lime of the Wichita
group, the Herrington zone of the Chase group, the Granite Wash
formation of Permian and Pennsylvania Age, and the Red Cave formation
overlying the Wichita group.
0074In the event that it is determined by a final order, no longer
subject to judicial review, that casinghead gas in the Southern
Louisiana area shall receive the same ceiling price as gas-well gas of
comparable vintage, the ceiling prices set out hereunder for gas-well
gas produced in the Hugoton-Anadarko area and contracted for on or after
November 1, 1969, shall apply to casinghead gas contracted for on or
after November 1, 1969, prospectively from the date of such final order
in the Southern Louisiana Area Rate Proceeding.
0085For those sales certificated by Opinion 390, 29 FPC 1175, there
shall be a B.t.u. adjustment proportionately upward and downward from
1,000 B.t.u., similar to that provided in paragraph (d)(2)(iv) of the
section.
18 CFR 154.107 Area rates -- Appalachian Basin area.
(a) The Appalachian Basin area consists of the entire State of West
Virginia, and Ohio; Buchanan, Dickinson, Wise, Lee, Scott, Russell,
Tazewell, Smyth, and Washington Counties, Va.; Garrett, Allegheny and
Washington Counties, Md.; Franklin, Huntingdon, Centre, Lycoming,
Sullivan, and Susquehanna Counties, Pa., together with all Pennsylvania
counties west of this group; Broome, Chenango, Madison, Onondaga,
Cayuga, Wayne, Monroe, Orleans, and Niagara Counties in New York,
together with all New York counties to the south and west; and Clinton,
Russell, Casey, Boyle, Mercer, Woodford, Scott, Grant, and Boone
Counties, Ky., together with all Kentucky counties to the east of this
group. The boundary between northern and southern Ohio runs along the
southern edges of Van Wert, Allen, Hancock, Wyandot, Crawford, Richland,
Ashland, Wayne, Stark, and Columbian Counties. Southern Ohio includes
all counties south of the foregoing counties and northern Ohio includes
the foregoing counties and all counties north thereof.
(b) Pipeline quality gas in the Appalachian Basin is defined as gas
dehydrated, sweet, and with sufficient pressure to enter the buyers'
gathering lines.
(c) No rate or charge made, demanded or received for gas produced in
the Appalachian Basin area shall exceed the following rates measured at
14.73 p.s.i.a. and 60 F., including all additive charges and
adjustments, except in compliance with a specific order of the
Commission:
(1) 30.75 cents per Mcf for gas produced in the North subarea
consisting of applicable counties in New York, Pennsylvania and northern
Ohio, including the offshore Lake Erie and offshore Lake Ontario areas
adjacent to these states, and sold pursuant to a contract dated prior to
October 8, 1969; and 32.75 cents per Mcf for gas sold pursuant to a
contract dated after October 7, 1969;
(2) 29 cents per Mcf for gas produced in the South subarea consisting
of West Virginia and applicable counties in Maryland, Virginia, and
southern Ohio; and applicable counties in eastern Kentucky and sold
pursuant to a contract dated prior to October 8, 1969; and 30.75 cents
per Mcf for gas sold pursuant to a contract dated after October 7, 1969;
(d) A minimum rate for natural gas produced and sold to a pipeline
company, or its affiliate in the Appalachian Basin area for pipeline
quality gas is 19.25 cents per Mcf at 14.73 p.s.i.a. and 60 F.,
including all additive charges and adjustments, and contractual
provisions to the contrary are hereby modified pro tanto.
(e) Any seller seeking to charge rates in excess of the area rates
specified in paragraph (c) of this section or requesting a change in
such area rates must file a petition for waiver or amendment of this
section pursuant to 1.7(b) of this chapter of the Commission's rules of
practice and procedure fully justifying the relief sought in light of
the proceeding establishing the area rates. Unless and until the
Commission grants the petition the seller may not charge rates in excess
of the area rates herein prescribed. 6009
(Order 411, 35 FR 16082, Oct. 14, 1970, as amended by Order 411-A, 35
FR 17110, Nov. 6, 1970)
0096The area rates for the Appalachian Basin area, if shown at a
15.325 p.s.i.a. pressure base are:
18 CFR 154.108 Area rates -- Illinois Basin area.
(a) The Illinois Basin area consists of the entire State of Illinois;
all counties in western Kentucky west of and not including Clinton,
Russell, Casey, Boyle, Mercer, Woodford, Scott, Grant, and Boone
Counties; and Gibson County in Indiana.
(b) Pipeline quality gas in the Illinois Basin is defined as gas:
dehydrated, sweet, and with sufficient pressure to enter the buyers'
gathering lines.
(c) No rate or charge made, demanded or received for gas produced in
the Illinois Basin area shall exceed 23.5 cents per Mcf measured at
14.73 p.s.i.a. and 60 F., including all additive charges and
adjustments, except in compliance with a specific order of the
Commission.
(d) A minimum rate for natural gas produced and sold to a pipeline
company, or its affiliate in the Illinois Basin area for pipeline
quality gas is 16.25 cents per Mcf at 14.73 p.s.i.a. and 60 F.,
including all additive charges and adjustments, and contractual
provisions to the contrary are hereby modified pro tanto.
(e) Any seller seeking to charge rates in excess of 23.5 cents per
Mcf or requesting a change of that rate must file a petition for waiver
or amendment of this section pursuant to 1.7(b) of this chapter of the
Commission's rules of practice and procedure fully justifying the relief
sought in light of the proceeding establishing the 23.5 cents area rate.
Unless and until the Commission grants the petition the seller may not
charge rates in excess of the area rate herein prescribed. 7010
(Order 411, 35 FR 16082, Oct. 14, 1970, as amended by Order 411-A, 35
FR 17110, Nov. 11, 1970)
0107The area rates for the Illinois Basin area, if shown at a 15.025
pressure base are:
18 CFR 154.109 Area rates; Texas gulf coast area.
(a) From and after August 1, 1971, the effective date of Opinion No.
------ , Docket No. AR64-2 et al., ------ FPC ------ , and prior to
January 1, 1976, no rate or charge made, demanded or received under a
rate schedule filed pursuant to this part for gas produced in the Texas
gulf coast area shall exceed the applicable area rate prescribed by this
section except in compliance with a specific order of the Commission.
(b) Applicable area rate means the base area rate established in
paragraph (c) of this section adjusted to the extent required by
paragraph (d) of this section.
(c) The base area rates: The following base area rates per Mcf (at
14.65 p.s.i.a.) are hereby established, subject to the adjustments
provided in paragraphs (d) and (e) of this section, for gas gathered and
delivered by the seller at either a central point in the field, the
tailgate of a plant or a point on the buyer's pipeline:
(1) Gas sold under contracts dated prior to January 1, 1961:
(i) 15 cents prior to January 1, 1965.
(ii) 17 cents from January 1, 1965, to September 30, 1968.
(iii) 19 cents from October 1, 1968, to September 30, 1973.
(iv) 20 cents on and after October 1, 1973.
(2) Gas sold under contracts dated on or after January 1, 1961, and
prior to October 1, 1968:
(i) 18 cents prior to January 1, 1965.
(ii) 18.5 cents from January 1, 1965, to September 30, 1968.
(iii) 19 cents from October 1, 1968, to September 30, 1973.
(iv) 20 cents on and after October 1, 1973.
(3) Gas sold under contracts dated on or after October 1, 1968:
(i) 24 cents prior to October 1, 1973.
(ii) 25 cents on and after October 1, 1973.
(4) The applicable area rate shall be adjusted downward by 0.4 cent
per Mcf for gas delivered closer to the wellhead than a central point in
the field, the tailgate of a plant, or a point in the pipeline.
(d) Contingent escalations of area rates: From such time prior to
January 1, 1976, as the Commission determines that independent producers
shall have dedicated for sale to interstate pipelines natural gas
produced in the Texas gulf coast area, in addition to gas already
dedicated as of the effective date of this order and also in addition to
any dedications used to reduce refund obligations, in the amounts
hereafter specified, the base area rates established in paragraph (c) of
this section for gas sold under contracts prior to October 1, 1968,
shall be increased as follows:
New discoveries (as presently defined in 2.56(f)(2) of the
Commission's rules of practice and procedure) made after the date of
issuance of this order on acreage committed by a contract for sale to an
interstate pipeline shall be considered to be new dedications for the
purpose of this provision.
(e) Quality standards and adjustments to the base area rates: The
base area rates established in paragraph (c) of this section are subject
to adjustment as follows:
(1) B.t.u. adjustment: For gas with more than 1,050 B.t.u.'s per
cubic foot, at 60 F. and 14.73 p.s.i.a., upward adjustments shall be
made on a proportional basis from a base of 1,050 B.t.u.'s. For gas with
less than 1,000 B.t.u.'s per cubic foot, at 60 and 14.73 p.s.i.a,
downward adjustments shall be made on a proportional basis from a base
of 1,000 B.t.u.'s. Measurement of B.t.u. shall be on a wet basis.
(2) For gas sold under contracts dated on or after August 1, 1971,
the following additional quality standards shall apply:
(i) Water content. The gas shall not contain in the aggregate more
than 7 pounds of water, either in the form of liquid or vapor, per
million cubic feet of gas at 60 F. and 14.73 p.s.i.a. (0.007 pound per
Mcf).
(ii) Hydrogen sulphide. The gas shall not contain more than 1 grain
of hydrogen sulphide per 100 cubic feet of gas at 60 F. and 14.73
p.s.i.a. (10 grams per Mcf).
(iii) Total sulphur. The gas shall not contain more than 20 grains
of total sulphur per 100 cubic feet of gas at 60 F. and 14.73 p.s.i.a.
(200 grams per Mcf).
(iv) Carbon dioxide. The gas shall not contain more than 3 percent
by volume of carbon dioxide.
(v) Other impurities. The gas shall contain no oxygen, dust, dirt,
gum, or other impurity in sufficient amounts to require the buyer to
incur processing costs to eliminate such impurities in order for the gas
to meet either customary commercial standards or the customary
requirements of any of the interstate pipelines in the area.
(vi) Delivery pressure. The gas shall be delivered at a pressure
sufficient to enter the buyer's pipeline except that a minimum of 500
p.s.i.g. must be available at the point of delivery.
(3) When a purchaser under contract dated on or after August 1, 1971,
buys gas which deviates from the quality standard established in
paragraph (e)(2) of this section the base area rate shall be adjusted
for any deviations from such standards as follows:
(i) The applicable area rate shall be adjusted downward by the net
cost, actually incurred prior to ultimate consumption, of processing the
gas to bring it up to standard.
(a) If the processing is performed by the purchaser, a reasonable
return upon the net investment should be included as part of the
processing cost incurred in bringing the gas up to pipeline quality.
(b) If such processing reduces the volume of the gas, the purchaser
shall pay for only the volume remaining after processing.
(ii) In the case of delivery by seller of gas containing carbon
dioxide in excess of the standards herein permitted, notwithstanding
anything to the contrary in paragraph (e)(2)(iv) of this section, the
producers shall have the alternative of receiving payment for the total
volume of gas delivered, including the carbon dioxide, providing that
the B.t.u. content of the gas is measured before the removal of the
carbon dioxide for the purposes of the B.t.u. adjustments specified in
this order, or receiving payment for the volumes exclusive of the carbon
dioxide with the B.t.u. measured by the volumes of gas only.
(f) Prior to January 1, 1976, any seller seeking to charge a rate in
excess of the applicable area rate or requesting a change in the
applicable area rate must file a petition for waiver or amendment of
this section pursuant to 1.7(b) of the Commission's rules of practice
and procedure (18 CFR 1.7(b)) fully justifying the relief sought in the
light of this opinion and order. Prior to January 1, 1976, the seller
may not file any rate increase in excess of the applicable area rate
herein prescribed unless and until the Commission grants the petition.
(36 FR 11579, June 16, 1971)
18 CFR 154.109a Area rates -- Other Southwest area.
(a) From and after January 1, 1972, and prior to July 1, 1976, no
rate or charge made, demanded, or received under a rate schedule filed
pursuant to this part for gas produced in the Other Southwest Area shall
exceed the applicable area rate prescribed by this section except in
compliance with a specific order of the Commission.
(b) Applicable area rate means the base area rate established in
paragraph (c) of this section adjusted to the extent required by
paragraph (d) of this section.
(c) The base area rates: The following base area rates per Mcf (at
14.65 p.s.i.a. unless otherwise noted) are hereby established for the
period from January 1, 1972, to July 1, 1976, subject to the adjustments
provided in paragraph (d) of this section, for gas gathered and
delivered by the seller at either a central point in the field, the
tailgate of a plant or point on the buyer's pipeline, or an offshore
platform to the buyer's line, by the following:
(1) Gas sold under contracts dated prior to October 1, 1968:
(2) Gas sold under contracts dated on or after October 1, 1968:
(3) The applicable area rate shall be adjusted downward, for gas
delivered closer to the wellhead than a central point in the field, the
tailgate of a plant, a point on the buyer's pipeline or an offshore
platform on the buyer's line by the following:
(4) Notwithstanding the provisions of paragraphs (c)(1), (2), and (3)
of this section, the base area rates for gas produced on or after
November 1, 1969, from a new reservoir on previously committed acreage
shall be determined by utilizing the date of discovery of such reservoir
in lieu of the contract date.
(d) Quality standards and adjustments to the base area rates. The
base area rates established in paragraph (c) of this section are subject
to adjustment as follows:
(1) B.t.u. adjustment: For gas with more than the maximum standard
of B.t.u.'s per cubic foot, at 60 F. and 14.73 p.s.i.a., upward
adjustments shall be made on a proportional basis from a base equal to
the maximum standard. For gas with less than the minimum standard of
B.t.u.'s per cubic foot, at 60 F. and 14.73 p.s.i.a., downward
adjustments shall be made on a proportional basis from a base equal to
the minimum standard. Measurement of B.t.u. shall be on a wet basis.
The applicable maximum and minimum standards are:
(2) The following additional quality standards shall apply:
(i) Water content. The gas shall not contain in the aggregate more
than 7 pounds of water, either in the form of liquid or vapor, per
million cubic feet of gas at 60 F. and 14.73 p.s.i.a. (0.007 lbs. per
Mcf).
(ii) Hydrogen sulphide. The gas shall not contain more than 1 grain
of hydrogen sulphide per 100 cubic feet of gas at 60 F. and 14.73
p.s.i.a. (10 gr. per Mcf).
(iii) Total sulphur. The gas shall not contain more than 20 grains
of total sulphur per 100 cubic feet of gas at 60 F. and 14.73 p.s.i.a.
(200 gr. per Mcf).
(iv) Carbon dioxide. The gas shall not contain more than 3 percent
by volume of carbon dioxide.
(v) Other impurities. The gas shall contain no oxygen, dust, dirt,
gum, or other impurity in sufficient amounts to require the buyer to
incur processing costs to eliminate such impurities in order for the gas
to meet either customary commercial standards or the customary
requirements of any of the interstate pipelines in the area.
(vi) Delivery pressure. The gas shall be delivered at a pressure
sufficient to enter the buyer's pipeline except that a minimum of 500
p.s.i.g. must be available at the point of delivery.
(3) When a purchaser buys gas which deviates from the quality
standard established in paragraph (d)(2) of this section, the base area
rate shall be adjusted for any deviations from such standards as
follows:
(i) The applicable area rate shall be adjusted downward by the net
cost, actually incurred prior to ultimate consumption, of processing the
gas to bring it up to standard.
(a) If the processing is performed by the purchaser, a reasonable
return upon the net investment should be included as part of the
processing cost incurred in bringing the gas up to pipeline quality.
(b) If such processing reduces the volume of the gas, the purchaser
shall pay for only the volume remaining after processing.
(ii) In the case of delivery by seller of gas containing carbon
dioxide in excess of the standards herein permitted, notwithstanding
anything to the contrary in paragraph (d)(2)(iv) of this section, the
producers shall have the alternative of receiving payment for the total
volume of gas delivered, including the carbon dioxide, providing that
the B.t.u. content of the gas is measured before the removal of the
carbon dioxide for the purposes of the B.t.u. adjustments specified in
this order, or receiving payment for the volumes exclusive of the carbon
dioxide with the B.t.u. measured by the volumes of gas only.
(e) Prior to July 1, 1976, any seller seeking to charge a rate in
excess of the applicable area rate or requesting a change in the
applicable area rate must file a petition for waiver or amendment of
this section pursuant to 1.7(b) of the Commission's rules of practice
and procedure in this chapter (18 CFR 1.7(b)) fully justifying the
relief sought in the light of this opinion and order. Prior to July 1,
1976, the seller may not file any rate increase in excess of the
applicable area rate herein prescribed unless and until the Commission
grants the petition.
(36 FR 22675, Nov. 27, 1971, as amended by Opinion 607-A, 37 FR 5940,
Mar. 23, 1972)
18 CFR 154.109b Area rates -- Rocky Mountain area.
(a) The Rocky Mountain area consists of the following production sub-
areas: Aneth Field Subarea -- Includes that part of San Juan County,
Utah, lying within T. 39 through 43 S., R. 18 through 26E. and T. 38
S., R. 20 and 21E.; and that part of Apache County, Arizona, lying
within T. 41N., R. 28E., 29E., 30., and 31E.; San Juan Basin Subarea --
Consists of San Juan, Rio Arriba, McKinley and Sandoval Counties, New
Mexico; and Montezuma, La Plata, Archuleta, Mineral, Hinsdale, San
Juan, Dolores, San Miguel, Ouray and Montrose Counties, Colorado;
Uinta-Green River Basin Subarea -- Includes Albany, Carbon, Sweetwater,
Sublette, Lincoln and Uinta Counties, Wyoming; Summit, Daggett, Uinta,
Duchesne, Wasatch, Carbon, Emery and Grand Counties, Utah; and Mesa,
Garfield, Rio Blanco, Moffat and Routt Counties, Colorado;
Colorado-Julesburg Basin Subarea -- Consists of the remaining Colorado
counties; Platte, Laramie and Goshen Counties, Wyoming; and Kimball,
Cheyenne, Deuel, Garden, Morrill, Banner, Scotts Bluff, Sioux, Box
Butte, Dawes and Sheridan Counties, Nebraska; Montana-Wyoming Subarea
-- Includes the remaining counties in Wyoming and Park, Sweet Grass,
Stillwater, Carbon, Big Horn, Yellowstone, Treasure, Rosebud and Powder
River Counties, Montana; and Montana-Dakota Subarea -- Consists of the
entire State of North Dakota; Harding, Perkins and Butte Counties,
South Dakota; and Glacier, Pondera, Teton, Cascade, Meagher, Wheatland,
Golden Valley, Musselshell, Garfield, Custer and Carter Counties,
Montana, together with the remaining Montana counties lying north and
east of the counties listed.
(b) No rate or charge made, demanded or received under a rate
schedule filed pursuant to this part for gas produced in the Rocky
Mountain area shall exceed the following rate measured at 14.73 lb/in2a
and 60 F, but shall be subject to British thermal units adjustments
below 1,000 Btu and above 1,050 Btu excluding States production or
severance taxes or charges
24.0c/M ft3 for gas produced in the Rocky Mountain area and sold
under contracts dated prior to October 1, 1968, and produced from wells
commenced on or before December 31, 1972.
(c) A minimum rate for natural gas produced and sold in the Rocky
Mountain area is 15c/M ft3 at 14.73 lb/in2a and 60 F, subject to
British thermal units adjustments, below 1,000 Btu and above 1,050 Btu,
including all additive charges and adjustments and State production
taxes, and increases to such minimum rate filed after the date of this
order will be granted notwithstanding contractual provisions to the
contrary which are hereby modified pro tanto.
(d) No rate or charge, made, demanded, or received under a rate
schedule filed pursuant to this part for gas produced in the Rocky
Mountain Area shall exceed 35.0 cents per Mcf measured at 14.73 psia and
60 F, subject to adjustment upward and downward Btu adjustment on a
proportional basis from a base Btu content of 1,000 Btu's per cubic foot
measured on a saturated basis, and exclusive of all State or Federal
production, severance, or similar taxes, and sold under contracts dated
on or after October 1, 1968, for wells commenced prior to January 1,
1973. This rate shall also be subject to a gathering allowance not to
exceed 1.0 cent per Mcf where delivery is made to the buyer at a central
point in the field, the tailgate of a processing plant, or a point on
the buyer's pipeline.
(Opinion No. 658, 38 FR 9810, Apr. 20, 1973, as amended by Opinion
No. 699-H, 39 FR 43215, Dec. 11, 1974)
18 CFR 154.110 Applicability of 154.92 through 154.102.
Sections 154.92 through 154.102 shall apply only to those persons
specified in 154.91 and shall not apply to small producer sales which
are exempted under 157.40 of this chapter.
(Order 428, 36 FR 5601, Mar. 25, 1971)
18 CFR 154.111 Limitations on provisions in rate schedules and tariffs.
(a) Limitations. (1) Effective July 31, 1984, any pipeline rate
schedule or tariff governing the sale of natural gas shall be
inoperative and of no effect at law to the extent it provides for
recovery of purchased gas costs for gas not taken by the buyer.
(2) No rate schedule or tariff governing the sale of natural gas and
filed on or after July 31, 1984 may provide for recovery of variable
costs associated with gas not taken by the buyer.
(3)(i) Any pipeline rate schedule or tariff governing the sale of
natural gas that either (A) was in effect on July 31, 1984 or (B) was
filed after that date but prior to September 14, 1984 and does not state
purchased gas costs separately from other charges shall be restated to
state such costs separately and filed on or prior to September 14, 1984,
and
(ii) Any pipeline rate schedule or tariff governing the sale of
natural gas and filed on or after September 14, 1984, shall state
purchased gas costs separately from other charges.
(b) Definition. For purposes of this section, the term ''purchased
gas costs'' means the cost of purchased gas, compressor fuel gas, and
line loss or shrinkage gas.
(Order 380, 49 FR 22792, June 1, 1984)
Editorial Note: For a document relating to clarification that
154.111 ''bars downstream pipelines from using their own minimum
commodity bill tariff provisions to pass through such upstream pipeline
charges,'' see 51 FR 23530, June 30, 1986.
18 CFR 154.111 Recovery of Alaska Natural Gas Transportation System
Charges
Source: Sections 154.201 through 154.213 appear by Order 320, 48 FR
34458, July 29, 1983, unless otherwise noted.
18 CFR 154.201 Applicability.
Sections 154.202 through 154.213 apply to a shipper seeking to
recover charges incurred for the conditioning and transportation of
Alaska natural gas through the Alaska Natural Gas Transportation System
for sale in the contiguous 48 states of the United States. These
sections also supply to a shipper seeking to recover charges incurred
for the conditioning and transportation of Alaska natural gas through
the Alaska Natural Gas Transportation System for sale in Alaska, to the
extent that such sale is within the Commission's jurisdiction.
18 CFR 154.202 Definitions.
For purposes of 154.203 through 154.213:
(a) Alaska natural gas has the same meaning as in section 4(1) of the
Alaska Natural Gas Transportation Act, 15 U.S.C. 719(4)(1): Natural gas
derived from the area of the State of Alsaka generally known as the
North Slope of Alaska, including the Continental Shelf of the North
Slope of Alaska.
(b) Alaska Natural Gas Transportation System (ANGTS) means the gas
conditioning facility at Prudhoe Bay, Alaska, for the conditioning of
Alaska natural gas (''Gas Conditioning Plant Segment'') and the pipeline
system for the transportation of Alaska natural gas from the Prudhoe Bay
area of Northern Alaska through Alaska (''Alaskan Pipeline Segment'')
and Canada (''Canadian Pipeline Segment'') into the Midwestern
(''Eastern Leg'') and Western (''Western Leg'') sections of the
contiguous 48 states of the United States,
(1) As designated for approval in the Decision and Report to Congress
on the Alaska Natural Gas Transportation System (Executive Office of the
President, Energy Policy and Planning, September 1977) (''President's
Decision''), approved by Joint Resolution of Congress, H.J. Res. 621,
Pub. L. 95-158, 91 Stat. 1268 (1977), and
(2) As further designated in the President's Findings and Proposed
Waiver of Law (October 15, 1981) (''President's Waiver''), approved by
Joint Resolution of Congress, S.J. Res. 115, Pub. L. 97-93, 95 Stat.
1204 (1981).
(c) ANGTS charges means amounts billed by the project sponsors to a
shipper that are properly attributable to the construction and operation
of the ANGTS for the conditioning and transportation of Alaska natural
gas.
(d) ANGTS Charges Recovery Clause (''ACR Clause'') means a clause
incorporated in a shipper's FERC Gas Tariff that sets forth the terms
and conditions for recovering ANGTS charges.
(e) Base Tarriff Rate means the effective rate on file with the
Commission, excluding adjustments, pursuant to a shipper's ACR clause.
(f) Cost-of-service tariff means a tariff under which a shipper's
ANGTS charges to its customers are based on a formula set forth in that
shipper's tariff by which the shipper recovers its ANGTS costs
substantially concurrently as they are incurred.
(g) Federal Inspector means the Office of the Federal Inspector,
which is responsible for monitoring the construction of the ANGTS and
for coordinating the issuance of permits and certification for the ANGTS
by all federal agencies.
(h) Jurisdictional portion means that portion of the ANGTS charges
that are properly attributable to a shipper's jurisdictional services,
as determined pursuant to the shipper's ACR Clause and approved by the
Commission.
(i) National Energy Board (NEB) means the National Energy Board of
Canada established by the National Energy Board Act, Can. Rev. Stat.
c. N-6 (1970).
(j) Project sponsors means the owners and operators of the ANGTS, or
their successors, as designated for the Gas Conditioning Plant Segment,
the Alaskan Pipeline Segment, the Western Leg and the Eastern Leg in the
President's Decision, as modified by the President's Waiver, and as
designated for the Canadian Pipeline Segment in the Northern Pipeline
Act of 1978, 26-27 Eliz. II, c. 20.
(k) Shipper means a person who has an executed service agreement with
one or a combination of the project sponsors for the conditioning and
transportation of Alaska natural gas through the ANGTS.
(l) Track means to flow through to a shipper's jurisdictional
customers the jurisdictional portion of ANGTS charges incurred by the
shipper.
18 CFR 154.203 Recoverable ANGTS charges.
(a) A shipper's rates shall reflect only the jurisdictional portion
of the shipper's ANGTS charges that are prudently incurred. The
Commission will deem ANGTS charges prudently incurred if:
(1) Such charges from the Gas Conditioning Plant Segment, the Alaska
Pipeline Segment, the Eastern Leg and the Western Leg are properly
computed pursuant to tariffs approved by the Commission; and
(2) Such charges from the Canadian Pipeline Segment are:
(i) Properly computed pursuant to tariffs approved by the NEB, and
(ii) Consistent with the provisions of the Agreement between the
Government of the United States and the Government of Canada Concerning
Transit Pipelines, 28 U.S.T. 7449, T.I.A.S. No. 8720 (Transit Pipeline
Treaty) and the Agreement between the United States of America and
Canada on Principles Applicable to a Northern Natural Gas Pipeline
(Agreement on Principles), incorporated in the President's Decision.
(b) A shipper shall provide the Commission with a certified copy of
any tariff or any modifications or changes to any tariff approved by the
NEB relating to any ANGTS charges from the Canadian Pipeline Segment
that are reflected in the shipper's rates. A shipper shall provide the
certified copy of any such NEB-approved tariff the first time that the
shipper proposes rates reflecting ANGTS charges from the Canadian
Pipeline Segment, and thereafter shall provide the certified copy of any
modifications or changes to such tariff when the shipper makes any rate
filings with the Commission involving ANGTS charges from the Canadian
Pipeline Segment.
(c) If a shipper's rates reflect ANGTS charges that satisfy the
condition prescribed in paragraph (a)(2)(i) of this section, the
Commission will presume that such charges also satisfy the condition
prescribed in paragraph (a)(2) (ii) of this section, unless the
reflection of such charges in the shipper's rates is challenged in a
timely manner in accordance with the Commission's Revised Rules of
Practice and Procedure.
(d) The Commission will not disallow any ANGTS charges from the
Canadian Pipeline Segment in a shipper's rates, or order any refund of
such ANGTS charges, on the basis that such charges do not satisfy the
conditions prescribed in paragraphs (a)(2)(i) and (a)(2)(ii) of this
section, unless and until the matter has been resolved through:
(1) Consultation with the NEB pursuant to the provisions of Paragraph
9 of the Agreement on Principles, and thereafter, if necessary,
(2) Diplomatic negotiation and, if necessary, arbitration pursuant to
the provisions of Article IX of the Transit Pipeline Treaty.
18 CFR 154.204 General rule.
A shipper may recover the jurisdictional portion of its ANGTS charges
incurred prior to the delivery of Alaska natural gas by adjusting its
rates pursuant to filings prescribed in 154.206 of this chapter or
pursuant to a cost-of-service tariff approved by the Commission. After
delivery of Alaska natural gas commences, a shipper may track changes in
the jurisdictional portion of its ANGTS charges pursuant to filings
prescribed in 154.208 of this chapter, provided the shipper first makes
a filing pursuant to 154.207 of this chapter to establish a Base Tariff
Rate and periodically restates its Base Tariff Rate pursuant to filings
prescribed in 154.209 of this chapter. In the alternative, after
delivery of Alaska natural gas commences, a shipper may recover ANGTS
charges and track changes in these charges pursuant to a cost-of-service
tariff approved by the Commission as appropriate under the circumstances
or through general rate change filings under section 4 of the Natural
Gas Act. If a shipper chooses to track changes in the jurisdictional
portion of its ANGTS charges, the shipper shall continue to track until
the shipper elects, pursuant to 154.213 of this chapter, to recover
such charges through general rate change filings under section 4 of the
Natural Gas Act, or until the Commission approves a cost-of-service
tariff. Any election to discontinue tracking or to discontinue a
cost-of-service tariff shall be subject to approval by the Commission.
18 CFR 154.205 ACR clause requirements.
A shipper may recover ANGTS charges pursuant to 154.206 of this
chapter and track changes in its ANGTS charges pursuant to 154.208 of
this chapter if the shipper has filed with the Commission an ACR Clause
and the Commission has approved the ACR Clause. The Commission will
consider approving a proposed ACR Clause if that clause sets forth
provisions for implementing the requirements and procedures specified in
154.206 through 154.213 of this chapter. As an alternative, a shipper
may propose for Commission approval the use of a cost-of-service tariff
to recover ANGTS charges and track changes in those charges. A shipper
may file its proposed ACR Clause or alternative proposal at any time
after the effective date of this final rule.
18 CFR 154.206 Filing to recover ANGTS charges incurred prior to
delivery of Alaska natural gas.
(a) General rule. In the event and to the extent the Commission
and/or the NEB approves the billing of ANGTS charges by the project
sponsors within their respective jurisdictions prior to the commencement
of delivery of Alaska natural gas (''pre-delivery ANGTS charges''), a
shipper may recover the jurisdictional portion of such charges upon
incurrence by adjusting its rate(s) pursuant to filings made in
accordance with the terms and conditions of this section and the
shipper's approved ACR Clause; Provided, however, That recovery of
pre-delivery ANGTS charges from the Canadian Pipeline Segment may
commence only upon completion and testing of that segment, so that it is
proved capable of operation, and not before a date certain, as
determined (in consultation with the Federal Inspector) by the
Commission in issuing a final certificate for the ANGTS to be the most
likely date for the entire ANGTS to begin operation, within the meaning
of the President's Waiver.
(b) Terms and conditions. (1) A shipper shall file any rate
adjustment to recover the jurisdictional portion of pre-delivery ANGTS
charges as follows:
(i) It may file any such adjustment at the same time it files its
annual purchased gas adjustment pursuant to 154.305 and its quarterly
purchased gas adjustment which becomes effective 6 months from the
effective date of the annual purchased gas adjustment pursuant to
154.308. By so doing the shippers will file to recover ANGTS charges on
a semi-annual basis; or
(ii) It may file any such adjustment on other semi-annual dates set
forth in its ACR clause, if the Commission approves the ACR clause. The
shipper must continue filing on these dates until the Commission orders
otherwise.
(2) At a shipper's first scheduled PGA filing following the initial
incurrence of pre-delivery ANGTS charges, or on the first date set forth
in the shipper's ACR Clause and approved by the Commission under
paragraph (b)(1)(ii) of this section, the shipper shall adjust its
existing tariff rates to include a current adjustment to recover
projected pre-delivery ANGTS charges, if any, and a surcharge to recover
the amounts which have accumulated in the Unrecovered Pre-delivery ANGTS
Charges Account, which is described in paragraph (b)(5) of this section.
(3) At each succeeding PGA filing or other ANGTS tracking filing date
approved by the Commission under paragraph (b)(1)(ii) of this section
and until that filing immediately following the effective date of the
Base Tariff Rate established pursuant to a filing prescribed in 154.207
of this chapter, a shipper shall adjust its existing tariff rates to
recover projected pre-delivery ANGTS charges and a surcharge to recover
or return the amounts which have accumulated in the Unrecovered
Pre-delivery ANGTS Charges Account.
(4)(i) A shipper shall calculate and recover the current adjustment
and the surcharge using the procedures set forth in the shipper's
approved ACR Clause.
(iii) A shipper shall use the cost classification methodology set
forth in its approved ACR Clause in accordance with 154.207(c) of this
chapter.
(5) A shipper shall maintain separate subaccounts for pre-delivery
ANGTS charges and unrecovered pre-delivery ANGTS charges as specified in
the following procedures. A shipper shall:
(i) Record the portion of the pre-delivery ANGTS charges to be
recovered from jurisdictional sales customers in a separate subaccount
of Account No. 858, Transmission and Compression of Gas by Others (18
CFR part 201) designated as the ''Pre-delivery ANGTS Charges Account.''
(ii)(A) Credit or debit, as appropriate, no less than monthly, the
Pre-delivery ANGTS Charges Account with the pre-delivery ANGTS charges
incurred for the period, recoverable from jurisdictional customers, that
are in excess of or less than the applicable amounts recovered during
the period through the application of approved rate schedules, and
(B) Debit or credit, as appropriate, a separate subaccount of Account
No. 186, Miscellaneous Deferred Debits (18 CFR part 201), designated as
the ''Unrecovered Pre-delivery ANGTS Charges Account.'' Separate
subaccounts of the Unrecovered Pre-delivery ANGTS Charges Account shall
be maintained for each six-month period in which excesses or
deficiencies are recorded.
(iii) Amortize to the Pre-Delivery ANGTS Charges Account, over the
appropriate six-month period, the amounts, either positive or negative,
including carrying charges, accumulated in the Unrecovered Pre-delivery
ANGTS Charges Account coincidental with the recovery or return, as
applicable, of such amounts through the application of an approved
surcharge.
(iv) Carry forward to the next succeeding surcharge period any
remaining balance in the Unrecovered Pre-delivery ANGTS Charges Account
for recovery or return, as applicable, in that period.
(v) Adopt the principles of interperiod income tax allocation
applicable to the amounts deferred in the Unrecovered Pre-delivery ANGTS
Charges Account by deferring the appropriate tax effect of such amounts
in Account 190, Accumulated Deferred Income Taxes (18 CFR part 201) or
Account 283, Accumulated Deferred Income Taxes -- Other (18 CFR part
201), as applicable.
(6) A shipper shall compute carrying charges on amounts deferred in
the Unrecovered Pre-delivery ANGTS Charges Account in the manner and at
the rate prescribed in section 154.208(f) of this chapter.
(7) A shipper shall follow the same posting, service and verification
requirements prescribed in 154.208(g) of this chapter.
(8) Upon the commencement of delivery of Alaska natural gas through
the ANGTS and the commencement of accounting for ANGTS charges
associated with the delivery of Alaska natural gas, a shipper shall
transfer any balances remaining in the Unrecovered Pre-delivery ANGTS
Charges Account to a separate subaccount of Account No. 186,
Miscellaneous Deferred Debits (18 CFR part 201), designated as the
''Unrecovered ANGTS Charges Account'', described in 154.208(e) of this
chapter.
(9) Suspension period. In any rate adjustment filing made by a
shipper to recover, pursuant to its approved ACR Clause or
cost-of-service tariff, the jurisdictional portion of its pre-delivery
ANGTS charges, the Commission will not suspend the portion of the
shipper's adjusted rate(s) attributable to such changes for more than
one day after the approved effective dates of the shipper's semi-annual
rate adjustments.
(Order 320, 48 FR 34458, July 29, 1983, as amended by Order 483, 52
FR 43880, Nov. 17, 1987)
18 CFR 154.207 Initial filing to recover ANGTS charges associated with
the delivery of Alaska natural gas.
(a) General rule. No more than six months and no less than 30 days
prior to the time a shipper can reasonably anticipate the incurrence of
ANGTS charges associated with the actual delivery of Alaska natural gas,
the shipper shall file to establish a Base Tariff Rate which reflects
the inclusion of the jurisdictional portion of such charges in its rates
by making a general rate change filing pursuant to section 4(e) of the
Natural Gas Act and 154.63 of this chapter. A shipper shall include in
this filing all costs, volumes and revenues associated with the ANGTS
and the introduction of Alaska natural gas into its total gas supply.
(b) Suspension. If the sole basis for the suspension of a shipper's
proposed rate(s) in the proceeding described in this paragraph is a
challenge of the rate(s) pursuant to 154.203(a)(2) of this chapter,
such that absent the challenge the rate(s) would not be suspended, the
Commission will not suspend the rate(s) for more than one day after the
proposed effective date of the rate(s).
(c) Cost classification. In its ACR Clause, a shipper may classify
up to 100 percent of the jurisdictional portion of its ANGTS charges as
demand. A shipper shall classify the jurisdictional portion of its
ANGTS charges into the demand component of its two-part,
demand-commodity rates and into its one-part commodity rates in
accordance with the formula set forth in that shipper's ACR Clause
approved by the Commission. In any filing to adjust rates to track
changes in the jurisdictional portion of its ANGTS charges, as
prescribed in 154.208 of this chapter, a shipper shall use this formula
until the Commission approves a new methodology, at the shipper's
request.
(d) Cost allocation. A shipper shall allocate its ANGTS charges
between its jurisdictional and non-jurisdictional services on the basis
of the jurisdictional allocation factor(s) approved by the Commission
pursuant to the filing prescribed in paragraph (a) of this section. In
any filing to adjust rates to track changes in the jurisdictional
portion of its ANGTS charges, as prescribed in 154.208 of this chapter,
a shipper shall use such allocation factor(s) until the Commission
approves a new allocation factor(s) at the shipper's request.
18 CFR 154.208 Filing to track changes in ANGTS charges.
(a) General rule. Following the effective date of its Base Tariff
Rate established pursuant to the filing described in 154.207(a) of this
chapter, a shipper may adjust its rates positively and must adjust its
rates negatively to track changes in the jurisdictional portion of its
ANGTS charges and shall include a surcharge in its adjusted rates to
recover or return amounts accumulated in the ''Unrecovered ANGTS
Account,'' described in paragraph (e) of this section, during the
preceding six-month accounting period. A shipper shall follow this
procedure in each succeeding rate adjustment filing to track changes in
the jurisdictional portion of its ANGTS charges.
(b) Timing. A shipper shall file any rate adjustment to track
changes in the jurisdictional portion of its ANGTS charges as follows:
(1) It may coincide the proposed effective date of such rate
adjustments with the proposed effective date of the shipper's rate
adjustments for changes in purchased gas costs (''PGA'') pursuant to
154.305 or 154.308 as designated in 154.206(b)(1)(i); or
(2) It may state in its ACR Clause that it will file on any other
semi-annual dates. If the Commission approves this provision in the ACR
Clause, pursuant to 154.205 of this chapter, the shipper shall file to
adjust its rates on these dates. The shipper must continue filing on
these dates until the Commission orders otherwise.
(c) Separate computation. A shipper shall compute rate adjustments
separately for each of the project segments, and shall use the net sum
of such separately computed rate adjustments to track changes in the
jurisdictional portion of its ANGTS charges.
(d) Threshold amount. A shipper shall adjust it rates to track
changes in the jurisdictional portion of its ANGTS charges only if such
rate adjustment equals or exceeds a level (either a stated dollar amount
or a rate adjustment amount) specified in the shipper's approved ACR
Clause.
(e) Accounting procedures. A shipper shall maintain separate
subaccounts for ANGTS charges and unrecovered ANGTS charges as specified
in the following procedures. A shipper shall:
(1) Record the portion of the ANGTS charges to be recovered from
jurisdictional sales customers in a separate subaccount of Account No.
858, Transmission and Compression of Gas by Others (18 CFR part 201)
designated as the ''ANGTS Charges Account.''
(2)(i) Credit or debit, as appropriate, no less than monthly, the
ANGTS Charges Account with the ANGTS charges incurred for the period,
recoverable from jurisdictional customers, that are in excess of, or
less than, the applicable amounts recovered during the period through
the application of approved rate schedules and,
(ii) Debit or credit, as appropriate, a separate subaccount of
Account No. 186, Miscellaneous Deferred Debits (18 CFR part 201),
designated as the ''Unrecovered ANGTS Charges Account.'' Separate
subaccounts of the Unrecovered ANGTS Charges Account shall be maintained
for each six-month period in which excesses or deficiencies are
recorded.
(3) Amortize to the ANGTS Charges Account, over the appropriate
six-month period, the amounts, either positive or negative, including
carrying charges, accumulated in the Unrecovered ANGTS Charges Account
coincidental with the recovery or return, as applicable, of such amounts
through application of an approved surcharge.
(4) Carry forward to the next succeeding surcharge period any
remaining balance in the Unrecovered ANGTS Charges Account for recovery
or return, as applicable, in that period.
(5) Adopt the principles of interperiod income tax allocation
applicable to the amounts deferred in the Unrecovered ANGTS Charges
Account by deferring the applicable tax effect of the amounts recorded
in the Unrecovered ANGTS Charges Account in Account 190, Accumulated
Deferred Income Taxes (18 CFR part 201) or Account 283, Accumulated
Deferred Income Taxes -- Other (18 CFR part 201), as appropriate.
(f) Carrying charges. A shipper shall compute carrying charges
monthly based on the average daily balances properly recorded in the
Unrecovered ANGTS Charges Account, net of the related amounts in the
applicable deferred income tax accounts (Account No. 190 or Account No.
283). The rate for computation of carrying charges shall be the current
rate of interest on pipeline refunds set forth in 154.67(d)(2)(iii)(A)
of this chapter, with interest compounded in the manner set forth in
154.67(d)(2)(iii)(B) of this chapter. Monthly, a shipper shall debit
carrying charges to the Unrecovered ANGTS Charges Account if the average
daily balance for the month in that account is positive, and shall
credit carrying charges to the Unrecovered ANGTS Charges Account if the
average daily balance for the month in that account is negative.
(g) Posting, verification and service requirements. At least 30 days
prior to the proposed effective date of any rate adjustment to track
changes in the jurisdictional portion of the ANGTS charges, a shipper
shall file with the Commission and post pursuant to 154.16 of this
chapter a tariff sheet(s) containing the information required in
154.33(d) of this chapter and including separate columns that show the
current adjustment, cumulative adjustment and current surcharge for
ANGTS charges. Simultaneously with this posting, a shipper shall file
with the Commission a report containing detailed computations that
clearly show the derivation of the current adjustment and the surcharge
to be applied to the shipper's existing rate(s). A shipper shall
furnish such report to its jurisdictional customers and interested state
and local regulatory agencies at the same time the shipper files the
report with the Commission.
(h) Suspension period. In any rate adjustment filing made by a
shipper pursuant to its approved ACR Clause or cost-of-service tariff to
track changes in the jurisdictional portion of its ANGTS charges, the
Commission will not suspend the portion of the shipper's adjusted
rate(s) attributable to such changes for more than one day after the
approved effective dates of the shipper's simi-annual rate adjustment.
(Order 320, 48 FR 34458, July 29, 1983, as amended by Order 483, 52
FR 43880, Nov. 17, 1987)
18 CFR 154.209 Filing to restate base tariff rate.
(a) General rule. (1) At least 30 days prior to the expiration of 36
months after the effective date of any previously approved Base Tariff
Rate (36-month anniversary date), a shipper shall file a tariff sheet(s)
restating its Base Tariff Rate and file a cost-and-revenue study in the
form and with the content prescribed by 154.63 of this chapter, except
Statements O and P, to support the restated Base Tariff Rate. This
study shall be based on actual costs for the twelve months of most
recently available experience, provided that such 12-month period ends
not more than 4 months prior to the expiration of the 36-month period.
Annualization for changes which actually occurred in the 12 months will
be permitted.
(2) If, before the expiration of the 36-month period, a shipper makes
a general rate change filing under section 4(e) of the Natural Gas Act
to establish a new Base Tariff Rate or establishes a new Base Tariff
Rate pursuant to 154.310 of this chapter, or the Commission initiates a
proceeding under section 5(a) of the Natural Gas Act in which a new Base
Tariff Rate is established, a new 36-month period will commence when the
Base Tariff Rate established in any of these proceedings becomes
effective.
(b) Use of study from another rate proceeding. If a shipper has a
section 5(a) case pending issuance of a final order or has made a
section 4(e) general rate change filing for which the proposed rates
would not become effective before termination of the 36-month period,
the shipper may propose for Commission approval a study from either
proceeding to satisfy the requirements of paragraph (a)(1) of this
section, if:
(1) That study has a test period ending less than 12 months prior to
the 36-month anniversary date; and
(2) That study includes, or is adjusted to include, the effects of
volumes and revenues attributable to ANGTS as well as ANGTS charges.
(c) Service requirement. A shipper shall serve the study filed with
the Commission to support the restatement of its Base Tariff Rate on its
jurisdictional customers and interested state and local regulatory
agencies at the same time as it files the study with the Commission. If
the restatement involves a change in the tariff, the shipper shall post
the tariff under 154.16 of this chapter.
(d) Refunds -- (1) ACR Clause requirement. A shipper shall state its
agreement that its restated Base Tariff Rate will automatically be
subject to refund from the date the rate(s) proposed in that filing is
permitted by the Commission to become effective until the date that rate
becomes effective pursuant to a Commission final order approving that
shipper's proposed new Base Tariff Rate or requiring a different new
Base Tariff Rate.
(2) Refund obligation. If as a result of conferences among the
shipper, its jurisdictional customers, interested state and local
regulatory agencies, and the Commission staff, or as a result of
Commission determination after hearing, the Commission finds that on the
basis of the study prescribed in paragraph (a)(1) of this section, the
jurisdictional cost of service is less than the jurisdictional revenues
collected, the shipper shall file with the Commission a revised tariff
sheet(s) reflecting jurisdictional rates based on the jurisdictional
cost-of-service agreed to by the shipper, affected parties, and the
Commission staff, or determined by the Commission. The shipper shall
also refund with interest to its jurisdictional customers any amounts
collected subject to refund in excess of those amounts which would have
been collected pursuant to rates based upon the jurisdictional
cost-of-service agreed to by the shipper, affected parties, and the
Commission staff; or, alternatively, the jurisdictional cost-of-service
prescribed by the Commission to the date of billing under the revised
tariff sheet(s). This refund obligation shall be limited to the amount
collected in excess of the previously established Base Tariff Rate.
Rate reductions, if any, below the previously established Base Tariff
Rate shall be prospective from the date of the Commission's final order
approving an agreement in regard to or determining a new Base Tariff
Rate.
(3) Refund procedure. A shipper shall make any refund determined to
be owed to the shipper's jurisdictional coustomers according to the
manner, timing, reporting requirements and threshold amounts specified
in its approved ACR Clause.
(4) Computation of interest on refunds. A shipper shall compute
interest on any refund determined to be owed to the shipper's
jurisdictional customers in the manner and at the rate prescribed in
154.208(f) of this chapter.
(Order 320, 48 FR 34458, July 29, 1983, as amended by Order 483, 52
FR 43880, Nov. 17, 1987)
18 CFR 154.210 Refunds from project sponsors.
(a) General rule. A shipper shall flow-through to its jurisdictional
customers the jurisdictional portion of all refunds attributable to
ANGTS charges (including interest received) received from the project
sponsors.
(b) Flow-through procedure. A shipper shall flow-through such
refunds according to the manner, timing, reporting requirements and
threshold amounts specified in the shipper's approved ACR Clause, unless
the refund is attributable to a total cessation of service, in which
event the procedure for flowing through the refund will be determined
pursuant to a Commission order.
(c) Computation of interest. A shipper shall accrue interest on the
jurisdictional portion of all refunds, including interest received, from
the date that it receives such refunds from the project sponsors until
the date that it disburses the refund to its jurisdictional customers,
and shall compute such interest in the manner and at the rate prescribed
in 154.208(f) of this chapter.
18 CFR 154.211 Line pack gas costs.
In any filing by a shipper to establish a Base Tariff Rate and in any
subsequent filing to restate a Base Tariff Rate, the shipper shall
demonstrate that costs associated with line pack gas are properly
accounted for and properly reflected in its rate(s). In the event a
shipper's volume of line pack gas has decreased from the volume of line
pack gas previously reflected in its rate(s), the shipper shall further
demonstrate that it has appropriately recognized and accounted for any
excess revenues collected from its jurisdictional customers.
18 CFR 154.212 Separate tracking of ANGTS charges and purchased gas
costs.
A shipper shall maintain separate tariff provisions for tracking
changes in its ANGTS charges and for tracking changes in its purchased
gas costs attributable to Alaska natural gas. A shipper shall track
changes in its purchased gas costs attributable to Alaska natural gas
pursuant to 154.301 through 154.310 of this chapter.
(Order 320, 48 FR 34458, July 29, 1983, as amended by Order 483, 52
FR 43880, Nov. 17, 1987)
18 CFR 154.213 Election of an ACR clause
(a) General rule. A shipper shall elect once every three years
whether to recover all changes in its ANGTS charges through filings made
under 154.208 of this chapter and pursuant to its ACR Clause (ACR
Clause option), through general rate change filings under 154.63 of
this chapter (non-ACR Clause option), or through a cost-of-service
tariff approved by the Commission under 154.204; Provided, however,
That election to discontinue the ACR Clause or the use of a
cost-of-service tariff approved by the Commission shall be subject to
approval by the Commission.
(b) Procedure for election. For purposes of this section, ''election
period'' means a three year calendar period to commence coincidentally
on the approved effective date of the earlier of a shipper's semiannual
rate adjustments (pursuant to 154.208 of this chapter) every third
year. The first election period commences on the approved effective
date of the earlier of a shipper's semiannual rate adjustments (pursuant
to 154.208 of this chapter) of the fourth year following the year in
which a shipper first tracks changes in its ANGTS charges under 154.208
of this chapter and pursuant to its ARC Clause. The election for an
election period must be made on or before the first day of the month
preceding the new election period and is binding for an entire election
period. A shipper electing the ACR Clause option pursuant to this
section may terminate its ACR Clause effective as of the next election
period by filing revised tariff sheets eliminating the ACR Clause from
its tariff. Such tariff sheets must be filed on or before the first day
of the month preceding a new election period to become effective on the
first day of the new elections period. If a shipper does not make such
a filing, it shall be considered to have elected to renew its ACR Clause
option for the new election period. A shipper which has chosen the
non-ACR Clause option for an election period may file revised tariff
sheets implementing the ACR Clause option for the next election period.
Such tariff sheets must be filed on or before the first day of the month
preceding a new election period to make the ACR Clause effective on the
first day of that election period.
(c) Effect of election. If a shipper elects the ACR Clause option,
or if a shipper elects the non-ACR option and the Commission does not
approve such election, the shipper shall file for changes in its ANGTS
charges exclusively through its ACR Clause during the following election
period. If a shipper elects the non-ACR Clause option and the
Commission approves such election, the shipper shall file for changes it
its ANGTS charges exclusively in general rate change filings under
154.63 of this chapter. A shipper shall not change any provision in its
approved cost-of-service tariff without the Commission's approval.
18 CFR 154.213 Purchased Gas Adjustment Clauses
Source: Sections 154.301 through 154.310 appear by Order 483, 52 FR
43880, Nov. 17, 1987, unless otherwise noted.
18 CFR 154.301 Applicability.
(a) Scope. These sections establish procedures for an interstate
natural gas pipeline to recover the changes in the cost of purchased
natural gas through a purchased gas adjustment (PGA) clause instead of
in a general rate proceeding pursuant to section 4 of the Natural Gas
Act and 154.63.
(b) Cross reference. The procedures for recovering purchased gas
costs in a general rate proceeding under section 4 of the Natural Gas
Act are set forth in 154.63.
18 CFR 154.302 Definitions.
For purposes of 154.301 through 154.310:
(a) Pipeline means an interstate natural gas pipeline company subject
to the Commission's jurisdiction under section 1 of the Natural Gas Act.
(b) As-billed means a method by which a pipeline charges its
customers the costs of gas in the same manner it is billed by its
pipeline suppliers.
(c) Base tariff rate is the rate level determined at the time a
pipeline adopts a PGA clause, in a general rate case under 154.63,
under section 5 of the Natural Gas Act, or in a proceeding under
154.303(e).
(d) Effective rate means the rate a pipeline charges, including
adjustments, as provided for in the pipeline's FERC Gas Tariff, as
accepted or approved by the Commission.
(e) Base cost of gas means the component in the base tariff rate that
represents the average cost of purchased gas.
(f) Concurrent exchange transaction means a transfer of equal
quantities of natural gas between two parties that is intended under a
written agreement to occur at the same time.
(g) Nonconcurrent exchange transactions means a transfer of equal
quantities of natural gas between two parties that is intended under a
written agreement to occur at different times.
(h) Exchange-in means the quantities of natural gas a pipeline
receives during a month:
(1) As part of concurrent and nonconcurrent exchange transactions,
and
(2) In excess of the quantities of natural gas it delivers under
transportation agreements authorized under parts 157 and 284 of this
chapter.
(i) Exchange-out means the quantities of natural gas a pipeline
delivers during a month:
(1) As part of concurrent and nonconcurrent exchange transactions,
and
(2) In excess of the quantities of natural gas it receives under
transportation agreements authorized under parts 157 and 284 of this
chapter.
(j) Purchased gas cost means the cost of natural gas purchased by a
pipeline. These costs, adjusted to reflect net injections to or
withdrawals from storage, include:
(1) Wellhead purchases from producers in gas fields or production
areas where only the pipeline's facilities are used to bring the gas
from the wellhead into the pipeline's natural gas system;
(2) Wellhead intracompany transfers of gas supplied by a pipeline's
production division when the price of the gas is not determined by a
cost-of-service proceeding;
(3) If the facilities of the vendor or others are used to bring the
gas from the wellhead to the point of entry into the pipeline's natural
gas system, field line purchases in gas fields or production areas at
points along gathering lines and at points along the pipeline's
transmission lines within field or production areas, excluding purchases
at outlets of gasoline plants;
(4) Natural gas gasoline plant purchases at the outlet side of a
vendor's natural gas products extraction plant;
(5) Natural gas transmission line purchases at points along the
pipeline's transmission lines not within gas fields or production areas,
excluding purchases at the outlets of product extraction plants;
(6) Pipeline or affiliate production that qualifies under 154.42;
(7) The cost of nonconcurrent exchange transactions when authorized
under a written agreement;
(8) Taxes under 271.1102 of this chapter;
(9) Costs under 271.1104 of this chapter;
(10) Unpaid accruals, as defined in paragraph (r) of this section;
and
(11) Any other costs of natural gas purchased by a pipeline and
approved by the Commission.
(k) Purchased gas adjustment (PGA) clause means a statement filed in
a pipeline's tariff that explains how the pipeline will implement the
requirements of this section.
(l) PGA effective period means the time period during which a current
adjustment is or will be in effect.
(m) Unit-of-purchase methodology means, for purposes of a current
adjustment, a method for computing a pipeline's average projected
purchased gas costs derived by dividing the pipeline's total projected
purchased gas costs the pipeline anticipates purchasing during the PGA
effective period by the quantities of gas used to compute its total
projected purchased gas costs, as detailed in 154.305.
(n) Unit-of-sales methodology means, for purposes of a current
adjustment, a method for computing a pipeline's average projected
purchased gas costs derived by dividing the pipeline's total projected
purchased gas costs the pipeline anticipates purchasing during the PGA
effective period by the quantities of gas the pipeline anticipates
selling during the PGA effective period.
(o) Current adjustment means a rate component in a pipeline's tariff,
determined by applying either the unit-of-purchase or unit-of-sales
methodology, used to reflect the difference between:
(1) The current weighted average projected purchased gas costs, and
(2) The weighted average projected purchased gas costs reflected in
the effective period of the previous scheduled PGA.
(p) Deferral period means a period of 12 months ending four months
before the effective date of a pipeline's annual PGA filing.
(q) Surcharge rate amortization period means the time period approved
by the Commission during which a surcharge rate, determined under
154.305, is charged by a pipeline.
(r) Unpaid accrual means an expense for services rendered or property
delivered to the pipeline for which the pipeline has a legally
enforceable obligation to pay which the pipeline has not paid within its
billing and payment cycle, provided that the billing and payment cycle
does not exceed 60 days from the end of the month in which the services
were rendered or property was delivered.
(s) Rolling weighted average inventory costing methodology means a
method of pricing gas inventory in which injections are priced at the
month's jurisdictional system cost of purchased gas and withdrawals are
priced by dividing the total purchase cost of the gas in storage by the
quantity of gas in storage.
18 CFR 154.303 Election of a PGA clause.
(a) General rule. Subject to 154.310, a pipeline may elect to
recover changes in its purchased gas costs either by:
(1) Filing a request for a change in its rate level under 154.63, or
(2) Complying with the election procedures in paragraph (b) of this
section.
(b) Procedure for election. For purposes of this paragraph,
''election period'' means a three-year calendar period commencing on
January 1 of every third year. The first election after that described
in paragraph (b)(1) of this section is January 1, 1991.
(1) The first election commences on June 1, 1988.
(2) A pipeline with a PGA clause in its tariff on May 1, 1988, will
be considered to have elected to recover its changes in purchased gas
costs through the PGA clause unless the pipeline notifies the Commission
by May 1, 1988, that it has elected not to recover any changes in
purchased gas costs through a PGA clause.
(3) A pipeline that elects to discontinue recovering for changes in
purchased gas costs through its PGA clause must file revised tariffs
sheets eliminating the PGA clause from its tariff by May 1, 1988, to be
effective on June 1, 1988. Waiver of the notice requirements of 154.22
will be granted to permit the conforming tariff sheets to become
effective on June 1, 1988.
(4) A pipeline that elects the PGA clause option in the first
election period may terminate its PGA clause effective as of the next
election period by filing revised tariff sheets eliminating the PGA
clause on or before December 1 preceding a new election period, to be
effective on the first January 1 of the new election period.
(5) If a pipeline with a PGA clause in its tariff does not make a
filing to terminate the PGA clause on or before December 1 preceding a
new election period, the pipeline will be considered to have elected to
recover changes in its purchased gas costs through the PGA clause during
the new election period.
(6) A pipeline that elects the non-PGA option for an election period
may file revised tariff sheets implementing the PGA clause option for
the next election period. A pipeline that makes such an election must
file revised tariff sheets to implement the PGA clause option on or
before December 1 preceding a new election period to make the PGA clause
effective on the first January 1 of that election period.
(7) A pipeline that elects to recover its changes in purchased gas
costs through the PGA clause must not change its election or file tariff
sheets eliminating its PGA clause from its tariff during the election
period.
(c) PGA clause option. Subject to paragraph (e) of this section, a
pipeline that elects the PGA clause option for the first election
period, beginning on June 1, 1988, must not include any change in
purchased gas costs in a Natural Gas Act section 4 rate filing made
under 154.63 which is filed on or after May 1, 1988.
(1) Subject to paragraph (c)(5) and paragraph (e) of this section,
during any period in which a pipeline elects the PGA clause option, the
pipeline must file for changes in purchased gas costs through its PGA
clause and not through a Natural Gas Act section 4 rate filing under
154.63.
(2) If a pipeline elects to recover changes in its purchased gas
costs through filings made under a PGA clause, it must file tariff
sheets containing a PGA clause, to be approved by the Commission, that:
(i) Detail the computation of all the adjustments to the pipeline's
base tariff rates as permitted by 154.305, 154.308, and 154.309;
(ii) Indicate whether the pipeline has elected either the
unit-of-purchase methodology or the unit-of-sales methodology, and state
that it will consistently use the same methodology elected for computing
the current adjustment and for determining the monthly deferrals to
Account No. 191;
(iii) State that the pipeline will apply to the adjustments permitted
by 154.305, 154.308, and 154.309, only the portion of the changes in
its purchased gas costs that are allocated to the pipeline's
jurisdictional sales
(iv) Describe how the pipeline will refund amounts described in
154.305(i); and
(v) Adopt all other terms and conditions specified in this part.
(3) A pipeline must normalize all income tax timing differences which
are the result of differences between the period in which expense or
revenue enters into the determination of taxable income and the period
in which the expense or revenue enters into the determination of pre-tax
book income.
(4) A PGA clause filed with the Commission will become effective only
after the Commission issues an order accepting the PGA clause for
filing.
(5) A pipeline may request a waiver from the Commission of the PGA
election requirements of this section if the pipeline demonstrates:
(i) That it is unable to arrange for financing of the balances
accrued in Account No. 191, or
(ii) That it is unable to earn its overall rate of return last
allowed by the Commission because of the magnitude of the balance in
Account No. 191 and a significant difference exists between the costs
of financing the Account No. 191 balances and the carrying charges
permitted under 154.305(h).
(d) Non-PGA clause option. During an election for which a pipeline
has elected the non-PGA clause option, the pipeline may only recover for
changes in purchased gas costs by filing a Natural Gas Act section 4
rate filing pursuant to 154.63. The pipeline must not file tariff
sheets to include a PGA clause in its tariff during the three-year
election period.
(e) Three-year filing requirement to establish new base tariff rate.
(1) General requirement. At least 30 days before the expiration of 36
months after the effective date of any previously approved base tariff
rate(s), a pipeline must file a tariff sheet(s) restating its rates to
establish new base tariff rates(s) containing the following information:
(i) A pipeline must state its agreement that this filing will
automatically be subject to refund until an agreement is reached or a
Commission determination is made establishing new base tariff rate(s);
and
(ii) With the tariff sheet(s) the pipeline must file a study in the
form and with the content prescribed by 154.63, except Statements O and
P, to support the new base tariff rate(s). On or after October 31,
1989, these tariff sheets and statements must be filed on electronic
media as prescribed in 154.63 and 385.2011 of this chapter.
(A) If the pipeline has a Natural Gas Act section 5(a) case pending a
final Commission order, or has made a Natural Gas Act section 4 rate
filing under 154.63 for which the proposed rates would not become
effective before termination of the 36-month period, a study from that
proceeding may utilized.
(B) This study must be based upon actual costs for the 12 months of
most recently available experience, provided that the 12-month period
used ends not more than 4 months before the expiration of the 36-month
period. Annualization for changes which actually occurred in the
12-month period is permitted.
(C) This study must be served on a pipeline's jurisdictional
customers and interested state commissions concurrently with the
pipeline's filing with the Commission.
(2) Effect of a filing under 154.63. If a Natural Gas Act section 4
rate change proceeding under 154.63 is filed before the expiration of
the 36-month period, a new 36-month period will begin when the rates
proposed in the 154.63 filing go into effect. Rates determined by the
Commission in a general Natural Gas Act section 4 rate proceeding
pursuant to 154.63, or section 5(a) of the Natural Gas Act, or rates in
a settlement agreement approved by the Commission will establish the new
base tariff rates when they become effective pursuant to a Commission
order, and a new 36-month period will start.
(3) Restatement of new base tariff rate. If, either as a result of a
Commission approved agreement among a pipeline, its jurisdictional
customers, interested state commissions, and the Commission staff, or,
as a result of a Commission determination after a hearing, it is found,
based on the cost study prescribed in paragraph (e)(1)(ii) of this
section, that the jurisdictional cost-of-service is less than
jurisdictional revenues collected for the same 12-month period used in
the cost study, as adjusted, a pipeline must:
(i) Restate its base tariff rate(s);
(ii) File with the Commission a revised tariff sheet(s) reflecting a
reduction in its jurisdictional rates by an amount equal to the excess
revenues agreed upon or determined; and
(iii) Refund to its jurisdictional customers any excess amounts
collected subject to refund to the date of billing under the revised
tariff sheet(s), with interest to that date.
(A) This refund obligation will be limited to the amount collected in
excess of the prior or suspended base tariff rate.
(B) The rate reduction, if any, below the old base tariff rate(s) is
to be prospective from the date of the Commission's order determining
the new base tariff rate(s).
(Order 483, 52 FR 43880, Nov. 17, 1987, as amended by Order 493, 53
FR 15028, Apr. 27, 1988; Order 493-B, 53 FR 49653, Dec. 9, 1988)
18 CFR 154.304 Scheduled annual and quarterly PGA filings.
(a) General rule. A pipeline that elects a PGA clause pursuant to
154.303(b) must file under the schedule specified in paragraph (c) of
this section:
(1) An annual PGA filing described in l54.305 that contains both a
current adjustment to reflect any changes in the pipeline's purchased
gas costs since the pipeline's last scheduled quarterly PGA filing and a
surcharge rate adjustment to clear any ending balance(s) in the current
deferral subaccount(s) of Account No. 191; and
(2) Three quarterly PGA filings described in 154.308 that contain
current adjustments to track any changes in the pipeline's purchased gas
costs since the pipeline's last scheduled PGA filing.
(b) Exception to rate change filing requirement. Except for the
surcharge rate adjustment described in 154.305(d), a pipeline may
reflect a purchased gas adjustment in its rates only if the adjustment
represents a dollar amount equal to at least 1 mill ($0.001) per MMBtu
of jurisdictional sales.
(c) Effective dates. A pipeline must file its annual and quarterly
PGA filings with the Commission to be effective as follows:
Alabama-Tennessee Natural Gas Company
Granite State Gas Transmission, Inc.
East Tennessee Natural Gas Company
Nothern Natural Gas Company
Sea Robin Pipeline Company
Tennessee Gas Pipeline Company
National Fuel Gas Supply Corporation
Lawrenceburg Gas Transmission Corporation
Texas Eastern Transmission Corporation
Texas Gas Transmission Corporation
Algonquin Gas Transmission Company
Natural Gas Pipeline Company of America
North Penn Gas Company
Panhandle Eastern Pipe Line Company
Arkla Energy Resources, A Division of Arkla, Inc.
Commercial Pipeline Company, Inc.
Midwestern Gas Transmission Company, Southern Division
Northwest Pipeline Corporation
Southern Natural Gas Company
ANR Pipeline Company
Columbia Gas Transmission Company
Florida Gas Transmission Company
Kentucky-West Virginia Gas Company
MIGC, Inc.
Williams Natural Gas Company
Mississippi River Transmission Corporation
Questar Pipeline Company
Pacific Interstate Transmission Company
Valero Interstate Transmission Company
Distrigas of Massachusetts Corporation
El Paso Natural Gas Company
Gas Gathering Corporation
South Georgia Natural Gas Company
Transwestern Pipeline Company
Bayou Interstate Pipeline System
Transcontinental Gas Pipe Line Company
Western Gas Interstate Company
Williston Basin Interstate Pipeline Company
CNG Transmission Corporation
Carnegie Natural Gas Company
Equitrans, Inc.
Locust Ridge Gas Company
Mid Louisiana Gas Company
Trunkline Gas Company
Colorado Interstate Gas Company
Raton Gas Transmission Company
Ringwood Gathering Company
Southwest Gas Corporation
United Gas Pipeline Company
West Texas Gas, Inc.
Eastern Shore Natural Gas Company
Great Lakes Gas Transmission Company
Inter-City Minnesota Pipeline, Ltd., Inc.
Texas Gas Pipe Line Corporation
Valley Gas Transmission
Midwestern Gas Transmission Company, Northern Division
KN Energy, Incorporated
Louisiana-Nevada Transit Company
Western Transmission Corporation
(Order 483, 52 FR 43880, Nov. 17, 1987, as amended by Order 483-A, 53
FR 7502, Mar. 9, 1988; 53 FR 11991, Apr. 12, 1988)
18 CFR 154.305 Annual PGA filing.
(a) Filing requirements. The annual filing must be filed with the
Commission and posted pursuant to 154.16 at least 60 days before a
pipeline's proposed annual effective date, as established under
154.304(c). At the same time, the pipeline must serve its jurisdictional
customers and interested state commissions with a copy of the filing.
The copy of the filing served on the jurisdictional customers and
interested state commissions must be in the hard copy format set forth
in Exhibit C of the FERC Form No. 542-PGA unless otherwise agreed to by
the jurisdictional customers and interested state commissions. The
notice of an annual PGA filing given under 385.210 of this chapter will
provide 20 days for the filing of interventions and protests. The
filing must contain:
(1) Tariff sheets that conform to both the format specified in
154.33(d) and the following format:
(2) A report containing detailed computations which clearly show the
derivation of the current adjustment and a surcharge rate to be applied
to a pipeline's effective rates.
(i) The format in which this report must be submitted and the
information that the report must contain are set forth in FERC Form No.
542-PGA, Purchased Gas Adjustment (PGA) Filing, available at the Energy
Information Administration (EIA), Department of Energy, 1000
Independence Avenue SW, Washington, DC 20585.
(ii) All data or summaries in the filing reflecting the books of
account must be supported by accounting working papers, including
reconciling schedules which may be verified easily. All statements,
schedules, and working papers must be prepared in accordance with the
classifications provided in the Uniform System of Accounts in part 201
of this chapter. Upon request by the Commission staff, a pipeline must
make available all working papers for staff examination. All working
papers must be indexed and cross-referenced to the filing.
(3) A report containing statements about the pipeline's purchasing
patterns. The report will consist of:
(i) A statement outlining the purchasing policies that gave rise to
the annual and quarterly projections in Schedule Al of FERC Form No.
542-PGA;
(ii) A statement about the underlying basis for the annual purchases
reflected in the annual PGA filing; and
(4) Any changes to an intracompany operating statement for all gas
produced by a pipeline, as defined in 270.203(b) of this chapter, on
file with the Commission.
(b) Treatment of change in cost of gas from various types of
suppliers. A pipeline must apply changes in the cost of purchased gas
to its base tariff rates in the following manner:
(1) Producer rate changes must be applied to the commodity component
of a pipeline's two-part rates or to the volumetric rates of a
pipeline's one-part rates.
(2) Pipeline supplier rate changes must be applied as billed to a
pipeline's two-part rates or applied to a pipeline's volumetric rates in
a manner which maintains the pipeline's one-part rate design.
(3) Imported natural gas rate changes must be applied to a pipeline's
rates in the following manner:
(i) Production costs, gathering costs, and carrying charges
associated with take-or-pay payments must be applied to the commodity
component of a pipeline's two-part rates or to the volumetric rates of a
pipeline's one-part rates.
(ii) Fixed transmission costs must be classified as demand costs and
commodity costs using a cost classification methodology approved by the
Commission with respect to the subject costs.
(iii) Volumetric charges must be applied to the commodity component
of a pipeline's two-part rates or to the volumetric rates of a
pipeline's one-part rates.
(c) Determining the current adjustment -- (1) Method for projecting
cost of purchased gas. A pipeline must project its purchased gas costs
based on:
(i) The best estimate of the quantities of natural gas a pipeline
expects to purchase and to receive in nonconcurrent exchange
transactions during the three months beginning on the effective date of
the PGA;
(ii) Known and measurable changes in the rate, for all but pipeline
supplier rates, based on contractual obligations that are in existence
on the date the PGA is filed. The rate to be used for each projected
purchase of pipeline supply will be the rate in effect as of the
effective date of the PGA or a rate which will come out of suspension
during the PGA effective period. The rate for producer supply may be
adjusted, if applicable, by the monthly ceiling price escalations
allowed under the Natural Gas Policy Act of 1978; and
(iii) The best estimate of quantity and cost adjustments for storage
injections and withdrawals.
(2) Limitation on projecting cost of purchased gas. A pipeline may
only project its purchased gas costs based on gas supply attached to its
system as of the effective date of the PGA.
(3) Estimated sales quantities. If a pipeline uses the unit-of-sales
methodology, the pipeline's estimated sales volumes will be the
pipeline's best estimate of the volumes of natural gas the pipeline
expects to sell during the three months beginning on the effective date
of the PGA.
(4) Revision to the current adjustment. A pipeline may file a
revision to the current adjustment filed with its annual PGA. The
revision must be filed with the Commission and posted under 154.16, at
least 30 days before a pipeline's annual PGA effective date, as
established in 154.304(c). At the same time, the pipeline must serve
its jurisdictional customers and interested state commissions with a
copy of the filing as described in paragraph (a) of this section. The
revision must conform to the following:
(i) The filing must contain tariff sheets as specified in paragraph
(a)(1) of this section.
(ii) This report must contain detailed computations that clearly show
the derivation of the revision to the current adjustment. The format in
which this report must be submitted and the information that the report
must contain should conform to the format for the quarterly PGA filing
as set forth in FERC Form No. 542-PGA, Purchased Gas Adjustment (PGA)
Filing.
(iii) The current adjustment must be determined as described in
paragraphs (b) and (c) of this section. A pipeline must not make an
adjustment to the surcharge rate in this filing.
(d) Computing the surcharge rate. A pipeline must compute a
surcharge rate to amortize a surcharge balance determined under
paragraph (e) of this section. To compute a surcharge rate, the
surcharge balance must be divided by the pipeline's estimated sales
volumes for the 12 month period beginning on the annual PGA effective
date. The resulting surcharge rate will be in effect for the 12-month
period beginning on the annual PGA effective date.
(e) Surcharge balance. Subject to the conditions in paragraph (f) of
this section and 154.306, the balance for determining the surcharge
includes:
(1) The balance accumulated in the current deferral subaccount of
Account No. 191 during the deferral period, as determined in paragraph
(g) of this section; and
(2) Any other costs the Commission allows a pipeline to include in
the surcharge balance.
(f) Unpaid accrual restrictions. (1) In each annual PGA filing, a
pipeline must include a listing of each unpaid accrual of purchased gas
costs which remains unpaid for three or more years from the month the
cost was originally recognized in the pipeline's books and records. The
pipeline must include a specific description of the circumstances which
resulted in each unpaid accrual listed. The pipeline must obtain the
Commission's approval to continue the recognition of the unpaid accruals
as a purchased gas cost.
(2) If the Commission does not approve the continued recognition of
any unpaid accruals described in paragraph (f)(1) of this section as
purchased gas costs, the amounts must be credited to the refund
subaccount of Account No. 191 as specified by the Commission order.
(g) Balances in the current deferral subaccount in Account No. 191.
The accumulated subaccount balances of Account No. 191 may include:
(1) Monthly deferrals of under- or overrecovered gas costs computed
under paragraphs (g)(1)(i) or (g)(1)(ii), as applicable.
(i) If the unit-of-purchase methodology is adopted, monthly deferrals
are the sum of the amounts determined by multiplying the difference
between X and Y by Z where:
X=The applicable effective base cost of gas rate plus the cumulative
current adjustment rate in effect;
Y=The actual monthly unit cost of gas purchased; and
Z=The monthly quantity of gas purchased and prorated to the current
adjustment rate in effect during the month.
The actual unit cost of gas purchased is derived by dividing the sum
of the total actual monthly cost of gas purchased determined in
paragraph (g)(1)(iii) of this section and the adjustments determined in
paragraph (g)(2) of this section, by the related purchase volumes.
(ii) If the unit-of-sales methodology is adopted, the monthly
deferrals are the amounts determined by taking the difference between A
and B where:
A=The total actual monthly cost of gas purchased as determined under
paragraph (g)(1)(iii) of this section, and
B=The projected unit cost of purchased gas determined under paragraph
(c) of this section that is recovered through the base cost of gas rate
plus the cumulative current adjustment rate, multiplied by the actual
quantities of gas sold under each current adjustment rate in effect
during the month.
(iii) The actual cost of gas purchased used to calculate the monthly
deferrals of under- or overrecovered purchased gas costs are the
purchased gas costs, as defined in 154.302(j), as adjusted for exchange
transactions and transportation imbalances under paragraph (j) of this
section. The actual cost of gas purchased under this paragraph must be
attributable to gas quantities purchased and received in a month, that
are paid for, or are for amounts known within 60 days of the end of the
month in which the purchases were made and received that have not yet
been paid.
(2) Adjustments to a prior month's actual cost of gas purchased as
determined under paragraph (g) of this section.
(3) Adjustments to a prior month's revenue due to a revision to that
prior month's sales level if a unit-of-sales methodology is adopted.
(4) Transfers of any unamortized amounts remaining in a deferral
subaccount of Account No. 191 after the related surcharge amortization
period has expired.
(5) Carrying charges, determined pursuant to paragraph (h) of this
section and
(6) Transfers of any amounts remaining in a refund subaccount
determined under paragraph (i) of this section, to be amortized as part
of the surcharge balance.
(h) Carrying charges -- (1) General rule. A pipeline must compute
carrying charges on the Account No. 191 balance. After computing
carrying charges, the pipeline must:
(i) Compound carrying charges on a calendar quarter basis, as
specified in 154.67(c)(2)(iii)(B); and
(ii) Debit carrying charges to Account No. 191 if the carrying
charge base, specified in paragraph (h)(3) of this section, is a debit
(positive), and credit carrying charges to Account No. 191 if the
carrying charge base, specified in paragraph (h)(3) of this section is a
credit (negative).
(2) Method. To compute carrying charges, a pipeline must multiply
the carrying charge rate specified in paragraph (h)(4) of this section
by the appropriate carrying charge base specified in paragraph (h)(3) of
this section.
(3) Carrying charge base. (i) The carrying charge base for the
refund, revenue credits and billing adjustments subaccount will be the
prior month's ending refund, revenue credit and billing adjustment
subaccount balance of Account No. 191 adjusted for any applicable
deferred income taxes recorded consistent with 154.303(c)(3) and
reduced for unpaid accruals, if any.
(ii) The carrying charge base for any other subaccounts of Account
No. 191 will be the prior month's ending subaccounts' balances:
(A) Reduced for unpaid accruals;
(B) Adjusted for any applicable deferred income taxes as recorded in
either Account No. 283, or Account No. 190 consistent with
154.303(c)(3);
(C) Increased or decreased for exchange transactions and
transportation imbalances cost adjustments, determined in paragraph (j)
of this section; and
(D) Adjusted for the difference, if any, between the rate used for
storage gas, and the rate that would be effective for storage gas if a
rolling weighted average inventory costing methodology had been used.
(4) Carrying charge rate. A pipeline must compute a monthly carrying
charge rate for carrying charges by:
(i) Stating on an annual basis the applicable calendar quarterly rate
prescribed in l54.67(c)(2)(iii)(A);
(ii) Dividing the annual rate by 365 or 366, if a leap year, to
compute a daily interest rate, expressed to the nearest one
ten-thousandth of one percent; and
(iii) Multiplying the daily interest rate by the number of days in
the applicable month, to compute a monthly rate, expressed to the
nearest one-onehundredth of one percent.
(i) Refunds -- (1) General rule. A pipeline that elects a PGA clause
under 154.303 must return to its jurisdictional customers the
jurisdictional portion, as determined under the pipeline's FERC gas
tariff, of all refunds or revenue credits, including billing adjustments
under 270.101(e) and 273.302 of this chapter, and of all interest
computed on these amounts received from its suppliers for the pipeline's
purchases of natural gas. The pipeline must return these amounts to its
jurisdictional customers by:
(i) Establishing a separately identified refund subaccount of Account
No. 191. During a deferral period a pipeline must:
(A) Credit the subaccount with the jurisdictional portion of all
refunds, revenue credits, and the related interest received;
(B) Debit the subaccount with the out-of-period billing adjustments;
and,
(C) Debit if the subaccount balance is a debit balance or credit if
the subaccount balance is a credit balance with the carrying charges
computed under paragraph (h) of this section.
(ii) If the refund subaccount balance is a credit balance, disbursing
to its jurisdictional customers in cash the total refund subaccount
balance when the total refund subaccount balance equals or exceeds an
amount which is the lesser of:
(A) $2 million, or
(B) 1 cent per MMBtu, determined by dividing X by Y where:
X = The monthly ending refund balance, and
Y = The quantity of a pipeline's most recent 12 months of actual
jurisdictional sales.
(iii) The disbursement must be made by the pipeline within 90 days of
the end of the month in which a pipeline receives a refund, revenue
credit, or billing adjustment which causes the refund subaccount balance
to reach the level stated in paragraph (1)(ii)(A) or (l)(ii)(B) of this
section.
(2) Disbursement calculation -- (i) Commodity disbursement. For
those portions of a refund based on commodity rates, the pipeline must
determine each jurisdictional customer's share of the cash disbursement
by taking the ratio of that customer's purchases from the pipeline for
the 12 month period ending three months prior to the month in which the
level in paragraphs (1)(ii)(A) or (1)(ii)(B) of this section is
attained, to the pipeline's jurisdictional sales for the same 12-month
period and multiplying the ratio by the total amount to be disbursed.
(ii) Demand disbursement. For pipelines with separate demand and
commodity rates, the portions of a refund based on demand rates, unless
otherwise ordered by the Commission, must be disbursed on an as-billed
basis. The distribution must be based on the demand billing
determinants of each customer established during the overcharge period.
The refunds attributable to demand rates must be distributed in cash at
the time the level in paragraphs (1)(ii)(A) or (1)(ii)(B) of this
section is reached and at the end of the deferral period, if necessary.
(3) Debiting refund subaccount. For any amounts disbursed in cash,
the pipeline must debit the refund subaccount of Account No. 191. If
there is a balance of refunds, revenue credits, and associated carrying
charges remaining in the refund subaccount at the end of a deferral
period, the pipeline must either:
(i) If the balance is a credit balance, disburse the amounts in cash
in the manner described in paragraphs (i)(2)(i) or (i)(2)(ii) of this
section; or
(ii) If the balance is a debit balance or the pipeline elects not to
make a cash disbursement under paragraph (i)(3)(i) of this section,
transfer the amounts to the current deferral subaccount balance
determined under paragraphs (e) and (g) of this section.
(4) Refund report. When a pipeline files its annual PGA filing, the
pipeline must also file a report with the Commission showing all
computations of the refunds, revenue credits, and associated carrying
charges disbursed in cash during the applicable deferral period.
(j) Exchange transactions and transportation imbalances -- (1)
General rule. If a pipeline elects a unit-of-sales methodology, it must
assign a cost to its exchange transactions and transportation imbalances
by:
(i) Adjusting the purchased quantities for each month of a deferral
period by adding the exchange-in quantities for the month and
subtracting the exchange-out quantities for the month; and
(ii) Adjusting the purchased gas costs for each month of a deferral
period by adding the costs assigned to the month's exchange-in
quantities and subtracting the costs assigned to the month's
exchange-out quantities.
(2) Assigning costs. For purposes of assigning costs to the monthly
exchange-in or exchange-out quantities, a pipeline must use the weighted
average cost of gas (WACOG) for the monthly cost of gas purchased, as
that term is defined in 154.302(j), exclusive of gas costs described in
154.302(j) (7) and (11), and adjustments for withdrawals from and
injections into storage.
(3) Adjustment. The pipeline must use the first exchange-out
quantities or exchange-in quantities of the current month to offset any
net exchange imbalance that occurred in a prior month. If the
cumulative imbalance at the end of the month was a net exchange-in, the
pipeline must balance the net exchange-in with the first exchange-out
quantities given by the pipeline. If the cumulative imbalance at the
end of the month was a net exchange-out, the pipeline must balance the
net exchange-out with the first exchange-in quantities received by the
pipeline. The rate for valuing the current month's balancing quantities
will be equal to the WACOG of the prior month. If the pipeline is
unable to offset the prior month's exchange imbalances with a current
month's exchange quantities, it must carry the imbalance forward through
the deferral period until balancing occurs. Until balancing is
achieved, the rate for valuing each month's balancing quantities will be
the WACOG of the month when the imbalance occurred. The pipeline must
assign the current month's WACOG to any quantities not used to offset a
prior month's exchange imbalance.
(Order 483, 52 FR 43880, Nov. 17, 1987, as amended by Order 483-A, 53
FR 7502, Mar. 9, 1988; 53 FR 11992, Apr. 12, 1988; Order 514, 54 FR
25237, June 14, 1989, and 54 FR 41086, Oct. 5, 1989)
18 CFR 154.306 Assessment of past performance.
(a) General rule. (1) Prior Commission approval is required before a
pipeline may recover through a surcharge (surcharge recovery) its actual
purchased gas costs (determined in paragraph (d) of this section) that
exceed its computed projected purchased gas costs (determined in
paragraph (e) of this section) for each test interval (described in
paragraph (b) of this section) by three percent.
(2) A pipeline determines the amount of gas costs which requires
specific Commission approval for surcharge recovery under paragraph (c)
of this section.
(3) If the Commission denies a pipeline recovery of any
underrecovered purchased gas costs as a result of this section, then the
amounts denied recovery must be credited to Account No. 191 and charged
to Account No. 426.5, ''Other Deductions'' of the Uniform System of
Accounts in part 201 of this chapter.
(b) Test intervals. The pipeline must divide the deferral period
into four test intervals. The first test interval is the first four
months of the deferral period. The second test interval is the three
months following the first interval. The third interval is the three
months following the second interval. The fourth interval is the
remaining two months of the deferral period.
(c) Gas costs requiring specific approval for surcharge recovery.
The amount of gas cost which requires specific approval by the
Commission for surcharge recovery is the difference obtained by
subtracting Y from X, if greater than zero, where:
X=The actual cost of gas purchased in a test interval determined in
paragraph (d) of this section; and
Y=The test amount determined by multiplying the computed projected
gas costs, determined in paragraph (e) of this section, by 1.03.
(d) Actual cost of gas purchased. The actual cost of gas purchased
is the monthly amounts determined in 154.305(g)(1) for the gas
purchased in the test interval:
(1) Less adjustments for exchange transactions and transportation
imbalances;
(2) Including only the gas cost components that were used to compute
the projected average cost of gas that is compared in a test interval;
and
(3) Excluding any demand costs permitted to be passed through a
pipeline's two-part rates on an as-billed basis under 154.305(b) (2)
and (3).
(e) Computed projected cost of gas. A pipeline must calculate its
computed projected gas costs by multiplying:
(1) The quantities of natural gas purchased and/or received during a
PGA effective period within a test interval by
(2) A projected average rate derived by dividing the projected
purchased cost of gas used to calculate a current adjustment for a PGA
effective period by the related quantities of natural gas the pipeline
projects to purchase during a PGA effective period.
(Order 483, 52 FR 43880, Nov. 17, 1987, as amended by Order 483-A, 53
FR 7503, Mar. 9, 1988; 53 FR 13254, Apr. 22, 1988)
154.307 (Reserved)
18 CFR 154.308 Quarterly PGA filing.
(a) Filing requirements. The quarterly filing must be filed with the
Commission and posted under 154.16 at least 30 days before a pipeline's
proposed quarterly effective date, established under 154.304(c). At the
same time, the pipeline must serve its jurisdictional customers and
interested state commissions with a copy of the quarterly filing. The
copy of the filing served on the jurisdictional customers and interested
state commissions must be in the hardcopy format set forth in Exhibit C
of the FERC Form No. 542-PGA, unless otherwise agreed to by the
jurisdictional customers and interested state commissions.
(b) Contents of the filing. The pipeline must file:
(1) Tariff sheets that conform to both the format specified in
154.33(d) of this chapter and the following format:
(2) A report containing detailed computations which clearly show the
derivation of the current adjustment to be applied to a pipeline's
effective rates. The format in which this report must be submitted and
the information that the report must contain are set forth in FERC Form
No. 542-PGA, Purchased Gas Adjustment (PGA) Filing, available at the
Energy Information Administration, Department of Energy, 1000
Independence Avenue SW., Washington, DC 20585.
(c) Current adjustment. A pipeline must compute a current adjustment
for the quarterly filing in the manner described in 154.305(c). A
pipeline must not make an adjustment to the surcharge rate in effect
until the pipeline's next scheduled annual PGA filing.
(d) Challenges to quarterly filing. Objections to a pipeline's
purchasing practices reflected in a quarterly PGA filing will not be
considered by the Commission at the time of the quarterly filing and
must be raised at the time of the pipeline's next scheduled annual PGA
filing. Mathematical, typographical, or accounting errors that affect
the correct computation of a current adjustment in a quarterly PGA
filing may be challenged when a pipeline files the quarterly filing.
18 CFR 154.309 Interim adjustment filings.
(a) General rule. A pipeline may elect a PGA clause under 154.303
that allows it to file interim adjustments to its base tariff rate(s) in
addition to annual and quarterly PGA filings under 154.305 and
154.308, subject to the conditions specified in this section.
(b) Interim adjustment rate change. (1) A pipeline must only file an
interim rate adjustment based on a projected average cost of purchased
gas that is less than the projected average cost of gas reflected in its
last scheduled PGA filing. An interim adjustment rate change must only
reflect known and measurable changes to the cost of gas established in a
pipeline's last scheduled PGA filing.
(2) Known and measurable changes to the cost of gas as used in this
section are those changes in costs that a pipeline has a reasonable
basis for assuming will actually occur.
(c) Filing and notice requirements. (1) A pipeline must file an
interim adjustment with the Commission and post it as required by
154.16 at least 24 hours before the effective date of the proposed
interim adjustment. At the same time the pipeline files with the
Commission, it must serve its jurisdictional customers and interested
state commissions with a copy of the filing.
(2) The pipeline must file:
(i) Tariff sheets that conform to both the format specified in
154.33(d) and the following format:
(ii) A summary sheet showing the changes in purchased gas cost
reflected in the interim adjustment. A format for the summary sheet is
shown in FERC Form No. 542-PGA, Purchased Gas Adjustment (PGA) Filing,
available at the Energy Information Administration (EIA), Department of
Energy, 1000 Independence Avenue SW, Washington, DC 20585. The summary
sheet must contain sufficient detail to clearly show the derivation of
the interim adjustment to be applied to the pipeline's existing rates.
(d) Challenges to interim adjustment filing. Objections to a
pipeline's purchasing practices reflected in an interim adjustment
filing will not be considered by the Commission at the time of the
interim adjustment filing and must be raised at the time of the
pipeline's next scheduled annual PGA filing. Mathematical,
typographical, or accounting errors that affect the correct computation
of a rate adjustment in an interim adjustment filing may be challenged
when a pipeline files the interim adjustment.
18 CFR 154.310 Transition rules.
(a) Filing requirement. (1) On May 1, 1988, a pipeline must file
tariff sheets pursuant to 154.303 to be effective June 1, 1988.
(2)(i) If a pipeline elects to use a PGA clause, a pipeline must file
tariff sheets in the format specified in paragraph (a)(2)(ii) of this
section on May 1, 1988, to be effective on June 1, 1988.
(ii) A pipeline must file tariff sheets in the format specified in
paragraphs (a)(2)(iii) and (a)(2)(iv) of this section that contain:
(A) An initial current adjustment rate computed under paragraph (b)
of this section, and
(B) A surcharge rate adjustment described in paragraph (c) of this
section.
(iii) If June 1, 1988, is also the pipeline's scheduled annual or
quarterly PGA effective date under 154.304, the tariff sheet format
must conform to the annual or quarterly PGA format specified in
154.305 or 154.308. The pipeline must submit a detailed report in the
format and with the information set forth in the FERC Form No. 542-PGA
for the annual or quarterly PGA.
(iv) If June 1, 1988, is not a pipeline's scheduled annual or
quarterly PGA effective date under 154.304, the tariff sheet format
must conform to the quarterly PGA format specified in 154.308. The
pipeline must also submit a detailed report in the format and with the
information set forth in the FERC Form No. 542-PGA for the quarterly
PGA.
(b) Initial current adjustment rate. (1)(i) If a pipeline's annual
PGA effective date is June 1, 1988, the pipeline must file an initial
current adjustment rate as computed in accordance with 154.302 (m) or
(n) and 154.305 (b) and (c), on May 1, 1988.
(ii) If a pipeline's quarterly PGA effective date is June 1, 1988,
the pipeline must file an initial current adjustment rate in accordance
with 154.302 (m) or (n) and 54.305 (b) and (c) of this part, on May 1,
1988.
(iii)(A) If a pipeline's annual or quarterly PGA effective date is
not June 1, 1988, the pipeline must compute, for the appropriate time
period, an initial current adjustment rate in accordance with 154.302
(m) or (n) and 154.305 (b) and (c) of this part, to be filed on May 1,
1988.
(B) This rate is to remain in effect only until the pipeline files a
quarterly or annual PGA rate, whichever is first.
(iv) If a pipeline files an interim adjustment rate, described in
154.309, before it files a quarterly or annual PGA filing, the projected
average cost of gas in the interim adjustment rate must be less than the
projected average cost of gas used to compute the initial current
adjustment described in paragraph (b)(1)(iii) of this section.
(c) Surcharge rate adjustment -- (1) Definitions. For purposes of
paragraph (c):
(i) ''New surcharge rate amortization period'' means the effective
period for a new surcharge rate filed under paragraph (c)(3)(i) of this
section;
(ii) ''Existing surcharge rate amortization period'' means the
effective period for the surcharge rate included as a part of a
pipeline's last PGA filing before June 1, 1988.
(2) General rule. Thirty days before the end of either a new
surcharge rate amortization period under paragraph (c)(3)(i) of this
section or an existing surcharge rate amortization period, a pipeline
must file a tariff sheet to be effective when the surcharge rate
amortization period ends to remove either the new or existing surcharge
rate from its tariff.
(3) New surcharge rate effective on June 1, 1988 -- (i) New surcharge
rate. If a pipeline's existing surcharge rate amortization period ends
on the day before June 1, 1988, the pipeline must file a new surcharge
rate to be effective on June 1, 1988, under the procedures of paragraph
(a)(2)(ii) of this section.
(ii) Subsequent surcharge rates. A subsequent surcharge rate will be
filed:
(A) With a pipeline's second annual PGA filing if its first annual
PGA filing effective date, described in 154.304, is on June 1, 1988,
and if the pipeline files its new surcharge rate in accordance with
(c)(3)(i) of this paragaph.
(B) With a pipeline's first annual PGA filing if its first annual PGA
effective date, described in 154.304, is after the end of the new
surcharge rate amortization period.
(C) With a pipeline's second annual PGA filing if its first annual
PGA effective date, described in 154.304, is during the new surcharge
rate amortization period.
(4) Existing surcharge continues beyond June 1, 1988 -- (i) Existing
surcharge rate. If a pipeline's existing surcharge rate amortization
period ends after June 1, 1988, the pipeline must file and continue the
existing surcharge rate under the procedures of paragraph (a)(2)(ii) of
this section.
(ii) Subsequent surcharge rates. A subsequent surcharge rate will be
filed:
(A) Thirty (30) days before the end of the existing surcharge rate
amortization period, to be effective on the day after the end of the
existing surcharge rate amortization period if a pipeline's first annual
PGA filing effective date, as described in 154.304, is during the
existing surcharge rate amortization period. The pipeline must file its
next surcharge rate with its second annual PGA filing.
(B) With a pipeline's first annual PGA filing if its first annual PGA
effective date, described in 154.304 of this part, is after the end of
the existing surcharge rate amortization period.
(5) Length of surcharge rate amortization period. (i) The period of
time a pipeline accumulates deferrals (the deferral period) for the
surcharge rate amortization periods under paragraphs (c)(3)(i) and
(c)(4)(ii)(A) of this section will end three months before that
surcharge rate amortization period's effective date.
(ii) The deferral period for all surcharge rates not defined in
paragraph (c)(5)(i) of this section will end four months before that
surcharge rate amortization period's effective date.
(iii) Subject to paragraph (c)(6) of this section, the new surcharge
rate amortization period will remain in effect for the same length of
time as the appropriate deferral period defined in paragraphs (c)(5)(i)
and (c)(5)(ii) of this section.
(6) Limitation on surcharge rate amortization period. (i) No
surcharge rate amortization period can exceed a period of twelve months.
(ii) Beginning with each pipeline's second annual PGA filing the
surcharge rate amortization period will be 12 months.
(7) Determining the surcharge rate. A pipeline must divide the
dollar amount of deferrals accumulated in the current subaccount(s) of
Account No. 191 in the deferral periods defined in paragraphs (c)(5)(i)
and (c)(5)(ii) of this section by the projected sales quantities of
natural gas in the appropriate surcharge rate amortization period.
(d) Transition rule for electing unit-of-sales or unit-of-purchase
methodology. (1) Except as provided in paragraph (d)(2) of this
section, the tariff sheets a pipeline files under paragraph (a)(1) of
this section must maintain the unit-of-purchase or unit-of-sales
methodolgy used by the pipeline before May 1, 1988, to compute a current
adjustment and monthly deferrals to Account No. 191.
(2) When a pipeline files its first request for a rate change under
154.63 after June 1, 1988, it must include with the filing:
(i) A restated average cost of purchased gas in its base tariff rates
computed using either the unit-of-purchase methodology specified in
154.302(m) or the unit-of-sales methodology specified in 154.302(n)
elected by the pipeline pursuant to 154.303(c)(2)(ii), and
(ii) Revised tariff sheets to amend its PGA clause which indicate
that the pipeline has elected to use either the unit-of-purchase or
unit-of-sales methodology and which state that the pipeline will use the
same methodology elected for computing both the current adjustment under
the procedures specified in 154.302(m) or 154.302(n), and for
determining the monthly deferrals to Account No. 191 under the
procedures specified in 154.305(b)(1).
18 CFR 154.310 Pt. 156PART 156 -- APPLICATIONS FOR ORDERS UNDER
SECTION 7(a) OF THE NATURAL GAS ACT
Sec.
156.1 Who may apply.
156.2 Purpose and intent of rules.
156.3 Applications; number of copies; general requirements.
156.4 Form of exhibits to be attached to applications.
156.5 Exhibits.
156.6 Acceptance for filing or rejection of application.
156.7 Service of application.
156.8 Notice of application.
156.9 Protests and interventions.
156.10 Hearings.
156.11 Dismissal of application.
Authority: 52 Stat. 824, 829, 830; 56 Stat. 83, 84; 15 U.S.C.
717f, 717f(a), 717n, 717o.
Source: Order 234, 26 FR 4848, June 1, 1961, unless otherwise noted.
18 CFR 156.1 Who may apply.
Any person or municipality as defined in section 2 of the Natural Gas
Act engaged or legally authorized to engage in the local distribution of
natural or artificial gas to the public may file with the Commission an
application pursuant to the provisions of section 7(a) of the Natural
Gas Act for an order of the Commission directing a natural gas company
to extend or improve its transportation facilities, to establish
physical connection of its transportation facilities with the facilities
of, and sell natural gas to such person or municipality, and for such
purpose to extend its transportation facilities to communities
immediately adjacent to such facilities or to territory served by such
natural gas company.
18 CFR 156.2 Purpose and intent of rules.
(a) Applications filed pursuant to the provisions of section 7(a) of
the Natural Gas Act shall contain all information necessary to advise
the Commission fully concerning the applicant, the service which
applicant requests the Commission to direct the natural gas company to
render together with a description of any improvement or extension of
facilities which the natural gas company would be required to make in
connection with the rendition of the service, applicant's present and
proposed operations, construction, service, and sales together with a
description of any extension or improvement of facilities by applicant
which would be required to enable applicant to engage in the local
distribution of natural gas.
(b) Every requirement of this part shall be considered as an
obligation upon the applicant which can be avoided only by a definite
and positive showing that the information or data required by the
applicable section of the regulations is not necessary to the
consideration and ultimate determination of the application.
(c) This part will be strictly applied to all applications as
submitted and the burden of adequate presentation in understandable form
as well as justification for omitted data or information rests with the
applicant.
(d) Under this part, the natural gas company from which applicant is
seeking the service is a party respondent to the proceeding.
18 CFR 156.3 Applications; number of copies; general requirements.
(a) Applicable rules. An original and 7 conformed copies of an
application under this part shall be filed with the Commission. The
Commission reserves the right to request additional copies. In all
other respects applications shall conform to the requirements of 156.1
through 156.5. Amendments to or withdrawals of applications shall be
filed in accordance with the requirements of 385.213 and 385.214 of
this chapter.
(b) General content of application; filing fee. Except as provided
in paragraph (d) of this section, each application shall be accompanied
by the fee prescribed in part 159 of this subchapter and shall set forth
the following information:
(1) The exact legal name of the applicant; the name of the natural
gas company (respondent) from which applicant is seeking an extension or
improvement of transportation facilities, physical connection of
facilities or service of natural gas together with a concise description
of the extension, improvement, physical connection of facilities or
service sought from such company including the estimated volumes of
natural gas involved to meet annual and maximum day requirements for the
estimated first three years of proposed operation.
(2) Applicant's principal place of business; whether applicant is an
individual, corporation or municipality as defined in section 2 of the
Natural Gas Act; State under the laws of which applicant is
incorporated, organized or authorized; and the name, title, and mailing
address of the person or persons to whom communications concerning the
application are to be addressed.
(3) The facts relied upon by applicant to show that the proposed
extension or improvement of transportation facilities, physical
connection of facilities or service and sale of natural gas are
necessary or desirable in the public interest.
(4) A concise description of applicant's operations, if any, at the
time the application is filed.
(5) A concise description of applicant's proposed operations,
construction, service and sales together with a description of any
extension or improvement of facilities by applicant which would be
required to enable applicant to engage in the local distribution of
natural gas and including the proposed dates for the beginning and
completion of construction and commencement of operations.
(6) A full statement concerning and description of any certificate of
public convenience and necessity, franchise or other authorization which
applicant has applied for or received from any State commission or
municipality covering its proposed operations.
(7) A full statement as to whether any other application must be or
is to be filed by applicant with any other Federal or State body, or
other political subdivision or agency of a State to enable applicant to
engage in the local distribution of natural gas in the territory it
proposes to serve.
(8) Each application shall contain a table of contents which shall
list all exhibits and documents filed in compliance with 156.1 through
156.2, as well as other documents and exhibits filed therewith,
identifying them by their appropriate titles and alphabetical letter
designations specified in 156.5. The alphabetical designation specified
in 156.5 must be adhered to strictly and any additional exhibits
submitted on applicant's own volition, pursuant to 156.5(b) shall be
designated in sequence under the letter designation Z (Z1, Z2, Z3,
etc.). Together with each exhibit applicant shall set forth a full and
complete explanation of the data submitted, the manner in which it was
obtained, and the reasons for the conclusions which are derived
therefrom.
(c) Incorporation by reference. Any information required by this
part which is already on file with the Commission may be incorporated by
reference.
(d) Small distributors. A distributor requesting natural gas service
of less than 2000 Mcf per day to serve a single community may file the
information required by the form of application represented in 250.6 of
this chapter.
(Order 234, 26 FR 4848, June 1, 1961, as amended by Order 280, 29 FR
4875, Apr. 7, 1964; Order 317, 31 FR 432, Jan. 13, 1966; Order 225, 47
FR 19057, May 3, 1982)
18 CFR 156.4 Form of exhibits to be attached to applications.
(a) General requirements. Each exhibit shall contain a title page
showing applicant's name, Docket No. CP- ------ (number designation to
be left blank), title of exhibit, and if exhibit consists of 10 or more
pages a table of contents citing by page, section number or subdivision
the component elements or matters contained therein.
(b) Measurement base. All gas volumes shall be stated upon a uniform
basis of measurement, and, in addition, if the uniform basis of
measurement used in any application is other than 14.73 p.s.i.a., then
the volume or volumes of natural gas to be received from any source and
delivered by applicant shall also be stated upon a basis of 14.73
p.s.i.a. Similarly, total volumes on all summary sheets, as well as
grand totals of volumes in any exhibit, shall also be stated upon a
basis of 14.73 p.s.i.a. if the basis of measurement used is other than
14.73 p.s.i.a.
18 CFR 156.5 Exhibits.
(a) Exhibits to be submitted with application. All of the following
exhibits shall be submitted with the application when tendered for
filing. Such exhibits may be attached to the application or furnished
in a separate volume or separate volumes designated ''Exhibits to
Application.'' Such separate volume or volumes shall indicate on the
cover thereof applicant's name and bear Docket No. CP- ------ (number
designation to be left blank).
(1) Exhibit A -- Articles of incorporation and bylaws. If applicant
is not an individual, a conformed copy of its articles of incorporation
and bylaws, or other similar documents. One certified copy shall be
submitted with the original application.
(2) Exhibit B -- State and local authorizations. (i) A copy of any
certificate of public convenience and necessity or similar authorization
which applicant has obtained from the State commission or commissions of
each of the States in which applicant engages or proposes to engage in
the local distribution of natural gas; (ii) a copy of any franchise or
similar authorization which applicant has obtained from each of the
municipalities in which applicant engages or proposes to engage in the
local distribution of natural gas; and (iii) a copy of any other
authorization or form of consent which applicant has obtained from any
State, State commission, municipality or from any agency of the Federal
government necessary or incidental to applicant's proposal to engage in
the local distribution of natural gas. One certified copy of each of
the documents specified in paragraphs (a)(2) (i), (ii), and (iii) of
this section shall be submitted as exhibits to the original application.
(3) Exhibit C -- Officials. A list of the names and business
addresses of applicant's officers and directors, or similar officials if
applicant is not a corporation.
(4) Exhibit D -- Subsidiaries and affiliation. If applicant or any
of its officers or directors, directly or indirectly, owns, controls, or
holds with power to vote, 10 percent or more of the outstanding voting
securities of any other person or organized group of persons engaged in
production, transportation, distribution, or sale of natural gas, or of
any person or organized group of persons engaged in the construction or
financing of such enterprises or operations, a detailed explanation of
each such relationship, including the percentage of voting strength
represented by such ownership of securities. If any persons or
organized group of persons, directly or indirectly, owns, controls, or
holds with power to vote, 10 percent or more of the outstanding voting
securities of applicant -- give a detailed explanation of each such
relationship.
(5) Exhibit F -- Location of facilities. A geographical map of
suitable scale and detail showing all of the transmission facilities
proposed to be installed and operated by Applicant between distribution
systems of Applicant and the transmission pipeline system of the
proposed supplier (respondent), and include:
(i) Location, length, and size of applicant's transmission pipelines.
(ii) Location and size (related horsepower) of applicant's
transmission compressor stations.
(iii) Location and designation of each point of connection of
applicant's proposed transmission facilities with (a) proposed pipeline
supplier (respondent) main line industrial customers, gas pipeline or
distribution systems, showing towns and communities to be served, and
(b) gas producing and storage filed, or other sources of supply.
(iv) Location, length and size of facilities required to be installed
by the proposed supplier (respondent) necessary for the rendition of
service requested by the applicant.
(6) Exhibit G -- Flow diagram showing daily design capacity and
reflecting operation with proposed transmission facilities. A flow
diagram showing daily design capacity of all transmission facilities
proposed to be installed and operated by applicant between distribution
facilities of applicant and the transmission pipeline system of the
proposed supplier (respondent) including the following:
(i) Diameter, wall thickness, and length of pipe to be installed.
(ii) For each transmission compressor station, the size, type, and
number of compressor units, horsepower required, horsepower to be
installed, volume of gas to be used as fuel, suction and discharge
pressures, and compression ratio.
(iii) Pressures and volumes of gas at the main line inlet and outlet
connections at each compressor station.
(iv) Pressures and volumes of gas at each intake and takeoff point
and at the beginning and terminus of all proposed transmission
facilities.
(7) Exhibit G-I -- Flow diagram reflecting maximum capabilities. If
Exhibit G does not reflect the maximum deliveries of all transmission
facilities, proposed to be installed and operated by applicant between
distribution facilities of applicant and the transmission pipeline
system of the proposed supplier (respondent), under most favorable
operating conditions, without installation of any facilities in addition
to those proposed in the application, include an additional diagram or
diagrams to depict such maximum capabilities.
(8) Exhibit G-II -- Flow diagram data. Exhibits G and G-I shall be
accompanied by a statement of engineering design data in explanation and
support of the diagrams and the proposed project, setting forth:
(i) Assumption, bases, formulae, and methods used in the development
and preparation of such diagrams and accompanying data.
(ii) A description of the transmission pipe and fittings to be
installed, specifying the diameter, wall thickness, yield point,
ultimate tensile strength, method of fabrication, and methods of testing
proposed.
(iii) Type, capacity, and location of each natural gas storage field
or facility, or other similar plant or facility directly attached to the
applicant's transmission system.
(9) Exhibit H -- Total gas supply data. A statement of the total gas
supply committed to, controlled by, or possessed by an applicant which
is available to it for the acts and the services proposed, together
with:
(i) The estimated total volume of proven reserves in place for each
reservoir in each field from which applicant takes natural gas, giving
names and location of fields (state, county, or parish).
(ii) The estimated total volumes of proven reserves available to
applicant by fee or under lease, segregated by gas fields and reservoirs
thereof, giving names and locations of fields (state, county, or
parish).
(iii) The names and addresses of persons with whom applicant has gas
purchase contracts, the effective dates and remaining terms in years of
such contracts.
(iv) A study, showing the daily volumes of natural gas which can and
are proposed to be obtained each year from each source of supply.
(v) Estimate of the Btu content of the gas available to or requested
by applicant for proposed service.
(vi) A study of each proposed gas storage field showing: Location;
geology; original and present reserves for each reservoir; original
and present pressure of each reservoir; proposed top and base storage
pressures; proposed top and base gas volumes to be stored; a
deliverability study, including daily and annual injection and
withdrawal rates and pressures; and maximum daily deliverability and
maximum storage capacity under the proposed plan of development.
(10) Exhibit I -- Market data. An estimate by distribution systems
of the volumes of gas to be delivered during the year in which proposed
service is estimated to begin and during each of the first 3 full years
of operation of the proposed facilities, and actual data of like import
for each of the 3 years next preceding the filing of the application,
together with:
(i) Names and locations of areas to be served, showing the number of
residential, commercial, firm industrial, interruptible industrial,
residential space heating, commercial space heating, and other types of
customers for each distribution system to be served; and the names and
locations of each firm and interruptible direct industrial customer
whose estimated consumption totals 10,000 Mcf or more in any calendar
month or 100,000 Mcf or more per year.
(ii) Applicant's total annual and peak day gas requirements by
classification of service in paragraph (a)(10)(i) of this section,
divided as follows: Gas requirements (a) for each distribution area
where gas is sold or to be sold by applicant at retail; (b) for all
main-line direct industrial customers and (c) company use and
unaccounted-for gas.
(iii) Total past and expected curtailments of service by the
applicant in each distribution area proposed to be supplied with gas
from the project, all to be listed by the classifications of service as
indicated in paragraph (a)(10)(i) of this section.
(iv) Explanation of basic factors used in estimating future
requirements, including, for example: Peak day and annual degree day
deficiencies, annual load factors of applicant's deliveries to its
proposed customers; derivation of numbers of customers proposed to be
served; individual consumer peak day and annual consumption factors for
each class of consumers, with supporting historical data; forecasted
saturation of space heating as related to past experience; and full
detail as to all other sources of gas supply available to applicant and
to each of its customers, including manufacturing facilities and liquid
petroleum gas.
(v) A full description of all facilities, other than transmission
facilities, necessary to provide service in the communities to be
served.
(vi) A copy of each market survey made within the past 3 years for
the markets proposed to be served.
(11) Exhibit J -- Conversion to natural gas. If it is assumed that
proposed customers in new areas or firm and interruptible direct
industrial customers whose estimated consumption totals 10,000 Mcf or
more in any calendar month or 100,000 Mcf or more in any calendar year
will convert from other fuels to natural gas, state the basis for such
assumption and include a study showing estimated cost of converting
customers' facilities to natural gas. The study should indicate the
number of customers of each of the other fuels who applicant anticipates
will convert to natural gas and the current cost of fuel to be displaced
compared to the cost of natural gas on an equivalent Btu basis.
(12) Exhibit K -- Cost of facilities. A detailed estimate of total
capital cost of the proposed facilities involved in the application,
showing cost of construction by operating units such as distribution
facilities, compressor stations, transmission pipelines and laterals,
measuring and regulating stations, and separately stating the cost of
rights-of-way, damages, surveys, materials, labor, engineering and
inspection, administrative overhead, fees for legal and other services,
allowance for funds used during construction, and contingencies.
Detailed estimates of cost of facilities required to be installed by the
pipeline supplier shall be separately stated.
(13) Exhibit L -- Financing. Plans for financing the proposed
facilities for which the application is filed, together with:
(i) A detailed description of applicant's outstanding and proposed
securities and liabilities, showing amount (face value and number),
interest or dividend rate, dates of issue and maturity, voting
privileges, and principal terms and conditions applicable to each.
(ii) The manner in which applicant proposes to dispose of securities
by private sale, competitive bidding or otherwise; the persons, if
known, to whom they will be sold or issued, and evidence that such
persons having agreed to purchase the securities, and if not known, the
class or classes of such persons.
(iii) A statement showing for each proposed issue, by total amount
and by unit, the estimated sale price and estimated net proceeds to the
applicant.
(iv) A statement as to the extent to which the applicant will rely on
temporary financing in connection with the proposed construction, and
statements tending to substantiate the fact that such temporary loans
will be made available.
(v) Statement of anticipated cash flow, including provision during
the period of construction and the first 3 full years of proposed
operation for interest requirements, dividends, and capital retirements.
(vi) Statement showing, over the life of each issue, the annual
amount of securities which applicant expects to retire through operation
of a sinking fund or other extinguishment of the obligation.
(vii) A balance sheet and income statement (12 months) of most recent
date available.
(viii) Comparative pro forma balance sheets and income statements for
the period of construction and each of the first 3 full years of
operation, giving effect to the proposed construction and proposed
financing of the project.
(ix) Any additional data and information upon which applicant
proposes to rely in showing the adequacy and availability to it of
resources for financing its proposed project.
(14) Exhibit M -- Construction, operation, and management. A concise
statement setting forth arrangements for supervision, management,
engineering, accounting, legal, or other similar service to be rendered
in connection with the construction or operation of the project if not
to be performed by employees of applicant, including reference to any
existing or contemplated agreements therefor.
(15) Exhibit N -- Revenues, expenses income. Applicant shall submit
pro forma statements for each of the first 3 full years of operation of
all the proposed facilities, showing:
(i) Gas system annual revenues and volumes of natural gas related
thereto subdivided by classes of service and further subdivided by sales
to direct industrial customers, sales to other utilities (if any),
transportation for other gas utilities and other sales.
(ii) Gas system annual operating expenses, cost of gas purchased,
depreciation, depletion, taxes, utility income and resulting rate of
return on net investment in gas plant, including working capital, or in
the case of a municipality applicant similar data and
amortization-interest schedule for life of each bond issue related to
the proposed project. Cost of gas purchased shall be at the currently
effective applicable rate of the pipeline supplier or applicable rate
filed by such pipeline supplier, but not effective at date of filing,
whichever is the higher.
(iii) The information required by paragraphs (a)(15)(i) and (ii) of
this section need not be furnished when the applicant furnishes as a
part of its application a pro forma copy of a certificate of convenience
and necessity or similar authorization issued to it by the local State
commission having jurisdiction over its proposed operations.
(16) Exhibit P -- Rates. (i) A statement of the rates proposed to be
charged for the proposed services to be rendered. Indicate whether
rates are subject to regulation by the State or local authorities.
(ii) Identification of the rate schedule of the natural gas company
(respondent) under which gas is proposed to be purchased.
(b) Additional exhibits. Applicant shall submit additional exhibits
necessary to support or clarify its application. Such exhibits shall be
identified and designated as provided by 156.3(b)(8).
(c) Additional information. Upon request by the Secretary, prior to
or during hearing upon the application, applicant shall submit such
additional data, information, exhibits, or other detail as may be
specified.
(Order 234, 26 FR 4848, June 1, 1961, as amended by Order 280, 29 FR
4876, Apr. 7, 1964; Order 436, 36 FR 15530, Aug. 17, 1971; Order 225,
47 FR 19057, May 3, 1982)
18 CFR 156.6 Acceptance for filing or rejection of application.
Applications will be docketed when received and the applicant so
advised. Any application which does not conform to the requirements of
156.1 through 156.5 will be rejected by the Secretary. All but one
copy of a rejected application will be returned. An application which
relates to an operation concerning which a prior application has been
filed and rejected, shall be docketed as a new application. Such new
application shall state the docket number of the prior rejected
application.
18 CFR 156.7 Service of application.
After an application has been accepted for filing, the Secretary will
cause a copy thereof to be served upon the natural gas company
(respondent) against which an order pursuant to section 7(a) of the
Natural Gas Act has been requested. The natural gas company shall,
within 30 days after the date of service of such application file its
answer (an original and 7 conformed copies) to such application in which
it shall state whether it has any objection to the grant of the
application. If the natural gas company objects to the grant of the
relief sought by the application, it shall fully state the grounds and
reasons for its objections. The answer shall be verified and shall be
signed by an executive of the natural gas company. In the event that
the respondent natural gas company fails to file a timely response to
the application it shall be deemed to have agreed to the grant thereof.
(Order 302, 30 FR 9302, July 27, 1965, as amended by Order 225, 47 FR
19057, May 3, 1982)
18 CFR 156.8 Notice of application.
Notice of each application filed, except when rejected in accordance
with 156.6, will be published in the Federal Register and copies of
such notice mailed to the State affected thereby.
18 CFR 156.9 Protests and interventions.
Notices of applications, as provided by 156.8 will fix the time
within which any person desiring to participate in the proceeding or to
file a protest regarding the application, may file a petition to
intervene or protest, and within which any interested regulatory agency
desiring to intervene may file its notice of intervention. Failure to
make timely filing will constitute ground for denial of participation,
in the absence of extraordinary circumstances for good cause shown.
18 CFR 156.10 Hearings.
The Commission will schedule each application for public hearing at
the earliest possible date giving due consideration of statutory
requirements and other matters pending, with notice thereof as provided
by 385.2009 of this chapter: Provided, however, That where no protests
or petitions to intervene have been received and accepted, the
Commission may, after the due date for such protests or petitions to
intervene, issue the requested order without hearing.
(Order 234, 26 FR 4848, June 1, 1961, as amended by Order 225, 47 FR
19057, May 3, 1982)
18 CFR 156.11 Dismissal of application.
Except for good cause shown, failure of an applicant to go forward on
the date set for hearing and present its full case in support of its
application will constitute ground for the summary dismissal of the
application and the termination of the proceedings.
18 CFR 156.11 Pt. 157
18 CFR 156.11 PART 157 -- APPLICATIONS FOR CERTIFICATES OF PUBLIC CONVENIENCE AND NECESSITY AND FOR ORDERS PERMITTING AND APPROVING ABANDONMENT UNDER SECTION 7 OF THE NATURAL GAS ACT
18 CFR 156.11 Subpart A -- Applications for Certificates of Public
Convenience and Necessity and for Orders Permitting and Approving
Abandonment Under Section 7 of the Natural Gas Act, as Amended,
Concerning Any Operation, Sales, Service, Construction, Extension,
Acquisition or Abandonment
Sec.
157.5 Purpose and intent of rules.
157.6 Applications; general requirements.
157.7 Abbreviated applications.
157.8 Acceptance for filing or rejection of applications.
157.9 Notice of application.
157.10 Interventions and protests.
157.11 Hearings.
157.12 Dismissal of application.
157.13 Form of exhibits to be attached to applications.
157.14 Exhibits.
157.15 Requirements for applications covering acquisitions.
157.16 Exhibits relating to acquisitions.
157.17 Applications for temporary certificates in cases of emergency.
157.18 Applications to abandon facilities or service; exhibits.
157.20 General conditions applicable to certificates.
157.21 Abandonment of purchases.
18 CFR 156.11 Subpart B -- Filings by Producers and Gatherers of
Natural Gas Which Are Also Natural Gas Companies
157.23 Applications for certificates of public convenience and
necessity by independent producer.
157.24 Contents of application.
157.25 Necessary exhibits.
157.26 Form of filing.
157.27 Other information.
157.28 Temporary authorizations.
157.30 Abandonment of service.
157.39 Applicability of 157.23 through 157.30.
157.40 Exemption of small producers from certain filing requirements.
157.41 Condition for producer certificates of public convenience and
necessity.
18 CFR 156.11 Subpart C -- (Reserved)
18 CFR 156.11 Subpart D -- Exemption of Natural Gas Service for
Drilling, Testing, or Purging from Certificate Requirements
157.53 Drilling of gas or oil wells and testing or purging of new
natural gas pipeline facilities.
18 CFR 156.11 Subpart E -- Optional Certificate and Abandonment
Procedures for Applications for New Service Under Section 7 of the
Natural Gas Act
157.100 General.
157.101 Definitions.
157.102 Contents of application and other pleadings.
157.103 Terms and contitions; other requirements.
157.104 Hearings.
157.105 Issuance of certificate.
157.106 Protests to abandonment of new service.
18 CFR 156.11 Subpart F -- Interstate Pipeline Blanket Certificates and
Authorization Under Section 7 of the Natural Gas Act for Certain
Transactions and Abandonment
157.201 Applicability.
157.202 Definitions.
157.203 Blanket certification.
157.204 Application procedure.
157.205 Notice procedure.
157.206 Standard conditions.
157.207 General reporting requirements.
157.208 Construction, acquisition, operation, and miscellaneous
rearrangement of facilities.
157.209 (Reserved)
157.210 Sales for resale.
157.211 Sales taps.
157.212 Changes in delivery points.
157.213 Storage services.
157.214 Increase in storage capacity.
157.215 Underground storage testing and development.
157.216 Abandonment.
157.217 Changes in rate schedules.
157.218 Changes in customer name.
the National Historic Preservation
Act of 1966 Under 157.206(d)(3)(ii)
18 CFR 156.11 Subpart G -- Natural Gas Producer Blanket Authorization
for Sales and Abandonment
157.301 Blanket certificate authority, pre-granted abandonment, and
reporting requirements.
Authority: 15 U.S.C. 717-717w, 3301-3432; 42 U.S.C. 7101-7352.
18 CFR 156.11 Subpart A -- Applications for Certificates of Public Convenience and Necessity and for Orders Permitting and Approving Abandonment under Section 7 of the Natural Gas Act, as Amended, Concerning Any Operation, Sales, Service, Construction, Extension, Acquisition or Abandonment
18 CFR 157.5 Purpose and intent of rules.
(a) Applications under section 7 of the Natural Gas Act shall set
forth all information necessary to advise the Commission fully
concerning the operation, sales, service, construction, extension, or
acquisition for which a certificate is requested or the abandonment for
which permission and approval is requested. Some applications may be of
such character that an abbreviated application may be justified under
the provisions of 157.7. Applications for permission and approval to
abandon pursuant to section 7(b) of the Act shall conform to 157.18 and
to such other requirements of this part as may be pertinent. However,
every applicant shall file all pertinent data and information necessary
for a full and complete understanding of the proposed project, including
its effect upon applicant's present and future operations and whether,
and at what docket, applicant has previously applied for authorization
to serve any portion of the market contemplated by the proposed project
and the nature and disposition of such other project.
(b) Every requirement of this part shall be considered as a
forthright obligation of the applicant which can only be avoided by a
definite and positive showing that the information or data called for by
the applicable rules is not necessary for the consideration and ultimate
determination of the application.
(c) This part will be strictly applied to all applications as
submitted and the burden of adequate presentation in intelligible form
as well as justification for omitted data or information rests with the
applicant.
(17 FR 7386, Aug. 14, 1952, as amended by Order 280, 29 FR 4876, Apr.
7, 1964)
18 CFR 157.6 Applications; general requirements.
(a) Applicable rules -- (1) Submission required to be furnished by
applicant under this subpart. Applications, amendments thereto, and all
exhibits and other submissions required to be furnished by an applicant
to the Commission under this subpart must be submitted in an original
and 7 conformed copies until October 31, 1989 and thereafter on
electronic media in the manner prescribed in 385.2011 of this chapter.
To the extent that data required under this subpart has been provided to
the Commission, this data need not be duplicated. The applicant must,
however, include a statement identifying the forms and records
containing the required information and when that form or record was
submitted. Applicants making an electronic data submission must submit
one copy of applications and other submissions on electronic media and
paper copies as prescribed in 385.2011 of this chapter. All
submissions in electronic media form must conform in all respects to the
requirements listed in 385.2011 of this chapter.
(2) Maps and diagrams. An applicant required to submit a map or
diagram under this subpart must submit one paper copy of the map or
diagram.
(3) Waivers of electronic filing requirement. (i) An applicant may
request a partial or full waiver of the requirement that submissions
under this subpart be furnished on electronic media. The request for
waiver must be filed in accordance with 385.2011 of this chapter.
(ii) If a request for waiver is granted, the applicant must furnish a
submission in the manner specified by the Commission in the decision
granting waiver.
(4) Other requirements. Applications under section 7 of the Natural
Gas Act must conform to the requirements of 157.5 through 157.14 of
this chapter. Amendments to or withdrawals of applications must conform
to the requirements of 385.213 and 385.214 of this chapter. If the
application involves an acquisition of facilities, it must conform to
the additional requirements prescribed in 157.15 and 157.16.
(b) General content of application; filing fee. Each application
filed other than an application for permission and approval to abandon
pursuant to section 7(b) shall be accompanied by the fee prescribed in
part 381 of this chapter or a petition for waiver pursuant to 381.106
of this chapter and shall set forth the following information:
(1) The exact legal name of applicant; its principal place of
business; whether an individual, partnership, corporation, or
otherwise; State under the laws of which organized or authorized; and
the name, title, and mailing address of the person or persons to whom
communications concerning the application are to be addressed.
(2) The facts relied upon by applicant to show that the proposed
service, sale, operation, construction, extension, or acquisition is or
will be required by the present or future public convenience and
necessity.
(3) A concise description of applicant's existing operations.
(4) A concise description of the proposed service, sale, operation,
construction, extension, or acquisition, including the proposed dates
for the beginning and completion of construction, the commencement of
operations and of acquisition, where involved.
(5) A full statement as to whether any other application to
supplement or effectuate applicant's proposals must be or is to be filed
by applicant, any of applicant's customers, or any other person, with
any other Federal, State, or other regulatory body; and if so, the
nature and status of each such application.
(6) A table of contents which shall list all exhibits and documents
filed in compliance with 157.5 through 157.18, as well as all other
documents and exhibits otherwise filed, identifying them by their
appropriate titles and alphabetical letter designations. The
alphabetical letter designations specified in 157.14, 157.16, and
157.18 must be strictly adhered to and extra exhibits submitted at the
volition of applicant shall be designated in sequence under the letter Z
(Z1, Z2, Z3, etc.).
(7) A form of notice suitable for publication in the Federal
Register, as contemplated by 157.9, which will briefly summarize the
facts contained in the application in such way as to acquaint the public
with its scope and purpose.
(c) Requests for shortened procedure. If shortened procedure is
desired a request therefor shall be made in conformity with 385.802 of
this chapter and may be included in the application or filed separately.
(17 FR 7386, Aug. 14, 1952, as amended by Order 196, 22 FR 2882, Apr.
24, 1957; Order 217, 24 FR 9474, Nov. 25, 1959; Order 280, 29 FR 4876,
Apr. 7, 1964; Order 317, 31 FR 432 Jan. 13, 1966; Order 225, 47 FR
19057, May 3, 1982; Order 433, 50 FR 40345, Oct. 3, 1985; Order 493,
53 FR 15028, Apr. 27, 1988; Order 493-B, 53 FR 49653, Dec. 9, 1988)
18 CFR 157.7 Abbreviated applications.
(a) General. When the operations sales, service, construction,
extensions, acquisitions or abandonment proposed by an application do
not require all the data and information specified by this part to
disclose fully the nature and extent of the proposed undertaking, an
abbreviated application may be filed in the manner prescribed in
385.2011 of this chapter, provided it contains all information and
supporting data necessary to explain fully the proposed project, its
economic justification, its effect upon applicant's present and future
operations and upon the public proposed to be served, and is otherwise
in conformity with the applicable requirements of this part regarding
form, manner of presentation, and filing. Such an application shall (1)
state that it is an abbreviated application; (2) specify which of the
data and information required by this part are omitted; and (3) relate
the facts relied upon to justify separately each such omission.
(Order 280, 29 FR 4876, Apr. 7, 1964)
Editorial Note: For Federal Register citations affecting 157.7, see
the List of CFR Sections Affected in the Finding Aids section of this
volume.
18 CFR 157.8 Acceptance for filing or rejection of applications.
Applications will be docketed when received and the applicant so
advised. If an application does not conform to the requirements of this
part the Director of the Office of Pipeline and Producer Regulation will
notify the applicant of all deficiencies. Deficient applications not
amended within 20 days of the notice of deficiency, or such longer
period as may be specified in the notice of deficiency, will be rejected
by the Director of the Office of Pipeline and Producer Regulation as
provided by 385.2001(b) of this chapter. Copies of a rejected
application will be returned. An application which relates to an
operation, sale, service, construction, extension, acquisition, or
abandonment, concerning which a prior application has been filed and
rejected, shall be docketed as a new application. Such new application
shall state the docket number of the prior rejected application.
(Order 280, 29 FR 4876, Apr. 7, 1964, as amended at 43 FR 36437, Aug.
17, 1978; Order 225, 47 FR 19057, May 3, 1982)
18 CFR 157.9 Notice of application.
Notice of each application filed, except when rejected in accordance
with 157.8, will be published in the Federal Register and copies of
such notice mailed to States affected thereby. Persons desiring to
receive a copy of the notice of every application shall so advise the
Secretary.
(17 FR 7386, Aug. 14, 1952)
18 CFR 157.10 Interventions and protests.
Notices of applications, as provided by 157.9, will fix the time
within which any person desiring to participate in the proceeding may
file a petition to intervene, and within which any interested regulatory
agency, as provided by 385.214 of this chapter, desiring to intervene
may file its notice of intervention. Any person filing a petition to
intervene or notice of intervention shall state specifically whether he
seeks formal hearing on the application. Failure to make timely filing
will constitute ground for denial of participation in the absence of
extraordinary circumstances for good cause shown. A copy of each
application, supplement and amendment thereto, including exhibits
required by 157.14, 157.16 and 157.18 which are specifically
requested, shall upon request be promptly supplied by the applicant to
anyone who has filed a petition for leave to intervene or given notice
of intervention. Protests may be filed in accordance with 385.211 of
this chapter within the time permitted by any person who does not seek
to participate in the proceeding.
(Order 280, 29 FR 4877, Apr. 7, 1964, as amended by Order 225, 47 FR
19057, May 3, 1982; 48 FR 786, Jan. 7, 1983)
18 CFR 157.11 Hearings.
(a) General. The Commission will schedule each application for
public hearing at the earliest date possible giving due consideration to
statutory requirements and other matters pending, with notice thereof as
provided by 1.19(b) of this chapter: Provided, however, That when an
application is filed less than fifteen days prior to the commencement of
a hearing theretofore ordered on a pending application and seeks
authority to serve some or all of the markets sought in such pending
application or is otherwise competitive with such pending application,
the Commission will not schedule the new application for hearing until
it has rendered its final decision on such pending application, except
when, on its own motion, or on appropriate application, it finds that
the public interest requires otherwise.
(b) Shortened procedure. If no protest or petition to intervene
raises an issue of substance, the Commission may upon request of the
applicant dispose of an application in accordance with the provisions of
385.802 of this chapter.
(17 FR 7386, Aug. 14, 1952, as amended by Order 225, 47 FR 19057, May
3, 1982)
18 CFR 157.12 Dismissal of application.
Except for good cause shown, failure of an applicant to go forward on
the date set for hearing and present its full case in support of its
application will constitute ground for the summary dismissal of the
application and the termination of the proceedings.
(17 FR 7386, Aug. 14, 1952)
18 CFR 157.13 Form of exhibits to be attached to applications.
Each exhibit attached to an application must conform to the following
requirements:
(a) General requirements. Each exhibit must be submitted in the
manner prescribed in 157.6(a) and 385.2011 of this chapter and contain
a title page showing applicant's name, docket number (to be left blank),
title of the exhibit, the proper letter designation of the exhibit, and,
if of 10 or more pages, a table of contents, citing by page, section
number or subdivision, the component elements or matters therein
contained.
(b) Reference to annual reports and previous applications. An
application may refer to annual reports and previous applications filed
with the Commission and shall specify the exact pages or exhibit numbers
of the filing to which reference is made, including the page numbers in
any exhibit to which reference is made. When reference is made to a
previous application the docket number shall be stated. No part of a
rejected application may be incorporated by reference.
(c) Interdependent applications. When an application considered
alone is incomplete and depends vitally upon information in another
application, it will not be accepted for filing until the supporting
application has been filed. When applications are interdependent, they
shall be filed concurrently.
(d) Measurement base. All gas volumes, including gas purchased from
producers, shall be stated upon a uniform basis of measurement, and, in
addition, if the uniform basis of measurement used in any application is
other than 14.73 p.s.i.a., then any volume or volumes delivered to or
received from any interstate natural-gas pipeline company shall also be
stated upon a basis of 14.73 p.s.i.a.; similarly, total volumes on all
summary sheets, as well as grand totals of volumes in any exhibit, shall
also be stated upon a basis of 14.73 p.s.i.a. if the uniform basis of
measurement used is other than 14.73 p.s.i.a.
(17 FR 7387, Aug. 14, 1952, as amended by Order 185, 21 FR 1486, Mar.
8, 1956; Order 280, 29 FR 4877, Apr. 7, 1964; Order 493, 53 FR 15029,
Apr. 27, 1988)
18 CFR 157.14 Exhibits.
(a) To be attached to each application. All exhibits specified must
accompany each application when tendered for filing. Together with each
exhibit applicant must provide a full and complete explanation of the
data submitted, the manner in which it was obtained, and the reasons for
the conclusions derived from the exhibits. If the Commission determines
that a formal hearing upon the application is required or that testimony
and hearing exhibits should be filed, the Secretary will promptly notify
the applicant that submittal of all exhibits and testimony of all
witnesses to be sponsored by the applicant in support of his
case-in-chief is required. Submittal of these exhibits and testimony
must be within 20 days from the date of the Secretary's notice, or any
other time as the Secretary will specifiy. On or after October 31,
1989, exhibits, except exhibits F, F-1, G, G-I, G-II, and H(iv), must be
submitted to the Commission on electronic media as prescribed in
385.2011 of this chapter. Interveners and persons becoming interveners
after the date of the Secretary's notice must be advised by the
applicant of the afore-specified exhibits and testimony, and must be
furnished with copies upon request.
(1) Exhibit A -- Articles of incorporation and bylaws. If applicant
is not an individual, a conformed copy of its articles of incorporation
and bylaws, or other similar documents.
(2) Exhibit B -- State authorization. For each State where applicant
is authorized to do business, a statement showing the date of
authorization, the scope of the business applicant is authorized to
carry on and all limitations, if any, including expiration dates and
renewal obligations. A conformed copy of applicant's authorization to
do business in each State affected shall be supplied upon request.
(3) Exhibit C -- Company officials. A list of the names and business
addresses of applicant's officers and directors, or similar officials if
applicant is not a corporation.
(4) Exhibit D -- Subsidiaries and affiliation. If applicant or any
of its officers or directors, directly or indirectly, owns, controls, or
holds with power to vote, 10 percent or more of the outstanding voting
securities of any other person or organized group of persons engaged in
production, transportation, distribution, or sale of natural gas, or of
any person or organized group of persons engaged in the construction or
financing of such enterprises or operations, a detailed explanation of
each such relationship, including the percentage of voting strength
represented by such ownership of securities. If any person or organized
group of persons, directly or indirectly, owns, controls, or holds with
power to vote, 10 percent or more of the outstanding voting securities
of applicant -- a detailed explanation of each such relationship.
(5) Exhibit E -- Other pending applications and filings. A list of
other applications and filings under sections 1, 3, 4 and 7 of the
Natural Gas Act filed by the applicant which are pending before the
Commission at the time of the filing of an application and which
directly and significantly affect the application filed, including an
explanation of any material effect the grant or denial of those other
applications and filings will have on the application and of any
material effect the grant or denial of the application will have on
those other applications and filings.
(6) Exhibit F -- Location of facilities. Unless shown on Exhibit G
or elsewhere, a geographical map of suitable scale and detail showing,
and appropriately differentiating between all of the facilities proposed
to be constructed, acquired or abandoned and existing facilities of
applicant, the operation or capacity of which will be directly affected
by the proposed facilities or the facilities proposed to be abandoned.
This map, or an additional map, shall clearly show the relationship of
the new facilities to the applicant's overall system and shall include:
(i) Location, length, and size of pipelines.
(ii) Location and size (rated horsepower) of compressor stations.
(iii) Location and designation of each point of connection of
existing and proposed facilities with (a) main-line industrial
customers, gas pipeline or distribution systems, showing towns and
communities served and to be served at wholesale and retail, and (b)
gas-producing and storage fields, or other sources of gas supply.
(6-a) Exhibit F-1 -- Factors considered in use of joint
rights-of-way. (i) Unless shown on Exhibit F, Exhibit G, or elsewhere,
applicant shall submit, for areas where construction will not be on
applicant's currently used rights-of-way or immediately adjacent
thereto, a map or diagram of all facilities proposed to be constructed
showing existing rights-of-way belonging either to applicant or to
others such as pipelines, electric powerlines, highways, and railroads
which could practically be used.
(ii) In addition to such map or diagram applicant shall submit a
brief statement explaining which of such rights-of-way it intends to use
or consider using.
(iii) The statement may indicate that, while applicant intends to use
the proposed right-of-way at the date of filing of the application or
amendment or supplement thereto, it is understood that the actual
construction of the proposed facility may require routing deviations
because of unanticipated obstacles or difficulties.
(iv) Applicant will not be required to submit revisions to Exhibit
F-1 unless requested by the Commission or unless the routing of the
pipeline is substantially revised by applicant prior to beginning of
construction.
(6-b) Exhibit F-II -- Factors considered in locating facilities in
scenic, historic, recreational or wildlife areas. Where a proposed
facility will or may be located in or routed through any of the national
historic places listed in the National Register of Historic Places
maintained by the Secretary of the Interior, natural landmarks listed in
the National Register of Natural Landmarks maintained by the Secretary
of the Interior or through any park, scenic, wildlife, or recreational
areas, officially designated by duly constituted public authorities, and
where such facility may have a significant effect on the scenic,
historic, wildlife or recreational values of such areas, applicant shall
state the reason for such location and shall list Federal, State and
local agencies having jurisdiction which have been or will be consulted
prior to construction.
(6-c) Exhibit F-III -- Statement on adoption of guidelines concerning
right-of-way and construction activities. A statement that the
guidelines set forth in 2.69 of this chapter have been adopted by the
applicant, that the relevant portions thereof have been or will be
issued to construction personnel of applicant, and as to what
appropriate instructions will be issued to contractors and others
involved in implementation of the guidelines.
(6-d) Exhibit F-IV. Exhibit F-IV -- Statement by the Applicant
Concerning the Requirements of the National Environmental Policy Act of
1969, Pub. L. 91-190, 83 Stat. 852, title I, section 102. All
applications governed by 157.7 (b), (c), (d), and (g) shall include a
brief statement concerning the following factors:
(i) The environmental impact of the proposed actions,
(ii) Any adverse environmental effects which cannot be avoided should
the proposal be implemented,
(iii) Alternatives to the proposed action,
(iv) The relationship between local short-term uses of man's
environment and the maintenance and enhancement of long-term
productivity, and
(v) Any irreversible and irretrievable commitments of resources which
would be involved in the porposed action should it be implemented.
(7) Exhibit G -- Flow diagrams showing daily design capacity and
reflecting operation with and without proposed facilities added. A flow
diagram showing daily design capacity and reflecting operating
conditions with only existing facilities in operation. A second flow
diagram showing daily design capacity and reflecting operating
conditions with both proposed and existing facilities in operation.
Both flow diagrams shall include the following for the portion of the
system affected:
(i) Diameter, wall thickness, and length of pipe installed and
proposed to be installed and the diameter and wall thickness of the
installed pipe to which connection is proposed.
(ii) For each proposed new compressor station and existing station,
the size, type and number of compressor units, horsepower required,
horsepower installed and proposed to be installed, volume of gas to be
used as fuel, suction and discharge pressures, and compression ratio.
(iii) Pressures and volumes of gas at the main line inlet and outlet
connections at each compressor station.
(iv) Pressures and volumes of gas at each intake and take-off point
and at the beginning and terminus of the existing and proposed
facilities and at the intake or take-off point of the existing
facilities to which the proposed facilities are to be connected.
(8) Exhibit G-I -- Flow diagrams reflecting maximum capabilities. If
Exhibit G does not reflect the maximum deliveries which applicant's
existing and proposed facilities would be capable of achieving under
most favorable operating conditions with utilization of all facilities,
include an additional diagram or diagrams to depict such maximum
capabilities. If the horsepower, pipelines, or other facilities on the
segment of applicant's system under consideration are not being fully
utilized due, e.g., to capacity limitation of connecting facilities or
because of the need for standby or spare equipment, the reason for such
nonutilization shall be stated.
(9) Exhibit G-II -- Flow diagram data. Exhibits G and G-I shall be
accompanied by a statement of engineering design data in explanation and
support of the diagrams and the proposed project, setting forth:
(i) Assumptions, bases, formulae, and methods used in the development
and preparation of such diagrams and accompanying data.
(ii) A description of the pipe and fittings to be installed,
specifying the diameter, wall thickness, yield point, ultimate tensile
strength, method of fabrication, and methods of testing proposed.
(iii) When lines are looped, the length and size of the pipe in each
loop.
(iv) Type, capacity, and location of each natural gas storage field
or facility, and of each dehydration, desulphurization, natural gas
liquefaction, hydrocarbon extraction, or other similar plant or facility
directly attached to the applicant's system, indicating which of such
plants are owned or operated by applicant, and which by others, giving
their names and addresses.
(v) If the daily design capacity shown in Exhibit G is predicated
upon an ability to meet each customer's maximum contract quantity on the
same day, explain the reason for such coincidental peak-day design. If
the design day capacity shown in Exhibit G is predicated upon an assumed
diversity factor, state that factor and explain its derivation.
(vi) The maximum allowable operating pressure of each proposed
facility for which a certificate is requested, as permitted by the
Department of Transportation's safety standards. The applicant shall
certify that it will design, install, inspect, test, construct, operate,
replace, and maintain the facilities for which a certificate is
requested in accordance with Federal safety standards and plans for
maintenance and inspection or shall certify that it has been granted a
waiver of the requirements of the safety standards by the Department of
Transportation in accordance with the provisions of section 3(e) of the
Natural Gas Pipeline Safety Act of 1968. Pertinent details concerning
the waiver shall be set forth.
(10) Exhibit H -- Total gas supply data. A statement of total gas
supply committed to, controlled by, or possessed by applicant which is
available to it for the acts and services proposed, together with:
(i) The estimated remaining recoverable salable gas reserves
available to applicant submitted in the form and containing all the data
and information required by FPC Form No. 15, Annual Report of Gas
Supply. (See 260.7 of this chapter.)
(ii) Deliverability studies showing the volumes of natural gas which
can and are proposed to be obtained each year submitted in the form and
containing the data and information as required by FPC Form No. 15,
Annual Report of Gas Supply.
(iii) The names and addresses of persons with whom applicant has
gas-purchase contracts and the estimated volumes of gas reserves
applicant has available under each contract, segregated by gas fields
and reservoirs thereof with names and locations of fields (State, county
or parish).
(iv) The maps required by FPC Form No. 15, Annual Report of Gas
Supply.
(v) A conformed copy of each gas-purchase contract upon which
applicant proposes to rely. Only three of the total number of copies of
Exhibit H filed need include a copy of such contract. Contracts already
on file with the Commission may be incorporated by reference without
supplying additional copies, provided such contracts are identified with
particularity by stating the exact pages of the contracts to be
incorporated by reference and the file or docket number designation to
which reference is made. The Commission or the presiding officer may
direct that additional copies of such contracts be furnished to the
Commission or to other parties to the proceeding. Any contract executed
on and after April 2, 1962, and filed in support of an applicant's gas
supply showing will be given no consideration in determining adequacy of
gas supply if it contains any price-changing provisions other than those
defined as permissible in 154.93 of this chapter.
(vi) Pipeline companies which have filed annual reports in conformity
with 260.7 of this chapter will be required to file additional
information with regard to gas supply and deliverability in support of
applications for certificates for authorization to increase existing
sales, facilities or capacity; to construct new facilities to make new
sales; to alter any type of gas service; and to attach new sources of
supply except budget-type applications filed under paragraph (b) of
157.7 of this chapter. In all other applications the pipeline company
may rely on the information set forth in said annual report, by
reference thereto, unless otherwise ordered by the Commission. When gas
supply and deliverability information is required to be in the
application and is not permitted to be incorporated by reference, such
information need pertain only to supply and deliverability for that
phase of the company operations which would be affected by the facility
or sale for which authorization is sought. In those instances, the
pipeline company may file only those portions of the annual report for
which changes have been made or which are supplemental to the annual
report then currently on file with the Commission. For each new source
of supply which is reported, the pipeline company shall file detailed
gas supply and deliverability information, including a summary of the
remaining recoverable salable gas reserves in each reservoir, all
factors used for the reserve estimate in each reservoir, a 10-year
deliverability projection for each supply source and any other
information that the Commission may require. Total system supply and
deliverability information shall be included in all applications for
authorization to serve major new markets or to serve major existing
markets from new sources of gas supply over new routes. The receipt,
maintenance, and consideration of any information received by the
Commission staff for review under this section is subject to the
requirements of 388.197 and 2.72 of this chapter and the laws of the
United States.
(vii) A study of each proposed gas storage field showing: Location;
geology; original and present reserves for each reservoir; original
and present pressure of each reservoir; proposed top and base storage
pressures; proposed top and base gas volumes to be stored; a
deliverability study, including daily and annual injection and
withdrawal rates and pressures; and maximum daily deliverability and
maximum storage capacity under the proposed plan of development.
(11) Exhibit I -- Market data. A system-wide estimate of the volumes
of gas to be delivered during each of the first 3 full years of
operation of the proposed service, sale, or facilities and during the
years when the proposed facilities are under construction, and actual
data of like import for each of the 3 years next preceding the filing of
the application, together with:
(i) Names and locations of customer companies and municipalities,
showing the number of residential, commercial, firm industrial,
interruptible industrial, residential space-heating, commercial
space-heating, and other types of customers for each distribution system
to be served at retail or wholesale; and the names and locations of
each firm and interruptible direct industrial customer whose estimated
consumption totals 10,000 Mcf or more in any calendar month or 100,000
Mcf or more per year together with an explanation of the end use to
which each of these industrial customers will put the gas.
(ii) Applicant's total annual and peak day gas requirements by
classification of service in paragraph (a)(11)(i) of this section,
divided as follows: Gas requirements (a) for each distribution area
where gas is sold by applicant at retail; (b) for each wholesale
customer; (c) for all main line direct industrial customers; and (d)
company use and unaccounted-for gas, for both the applicant and each
wholesale customer.
(iii) Total past and expected curtailments of service by the
applicant and each wholesale customer proposing to receive new or
additional supplies of gas from the project, all to be listed by the
classifications of service in paragraph (a)(11)(i) of this section.
(iv) Explanation and derivation of basic factors used in estimating
future requirements, including, for example: Peak-day and annual
degree-day deficiencies, annual load factors of applicant's system and
of its deliveries to its proposed customers; individual consumer
peak-day and annual consumption factors for each class of consumers,
with supporting historical data; forecasted saturation of space-heating
as related to past experience; and full detail as to all other sources
of gas supply available to applicant and to each of its customers,
including manufacturing facilities and liquid petroleum gas.
(v) Conformed copy of each contract, letter of intent or other
agreement for sale or transportation of natural gas proposed by the
application. Indicate the rate to be charged. If no agreements have
been made, indicate the basis for assuming that contracts will be
consummated and that service will be rendered under the terms
contemplated in the application.
(vi) A full description of all facilities, other than those covered
by the application, necessary to provide service in the communities to
be served, the estimated cost of such facilities, by whom they are to be
constructed, and evidence of economic feasibility.
(vii) A copy of each market survey made within the past three years
for such markets as are to receive new or increased service from the
project applied for.
(viii) A statement showing the franchise rights of applicant or other
person to distribute gas in each community in which service is proposed.
(ix) When an application requires a statement of total peak-day or
annual market requirements of affiliates, whose operations are
integrated with those of applicant, to demonstrate applicant's ability
to provide the service proposed or to establish a gas supply, estimates
and data required by this subparagraph shall also be stated in like
detail for such affiliates.
(x) When the proposed project is for service which would not decrease
the life index of the total system gas supply by more than one year, the
data required in paragraphs (a)(11) (i) to (ix), inclusive, of this
section need be submitted only as to the particular market to receive
new or additional service.
(12) Exhibit J -- Conversion to natural gas. If it is assumed that
proposed customers in new areas or firm and interruptible direct
industrial customers whose estimated consumption totals 10,000 Mcf or
more in any calendar month or 100,000 Mcf or more in any calendar year
will convert from other fuels to natural gas, state the basis for such
assumption and include a study showing estimated cost of converting
customers' facilities to natural gas. The study should indicate the
number of customers of each of the other fuels who applicant anticipates
will convert to natural gas and the current cost of fuel to be displaced
compared to the cost of natural gas on an equivalent Btu basis.
(13) Exhibit K -- Cost of facilities. A detailed estimate of total
capital cost of the proposed facilities for which application is made,
showing cost of construction by operating units such as compressor
stations, main pipelines, laterals, measuring and regulating stations,
and separately stating the cost of right-of-way, damages, surveys,
materials, labor, engineering and inspection, administrative overhead,
fees for legal and other services, allowance for funds used during
construction, and contingencies. Include a brief statement indicating
the source of information used as the basis for the above estimate. If
not otherwise set forth, submit data on preliminary bids, if any, for
the proposed facilities and recent experienced cost data for facilities
of similar character.
(14) Exhibit L -- Financing. Plans for financing the proposed
facilities for which the application is filed, together with:
(i) A detailed description of applicant's outstanding and proposed
securities and liabilities, showing amount (face value and number),
interest or dividend rate, dates of issue and maturity, voting
privileges, and principal terms and conditions applicable to each.
(ii) The manner in which applicant proposes to dispose of securities
by private sale, competitive bidding or otherwise; the persons, if
known, to whom they will be sold or issued together with letters of
intent, if any, and if not known, the class or classes of such persons.
(iii) A statement showing for each proposed issue, by total amount
and by unit, the estimated sale price and estimated net proceeds to the
applicant.
(iv) An itemized statement of estimated expenses, fees, and
commissions to be paid by applicant in connection with each proposed
issue.
(v) A statement showing whether the consent of any holder of any
security is necessary to permit the issuance of the additional
securities proposed, and whether, as to the proposed issue of
securities, a like restriction is to be made applicable to any
securities issued thereafter.
(vi) Statement of anticipated cash flow, including provision during
the period of construction and the first 3 full years of operation of
proposed facilities for interest requirements, dividends, and capital
retirements.
(vii) Statement showing, over the life of each issue, the annual
amount of securities which applicant expects to retire through operation
of a sinking fund or other extinguishment of the obligation.
(viii) A balance sheet and income statement (12 months) of most
recent date available.
(ix) Comparative pro forma balance sheets and income statements for
the period of construction and each of the first 3 full years of
operation, giving effect to the proposed construction and proposed
financing of the project.
(x) Conformed copies of all agreements, contracts, mortgages, deeds
of trust, indentures, agreements to advance materials or supplies or
render services in return for applicant's securities, underwriting
agreements, and any other agreements or documents of a similar nature.
(xi) Conformed copies of all reports, letters, or other documents,
submitted by applicant to underwriters, insurance companies, or others
regarding financing, including business studies, forecasts of earnings,
and other similar financial or accounting reports, statements, or
documents.
(xii) Conformed copies of all applications and supporting exhibits,
registration statements, or other similar submittals, if any, to the
Securities and Exchange Commission, including all supplements, changes
or modifications of the above.
(xiii) Any additional data and information upon which applicant
proposes to rely in showing the adequacy and availability to it of
resources for financing its proposed project.
(15) Exhibit M -- Construction, operation, and management. A concise
statement setting forth arrangements for supervision, management,
engineering, accounting, legal, or other similar service to be rendered
in connection with the construction or operation of the project, if not
to be performed by employees of applicant, including reference to any
existing or contemplated agreements therefor, together with:
(i) A statement showing affiliation between applicant and any parties
to such agreements or arrangements. See Exhibit D, paragraph (a)(4) of
this section.
(ii) Conformed copies of all construction, engineering, management,
and other similar service agreements or contracts in any way operative
with respect to construction, operation, or financing of facilities
which are the subject of the application or will be applicable under
system operations.
(16) Exhibit N -- Revenues -- Expenses -- Income. When the estimated
revenues and expenses related to a proposed facility will significantly
affect the operating revenues or operating expenses of an applicant,
there shall be submitted a system-wide statement for the last year
preceding the proposed construction or service and pro forma system-wide
and incremental statements for each of the first three full years of
operation of the proposed facilities, showing:
(i) Gas system annual revenues and volumes of natural gas related
thereto, subdivided by classes of service, and further subdivided by
sales to direct industrial customers, sales to other gas utilities, and
other sales, indicating billing quantities used for computing charges,
e. g., actual demands, billing demands, volumes, heat-content
adjustment or other determinants. In addition, if enlargement or
extension of facilities is involved, the revenues attributable solely to
the proposed facilities shall be stated separately, and the basis and
data used in such computation shall be clearly shown.
(ii) Gas system annual operating expenses classified in accordance
with the Commission's Uniform System of Accounts for Natural Gas
Companies; the annual depreciation, depletion, taxes, utility income,
and resulting rate of return on net investment in gas plant including
working capital. In addition if enlargement or extension of facilities
is involved, the cost of service attributable solely to the proposed
facilities shall be stated separately with supporting data.
(iii) When the data required in paragraphs (a)(16)(i) and (ii) of
this section is not submitted, applicant shall provide in lieu thereof a
statement in sufficient detail to show clearly the effect on the
operating revenues and operating expenses of the estimated revenues and
expenses related to the proposed facility.
(17) Exhibit O -- Depreciation and depletion. Depreciation and
depletion rates to be established, the method of determination and the
justification therefor.
(18) Exhibit P -- Tariff. (i) A statement of the rates to be charged
for the proposed sales or service, including: (a) Identification of the
applicable presently effective rate schedules, when no additional tariff
filings will be required, or (b) when changes are required in
applicant's presently effective tariff, or if applicant has no tariff,
pro forma copies of appropriate changes in or additions to the effective
tariff or a pro forma copy of the new gas tariff proposed, or (c) when a
new rate is proposed, a statement explaining the basis used in arriving
at the proposed rate. Such statement shall clearly show whether such
rate results from negotiation, cost-of-service determination,
competitive factors or others, and shall give the nature of any studies
which have been made in connection therewith.
(ii) When new rates or changes in present rates are proposed or when
the proposed facilities will result in a material change in applicant's
average cost of service, such statement shall be accompanied by
supporting data showing:
(a) System cost of service for the first calendar year of operation
after the proposed facilities are placed in service.
(b) An allocation of such costs to each particular service
classification, with the basis for each allocation clearly stated.
(c) The proposed rate base and rate of return.
(d) Gas operating expenses, segregated functionally by accounts.
(e) Depletion and depreciation.
(f) Taxes with the basis upon which computed.
(b) Additional exhibits. Applicant shall submit additional exhibits
necessary to support or clarify its application. Such exhibits shall be
identified and designated as provided by 157.6(b)(6).
(c) Additional information. Upon request by the Secretary, prior to
or during hearing upon the application, applicant shall submit such
additional data, information, exhibits, or other detail as may be
specified. An original and 7 conformed copies of such additional
information shall be furnished to the Commission. The Commission
reserves the right to request additional copies.
(d) Availability of Commission staff for advice prior to formal
filing. Prior to filing an application, any person may informally
confer with the staff of the Commission to obtain advice on any problem
of statement or presentation of an application or any part thereof.
(Secs. 3(e), 7, 8, 82 Stat. 721, 725 (49 U.S.C. 1672, 1676, 1677;
Natural Gas Act (15 U.S.C. 717-717w); Natural Gas Policy Act (15 U.S.C.
3301-3432); Department of Energy Organization Act (42 U.S.C.
7101-7352); E.O. 12009, 3 CFR 142)
(17 FR 7387, Aug. 14, 1952)
Editorial Note: For Federal Register citations affecting 157.14,
see the List of CFR Sections Affected in the Finding Aids section of
this volume.
18 CFR 157.15 Requirements for applications covering acquisitions.
An application for a certificate authorizing acquisition of
facilities, in addition to complying with the applicable provisions of
157.5 through 157.14, shall include a statement showing:
(a) The exact legal name of the vendor, lessor, or other party in
interest (hereinafter referred to as ''vendor'') the State or other laws
under which vendor was organized, location of vendor's principal place
of business, and a description of the business, operation or property of
vendor covered by the application.
(b) Any certificate from the Commission, held by vendor, relating
directly to the facilities which applicant seeks to acquire, citing the
order, date thereof, docket designation, and title of the proceeding;
reference to and designation of any companion applications by vendor for
permission and approval pursuant to section 7(b) of the Natural Gas Act.
(c) The manner in which the facilities are to be acquired, the
consideration to be paid, the method of arriving at the amount thereof,
and anticipated expenses in addition to the consideration.
(d) The facilities to be acquired, their present use, their proposed
use after acquisition, and whether they constitute all of vendor's
facilities.
(e) Any franchise, license, or permit respecting the facilities
involved, showing expiration date thereof, and the effect of the
proposed acquisition thereon.
(17 FR 7389, Aug. 14, 1952)
18 CFR 157.16 Exhibits relating to acquisitions.
In addition to the exhibits required by 157.14, every application
involving acquisition of facilities must be accompanied by the exhibits
listed below. Together with each exhibit applicant must provide a full
and complete explanation of the data submitted, the manner in which it
was obtained, and the reasons for the conclusions derived from the
exhibits, unless the applicant includes a statement identifying the
schedule and rate containing the required information and data filed as
prescribed in 385.2011 of this chapter. If the Commission determines
that a formal hearing upon the application is required or that testimony
and hearing exhibits should be filed, the Secretary will promptly notify
the applicant that submittal of all the exhibits and testimony of all
witnesses to be sponsored by the applicant in support of his
case-in-chief is required. Submittal of these exhibits and testimony
must be within 20 days from the date of the Secretary's notice, or any
other time specified by the Secretary in the notice. Sections 157.6(a)
and 385.2011 of this chapter will govern the submissions required to be
furnished to the Commission. Interveners and persons becoming
interveners after the date of the Secretary's notice must be advised by
the applicant of the afore-specified exhibits and testimony, and must be
furnished with copies upon request.
(a) Exhibit Q -- Effect of acquisition on existing contracts and
tariffs. A statement showing the effect of the proposed transaction
upon any agreements for the purchase, sale, or interchange of natural
gas, and upon any rate schedules or tariffs on file with this
Commission, together with pro forma rate schedule sheets, notices of
cancellation, or other tariff filings required to be made with this
Commission.
(b) Exhibit R -- Acquisition contracts. A summary statement of all
contracts, agreements or undertakings relating to the proposed
acquisition, including:
(1) A conformed copy of each contract or other agreement covering or
relating to the acquisition of the facilities.
(2) The names and addresses of all persons employed or to be employed
concerning the transaction, including engineering, financial accounting,
legal, or other services, and the compensation, fees, or other payments,
paid or payable, to such persons.
(3) A disclosure of affiliation between applicant and vendor or
between either of them and any other party in interest in the proposed
acquisition. See Exhibit D, 157.14(a)(4).
(c) Exhibit S -- Accounting. A statement showing:
(1) The amounts recorded upon the books of the vendor as being
applicable to the facilities to be acquired, and the related
depreciation, depletion, and amortization reserves.
(2) The original cost of the facilities to be acquired, segregated by
accounts prescribed in the Commission's Uniform System of Accounts for
Natural Gas Companies; the method by which the original cost was
determined; and whether such statement of original cost has been
approved by any regulatory body.
(3) If the original cost has not been determined, an estimate
thereof, based upon records or data of vendor or its predecessors,
together with an explanation of the manner in which such estimate was
made and the name and address of the present custodian of all existing
pertinent records and data.
(4) The depreciation, depletion, and amortization reserve
requirements applicable to the original cost of the facilities to be
acquired, estimated service lives, the approximate average age of the
facilities to which the depreciation reserve applies, the amortization
period, and the depletion rates and estimated gas reserves upon which
accruals to the depletion reserve are based.
(5) The amount at which applicant proposes to record the facilities
upon its books; the amount of the original cost to be recorded, the
depreciation, depletion, and amortization reserves; and the acquisition
adjustments, if any, together with applicant's proposed disposition of
all adjustments.
(6) Duplicate facilities to be acquired and retired, property which
must be extensively rehabilitated, including a clear description of such
property, the additional costs to be incurred, and the accounting
therefor proposed.
(7) A balance sheet of the company to be acquired as of the most
recent date available, if the acquisition involved is by purchase of
capital stock and liquidation of the acquired company.
(8) A pro forma consolidating balance sheet, as of the date of the
merger if the acquisition is by merger, showing the merging of the
accounts and the adjustments relating thereto.
(17 FR 7389, Aug. 14, 1952, as amended by Order 493, 53 FR 15029,
Apr. 27, 1988)
18 CFR 157.17 Applications for temporary certificates in cases of
emergency.
In cases of emergency and pending the determination of any
application on file with the Commission for a certificate of public
convenience and necessity pursuant to section 7 of the Natural Gas Act,
application may be made for a temporary certificate authorizing the
construction and operation of extensions of existing facilities,
interconnections of pipeline systems, or sales of natural gas that may
be required to assure maintenance of adequate service, or to service
particular customers. This application must be submitted in the manner
prescribed in 157.6(a) and 385.2011 of this chapter.
(a) Before October 31, 1989, and thereafter whenever the waiver
provisions of 385.2011 of this chapter apply, the application must be
submitted in writing, must be subscribed and verified by a responsible
officer of applicant having knowledge of the facts, and must state
clearly and specifically the exact character of the emergency, the
proposed method of meeting it, and the facts claimed to warrant issuance
of a temporary certificate.
(b) On or after October 31, 1989, the application must be submitted
on electronic media as prescribed in 385.2011 of this chapter, must be
subscribed and verified by a responsible officer of applicant having
knowledge of the facts, and must state clearly and specifically the
exact character of the emergency, the proposed method of meeting it, and
the facts claimed to warrant issuance of a temporary certificate.
(Order 493, 53 FR 15029, Apr. 27, 1988, as amended by Order 493-B, 53
FR 49653, Dec. 9, 1988)
18 CFR 157.18 Applications to abandon facilities or service; exhibits.
Applications for an order authorizing abandonment of facilities or
service pursuant to section 7(b) of the Natural Gas Act must contain a
statement providing in detail the reasons for the abandonment and must
contain the exhibits listed below, unless the applicant includes a
statement identifying the schedule and rate containing the required
information and data filed as prescribed in 385.2011 of this chapter.
Sections 157.6(a) and 385.2011 of this chapter will govern the
submission of applications and exhibits required to be furnished.
Together with each exhibit, applicant must provide a full and complete
explanation of the data submitted, the manner in which it was obtained,
and the reasons for the conclusions derived from the data. The
Secretary may, in addition, require that the testimony of all witnesses
to be presented by the applicant be filed together with all exhibits
upon which applicant will base its case-in-chief.
(a) Exhibit T -- Related applications. A statement showing:
(1) The docket numbers of the prior proceedings in which the
facilities or services sought to be abandoned were certificated.
(2) The docket numbers of related applications pending before or
which have been authorized by the Commission with an explanation of the
interrelationship of those applications with the instant application.
(b) Exhibit U -- Contracts and other agreements. A conformed copy of
each contract or other agreement pertaining directly or indirectly to
the abandonment of facilities or service, including all agreements which
influenced applicant to seek the abandonment and all agreements which
are dependent upon the approval of the proposed abandonment.
(c) Exhibit V -- Flow diagram showing daily design capacity and
reflecting operation of applicant's system after abandonment. A flow
diagram showing daily design capacity and reflecting operating
conditions of applicant's system after abandonment of facilities on that
segment of the system affected by the abandonment, including the
following:
(1) Diameter, wall thickness, and length of pipe remaining.
(2) For each remaining compressor station, the size, type and number
of compressor units, horsepower required, horsepower installed, volume
of gas to be used as fuel, suction and discharge pressures, and
compression ratio.
(3) Pressures and volumes of gas at the main line inlet and outlet
connections at each compressor station.
(4) Pressures and volumes of gas at each intake and takeoff point and
at the beginning and terminus of all remaining facilities.
(d) Exhibit W -- Impact on customers whose service will be
terminated. A statement indicating the availability of natural gas from
other sources to applicant's customers whose service will be terminated
by the abandonment and a statement showing the economic effect of the
abandonment on applicant's customers. If no other natural gas is
available, indicate the availability of other fuels to those customers
and explain why the abandonment of service to each customer is permitted
by the public convenience and necessity.
(e) Exhibit X -- Effect of the abandonment on existing tariffs. A
statement showing the effect of the proposed abandonment upon any rate
schedules or tariffs on file with this Commission, together with pro
forma rate schedule sheets, notices of cancellation, or other tariff
filings required to be made with this Commission.
(f) Exhibit Y -- Accounting treatment of abandonment. Concisely
describe the changes of property, indicating the cost of property to be
abandoned in place, the cost of property to be removed and salvaged, the
proposed disposition of salvaged material, and a description of
equipment to be relocated setting forth its cost, its proposed new
location, and the extent of rehabilitation required. Include the
information required below.
(1) State the proposed accounting treatment for property changes,
showing, for example, retirements by primary plant accounts, cost of
removal, salvage realized for materials and equipment sold, original
cost of reusable materials and equipment recovered (see Account 154 of
the Uniform System of Accounts), and maintenance costs for
reconditioning of reusable materials and equipment.
(2) If the abandonment will be by sale of property, describe the
property to be sold, together with the proposed accounting treatment as
required by paragraph F of Gas Plant Instruction 5 of the Uniform System
of Accounts. Applicant may use pro forma accounting entries based on
estimated amounts, provided that upon consummation of the sale he must
file proposed accounting entries in conformity with the requirements of
the Uniform System of Accounts. If the proposed sale will result in a
taxable gain to the applicant, indicate the amount of federal and state
income taxes to be allocated to the gain. If no allocation is to be
made, explain the reasons.
(3) State the amount of accumulated deferred income taxes
attributable to the property to be abandoned. Indicate the proposed
accounting treatment of those accumulated deferred taxes.
(g) Exhibit Z -- Location of facilities. Unless shown on Exhibit V
or elsewhere, a geographic map of suitable scale and detail showing, and
appropriately differentiating between, all of the facilities proposed to
be abandoned and the other existing facilities of applicant, the
operation or capacity of which will be directly affected by the
facilities to be abandoned. This map shall clearly show the
relationship of the facilities to be abandoned to the applicant's
overall system and shall include:
(1) Location, length and size of pipelines.
(2) Location and size (rated horsepower) of compressor stations.
(3) Location and designation of each point of connection of existing
facilities with (i) main line industrial and other consumers, pipeline
or distribution companies and municipalities, indicating towns and
communities served at wholesale or retail and (ii) gas-producing and
storage fields, or other sources of gas supply. Designate on the map
those facilities and services proposed to be abandoned.
(Order 280, 29 FR 4879, Apr. 7, 1964, as amended by Order 295, 30 FR
4130, Mar. 30, 1965; Order 493, 53 FR 15029, Apr. 27, 1988)
18 CFR 157.20 General conditions applicable to certificates.
Such of the following terms and conditions, among others, as the
Commission shall find is required by the public convenience and
necessity, shall attach to the issuance of each certificate and to the
exercise of the rights granted thereunder.
(a) The certificate shall be void and without force or effect unless
accepted in writing by applicant within 30 days from the issue date of
the order issuing such certificate: Provided, however, That when an
application for rehearing of such order is filed in accordance with
section 19 of the Natural Gas Act, such acceptance shall be filed within
30 days from the issue date of the order of the Commission upon the
application for rehearing or within 30 days from the date on which such
application may be deemed to have been denied when the Commission has
not acted on such application within 30 days after it has been filed:
Provided further, That when a petition for review is filed in accordance
with the provisions of section 19 of the Natural Gas Act, such
acceptance shall be filed within 30 days after final disposition of the
judicial review proceedings thus initiated.
(b) Any authorized construction, extension, or acquisition shall be
completed and in actual operation by applicant and any authorized
operation, service, or sale shall be actually undertaken and regularly
performed by applicant within (period of time to be specified by the
Commission in each order) from the issue date of the Commission's order
issuing the certificate.
(c) Applicant must file with the Commission, in writing and under
oath, until October 31, 1989, an original and four conformed copies, and
thereafter as prescribed in 385.2011 of this chapter and, upon request
must furnish an intervener with a single copy, of the following:
(1) Within ten days after the bona fide beginning of construction,
notice of the date of such beginning; (2) each three months after
filing notice of commencing construction, a progress report showing the
exact status of authorized construction; (3) within ten days after
authorized facilities have been constructed and placed in service or any
authorized operation, sale, or service has commenced, notice of the date
of such placement and commencement and (4) within six months after
authorized facilities have been constructed, a statement showing, on the
basis of all costs incurred to that date and estimated to be incurred
for final completion of the project, the cost of constructing authorized
facilities, such total costs to be classified according to the estimates
submitted in the certificate proceeding and compared therewith and any
significant differences explained.
(d) With respect to an acquisition authorized by the certificate,
applicant must file with the Commission, before October 31, 1989, in
writing and under oath, an original and four conformed copies and
thereafter as prescribed in 385.2011 of this chapter the following:
(1) Each 3 months after the issue date of the Commission's order
issuing this certificate, a progress report showing the exact status of
the acquisition; (2) within 10 days after acquisition and the beginning
of authorized operations, notice of the dates of acquisition and the
beginning of operations; and (3) within 6 months after consummation of
the acquisition, a statement showing and explaining the cause for any
differences between the actual cost of the facilities acquired and the
estimates of cost relied upon by applicant in the proceeding in which
the certificate is issued.
(e) The certificate issued to applicant is not transferable in any
manner and shall be effective only so long as applicant continues the
operations authorized by the order issuing such certificate and in
accordance with the provisions of the Natural Gas Act, as well as
applicable rules, regulations, and orders of the Commission.
(f) The certificate herein issued shall be without force and effect
unless the fees prescribed by 159.2(b) and 159.2(d), if any, of the
Regulations Under the Natural Gas Act have been paid in accordance with
the requirements thereof.
(g) In the interest of safety and reliability of service, facilities
authorized by the certificate shall not be operated at pressures
exceeding the maximum operating pressure set forth in Exhibit G-II to
the application as it may be amended prior to issuance of the
certificate. In the event the applicant thereafter wishes to change
such maximum operating pressure it shall file an appropriate petition
for amendment of the certificate. Such petition shall include the
reasons for the proposed change. Nothing contained herein authorizes a
natural gas company to operate any facility at a pressure above the
maximum prescribed by state law, if such law requires a lower pressure
than authorized hereby.
(Sec. 20, 52 Stat. 832; 15 U.S.C. 717s)
(17 FR 7389, Aug. 14, 1952, as amended by Order 280, 29 FR 4879, Apr.
7, 1964; Order 317, 31 FR 432, Jan. 13, 1966; Order 324, 31 FR 9348,
July 8, 1966; Order 493, 53 FR 15030, Apr. 27, 1988; Order 493-B, 53
FR 49653, Dec. 9, 1988)
18 CFR 157.21 Abandonment of purchases.
(a) Except as provided in paragraph (c) of this section, a purchaser
subject to the Commission's jurisdiction under the Natural Gas Act is
authorized, upon 30-days written notice to (or from) the seller, or any
longer notice period required by contract, to abandon purchases of
natural gas from any first seller or pipeline:
(1) Permanently, under a contract that has expired, or
(2) To the extent that the obligation of the purchaser to take or pay
for gas (or both), or of the seller to deliver gas, is unilaterally
reduced, suspended or terminated by either party in accordance with a
provision of an unexpired contract.
(b) A purchaser subject to the Commission's jurisdiction under the
Natural Gas Act is authorized to abandon purchases of gas from any first
seller or pipeline:
(1) Permanently, by agreement of the parties to such abandonment, or
(2) To the extent that the obligation of the purchaser to take or pay
for gas (or both) is reduced, suspended or terminated by agreement of
the parties.
(c) A purchaser that is an interstate pipeline may not unilaterally
abandon purchases of gas under paragraph (a) of this section unless it
has a blanket certificate of public convenience and necessity
authorizing transportation of natural gas under 284.221 of this
chapter.
(d) A purchaser that permanently abandons purchases of gas under this
section must file in the manner prescribed in 385.2011 of this chapter
a report with the Commission within 30 days of the date that purchases
are terminated providing the following information:
(1) The name of the former seller;
(2) A description of the certificate authority under which the former
seller sold the abandoned gas;
(3) A description of the contractual authority under which the
purchases were terminated; and
(4) If the abandonment is partial, a description of the acreage from
which purchases were terminated and acreage from which purchases
continue.
(e) For purposes of this section, the term ''first seller'' means any
seller that engages in a sale of natural gas that is a ''first sale''
under section 2(21) of the Natural Gas Policy Act of 1978.
(Order 490, 53 FR 4133, Feb. 12, 1988, as amended by Order 493, 53 FR
15030, Apr. 27, 1988; Order 490-A, 53 FR 29009, Aug. 2, 1988)
18 CFR 157.21 Subpart B -- Filings by Producers and Gatherers of Natural Gas Which Are Also Natural Gas Companies
18 CFR 157.23 Applications for certificates of public convenience and
necessity by independent producer.
(a) Every independent producer of natural gas as that term is defined
in 154.91 of this chapter, who, on or since June 7, 1954, has engaged
in the interstate transportation or sale of natural gas subject to the
jurisdiction of the Commission, and who has not heretofore obtained from
the Commission a certificate of public convenience and necessity
pursuant to section 7 of the Natural Gas Act, as amended, shall, on or
before December 1, 1954, file with the Commission an application
(original and 3 copies) in accordance with 157.24 through 157.27. The
Commission reserves the right to request additional copies. Independent
producers whose sales of natural gas subject to the jurisdiction of the
Commission amount in the aggregate to less than 1,000,000 Mcf annually,
may, in lieu of the foregoing, file by December 1, 1954 an application
(original and three copies) containing the information called for by
Exhibit A set forth below. Pending action by the Commission on an
application hereunder, the service for which authorization is sought
shall be continued.
(b) No independent producer of natural gas shall, subsequent to the
issuance of this part, engage in any new service with respect to the
transportation of natural gas in interstate commerce or sale of such
natural gas for resale in interstate commerce subject to the
jurisdiction of the Commission without approval of the Commission,
evidenced by a certificate of public convenience and necessity
authorizing such transportation or sale upon application (original and 3
copies) pursuant to 157.24 through 157.27. The Commission reserves the
right to request additional copies. Independent producers whose sales
of natural gas subject to the jurisdiction of the Commission will amount
in the aggregate to less than 1,000,000 Mcf annually may, in lieu of the
foregoing, file an application (original and three copies) containing
the information called for by Exhibit A set forth below. Where the
economic feasibility of a new pipe line or important extension or
expansion of an existing pipe line depends upon proof of an adequate gas
supply, all related applications necessary to effectuate the service
shall be filed within time to enable the Commission to consider all
related matters concurrently.
(c) Filings hereunder shall be made by signatory operators and
signatory owners as provided in 154.91 of this chapter.
(1) Name of applicant
(2) State of organization
(3) Location of principal place of business
(4) Names of States in which authorized to do business
(5) Person responsible for application:
(a) Name and title
(b) Mailing address
(6) Description of facilities used for operations for which
certificate is requested (where applicable):
(a) Pipelines:
(i) Location (ii) Length and diameter (iii) Capacity (Mcf daily)
(b) Compressor stations:
(i) Location (ii) Horsepower (iii) Capacity (Mcf daily)
(c) Gasoline plants:
(i) Location (ii) Capacity (Mcf daily)
(d) Dehydration plants:
(i) Location (ii) Capacity (Mcf daily)
(e) Purification plants:
(i) Location (ii) Capacity (daily)
(f) Storage projects:
(i) Location (ii) Maximum volumes that can be stored Mcf
(7) Gas supply:
(a) Own production:
(i) Name and location of field (ii) Acreage controlled
(b) Gas purchased:
(i) Name of seller (ii) Name and location of field (iii) Point of
delivery to applicant
(8) Gas sales or transportation contracts (for each contract);2
(a) Name of purchaser (b) Point of delivery (c) Contract volumes
Mcf (daily or annu-
ally),indicatingpressurebase
(d) Price at time of filing (e) Date of contract (f) Term of
contract (g) Special conditions (if any)
(Order 174-B, 19 FR 8809, Dec. 23, 1954, as amended by Order 190, 21
FR 7617, Oct. 4, 1956; Order 196, 22 FR 2882, Apr. 24, 1957; Order
297, 30 FR 6518, May 12, 1965)
0111Independent producers defined in 154.91 of this chapter as
transporting in interstate commerce or selling in interstate commerce
for resale a total of less than 1,000,000 Mcf per year of natural gas.
2Contracts on file as rate schedules may be incorporated by
reference.
18 CFR 157.24 Contents of application.
(a) Every application for a certificate of public convenience and
necessity required under 157.23 shall be filed with the Commission and
shall contain, in the form specified in 250.5, a summary of each
contract for the sale or transportation of natural gas for which a
certificate is requested. If the application is filed by an assignee
seeking authority, as successor in interest, only to render service
previously authorized by the Commission or to initiate service resulting
from a farmout agreement, he shall describe the service to be continued
under the original F.P.C. Docket No(s). granting authorization to the
assignor and the proposed disposition of the assignor's F.P.C. Gas Rate
Schedule(s), and, if applicable, in addition to the refund obligations
required by 154.92(d)(3) indicate if the assignor intends to file bond
or undertaking to assure total refund from the date increased rate of
assignor becomes effective subject to refund or from date operation
commenced under assignor's temporary certificate containing a refund
condition, as the case may be. In addition, the application shall set
forth in the order indicated the following:
(1) The exact legal name of the applicant; if the applicant is a
corporation, the State or territory under the laws of which the
applicant is organized, the location of applicant's principal place of
business, and the names of all States where applicant is authorized to
do business.
(2) The same data required by paragraph (a)(1) of this section with
respect to any predecessor in interest of the applicant bona fide
engaged in the transportation or sale of natural gas subject to the
jurisdiction of the Commission on June 7, 1954.
(3) The name, title, and post office address of the person to whom
correspondence or communications in regard to the application is to be
addressed. Unless advised to the contrary, the Commission will serve
all notices, orders, and other papers, service of which is required,
upon the person so named.
(4) A statement of pertinent facts showing that applicant or a
predecessor in interest of applicant was a natural-gas company within
the meaning of the Natural Gas Act and was bona fide engaged in
transportation of natural gas in interstate commerce or sale of natural
gas in interstate commerce for resale on June 7, 1954, or upon
commencement of the proposed transportation or sale of natural gas would
be a natural-gas company. Without limitation upon the requirements of
this paragraph, such statement shall include a showing of:
(i) The sources of the gas (a) produced by applicant or predecessor
and (b) purchased by applicant or predecessor. In case of gas produced,
give the approximate location of the fields and the points of delivery,
and in the case of gas purchased, the names of the sellers and points of
delivery.
(ii) The route or routes of the pipe lines over which such
transportation or sale of natural gas was or will be accomplished.
(iii) Any communities served on June 7, 1954 or proposed to be served
(a) at wholesale or (b) at retail.
(iv) The names of, and points of delivery to, any main line
industrial customers (i.e., not located within communities under
paragraph (a)(4)(iii) of this section) purchasing or proposing to
purchase 25,000 Mcf or more per year. Such main line industrial
customers purchasing 100,000 Mcf or more per year, shall be given the
identifying designations I-1, I-2, etc., which designations shall be
used in lieu of names on Exhibit A of the application ( 157.23).
(v) Any major appurtenant properties and facilities such as
compressor stations, gasoline plants, dehydration plants, purification
plants, and gas storage projects.
(b) Any information required which is already on file with the
Commission may be incorporated by reference. If an applicant is unable
to secure required information in time for filing with his application,
a statement setting forth the reasons for his failure to file the
missing information should be submitted with a request for further time,
which may be granted up to 90 days.
(c) Each application for a certificate of public convenience and
necessity required under 157.23 must be accompanied by the appropriate
fee prescribed in 381.202 of this chapter, unless a petition for waiver
is submitted in lieu thereof under 381.106 of this chapter.
(Order 174-B, 19 FR 8810, Dec. 23, 1954, as amended by Order 278, 29
FR 3700, Mar. 25, 1964; Order 556, 41 FR 52443, Nov. 30, 1976; Order
196, 46 FR 60432, Dec. 10, 1981; Order 360, 49 FR 5081, Feb. 10, 1984)
18 CFR 157.25 Necessary exhibits.
There shall be filed with the application as a part thereof the
following exhibits:
Exhibit A. Map. Each applicant under 157.24 shall file as a part of
his application a general map or sketch of applicant's facilities for
the production, transportation, or sale of natural gas as Exhibit A (
157.23). The map need be only of sufficient scale and in sufficient
detail to show the general geographical location of the properties.
(a) The location of gas fields from which gas is or will be produced
by applicant or affiliated companies or at which gas is or will be
purchased by applicant.
(b) The location of applicant's principal pipe lines and the
diameters thereof.
(c) The points of connection with the facilities or pipe-line systems
of other companies.
(d) The designation of points of delivery of gas from applicant's
system, including
(e) The communities served or proposed to be served at wholesale and
at retail, indicating wholesale by a small square and retail by a small
circle.
(f) The designation of points of delivery of gas from applicant's
system, including points of delivery to main line industrial customers
purchasing 100,000 Mcf or more per year. Such main line industrial
customers are to be designated I-1, I-2, etc., as indicated in
157.24(a)(4)(iv).
Exhibit B. Contracts. Conformed copy of each contract for sale or
transportation of gas for which a certificate is requested: Provided;
however, That contracts on file with the Commission in other proceedings
may be included by reference as heretofore provided in 157.24(b); And
provided further, That acceptance of contracts hereunder shall not be
construed as approval of the rates therein contained under part 154
hereof or under the Natural Gas Act. On or after April 2, 1962, the
application shall be rejected if any contract submitted in support
thereof contains any price-changing provisions other than those defined
as permissible in 154.93 of this chapter. The application will be
rejected if any contract, executed after February 1, 1967, submitted in
support thereof contains any makeup provisions proscribed by 154.103 of
this chapter.
Exhibit C. Certification required by the Natural Gas Pipeline Safety
Act of 1968. The applicant shall certify that it will design, install,
inspect, test, construct, operate, replace, and maintain any gathering
facilities used in the proposed sale or transportation for which a
certificate is requested in accordance with Federal safety standards and
plans for maintenance and inspection or shall certify that it has been
granted a waiver of the requirements of the safety standards by the
Department of Transportation in accordance with the provisions of
section 3(e) of the Natural Gas Pipeline Safety Act of 1968. Pertinent
details concerning the waiver shall be set forth. The Federal standards
are not applicable to gathering facilities outside the following areas:
(a) An area within the limits of any incorporated or unincorporated
city, town, or village;
(b) Any designated residential or commercial area such as a
subdivision, business or shopping center, or community development.
Applicants whose gathering facilities lie outside the areas where
Federal safety standards are applicable shall so state in Exhibit C in
lieu of submitting the required certification.
(Secs. 4, 5, 52 Stat. 822, 56 Stat. 83; 15 U.S.C. 717c, 717d; secs.
3(e), 7, 8, 82 Stat. 721, 725; 49 U.S.C. 1672, 1676, 1677)
(Order 174-B, 19 FR 8810, Dec. 23, 1954, as amended by Order 334, 32
FR 866, Jan. 25, 1967; Order 430, 36 FR 7052, Apr. 14, 1971)
18 CFR 157.26 Form of filing.
An application under 157.23 (which shall include the originals of
all exhibits accompanying the applications) shall be verified.
(Order 225, 47 FR 19057, May 3, 1982)
18 CFR 157.27 Other information.
Upon request by the Secretary, applicant shall submit such additional
data, information, exhibits, or other detail as may be specified.
(Order 221, 25 FR 5334, June 15, 1960)
18 CFR 157.28 Temporary authorizations.
Upon the filing of an application for a certificate of public
convenience and necessity under 157.23 to 157.27, and a rate schedule
under 154.91 through 154.102 of this chapter, an independent producer
in the event of an emergency may request temporary authorization to
initiate the sale or transportation of natural gas in interstate
commerce pending final Commission action under sections 4 and 7 of the
Natural Gas Act.
(a) As part of its application hereunder, or separately, the
applicant independent producer must file, or have on file (1) a
statement setting forth the facts constituting the emergency requiring
such action, which emergency may include, inter alia: drainage,
threatened loss of lease, flaring, economic hardship resulting from
payment of shut-in royalties, or similar situations; (2) a statement
identifying the contract tendered as the rate schedule intended to be
effective for the sale or transportation under this temporary
authorization; and (3) a statement describing, generally, the
facilities necessary to enable the purchaser to take delivery of the gas
proposed to be sold or transported.
(b) Any temporary certificate issued under this section will provide
that service must commence within 90 days of the date of issuance
thereof, except that for service from an offshore area, within the
Federal domain or the disputed offshore area, service must commence
within 30 days of the completion by the purchaser or transporter of
construction of the facilities required to commence such service.
(c) The applicant may, within 30 days of the date of issuance, file
in writing its acceptance or rejection of the temporary certificate. If
accepted, the temporary certificate shall be effective upon the date of
receipt of the acceptance by the Secretary. If no acceptance or
rejection has been filed within said 30 days, the temporary certificate
shall be deemed to have been accepted and shall be effective on that
date. However, no temporary authorization under this section will be
effective until such time as the purchaser or transporter of the natural
gas to be sold thereunder is authorized under section 7 of the Natural
Gas Act to construct and operate such facilities as may be necessary to
receive and transport the gas.
(Order 396, 35 FR 5219, Mar. 28, 1970)
18 CFR 157.30 Abandonment of service.
(See 2.64 of this chapter.)
(a) Except as provided in paragraph (c) or (d) of this section, no
independent producer as herein defined shall abandon all or any portion
of its facilities subject to the jurisdiction of the Commission, or any
service rendered by means of such facilities, without the permission and
approval of the Commission first had and obtained upon application
(original and 3 copies), after due hearing, and a finding by the
Commission that the available supply of natural gas is depleted to the
extent that the continuance of service is unwarranted, or that the
present or future public convenience or necessity permit such
abandonment: Provided, however, That nothing herein shall be construed
as interfering or as intended to interfere with or to prevent compliance
by a natural-gas company with valid conservation orders of a State
agency relating to the production or gathering of natural gas.
(b) Every application for abandonment of service under this section
shall contain, on the first page of such application, a summary, in the
form specified in 250.7, of each contract for sale or transportation of
gas for which abandonment authorization is requested.
(c) A first seller is authorized, upon 30-days written notice to (or
from) the purchaser, or any longer notice period required by contract,
to abandon sales of gas to any purchaser:
(1) Permanently, under a contract that has expired, or
(2) To the extent that the obligation of the purchaser to take or pay
for gas (or both), or of the seller to deliver gas, is unilaterally
reduced, suspended or terminated by either party in accordance with a
provision of an unexpired contract.
(d) A first seller is authorized to abandon sales of gas to any
purchaser:
(1) Permanently, by agreement of the parties to such abandonment, or
(2) To the extent that the obligation of the seller to deliver gas is
reduced or suspended by agreement of the parties.
(e) Unless the former purchaser agrees to file a report of the
abandonment under 157.21(d), a seller that permanently abandons sales
of gas under paragraph (c) of this section must file a report with the
Commission within 30 days of the date that sales are terminated
providing the following information:
(1) A description of the certificate authority under which the
abandoned sales were made;
(2) The name of the former purchaser;
(3) A description of the contractual authority under which the sales
were terminated; and
(4) If the abandonment is partial, a description of the acreage from
which sales were terminated and acreage from which sales continue.
(f) For purpose of this section, the term ''first seller'' means any
seller that engages in a sale of natural gas that is a ''first sale''
under section 2(21) of the Natural Gas Policy Act of 1978.
(Order 278, 29 FR 3700, Mar. 25, 1964; Order 297, 30 FR 6518, May
12, 1965, as amended by Order 340, 32 FR 5990, Apr. 14, 1967; Order
490, 53 FR 4133, Feb. 12, 1988; 53 FR 8176, Mar. 14, 1988; Order
490-A, 53 FR 29009, Aug. 2, 1988; 53 FR 37291, Sept. 26, 1988)
18 CFR 157.39 Applicability of 157.23 through 157.30.
Sections 157.23 through 157.30 shall be applicable to independent
producers as defined in 154.91 of this chapter, but, with the exception
of 157.30, shall not apply to those independent producers who are
subject to 157.40.
(Order 428B, 36 FR 13384, July 21, 1971)
18 CFR 157.40 Exemption of small producers from certain filing
requirements.
(a) Definitions. (1) A ''small producer'' is an independent producer
of natural gas as defined in 154.91 of this chapter who is not
affiliated with a Major natural gas pipeline company and whose total
''jurisdictional sales'' on a nationwide basis, together with such sales
by ''affiliated producers,'' were not in excess of 10,000,000 Mcf at
14.73 psia during the preceding calendar year. A small producer as
defined above will retain small producer status through March 31 of the
calendar year following that in which its total jurisdictional sales
(including sales by affiliates) first exceed the 10,000,000 Mcf
limitation, except that if a small producer merges with, acquires, is
acquired by, or otherwise becomes affiliated with (i) another producer
or a jurisdictional pipeline company other than Major and the total
jurisdictional sales volumes of such parties exceeded 10,000,000 Mcf in
the immediately preceding calendar year, or (ii) a jurisdictional Major
natural gas pipeline company, said small producer's status as such will
terminate effective as of the date of such merger, acquisiton or other
type of affiliation.
Upon termination of small producer status, the producer or its
survivor (successor) will be considered to be a large producer. If such
termination occurs as a result of merger or affiliation, the producer
shall give notice thereof to its purchasers and to the Commission within
30 days of the effective date of such occurrence. If such termination
occurs as a result of sales having exceeded the 10,000,000 Mcf
limitation during a calendar year, the producer shall give notice
thereof to its purchasers and to the Commission by letter to be
submitted on or before April 1 of the following year.
Where dissolution, divestiture or other severing of affiliation
occurs involving large producers, a surviving producer will be
considered as having small producer status as of the date of such
occurrence provided that jurisdictional sales of natural gas during the
preceding calendar year attributable to the reserves acquired or
retained by such surviving producer as a result of such dissolution,
divestiture or other severance, together with any other jurisdictional
sales it made in that year, did not exceed 10,000,000 Mcf, and the
producer meets the other qualifications also.
(2) As used in this section, the term ''jurisdictional sales''
includes: (i) Volumes sold under limited-term and optional procedure
certificates ( 2.70 and 2.75, respectively, of this chapter), (ii)
volumes sold under the emergency provisions of the Natural Gas Act and
the Commission's regulations thereunder, (iii) volumes attributable to
royalty and overriding royalty interests where such volumes were
marketed with the related working interests of the producer in question,
(iv) volumes of gas paid for but not taken under prepayment clauses and
(v) volumes of gas sold by others in the proportion that the independent
producer seeking to come within this section, or an affiliate, has an
interest in such sales. However, sales made pursuant to percentage
sales contracts ( 154.91(e) of this chapter), even where jurisdictional,
are not to be included. For the further purposes hereof, each partner
in a limited partnership will be considered as the seller of that
portion of the total volumes sold by the partnership which corresponds
to that partner's interest in the partnership, whether such partner be a
general or a limited partner.
(3) ''Affiliated producers'' are persons who, directly or indirectly,
control, or are controlled by, or are under common control with, the
applicant producer. Such control exists if the producer has the power
to direct or cause the direction of, or as matter of actual practice
does direct, the management and policies of another producer, whether
such power is exercised alone or through one or more intermediary
companies, or pursuant to an agreement, and whether such power or
practice is established through a majority or minority ownership or
voting of securities, common directors, officers or stockholders, voting
trusts, holding trusts, associated companies, relationship of blood or
marriage, or any other direct or indirect means. For the further
purposes of this section, the term ''agreement'' shall not include any
agreement for the operation of a natural gas producing property or a
plant processing natural gas or any joint venture, partnership, nominee,
or other type of agreement pertaining to the joint exploration for and
development and operation of oil and gas properties, unless such
agreement otherwise establishes the power of one producer to direct or
cause the direction of the management and policy of another producer.
In limited partnerships, general partners shall be considered affiliated
with each other, but limited partners shall not be considered affiliated
with each other or with the general partners where no affiliations exist
outside of the partnerships. Also, for the further purposes of this
section, the existence of one or more directors of a corporation in
common with another corporation shall be deemed a conclusive presumption
of affiliation and control.
(4) ''Small producer reserves'' are: (i) Reserves developed by a
natural gas company while in the status of a ''small producer'' as
defined in paragraph (a)(1) of this section; (ii) developed reserves
held on March 17, 1971, by a small producer, regardless of whether such
reserves were developed by a large or small producer, and (iii) reserves
developed by a large producer which was formerly a small producer
underlying acreage previously dedicated to the interstate market under
that producer's small producer certificate pursuant to a contract dated
while the producer was in small producer status. In the case of a
limited partnership or joint venture having both large and small
producers as partners or joint venturers, reserves developed by the
partnership or joint venture shall be allocated as large producer and
small producer reserves in proportion to their respective percentages of
ownership of the partnership at the time the reserves are developed.
Reserves attributable to royalty and overriding royalty interests shall
have the same classifications as the working interests to which they
relate.
(5) ''Small producer sales'' are sales of natural gas made pursuant
to authorization granted under this section from small producer
reserves, whether such sales are made under a small producer's or any
other party's contract. Percentage sales and sales made under
certificates issued pursuant to 2.70 and 2.75 of this chapter are not
considered small producers sales.
(b) Procedure for securing blanket small producer certificate. (1) A
small producer may apply for a blanket certificate to cover all of its
existing and future jurisdictional small producer sales, as well as
small producer sales attributable to interests of small producer
co-owners specifically identified by the applicant. Sales which do not
qualify as small producer sales, including sales from certain large
producer working interests but excluding percentage sales and sales
authorized pursuant to 2.70 and 2.75 of this chapter, may be covered
by the small producer certificate, subject to the rate limitations
applicable to comparable large producer sales or otherwise applicable,
as set forth in paragraph (c) of this section, provided that the
applicant clearly identifies any such other sales.
(2) With respect to sales under any contract of the small producer
applicant of gas attributable to large producer working interests, such
sales may only be covered by the small producer certificate if the small
producer is the operator of the producing properties involved and the
total of the sales attributable to all of such large producer working
interests (including royalty interests related to such working
interests) does not exceed 20 percent of the total sales under such
contract during a calendar year. Following any calendar year during
which this limit is exceeded, all large producers involved shall be
responsible for obtaining separate certificate authorization and filing
a rate schedule for their working interests in the sale in question.
Where large producer interests in a particular sale are to be covered by
a small producer certificate, the applicant shall list all large
producers who have committed their working interests under the contract
in question, together with their respective percentages of ownership,
and clearly specify which of such interests are to be considered covered
by the small producer certificate.
(3) For the purposes hereof, interests in a limited partnership shall
be treated as comparable to working interests in the properties of the
partnership. General partners in limited partnerships shall be
considered as comparable to operators of producing properties. Thus, if
such a general partner already has a small producer certificate in its
name when the limited partnership is formed, it need only file the
certification provided for in paragraph (b)(6) of this section in order
to have such certificate cover the sales by the limited partnership,
subject to the limitation set forth in paragraph (b)(2) of this section
as to coverage of large producer interests. Coverage of a limited
partnership's sales under a general partner's certificate, however,
shall not constitute authorization for other partners, limited or
general, to make sales outside of the partnership.
(4) The application shall contain all of the information required by
the form prescribed in 250.10 of this chapter. A conformed copy shall
be served upon each of the applicant's purchasers.
(5) Each applicant for a small producer certificate must file a
separate application therefor. However, affiliated producers may file a
joint application, but each such affiliate which is to be covered must
be clearly identified. Coverage will not extend to affiliates not so
identified.
(6) If after filing a small producer application the producer desires
to have its small producer certificate cover additional sales which are
other than small producer sales but which are not otherwise prohibited
from being covered, it need only submit to the Commission a
certification to that effect, under oath, and furnish copies of such
certification to affected parties. The certification should clearly
identify all interests to be covered and show the percentage of
ownership for each large producer interest to be covered. No further
action by the Commission will be necessary other than acknowledgement by
the Secretary. Such coverage will be effective as of the date of filing
of the aforesaid certification with the Commission.
(7) Each application for a blanket certificate by a small producer
must be accompanied by the appropriate fee prescribed in 381.201 of
this chapter, unless a petition for waiver is submitted in lieu thereof
under 381.106 of this chapter.
(c) Rate and certificate regulation under blanket certificate. (1)
Small producers certificated hereunder shall be authorized to make small
producer sales nationwide pursuant to existing and future contracts at
the following rate levels, to the extent contractually permitted:
(i) All sales of natural gas by small producers for resale in
interstate commerce made in accordance with, and under the provisions
of, Opinion Nos. 749, et seq., shall be made at a maximum base rate of
35.0 cents per Mcf at 14.73 psia except as provided for below:
(A) For gas produced in the Permian Basin Area, as defined by Opinion
Nos. 662 and 662-A, and sold pursuant to contracts dated on or after
October 1, 1968, small producers shall be entitled to collect a maximum
base rate of 40.5 cents per Mcf at 14.73 psia.
(B) For gas produced in the Rocky Mountain Area, as defined in
154.109b of this chapter, and sold pursuant to contracts dated on or
after October 1, 1968, small producers shall be entitled to collect a
maximum base rate of 40.5 cents per Mcf at 14.73 psia.
(ii) All sales of natural gas by small producers for resale in
interstate commerce that qualify for the base ceiling rate (52.0 cents
per Mcf at 14.73 psia, with escalations of 1.0 per annum commencing
January 1, 1977) set forth in 2.56a(a)(5) of the Commission's
Statements of General Policy and Interpretations, as prescribed by
Opinion No. 770, et seq., shall be made at a maximum base rate of 130
percent of that ceiling rate.
(iii) All sales of natural gas by small producers for resale in
interstate commerce that qualify for the base ceiling rate (93.0 cents
per Mcf at 14.73 psia, with escalations of 1.0 cent per annum commencing
January 1, 1977) set forth in 2.56a(a)(3) of the Commission's
Statements of General Policy and Interpretations, as prescribed by
Opinion No. 770, et seq., shall be made at a maximum base rate of 130
percent of that ceiling rate.
(iv) All sales of natural gas by small producers for resale in
interstate commerce that qualify for the base ceiling rate ($1.42 per
Mcf at 14.73 psia, with escalations of 1.0 cent per quarter commencing
October 1, 1976) set forth in 2.56a(a)(1) of the Commission's
Statements of General Policy and Interpretations, as prescribed by
Opinion No. 770, et seq., shall be made at a rate no higher than that
ceiling rate.
(v)(A) All sales of natural gas by small producers for resale which
are subject to a maximum lawful price under sections 102(d), 104,
106(a), 107(c)(5), 108, or 109 of the Natural Gas Policy Act of 1978,
shall be made at a price which does not exceed the applicable maximum
lawful price under such section.
(B) Any protest to an assertion of contractural authority to charge
and collect a maximum lawful price under the NGPA shall be submitted to
the Commission, and to the small producer.
(1) In the case of protest by the purchaser in the first sale, within
60 days from the date on which the purchaser knew, or should have known,
of the assertion, or September 1, 1979, whichever is later; or
(2) In any other case, within 60 days after the date on which the
evidentiary submission referencing such contract was filed, or November
5, 1979, whichever is later. A protest filed under this clause (2)
shall also be served upon the purchaser in the first sale.
Each of such small producer base rates is subject to the same
adjustments as may be applicable from time to time to the corresponding
base rates of large producers under Commission orders of general
applicability. Each applicable rate may be charged and received by the
small producer and paid by the purchaser as the lawful, just and
reasonable rate approved by the Commission pursuant to sections 4, 5 and
7 of the Act.
(2) Rate regulation as prescribed herein shall not apply to any
jurisdictional sales made by a small producer under its small producer
certificate other than its small producer sales as defined in paragraph
(a)(5) of this section. Any such other sales made under the small
producer certificate shall be subject to the rate limitations applicable
to comparable large producer sales or otherwise applicable.
(3) Any amounts collected attributable to the small producer rate
differential for sales of gas which are ultimately determined not to be
small producer sales shall be subject to refund with interest at the
rate prescribed in 154.102 of this chapter.
(4) Nothing done hereunder shall be recognized by the Commission as
triggering any escalation clause in an existing contract involving a
producer not covered by a small producer certificate, except as provided
in paragraph (f) of this section.
(5) No small producer shall be relieved from compliance with section
7(b) of the Natural Gas Act with respect to any jurisdictional sales
made by such producer (see 157.30 and 157.39 of this part).
(d) Duration of the exemption. The exemption authorized hereunder
shall remain in effect until the producer granted the exemption no
longer qualifies as a small producer (i.e., through March 31 of the year
immediately following the calendar year in which the producer's
jurisdictional sales, including affiliates' sales, first exceed the
10,000,000 Mcf limitation, or until the producer otherwise loses its
small producer status as set forth in paragraph (a)(1) of this section)
or fails to comply with the terms of the exemption. The small producer
certificate shall automatically terminate simultaneously with the loss
of small producer status as to new sales under contracts dated on or
after the termination date, but the exemption will still be effective as
to those sales under contracts dated prior to the termination date which
were previously covered by the small producer certificate (except as
provided in paragraph (f) of this section), including sales which are
other than small producer sales and which are made at rates limited to
those allowed for comparable large producer sales or otherwise limited.
Upon termination of the exemption, the producer will be required to file
separate certificate applications and individual rate schedules for
future sales.
(e) Effective date and reinstatement of small producer certificate.
A small producer certificate issued pursuant to this section shall be
effective as of the date of filing if the application therefor was filed
after May 3, 1971. If the exemption is terminated pursuant to paragraph
(d) of this section and the producer subsequently regains small producer
status, it must file an application to reinstate its small producer
certificate with respect to new small producer sales, which
reinstatement, when approved, will be effective as of the filing date of
the application therefor. The application for reinstatement shall
contain the same information as is required for a new small producer
certificate, but information previously filed may be incorporated by
reference.
(f) Filings by large producers with respect to related resales and
sales from small producer reserves acquired in place. (1) A large
producer (including, for the purposes hereof, a producing affiliate of a
Major natural gas pipeline company) may file for the price specified in
its related contract for the resale of any natural gas sold to it by a
small producer pursuant to the exemption authorized hereunder. In
determining whether to accept or suspend such a filing, the Commission
shall be guided by the rate level sought and the size of the
differential between the purchase and resale price. A large producer
under an area rate clause in its resale contract may file for the rate
paid by it for gas purchased from a small producer as long as the rate
does not exceed the applicable just and reasonable rate prescribed in
paragraph (c) of this section.
(2) A large producer which acquires small producer reserves in place
on or after July 14, 1977, regardless of whether such acquisition is by
assignment, merger, acquisition of the stock of a small producer entity
or other means, may, if contractually authorized, charge the applicable
small producer rates for any jurisdictional sales from such reserves;
Provided, however, That a large producer shall not be entitled to small
producer rates (i) for sales from small producer reserves acquired by
conversion of an overriding royalty interest to a working interest or
(ii) for sales from small producer reserves being made on July 13, 1977,
which did not qualify as small pro- ducer sales on that date (e.g.,
percentage sales and sales from small producer reserves acquired in
place by a large producer on or before that date).
(g) (Reserved)
(h) Resale authorization for large producer. A large producer who
has filed on or after July 15, 1971, an application for a certificate of
public convenience and necessity for the resale of natural gas purchased
from a small producer authorized to sell such gas pursuant to the
blanket small producer certificate provisions in paragraph (c) of this
section may resell such gas at any time after the filing of such
certificate application pending final Commission action thereon. Any
amounts collected by a large producer for resales made pursuant to this
paragraph in excess of the rate finally determined to be required by the
public convenience and necessity for such resales shall be subject to
refund with interest at the rate prescribed in 154.102 of this chapter.
(Order 568, 42 FR 39095, Aug. 2, 1977, as amended at 44 FR 48177,
Aug. 17, 1979; Order 196, 46 FR 60432, Dec. 10, 1981; Order 248, 47 FR
35182, Aug 13, 1982; Order 360, 49 FR 5081, Feb. 10, 1984; Order 362,
49 FR 7114, Feb. 27, 1984; 50 FR 5746, Feb. 12, 1985; Order 451, 51 FR
22218, June 18, 1986)
18 CFR 157.41 Condition for producer certificates of public convenience
and necessity.
On and after July 30, 1976, all certificates of public convenience
and necessity for the sale of natural gas for resale in interstate
commerce shall be conditioned as follows:
All persons making jurisdictional sales pursuant to the authority
granted by this certificate are hereby given notice that the contractual
obligations between the buyer and the seller are incorporated into the
certificate obligations, and that the certificate is further conditioned
to require that the seller shall observe the standard of a prudent
operator to develop and maintain deliverability from reserves dedicated
hereunder.
(Order 539-B, 41 FR 32885, Aug. 6, 1976; Order 539-B, 41 FR 55707,
Dec. 22, 1976)
18 CFR 157.41 Subpart C -- (Reserved)
18 CFR 157.41 Subpart D -- Exemption of Natural Gas Service for
Drilling, Testing, or Purging from Certificate Requirements
Authority: Natural Gas Act, as amended, 15 U.S.C. 717 et. seq.,
Energy Supply and Environmental Coordination Act, 15 U.S.C. 791 et.
seq., Federal Energy Administration Act, 15 U.S.C. 761 et. seq.,
Natural Gas Policy Act of 1978, Pub. L. 95-621, 92 Stat. 3350,
Department of Energy Organization Act, Pub. L. 95-91, E.O. 12009, 42 FR
46267.
18 CFR 157.53 Drilling of gas or oil wells and testing or purging of
new natural gas pipeline facilities.
(a) Construction and operation of facilities necessary to render
direct natural gas service for use in the drilling of gas or oil wells
or for the use in the testing and purging of new natural gas pipeline
facilities are exempted from the certificate requirements of section
7(c) of the Natural Gas Act, when the construction and operation of such
facilities are conducted in accordance with paragraph (b) of this
section.
(b) Operations undertaken to render direct natural gas service shall
be terminated upon the completion of the well or the purging or testing
of the pipeline facilities. Persons undertaking any construction or
operation of facilities or service under this section shall file an
original and two copies of an annual statement, by February 1 of each
year, describing their activities hereunder.
(43 FR 56544, Dec. 1, 1978)
18 CFR 157.53 Subpart E -- Optional Certificate and Abandonment
Procedures for Applications for New Service Under Section 7 of the
Natural Gas Act
Source: Order 436, 50 FR 42488, Oct. 18, 1985, unless otherwise
noted.
18 CFR 157.100 General.
This subpart establishes optional procedures whereby any eligible
applicant may obtain, for the purpose of providing new service, a
certificate authorizing the following activities subject to the
Commission's jurisdiction:
(a) The transportation of natural gas;
(b) Sales of natural gas;
(c) The construction and operation of natural gas facilities;
(d) The acquisition and operation of natural gas facilities; and
(e) Conditional pre-granted abandonment of such activities and
facilities upon termination of its contractual obligations to provide
the services.
18 CFR 157.101 Definitions.
(a) Statutory terms. Any term defined under the Natural Gas Policy
Act of 1978 (NGPA) means the same under this subpart as under the NGPA.
(b) Subpart E definitions. For purposes of this subpart:
(1) Eligible applicant means any natural gas company or person that
will be a natural gas company upon completion of any proposed
construction or extension of natural gas facilities.
(2) New service means a service for which the applicant for a
certificate under this subpart does not have certificate authority. If
a contract for service provided under a certificate issued pursuant to
this subpart or subpart A of this part is renegotiated to provide for an
increase in existing service or an additional kind of service, only the
additional increment of service or the different service qualifies as
''new service.''
(3) Qualifying facility means a facility or a portion of a facility
that will be used solely to provide new service.
18 CFR 157.102 Contents of application and other pleadings.
(a) General contents. (1) Any application, amendment thereto,
exhibits, and other submissions required under this subpart must be
submitted in the manner prescribed in 157.6(a) and 157.14(a) of this
part and must contain all information necessary to advise the Commission
fully concerning the transportation, sales and other services, and
facilities, construction, extension, or acquisition and operation for
which a certificate and conditional pregranted abandonment authorization
is requested. All applications pursuant to this subpart must be
accompanied by the fee prescribed in part 381 of this chapter or a
petition for waiver pursuant to 381.106 of this chapter.
(2) Except as otherwise provided in paragraph (b) of this section,
any application under this subpart must conform to the requirements of
subpart A of this part. Section 157.11 does not apply to applications
under this subpart.
(b) Specific contents. (1) Any application under this subpart must
contain:
(i) A statement plainly requesting that the application be considered
under the optional procedures of this subpart;
(ii) A statement that the applicant agrees to comply with all terms
and conditions specified in 157.103 of this chapter;
(iii) All exhibits required under 157.14, except for the information
required by 157.14(a) (10), (11) and (18), unless the application is
filed under 157.7;
(iv) If the proposed new service would be provided to a customer that
is located in the service area of a local distribution company, a
statement that the applicant has served a copy of this application on
that local distribution company and the local distribution company's
appropriate state regulatory agency;
(v) An environmental report as specified in appendix A of part 380 of
this chapter, and
(vi) A statement of the rates to be charged for the proposed new
service, including pro forma copies of the rate schedule to be included
in the effective tariff, a statement explaining fully how the proposed
rate was derived, showing clearly whether the proposed rate results from
negotiation, cost-of-service determination, competitive factors or
others, and explaining the bases for the findings and conclusions of any
related studies. Any rate filed under this paragraph for new service
must comply with the conditions set forth in 157.103.
(2) Any person filing a petition to intervene, notice of
intervention, or protest in a proceeding initiated by a certificate
application under this subpart must:
(i) Comply with 157.10; and
(ii) Provide in its filing a statement of all genuine issues of fact
raised by such person, identifying those alleged to be material to a
determination of whether the applicant's requested certificate is or
will be required by the present or future public convenience and
necessity.
(c) Transportation for others. If the application requests a
certificate to provide transportation service under this subpart, the
applicant must state that it has filed for and will accept a blanket
transportation certificate under 284.221 of this chapter, identify the
docket number assigned to that filing, and state that it will comply
with the conditions in subpart A of part 284.
(Order 436, 50 FR 42488, Oct. 18, 1985; 50 FR 45908, Nov. 5, 1985,
as amended at 50 FR 52274, Dec. 23, 1985; Order 486, 52 FR 47910, Dec.
17, 1987; Order 493, 53 FR 15030, Apr. 27, 1988)
18 CFR 157.103 Terms and conditions; other requirements.
(a) Non-exclusivity of certificates issued under this subpart. A
certificate issued pursuant to this subpart must be non-exclusive and
must provide that it in no way prejudices any application for any other
certificate under the Natural Gas Act or for authorization under the
Natural Gas Policy Act.
(b) Certificate limited to qualifying facilities and new service. A
certificate issued under this subpart provides only for authorization to
construct or acquire and operate qualifying facilities and to provide
new service.
(c) Allocation of joint costs. To the extent the service proposed
will utilize existing facilities, the cost of those facilities will be
allocated among the services provided under this subpart and other
services provided.
(d) Rates -- (1) General. Any rate filed for new service under this
subpart must comply with the conditions of this paragraph.
(2) Rate objectives. Maximum rates for both peak and off-peak
periods must be designed, to the maximum extent possible, to achieve the
following three objectives:
(i) Rates for service during peak periods should ration capacity;
(ii) Rates for firm service during off-peak periods and for
interruptible service during all periods should maximize through-put;
and
(iii) The certificate holder's revenue requirement allocated to firm
and interruptible services should be attained by providing the projected
units of service in peak and off-peak periods at the maximum rate for
each service.
(3) Volumetric rates. Except for a reservation charge for firm
transportation service consistent with the conditions in 284.8(d), any
rate filed for new service must be a one-part rate that recovers the
costs allocated to the new service to the extent that the projected
units of that service are actually purchased and may not include a
demand charge, a minimum bill or minimum take provision or any other
provision that has the effect of guaranteeing revenue.
(4) Based on projected units of service. Any rate filed for new
service must be designed to recover costs on the basis of projected
units of service. The units projected for the new service in the
initial rates filed under this subpart may be increased in a subsequent
rate filing but may not be decreased.
(5) Differentiation due to time and distance. Any rate filed for new
service must reasonably reflect any material variation in the cost of
providing the service due to:
(i) Whether the new service is provided during a peak or an off-peak
period; and
(ii) The distance over which the new service is provided.
(6) Cost basis for rates. (i) Any maximum rate filed for new service
must be designed to recover, on a unit basis, solely those costs which
are properly allocated to that service.
(ii) Any minimum rate for new service must be based on the average
variable costs which are properly allocated to that service.
(7) Rate flexibility. (i) Any rate schedule filed for new service
must state a maximum rate and a minimum rate.
(ii) The certificate holder may charge an individual customer for new
service any rate that is neither greater than the maximum rate nor less
than the minimum rate on file for that service.
(iii) The certificate holder may not file a revised or new rate
designed to recover costs not recovered under rates previously in
effect.
(iv) If, during any billing period, a certificate holder charges a
rate or collects a reservation fee that is less than the maximum rate or
fee that could be charged, the certificate holder must, within 45 days
of the close of the billing period, file a report with the Commission
identifying:
(A) The maximum rate or fee and the rate or fee actually charged
during the billing period;
(B) The customer; and
(C) Any corporate affiliation between the customer and the
certificate holder.
(8) Prohibitions against cost shifting. No costs originally
allocated to a new service may subsequently be allocated to any other
services without a filing under 154.63 of this part and a determination
by the Commission that the costs sought to be reallocated are in fact
being incurred for the benefit of the other services.
(e) No revenue guarantees for new sales service. No demand charge,
reservation fee, minimum bill provision, minimum take provision, or any
other provision that has effect of guaranteeing revenue may be imposed
for firm or interruptible sales service provided under this subpart.
(f) Conditional pre-granted abandonment authority.
(1) Subject to paragraph (f)(2) and (f)(3) of this section, if
requested by the applicant in its application, any order issuing a
certificate under this subpart must provide conditional pre-granted
authority to abandon the proposed new service and qualifying facilities
at the expiration of the contracts under-lying the new service.
(2) At least forty-five days prior to the expiration of any
contractual agreement with a customer to provide new service, a
certificate holder that intends to abandon any part of the new service
upon expiration of the contractual agreement for that service must
provide the customer and the Commission with written notice of the
proposed abandonment.
(3) A customer receiving notice of a proposed abandonment of new
service to it may file a protest under 157.106 of this subpart.
(g) Flexible receipt point authority. (1) A certificate holder
authorized to transport gas under a certificate issued pursuant to this
subpart may at the request of the shipper and without prior notice:
(i) Reduce or discontinue receipts of natural gas at a particular
point from a supplier, and
(ii) Commence or increase receipts at a particular point from that
supplier or any other supplier. The total natural gas volumes received
by the interstate pipeline following any such reassignment must not
exceed the total volume of natural gas that the certificate holder is
authorized under the certificate issued pursuant to this subpart to
transport on behalf of the shipper.
(2) The receipt points to which natural gas volumes may be reassigned
under this paragraph include eligible facilities under 157.208 of this
part which are authorized to be constructed and operated pursuant to a
certificate issued under subpart F of this part.
(h) Flexible delivery point authority. (1) A certificate holder
authorized to transport gas under a certificate issued pursuant to this
subpart may at the request of the shipper and without prior notice:
(i) Reduce or discontinue deliveries of natural gas to a particular
delivery point; and
(ii) Commence or increase deliveries to a particular delivery point.
(2) The total natural gas volumes delivered by the certificate holder
following any such reassignment must not exceed the total amount of
natural gas that the certificate holder is authorized under the
certificate issued pursuant to this section to transport on behalf of
the shipper.
(3) The delivery points to which natural gas volumes may be
reassigned under this paragraph include facilities authorized to be
constructed and operated pursuant to a certificate issued under subpart
F of this part.
(i) Environmental compliance. Any certificate issued under this
subpart is subject to the terms and conditions of 157.206(d) of this
chapter.
(j) Commencement of new service. Any authorized construction,
extension, or acquisition of qualifying facilities must be completed and
in actual operation by the applicant and any authorized operation,
service, or sale must be actually undertaken and regularly performed by
the applicant (within a period of time to be specified by the Commission
in each order) from the issue date of the order issuing the certificate.
The certificate holder may apply to the Director of the Office of
Pipeline and Producer Regulation for an extension of this deadline.
18 CFR 157.104 Hearings.
(a) General. The Commission will schedule each application for
public hearing at the earliest possible date giving due consideration to
statutory requirements and other matters pending, with notice thereof as
provided by 157.9 and 385.2009 of this chapter.
(b) Shortened procedure. If no protest or petition to intervene
raises a genuine issue of material fact, the Commission may upon request
of the applicant dispose of an application in accordance with the
provisions of 385.802 of this chapter.
(c) Presumption. If an application complies fully with the
requirements of 157.102 and 157.103, it is presumed, subject to
rebuttal that:
(1) The applicant is qualified to perfrom all the activities for
which certificate authorization is requested;
(2) The applicant is willing and able to perform acts and provide
service, as proposed, and to comply with the Natural Gas Act and any
applicable regulations thereunder; and
(3) The proposed new service is or will be required by the present or
future public convenience and necessity.
18 CFR 157.105 Issuance of certificate.
A certificate requested under this subpart will be issued if:
(a) The application for the certificate complies fully with 157.102
and 157.103; and
(b) The presumptions established under 157.104 are not rebutted.
18 CFR 157.106 Protests to abandonment of new service.
(a) Notice by certificate holder under 157.103(f). Any authority
pre-granted to a certicate holder to abandon any new service or
qualifying facilities authorized by a certificate issued under this
subpart upon the expiration of any contract for such new service, is
conditional and subject to protest by any customer to which the new
service is provided.
(b) Protest procedure. (1) If a new service customer received notice
of a proposed abandonment from a certificate holder in accordance with
157.103(f), the customer may, within 30 days prior to such expiration
date, file a petition under 385.207 of this chapter to protest the
abandonment and request the Commission to direct the certificate holder
to continue the new service in accordance with the expired contractual
agreement.
(2) The Commission may require the certificate holder to continue to
provide the new service described in the abandonment notice under
157.103(f) where the Commission determines that:
(i) Continuation of the new service is necessary because the customer
is unable, after having made all reasonable efforts, to arrange for
alternative service, and
(ii) The customer will pay the rate on file for the new service.
18 CFR 157.106 Subpart F -- Interstate Pipeline Blanket Certificates and Authorization Under Section 7 of the Natural Gas Act for Certain Transactions and Abandonment
18 CFR 157.201 Applicability.
(a) Scope. This subpart establishes a procedure whereby an
interstate pipeline may obtain a blanket certificate authorizing certain
construction and operation of facilities, sales arrangements and certain
certificate amendments and abandonment under section 7 of the Natural
Gas Act.
(b) Who may apply. This procedure is only applicable to interstate
pipelines.
(c) Cross-reference. The procedures applicable to transportation by
interstate pipelines under blanket certificates are set forth in subpart
G of part 284 of this chapter.
(d) Availability of case-specific certificates. Nothing in this
subpart shall preclude an interstate pipeline from proceeding under any
other provision of the Commission's regulations to obtain Commission
approval of abandonments or a temporary or permanent certificate of
public convenience and necessity.
(Order 234, 47 FR 24266, June 4, 1982, as amended by Order 436, 50 FR
42490, Oct. 18, 1985)
18 CFR 157.202 Definitions.
(a) General rule. Terms defined in the Natural Gas Policy Act of
1978 (NGPA) shall have the same meaning for the purposes of this subpart
as they have under the Natural Gas Policy Act of 1978.
(b) Subpart F definitions. For purposes of this subpart:
(1) Certificate holder means any interstate pipeline with an
effective blanket certificate issued pursuant to this subpart.
(2)(i) Eligible facility means, except as provided in paragraph
(b)(2)(ii) of this section, any facility subject to the Natural Gas Act
jurisdiction of the Commission that is necessary to provide service
within existing certificated volumes, or any gas supply facility.
Eligible facility includes any facility needed by the certificate holder
to receive gas from a supplier and interconnecting points between
transporters that transport natural gas under 284.221 of this chapter.
(ii) Exclusions: ''Eligible facility'' does not include:
(A) A main line of a transmission system;
(B) An extension of a main line;
(C) A facility, including compression and looping, that alters the
capacity of a main line;
(D) A facility required to test, develop or utilize an underground
storage field or to store gas above ground in either a gaseous or
liquefied state;
(E) Sales taps;
(F) A facility that crosses a state line and is constructed for the
primary purpose of transporting gas which is also transported by an
intrastate pipeline under section 311(a)(2) of the NGPA;
(G) A facility constructed to effect the purchase of gas from plants
manufacturing synthetic gas or from plants gasifying liquefied natural
gas.
(3) Facility does not include the items described in 2.55 of this
chapter.
(4) Gas supply facility means a facility subject to the Natural Gas
Act jurisdiction of this Commission which is necessary to connect the
system of a certificate holder, or the system of a pipeline (including
the certificate holder) authorized to transport gas for or exchange gas
with an interstate pipeline company, to natural gas supplies destined
for the system supply of an interstate pipeline company.
(5) Main line means the principal transmission facilities of a
pipeline system extending from supply areas to market areas and does not
include small-diameter lateral or gathering lines.
(6) Miscellaneous rearrangement of any facility means any
rearrangement of a facility that does not result in any change of
service rendered by means of the facilities involved, e.g., changes in
existing field operations or relocation of existing sales or
transportation facilities when required by highway construction, dam
construction or similar reasons.
(7) Project means a unit of improvement or construction which, upon
completion, is used and useful without any further construction of
facilities.
(8) Project cost means the total actual cost of constructing the
jurisdictional portions of a project. In the case of a project
constructed jointly by more than one interstate pipeline, the project
cost is the total cost, irrespective of the amount paid by each
pipeline.
(9) Right-of-way grantor means (i) a person who grants a right-of-way
easement to the certificate holder; or (ii) any successor to an
interest which is subject to the easement.
(10) Sales tap means metering and appurtenant facilities necessary to
enable the certificate holder to deliver gas to a distribution customer
or an end-user, irrespective of whether the certificate holder owns the
gas to be transported.
(11) Sensitive environmental area means:
(i) The habitats of species which have been identified as endangered
or threatened under the Endangered Species Act (Pub. L. 93-205, as
amended);
(ii) National or State Forests or Parks;
(iii) Properties listed on, or eligible for inclusion in, the
National Register of Historic Places, or the National Register of
Natural Landmarks;
(iv) Floodplains and wetlands;
(v) Designated or proposed wilderness areas, national or state wild
and scenic rivers, wildlife refuges and management areas and
sanctuaries;
(vi) Prime agricultural lands, designated by the Department of
Agriculture; or
(vii) Sites which are subject to use by American Indians and other
Native Americans for religious purposes.
(12) Storage service means the receipt of natural gas for injection
into storage and the subsequent withdrawal of an equivalent volume (less
any fuel or unaccounted for volumes) at a later date.
(13) High priority end use means any use of natural gas:
(i) Certified by the Secretary of Agriculture under 7 CFR 2900.3 as
an ''essential agricultural use'' under section 401(c) of the Natural
Gas Policy Act of 1978;
(ii) In a hospital or school or similar institution as defined in
281.103(a) (11) and (12) of this chapter;
(iii) In a commercial establishment that uses 50 Mcf or more of
natural gas on a peak day;
(iv) For plant protection; or
(v) For process and feedstock needs.
(14) High priority end user means any person who consumes natural gas
in a high priority end use.
(Order 234, 47 FR 24266, June 4, 1982, as amended by Order 319, 48 FR
34888, Aug. 1, 1983; Order 319-A, 48 FR 51446, Nov. 9, 1983; Order
436, 50 FR 42490, Oct. 18, 1985)
18 CFR 157.203 Blanket certification.
(a) Effect. A blanket certificate issued pursuant to this subpart
authorizes the certificate holder, in accordance with the provisions of
this subpart, to engage in any of the activities specified in 157.208
through 157.218 (as may be amended from time to time).
(b) Automatic authorization. A blanket certificate issued pursuant
to this subpart authorizes the certificate holder to engage in
transactions described in 157.208(a), 157.211(a), 157.213(a), 157.215,
157.216(a), 157.217 or 157.218 without further Commission approval.
(c) Prior notice required. A blanket certificate issued pursuant to
this subpart authorizes the certificate holder to engage in activities
described in 157.208(b), 157.211, 157.211(b), 157.212, 157.213(b),
157.214, or 157.216(b), if the requirements of 157.205 have been
fulfilled.
(Order 234, 47 FR 24266, June 4, 1982, as amended by Order 319, 48 FR
34888, Aug. 1, 1983; Order 436, 50 FR 42490, Oct. 18, 1985)
18 CFR 157.204 Application procedure.
(a) Who may apply. Any interstate pipeline which has been issued a
certificate other than a limited-jurisdiction certificate, pursuant to
section 7 of the Natural Gas Act and had rates accepted by the
Commission may apply for a blanket certificate under this subpart in the
manner prescribed in 157.6(a), 157.14(a) and 385.2011 of this chapter.
(b) Hearing procedure. Upon receiving an application for a blanket
certificate under this subpart, the Commission will conduct a hearing
pursuant to section 7(c) of the Natural Gas Act and 1.32 and 157.11 of
this chapter.
(c) Issuance. If required by the present or future public
convenience and necessity, the Commission will issue a blanket
certificate to the applicant.
(d) Application contents. Applications for blanket certificates
shall contain:
(1) Information indicating the exact legal name of the applicant;
its principal place of business; whether the applicant is an
individual, partnership, corporation or otherwise; citation to the
certificate proceeding in which the applicant was found to be a natural
gas company; the state under the laws of which the applicant is
organized or authorized to do business; and the name, title, and
mailing address and telephone number of the person or persons to whom
communications concerning the application are to be addressed;
(2) A list of outstanding budget-type certificates issued to the
applicant pursuant to 157.7;
(3) A statement that the applicant will comply with the terms,
conditions and procedures specified in this subpart;
(4) A list of any currently effective rate schedules which would
apply to any service authorized by 157.210 or 157.213 and an
explanation of the treatment of revenues under such rate schedules.
(5) A list of all on-going storage field tests which were commenced
under a budget-type certificate issued under 157.7(d).
(e) Filing fees. Each application for a blanket certificate under
this subpart must be accompanied by the fee prescribed by part 381 of
this chapter or a petition for waiver pursuant to 381.106 of this
chapter.
(Order 234, 47 FR 24266, June 4, 1982, as amended by Order 319, 48 FR
34888, Aug. 1, 1983; Order 433, 50 FR 40345, Oct. 3, 1985; Order 436,
50 FR 42490, Oct. 18, 1985; Order 493, 53 FR 15030, Apr. 27, 1988)
18 CFR 157.205 Notice procedure.
(a) Applicability. No activity described in 157.208(b), 157.210,
157.211(a)(2), 157.212, 157.213(b), 157.214, 157.216(b) or 284.223(b) is
authorized by a blanket certificate granted under this subpart or by
part 284, unless, prior to undertaking such activity:
(1) The notice requirements have been fulfilled in accordance with
the provisions of this section; and
(2) Either (i) no protest has been filed pursuant to paragraph (e) of
this section or, (ii) if a protest has been filed, it has been withdrawn
pursuant to paragraph (g) of this section.
(b) Contents. In addition to the fee prescribed in paragraph (c) of
this section, for any activity subject to the requirements of this
section, the certificate holder must file with the Secretary of the
Commission before October 31, 1989, an original and fifteen copies, and
on or after October 31, 1989, as prescribed in 157.6(a) and 385.2011
of this chapter, a request for authorization under the notice procedures
of this section that contains:
(1) The exact legal name of the certificate holder and mailing
address and telephone number of the person or persons to whom
communications concerning the request are to be addressed;
(2) The docket number in which its blanket certificate was issued;
(3) Any information required in 157.208 through 157.218 of this
chapter for the particular activity;
(4) A verified statement that the proposed activity complies with the
requirements of this subpart;
(5) A form of notice suitable for publication in the Federal Register
which briefly summarizes the facts contained in the request with
sufficient particularity so as to notify the public of its scope and
purpose; and
(6) Identities and docket numbers of other applications related to
the transaction. All related filings must be made within 10 days of the
first filing. Otherwise the applications on file will be rejected under
paragraph (d) of this section without prejudice to refiling when all
parties are ready to proceed.
(c) Fees. The certificate holder must file the fee prescribed in
381.208 of this chapter or a petition for waiver pursuant to 381.106 of
this chapter, except that no fee will be assessed for abandonment
activities under 157.216(b) of this chapter or for transportation under
284.223(b) of this chapter, if the fee required under 284.223(d) for
the initial report has previously been paid for existing transportation
authorized by 284.223(a) of this chapter.
(d) Rejection of request. The Director of the Office of Pipeline and
Producer Regulation may reject at any time a request which patently
fails to comply with the provisions of paragraph (b) of this section.
(e) Publication of notice of request. (1) Unless the request has
been rejected pursuant to paragraph (c) of this section, the Secretary
of the Commission shall publish a notice of the request in the Federal
Register as soon as it is practicable. The notice shall designate a
deadline for filing protests, or interventions to the request. The
deadline shall be 45 days after the date of issuance of the notice of
the request.
(f) Protests (1) Any person or the Commission's staff may a protest
prior to the deadline. Copies of the protest must be served on the
Secretary of the Commission and the certificate holder.
(2) Protests shall be filed in the following form:
(Name of pipeline holding blanket certificate)
Docket No. (Include both docket no. of the blanket certificate and
the prior notice transaction)
(Name of Protestor) hereby protests the request filed by (Name of
pipeline) to conduct a (sale, transportation, construction of
facilities, abandonment, etc.) under 157. -- of the Commission's
regulations. Protestor seeks to have this request processed as a
separate application.
(Include a brief statement of Protestor's interest in the activity
and the grounds for the objection and whether the protestor seeks to be
an intervenor.)
(g) Effect of protest. If a protest is filed in accordance with
paragraph (e) of this section, then the certificate holder, the person
who filed the protest, any intervenors, and staff shall have 30 days
from the deadline determined in accordance with paragraph (d) of this
section, to resolve the protest, and to file a withdrawal of the protest
pursuant to paragraph (g) of this section. Informal settlement
conferences may be convened by the Director of the Office of Pipeline
and Producer Regulation or his designee. If a protest is not withdrawn
pursuant to paragraph (g) of this section, the activity shall not be
deemed authorized by the blanket certificate. Instead, the request
filed by the certificate holder shall be treated as an application for
section 7 authorization for the particular activity. The Federal
Register notice of the request shall be deemed to be notice of the
section 7 application sufficient to fulfill the notice requirement of
157.9 and 157.10.
(h) Withdrawal of protests. The protestor may withdraw a protest
within the 30 day period following the deadline determined in accordance
with paragraph (d) of this section by submitting written notice of
withdrawal to the Secretary of the Commission and serving a copy on the
certificate holder, any intervenors and any other party requesting
service. The withdrawal must state that the certificate holder, the
protestor, and staff concur in the withdrawal.
(i) Final authorization. (1) If no protest is filed within the time
allowed by the Secretary, the certificate holder is authorized to
conduct the activity under its blanket certificate, effective on the day
after time expires for filing protests and interventions unless, during
that time, the certificate holder withdraws its application in
accordance with 385.216 of this chapter.
(2) If any protest is filed within the time allowed for protest and
interventions and is subsequently withdrawn under paragraph (g) of this
section, the certificate holder is authorized to conduct the activity
under its blanket certificate, effective upon the day after the
withdrawal of all protests, unless the certificate holder withdraws its
application in accordance with 385.216 of this chapter prior to that
date.
(Order 234, 47 FR 24266, June 4, 1982, as amended by Order 234-A, 47
FR 38877, Sept. 3, 1982; Order 319, 48 FR 34888, Aug. 1, 1983; Order
436, 50 FR 42490, Oct. 18, 1985; Order 494, 53 FR 15381, Apr. 29,
1988; Order 493-B, 53 FR 49653, Dec. 9, 1988)
18 CFR 157.206 Standard conditions.
Any activity authorized under a blanket certificate issued under this
subpart is subject to the following conditions:
(a) Revisions. (1) The Commission reserves the right to amend the
requirements of this subpart from time to time.
(2) The blanket certificate is not transferable in any manner and
shall be effective only so long as the certificate holder continues the
activities authorized by the order issuing such certificate and does so
in accordance with the provisions of the Natural Gas Act, as well as
applicable rules, regulations, and orders of the Commission.
(b) Production-related costs. At such time as the certificate holder
proposes to recover in its rates any costs incurred by it to compress,
process, treat, or gather natural gas purchased or transported by it,
the certificate holder may be required to prove that the activity which
engendered those costs was prudent. In determining prudence, the
Commission will apply the statement of policy set out under 2.102 of
this chapter.
(c) Liquids, liquefiable hydrocarbons and non-hydrocarbon
constituents. To the extent that the certificate holder transports
liquids and liquefiable hydrocarbons or non-hydrocarbon constituents
other than natural gas which are ultimately removed from the natural gas
stream pursuant to the blanket certificate, or uses facilities
authorized by the blanket certificate for the transportation of such
substances, the issuance of the blanket certificate is without prejudice
to a determination of the proper apportionment of costs between:
(1) The transportation and handling of liquids and liquefiable
hydrocarbons or non-hydrocarbon constituents which are ultimately
removed from the gas stream; and
(2) The transportation and handling of natural gas; at the time that
the certificate holder files to include in its natural gas rates the
costs associated with the facilities or the activities authorized
herein, or in any proceeding where the apportionment of the certificate
holder's costs to liquids and liquefiable hydrocarbons or
non-hydrocarbon constituents is at issue.
(d) Environmental compliance. (1) The certificate holder shall adopt
the guidelines set forth in 2.69 of this chapter for all activities
authorized by the blanket certificate and shall issue the relevant
portions thereof to construction personnel, instructing them to use
these guidelines.
(2) All activities shall be consistent with all applicable law
including the provisions of the following statutes and regulations or
compliance plans developed to implement these statutes:
(i) Clean Water Act, as amended (33 U.S.C. 1251 et seq.) and the
National Pollution Discharge Elimination System Program, 40 CFR part 122
et seq. ;
(ii) Clean Air Act, as amended (42 U.S.C. 1801 et seq.) and air
quality regulations and state implementation plans adopted pursuant to
40 CFR parts 50-99;
(iii) National Historic Preservation Act of 1966 (16 U.S.C. 470 et
seq.);
(iv) Archeological and Historic Preservation Act of 1974 (Pub. L.
93-291);
(v) Coastal Zone Management Act of 1972, as amended (16 U.S.C. 1451
et seq.);
(vi) Endangered Species Act of 1973, Pub. L. 93-205, as amended (16
U.S.C. 1531 et seq.);
(vii) Executive Order 11988, May 24, 1977 requiring Federal agencies
to evaluate the potential effects of any actions it may take on a
floodplain;
(viii) Executive Order 11990, May 24, 1977 requiring an evaluation of
the potential effects of construction on wetland;
(ix) Wild and Scenic Rivers Act (16 U.S.C. 1274 et seq.);
(x) National Wilderness Act (16 U.S.C. 1133 et seq.);
(xi) National Parks and Recreation Act of 1978 (16 U.S.C. 1 and 230
et seq.).
(3) The certificate holder shall be deemed in compliance with:
(i) Paragraph (d)(2)(vi) of this section only if it adheres to the
procedures in appendix I of this subpart in which case the Commission
finds that endangered species and their critical habitat are protected
in accordance with 16 U.S.C. 1536;
(ii) Paragraph (d)(2)(iii) of this section only if it adheres to the
procedures in appendix II of this subpart in which case the Commission
finds that there is no effect on any property protected by 16 U.S.C.
470f;
(iii) Paragraph (d)(2)(v) of this section only if the appropriate
state agency designated to administer the state's coastal zone
management plan, prior to construction of the project, waives its right
of review or determines that the project complies with the state's
coastal zone management plan.
(4) Any transaction authorized under a blanket certificate shall not
have a significant adverse impact on a sensitive environmental area.
(5) The noise attributable to any compressor facility installed
pursuant to the blanket certificate shall not exceed a day-night sound
level (Ldn) of 55 dB (A) at any noise-sensitive area unless the
noise-sensitive areas (such as schools, hospitals, or residences) are
established after facility construction.
(6)(i) Any activity otherwise subject to authorization under 157.208
shall not be authorized if the activity is located within 0.5 mile of a
nuclear power plant which is either operating or under construction, or
for which a construction permit has been filed with the Nuclear
Regulatory Commission.
(ii) Any activity otherwise subject to authorization under 157.215
shall not be authorized if the activity is located within 2.0 miles of a
nuclear power plant which is either operating or under construction, or
for which a construction permit has been filed with the Nuclear
Regulatory Commission.
(7) The certificate holder shall act as the Commission's non-Federal
representative upon acceptance of the blanket certificate for purposes
of complying with the Endangered Species Act of 1973.
(e) Budget-type certificates. Upon the acceptance of a certificate
issued pursuant to this subpart, the certificate holder shall surrender
any currently effective budget-type certificate issued pursuant to
157.7 of this part.
(f) Commencement. Any authorized construction, extension, or
acquisition shall be completed and in actual operation by the
certificate holder and any authorized operation, service or sale shall
be actually undertaken within one year of the date the activity is
authorized pursuant to 157.205(h). The certificate holder may apply to
the Director of the Office of Pipeline and Producer Regulation for an
extension of this deadline.
(g) Reports. The certificate holder shall file reports as required
by this subpart.
(h) Treatment of revenues. (1) Except as provided in paragraph
(h)(2) and (3) of this section, all revenues received for storage
services authorized under 157.213 or for sales for resale authorized
under 157.210 in excess of an allowance of one cent per MMBtu shall be
credited to Account No. 191 and flowed back to the certificate holder's
customers.
(2) A certificate holder is not required to credit revenues to
Account No. 191 pursuant to paragraph (h)(1) of this section:
(i) If representative levels of revenues attributable to such
services have been credited in arriving at a test period cost of
service; or
(ii) If representative levels of volumes for such services have been
included in billing determinants for the purposes of establishing rates.
(3) The certificate holder may elect to forego the one cent per MMBtu
allowance provided in paragraph (h)(1) of this section. If the
certificate holder so elects, it is not required to credit to Account
No. 191 any amount which, upon application, is demonstrated to
represent the out-of-pocket expenses of the certificate holder in
connection with a transaction authorized under this subpart.
(Order 234, 47 FR 24266, June 4, 1982, as amended by Order 234-A, 47
FR 38877, Sept. 3, 1982; Order 436, 50 FR 42490, Oct. 18, 1985)
18 CFR 157.207 General reporting requirements.
On or before May 1, of each year, the certificate holder must file,
in the manner prescribed in 157.6(a) and 385.2011 of this chapter, an
annual report signed under oath by a senior official of the company,
that lists for the previous calendar year:
(a) For each new facility authorized as by 157.208, the information
specified in 157.208(e);
(b) For each sales tap authorized under 157.211(a)(1), the
information required by 157.211(c);
(c) For each storage service authorized under 157.213(a), the
information specified in 157.213(c);
(d) For each storage project tested or developed under 157.215, the
information specified in 157.215(b)(1);
(e) For each abandonment authorized under 157.216(a), the
information specified in 157.216(d);
(f) For each change in rate schedule authorized under 157.217, the
information specified in 157.217(b);
(g) For each change in customer name authorized under 157.218, the
information specified in 157.218(b); and
(g) If any activity required to be reported under this section was
not undertaken, a statement to that effect.
(Order 436, 50 FR 42490, Oct. 18, 1985, as amended by Order 493, 53
FR 15030, Apr. 27, 1988)
18 CFR 157.208 Construction, acquisition, operation, and miscellaneous
rearrangement of facilities.
(a) Automatic authorization. If the project cost does not exceed the
cost limitations set forth in column 1 of Table I, under paragraph (d)
of this section, the certificate holder is authorized to (1) make
miscellaneous rearrangements of any facility, or (2) acquire, construct,
or operate any eligible facility.
(b) Prior notice. If the project cost is greater than the amount
specified in column 1 of Table I, but less than the amount specified in
column 2 of Table I, the certificate holder is authorized to (1) make
miscellaneous rearrangements of any facility, or (2) acquire, construct,
or operate any eligible facility.
(c) Contents of request. In addition to the requirements of
157.205(b), requests filed for activities described under paragraph (b)
of this section shall contain:
(1) A description of the purpose of the proposed facilities including
their relationship to other existing or planned facilities;
(2) A detailed description of the proposed facilities specifying
length, diameter, wall thickness and maximum operating pressure for
pipeline; and for compressors, the size, type, and number of compressor
units, horsepower required, horsepower existing and proposed, volume of
fuel gas, suction and discharge pressure and compression ratio;
(3) A USGS 7 1/2 minute series (scale 1:24000) topographic map (or
map of equivalent or greater detail, as appropriate) showing the
location of the proposed facilities, and indicating the location of any
sensitive environmental areas within one-quarter mile of project-related
construction activities;
(4) A map showing the relationship of the proposed facilities to the
applicant's existing facilities;
(5) A flow diagram or comparative study showing daily design
capacity, daily maximum capacity and operating pressures with and
without the proposed facilities for that portion of the certificate
holder's system affected by the proposal;
(6) Gas supply and market data or studies, or other circumstances,
supporting the need for the proposed facilities.
(7) The estimated cost and method of financing the proposed
facilities;
(8) A statement clearly showing the effect on the certificate
holder's operating revenues and operating expenses of the estimated
revenues and expenses related to the proposed facilities;
(9) A statement explaining how the public convenience and necessity
requires the approval of the project;
(10) For acquisitions of facilities:
(i) A statement referencing the date of issuance, docket number and
title of the proceeding for any certificate issued by the Commission
authorizing the facilities proposed to be acquired; and
(ii) The amounts recorded in the accounts of the vendor (seller or
lessor) that apply to the facilities proposed to be acquired and the
accumulated provisions for depreciation, depletion, and amortization;
(11) A concise analysis discussing the relevant issues outlines in
appendix A of part 380 of this chapter. The analysis must identify the
existing environmental conditions and the expected significant impacts
that the proposed action, including proposed mitigation measures, will
cause to the quality of the human environment, including impact expected
to occur to sensitive environmental areas. When compressor facilities
are proposed, the analysis must also describe how the proposed action
will be made to comply with applicable State Implementation Plans
developed under the Clean Air Act. The analysis must also include a
description of the contacts made, reports produced, and results of
consultations which took place to ensure compliance with the Endangered
Species Act, National Historic Preservation Act and the Coastal Zone
Management Act.
(d) Limits and inflation adjustment. The limits specified in Tables
I and II shall be adjusted each calendar year to reflect the ''GNP
implicit price deflator'' published by the Department of Commerce for
the previous calendar year. The Director of the Office of Pipeline and
Producer Regulation is authorized to compute and publish limits for
future calendar years as a part of Tables I and II, pursuant to
375.307(t) of this chapter.
(e) Reporting requirements. For each facility completed during a
calendar year pursuant to this section, the certificate holder shall
file in the manner prescribed in 157.6(a) and 385.2011 of this chapter
as part of the required annual report under 157.207(a) the following
information:
(1) A description of the facilities installed pursuant to this
section, including a description of the length and size of pipelines,
compressor horsepower, metering facilities, taps, valves, and any other
facilities constructed;
(2) The specific purpose, location, and completion date of the
facilities installed, and, if applicable, a statement indicating the
extent to which the facilities were jointly constructed;
(3) The actual installed cost of each facility item listed pursuant
to paragraph (e)(1), separately stating the cost of materials and labor
as well as other costs allocable to the facilities;
(4) The estimated gas supply in Mcf at 14.73 psia made available to
the certificate holder by means of the described facilities;
(5) The names of the fields connected;
(6) The specific location of the supply source or well attached if
the attachment is for gas owned or produced by the certificate holder;
(7) The names of the independent producers, other sellers or
intrastate pipelines from whom the gas is being purchased or received,
together with the respective dates of their gas sales or transportation
contracts and any FERC authorization or gas rate schedule designations
if the facility is to receive gas purchased by the applicant;
(8) A description of the contacts made, reports produced, and results
of consultations which took place to ensure compliance with the
Endangered Species Act, the National Historic Preservation Act and the
Coastal Zone Management Act;
(9) For acquisitions of facilities:
(i) A statement referencing the date of issuance, docket number and
title of the proceeding for any certificate issued by the Commission
authorizing the facilities acquired; and
(ii) The amounts recorded in the accounts of the vendor (seller or
lessor) that apply to the facilities acquired and the accumulated
provisions for depreciation, depletion, and amortization.
(f) Special conditions. (1) For purposes of comparing the project
cost of leased facilities with the per-project cost limitations in Table
I of this section, the project cost of leased facilities shall be the
annual lease charge multiplied by the number of years of the lease.
(2) In the interest of safety and reliability of service, facilities
authorized by the certificate shall not be operated at pressures
exceeding the maximum operating pressure set forth in the request. In
the event the certificate holder thereafter wishes to change such
maximum operating pressure it shall file an appropriate request pursuant
to the procedures set forth in 157.205(b). Such request shall include
the reasons for the proposed change. Nothing contained herein
authorizes the certificate holder to operate any facility at a pressure
above the maximum prescribed by State law, if such law requires a lower
pressure than authorized hereby.
(g) If the actual cost of the project exceeds the per-project cost
authorized under a blanket certificate in Table I of this section, the
certificate holder shall apply to the Director of the Office of Pipeline
and Producer Regulation for a waiver of those project cost limits.
(Order 234, 47 FR 24266, June 4, 1982, as amended by Order 486, 52 FR
47910, Dec. 17, 1987; Order 493, 53 FR 15030, Apr. 27, 1988; 56 FR
7565, Feb. 25, 1991; 57 FR 4717, Feb. 10, 1992; 58 FR 6893, Feb. 3,
1993)
157.209 (Reserved)
18 CFR 157.210 Sales for resale.
(a) Prior notice. Subject to the notice requirements of 157.205,
the certificate holder is authorized to sell natural gas in interstate
commerce for resale, if:
(1) The buyer is an interstate pipeline acquiring the gas for its
system supplies;
(2) The sale does not exceed a period of one year;
(3) The certificate holder has a surplus of gas supplies that is in
excess of the amount required to serve the certificate holder's existing
on-system customers and that is at least equal to the volumes to be sold
in the proposed transaction;
(4) The sale is made at the higher of the certificate holder's:
(i) System average load factor rate (based upon the rates in effect
at the time the request is filed pursuant to 157.205); or
(ii) Average section 102 gas acquisition cost (based upon the
certificate holder's most recent purchased gas adjustment filing at the
time the request is filed pursuant to 157.210);
(5) The sale does not involve the sale of any natural gas acquired by
the certificate holder solely or primarily for the purpose of making a
sale under this section;
(6) The buyer is not an interstate pipeline authorized to sell gas to
the certificate holder during the duration of the sale;
(7) The certificate holder has actual or potential take or pay
liability; and
(8) The sale is subject to interruption by the certificate holder to
the extent that natural gas subject to the sale is required to provide
adequate service to the certificate holder's on-system customers at the
time of the sale.
(b) Contents of request. In addition to the requirements of
157.205(b), requests filed for activities described in paragraph (a) of
this section shall contain:
(1) The identity of the seller and buyer;
(2) The dates of commencement and anticipated termination of the
sale;
(3) The estimated total and daily quantities (in MMBtu's) of natural
gas to be sold in the transaction;
(4) The rate to be charged and the applicable rate schedules;
(5) An affidavit that service pursuant to the sale is subject to
interruption to the extent that natural gas subject to the sale under
this section is required to enable the certificate holder to provide
adequate service to its on-system customers;
(6) The total quantity of gas being sold in transactions authorized
by this section at the time of the request;
(7) A copy of the contract, if the identity of the buyer is known;
(8) A statement quantifying the extent of actual or potential
take-or-pay liability;
(9) A gas supply/requirements balance demonstrating a sufficient
surplus such that service to the certificate holder's on-system
customers will not be affected by the proposed sale; and
(10) Identification of delivery points.
(Order 319, 48 FR 34890, Aug. 1, 1983)
18 CFR 157.211 Sales taps.
(a) Construction and operation -- (1) Automatic authorization. The
certificate holder may construct and operate sales taps for the delivery
of gas to an end-user, if:
(i) The natural gas is ultimately delivered to, and consumed by, a
right-of-way grantor; and
(ii) Not more than 200 MMBtu of natural gas per day are to be
delivered to the right-of-way grantor.
(2) Prior notice. Subject to the notice procedure of 157.205, the
certificate holder may construct and operate sales taps for service to
end-users other than a right-of-way grantor, if:
(i) The natural gas is ultimately consumed by an end-user that is, or
will be, served directly or indirectly from the general system supply of
the certificate holder, or the natural gas is being delivered to a
shipper for whom the certificate holder is, or will be, authorized to
transport gas;
(ii) The volumes delivered are within the certificated entitlements
of the customer; and
(iii) The certificate holder's tariffs do not prohibit the addition
of new delivery points.
(b) Contents of request. In addition to the requirements of
157.205(b), requests for activities authorized under paragraph (a)(2)
must contain:
(1) The name of any distributor or the end-user and the location of
all proposed sales taps;
(2) The authority for the current service to the distributor or
end-user;
(3) The quantity of gas to be delivered through the proposed
facility;
(4) The rate or rate schedules applicable to the service made through
the proposed tap; and
(5) A description, with supporting data, of the impact of the service
rendered through the proposed sales tap upon the certificate holder's
peak day and annual deliveries.
(c) Reporting requirements. As part of the certificate holder's
annual report of projects authorized under paragraph (a)(1) of this
section, the certificate holder must report in the manner prescribed in
157.6(a) and 385.2011 of this chapter:
(1) The name of the end-user;
(2) The maximum daily volumes to be sold; and
(3) The actual cost of the sales tap and date placed in service.
(d) Indirect customers. The authorization in paragraphs (a) and (b)
of this section applies irrespective of whether the certificate holder
sells the natural gas directly to the end-user or the natural gas is
delivered to the end-user for the account of a local distribution
company.
(Order 436, 50 FR 42491, Oct. 18, 1985, as amended by Order 493, 53
FR 15030, Apr. 27, 1988)
18 CFR 157.212 Changes in delivery points.
(a) Prior notice. Subject to the notice requirements of 157.205,
the certificate holder is authorized to add new delivery points for a
customer or to reassign volumes of gas to be delivered from one of the
customer's delivery points to another, and to construct and operate any
appurtenant facilities, if:
(1) The total volumes to be delivered to the customer after the
request do not exceed the total volumes authorized prior to the request;
(2) The change is not prohibited by an existing tariff of the
certificate holder; and
(3) The certificate holder has sufficient capacity to accomplish the
deliveries specified under the amendment without detriment or
disadvantage to the certificate holder's other customers.
(b) Contents of request. In addition to the requirements of
157.205(b), requests filed for activities described under paragraph (a)
shall contain:
(1) The name of the customer;
(2) The location of the delivery points;
(3) The present and proposed quantities of natural gas to be
delivered at each of the affected delivery points and the end-use of the
gas; and
(4) A description, with supporting data, of the impact of the
proposed changes in delivery points on the certificate holder's peak day
and annual deliveries.
(Order 234, 47 FR 24266, June 4, 1982 as amended by Order 234-A, 47
FR 38877, Sept. 3, 1982)
18 CFR 157.213 Storage services.
(a) Automatic authorization. The certificate holder is authorized to
provide contract storage services and any incidental transportation on
behalf of any person, if:
(1) The storage service is within the certificated capacity of the
certificate holder's existing storage facilities;
(2) The storage arrangement does not exceed a period of two years;
(3) The rates charged for the storage and transportation service are
covered by a currently effective rate schedule; and
(4) The contract for the storage service provides that the service
under the contract shall be subject to the availability of capacity
sufficient to provide the service without detriment or disadvantage to
the certificate holder's existing customers who are dependent upon the
certificate holder's general system supply.
(b) Prior notice. Subject to the notice requirements of 157.205,
the certificate holder is authorized to provide transportation and
storage services specified in paragraph (a) for periods in excess of two
years.
(c) Contents of request and reporting requirements. In any annual
report filed for transactions under paragraph (a), and in any request
for services authorized under paragraph (b), the certificate holder
shall provide, in addition to the requirements of 157.207(a) and
157.205(b), the following information:
(1) The name of the customer;
(2) A copy of the storage service agreement;
(3) The location of the storage facility proposed to be used;
(4) The amount of storage capacity in the facility rendered under the
contract, and the amount of uncommitted storage capacity remaining after
executing the storage service agreement;
(5) Citation to the rate schedule applying to the storage service and
a statement explaining the treatment of revenues under that rate
schedule;
(6) The end-use of the gas involved in the transportation and storage
services, to the extent it can be determined; and
(7) A description, with supporting data, of the impact of the
proposed storage and incidental transportation service on the peak day
and annual deliveries of the certificate holder and of the proposed
recipient of the storage service if it is an interstate pipeline.
(Order 234, 47 FR 24266, June 4, 1982, as amended by Order 234-A, 47
FR 38877, Sept. 3, 1982)
18 CFR 157.214 Increase in storage capacity.
(a) Prior notice. Subject to the notice requirements of 157.205,
the certificate holder is authorized to increase the maximum volume of
natural gas authorized to be stored in a storage field to the extent
that geological data and operating experience have demonstrated that a
volume of natural gas greater than that currently certificated may be
safely stored without the construction of additional facilities.
(b) Contents of request. In addition to the requirements of
157.205(b), requests filed for activities described in paragraph (a)
shall contain:
(1) Current and requested maximum storage capacity;
(2) Current and requested maximum storage pressure;
(3) Average depth of the storage formation;
(4) Copies of any geological or engineering studies that demonstrate
the feasibility of the increase in storage volume; and
(5) A statement setting forth the purpose of the proposed increased
capacity.
(c) Reporting requirements. For any storage facility whose capacity
is increased pursuant to this section, the certificate holder shall
submit, in the manner prescribed in 385.2011 of this chapter,
semi-annual reports (to coincide with the termination of the injection
and withdrawal cycles) containing the information listed in subdivisions
(1) through (8) of this paragraph. The certificate holder shall
continue to file semi-annual reports until the storage inventory volume
has reached, or closely approximates, the maximum specified in the
request. Thereafter, the reports shall continue on a semi-annual basis
for a period of one year. The filing of reports shall be discontinued
thereafter unless otherwise ordered by the Commission. (Volumes shall
be stated at 14.73 psia and 60 F, and pressures shall be stated in
psia.)
(1) The daily volume of natural gas injected into and withdrawn from
the storage reservoir.
(2) The volume of natural gas in the reservoir at the end of the
reporting period.
(3) The maximum daily injection or withdrawal rate experienced during
the reporting period and the average working pressure on such maximum
days taken at a central measuring point where the total volume injected
or withdrawn is measured.
(4) Results of any tracer program by which the leakage of injected
gas may be determined. If the leakage of gas exists, the report should
show the estimated total volume of gas leakage, the volume of recycled
gas and the remaining inventory of gas in the reservoir at the end of
the reporting period.
(5) Any surveys of pressures in gas wells, water levels in
observation wells, pump test results for the aquifer-type reservoirs,
and the results of back-pressure tests conducted during the reporting
period.
(6) The latest revised structure and isopachous contour maps showing
the location of the wells, the location and extent of the gas bubble in
the storage reservoir for aquifer-type reservoirs and in any other
reservoirs of the project in which gas bubbles are known to exist. This
map need not be filed if there is no material change from the map
previously filed.
(7) Discussion of current operating problems and conclusions.
(8) Such other data or reports which may aid the Commission in the
evaluation of the storage project.
(Order 234, 47 FR 24266, June 4, 1982, as amended by Order 493, 53 FR
15030, Apr. 27, 1988)
18 CFR 157.215 Underground storage testing and development.
(a) Automatic authorization. The certificate holder is authorized to
construct and operate natural gas pipeline and compression facilities
for the testing or development of underground reservoirs for the
possible storage of gas, if:
(1) The testing and development of a particular storage project will
be completed within a three-year-period;
(2) The quantity of natural gas injected into the prospective storage
fields pursuant to the blanket certificate does not exceed a total of
10,000,000 Mcf at any time in all fields with no more than 2,000,000 Mcf
injected into any single field;
(3) Gas will be injected for testing purposes only during off-peak
periods;
(4) The storage field developed pursuant to this section will not be
utilized to render service without further authorization from the
Commission, except that gas may be withdrawn on occasion for testing
purposes; and
(5) The total expenditures per calendar year pursuant to this section
do not exceed the amount specified in Table II as adjusted pursuant to
157.208(d). These costs shall include expenditures for leases, wells,
pipeline, compressors, and related facilities, but shall exclude the
cost of the natural gas to be used for testing purposes.
(b) Reporting requirements -- (1) Annual reports. For any storage
project tested or developed pursuant to this section, the certificate
holder shall file, in the manner prescribed in 157.6(a) and 385.2011
of this chapter as part of the annual report required under 157.207(a),
the following information:
(i) A description of the facilities constructed and the type of
storage reservoir, i.e., gas expansion or dry gas, water-drive or
aquifer;
(ii) The location of the facilities;
(iii) The cost of such facilities and date placed in service;
(iv) The monthly volumes of gas injected into and withdrawn from each
reservoir;
(v) An estimate of the storage capacity and daily deliverability of
each project; and
(vi) A description of the contacts made, reports produced, and
results of consultations which took place to ensure compliance with the
Endangered Species Act, the National Historic Preservation Act and the
Coastal Zone Management Act.
(2) Quarterly reports. If the reservoir to be tested and developed
is an aquifer-type reservoir, the certificate holder shall file, in the
manner prescribed in 157.6(a) and 385.2011 of this chapter unless
otherwise ordered by the commission, for each such project quarterly
reports, under oath, until the project is either certificated for
regular service or abandoned. The quarterly report shall contain the
following information in addition to the data required by paragraph
(b)(1) of this section:
(i) The daily volumes of natural gas injected into and withdrawn from
the aquifer during the quarter and the volume of gas in the aquifer at
the end of each month;
(ii) The maximum daily injection or withdrawal rate experienced
during the quarter and the average working pressure on such maximum days
taken at a central measuring point where the total volume injected or
withdrawn is measured;
(iii) Results of any tracer program by which leakage of gas may be
determined;
(iv) Any pressure surveys of gas wells and water levels in
observation wells conducted during the quarter by individual well, and
copies of any core analyses, gamma ray, neutron or other electric log
surveys and back-pressure tests taken during the quarter;
(v) A map of the storage project showing the location of the wells,
the latest revised structure contours, and the location and extent of
the gas bubble. This map need not be filed if there is no material
change from the map previously filed; and
(vi) Such other data or reports which may aid the Commission in the
evaluation of the project.
(c) Accounting. The cost of any project ultimately determined to be
infeasible for storage shall be charged to Account No. 822 of part 201,
Underground Storage Exploration and Development Expenses.
(Order 234, 47 FR 24266, June 4, 1982, as amended by Order 493, 53 FR
15030, Apr. 27, 1988; 56 FR 7565, Feb. 25, 1991; 57 FR 4717, Feb. 7,
1992; 58 FR 6893, Feb. 3, 1993)
18 CFR 157.216 Abandonment.
(a) Automatic authorization. The certificate holder is authorized
pursuant to section 7(b) of the Natural Gas Act to abandon gas supply
facilities, if:
(1) The supplier has been authorized to abandon its sale; or
(2) No abandonment of the supplier's sale is required under the
Natural Gas Act by operation of section 601(a)(1) of the NGPA.
(b) Prior Notice. Subject to the notice requirements of 157.205,
the certificate holder is authorized pursuant to section 7(b) of the
Natural Gas Act to abandon any sales tap or lateral line and related
facilities and service if all of the existing customers of the pipeline
served through the sales tap or lateral line consent in writing to the
abandonment. When filing a request for authorization of the proposed
abandonment under the notice procedures of 157.205, the certificate
holder shall notify, in writing, the State public service commission
having regulatory authority over retail sales to the indirect customers
served through the sales tap or lateral line.
(c) Contents of request. In addition to the requirements of
157.205(b), requests filed for activities described under paragraph (b)
shall describe:
(1) The location of the subject facilities;
(2) The docket authorizing the construction and operation of the
facilities to be abandoned;
(3) An oath statement that all of the customers served by the subject
facilities have consented to the abandonment, or an explanation of why
the customers' consent is not available; and
(4) A proposed accounting treatment of any facilities to be
abandoned.
(d) Reporting requirements. The annual report filed by the
certificate holder shall contain, for each abandonment authorized under
paragraph (a) of this section:
(1) The name of the supplier;
(2) The docket numbers of the certificates authorizing the sale of
gas and the construction and operation of the facilities to be
abandoned;
(3) The accounting treatment of the facilities abandoned; and
(4) The date the facilities were actually abandoned.
(Order 234, 47 FR 24266, June 4, 1982, as amended by Order 234-A, 47
FR 38877, Sept. 3, 1982)
18 CFR 157.217 Changes in rate schedules.
(a) Automatic authorization. The certificate holder is authorized to
permit an existing customer, at the customer's request, to change from
one rate schedule to another, if:
(1) The combined volumetric limitations on deliveries to the customer
under both rate schedules are not increased, for either annual or peak
day limitations; and
(2) The changes are consistent with the terms of effective tariffs on
file with the Commission.
(b) Reporting requirements. In the annual report for any year in
which the certificate holder has permitted an existing customer to
change from one rate schedule to another pursuant to this section, the
certificate holder shall state:
(1) The name of the customer;
(2) The rate schedules involved; and
(3) The effective date of the change.
(Order 234, 47 FR 24266, June 4, 1982)
18 CFR 157.218 Changes in customer name.
(a) Automatic authorization. The effective certificates of the
certificate holder may be amended to the extent necessary to reflect the
change in the name of an existing customer, if:
(1) The change in customer name is the result of a corporate
reorganization or acquisition;
(2) The certificate holder has filed any necessary conforming changes
in its tariffs; and
(3) The customer's use of gas will not be affected.
(b) Reporting requirements. For each customer name change authorized
during a calendar year, the certificate holder shall include as a part
of its annual report:
(1) The old and new names of the customer; and
(2) A brief explanation of the reason for the name change.
(Order 234, 47 FR 24266, June 4, 1982)
18 CFR 157.218 Pt. 157, Subpt. F, App. I
18 CFR 157.218 Appendix I to Subpart F -- Procedures for Compliance
with the Endangered Species Act of 1973 Under 157.206(d)(3)(i)
The following procedures apply to any certificate holder which
undertakes a project to be authorized under a blanket certificate issued
pursuant to subparts E or F of part 157 and to any other service subject
to 157.206(d) of the Federal Energy Regulatory Commission's
(Commission) regulations.
Pursuant to 157.206(d)(7) of the Commission's regulations, the
certificate holder shall, upon acceptance of its blanket certificate, be
designated as the Commission's non-Federal representative to the U.S.
Fish and Wildlife Service (FWS) and the National Marine Fisheries
Service (NMFS) in order to conduct informal consultations with those
agencies. For purposes of this appendix, ''listed species'' and
''critical habitat'' shall have the same meanings as set forth in 50 CFR
402.02. The certificate holder shall be deemed in compliance with
157.206(d)(2)(vii) of the Commission's regulations only if, prior to
constructing facilities or abandoning facilities by removal under the
blanket certificate, it complies with the following procedures:
1. The certificate holder shall contact the appropriate regional
office of either the FWS or the NMFS (or both the FWS and the NMFS, if
appropriate) as determined pursuant to 50 CFR 402.01 for the purpose of
initiating informal consultations.
2. The certificate holder shall be deemed in compliance with
157.206(d)(2)(vii) of the Commission's regulations if the consulted
agency (either the FWS or NMFS, or both if appropriate) initially
determines, pursuant to the informal consultations:
(a) That no listed species or its critical habitat occur in the
project area; and
(b) That no species proposed to be listed under 16 U.S.C. 1533 or its
critical habitat occur in the project area.
3. If the consulted agency, pursuant to the informal consultations,
initially determines that any species proposed to be listed under 16
U.S.C. 1533 or its critical habitat occur in the project area, then the
certificate holder shall confer with the consulted agency on how
potential impact can be avoided or reduced. Upon completion of the
conference and the implementation of any mitigating measures the
certificate holder elects to implement, and compliance with paragraph 4
of this Appendix, if applicable, the certificate holder shall be deemed
in compliance with 157.206(d)(2)(vii) of the Commission's regulations.
4. (a) If the consulted agency initially determines, pursuant to the
informal consultations, that a listed species or its critical habitat
may occur in the project area, then the certificate holder shall
continue informal consultation with the consulted agency to determine if
the proposed project may affect such species or habitat. Continued
informal consultations may include discussions with experts (including
experts provided by the consulted agency), field surveys, biological
assessments, and formulation of mitigation measures.
(b) The certificate holder shall be deemed in compliance with
157.206(d)(2)(vii) of the Commission's regulations if the consulted
agency agrees with the certificate holder's determination resulting from
the continued informal consultations, that the proposed project will not
affect the listed species or its critical habitat.
(c) If the consulted agency does not agree with such determination by
the certificate holder, or if the certificate holder concludes that the
proposed project may affect listed species or the critical habitat of
such species, then the certificate holder may not proceed with the
proposed project under the blanket certificate.
(Order 234, 47 FR 24266, June 4, 1982, as amended by Order 436, 50 FR
42491, Oct. 18, 1985)
18 CFR 157.218 Pt. 157, Subpt. F, App. II
18 CFR 157.218 Appendix II to Subpart F -- Procedures for Compliance
with the National Historic Preservation Act of 1966 Under
157.206(d)(3)(ii)
The following procedures apply to any certificate holder which
undertakes a project under the authority of a blanket certificate issued
pursuant to subparts E or F of part 157 and to any other service subject
to 157.206(d) of the Federal Energy Regulatory Commission's
(Commission) regulations. For the purposes of this appendix, the
following definitions apply:
(a) ''Listed property'' means any district, site, building, structure
or object which is listed (1) on the National Register of Historic
Places, or (2) in the Federal Register as a property determined to be
eligible for inclusion on the National Register.
(b) ''SHPO'' means the State Historic Preservation Officer or any
alternative person duly designated to advise on cultural resource
matters.
(c) ''Unlisted property'' means any district, site, building,
structure or object which is not a listed property.
The certificate holder shall be deemed to be in compliance with
157.206(d)(2)(iv) of the Commission's regulations only if, prior to
constructing facilities or abandoning facilities by removal under the
blanket certificate, it complies with the following procedures:
(1)(a) If federally administered land would be directly affected by
the project, then the procedures used by the appropriate Federal land
managing agency to comply with section 106 of the National Historic
Preservation Act of 1966, 16 U.S.C. 470f, shall take precedence over
these procedures. The procedures in this appendix apply to State and
private lands, and Federal lands for which there are no other Federal
procedures.
(b) If there is no SHPO or if the SHPO declines to consult with the
certificate holder, the certificate holder shall so inform the
Environmental Evaluation Branch, Office of Pipeline and Producer
Regulation, of the Commission, and shall not proceed with these
procedures or the project until an alternate consultant has been duly
designated.
(2) It shall be the certificate holder's responsibility to identify
or cause to be identified listed properties and unlisted properties that
satisfy the National Register Criteria for Evaluation (36 CFR 1202.6),
that are located within the area of the project's potential
environmental impact and that may be affected by the undertaking.
(3) The certificate holder shall:
(a) Check the National Register of Historic Places and consult with
the SHPO to identify all listed properties within the area of the
project's potential environmental impact;
(b) Consult with the SHPO, and to the extent deemed appropriate by
the SHPO, check public records and consult with other individuals and
organizations with historical and cultural expertise, to determine
whether unlisted properties that satisfy the National Register Criteria
for Evaluation are known or likely to occur within the area of the
project's potential environmental impact; and
(c) Consult with the SHPO to determine the need for surveys to
identify unknown unlisted properties. The certificate holder shall
evaluate the eligibility of any known unlisted properties located within
the area of the project's potential environmental impact according to
the National Register Criteria for Evaluation.
(4) The certificate holder shall be deemed in compliance with
157.206(d)(2)(iv) of the Commission's regulations if the SHPO agrees
with the certificate holder that no survey is required, and that no
listed properties or unlisted properties that satisfy the National
Register Criteria for Evaluation occur in the area of the project's
potential environmental impact.
(5) If the SHPO determines that surveys are required to ensure that
no listed properties, or unlisted properties that satisfy the National
Register Criteria for Evaluation, occur within the area of the project's
potential environmental impact, the certificate holder shall perform
surveys deemed by the SHPO to be of sufficient scope and intensity to
identify and evaluate such properties. The certificate holder shall
submit the results of the surveys including a statement as to which
unlisted properties satisfy the National Register Criteria for
Evaluation, to the SHPO and solict comments on the surveys and the
conclusions.
(6) The certificate holder shall be deemed in compliance with
157.206(d)(2)(iv) of the Commission's regulations if, upon conclusion of
the surveys, the certificate holder and the SHPO agree that no listed
properties, and no unlisted properties which satisfy the National
Register Criteria for Evaluation, occur in the area of the project's
potential environmental impact.
(7) For each listed property, and each unlisted property which
satisfies the National Register Criteria for Evaluation, which is
located within the area of the project's potential environmental impact,
the certificate holder, in consultation with the SHPO, shall apply the
Criteria of Effect (36 CFR 800.3(a)) to determine whether the project
will have an effect upon the historical, architectural, archeological,
or cultural characteristics of the property that qualified it to meet
National Register Criteria for Evaluation. The certificate holder shall
be deemed in compliance with 157.206(d)(2)(iv) of the Commission's
regulations if the certificate holder and the SHPO agree that the
project will not affect these characteristics.
(8) If either the certificate holder or the SHPO finds that the
project may affect a listed property or an unlisted property which
satisfies the National Register Criteria for Evaluation, located within
the area of the project's potential environmental impact, then the
project shall not be authorized under the blanket certificate unless
such properties can be avoided by relocation of the project to an area
where the SHPO agrees that no listed properties or unlisted properties
that satisfy the National Register Criteria for Evaluation occur. The
certificate holder shall be deemed in compliance with 157.206(d)(2)(iv)
of the Commission's regulations if the project is relocated as described
above.
(9) If the certificate holder and the SHPO are unable to agree upon
the need for a survey, the adequacy of a survey, or the results of
application of the Criteria for Evaluation to an unlisted property, the
project shall not be authorized under the blanket certificate.
(Order 234, 47 FR 24266, June 4, 1982, as amended by Order 436, 50 FR
42491, Oct. 18, 1985)
18 CFR 157.218 Subpart G -- Natural Gas Producer Blanket Authorization for Sales and Abandonment
18 CFR 157.301 Blanket certificate authority, pre-granted abandonment,
and reporting requirements.
(a) Blanket certificate authority. Any first seller of natural gas
that is authorized to abandon the sale of gas under 157.30 (c) or (d)
or the good faith negotiation procedures set forth in 270.201 of this
chapter, is granted a certificate of public convenience and necessity to
sell such gas for resale in interstate commerce, subject to the
reporting requirements of paragraph (c) of this section.
(b) Pre-granted abandonment. Any first seller who sells natural gas
under the blanket certificate authority of paragraph (a) of this section
is authorized to abandon the sale upon termination of the contract under
which the sale is made.
(c) Reporting requirement. Any first seller who makes sales under
the blanket certificate authority of this section must file a report
with the Commission not later than April 1 of each year providing the
following information with respect to any sales under that certificate
initiated during the preceding calendar year:
(1) Name of former purchaser;
(2) Name of new purchaser;
(3) Location of sale (field, block, county, State, etc.);
(4) Contract date;
(5) Contract term;
(6) Average price; and
(7) Estimated annual sales volume (mcf).
(d) Waiver of rate filing requirements. The rate filing requirements
of 154.92 and 154.94 of this chapter are waived for sales under a
certificate granted by this section.
(Order 451, 51 FR 22218, June 18, 1986, as amended by Order 490, 53
FR 4133, Feb. 12, 1988; Order 451-A, 53 FR 7504, Mar. 9, 1988; 53 FR
8176, Mar. 14, 1988)
18 CFR 157.301 PART 158 -- ACCOUNTS, RECORDS, AND MEMORANDA
Sec.
158.1 Notice of deficiencies.
158.2 Response to notification.
158.3 Facts and argument.
158.4 Form and style.
158.5 Verification.
158.6 Determination.
158.7 Assignment for oral hearing.
158.8 Burden of proof.
158.10 Examination of accounts.
158.11 Report of certification.
158.12 Qualifications of accountants.
Authority: Department of Energy Organization Act, 42 U.S.C.
7102-7352 (1982); E.O. 12009, 3 CFR 142 (1978); Natural Gas Policy
Act, 15 U.S.C. 3301-3432 (1982).
Source: Order 141, 12 FR 8603, Dec. 19, 1947, unless otherwise
noted.
18 CFR 157.301 Adjustments of Accounts and Reports
18 CFR 158.1 Notice of deficiencies.
If, as the result of an examination by a representative of the
Commission of the accounts of a person subject to the Act and to the
Commission's accounting requirements, or of an examination of any
statement or report submitted by such person, it appears that the
accounts, or any books or records pertaining to or in support thereof,
are not being kept and maintained as required by the Commission, or that
the statements or reports prepared and submitted are not in proper form,
the failure or deficiency will be called to the attention of such person
either formally or informally as the circumstances appear to warrant.
18 CFR 158.2 Response to notification.
If, as the result of such formal or informal notice, the matter is
not adjusted within the time fixed by said notice, or within a
reasonable time in case no date is specified, or if there is a
disagreement between such person and the Commission or its
representative respecting the application or interpretation of the Act
or requirements of the Commission with respect to the matter at issue,
such person will be requested to advise the Commission in writing within
a time to be specified whether it consents to the disposition of the
questions involved under the shortened procedure hereinafter provided.
18 CFR 158.3 Facts and argument.
If the person consents to the matter being handled under such
shortened procedure, the person and any other parties interested,
including representatives of the Commission, shall submit to the
Commission, within 30 days after the receipt of notice from the
Commission to do so, a memorandum of the facts and, separately stated,
of the argument relied upon, to sustain the position taken respecting
the matter at issue together with copies in sufficient number to enable
the Commission to retain three copies for its own use and make service
in accordance with 385.2010 of this chapter upon all parties designated
in said notice. Twenty days will be allowed in which to file a reply by
any party who filed an original memorandum.
(Order 141, 12 FR 8603, Dec. 19, 1947, as amended by Order 225, 47 FR
19057, May 3, 1982)
18 CFR 158.4 Form and style.
Each memoranda must be complete in itself. All pertinent data should
be set forth fully, and each memorandum should set out the facts and
argument as prescribed for briefs in 385.706 of this chapter.
(Order 141, 12 FR 8603, Dec. 19, 1947, as amended by Order 225, 47 FR
19057, May 3, 1982)
18 CFR 158.5 Verification.
The facts stated in the memorandum must be sworn to by persons having
knowledge thereof, which latter fact must affirmatively appear in the
affidavit. Except under unusual circumstances, such persons should be
those who would appear as witnesses if hearing were had to testify as to
the facts stated in the memorandum.
18 CFR 158.6 Determination.
If no formal hearing is had the matter in issue will be determined by
the Commission on the basis of the facts and arguments submitted.
18 CFR 158.7 Assignment for oral hearing.
In case consent to the shortened procedure is not given, or if at any
stage of the proceeding prior to the submission of the case to the
Commission any party in interest requests a hearing, the proceeding will
be assigned for hearing as provided for by subpart E of part 385 of this
chapter. The Commission may also in its discretion set the proceeding
for hearing on its own motion at any stage thereof.
(Order 141, 12 FR 8603, Dec. 19, 1947, as amended by Order 225, 47 FR
19057, May 3, 1982)
18 CFR 158.8 Burden of proof.
The burden of proof to justify every accounting entry shall be on the
person making, authorizing, or requiring such entry.
18 CFR 158.8 Certification of Compliance with Accounting Regulations
18 CFR 158.10 Examination of accounts.
(a) All Major and Nonmajor natural gas companies not classifed as
Class C or Class D prior to January 1, 1984 shall secure for the year
1968 and each year thereafter until December 31, 1975, the services of
an independent certified public accountant, or independent licensed
public accountant, certified or licensed by a regulatory authority of a
State or other political subdivision of the United States, to test
compliance in all material respects of those schedules as are indicated
in the General Instructions set out in the Annual Report, Form No. 2,
with the Commission's applicable Uniform System of Accounts and
published accounting releases. The Commission expects that
identification of questionable matters by the independent accountant
will facilitate their early resolution and that the independent
accountant will seek advisory rulings by the Commission on such items.
This examination shall be deemed supplementary to periodic Commission
examinations of compliance.
(b) Beginning January 1, 1976, and each year thereafter, only
independent certified public accountants, or independent licensed public
accountants who were licensed on or before December 31, 1970, will be
authorized to conduct annual audits and to certify to compliance in all
material respects, of those schedules as are indicated in the General
Instructions set out in the Annual Report, Form No. 2, with the
Commission's applicable Uniform System of Accounts, published accounting
releases and all other regulatory matters.
(Sec. 10, 52 Stat. 826; 15 U.S.C. 717i)
(Order 462, 37 FR 26006, Dec. 7, 1972, as amended by Order 390, 49 FR
32515, Aug. 14, 1984)
18 CFR 158.11 Report of certification.
Each Major or Nonmajor natural gas company not classifed as Class C
or Class D prior to January 1, 1984 shall file with the Commission a
letter or report of the independent accountant certifying approval,
together with or within 30 days after the filing of the Annual Report,
Form No. 2, covering the subjects and in the form prescribed in the
General Instructions of the Annual Report. The letter or report shall
also set forth which, if any, of the examined schedules do not conform
to the Commission's requirements and shall describe the discrepancies
that exist. The Commission shall not be bound by a certification of
compliance made by an independent accountant pursuant to this paragraph.
(Sec. 10, 52 Stat. 826; 15 U.S.C. 717i)
(Order 356, 33 FR 143, Jan. 5, 1968, as amended by Order 390, 49 FR
32516, Aug. 14, 1984)
18 CFR 158.12 Qualifications of accountants.
The Commission will not recognize any certified public accountant or
public accountant through December 31, 1975, who is not in fact
independent. Beginning January 1, 1976, and each year thereafter, the
Commission will recognize only independent certified public accountants,
or independent licensed public accountants who were licensed on or
before December 31, 1970, who are in fact independent. For example, an
accountant will not be considered independent with respect to any person
or any of its parents or subsidiaries in who he has, or had during the
period of report, any direct financial interest. The Commission will
determine the fact of independence by considering all the relevant
circumstances including evidence bearing on the relationships between
the accountant and that person or any affiliate thereof.
(Sec. 10, 52 Stat. 826; 15 U.S.C. 717i)
(37 FR 26006, Dec. 7, 1972)
18 CFR 158.12 PART 161 -- STANDARDS OF CONDUCT FOR INTERSTATE PIPELINES
WITH MARKETING AFFILIATES
Sec.
161.1 Applicability.
161.2 Definitions.
161.3 Standards of conduct.
Authority: 15 U.S.C. 717-717w, 3301-3432; 42 U.S.C. 7101-7352.
18 CFR 161.1 Applicability.
This part applies to any interstate natural gas pipeline that
transports gas for others pursuant to subpart A of part 157, and
subparts B, G, H, or K of part 284 and is affiliated with a natural gas
marketing or brokering entity, except a pipeline that does not conduct
any transportation transactions with its affiliated marketer.
(Order 497-A, 54 FR 52791, Dec. 22, 1989)
18 CFR 161.2 Definitions.
For purposes of this part:
Affiliate, when used in relation to any person, means another person
which controls, is controlled by, or is under common control with, such
person.
Control (including the terms ''controlling,'' ''controlled by,'' and
''under common control with'') includes, but is not limited to, the
possession, directly or indirectly and whether acting alone or in
conjunction with others, of the authority to direct or cause the
direction of the management or policies of a company. A voting interest
of 10 percent or more creates a rebuttable presumption of control.
Marketing or brokering as used in this part and 250.16 of this
chapter means:
(1) A first sale of natural gas as that term is defined in 270.203
of this chapter, or a sale of natural gas in interstate commerce for
resale by a seller that is not an interstate pipeline, except when:
(i) The first seller is selling gas solely from its own production;
or
(ii) The first seller is selling gas solely from its own gathering or
processing facilities.
(2) An off-system sale by an intrastate natural gas pipeline or a
sale under section 311(b) of the Natural Gas Policy Act as codified in
284.142 of this chapter; or
(3) An off-system sale by a local distribution company or a sale
under 284.224 of this chapter.
Marketing or Brokering as used in this part and 250.16 of this
chapter does not include a sale by an interstate natural gas pipeline
under a blanket certificate that authorizes the pipeline to make
interruptible sales of surplus system supply gas.
Potential shippers means all current transportation and sales
customers of an interstate natural gas pipeline, and all persons who
have pending requests for transportation service or for information
regarding transportation service on that pipeline.
Transportation as used in this part and 250.16 of this chapter
includes any transactions which provide for receipt of gas at one point
and redelivery of gas to a second point, including exchanges, back-hauls
and other transactions in which case the gas transported is owned,
brokered or sold by the affiliates.
(Order 497, 53 FR 22161, June 14, 1988, as amended by Order 497-A, 54
FR 52792, Dec. 22, 1989)
18 CFR 161.3 Standards of conduct.
An interstate natural gas pipeline must conduct its business to
conform to the following standards:
(a) It must apply a tariff provision relating to transportation in
the same manner to the same or similarly situated persons if there is
discretion in the application of the provision.
(b) It must strictly enforce a tariff provision for which there is no
discretion in the application of the provision.
(c) It may not, through a tariff provision or otherwise, give its
marketing affiliate preference over nonaffiliated customers in matters
relating to part 284 transportation including, but not limited to,
scheduling, balancing, transportation, storage, or curtailment priority.
(d) It must process all similar requests for transportation in the
same manner and within the same period of time.
(e) It may not disclose to its affiliate any information the pipeline
receives from a nonaffiliated shipper or potential nonaffiliated
shipper.
(f) To the extent it provides to a marketing affiliate information
related to transportation of natural gas, or information related to gas
sales or gas marketing on its system or the system of an affiliated
pipeline, it must provide that information contemporaneously to all
potential shippers, affiliated and nonaffiliated, on its system.
Pipelines are not required to contemporaneously disclose: (1) Gas sales
or gas marketing information that is available from public sources and
(2) information related to gas sales or gas marketing off a pipeline's
system, but not involving the system of an affiliated pipeline.
(g) To the maximum extent practicable its operating employees and the
operating employees of its marketing affiliate must function
independently of each other.
(h) It may not condition or tie its agreement to release gas subject
to take-or-pay relief to an agreement by the producer, customer,
end-user, or shipper relating to any service by its marketing affiliate,
any services by it on behalf of its marketing affiliate, or any services
in which its marketing affiliate is involved.
(i) If a pipeline offers a transportation discount to an affiliated
marketer, it must make a comparable discount contemporaneously available
to all similarly situated nonaffiliated shippers.
(j) By September 12, 1988, it must file with the Commission
procedures that will enable shippers and the Commission to determine how
the pipeline is complying with the standards in this section.
(k) A pipeline must maintain its books of account and records (as
prescribed under part 201) separately from those of its affiliate.
(l) A pipeline must maintain and make available for copying on a
daily basis a written log of waivers that the pipeline grants with
respect to tariff provisions that provide for such discretionary
waivers.
(Order 497, 53 FR 22161, June 14, 1988; 53 FR 25240, July 5, 1988;
Order 497-A, 54 FR 52792, Dec. 22, 1989; Order 497-D, 57 FR 58982, Dec.
14, 1992)
18 CFR 161.3 SUBCHAPTER F -- ACCOUNTS, NATURAL GAS ACT
18 CFR 161.3 PART 201 -- UNIFORM SYSTEM OF ACCOUNTS PRESCRIBED FOR NATURAL GAS COMPANIES SUBJECT TO THE PROVISIONS OF THE NATURAL GAS ACT
18 CFR 161.3 Pt. 201
Authority: Natural Gas Act, 15 U.S.C. 717-717w (1982); Natural Gas
Policy Act of 1978, 15 U.S.C. 3301-3432 (1982); Department of Energy
Organization Act, 42 U.S.C. 7101-7352 (1982); E.O. 12009, 3 CFR 1978
Comp., p. 142.
Source: Order 219, 25 FR 5616, June 21, 1960.
Editorial Note: For Federal Register citations affecting part 201,
see the List of CFR Sections Affected in the Finding Aids section of
this volume.
Note: Order 141, 12 FR 8504, Dec. 19, 1947, provides in part as
follows:
Prescribing a system of accounts for natural gas companies under the
Natural Gas Act. The Federal Power Commission acting pursuant to
authority granted by the Natural Gas Act (58) Stat. 821, as amended;
15 U.S.C. and Sup. 717 et seq.), particularly sections 8(a), 10(a) and
16 thereof, and finding such action necessary and appropriate for
carrying out the provisions of said Act, ordered that:
(a) The accompanying system of accounts, entitled ''Uniform System of
Accounts Prescribed for Natural Gas Companies Subject to the Provisions
of the Natural Gas Act,'' and the rules and regulations contained
therein, be adopted;
(b) Said system of accounts and said rules and regulations contained
therein be and the same are hereby prescribed and promulgated as the
system of accounts and rules and regulations of the Commission to be
kept and observed by natural gas companies subject to the jurisdiction
of the Commission, to the extent and in the manner set forth therein;
(c) Said system of accounts and rules and regulations therein
contained as to all natural gas companies now subject to the
jurisdiction of the Commission, became effective on January 1, 1940, and
as to any natural gas company which may hereafter become subject to the
jurisdiction of the Commission, they shall become effective as of the
date when such natural gas company becomes subject to the jurisdiction
of the Commission.
18 CFR 161.3 Uniform System of Accounts Prescribed for Natural Gas Companies Subject to the Provisions of the Natural Gas Act
18 CFR 161.3 Definitions
When used in this system of accounts:
1. Accounts means the accounts prescribed in this system of accounts.
2. Actually issued, as applied to securities issued or assumed by the
utility, means those which have been sold to bona fide purchasers for a
valuable consideration, those issued as dividends on stock, and those
which have been issued in accordance with contractual requirements
direct to trustees of sinking funds.
3. Actually outstanding, as applied to securities issued or assumed
by the utility, means those which have been actually issued and are
neither retired nor held by or for the utility; provided, however, that
securities held by trustees shall be considered as actually outstanding.
4. Amortization means the gradual extinguishment of an amount in an
account by distributing such amount over a fixed period, over the life
of the asset or liability to which it applies, or over the period during
which it is anticipated the benefit will be realized.
5. A. Associated (affiliated) companies means companies or persons
that directly or indirectly, through one or more intermediaries,
control, or are controlled by, or are under common control with the
accounting company.
B. Control (including the terms ''controlling,'' ''controlled by,''
and ''under common control with'') means the possession, directly or
indirectly, of the power to direct or cause the direction of the
management and policies of a company, whether such power is exercised
through one or more intermediary companies, or alone, or in conjunction
with, or pursuant to an agreement, and whether such power is established
through a majority or minority ownership or voting of securities, common
directors, officers, or stockholders, voting trusts, holding trusts,
associated companies, contract or any other direct or indirect means.
6. Book cost means the amount at which property is recorded in these
accounts without deduction of related provisions for accrued
depreciation, depletion, amortization, or for other purposes.
7. Commission, means the Federal Energy Regulatory Commission.
8. Continuing plant inventory record means company plant records for
retirement units and mass property that provide, as either a single
record, or in separate records readily obtainable by references made in
a single record, the following information:
A. For each retirement unit;
(1) The name or description of the unit, or both;
(2) The location of the unit;
(3) The date the unit was placed in service;
(4) The cost of the unit as set forth in Plant Instructions 2 and 3
of this part; and
(5) The plant control account to which the cost of the units is
charged; and
B. For each category of mass property;
(1) A general description of the property and quantity;
(2) The quantity placed in service by vintage year;
(3) The average cost as set forth in Plant Instructions 2 and 3 of
this part; and
(4) The plant control account to which the costs are charged.
9. Cost means the amount of money actually paid for property or
services. When the consideration given is other than cash in a purchase
and sale transaction, as distinguished from a transaction involving the
issuance of common stock in a merger or a pooling of interest, the value
of such consideration shall be determined on a cash basis.
10. Cost of removal means the cost of demolishing, dismantling,
tearing down or otherwise removing gas plant, including the cost of
transportation and handling incidental thereto.
11. Debt expense means all expenses in connection with the issuance
and initial sale of evidences of debt, such as fees for drafting
mortgages and trust deeds; fees and taxes for issuing or recording
evidences of debt; cost of engraving and printing bonds and
certificates of indebtedness; fees paid trustees; specific costs of
obtaining governmental authority; fees for legal services; fees and
commissions paid underwriters, brokers, and salesmen for marketing such
evidences of debt; fees and expenses of listing on exchanges; and
other like costs.
12. A. Depletion, as applied to natural gas producing land and land
rights, means the loss in service value incurred in connection with the
exhaustion of the natural resource in the course of service.
B. Depreciation, as applied to depreciable gas plant, means the loss
in service value not restored by current maintenance, incurred in
connection with the consumption or prospective retirement of gas plant
in the course of service from causes which are known to be in current
operation and against which the utility is not protected by insurance.
Among the causes to be given consideration are wear and tear, decay,
action of the elements, inadequacy, obsolescence, changes in the art,
changes in demand and requirements of public authorities, and, in the
case of natural gas companies, the exhaustion of natural resources.
13. Development costs, in the case of Major natural gas companies,
when used with respect to hydrocarbons, include all costs incurred in
the readying of hydrocarbon deposits for commercial production including
developmental well drilling costs.
14. Discount, as applied to the securities, issued or assumed by the
utility, means the excess of the par (stated value of no-par stocks) or
fact value of the securities plus interest or dividends accrued at the
date of the sale over the cash value of the consideration received from
their sale.
15. Exploration costs, in the case of Major natural gas companies,
include all costs incurred in proving the existence of hydrocarbon
deposits including geological, geophysical, lease acquisition (including
delay rentals), administrative and general, and exploratory well
drilling costs.
16. Full-cost accounting for exploration and development costs, in
the case of Major natural gas companies, means the capitalization of all
exploration and development costs incurred on or related to hydrocarbon
leases, on properties in the contiguous 48 States and the State of
Alaska, acquired after October 7, 1969.
17. Investment advances means advances, represented by notes or by
book accounts only, with respect to which it is mutually agreed or
intended between the creditor and debtor that they shall be settled by
the issuance of securities or shall not be subject to current
settlement.
18. Lease, capital means a lease of property used in utility or
non-utility operations, which meets one or more of the criteria stated
in General Instruction 19.
19. Lease, operating means a lease of property used in utility or
non-utility operations, which does not meet any of the criteria stated
in General Instruction 19.
20. Minor items of property means the associated parts or items of
which retirement units are composed.
21. Natural gas means either natural gas unmixed, or any mixture of
natural and artificial gas.
22. Natural gas company means a person engaged in the transportation
of natural gas in interstate commerce, or the sale in interstate
commerce of such gas for resale.
23. Net salvage value means the salvage value of property retired
less the cost of removal.
24. Nominally issued, as applied to securities issued or assumed by
the utility, means those which have been signed, certified, or otherwise
executed, and placed with the proper officer for sale and delivery, or
pledged, or otherwise placed in some special fund of the utility, but
which have not been sold, or issued direct to trustees of sinking funds
in accordance with contractual requirements.
25. Nominally outstanding, as applied to securities issued or assumed
by the utility, means those which, after being actually issued, have
been reacquired by or for the utility under circumstances which require
them to be considered as held alive and not retired, provided, however,
that securities held by trustees shall be considered as actually
outstanding.
26. Original cost, as applied to gas plant, means the cost of such
property to the person first devoting it to public service.
27. Person means an individual, a corporation, a partnership, an
association, a joint stock company, a business trust, or any organized
group of persons, whether incorporated or not, or any receiver or
trustee.
28. Premium, as applied to securities issued or assumed by the
utility, means the excess of the cash value of the consideration
received from their sale over the sum of their par (stated value of
no-par stocks) or face value and interest or dividends accrued at the
date of sale.
29. Production, transmission, and distribution plant. (Major natural
gas companies) For the purposes of this system of accounts:
A. Production system shall consist of plant and equipment used in the
production of gas. It shall include producing lands and leaseholds, gas
rights, other land rights, structures, drilling and clearing equipment,
gas wells, well head equipment, separation and other facilities used in
the production of natural gas. The production system ends where the gas
enters a gathering system, transmission system or distribution system,
as applicable, in accordance with the practices in the pricing area
where such system is located.
B. Transmission system means the land, structures, mains, valves,
meters, boosters, regulators, tanks, compressors, and their driving
units and appurtenances, and other equipment used primarily for
transmitting gas from a production plant, delivery point of purchased
gas, gathering system, storage area, or other wholesale source of gas,
to one or more distribution areas. The transmission system begins at
the outlet side of the valve at the connection to the last equipment in
a manufactured gas plant, the connection to gathering lines or delivery
point of purchased gas, and includes the equipment at such connection
that is used to bring the gas to transmission pressure, and ends at the
outlet side of the equipment which meters or regulates the entry of gas
into the distribution system or into a storage area. It does not
include storage land, structures or equipment. Pipeline companies,
including those companies which measure deliveries of gas to their own
distribution systems, shall include city gate and main line industrial
measuring and regulating stations in the transmission function.
C. Distribution system means the mains which are provided primarily
for distributing gas within a distribution area, together with land,
structures, valves, regulators, services and measuring devices,
including the mains for transportation of gas from production plants or
points of receipt located within such distribution area to other points
therein. The distribution system owned by companies having no
transmission facilities connected to such distribution system begins at
the inlet side of the distribution system equipment which meters or
regulates the entry of gas into the distribution system and ends with
and includes property on the customer's premises. For companies which
own both transmission and distribution facilities on a continuous line,
the distribution system begins at the outlet side of the equipment which
meters or regulates the entry of gas into the distribution system and
ends with and includes property on the customer's premises. The
distribution system does not include storage land, structures, or
equipment.
D. Distribution area means a metropolitan area or other urban area
comprising one or more adjacent or nearby cities, villages or
unincorporated areas, including developed areas contiguous to main
highways.
30. Property retired, as applied to gas plant, means property which
has been removed, sold, abandoned, destroyed, or which for any cause has
been withdrawn from service.
31. A. Replacing or replacement, when not otherwise indicated in the
context, means the construction or installation of gas plant in place of
property retired, together with the removal of the property retired.
B. Research, Development, and Demonstration (RD&D), in the case of
Major natural gas companies, means expenditures incurred by natural gas
companies either directly or through another person or organization
(such as research institute, industry association, foundation,
university, engineering company, or similar contractor) in pursuing
research, development, and demonstration activities including
experiment, design, installation, construction, or operation. This
definition includes expenditures for the implementation or development
of new and/or existing concepts until technically feasible and
commercially feasible operations are verified. Such research,
development, and demonstration costs should be reasonably related to the
existing or future utility business, broadly defined, of the public
utility or licensee or in the environment in which it operates or
expects to operate. The term includes, but is not limited to: All such
costs incidental to the design, development or implementation of an
experimental facility, a plant process, a product, a formula, an
invention, a system or similar items, and the improvement of already
existing items of a like nature; amounts expended in connection with
the proposed development and/or proposed delivery of substitute or
synthetic gas supplies (alternate fuel sources for example, an
experimental coal gasification plant or an experimental plant
synthetically producing gas from liquid hydrocarbons); and the costs of
obtaining its own patent, such as attorney's fees expended in making and
perfecting a patent application. The term includes preliminary
investigations and detailed planning of specific projects for securing
for customers non-conventional pipeline gas supplies that rely on
technology that has not been verified previously to be feasible. The
term does not include expenditures for efficiency surveys; studies of
management, management techniques and organization; consumer surveys,
advertising, promotions, or items of a like nature.
32. Retained earnings (formerly earned surplus) means the accumulated
net income of the utility less distribution to stockholders and
transfers to other capital accounts.
33. Retirement units means those items of gas plant which, when
retired, with or without replacement, are accounted for by crediting the
book cost thereof to the gas plant account in which included.
34. Salvage value means the amount received for property retired,
less any expenses incurred in connection with the sale or in preparing
the property for sale; or, if retained, the amount at which the
material recoverable is chargeable to Materials and Supplies, or other
appropriate account.
35. Service life means the time between the date gas plant is
includible in gas plant in service, or gas plant leased to others, and
the date of its retirement. If depreciation is accounted for on a
production basis rather than on a time basis, then service life should
be measured in terms of the appropriate unit of production.
36. Service value means the difference between original cost and net
salvage value of gas plant.
37. Unsuccessful exploration and development costs, in the case of
Major natural gas companies, means exploration and development costs
related to efforts which do not directly result in the discovery of
commercially recoverable hydrocarbon reserves.
38. Subsidiary company, in the case of Major natural gas companies,
means a company which is controlled by the utility through ownership of
voting stock. (See ''Definitions'' -- item 5B ''Control''). A
corporate joint venture in which a corporation is owned by a small group
of businesses as a separate and specific business or project for the
mutual benefit of the members of the group is a subsidiary company for
the purposes of this system of accounts.
39. Utility, as used herein and when not otherwise indicated in the
context, means any natural gas company to which this system of accounts
is applicable.
18 CFR 161.3 General Instructions
1. Classification of utilities. A. For the purpose of applying the
system of accounts prescribed by the Commission, natural gas companies
are divided into classes, as follows:
Major -- Each natural gas company as defined in the Natural Gas Act,
whose combined gas sold for resale and gas transported or stored for a
fee exceeds 50 million Mcf at 14.73 psi (60 F) in each of the three
previous calendar years.
Nonmajor -- Natural gas companies that are not classified as a
''major company'' (as defined above), and had total gas sales or volume
transactions exceeding 200,000 Mcf at 14.73 psi (60 F) in each of the
three previous calendar years.
B. This system applies to both Major and Nonmajor natural gas
companies. Provisions have been incorporated into this system for those
entities which prior to January 1, 1984, were applying the Commission's
Uniform System of Accounts Prescribed for Class C and Class D (part 104
of this chapter) now revoked. The notations ''(Nonmajor)'' and
''(Major)'' have been used to indicate those instructions and accounts
from the previous systems and classifications, which by definition, are
not interchangeable without causing a loss of detail for the Major
(previous Class A and Class B) or an increase in detail burden for the
Nonmajor (previous Class C and Class D).
C. The class to which any natural gas company belongs shall
originally be determined by its annual gas volume in each of the last
three consecutive years, or, in the case of a newly established entity,
the projected data shall be the basis. Subsequent changes in
classification shall be made when the volume for each of the three
immediately preceding years exceeds the upper limit, or is less than the
lower limit of the classification previously applicable to the natural
gas company.
D. Any utility may, at its option, adopt the system of accounts
prescribed by the Commission for any larger class of utilities.
2. Records. A. Each utility shall keep its books of account, and all
other books, records, and memoranda which support the entries in such
books of account so as to be able to furnish readily full information as
to any item included in any account. Each entry shall be supported by
such detailed information as will permit ready identification, analysis,
and verification of all facts relevant thereto.
B. The books and records referred to herein include not only
accounting records in a limited technical sense, but all other records,
such as minute books, stock books, reports, correspondence, memoranda,
etc., which may be useful in developing the history of or facts
regarding any transaction.
C. No utility shall destroy any such books or records unless the
destruction thereof is permitted by rules and regulations of the
Commission.
D. In addition to prescribed accounts, clearing accounts, temporary
or experimental accounts, and subdivisions of any accounts, may be kept,
provided the integrity of the prescribed accounts is not impaired.
E. All amounts included in the accounts prescribed herein for gas
plant and operating expenses shall be just and reasonable and any
payments or accruals by the utility in excess of just and reasonable
charges shall be included in account 426.5, Other Deductions.
F. The arrangement or sequence of the accounts prescribed herein
shall not be controlling as to the arrangement or sequence in report
forms which may be prescribed by the Commission.
3. Numbering system. A. The account numbering plan used herein
consists of a system of three-digit whole numbers as follows:
100-199 Assets and Other Debits.
200-299 Liabilities and Other Credits.
300-399 Plant Accounts.
400-432, 434-435 Income Accounts.
433, 436-439 Retained Earnings Accounts.
480-499 Revenue Accounts.
700-899 Production, Transmission and Distribution Expenses.
900-949 Customer Accounts, Customer Service and Informational, Sales
and General and Administrative Expenses.
B. In certain instances, numbers have been skipped in order to allow
for possible later expansion or to permit better coordination with the
numbering system for other utility departments.
C. The numbers prefixed to account titles are to be considered as
part of the titles. Each utility, however, may adopt for its own
purposes a different system of account numbers (See also general
instruction 2D) provided that the numbers herein prescribed shall appear
in the descriptive headings of the ledger accounts and in the various
sources of original entry; however, if a utility uses a different group
of account numbers and it is not practicable to show the prescribed
account numbers in the various sources of original entry, such reference
to the prescribed account numbers may be omitted from the various
sources of original entry. Moreover, each utility using different
account numbers for its own purposes shall keep readily available a list
of such account numbers which it uses and a reconciliation of such
account numbers with the account numbers provided herein. It is
intended that the utility's records shall be so kept as to permit ready
analysis by prescribed accounts (by direct reference to sources of
original entry to the extent practicable) and to permit preparation of
financial and operating statements directly from such records at the end
of each accounting period according to the prescribed accounts.
4. Accounting period. Each utility shall keep its books on a monthly
basis so that for each month all transactions applicable thereto, as
nearly as may be ascertained, shall be entered in the books of the
utility. Amounts applicable or assignable to specific utility
departments shall be so segregated monthly. Each utility shall close
its books at the end of each calendar year unless otherwise authorized
by the Commission.
5. Submittal of questions. To maintain uniformity of accounting,
utilities shall submit questions of doubtful interpretation to the
Commission for consideration and decision.
6. Item lists. Lists of ''items'' appearing in the texts of the
accounts or elsewhere herein are for the purpose of more clearly
indicating the application of the prescribed accounting. The lists are
intended to be representative, but not exhaustive. The appearance of an
item in a list warrants the inclusion of the item in the account
mentioned only when the text of the account also indicates inclusion
inasmuch as the same item frequently appears in more than one list. The
proper entry in each instance must be determined by the texts of the
accounts.
7. Extraordinary items. It is the intent that net income shall
reflect all items of profit and loss during the period with the
exception of prior period adjustments as described in paragraph 7.1 and
long-term debt as described in paragraph 17 below. Those items related
to the effects of events and transactions which have occurred during the
current period and which are of unusual nature and infrequent occurrence
shall be considered extraordinary items. Accordingly, they will be
events and transactions of significant effect which are abnormal and
significantly different from the ordinary and typical activities of the
company, and which would not reasonably be expected to recur in the
foreseeable future. (In determining significance, items should be
considered individually and not in the aggregate. However, the effects
of a series of related transactions arising from a single specific and
identifiable event or plan of action should be considered in the
aggregate.) To be considered as extraordinary under the above
guidelines, an item should be more than approximately 5 percent of
income, computed before extraordinary items. Commission approval must
be obtained to treat an item of less than 5 percent, as extraordinary.
(See accounts 434 and 435.)
7.1 Prior period items. A. Items of profit and loss related to the
following shall be accounted for as prior period adjustments and
excluded from the determination of net income for the current year.
(1) Correction of an error in the financial statements of a prior
year.
(2) Adjustments that result from realization of income tax benefits
of pre-acquisition operating loss carryforwards of purchased
subsidiaries.
B. All other items of profit and loss recognized during the year
shall be included in the determination of net income for that year.
8. Unaudited items (Major natural gas companies). Whenever a
financial statement is required by the Commission, if it is known that a
transaction has occurred which affects the accounts but the amount
involved in the transaction and its effect upon the accounts cannot be
determined with absolute accuracy, the amount shall be estimated and
such estimated amount included in the proper accounts. The utility is
not required to anticipate minor items which would not appreciably
affect the accounts.
9. Distribution of pay and expenses of employees. The charges to gas
plant, operating expense and other accounts for services and expenses of
employees engaged in activities chargeable to various accounts, such as
construction, maintenance, and operations, shall be based upon the
actual time engaged in the respective classes of work, or in case that
method is impracticable, upon the basis of a study of the time actually
engaged during a representative period.
10. Payroll distribution. Underlying accounting data shall be
maintained so that the distribution of the cost of labor charged direct
to the various accounts will be readily available. Such underlying data
shall permit a reasonably accurate distribution to be made of the cost
of labor charged initially to clearing accounts so that the total labor
cost may be classified among construction, cost of removal, gas
operating functions (manufactured gas production, natural gas production
and gathering, products extraction, underground storage, transmission,
distribution, etc.), and nonutility operations.
11. Accounting to be on accrual basis. A. The utility is required to
keep its accounts on the accrual basis. This requires the inclusion in
its accounts of all known transactions of appreciable amount which
affect the accounts. If bills covering such transactions have not been
received or rendered, the amounts shall be estimated and appropriate
adjustments made when the bills are received.
B. When payments are made in advance for items such as insurance,
rents, taxes or interest, the amount applicable to future periods shall
be charged to account 165, Prepayments, and spread over the periods to
which applicable by credits to account 165, and charges to the accounts
appropriate for the expenditure.
12. Records for each plant (Major natural gas companies). A.
Separate records shall be maintained by gas plant accounts of the book
cost of each plant owned, including additions by the utility to plant
leased from others, and of the cost of operating and maintaining each
plant owned or operated. The term ''plant,'' as here used, means each
manufactured gas production plant, the wells and gathering lines of each
distinct production area, each system of interconnected transmission
mains, each system of wells and lines of an underground storage project,
each large purification or dehydration plant, each compressor station,
other than a distribution compressor station, and each products
extraction plant.
B. A natural gas company may, with the approval of the Commission,
group certain of its systems of gathering lines and wells, small
compressor stations, systems of underground storage lines and wells, and
systems of interconnected transmission mains for the purpose of
complying with the portion of this instruction requiring a segregation
of the cost of operating and maintaining each plant.
Note A: Where manufactured gas is produced by two or more processes
at one location, each process shall be accounted for separately.
Note B: Each natural gas company shall maintain operating or
accounting records for each well showing (a) acreage on which drilled,
(b) dates of drilling period, (c) cost of drilling, (d) depth of well,
(e) particulars and depth of each stratum drilled through, (f)
geological formation from which gas is obtained, (g) initial rock
pressure and open flow capacity, (h) sizes of casing used and the
lengths of each size, (i) total cost of well as recorded in gas plant
accounts, (j) date well abandoned, for wells once productive, (k) date
transferred to underground storage plant, for wells converted to storage
use, and (l) date drilling discontinued, for wells determined to be
nonproductive. The foregoing data, as appropriate, shall also be
maintained for each subsequent change in the depth of each well.
13. Accounting for other departments. If the utility also operates
other utility departments, such as electric, water, etc., it shall keep
such accounts for the other departments as may be prescribed by proper
authority and in the absence of prescribed accounts, it shall keep such
accounts as are proper or necessary to reflect the results of operating
each such department. It is not intended that proprietary and similar
accounts which apply to the utility as a whole shall be
departmentalized.
14. Transactions with associated companies (Major natural gas
companies). Each utility shall keep its accounts and records so as to
be able to furnish accurately and expeditiously statements of all
transactions with associated companies. The statements may be required
to show the general nature of the transactions, the amounts involved
therein and the amounts included in each account prescribed herein with
respect to such transactions. Transactions with associated companies
shall be recorded in the appropriate accounts for transactions of the
same nature. Nothing herein contained, however, shall be construed as
restraining the utility from subdividing accounts for the purpose of
recording separately transactions with associated companies.
15. Contingent assets and liabilities (Major natural gas companies).
Contingent assets represent a possible source of value to the utility
contingent upon the fulfillment of conditions regarded as uncertain.
Contingent liabilities include items which may under certain conditions
become obligations of the utility but which are neither direct nor
assumed liabilities at the date of the balance sheet. The utility shall
be prepared to give a complete statement of significant contingent
assets and liabilities (including cumulative dividends on preference
stock) in its annual report and at such other times as may be requested
by the Commission.
16. Accounting for costs of gas production by pipelines and pipeline
affiliates (Major natural gas companies). A. On October 7, 1969, the
Commission issued Opinion No. 568 (42 FPC 738; 34 FR 17803, Nov. 5,
1969) amending part 2, General Policy and Interpretations, subchapter A,
General Rules, chapter I of title 18 of the CFR by adding a new 2.66
entitled ''Pricing of New Gas Produced by Pipelines and Pipeline
Affiliates.'' Section 2.66 was further amended by Opinion No. 568A,
issued December 5, 1969 (42 FPC 1089; 35 FR 1104, Jan. 28, 1970).
Paragraph (b) of 18 CFR 2.66 provides in part that pipelines acquiring
production leases subsequent to the date of this opinion either on their
own part or through affiliates should, where they have their own
production, maintain separate subdivisions of their plant and expense
accounts related to production properties and production activities, so
as to show separately costs related to production from present leases
and costs related to production from leases acquired on or after October
8, 1969. When making a rate filing, pipelines should provide additional
detail in subdivisions within the production function, i.e., as between
gas from present leases and gas from leases acquired on or after October
8, 1969, with respect to their own production and also with respect to
any production of their affiliates.
B. When the transfer price of gas is not determined in a
cost-of-service rate proceeding, pricing of gas produced by a pipeline
or pipeline affiliate shall be in accordance with 2.66 or 154.42 of
this chapter.
C. Pursuant to the statement of policy in 18 CFR 2.66, as amended,
subdivisions shall be maintained in the following accounts or any other
accounts which may contain applicable lease costs so that production
costs relating to leases acquired up to and including October 7, 1969,
and costs relating to leases acquired as of October 8, 1969, and
thereafter, and gathering costs can be readily identified. Where no
production plant is owned or operated, no subdivision of these accounts
need be made. However, these provisions do not apply if the leases were
acquired, either directly or through intermediaries, from other
pipelines or their affiliates which had held them prior to October 8,
1969. The accounts to which the foregoing instructions are applicable
include, among others:
17. Long-term debt: Premium, discount and expense, and gain or loss
on reacquisition -- A. Premium, discount and expense. A separate
premium, discount and expense account shall be maintained for each class
and series of long-term debt (including receivers' certificates) issued
or assumed by the utility. The premium will be recorded in account 225,
Unamortized Premium on Long-Term Debt, the discount will be recorded in
account 226, Unamortized Discount on Long-Term Debt -- Debit, and the
expense of issuance shall be recorded in account 181, Unamortized Debt
Expense.
The premium, discount and expense shall be amortized over the life of
the respective issues under a plan which will distribute the amounts
equitably over the life of the securities. The amortization shall be on
a monthly basis, and amounts thereof relating to discount and expense
shall be charged to account 428, Amortization of Debt Discount and
Expense. The amounts relating to premium shall be credited to account
429, Amortization of Premium on Debt -- Credit.
B. Reacquisition, without refunding. When long-term debt is
reacquired or redeemed without being converted into another form of
long-term debt and when the transaction is not in connection with a
refunding operation (primarily redemptions for sinking fund purposes),
the difference between the amount paid upon reacquisition and the face
value; plus any un- amortized premium less any related unamortized debt
expense and reacquisition costs; or less any unamortized discount,
related debt expense and reacquisition costs applicable to the debt
redeemed, retired and canceled, shall be included in account 189,
Unamortized Loss on Reacquired Debt, or account 257, Unamortized Gain on
Reacquired Debt, as appropriate. The utility shall amortize the
recorded amounts equally on a monthly basis over the remaining life of
the respective security issues (old original debt). The amounts so
amortized shall be charged to account 428.1, Amortization of Loss on
Reacquired Debt, or credited to account 429.1, Amortization of Gain on
Reacquired Debt -- Credit, as appropriate.
C. Reacquisition, with refunding. When the redemption of one issue
or series of bonds or other long-term obligations is financed by another
issue or series before the maturity date of the first issue, the
difference between the amount paid upon refunding and the face value;
plus any unamortized premium less related debt expense or less any
unamortized discount and related debt expense, applicable to the debt
refunded, shall be included in account 189, Unamortized Loss on
Reacquired Debt, or account 257, Unamortized Gain on Reacquired Debt, as
appropriate. The utility may elect to account for such amounts as
follows:
(1) Write them off immediately when the amounts are insignificant.
(2) Amortize them by equal monthly amounts over the remainder of the
original life of the issue retired, or
(3) Amortize them by equal monthly amounts over the life of the new
issue.
Once an election is made, it shall be applied on a consistent basis.
The amounts in (1), (2), or (3) above shall be charged to account 428.1,
Amortization of Loss on Reacquired Debt, or credited to account 429.1,
Amortization of Gain on Reacquired Debt -- Credit, as appropriate.
D. Under methods (2) and (3) above, the increase or reduction in
current income taxes resulting from the reacquisition should be
apportioned over the remainder of the original life of the issue retired
or over the life of the new issue, as appropriate, as directed more
specifically in paragraphs E and F below.
E. When the utility recognizes the loss in the year of reacquisition
as a tax deduction, account 410.1, Provision for Deferred Income Taxes,
Utility Operating Income, shall be debited and account 283, Accumulated
Deferred Income Taxes -- Other, shall be credited with the amount of the
related tax effect, such amount to be allocated to the periods affected
in accordance with the provisions of account 283.
F. When the utility chooses to recognize the gain in the year of
reacquisition as a taxable gain, account 411.1, Provision for Deferred
Income Taxes -- Credit, Utility Operating Income, shall be credited and
account 190, Accumulated Deferred Income Taxes, shall be debited with
the amount of the related tax effect, such amount to be allocated to the
periods affected in accordance with the provisions of account 190.
G. When the utility chooses to use the optional privilege of
deferring the tax on the gain attributable to the reacquisition of debt
by reducing the depreciable basis of utility property for tax purposes,
pursuant to Section 108 of the Internal Revenue Code, the related tax
effects shall be deferred as the income is recognized for accounting
purposes, and the deferred amounts shall be amortized over the life of
the associated property on a vintage year basis. Account 410.1,
Provision for Deferred Income Taxes, Utility Operating Income, shall be
debited, and account 282, Accumulated Deferred Income Taxes -- Other
Property, shall be credited with an amount equal to the estimated income
tax effect applicable to the portion of the income, attributable to
reacquired debt, recognized for accounting purposes during the period.
Account 282 shall be debited and account 411.1, Provision for Deferred
Income Taxes -- Credit, Utility Operating Income, shall be credited with
an amount equal to the estimated income tax effects, during the life of
the property, attributable to the reduction in the depreciable basis for
tax purposes.
H. The tax effects relating to gain or loss shall be allocated as
above to utility operations except in cases where a portion of the debt
reacquired is directly applicable to nonutility operations. In that
event, the related portion of the tax effects shall be allocated to
nonutility operations. Where it can be established that reacquired debt
is generally applicable to both utility and nonutility operations, the
tax effects shall be allocated between utility and nonutility operations
based on the ratio of net investment in utility plant to net investment
in non- utility plant.
I. Premium, discount, or expense on debt shall not be included as an
element in the cost of construction or acquisition of property (tangible
or intangible), except under the provisions of account 432, Allowance
for Borrowed Funds Used During Construction -- Credit.
J. Alternate method. Where a regulatory authority or a group of
regulatory authorities having prime rate jur- isdiction over the utility
specifically disallows the rate principle of amortizing gains or losses
on reacquisition of long-term debt without refunding, and does not apply
the gain or loss to reduce interest charges in computing the allowed
rate of return for rate purposes, then the following alternate method
may be used to account for gains or losses relating to reacquisition of
long-term debt, with or without refunding.
(1) The difference between the amount paid upon reacquisition of any
long-term debt and the face value, adjusted for unamortized discount,
expenses or premium, as the case may be, applicable to the debt redeemed
shall be recognized currently in income and recorded in account 421,
Miscellaneous Nonoperating Income, or account 426.5, Other Deductions.
(2) When this alternate method of accounting is used, the utility
shall include a footnote to each financial statement, prepared for
public use, explaining why this method is being used along with the
treatment given for ratemaking purposes.
18. Comprehensive interperiod income tax allocation. A. Where there
are timing differences between the periods in which transactions affect
taxable income and the periods in which they enter into the
determination of pretax accounting income, the income tax effects of
such transactions are to be recognized in the periods in which the
differences between book accounting income and taxable income arise and
in the periods in which the differences reverse using the deferred tax
method. In general, comprehensive interperiod tax allocation should be
followed whenever transactions enter into the determination of pretax
accounting income for the period even though some transactions may
affect the determination of taxes payable in a different period, as
further qualified below.
B. Utilities are not required to utilize comprehensive interperiod
income tax allocation until the deferred income taxes are included as an
expense in the rate level by the regulatory authority having rate
jurisdiction over the utility. Where comprehensive interperiod tax
allocation accounting is not practiced the utility shall include as a
note to each financial statement, prepared for public use, a footnote
explanation setting forth the utility's accounting policies with respect
to interperiod tax allocation and describing the treatment for
ratemaking purposes of the tax timing differences by regulatory
authorities having rate jurisdiction.
C. Should the utility be subject to more than one agency having rate
jurisdiction, its accounts shall appropriately reflect the ratemaking
treatment (deferral or flow through) of each jurisdiction.
D. Once comprehensive interperiod tax allocation has been initiated
either in whole or in part it shall be practiced on a consistent basis
and shall not be changed or discontinued without prior Commission
approval.
E. Tax effects deferred currently will be recorded as deferred debits
or deferred credits in accounts 190, Accumulated Deferred Income Taxes,
281, Accumulated Deferred Income Taxes -- Accelerated Amortization
Property, 282, Accumulated Deferred Income Taxes -- Other Property, and
283, Accumulated Deferred Income Taxes -- Other, as appropriate. The
resulting amounts recorded in these accounts shall be disposed of as
prescribed in this system of accounts or as otherwise authorized by the
Commission.
19. Criteria for classifying leases. A. If at its inception a lease
meets one or more of the following criteria, the lease shall be
classified as a capital lease. Otherwise, it shall be classified as an
operating lease.
(1) The lease transfers ownership of the property to the leasee by
the end of the lease term.
(2) The lease contains a bargain purchase option.
(3) The lease term is equal to 75 percent or more of the estimated
economic life of the leased property. However, if the beginning of the
lease term falls within the last 25 percent of the total estimated
economic life of the lease property, including earlier years of use,
this criterion shall not be used for purposes of classifying the lease.
(4) the present value at the beginning of the lease term of the
minimum lease payments, excluding that portion of the payments
representing executory costs such as insurance, maintenance, and taxes
to be paid by the lessor, including any profit thereon, equals or
exceeds 90 percent of the excess of the fair value of the leased
property to the lessor at the inception of the lease over any related
investment tax credit retained by the lessor and expected to be realized
by the lessor. However, if the beginning of the lease term falls within
the last 25 percent of the total estimated economic life of the lease
property, including earlier years of use, this criterion shall not be
used for purposes of classifying the lease. The lessee utility shall
compute the present value of the minimum lease payments using his
incremental borrowing raate, unless (a) it is practicable for the
utility to learn the implicit rate computed by the lessor, and (b) the
implicit rate computed by the lessor is less than the lessee's
incremental borrowing rate. If both of those conditions are met, the
lessee shall use the implicit rate.
B. If at any time the lessee and lessor agree to change the
provisions of the lease, other than by renewing the lease or extending
its term, in a manner that would have resulted in a different
classification of the lease under the criteria in paragraph A had the
changed terms been in effect at the inception of the lease, the revised
agreement shall be considered as a new agreement over its term, and the
criteria in paragraph A shall be applied for purposes of classifying the
lease. Likewise, any action that extends the lease beyond the
expiration of the existing lease term, such as the exercise of a lease
renewal option other than those already included in the lease term,
shall be considered as a new agreement, and shall be classified
according to the above provisions, Changes in estimates (for example,
changes in estimates of the economic life or of the residual value of
the leased property) or changes in circumstances (for example, default
by the lessee), shall not give rise to a new classification of a lease
for accounting purposes.
20. Accounting for leases. A. All leases shall be classified as
either capital or operating leases. The accounting for capitalized
leases is effective January 1, 1984, except for the retroactive
classification of certian leases which, in accordance with FASB No. 71,
will not be required to be capitalized until after a three year
transition period. For the purpose of reporting to the FERC, the
transition period shall be deemed to end December 31, 1986.
B. The utility shall record a capital lease as an asset in account
101.1, Property under Capital Leases (or account 121, Non-utility
Property, if appropriate), and an obligation in account 227, Obligations
under Capital Leases -- Noncurrent, or account 243, Obligations under
Capital Leases -- Current, at an amount equal to the present value at
the beginning of the lease term of minimum lease payments during the
lease term, excluding that portion of the payments representing
executory costs such as insurance, maintenance, and taxes to be paid by
the lessor, together with any profit thereon. However, if the amount so
determined exceeds the fair value of the leased property at the
inception of the lease, the amount recorded as the asset and obligation
shall be the fair value.
C. Rental payments on all leases shall be charged to rent expense,
fuel expense, construction work in progress, or other appropriate
accounts as they become payable.
D. For a capital lease, for each period during the lease term, the
amounts recorded for the asset and obligation shall be reduced by an
amount equal to the portion of each lease payment which would have been
allocated to the reduction of the obligation, if the payment had been
treated as a payment on an installment obligation (liability) and
allocated between interest expense and a reduction of the obligation so
as to produce a constant periodic rate of interest on the remaining
balance.
21. Gas well records (Nonmajor natural gas companies). Each utility
with natural gas operations shall maintain operating or accounting
records for each well showing: (a) Acreage on which drilled, (b) dates
of drilling period, (c) cost of drilling, (d) depth of well, (e)
particulars and depth of each stratum drilled through, (f) geological
formation from which gas is obtained, (g) initial rock pressure and open
flow capacity, (h) sizes of casing used and lengths of each size, (i)
total cost of well as recorded in gas plant accounts, (j) date well
abandoned, for wells once productive, (k) date transferred to
underground storage plant, for wells converted to storage use, and (l)
date drilling discontinued, for wells determined to be nonproductive.
The foregoing data, as appropriate, shall also be maintained for each
subsequent change in the depth of each well.
18 CFR 161.3 Gas Plant Instructions
1. Classification of utilities (Major natural gas companies). A.
The gas plant accounts provided herein are generally the same as those
contained in the prior system of accounts except for some changes in
classification in the general equipment accounts. Except for these
changes, the balances in the various plant accounts, as determined under
the prior system of accounts, should be carried forward. Any remaining
balance of plant which has not yet been classified pursuant to the
requirements of the prior system, shall be classified in accordance with
the following instructions.
B. The cost to the utility of its unclassified plant shall be
ascertained by analysis of the utility's records. Adjustments shall not
be made to record in utility plant accounts amounts previously charged
to operating expenses or to income deductions in accordance with the
uniform system of accounts in effect at the time or in accordance with
the discretion of management as exercised under a uniform system of
accounts, or under accounting practices previously followed.
C. The detailed gas plant accounts (301 to 399, inclusive) shall be
stated on the basis of cost to the utility of plant constructed by it
and the original cost, estimated if not known, of plant acquired as an
operating unit or system. The difference between the original cost as
above, and the cost to the utility of gas plant after giving effect to
any accumulated provision for depreciation, depletion, or amortization
shall be recorded in account 114, Gas Plant Acquisition Adjustments.
The original cost of gas plant shall be determined by analysis of the
utility's records or those of the predecessor or vendor companies with
respect to gas plant previously acquired as operating units or systems
and the differences between the original cost so determined, less
accumulated provisions for depreciation, depletion and amortization, and
the cost to the utility, with necessary adjustments for retirements from
the date of acquisition, shall be entered in account 114, Gas Plant
Acquisition Adjustments. Any difference between the cost of gas plant
and its book cost, when not properly includable in other accounts, shall
be recorded in account 116, Other Gas Plant Adjustments.
D. Plant acquired by lease which qualifies as capital lease property
under General Instruction 19. Criteria for Classifying Leases, shall be
recorded in Account 101.1, Property under Capital Leases.
2. Gas plant to be recorded at cost. A. All amounts included in the
accounts for gas plant acquired as an operating unit or system, except
as otherwise provided in the texts of the intangible plant accounts,
shall be stated at the cost incurred by the person who first devoted the
property to utility service. All other gas plant shall be included in
the accounts at the cost incurred by the utility, except for property
acquired by lease which qualifies as capital lease property under
General Instruction 19. Criteria for Classifying Leases, and is
recorded in Account 101.1, Property under Capital Leases. Where the
term ''cost'' is used in the detailed plant accounts, it shall have the
meaning stated in this paragraph.
B. When the consideration given for property is other than cash, the
value of such consideration shall be determined on a cash basis. (See,
however, definition 8.) In the entry recording such transaction, the
actual consideration shall be described with sufficient particularity to
identify it. The utility shall be prepared to furnish the Commission
the particulars of its determination of the cash value of the
consideration if other than cash.
C. When property is purchased under a plan involving deferred
payments, no charge shall be made to the gas plant accounts for
interest, insurance, or other expenditures occasioned solely by such
form of payment.
D. The gas plant accounts shall not include the cost or other value
of gas plant contributed to the company. Contributions in the form of
money or its equivalent toward the construction of gas plant shall be
credited to the accounts charged with the cost of such construction.
Plant constructed from contributions of cash or its equivalent shall be
shown as a reduction to gross plant constructed when assembling cost
data in work orders for posting to plant ledger of accounts. The
accumulated gross costs of plant accumulated in the work order shall be
recorded as a debit in the plant ledger of accounts along with the
related amount of contributions concurrently being recorded as a credit.
3. Components of construction cost. For Major natural gas companies,
the cost of construction properly includable in the gas plant accounts
shall include, where applicable, the direct and overhead costs as listed
and defined hereunder:
(1) ''Contract work'' includes amounts paid for work performed under
contract by other companies, firms, or individuals, costs incident to
the award of such contracts, and the inspection of such work.
(2) ''Labor'' includes the pay and expenses of employees of the
utility engaged on construction work, and related workmen's compensation
insurance, payroll taxes and similar items of expense. It does not
include the pay and expenses of employees which are distributed to
construction through clearing accounts nor the pay and expenses included
in other items hereunder.
(3) ''Materials and supplies'' includes the purchase price at the
point of free delivery plus customs duties, excise taxes, the cost of
inspection, loading and transportation, the related stores expenses, and
the cost of fabricated materials from the utility's shop. In
determining the cost of materials and supplies used for construction,
proper allowance shall be made for unused materials and supplies, for
materials recovered from temporary structures used in performing the
work involved, and for discounts allowed and realized in the purchase of
materials and supplies.
Note: The cost of individual items of equipment of small value (for
example, $500 or less) or of short life, including small portable tools
and implements, shall not be charged to utility plant accounts unless
the correctness of the accounting therefor is verified by current
inventories. The cost shall be charged to the appropriate operating
expense or clearing accounts, according to the use of such items, or, if
such items are consumed directly in construction work, the cost shall be
included as part of the cost of the construction.
(4) ''Transportation'' includes the cost of transporting employees,
materials and supplies, tools, purchased equipment, and other work
equipment (when not under own power) to and from points of construction.
It includes amounts paid to others as well as the cost of operating the
utility's own transportation equipment. (See item 5 following.)
(5) ''Special machine service'' includes the cost of labor
(optional), materials and supplies, depreciation, and other expenses
incurred in the maintenance, operation and use of special machines, such
as steam shovels, pile drivers, derricks, ditchers, scrapers, material
unloaders, and other labor saving machines; also expenditures for
rental maintenance and operation of machines of others. It does not
include the cost of small tools and other individual items of small
value or short life which are included in the cost of materials and
supplies. (See item 3, above.) When a particular construction job
requires the use for an extended period of time of special machines,
transportation or other equipment, the net book cost thereof, less the
appraised or salvage value at time of release from the job, shall be
included in the cost of construction.
(6) ''Shop service'' includes the proportion of the expense of the
utility's shop department assignable to construction work except that
the cost of fabricated materials from the utility's shop shall be
included in ''materials and supplies.''
(7) ''Protection'' includes the cost of protecting the utility's
property from fire or other casualties and the cost of preventing
damages to others, or to the property of others, including payments for
discovery or extinguishment of fires, cost of apprehending and
prosecuting incendiaries, witness fees in relation thereto, amounts paid
to municipalities and others for fire protection, and other analogous
items of expenditures in connection with construction work.
(8) ''Injuries and damages'' includes expenditures or losses in
connection with the construction work on account of injuries to persons
and damages to the property of others; also the cost of investigation
of and defense against actions for such injuries and damages. Insurance
recovered or recoverable on account of compensation paid for injuries to
persons incident to construction shall be credited to the account or
accounts to which such compensation is charged. Insurance recovered or
recoverable on account of property damages incident to construction
shall be credited to the account or accounts charged with the cost of
the damages.
(9) ''Privileges and permits'' includes payments for and expenses
incurred in securing temporary privileges, permits or rights in
connection with construction work, such as for the use of private or
public property, streets, or highways, but it does not include rents, or
amounts chargeable as franchises and consents for which see account 302,
Franchises and Consents.
(10) ''Rents'' includes amounts paid for the use of construction
quarters and office space occupied by construction forces and amounts
properly includible in construction costs for such facilities jointly
used.
(11) ''Engineering and supervision'' includes the portion of the pay
and expenses of engineers, surveyors, draftsmen, inspectors,
superintendents and their assistants applicable to construction work.
(12) ''General administration capitalized'' includes the portion of
the pay and expenses of the general officers and administrative and
general expenses applicable to construction work.
(13) ''Engineering services'' includes amounts paid to other
companies, firms, or individuals engaged by the utility to plan, design,
prepare estimates, supervise, inspect, or give general advice and
assistance in connection with construction work.
(14) ''Insurance'' includes premiums paid or amounts provided or
reserved as self-insurance for the protection against loss and damages
in connection with construction, by fire or other casualty, injury to or
death of persons other than employees, damages to property of others,
defalcation of employees and agents, and the nonperformance of
contractual obligations of others. It does not include workmen's
compensation or similar insurance on employees included as ''labor'' in
item 2, above.
(15) ''Law expenditures'' includes the general law expenditures
incurred in connection with construction and the court and legal costs
directly related thereto, other than law expenses included in
protection, item 7, and in injuries and damages, item 8.
(16) ''Taxes'' includes taxes on physical property (including land)
during the period of construction and other taxes properly includible in
construction costs before the facilities become available for service.
(17) ''Allowance for funds used during construction'' (Major and
nonmajor natural gas companies) includes the net cost for the period of
construction of borrowed funds used for construction purposes and a
reasonable rate on other funds when so used, not to exceed without prior
approval of the Commission allowances computed in accordance with the
formula prescribed in paragraph (a) below, except when such other funds
are used for exploration and development or leases acquired after
October 7, 1969, no allowance on such other funds shall be included in
these accounts. No allowance for funds used during construction charges
shall be included in these accounts upon expenditures for construction
projects which have been abandoned.
(a) The formula and elements for the computation of the allowance for
funds used during construction shall be:
Insert Illus. 100A
Ai=Gross allowance for borrowed funds used during construction rate.
Ae=Allowance for other funds used during construction rate.
S=Average short-term debt.
s=Short-term debt interest rate.
D=Long-term debt.
d=Long-term debt interest rate.
P=Preferred stock.
p=Preferred stock cost rate.
C=Common equity.
c=Common equity cost rate.
W=Average balance in construction work in progress.
(b) The rates shall be determined annually. The balances for
long-term debt, preferred stock and common equity shall be the actual
book balances as of the end of the prior year. The cost rates for
long-term debt and preferred stock shall be the weighted average cost
determined in the manner indicated in 154.63 of the Commission's
Regulations Under the Natural Gas Act. The cost rate for common equity
shall be the rate granted common equity in the last rate proceeding
before the ratemaking body having primary rate jurisdiction. If such
cost rate is not available, the average rate actually earned during the
preceding three years shall be used. The short-term debt balances and
related cost and the average balance for construction work in progress
shall be estimated for the current year with appropriate adjustments as
actual data becomes available.
Note: When a part only of a plant or project is placed in operation
or is completed and ready for service but the construction work as a
whole is incomplete, that part of the cost of the property placed in
operation, or ready for service, shall be treated as ''Gas Utility
Plant'' and allowance for funds used during construction thereon as a
charge to construction shall cease. Allowance for funds used during
construction on that part of the cost of the plant which is incomplete
may be continued as a charge to construction until such time as it is
placed in operation or is ready for service, except as limited in item
17, above.
(18) ''Earnings and expenses during construction'' includes (a) all
revenues derived during the construction period from property which is
included in the cost of a project under construction and (b) all
expenses which are attributable to the revenues received.
(19) ''Training costs'' (Major and nonmajor natural gas companies).
When it is necessary that employees be trained to operate or maintain
plant facilities that are being constructed and such facilities are not
conventional in nature or are new to the company's operations, these
costs may be capitalized as a component of construction cost. Once
plant is placed in service, the capitalization of training costs shall
cease, and subsequent training costs shall be expensed. (See Operating
Expense Instruction 4.)
(20) ''Line pack gas.'' Line pack includes the first cost of that
quantity of gas introduced into the utility's system necessary to bring
the system up to its designed operating capacity or increases therein
and which must be maintained in the system in order to sustain such
design operating capacity.
(21) LNG ''heel'' is the first cost of that minimum quantity of
liquefied natural gas necessary to be retained in holding tanks and
other facilities for purposes of temperature and/or pressure
maintenance.
(22) ''Studies'' includes the costs of studies such as operational,
safety or environmental studies relative to plant under construction.
Studies mandated by regulatory bodies relative to facilities in service,
shall be charged to Account 183.2, Other Preliminary Survey and
Investigation Charges.
B. For Nonmajor natural gas companies, the cost of construction of
property chargeable to the gas plant accounts shall include, where
applicable, fees for construction certificate applications paid after
grant of certificate, the cost of labor, materials and supplies,
transportation, work done by others for the company, injuries and
damages incurred in construction, privileges and permits, special
machine service, allowance for funds used during construction, not be
exceed without prior approval of the Commission amounts computed in
accordance with the formula prescribed in paragraph (a) of paragraph
(17) of this instruction; training costs and such portion of general
engineering, administrative salaries and expenses, insurance, taxes, and
other analogous items as may be properly includible in construction
costs. (See Operating Expense Instruction 4). When the company employs
its own funds in exploration and development on leases acquired after
October 7, 1969, no allowance for funds used during construction on such
funds shall be included in these accounts. The rates and balances of
short and long-term debt, preferred stock, common equity and
construction work in progress shall be determined as prescribed in
paragraph (b) of paragraph (17) of this instruction.
4. Overhead construction costs. A. All overhead construction costs,
such as engineering, supervision, general office salaries and expenses,
construction engineering and supervision by others than the accounting
utility, law expenses, insurance, injuries and damages, relief and
pensions, taxes and interest, shall be charged to particular jobs or
units on the basis of the amounts of such overheads reasonably
applicable thereto, to the end that each job or unit shall bear its
equitable proportion of such costs and that the entire cost of the unit,
both direct and overhead, shall be deducted from the plant accounts at
the time the property is retired.
B. As far as practicable, the determination of pay roll charges
includible in construction overheads shall be based on time card
distributions thereof. Where this procedure is impractical, special
studies shall be made periodically of the time of supervisory employees
devoted to construction activities to the end that only such overhead
costs as have a definite relation to construction shall be capitalized.
The addition to direct construction costs of arbitrary percentages or
amounts to cover assumed overhead costs is not permitted.
C. For Major natural gas companies, the record supporting the entries
for overhead construction costs shall be so kept as to show the total
amount of each overhead for each year, the nature and amount of each
overhead expenditure charged to each construction work order and to each
utility plant account, and the bases of distribution of such costs.
5. Gas plant purchased or sold. A. When gas plant constituting an
operating unit or system is acquired by purchase, merger, consolidation,
liquidation, or otherwise, after the effective date of this system of
accounts, the costs of acquisition, including expenses incidental
thereto properly includible in gas plant, shall be charged to account
102, Gas Plant Purchased or Sold.
B. The accounting for the acquisition shall then be completed as
follows:
(1) The original cost of plant, estimated if not known, shall be
credited to account 102, Gas Plant Purchased or Sold, and concurrently
charged to the appropriate gas plant in service accounts and to account
104, Gas Plant Leased to Others, account 105, Gas Plant Held for Future
Use, 105.1, Production Properties Held for Future Use, and account 107,
Construction Work in Progress -- Gas, as appropriate.
(2) The depreciation, depletion, and amortization applicable to the
original cost of the properties purchased, shall be charged to account
102, Gas Plant Purchased or Sold, and concurrently credited to the
appropriate account for accumulated provision for depreciation,
depletion or amortization.
(3) The cost to the utility of any property includible in account
121, Nonutility Property, shall be transferred thereto.
(4) The amount remaining in account 102, Gas Plant Purchased or Sold,
shall then be closed to account 114, Gas Plant Acquisition Adjustments.
C. If property acquired in the purchase of an operating unit or
system is in such physical condition when acquired that it is necessary
substantially to rehabilitate it in order to bring the property up to
the standards of the utility, the cost of such work, except
replacements, shall be accounted for as a part of the purchase price of
the property.
D. When any property acquired as an operating unit or system includes
duplicate or other plant which will be retired by the accounting utility
in the reconstruction of the acquired property or its consolidation with
previously owned property, the proposed accounting for such property
shall be presented to the Commission.
E. In connection with the acquisition of gas plant constituting an
operating unit or system, the utility shall procure, if possible, all
existing records relating to the property acquired, or certified copies
thereof, and shall preserve such records in conformity with regulations
or practices governing the preservation of records of its own
construction.
F. When gas plant constituting an operating unit or system is sold,
conveyed, or transferred to another by sale, merger, consolidation, or
otherwise, the book cost of the property sold or transferred to another
shall be credited to the appropriate utility plant accounts, including
amounts carried in account 114, Gas Plant Acquisition Adjustments. The
amounts (estimated if not known) carried with respect thereto in the
accounts for accumulated provision for depreciation, depletion, and
amortization and in account 252, Customer Advances for Construction,
shall be charged to such accounts and the contra entries made to account
102, Gas Plant Purchased or Sold. Unless otherwise ordered by the
Commission, the difference, if any, between (a) the net amount of debits
and credits and (b) the consideration received for the property (less
commissions and other expenses of making the sale) shall be included in
account 421.1, Gain on Disposition of Property, or account 421.2, Loss
on Disposition of Property. (See account 102, Gas Plant Purchased or
Sold.)
Note: In cases where existing utilities merge or consolidate because
of financial or operating reasons or statutory requirements rather than
as a means of transferring title of purchased properties to a new owner,
the accounts of the constituent utilities, with the approval of the
Commission, may be combined. In the event original cost has not been
determined, the resulting utility shall proceed to determine such cost
as outlined herein.
6. Expenditures on leased property. A. The cost of substantial
initial improvements (including repairs, rearrangements, additions, and
betterments) made in the course of preparing for utility service
property leased for a period of more than one year, and the cost of
subsequent substantial additions, replacements, or betterments to such
property, shall be charged to the gas plant account appropriate for the
class of property leased. If the service life of the improvements is
terminable by action of the lease, the cost, less net salvage, of the
improvements shall be spread over the life of the lease by charges to
account 404.3, Amortization of Other Limited-Term Gas Plant (For
Nonmajor companies, account 404, Amortization of Limited-Term Gas
Plant). However, if the service life is not terminated by action of the
lease but by depreciation proper, the cost of the improvements, less net
salvage, shall be accounted for as depreciable plant. The provisions of
this paragraph are applicable to property leased under either capital
leases or operating leases.
B. If improvements made to property leased for a period of more than
one year are of relatively minor cost, or if the lease is for a period
of not more than one year, the cost of the improvements shall be charged
to the account in which the rent is included, either directly or by
amortization thereof.
7. Land and land rights. A. The accounts for land and land rights
shall include the cost of land owned in fee by the utility and rights,
interests, and privileges held by the utility in land owned by others,
such as leaseholds, easements, rights-of-way, natural gas rights, and
other like interests in land. Do not include in the accounts for land
and land rights and rights-of-way costs incurred in connection with
first clearing and grading of land and rights-of-way and the damage
costs associated with the construction and installation of plant. Such
costs shall be included in the appropriate plant accounts directly
benefited.
B. Where special assessments for public improvements provide for
deferred payments, the full amount of the assessments shall be charged
to the appropriate land account and the unpaid balance shall be carried
in an appropriate liability account. Interest on unpaid balances shall
be charged to the appropriate interest account. If any part of the cost
of public improvement is included in the general tax levy, the amount
thereof shall be charged to the appropriate tax account.
C. The net profit from the sale of timber, cord wood, sand, gravel,
other resources or other property acquired with the rights-of-way or
other lands shall be credited to the appropriate plant account to which
related. Where land is held for a considerable period of time and
timber and other natural resources on the land at the time of purchase
increases in value, the net profit (after giving effect to the cost of
the natural resources) from the sales of timber or its products or other
natural resources shall be credited to the appropriate utility operating
income account when such land has been recorded in account 105, Gas
Plant Held for Future Use, or in the case of Major companies, account
105.1, Production Properties Held for Future Use, or classified as plant
in service otherwise to account 421, Miscellaneous Nonoperating Income.
D. Separate entries shall be made for the acquisition, transfer, or
retirement of each parcel of land, and each land right, or gas right
(except rights-of-way for distribution mains), having a life of more
than one year. A record shall be maintained showing the nature of
ownership, full legal description, area, map reference, purpose for
which used, city, county, and tax district in which situated, from whom
purchased or to whom sold, payment given or received, other costs,
contract date and number, date of recording of deed, and book and page
of record. Entries transferring or retiring land or land rights shall
refer to the original entry recording its acquisition. In the case of
Major companies, a parcel of land acquired and carried on the books as a
unit is not required to be subdivided with transfers to other land
accounts merely because of the erection thereon of an incidental
structure to be used in gas operations but for a purpose differing from
that for which the land is chiefly employed; for example, a small
storehouse on production plant land.
E. Any difference between the amount received from the sale of land
or land rights, less agents' commissions and other costs incident to the
sale, and the book cost of such land or rights shall be included in
account 411.6, Gains from Disposition of Utility Plant or 411.7, Losses
from Disposition of Utility Plant when such property has been recorded
in account 105, Gas Plant Held for Future Use or in the case of Major
companies, 105.1, Production Properties Held for Future Use, otherwise
to account 421.1, Gain on Disposition of Property or 421.2, Loss on
Disposition of Property, as appropriate, unless a reserve therefor has
been authorized and provided. Appropriate adjustments of the accounts
shall be made with respect to any structures or improvements located on
land sold.
F. The cost of buildings and other improvements (other than public
improvements) shall not be included in the land accounts. If at the
time of acquisition of an interest in land such interest extends to
buildings or other improvements (other than public improvements), which
are then devoted to utility operations, the land and improvements shall
be separately appraised and the cost allocated to land and buildings or
improvements on the basis of the appraisals. If the improvements are
removed or wrecked without being used in operations, the cost of
removing or wrecking shall be charged and the salvage credited to the
account in which the cost of the land is recorded.
G. When the purchase of land for gas operations requires the purchase
of more land than needed for such purposes, the charge to the specific
land account shall be based upon the cost of the land purchased, less
the fair market value of that portion of the land which is not to be
used in utility operations. The portion of the cost measured by the
fair market value of the land not to be used shall be included in
account 105, Gas Plant Held for Future Use or, in the case of Major
Companies, account 121, Nonutility Property, as appropriate. Regarding
land and land rights held for the production of natural gas, account
101, Gas Plant in Service, shall include (1) the cost of lands owned in
fee upon which producing natural gas wells are located on lands owned in
fee which are being drained through the operation by the utility of
wells on the other land, and (2) the first cost of lands held under
lease upon which the utility pays royalties for the natural gas obtained
therefrom. The cost of all other land and land rights held for the
production of natural gas under a plant for such use shall be included
in account 105, Gas Plant Held for Future Use, or 105.1, Production
Properties Held for Future Use, as appropriate.
Note: In addition to the accounting records prescribed herein,
supplemental records of land and land rights held for future use shall
be kept in such manner as to permit the segregation within a reasonable
time of the land and land rights constituting (1) productive but
nonproducing fields, (2) unproven or undeveloped fields, and (3) storage
fields, and to show the following data with respect to each natural gas
lease, regardless of the accounting treatment accorded the lease costs;
(a) name of lessor, (b) location of leasehold and number or other
identification assigned thereto, (c) date and period of lease agreement,
(d) first cost of lease including details of the elements of such cost,
(e) annual rental provisions, (f) date and cost of drilling, (g) date
gas determined to exist, (h) date of completion of first well drilled by
the utility in each pool of gas, (i) royalty provisions, (j)
amortization and depletion provisions, and (k) date of abandonment of
lease.
H. Provision shall be made for amortizing amounts carried in the
accounts for limited-term interests in land, so as to apportion
equitably the cost of each interest over the life thereof. For the
purposes of amortization of natural gas rights, separate interests in
land which comprise an interest in a production area may be grouped to
form a depletion unit. (For Major companies, see account 111,
Accumulated Provision for Amortization and Depletion of Gas Utility
Plant, account 404.1, Amortization and Depletion of Producing Natural
Gas Land and Land Rights, account 404.3, Amortization of Other
Limited-Term Gas Plant. For Nonmajor companies, see account 403.1,
Depreciation and Depletion Expense, and account 110, Accumulated
Provision for Depreciation, Depletion and Amortization of Gas Utility
Plant. See also account 797, Abandoned Leases, for the accounting for
abandonments of natural gas leases which have never been productive.)
I. The items of cost to be included in the accounts for land and land
rights are as follows:
1. Bulkheads, buried, not requiring maintenance or replacement.
2. Cost, first, of acquisition including mortgages and other liens
assumed (but not subsequent interest thereon).
3. (Reserved)
4. Condemnation proceedings, including court and counsel costs.
5. Consents and abutting damages, payment for.
6. Conveyancers' and notaries' fees.
7. Fees, commissions, and salaries to brokers, agents, and others in
connection with the acquisition of the land or land rights.
8. (Reserved)
9. Leases, cost of voiding upon purchase to secure possession of
land.
10. Removing, relocating, or reconstructing, property of others, such
as buildings, highways, railroads, bridges, cemeteries, churches,
telephone and power lines, etc., in order to acquire quiet possession.
11. Retaining walls unless identified with structures.
12. Special assessments levied by public authorities for public
improvements on the basis of benefits for new roads, new bridges, new
sewers, new curbing, new pavements, and other public improvements, but
not taxes levied to provide for the maintenance of such improvements.
13. Surveys in connection with the acquisition, but not amounts paid
for topographical surveys and maps where such costs are attributable to
structures or plant equipment erected or to be erected or installed on
such land.
14. Taxes assumed, accrued to date of transfer of title.
15. Title, examining, clearing, insuring, and registering in
connection with the acquisition and defending against claims relating to
the period prior to the acquisition.
16. Appraisals prior to closing title.
17. Cost of dealing with distributees or legatees residing outside of
the state or county, such as recording power of attorney, recording will
or exemplification of will, recording satisfaction of state tax.
18. Filing satisfaction of mortgage.
19. Documentary stamps.
20. Photographs of property at acquisition.
21. Fees and expenses incurred in the acquisition of water rights,
and grants.
22. Cost of fill to extend bulkhead line over land under water, where
riparian rights are held, which is not occasioned by the erection of a
structure.
23. Sidewalks and curbs constructed by the utility on public
property.
24. Labor and expenses in connection with securing rights of way,
where performed by company employees and company agents.
8. Structures and improvements. A. The accounts for structures and
improvements shall include the cost of all buildings and facilities to
house, support, or safeguard property or persons, including all fixtures
permanently attached to and made a part of buildings and which cannot be
removed therefrom without cutting into the walls, ceilings, or floors,
or without in some way impairing the buildings, and improvements of a
permanent character on or to land. Also include those costs incurred in
connection with the first clearing and grading of land and
rights-of-way, and the damage costs associated with construction and
installation of plant.
B. The cost of specially provided foundations not intended to outlast
the machinery or apparatus for which provided, and the cost of angle
irons, castings, etc., installed at the base of an item of equipment,
shall be charged to the same account as the cost of the machinery,
apparatus, or equipment.
C. Minor buildings and structures may be considered a part of the
facility in connection with which constructed or operated and the cost
thereof accounted for accordingly when the nature of the structure and
facility indicates the correctness of such accounting.
D. Where furnaces and boilers are used primarily for furnishing steam
for some particular department and only incidentally for furnishing
steam for heating a building and operating the equipment therein, the
entire cost of such furnaces and boilers shall be charged to the
appropriate plant account, and no part to the building account.
E. The cost of disposing of materials excavated in connection with
construction of structures shall be considered as a part of the cost of
such work, except as follows: (a) When such material is used for
filling, the cost of loading, hauling, and dumping shall be equitably
apportioned between the work in connection with which the removal occurs
and the work in connection with which the material is used; (b) when
such material is sold, the net amount realized from such sales shall be
credited to the work in connection with which the removal occurs. If
the amount realized from the sale of excavated materials exceeds the
removal costs and the costs in connection with the sale, the excess
shall be credited to the land account in which the site is carried.
F. Lighting or other fixtures temporarily attached to buildings for
purposes of display or demonstration shall not be included in the cost
of the building but in the appropriate equipment account.
G. The items of cost to be included in the accounts for structures
and improvements are as follows:
1. Architects' plans and specifications including supervision.
2. Ash pits (when located within the building) (Major natural gas
companies).
3. Athletic field structures and improvements.
4. Boilers, furnaces, piping, wiring, fixtures, and machinery for
heating, lighting, signaling, ventilating, and air conditioning systems,
plumbing, vacuum cleaning systems, incinerator and smoke pipe, flues,
etc.
5. Bulkheads, including dredging, riprap fill, piling, decking,
concrete, fenders, etc., when exposed and subject to maintenance and
replacement.
6. Chimneys (Major natural gas companies).
7. Coal bins and bunkers.
8. Commissions and fees to brokers, agents, architects and others.
9. Conduit (not to be removed) with its contents.
10. Damages to abutting property during construction.
11. Docks (Major natural gas companies).
12. Door checks and door stops (Major natural gas companies).
13. Drainage and sewerage systems.
14. Elevators, cranes, hoists, etc., and the machinery for operating
them.
15. Excavation, including shoring, bracing, bridging, refill, and
disposal of excess excavated material, cofferdams around foundation,
pumping water from cofferdam during construction, and test borings.
16. Fences and fence curbs (not including protective fences
insolating items of equipment, which shall be charged to the appropriate
equipment account).
17. Fire protection systems when forming a part of a structure.
18. Flagpole (Major natural gas companies).
19. Floor covering (permanently attached) (Major natural gas
companies).
20. Foundations and piers for machinery, constructed as a permanent
part of a building or other items listed herein.
21. Grading and clearing when directly occasioned by the building of
a structure.
22. Holders -- Relief (Major natural gas companies).
23. Intrasite communication system, poles, pole fixtures, wires and
cables.
24. Landscaping, lawns, shrubbery, etc.
25. Leases, voiding upon purchase to secure possession of structures.
26. Leased property, expenditures on.
27. Lighting fixtures and outside lighting system.
28. Mailchutes when part of a building (Major natural gas companies).
29. Marquee, permanently attached to building (Major natural gas
companies).
30. Painting, first coat.
31. Permanent paving, concrete, brick, flagstone, asphalt, etc.
within the property lines.
32. Partitions, including movable (Major natural gas companies).
33. Permits and privileges.
34. Platforms, railings and gratings when constructed as a part of a
structure.
35. Power boards for services to a building (Major natural gas
companies).
36. Refrigerating systems for general use (Major natural gas
companies).
37. Retaining walls except when identified with land.
38. Roadways, railroads, bridges, and trestles, intrasite, except
railroads provided for in equipment accounts.
39. Roofs (Major natural gas companies).
40. Scales, connected to and forming a part of a structure (Major
natural gas companies).
41. Screens (Major natural gas companies).
42. Sewer systems, for general use (Major natural gas companies).
43. Sidewalks, culverts, curbs and streets constructed by the utility
on its property.
44. Sprinkling systems (Major natural gas companies).
45. Sump pumps and pits (Major natural gas companies).
46. Stacks -- brick, steel, or concrete, when set on foundation
forming part of general foundation and steelwork of a building.
47. Steel inspection during construction (Major natural gas
companies).
48. Storage facilities constituting a part of a building.
49. Storm doors and windows (Major natural gas companies).
50. Subways, areaways, and tunnels, directly connected to and forming
part of a structure.
51. Tanks, constructed as part of a building or as a distinct
structural unit.
52. Temporary heating during construction (net cost) (Major natural
gas companies).
53. Temporary water connection during construction (net cost) (Major
natural gas companies).
54. Temporary shanties and other facilities used during construction
(net cost).
55. Topographical maps (Major natural gas companies).
56. Tunnels, intake and discharge, when constructed as part of a
structure, including sluice gates, and those constructed to house mains.
57. Vaults constructed as part of a building.
58. Watchmen's sheds and clock systems (net cost when used during
construction only) (Major natural gas companies).
59. Water basins or reservoirs.
60. Water front improvements (Major natural gas companies).
61. Water meters and supply system for a building or for general
company purposes (Major natural gas companies).
62. Water supply piping, hydrants and wells (Major natural gas
companies).
63. Wharves.
64. Window shades and ventilators (Major natural gas companies).
65. Yard drainage system (Major natural gas companies).
66. Yard lighting system (Major natural gas companies).
67. Yard surfacing, gravel, concrete, or oil (First cost only) (Major
natural gas companies).
Note: Structures and Improvements accounts shall be credited with
the cost of coal bunkers, stacks, foundations, subways, tunnels, etc.,
the use of which has terminated with the removal of the equipment with
which they are associated even though they have not been physically
removed.
9. Equipment. A. The cost of equipment chargeable to the gas plant
accounts, unless otherwise indicated in the text of an equipment
account, includes the net purchase price thereof, sales taxes,
investigation and inspection expenses necessary to such purchase,
expenses of transportation when borne by the utility, labor employed,
materials and supplies consumed, and expenses incurred by the utility in
unloading and placing the equipment in readiness to operate. Also
include those costs incurred in connection with the first clearing and
grading of land and rights-of-way and the damage costs associated with
construction and installation of plant.
B. Exclude from equipment accounts hand and other portable tools
which are likely to be lost or stolen or which have relatively small
value (for example, $500 or less) or short life, unless the correctness
of the accounting therefor as gas plant is verified by current
inventories. Special tools acquired and included in the purchase price
of equipment shall be included in the appropriate plant account.
Portable drills and similar tool equipment when used in connection with
the operation and maintenance of a particular plant or department, such
as production, transmission, distribution, etc., or in ''stores,'' shall
be charged to the plant account appropriate for their use.
C. The equipment accounts shall include angle irons and similar items
which are installed at the base of an item of equipment, but piers and
foundations which are designed to be as permanent as the buildings which
house the equipment, or which are constructed as a part of the building
and which cannot be removed without cutting into the walls, ceilings or
floors or without in some way impairing the building, shall be included
in the building accounts.
D. The equipment accounts shall include the necessary costs of
testing or running a plant or part thereof during an experimental or
test period prior to becoming available for service. The utility shall
furnish the Commission with full particulars of and justification for
any test or experimental run extending beyond a period of thirty days.
E. The cost of efficiency or other tests made subsequent to the date
equipment becomes available for service shall be charged to the
appropriate expense accounts, except that tests to determine whether
equipment meets the specifications and requirements as to efficiency,
performance, etc., guaranteed by manufacturers, made after operations
have commenced and within the period specified in the agreement or
contract of purchase, may be charged to the appropriate gas plant
account.
10. Additions and retirements of gas plant. A. For the purpose of
avoiding undue refinement in accounting for additions to and retirements
and replacements of gas plant, all property shall be considered as
consisting of (1) retirement units and (2) minor items of property.
Each utility shall use such list of retirement units as is in use by it
at the effective date hereof or as may be prescribed by the Commission,
with the option, however, of using smaller units, provided the utility's
practice in this respect is consistent.
B. The addition and retirement of retirement units shall be accounted
for as follows:
(1) When a retirement unit is added to gas plant, the cost thereof
shall be added to the appropriate gas plant account, except that when
units are acquired in the acquisition of any gas plant constituting an
operating sys- tem, they shall be accounted for as provided in gas plant
instruction 5.
(2) When a retirement unit is retired from gas plant, with or without
replacement, the book cost thereof shall be credited to the gas plant
account in which it is included, determined in the manner set forth in
paragraph D, below. If the retirement unit is of a depreciable class,
the book cost of the unit retired and credited to gas plant shall be
charged to the accumulated provision for depreciation applicable to such
property. The cost of removal and the salvage shall be charged or
credited, as appropriate, to such depreciation account.
C. The addition and retirement of minor items of property shall be
accounted for as follows:
(1) When a minor item of property which did not previously exist is
added to plant, the cost thereof shall be accounted for in the same
manner as for the addition of a retirement unit, as set forth in
paragraph B(1), above, if a substantial addition results, otherwise the
charge shall be to the appropriate maintenance expense account.
(2) When a minor item of property is retired and not replaced, the
book cost thereof shall be credited to the gas plant account in which it
is included; and, in the event the minor item is a part of depreciable
plant, the account for accumulated provision for depreciation shall be
charged with the book cost and cost of removal and credited with the
salvage. If, however, the book cost of the minor item retired and not
replaced has been or will be accounted for by its inclusion in the
retirement unit of which it is a part when such unit is retired, no
separate credit to the property account is required when such minor item
is retired.
(3) When a minor item of depreciable property is replaced
independently of the retirement unit of which it is a part, the cost of
replacement shall be charged to the maintenance account appropriate for
the item, except that if the replacement effects a substantial
betterment (the primary aim of which is to make the property affected
more useful, more efficient, or of greater durability, or of greater
capacity), the excess cost of the replacement over the estimated cost at
current prices of replacing without betterment shall be charged to the
appropriate gas plant account.
D. The book cost of gas plant retired shall be the amount at which
such property is included in the gas plant accounts, including all
components of construction costs. The book cost shall be determined
from the utility's records and if this cannot be done, it shall be
estimated. When it is impracticable to determine the book cost of each
unit, due to the relatively large number or small cost thereof, an
appropriate average book cost of the units, with due allowance for any
differences in size and character, shall be used as the book cost of the
units retired.
E. The book cost of land retired shall be credited to the appropriate
land account. If the land is sold, the difference between the book cost
(less any accumulated provision for depreciation, depletion or
amortization therefor which has been authorized and provided) and the
sale price of the land (less commissions and other expenses of making
the sale) shall be recorded in account 411.6, Gains from Disposition of
Utility Plant or 411.7, Losses from Disposition of Utility Plant when
the property has been recorded in account 105, Gas Plant Held for Future
Use or in the case of Major companies, account 105.1, Production
Properties Held for Future Use, otherwise to accounts 421.1, Gain on
Disposition of Property or 421.2, Loss on Disposition of Property, as
appropriate. If the land is not used in utility service but is retained
by the utility, the book cost shall be charged to account 105, Gas Plant
Held for Future Use, or account 121, Nonutility Property as appropriate.
F. The book cost less net salvage of depreciable gas plant retired
shall be charged in its entirety to account 108. Accumulated Provision
for Depreciation of Gas Plant in Service (account 110, Accumulated
Provision for Depreciation, Depletion and Amortization of Gas Utility
Plant, in the case of Nonmajor companies). Any amounts which, by
approval or order of the Commission, are charged to account 182,
Extraordinary Property Losses, shall be credited to account 108 (account
110 for Nonmajor companies).
G. In the case of Major companies, the accounting for the retirement
of amounts included in account 302, Franchises and Consents, and account
303, Miscellaneous Intangible Plant, and the item of limited-term
interest in land included in the accounts for land and land rights,
shall be as provided for in the text of account 111, Accumulated
Provision for Amortization and Depletion of Gas Utility Plant, account
404.3, Amortization of Other Limited-Term Gas Plant, and account 405,
Amortization of Other Gas Plant.
11. Work order and property record system required. A. Each utility
shall record all construction and retirements of gas plant by means of
work orders or job orders. Separate work orders may be opened for
additions to and retirements of gas plant or the retirements may be
included with the construction work order, provided, however, that all
items relating to the retirements shall be kept separate from those
relating to construction and provided, further, that any maintenance
costs involved in the work shall likewise be segregated.
B. Each utility shall keep its work order system so as to show the
nature of each addition to or retirement of gas plant, the total cost
thereof, the source or sources of costs, and the gas plant account or
accounts to which charged or credited. Work orders covering jobs of
short duration may be cleared monthly.
C. In the case of Major companies, each utility shall maintain
records in which, for each plant account, the amounts of the annual
additions and retirements, subsequent to the effective date of this
system of accounts, are classified so as to show the number and cost of
the various record units or retirement units.
12. Transfers of property. When property is transferred from one gas
plant account to another, from one utility department to another (such
as from gas to electric), from one operating division or area to
another, to or from account 101, Gas Plant in Service, 104, Gas Plant
Leased to Others, 105, Gas Plant Held for Future Use, (105.1, Production
Properties Held For Future Use, in the case of Major companies), and
121, Nonutility Property, the transfer shall be recorded by transferring
the original cost thereof from the one account, department, or location
to the other. Any related amounts carried in the accounts for
accumulated provisions for depreciation, depletion, or amortization
shall be transferred in accordance with the segregation of such
accounts.
Note (Major companies): Amounts included in account 111, Accumulated
Provision for Amortization and Depletion of Gas Utility Plant, shall not
be related to a particular natural gas lease, and therefore, shall not
be transferred under the provisions of this instruction.
13. Common utility plant. A. If the utility is engaged in more than
one utility service such as gas, electric, and water, and any of its
utility plant is used in common for several utility services or for
other purposes to such an extent and in such manner that it is
impracticable to segregate it by utility services currently in the
accounts, such property, with the approval of the Commission, may be
designated and classified as ''common utility plant.''
B. The book amount of utility plant designated as common plant shall
be included in account 118, Other Utility Plant, and if applicable in
part to gas department, shall be segregated and accounted for in
subaccounts as gas plant is accounted for in accounts 101 to 107,
inclusive, and gas plant adjustments in account 116; any amounts
classifiable as common plant acquisition adjustments or common plant
adjustments shall be subject to disposition as provided in paragraph C
and B of accounts 114 and 116, respectively, for amounts classified in
those accounts. The original cost of common utility plant in service
shall be classified according to detailed utility plant accounts
appropriate for the property.
C. The utility shall be prepared to show at any time and to report to
the Commission annually, or more frequently, if required, and by utility
plant accounts (301 to 399) the following: (1) The book cost of common
utility plant, (2) the allocation of such cost to the respective
departments using the common utility plant, and (3) the basis of the
allocation.
D. The accumulated provision for depreciation and amortization of the
utility shall be segregated so as to show the amount applicable to the
property classified as common utility plant.
E. The expenses of operation maintenance, rents, depreciation and
amortization of common utility plant shall be recorded in the accounts
prescribed herein, but designated as common expenses, and the allocation
of such expenses to the departments using the common utility plant shall
be supported in such manner as to reflect readily the basis of
allocation used.
14. Employee villages and living quarters (Major natural gas
companies). Where employee villages or living quarters are provided for
operators and attendants of a functional installation such as a
compressor station or gasoline plant, the structures and improvements
shall be classified in the related functional structures and
improvements account. The furnishings of such residential and
recreational facilities shall be classified in the equipment account of
the related function.
15. Fees for applications filed with the Commission. A. Fees for
applications involving construction of property shall be accounted for
as follows:
(1) All fees paid prior to the final disposition of the certificate
application shall be charged to account 186, Miscellaneous Deferred
Debits (account 180, Other Deferred Debits, in the case of Nonmajor
companies).
(2) If the certificate is granted and accepted, the amounts recorded
in account 186 shall be cleared to account 107, Construction Work in
Progress -- Gas, and subsequently cleared to the appropriate plant
accounts (the amounts recorded in account 186 shall be cleared to the
appropriate plant accounts, in the case of Nonmajor companies).
(3) If the certificate requested is not granted or is not accepted by
the applicant, the fees recorded in account 186 (Account 180 in the case
of Nonmajor companies) shall be cleared to account 928, Regulatory
Commission Expenses.
(4) All amounts paid after the Commission has granted the certificate
shall be recorded in account 107, Construction Work in Progress -- Gas,
and subsequently cleared to the appropriate plant accounts.
B. All amounts paid related to certificate applications involving the
acquisitions of facilities including those acquired by merger or pooling
of interests shall be charged to account 928, Regulatory Commission
Expenses.
C. All other fees for applications not involving construction or
acquisition of facilities shall be charged to account 928, Regulatory
Commission Expenses.
16. Transmission and distribution plant (Nonmajor natural gas
companies). For the purposes of this system of accounts:
A. ''Transmission system'' means the land, structures, mains, valves,
meters, boosters, regulators, tanks, compressors and their driving units
and appurtenances, and other equipment used primarily for transmitting
gas from a production plant, delivery point of purchased gas, gathering
system storage area, or other wholesale source of gas, to one or more
distribution areas. The transmission system begins at the outlet side
of the valve at the connection to the last equipment in a manufactured
gas plant, the connection to gathering lines or delivery point of
purchased gas, and includes the equipment at such connection that it
used to bring the gas to transmission pressure, and ends at the outlet
side of the equipment which meters or regulates the entry of gas into
the distribution system or into a storage area. It does not include
storage, land, structures or equipment. Pipeline companies, including
those companies which measure deliveries of gas to their own
distribution systems, shall include city gate and main line industrial
measuring and regulating stations in the transmission function.
B. ''Distribution system'' means the mains which are provided
primarily for distributing gas within a distribution area, together with
land, structures, valves, regulators, services and measuring devices,
including the mains for transportation of gas from production plants or
points of receipt located within such distribution area to other points
therein. The distribution system owned by companies having no
transmission facilities connected to such distribution system begins at
the inlet side of the distribution system equipment which meters or
regulates the entry of gas into the distribution system and ends with
and includes property on the customer's premises. For companies which
own both transmission and distribution facilities on a continuous line,
the distribution system begins at the outlet side of the equipment which
meters or regulates the entry of gas into the distribution system and
ends with and includes property on the customer's premises. The
distribution system does not include storage land, structures, or
equipment.
C. ''Distribution area'' as used herein means a metropolitan area or
other urban area comprising one or more adjacent or nearby cities,
villages or unincorporated areas, including areas contiguous to main
highways.