backOn July 21, 2016, the Federal Energy Regulatory Commission (FERC) issued a notice of proposed rulemaking (the NOPR) addressing the collection of certain data from sellers making sales at market-based rates (MBR Sellers) and entities trading virtual products or holding financial transmission rights (Virtual/FTR Participants). The NOPR also proposes changes to FERCs requirements with respect to other information submitted for market-based rate purposes. FERC states that the proposed changes are intended to improve FERCs analysis and understanding of the financial and legal connections between market participants and other entities.
The NOPR proposes to require MBR Sellers and Virtual/FTR Participants to provide information regarding their Connected Entities. Connected Entities are defined in the NOPR to include, but are not limited to, upstream owners, as well as affiliated entities that participate in FERC-jurisdictional organized wholesale markets, or purchase or sell financial natural gas or electric derivative products that settle off of the price of natural gas or physical electric products.
The NOPR also proposes to create a relational database, which would include information regarding Connected Entities, as well as information that is currently provided in MBR Sellers assets appendices and the indicative screens used to assess their market power. The creation of the database will require changes to the format in which MBR Sellers provide such information. MBR Sellers would be required to submit baseline filings providing such information in the prescribed XML format, and to update that information not subject to the existing change in status reporting requirements on a quarterly basis.
Comments on the NOPR are due 45 days after its publication in the Federal Register.