[Federal Register: December 6, 2006 (Volume 71, Number 234)]
[Proposed Rules]
[Page 70692-70695]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr06de06-14]
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DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
18 CFR Parts 2, 33, 365 and 366
[Docket No. AD07-2-000]
Repeal of the Public Utility Holding Company Act of 1935 and
Enactment of the Public Utility Holding Company Act of 2005;
Transaction Subject to FPA Section 203; Supplemental Notice of
Technical Conference
November 27, 2006.
AGENCY: Federal Energy Regulatory Commission, DOE.
[[Page 70693]]
ACTION: Supplemental notice of technical conference.
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SUMMARY: The Federal Energy Regulatory Commission (Commission) is
holding a technical conference in Commission Docket No. AD07-2-000 on
December 7, 2006, to discuss certain issues raised in rulemakings
issued in Commission Docket Nos. RM05-32-000 and RM05-34-000. The
Commission is providing the agenda for the conference, a list of
participants and providing interested parties an opportunity to file
written comments following the conference.
DATES: Comments may be filed on issues raised at the conference, on or
before January 26, 2007.
FOR FURTHER INFORMATION CONTACT:
Roshini Thayaparan (Legal Information), Office of the General Counsel,
Federal Energy Regulatory Commission, 888 First Street, NE.,
Washington, DC 20426, (202) 502-6857.
Andrew P. Mosier, Jr. (Legal Information), Office of General Counsel,
888 First Street, NE., Washington, DC 20426, (202) 502-6274.
SUPPLEMENTARY INFORMATION: This conference addresses certain issues
raised in rulemakings issued in Docket No. RM05-32-000 (70 FR 75592,
December 20, 2005) and Docket No. RM05-34-000. (71 FR 1348, January 6,
2006).
As announced in the Notice of Technical Conference issued on
October 6, 2006, the Federal Energy Regulatory Commission (Commission)
will hold a technical conference on December 7, 2006, to discuss
certain issues raised in rulemakings issued in Docket Nos. RM05-32 and
RM05-34.\1\ The technical conference will be held from 9:30 am to 4:30
pm (EST) at the Federal Energy Regulatory Commission, 888 First Street,
NE., Washington, DC 20426, in the Commission Meeting Room. All
interested persons are invited to attend, and registration is not
required.
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\1\ Repeal of the Public Utility Holding Company Act of 1935 and
Enactment of the Public Utility Holding Company Act of 2005, Order
No. 667, FERC Stats. & Regs. ] 31,197 (2005), order on reh'g, Order
No. 667-A, FERC Stats. & Regs. ] 31,213, order on reh'g, Order No.
667-B, FERC Stats. & Regs. ] 31,224 (2006), reh'g pending;
Transactions Subject to FPA Section 203, Order No. 669, FERC Stats.
& Regs. ] 31,200 (2006), order on reh'g, Order No. 669-A, FERC
Stats. Regs. ] 31,214 (2006), order on reh'g, Order No. 669-B, FERC
Stats. & Regs. ] 31,225 (2006).
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The agenda for this conference, with a list of participating
panelists, is attached. In order to allot sufficient time for questions
and responses, each speaker will be provided with five (5) minutes for
prepared remarks. Due to the limitation of time, slides and graphic
displays (e.g., PowerPoint[supreg] presentations) will not be permitted
during the conference. Presenters who wish to distribute copies of
their prepared remarks or handouts should bring 100 double-sided copies
to the technical conference. Presenters who wish to include comments,
presentations, or handouts in the record for this proceeding should
file their comments with the Secretary of the Commission. Comments may
either be filed on paper or electronically via the eFiling link on the
Commission's Web site at http://www.ferc.gov. Following the conference,
any interested person will be permitted to file written comments in the
above docket on or before January 26, 2007.
A free webcast of this event will be available through http://www.ferc.gov.
Anyone with Internet access who desires to view this
event can do so by navigating to http://www.ferc.gov's Calendar of
Events and locating this event in the Calendar. The event will contain
a link to its webcast. The Capitol Connection provides technical
support for the free webcasts. It also offers access to this event via
television in the DC area and via phone bridge for a fee. Visit http://www.CapitolConnection.org
or contact Danelle Perkowski or David
Reininger at 703-993-3100 for more information about this service.
Commission conferences are accessible under section 508 of the
Rehabilitation Act of 1973. For accessibility accommodations please
send an e-mail to accessibility@ferc.gov or call toll free 1-866-208-
3372 (voice) or 202-208-1659 (TTY), or send a FAX to 202-208-2106 with
the required accommodations.
For more information about this conference, please contact:
Andrew P. Mosier, Jr., Office of Energy Markets and Reliability,
Federal Energy Regulatory Commission, 888 First Street, NE.,
Washington, DC 20426, (202) 502-6274, Andrew.Mosier@ferc.gov.
Roshini Thayaparan, Office of the General Counsel--Energy Markets,
Federal Energy Regulatory Commission, 888 First Street, NE.,
Washington, DC 20426, (202) 502-6857, Roshini.Thayaparan@ferc.gov.
Magalie R. Salas,
Secretary.
Agenda for Technical Conference on Public Utility Holding CompanyAct of
2005 and Federal Power Act Section 203 Issues \2\
December 7, 2006
Welcome Remarks:
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\2\ The lists of panelists for this technical conference may
change. The Commission will issue a further notice of changes if
time permits. Additionally, issues raised in the Order No. 667, et
al. and Order No. 669, et al. rulemakings with respect to whether
the Commission should change its merger policy, including its
competition analysis, will be discussed at a subsequent technical
conference.
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9:30 a.m.-9:45 a.m.
Panel 1: Panel on Cross-Subsidization
9:45 a.m.-11:45 a.m.
The Commission invites panelists to discuss whether there are
additional actions, under the Federal Power Act (FPA) or Natural Gas
Act (NGA), that the Commission should take to supplement the
protections against cross-subsidization that were implemented in Order
No. 667, et al. and Order No. 669, et al. Specifically, the Commission
seeks panelist input on any or all of the following issues:
FPA Section 203 Authorities
[cir] In discussing the safeguards necessary to protect consumers
under FPA section 203, Order No. 669 states that applicants ``must
adopt sufficient safeguards, including any necessary cash management
controls (such as restrictions on upstream transfers of funds, ring
fencing, etc.) to prevent any cross-subsidization between holding
companies and their new subsidiaries before receiving section 203
approval.'' As a general matter, the Commission and most states have
authority to review proposed mergers/corporate dispositions involving
public utilities and to impose cross-subsidization safeguards as a
condition of approval; they also have rate related authorities to
protect customers against inappropriate cross-subsidization. Should the
Commission adopt specific generic cross-subsidization safeguards in its
section 203 regulations or is it preferable, particularly in light of
state authorities, for the Commission to permit applicants to implement
safeguards on a case-by-case basis subject to audit oversight?
[cir] With respect to FPA section 203 merger/corporate
applications, should the Commission require more specific cross-subsidy
protections in addition to
[[Page 70694]]
the general requirement that there shall be no cross-subsidization
resulting from or reasonably foreseeable as a result of a FPA section
203 transaction?
[cir] Should the Commission adopt, by regulation, generic ``ring
fencing'' or other conditions of merger approvals (other than codifying
a version of its current code of conduct/merger restrictions) or should
the Commission continue to consider such conditions on a case-by-case
basis? In light of the fact that most states have authority to adopt
such protections, is further generic action by the Commission
inappropriate or unnecessary at this time?
[cir] Is the Commission getting sufficient information in FPA
section 203 applications to make a determination that a merger or other
corporate transaction will not result in cross-subsidization or the
encumbrance of utility assets? If not, what additional information
should the Commission require FPA section 203 applicants to file?
FPA and NGA Rate and Accounting Authorities
[cir] Are there additional generic actions the Commission should
take under its FPA or NGA authorities (other than FPA section 203,
which is discussed in other questions above) to protect customers
against inappropriate cross-subsidization or encumbrances of utility
assets? Are reporting requirements, rather than restrictions, a better
way in which to protect against cross-subsidization and the encumbrance
of utility assets?
[cir] Should the Commission adopt regulations under FPA sections
205 and 206 to codify existing restrictions regarding power and non-
power goods and services transactions between traditional public
utilities and their ``unregulated'' affiliates? Should these existing
restrictions apply to all traditional public utilities and their
affiliates irrespective of whether they are seeking merger approval
under FPA section 203 or market-based rate approval under FPA section
205? Should the scope of the existing power and non-power goods and
services restrictions be expanded and, if so, how?
[cir] In light of the submissions to date of the FERC Form No. 60
(Service Company Report), which applies to centralized service
companies, is the Commission getting sufficient information to protect
against inappropriate cross-subsidization and the encumbrance of
utility assets? Is there other information the Commission should
routinely collect, or is case-by-case access to books and records in
audit and rate proceedings sufficient to ensure that customers are
protected against inappropriate cross-subsidization?
Panelists
[cir] The Honorable Ray Baum, Commissioner, Oregon Public Utility
Commission
[cir] The Honorable Robert Garvin, Commissioner, Wisconsin Public
Service Commission
[cir] John Antonuk, President, The Liberty Consulting Group
[cir] Randolph Elliot, Principal, Miller, Balis & O'Neil, P.C., on
behalf of the American Public Power Association and the National Rural
Electric Cooperative Association
[cir] Brian Little, Assistant Controller, AGL Resources Inc.
[cir] Electric Utility Company Representative--TBA
[cir] Electric Utility Company Representative--TBA
[cir] Financial Representative--TBA
Lunch:
12 p.m.-1 p.m.
Panel 2: Panel on Cash Management Programs and Money Pools
1 p.m.-2:30 p.m.
The Commission adopted its Cash Management Rule, Order No. 634, et
al., prior to the Public Utility Holding Company Act of 2005 (PUHCA
2005), when the Commission had no direct authority over holding
companies. The Commission invites panelists to discuss whether, and if
so how, the Commission should modify its Cash Management Rule in light
of PUHCA 2005. Should the Commission codify specific safeguards that
must be adopted for cash management programs and money pool agreements
and transactions? If so, what should those safeguards be?
Panelists
[cir] Denise Parrish, Deputy Administrator, Wyoming Office of
Consumer Advocate
[cir] Denise M. Furey, Senior Director, Fitch Ratings
[cir] Gas Industry Representative--TBA
[cir] Electric Utility Company Representative--TBA
[cir] Electric Utility Company Representative--TBA
[cir] State/Customer Representative--TBA
Break:
2:30 p.m.-2:45 p.m.
Panel 3: Panel on Exemptions, Waivers and Blanket Authorizations Set
Forth in OrderNos. 667, et al. and 669, et al.
2:45 p.m.-4:15 p.m.
In Order No. 667, et al. and Order No. 669, et al., the Commission
set forth specific exemptions, waivers and blanket authorizations from
the regulatory requirements set forth in those orders. The Commission
invites panelists to discuss whether modifications to the specific
exemptions, waivers and blanket authorizations set forth in Order No.
667, et al. and Order No. 669, et al. are warranted. Specifically, the
Commission seeks input as to the following issues:
--Exemptions and waivers set forth in Order No. 667, et al.:
[cir] Does the Commission need to consider additional or different
exemptions and waivers than those set forth in Order No. 667, et al. or
should it wait until it has had more experience under the current
rules?
--Blanket authorizations set forth in Order No. 669, et al.:
[cir] Does the Commission need to consider additional or different
blanket FPA section 203 authorizations than those set forth in Order
No. 669, et al. or should it wait until it has had more experience
under the current rules?
[cir] In Order No. 669, et al., the Commission granted a blanket
authorization under FPA section 203(a)(2) for holding companies to
acquire up to 10 percent of voting securities of a securities in a
transmitting utility, an electric utility company, or a holding company
in a holding company system that includes a transmitting utility or an
electric utility company. Under what circumstances would it be
appropriate for the Commission to grant a parallel blanket
authorization under FPA section 203(a)(1) for transactions that (a)
involve or permit transfers (dispositions) of up to 10 percent of a
public utility's voting stock; (b) involve a transfer of up to 10
percent of the voting stock of a holding company that directly or
indirectly owns or controls a public utility?
Panelists
[cir] State/Customer Representative--TBA
[cir] Customer/Financial Representative--TBA
[cir] Walter R. Burkley, Vice President and Counsel, Capital
Research and Management Company
[cir] Steven Bunkin, Managing Director and Associate General
Counsel, Goldman, Sachs & Co./J. Aron & Company
[cir] Debra Bolton, Vice President and Assistant General Counsel,
Mirant
[cir] Ike Gibbs, Vice President, Compliance Director and Assistant
General Counsel, JPMorgan Chase & Co.
[cir] Electric Utility Company Representative--TBA
[[Page 70695]]
Closing Remarks:
4:15 p.m.-4:30 p.m.
The Commissioners and staff may ask questions at the conclusion of
presentations. All interested persons may file written comments
following the technical conference on or before January 26, 2007.
[FR Doc. E6-20609 Filed 12-5-06; 8:45 am]
BILLING CODE 6717-01-P