Enforcement Standards of Conduct for Transmission Providers Commission Orders

Commission Orders

October 16, 2008 - Standards of Conduct for Transmission Providers (Final Rule) (Order No. 717) (RM07-1-000)
On October 16, 2008, FERC issued Order No. 717 adopting a series of reforms to the Standards of Conduct for transmission providers that will simplify and strengthen the rules.

March 21, 2008 - Standards of Conduct for Transmission Providers (NOPR) (RM07-1-000)
FERC proposed a series of reforms to the Standards of Conduct for transmission providers that will simplify and strengthen the rules. The intent of the proposal, outlined in a Notice of Proposed Rulemaking, is to return to the core principles of Order Nos. 497 and 889, which until 2003 addressed standards of conduct for, respectively, natural gas pipeline and electric transmission provider employees.

March 21, 2007 - Order on Clarification and Rehearing on Standards of Conduct for Transmission Providers (Order No. 690-A) (RM07-6-001)
FERC clarified that the standards of conduct for natural gas transmission providers under the interim rule apply only to natural gas transmission providers that are affiliated with a marketing or brokering entity that conducts transportation transactions on such natural gas transmission provider’s pipeline. FERC also clarified that the definition for a marketing or brokering entity for a natural gas transmission provider is identical to the definition under the pre-Order No. 2004 standards of conduct.

January 18, 2007 - Standards of Conduct for Transmission Providers (NOPR) (RM07-1-000)
FERC issued a Notice of Proposed Rulemaking soliciting comments regarding whether or not the interim rule should be made permanent for natural gas transmission providers. The Commission also solicited comments regarding comparable changes for electric utility transmission providers: specifically, whether or not the standards of conduct should govern the relationship between electric utility transmission providers and their energy affiliates. Also, the Commission is proposing to: revise the definition of marketing, sales or brokering; make permanent the changes adopted in the interim rule for risk management employees and discretionary waivers; remove the regulations that permit the transmission provider to share information necessary to maintain the operations of its transmission system with its energy affiliates; add and revise various regulations to facilitate integrated resource planning and competitive solicitations; revise the regulations to require each transmission provider to post the name of its chief compliance officer, to delete outdated references, and to require that transmission provider employees certify that they have completed standards of conduct training; and, revise the definition of affiliate regarding exempt wholesale generators.

January 9, 2007 - Interim Rule on Standards of Conduct for Transmission Providers (Order No. 690) (RM07-6-000)
FERC responded to the decision of the United States Court of Appeals for the District of Columbia vacating and remanding the standards of conduct rule, Order No. 2004, as it relates to interstate natural gas pipelines, in National Fuel Gas Supply Corporation v. FERC, 468 F.3d 831 (D.C. Cir. 2006) . The court objected to FERC’s expansion of the prior standards of conduct to include energy affiliates, and vacated the entire rule as it relates to natural gas pipelines. The interim rule repromulgated the standards of conduct that were not challenged before the court on an interim basis while the Commission considers how to respond to the court’s decision on a permanent basis.

February 16, 2006 - Interpretive Order Relating to the Standards of Conduct (RM01-10-005)
FERC clarified that Transmission Providers may communicate with affiliated nuclear power plants regarding certain matters related to the safety and reliability of the transmission system on the nuclear power plants, in order to comply with requirements of the Nuclear Regulatory Commission.

December 21, 2004- Order on Rehearing (of Order No. 2004-B) (Order No. 2004-C) (RM01-10-003)
FERC reaffirmed its Standards of Conduct rule, providing additional clarification to some of its provisions. Among the key issues addressed were: (1) The Commission said it would allow natural gas local distribution companies (LDCs) to participate in hedging related to on-system sales and still qualify for an exemption from energy affiliate status and (2) The Commission denied rehearing regarding exemptions for electric local distribution companies. Many electric distribution divisions or companies are not energy affiliates, however, because they do not engage in wholesale market activities, the Commission said.

August 2, 2004 - Order on Rehearing (of Order No. 2004-A) (Order No. 2004-B) (RM01-10-002)
FERC reaffirmwd its Standards of Conduct rule, providing additional clarification to some of its provisions. Among the key issues addressed, FERC: (1) allowed local distribution companies to participate in hedging related to on-system sales and still qualify for exemption from Energy Affiliate status; (2) clarified the duties of Transmission Function Employees and (3) provided additional clarification and granting partial rehearing regarding information to be posted on the Internet or OASIS;

April 16, 2004 - Order on Rehearing (Order No. 2004-A) (RM01-10-001)
FERC reaffirmed the need for the rule, noting that it protects customers in an environment where robust competition provides the economic incentives that may tempt a transmission provider to give its affiliates unduly preferential treatment-behavior that harms customers. The Commission also extended until September 1, 2004, the date for full implementation of the standards of conduct.

November 25, 2003 - Final Rule (Order No. 2004) (RM01-10-000)
FERC adopted a final rule that establishes standards of conduct that will apply uniformly to natural gas pipelines and transmitting public utilities. The standards of conduct govern the relationship between transmission providers and their energy affiliates. The final rule revised and conformed the previous gas and electric standards by broadening the definition of an energy affiliate covered by the standards of conduct and applying them uniformly to natural gas pipelines and public utility transmission providers.