The Federal Energy Regulatory Commission has revised its principal financial reporting forms for electric utilities and hydroelectric project licensees to improve transparency and provide FERC with greater detail needed to do its job.
FERC issued a final rule, RM08-5, Sept. 18, revising form Nos. 1, 1-F, and 3-Q. The rule requires public utilities and licensees to provide additional information on implementing formula rates and on affiliate transactions. It also eliminates non-jurisdictional filers from the filing requirements, modifies reporting thresholds, modifies instructions, and contains technical changes.
The final rule amends FERC’s reporting requirements for public utilities and licensees to file financial forms, reports, and statements, including the three forms. FERC expects the changes will improve the forms, reports, and statements to provide detailed information the commission needs to carry out its responsibilities under the Federal Power Act to ensure that rates remain just and reasonable.
Form No. 1 is an annual report filed by ï¿½majorï¿½ utilities that in each of the last three consecutive years had sales or transmission services exceeding 1 million MWh of total sales; 100 MWh of sales for resale; 500 MWh of delivered power exchanges; or 500 MWh of wheeling power for others.
Utilities and licensees with total sales in each of the last three consecutive years of 10,000 MWh or more are classified as ï¿½non-major,ï¿½ and file annual Form No. 1-F.
Form 3-Q is a quarterly financial report for electric utilities and licensees that also file the annual Form No. 1 or 1-F. Form 3-Q allows for timely evaluations of existing rates and improves the transparency and currency of financial information, FERC said.
FERC said the final rule complements the commission’s revisions to the reporting requirements for natural gas companies. It will become effective Jan. 1, 2009. Companies subject to the new requirements would file new Form 3-Q following the first calendar quarter of 2009, and new Form 1 and 1-F in April 2010 for calendar year 2009.