FERC-546, Certificated Rate Filings: Gas Pipeline Rates
Extension without change of a currently approved collection
No
Regular
02/15/2022
Requested
Previously Approved
36 Months From Approved
05/31/2022
75
75
37,483
37,500
0
0
The following list outlines four circumstances under which the FERC-546 information collection requirements for certificated rates must be met:
A company decides to:
1. Construct and operate a new jurisdictional pipeline;
2. Expand its certificated pipeline capacity by constructing a lateral pipeline, adding compression or providing storage at incremental or cost-based rates;
3. Build a new liquefied natural gas facility; or
4. Provide gas storage and negotiate market based rates.
Under the circumstances 1-3, the company must file its FERC-546 cost data along with an application for a certificate of public convenience and necessity under the statutory requirements of NGA Section 7(c). For circumstance 4, the company must file its FERC-546 information with an application under NGA Section 4(f)5.
The FERC-546 includes the following:
• Supporting information for proposed initial rates (e.g. cost-based, market based, incremental rates);
• Pro forma tariffs;
• Motions to put proposed initial rates into effect subject to Commission findings on the related certificate;
• Unexecuted precedent agreements; and
Section 16 of the NGA grants the Commission administrative powers including the ability to define accounting, technical and trade terms, prescribe forms, statements, declarations or reports and to prescribe rules and regulations.
Section 403 authorizes the Commission, as delegated through the Department of Energy Organization Act, to establish and review priorities for curtailments under the Natural Gas Act.
The Commission reviews the FERC-546 materials in order to approve rates and tariff changes associated with an application for a certificate under NGA Section 7(c). Additionally, the Commission reviews FERC-546 materials in 4(f) storage applications to evaluate market power and decide whether to grant, deny, or condition market based rate authority for the applicant. The Commission also uses the FERC-546 information to monitor jurisdictional transportation, natural gas storage, and unbundled sales activities of interstate natural gas pipelines and Hinshaw pipelines. In addition to fulfilling the Commission’s obligations under the NGA, the FERC-546 enables the Commission to monitor activities, evaluate transactions, ensure competitiveness, and improved efficiency of the gas industry's operations. In summary, the Commission uses the FERC-546 information to:
• Ensure adequate customer protections under section 4(f) of the NGA;
• Review rate and tariff changes by natural gas companies for the transportation of natural gas and natural gas storage services;
• Provide general industry oversight; and
• Supplement documentation during its audits process.
Failure to collect this information would prevent the Commission from being able to monitor and evaluate transactions and operations of interstate pipelines and perform its regulatory functions.
The annual burden hours decreased from 37500 to 37483 due to better accuracy in the estimate but there was a decrease in the number of respondents from 51 to 47 from the last renewal as a result of declining demand for natural gas due to a shift in domestic policies away from fossil fuel as well as increasing awareness in greenhouse gas mitigation. Another factor that has contributed to a decline in natural gas projects is the COVID-19 pandemic. The pandemic has caused pipeline companies to delay or stall many proposed pipeline projects. Thus, the public reporting burden has decreased for this information collection. However, the Commission made no program changes regarding burden imposed upon respondents and the FERC-546 requirements remain unchanged from previously approved clearance packages.
$143,806
No
No
No
No
No
No
No
Tracy DeMarr 202 502-8187
No
On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).
The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control number;
If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.
FERC-546 30 day notice (published) 1.28.22.pdf
FERC-546 30-day notice (Issued) 1.21.22.docx
Certificated Rate Filings: Gas Pipeline Rates