Power & Pipes

FERC, CFTC, and State Energy Law Developments

The Federal Energy Regulatory Commission (Commission) issued an order on September 22, 2022, informing sellers with market-based rate (MBR) authorization that have not complied with Order No. 860’s requirements to submit data describing their ownership and affiliates that their MBR authorizations will be revoked unless they come into compliance within 15 days. Sellers who have not complied with Order No. 860 will need to submit this data, known as a “baseline submission,” into the Commission’s MBR relational database no later than October 7, 2022.

Order No. 860, which was issued in July 2019, restructured the manner in which the Commission collects certain data for MBR purposes. Order No. 860 required all sellers holding MBR authorization to submit baseline filings to the Commission’s MBR relational database by February 1, 2022.

These baseline filings require sellers holding MBR authorization (as well as sellers seeking to hold MBR authorization) to provide information including a seller’s ultimate upstream affiliate(s), generation assets held by the seller or its affiliates without MBR authorization, long-term firm purchase and sales, and other asset appendix information. Sellers are also required to update the relational database by the 15th of the month following a change and to make changes in status filings on a quarterly basis, if applicable.

Sellers who hold or seek to hold MBR authorization should be mindful of the compliance requirements imposed by Order No. 860, particularly in light of the Commission’s September 22 order indicating its intent to revoke MBR authority for noncompliance therewith.