The filing deadline for FERC-566, the annual report of a public utility’s 20 largest customers, is due February 2, 2015.  This requirement applies to all retail suppliers that hold FERC market-based rate authorization. Much to the dismay of retail suppliers, this public filing includes a requirement to publish a list that discloses valuable customer information – any company, firm, or organization that is one of the 20 largest retail purchasers during any one of the three preceding calendar years. Each of these 20 largest purchasers must also be notified that it is on the list. On December 18, FERC proposed a rule change that, if adopted, would release several categories of public utilities from the requirement to file Form 566. FERC is also proposing to make changes that could lower the cost of compliance, and limit disclosure requirements. These proposed changes will benefit retail suppliers who hold FERC authorization.

What is FERC Form 566?

This is a list of an entity’s 20 largest purchasers of retail energy over the last three years that must be submitted by January 31 each year. (This year it is due February 2 because January 31 falls on a Saturday.) The purchasers on this list need to be notified of their status. Any entity with a tariff on file with FERC must file this form, even if they have no purchasers. FERC uses this information to analyze the potential for market abuse when individuals hold multiple positions with companies. This is a publicly available list with all retail purchaser’s names and addresses required.

Proposed Changes

FERC proposes entirely releasing the following entities from the FERC-566 filing requirement:

• Public utilities that have not made any reportable sales under FERC-566 in any of the three preceding years
• Exempt Wholesale Generators (EWG)
• RTO/ISOs

Under current regulations, even if no retail sales were made, public utilities are still required to submit a brief filing notifying the Commission of that fact.

FERC additionally proposes to eliminate the requirement for public utilities to identify residential customers by name and address. Only a reference to “Residential Customer” and a zip code would be required.

Why Are These Changes Happening?

For public utilities that do not have purchasers over the last three years, rather than requiring them to file a Form-566 stating as much, FERC stated that the form just simply should not be required. Further, RTO/ISOs generally sell energy at wholesale and EWGs sell energy at wholesale by definition. Since Form-566 requires reporting on retail sales, according to FERC, Form-566 should no longer be required for RTO/ISOs or EWGs.

Will This Impact My Business By Lowering Compliance Costs?

The answer is yes for retail suppliers, for example, who have residential customers on their list of 20 largest purchasers, or who do not yet have any customers. Rather than supplying the full address for residential customers, or having to file a Form-566 only to state that there have been no sales, this proposal would lessen the regulatory burden.

What’s Next?

Retail suppliers have an opportunity to submit comments supporting the proposal, or to offer suggested changes to FERC’s proposal. Comments are due March 2, 2015. The NOPR is available on FERC’s website: FERC NOPR: Revisions to Part 46 Filing Requirements.