In accordance with 5 CFR 1320.8(d), this information collection is withdrawn because the agency did not publish an accompanying 60-day notice in the Federal Register. FERC sought approval for this request separately as a emergency clearance pursuant to 5 CFR 1320.13.
Inventory as of this Action
Requested
Previously Approved
11/30/2022
11/30/2022
11/30/2022
244
0
244
39,284
0
39,284
0
0
0
The Form No. 6 is designed to collect financial and operational information from oil pipeline companies subject to the jurisdiction of the Commission.
PL19-4. On 3/21/2019, FERC issued a Notice of Inquiry (NOI) seeking information and stakeholder views to help the Commission explore whether, and if so how, it should modify its policies concerning the determination of the return on equity (ROE) to be used in designing jurisdictional rates charged by public utilities. The Commission also sought comment on whether any changes to its policies concerning public utility ROEs should be applied to interstate natural gas and oil pipelines. On November 21, 2019, the Commission issued Opinion No. 569 establishing a revised methodology for determining just and reasonable base ROEs for public utilities under the Federal Power Act (FPA). Concurrently with the issuance of this Policy Statement, the Commission is issuing Opinion No. 569-A adopting changes to the base ROE methodology established in Opinion No. 569.
As explained below, we revise our policy for analyzing interstate natural gas and oil pipeline ROEs to adopt the methodology established for public utilities in Opinion Nos. 569 and 569-A, with certain exceptions to account for the statutory, operational, organizational and competitive differences among the industries. Specifically, we will determine just and reasonable natural gas and oil pipeline ROEs by averaging the results of Discounted Cash Flow model (DCF) and Capital Asset Pricing Model (CAPM) analyses, according equal weight to both models. In contrast to our methodology for public utilities, we retain the existing two-thirds/one-third weighting for the short-term and long-term growth projections in the DCF and will not use the risk premium model discussed in Opinion No. 569 and modified in Opinion No. 569-A (Risk Premium). In addition, we clarify our policies governing the formation of proxy groups and the treatment of outliers in natural gas and oil pipeline proceedings. Finally, as discussed below, we encourage oil pipelines to file updated FERC Form No. 6, page 700 data for 2019 to reflect the revised ROE policy established herein.
US Code:
49 USC 20
Name of Law: Interstate Commerce Act
Program Changes. These are one-time voluntary program changes expected to be completed in Year 1. The Commission is requesting that the oil pipeline industry voluntarily update the ROE and total cost-of-service information on page 700 of FERC Form No. 6 for 2019 to reflect the policy changes adopted in the ROE Policy Statement. The total burden to the oil pipeline industry is estimated to be less than $4 million for the one-time filing. A review of the page 700s for 2019 filed by oil pipelines shows total revenues of nearly $23 billion and an average real ROE of 11%. The effect of a 50 basis point change in ROE upon the 2020 five-year review may result in a Year 1 change in total industry revenues of approximately $300 million. As the Commission recognized in the ROE Policy Statement, reflecting the ROE policy changes in page 700 data for 2019 may help the Commission better estimate industry-wide cost changes for purposes of the five-year review.
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.
Form FERC Form NO. 6 FERC Form 6 & ROE--PL19-4 (one-time refiling of page 700, in Year 1)
6_PL19-4_5-26-2020final.docx
6_PL19-4_FedReg_2020-11406.pdf
FERC Form 6 & ROE--PL19-4 (one-time refiling of page 700, in Year 1)