FERC Market-Based Rate Tariff

FERC Market-Based Rate Tariff

Produces a filing-ready tariff authorizing wholesale sales of electric energy, capacity, and ancillary services at market-based rates under FERC jurisdiction.

Prerequisites

Collect before drafting:

1. Seller identity — legal name, state of incorporation, principal place of business
2. FERC identifiers — docket number, MBR authorization order date, assigned codes
3. Category status — Category 1 or 2 per FERC region (Northeast, Southeast, Southwest, Central, Northwest, California)
4. Authorization conditions — MW caps, affiliate restrictions, behavioral/​structural remedies, geographic limits
5. Asset inventory — generation (capacity, fuel, location), transmission, affiliate holdings
6. Organized market participation — ISO/​RTO memberships if applicable

Quick Start

1. Gather all prerequisites and the FERC authorization order
2. Draft sections in order below; populate the regional category matrix early — it drives mitigation and reporting sections
3. Flag all client-specific gaps with [INSERT] tags
4. Run the checks in Pitfalls before delivering

Output Structure

1. Preamble

• Seller legal name, organizational details, FERC identifiers
• Docket number, authorization order date; cite Order No. 697 as foundational authority
• Effective date: [DATE CERTAIN] or date of FERC acceptance, whichever is later
• Statement of wholesale sales authority acknowledging FERC oversight jurisdiction

2. Regulatory Compliance Commitments (18 CFR Part 35)

3. Market Power Mitigation & Constraints

• Generation capacity caps by market (MW limits per FERC order)
• Affiliate transaction restrictions (Standards of Conduct)
• Behavioral remedies (price caps) or structural remedies (divestitures) if imposed
• Geographic scope: each authorized balancing authority area, ISO, or RTO by full legal name
• Cross-reference authorization order factual findings supporting each limitation

4. Regional Category Status Matrix

• Category 1 — passed indicative screens; rebuttable presumption of no horizontal market power
• Category 2 — failed ≥1 screen; requires case-specific showing with enhanced reporting

5. Ongoing Reporting Obligations

Triggering events: mergers, acquisitions, reorganizations, affiliate changes, asset transactions affecting market power analysis. Format per 18 CFR § 35.42.

6. General Terms and Conditions

• Rate-setting — bilateral contracts or FERC-approved organized market; subject to filed rate doctrine
• Non-discrimination — consistent with MBR authority
• Dispute resolution — FERC complaint procedures (18 CFR Part 206); contractual arbitration where consistent with Commission jurisdiction
• Force majeure — notice and mitigation obligations
• Creditworthiness — collateral requirements on purchasers
• Termination/​amendment — tariff amendments via FERC eFiling

7. Certification and Filing Authorization

Include authorized officer certification block:

• Officer name, title, seller legal name
• Certifications: (1) authority to file, (2) truth/​completeness, (3) acceptance of FERC jurisdiction, (4) compliance commitment
• Signature block with date, phone, email
• Attorney/​authorized representative eFiling certification with bar number

Formatting Requirements

• Hierarchical section numbering (1.0, 1.1, 1.1.1)
• Seller name and tariff designation in headers/​footers on every page
• Complete citations using Bluebook or FERC conventions
• Target length: 12–25 pages

Pitfalls

• Category 2 sellers: must include case-specific market power showing; flag enhanced reporting prominently throughout
• Jurisdictional limits: no provision may restrict FERC regulatory authority or create barriers to competitive market entry
• Placeholder audit: deliver with cover memo identifying every [INSERT] tag and unusual conditions
• Verify before filing: Order No. 697 (2007), Order No. 697-A (2008), Order No. 860 (2019) — confirm current amendment status; verify 18 CFR § 35.42 text and check for intervening Commission orders