October 21, 2021

Volume XI, Number 294

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FERC Proposes Changes to EQR to Improve Accuracy in Reporting Simultaneous Exchanges

On March 15, FERC issued a Notice of Proposed Rulemaking to revise the Electric Quarterly Report (EQR) Data Dictionary so parties can more accurately report simultaneous exchanges.[1] FERC proposed adding “Simultaneous Exchange” to the list of available Product Names in the EQR to enable parties to differentiate simultaneous exchange transactions from transmission service. FERC recently expressed concerns that certain simultaneous exchange transactions could resemble transmission service without the reservation of service on the transmission system. In both situations, a party places power onto the power grid at a delivery point and simultaneously receives power at another point. However, a simultaneous exchange occurs when a pair of wholesale power transactions between the same counterparties are arranged as part of the same negotiations and involve overlapping delivery periods and volumes of power purchased and sold.

FERC proposed the four following amendments:

  • The Product Name “Simultaneous Exchange” should be added to the EQR Data Dictionary.
  • Reporting parties should report only the overlapping portions of a simultaneous exchange transaction as a simultaneous exchange. The non-overlapping portions should be reported as a power sale.
  • The price reported for a simultaneous exchange should be the difference between the prices at the delivery and receipt points (the price spread), instead of the nominal prices assigned to the power.
  • Parties entering into a simultaneous exchange transaction should report both the delivery and receipt points.

In addition to improving the accuracy of reporting simultaneous exchanges, FERC expects the proposed amendments will advance its objectives behind establishing the EQR reporting requirements, which include “providing greater price transparency, promoting competition, instilling confidence in the fairness of the markets, and providing a better means to detect and discourage discriminatory practices.”[2]

Comments on the proposed amendments are due 60 days after publication in the Federal Register.


[1] Revised Public Utility Filing Requirements for Electric Quarterly Reports, 138 FERC ¶ 61,191 (Mar. 15, 2012).

[2] Id. at ¶ 4.

Copyright © 2021 by Morgan, Lewis & Bockius LLP. All Rights Reserved.National Law Review, Volume II, Number 89
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About this Author

Stephen Spina, Morgan Lewis, Energy attorney
Partner

Stephen M. Spina represents electric utilities and other electric industry participants before the Federal Energy Regulatory Commission (FERC) in restructuring, market investigations, and Federal Power Act regulatory matters. He advises electric utilities on issues relating to market pricing, transmission, reliability standards compliance, rate matters, and participation in regional transmission organizations, including capacity and energy market issues. His representation also extends to audits and investigations before FERC’s Office of Enforcement, as well as...

202-739-5958
John McGrane, Morgan Lewis, Energy attorney
Partner

John D. McGrane brings more than 35 years of experience to advising electric utilities and other participants in the electric power industry on electric regulation and transactions. John has experience in electric power and transmission issues, and is particularly active in audits and investigations by the US Federal Energy Regulatory Commission (FERC) and the North American Electric Reliability Corporation relating to electric regulation and reliability.

202-739-5621
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