FERC Interlocking Directorate Filings Due April 30
Two important annual reporting requirements of the Federal Energy Regulatory Commission ("FERC") have deadlines that are quickly approaching, and entities should review the criteria associated with these reporting requirements to determine if these reports must be filed.
First, FERC's relatively new reporting requirement for annual natural gas purchases and sales, referred to as FERC Form No. 552, is required to be submitted to FERC by July 1, 2010. This due date reflects an extension of the normal due date for this Form that FERC recently granted. In addition, FERC will hold a Technical Conference on March 25, 2010 to discuss the industry's experience with FERC Form No. 552 in the first reporting year. In 2009, FERC Form No. 552 obligated many companies that were not subject to prior FERC reporting requirements to submit data surrounding their purchases and sales of gas to FERC each calendar year. FERC Form No. 552 is very expansive and applies to most entities that purchase or sell gas in interstate commerce. The scope of the information required by FERC Form No. 552 increases if natural gas sales or purchases exceed 2.2 million MMBtus for the calendar year. The wide net FERC has cast in establishing the criteria of FERC Form No. 552 means that many entities will be subject to FERC's reporting requirements and obligations.
Second, FERC's annual Form No. 561 Interlocking Directorate filings are due April 30, 2010. FERC Form No. 561 requires all persons that have authorization from FERC to serve in interlocking positions as an officer or director of: (1) more than one public utility; (2) a public utility and an entity authorized by law to underwrite or market securities of a public utility; or (3) a public utility and a company supplying electrical equipment to that public utility company, among other positions, to make annual informational filings with FERC indicating the positions they hold. FERC also generally requires individuals seeking to hold interlocking directorate positions of the type described above to obtain regulatory authorization prior to assuming the interlocking positions. Through its enforcement of these requirements, FERC has gone so far as to require individuals to resign from their interlocking positions to the extent they fail to follow FERC's procedures.