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:
- Seller identity — legal name, state of incorporation, principal place of business
- FERC identifiers — docket number, MBR authorization order date, assigned codes
- Category status — Category 1 or 2 per FERC region (Northeast, Southeast, Southwest, Central, Northwest, California)
- Authorization conditions — MW caps, affiliate restrictions, behavioral/structural remedies, geographic limits
- Asset inventory — generation (capacity, fuel, location), transmission, affiliate holdings
- Organized market participation — ISO/RTO memberships if applicable
Quick Start
- Gather all prerequisites and the FERC authorization order
- Draft sections in order below; populate the regional category matrix early — it drives mitigation and reporting sections
- Flag all client-specific gaps with
[INSERT] tags
- 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)
| Obligation |
Trigger |
Timeframe |
| Maintain category status |
Ongoing |
Continuous |
| Change-in-status notification |
Ownership/asset/affiliate changes |
30 days |
| Horizontal market power screens |
Delivered price test + pivotal supplier |
Ongoing |
| Vertical market power compliance |
Transmission/fuel control concerns |
Ongoing |
| Affiliate codes of conduct |
Per authorization order |
Per Commission order |
| Organized market participation |
If required by authorization |
Per RTO/ISO tariff |
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
| FERC Region |
Category |
Basis |
Special Conditions |
| Northeast |
[1/2] |
[Screen results / case-specific] |
[If any] |
| Southeast |
[1/2] |
|
|
| Southwest |
[1/2] |
|
|
| Central |
[1/2] |
|
|
| Northwest |
[1/2] |
|
|
| California |
[1/2] |
|
|
- 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
| Filing |
System |
Frequency |
| Market power analysis update |
FERC eFiling |
Triennial or within 30 days of material change |
| Electric Quarterly Report |
FERC EQR |
Within 30 days of quarter end |
| Change-in-status report |
FERC eFiling |
Within 30 days of triggering event |
| Asset appendix update |
FERC eFiling |
Upon asset acquisition/disposition |
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
1---2name: ferc-market-based-rate-tariff3description: Drafts eTariff-ready FERC Market-Based Rate Tariffs for wholesale electric energy, capacity, and ancillary services sales. Use when preparing MBR tariff filings, structuring market-based rate authority documentation, or drafting wholesale power tariffs for FERC proceedings. Covers Order Nos. 697/697-A/860, Category 1/2 analysis, 18 CFR Part 35 formatting, and EQR/change-in-status reporting.4---5
6# FERC Market-Based Rate Tariff
7
8Produces a filing-ready tariff authorizing wholesale sales of electric energy, capacity, and ancillary services at market-based rates under FERC jurisdiction.
9
10## Prerequisites
11
12Collect before drafting:
13
141. **Seller identity** — legal name, state of incorporation, principal place of business
152. **FERC identifiers** — docket number, MBR authorization order date, assigned codes
163. **Category status** — Category 1 or 2 per FERC region (Northeast, Southeast, Southwest, Central, Northwest, California)
174. **Authorization conditions** — MW caps, affiliate restrictions, behavioral/structural remedies, geographic limits
185. **Asset inventory** — generation (capacity, fuel, location), transmission, affiliate holdings
196. **Organized market participation** — ISO/RTO memberships if applicable
20
21## Quick Start
22
231. Gather all prerequisites and the FERC authorization order
242. Draft sections in order below; populate the regional category matrix early — it drives mitigation and reporting sections
253. Flag all client-specific gaps with `[INSERT]` tags
264. Run the checks in Pitfalls before delivering
27
28## Output Structure
29
30### 1. Preamble
31- Seller legal name, organizational details, FERC identifiers
32- Docket number, authorization order date; cite Order No. 697 as foundational authority
33- Effective date: `[DATE CERTAIN]` or date of FERC acceptance, whichever is later
34- Statement of wholesale sales authority acknowledging FERC oversight jurisdiction
35
36### 2. Regulatory Compliance Commitments (18 CFR Part 35)
37
38| Obligation | Trigger | Timeframe |
39|---|---|---|
40| Maintain category status | Ongoing | Continuous |
41| Change-in-status notification | Ownership/asset/affiliate changes | 30 days |
42| Horizontal market power screens | Delivered price test + pivotal supplier | Ongoing |
43| Vertical market power compliance | Transmission/fuel control concerns | Ongoing |
44| Affiliate codes of conduct | Per authorization order | Per Commission order |
45| Organized market participation | If required by authorization | Per RTO/ISO tariff |
46
47### 3. Market Power Mitigation & Constraints
48- Generation capacity caps by market (MW limits per FERC order)
49- Affiliate transaction restrictions (Standards of Conduct)
50- Behavioral remedies (price caps) or structural remedies (divestitures) if imposed
51- Geographic scope: each authorized balancing authority area, ISO, or RTO by full legal name
52- Cross-reference authorization order factual findings supporting each limitation
53
54### 4. Regional Category Status Matrix
55
56| FERC Region | Category | Basis | Special Conditions |
57|---|---|---|---|
58| Northeast | [1/2] | [Screen results / case-specific] | [If any] |
59| Southeast | [1/2] | | |
60| Southwest | [1/2] | | |
61| Central | [1/2] | | |
62| Northwest | [1/2] | | |
63| California | [1/2] | | |
64
65- **Category 1** — passed indicative screens; rebuttable presumption of no horizontal market power
66- **Category 2** — failed ≥1 screen; requires case-specific showing with enhanced reporting
67
68### 5. Ongoing Reporting Obligations
69
70| Filing | System | Frequency |
71|---|---|---|
72| Market power analysis update | FERC eFiling | Triennial or within 30 days of material change |
73| Electric Quarterly Report | FERC EQR | Within 30 days of quarter end |
74| Change-in-status report | FERC eFiling | Within 30 days of triggering event |
75| Asset appendix update | FERC eFiling | Upon asset acquisition/disposition |
76
77Triggering events: mergers, acquisitions, reorganizations, affiliate changes, asset transactions affecting market power analysis. Format per 18 CFR § 35.42.
78
79### 6. General Terms and Conditions
80- **Rate-setting** — bilateral contracts or FERC-approved organized market; subject to filed rate doctrine
81- **Non-discrimination** — consistent with MBR authority
82- **Dispute resolution** — FERC complaint procedures (18 CFR Part 206); contractual arbitration where consistent with Commission jurisdiction
83- **Force majeure** — notice and mitigation obligations
84- **Creditworthiness** — collateral requirements on purchasers
85- **Termination/amendment** — tariff amendments via FERC eFiling
86
87### 7. Certification and Filing Authorization
88
89Include authorized officer certification block:
90- Officer name, title, seller legal name
91- Certifications: (1) authority to file, (2) truth/completeness, (3) acceptance of FERC jurisdiction, (4) compliance commitment
92- Signature block with date, phone, email
93- Attorney/authorized representative eFiling certification with bar number
94
95## Formatting Requirements
96
97- Hierarchical section numbering (1.0, 1.1, 1.1.1)
98- Seller name and tariff designation in headers/footers on every page
99- Complete citations using Bluebook or FERC conventions
100- Target length: 12–25 pages
101
102## Pitfalls
103
104- **Category 2 sellers**: must include case-specific market power showing; flag enhanced reporting prominently throughout
105- **Jurisdictional limits**: no provision may restrict FERC regulatory authority or create barriers to competitive market entry
106- **Placeholder audit**: deliver with cover memo identifying every `[INSERT]` tag and unusual conditions
107- **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
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