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.4tags:5 - agreement6 - drafting7 - regulatory8---910# FERC Market-Based Rate Tariff1112Produces a filing-ready tariff authorizing wholesale sales of electric energy, capacity, and ancillary services at market-based rates under FERC jurisdiction.1314## Prerequisites1516Collect before drafting:17181. **Seller identity** — legal name, state of incorporation, principal place of business192. **FERC identifiers** — docket number, MBR authorization order date, assigned codes203. **Category status** — Category 1 or 2 per FERC region (Northeast, Southeast, Southwest, Central, Northwest, California)214. **Authorization conditions** — MW caps, affiliate restrictions, behavioral/structural remedies, geographic limits225. **Asset inventory** — generation (capacity, fuel, location), transmission, affiliate holdings236. **Organized market participation** — ISO/RTO memberships if applicable2425## Quick Start26271. Gather all prerequisites and the FERC authorization order282. Draft sections in order below; populate the regional category matrix early — it drives mitigation and reporting sections293. Flag all client-specific gaps with `[INSERT]` tags304. Run the checks in Pitfalls before delivering3132## Output Structure3334### 1. Preamble35- Seller legal name, organizational details, FERC identifiers36- Docket number, authorization order date; cite Order No. 697 as foundational authority37- Effective date: `[DATE CERTAIN]` or date of FERC acceptance, whichever is later38- Statement of wholesale sales authority acknowledging FERC oversight jurisdiction3940### 2. Regulatory Compliance Commitments (18 CFR Part 35)4142| Obligation | Trigger | Timeframe |43|---|---|---|44| Maintain category status | Ongoing | Continuous |45| Change-in-status notification | Ownership/asset/affiliate changes | 30 days |46| Horizontal market power screens | Delivered price test + pivotal supplier | Ongoing |47| Vertical market power compliance | Transmission/fuel control concerns | Ongoing |48| Affiliate codes of conduct | Per authorization order | Per Commission order |49| Organized market participation | If required by authorization | Per RTO/ISO tariff |5051### 3. Market Power Mitigation & Constraints52- Generation capacity caps by market (MW limits per FERC order)53- Affiliate transaction restrictions (Standards of Conduct)54- Behavioral remedies (price caps) or structural remedies (divestitures) if imposed55- Geographic scope: each authorized balancing authority area, ISO, or RTO by full legal name56- Cross-reference authorization order factual findings supporting each limitation5758### 4. Regional Category Status Matrix5960| FERC Region | Category | Basis | Special Conditions |61|---|---|---|---|62| Northeast | [1/2] | [Screen results / case-specific] | [If any] |63| Southeast | [1/2] | | |64| Southwest | [1/2] | | |65| Central | [1/2] | | |66| Northwest | [1/2] | | |67| California | [1/2] | | |6869- **Category 1** — passed indicative screens; rebuttable presumption of no horizontal market power70- **Category 2** — failed ≥1 screen; requires case-specific showing with enhanced reporting7172### 5. Ongoing Reporting Obligations7374| Filing | System | Frequency |75|---|---|---|76| Market power analysis update | FERC eFiling | Triennial or within 30 days of material change |77| Electric Quarterly Report | FERC EQR | Within 30 days of quarter end |78| Change-in-status report | FERC eFiling | Within 30 days of triggering event |79| Asset appendix update | FERC eFiling | Upon asset acquisition/disposition |8081Triggering events: mergers, acquisitions, reorganizations, affiliate changes, asset transactions affecting market power analysis. Format per 18 CFR § 35.42.8283### 6. General Terms and Conditions84- **Rate-setting** — bilateral contracts or FERC-approved organized market; subject to filed rate doctrine85- **Non-discrimination** — consistent with MBR authority86- **Dispute resolution** — FERC complaint procedures (18 CFR Part 206); contractual arbitration where consistent with Commission jurisdiction87- **Force majeure** — notice and mitigation obligations88- **Creditworthiness** — collateral requirements on purchasers89- **Termination/amendment** — tariff amendments via FERC eFiling9091### 7. Certification and Filing Authorization9293Include authorized officer certification block:94- Officer name, title, seller legal name95- Certifications: (1) authority to file, (2) truth/completeness, (3) acceptance of FERC jurisdiction, (4) compliance commitment96- Signature block with date, phone, email97- Attorney/authorized representative eFiling certification with bar number9899## Formatting Requirements100101- Hierarchical section numbering (1.0, 1.1, 1.1.1)102- Seller name and tariff designation in headers/footers on every page103- Complete citations using Bluebook or FERC conventions104- Target length: 12–25 pages105106## Pitfalls107108- **Category 2 sellers**: must include case-specific market power showing; flag enhanced reporting prominently throughout109- **Jurisdictional limits**: no provision may restrict FERC regulatory authority or create barriers to competitive market entry110- **Placeholder audit**: deliver with cover memo identifying every `[INSERT]` tag and unusual conditions111- **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
lev-os