ferc-market-based-rate-tariff

name	ferc-market-based-rate-tariff
language	en
description	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.
tags	["agreement","drafting","regulatory"]

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)

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