| 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:
- 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
