FERC-580, draft for 2022

form-580 2022 not fillable 10 26b.pdf

FERC Form 580, Interrogatory on Fuel and Energy Purchase Practices

FERC-580, draft for 2022

OMB: 1902-0137

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OMB No. 1902-0137
Expires 12/31/XXXX

Filing Deadline: October 31, 2022

Federal Energy Regulatory Commission
2022 FERC Form 580 Interrogatory on Fuel and Energy Purchase Practices
Title 18, U.S.C. 1001 makes it a crime for any person knowingly and willingly to make to any Agency or Department of the United States any false, fictitious or fraudulent
statements as to any matter within its jurisdiction. Refer to the general guidance and directions provided in the 2022 FERC Form 580 Desk Reference to complete the
interrogatory. Included herein is Appendix A Coal Contract Types and a Glossary of terms used. Terms highlighted in blue are defined in the glossary. The Paperwork
Reduction Act of 1995 (PRA) Statement: The PRA (44 U.S.C. 3501 et seq.) requires the Commission to inform you that a response to the FERC Form 580 is mandatory. The
Commission collects the responses pursuant to a congressional mandate “not less frequently than every 2 years... the Commission shall review, with respect to each public
utility, practices under any automatic adjustment clauses of such utility to insure efficient use of resources (including economical purchase and use of fuel and electric energy)
under such clauses”. The Commission collects Form 580 information every two years from public utilities subject to its jurisdiction that own or operate power plants that
generate a minimum of 50 MW. An agency may not conduct or sponsor, and a person is not required to respond to a collection of information unless it displays a currently valid
OMB Control Number. Public reporting burden for reviewing the instructions, completing, and filling out this form is estimated to be 103 hours per response. This form has been
assigned OMB Control Number 1902-0137. Send comments regarding the burden estimate or any other aspect of this form to DataClearance@FERC.gov, or to the Office of
the Executive Director, Information Clearance Officer, Federal Energy Regulatory Commission, 888 First St. NE,Washington, DC 20426.

1a Enter the exact legal name of the filing Utility (as company is registered with the Commission).
Utility name:

1b Identify the principal contact person for clarification and additional information concerning your Utility's fuel procurement.
Address
Name

street

suite

city

state

zip code

Telephone

Email address

1c Identify the principal contact person for clarification and additional information concerning your Utility’s energy purchases
(purchased power).
Address
Name

Page 1 of 11

street

suite

city

state

zip code

Telephone

Email address

2022 FERC Form 580

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2.

a. Provide the following information regarding non-transmission related wholesale automatic adjustment clauses (AACs) your Utility had
on file with the Commission during calendar years 2020 and 2021 Note: use the add and delete row buttons to manage information
entry.

Docket number under which rate schedule Is this AAC a
fuel
containing AAC through which costs were
Tariff volume
adjustment number containing
passed during 2020 and/or 2021 was
clause (FAC)
AAC
accepted for filing by FERC

Date rate schedule
Rate schedule
was first accepted
number containing
for filing by the First effective date of
AAC
rate schedule
Commission

If the Utility had no non-transmission-related wholesale AACs during the reporting years, check here:

Was rate schedule
superseded or
abandoned during
20202/2021 If so,
provide dates

Identify service
agreement within rate
schedule containing AAC

Add Row (+)

Delete Row (-)

b. If any of the Utility’s wholesale rate and/or service agreements containing an AAC listed in Question 2a, that was used during 2020
and/or 2021 was filed with the Commission before January 1, 1990, attach an electronic copy of it with this filing. List the documents
you are submitting below. Note: once this information is submitted electronically in a text-searchable format it will not be necessary to
submit it in future Form 580 filings. See: http://www.ferc.gov/docs-filing/elibrary/accept-file-formats.asp for listing of Commissionaccepted document types.
File name with extension

Document/ File
Description:

Add Row (+)

Delete Row (-)

NOTE: If the Utility for which you are filing did not have any rate/service schedules on file with the
Commission allowing the automatic adjustment of fuel and/or fuel-related items subject to 18 CFR
35.14 during 2020 - 2021, STOP HERE, you are finished. File your responses to questions 1 and 2
with the Commission. Otherwise, continue with the questions that follow.

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2022 FERC Form 580

OMB No. 1902-0137
Expires 12/31/XXXX

3.

If during the 2020 - 2021 period, the Utility had any contracts or agreements for the purchase of either energy or capacity under which all
or any portion of the purchase costs were passed through a fuel adjustment clause (FAC), for each purchase from a PURPA Qualifying
Facility (QF) or Independent Power Producer (IPP), provide the information requested in the non-shaded columns of the table below.
Provide the information separately for each reporting year 2020 and 2021 Do not report purchased power where none of the costs were
recovered through a FAC. Fill-in the non-shaded columns and either the "Only energy charges" columns OR "The total cost of the
purchase of economic power" columns, whichever apply.
If the Utility did not recover any purchased power costs through a FAC, check here:

Cost item/s recovered through a FAC

Only energy
charges

Year

Seller name

Purchase cost
($)

Annual
amount
recovered
through an
AAC ($)

Does the
Commissionaccepted FAC Was the total
used to recover
of such
this cost allow charges less
for automatic than the total
recovery of
avoided
purchased
variable
power costs?
costs?

The total cost of the purchase of economic power

Did the FAC used for
cost recovery include
Was economic Was the total
If the purchased
the system reserve
Was the
dispatch used
cost of
power was windcapacity criteria by
to determine
purchased
duration of the
generated, was the
which the system
purchased
whether the
power less
avoided cost
operator decides
charges were than the total power equal to
comparison done on
whether a reliability
or less than
less than
avoided
a contract-by-contract
avoided costs? variable costs? twelve months? purchase is required?
basis?

Add Row (+)

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2022 FERC Form 580

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4a

If emission allowance costs were incurred by the Utility in 2020 and/or 2021 and were recovered through
a FAC, provide the following information.

Dollar value of emission
allowance cost passed
through a FAC
Origin of emission allowance cost

2020

2021

Docket number, if any, of Commission
acceptance of emission allowance cost
recovery through a FAC

Date Commission accepted FAC
recovery of emission allowance
costs

Add Row (+)

Delete Row (-)

4b Were emission allowance costs recovered in any other method than through a FAC?
If yes, how were they recovered? Include specific Commission rate schedule and service agreement notations.

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2022 FERC Form 580

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5.

Provide the information requested below regarding the Utility's fuel procurement policies and practices in place during 2020 and/or 2021
for fuels whose costs were subject to 18 CFR 35.14. Note: Responses to this question may be filed as Privileged. To do so, skip this
question now and answer it via the Fuel Procurement Policies and Practices Privileged Addendum provided. Otherwise, answer it here and
your responses will be made public.
Are you filing the Question 5 Privileged Addendum?

a1. How often does Utility management review the fuel procurement process?
a2. When was the last review?

Select value:

a3. Who conducted the last review?
(Last, First, MI) & (Title)
a4. What was covered in the last review?
b1. Does the Utility have a policy on fuel inventory levels?
b2. Does the policy state under what circumstance/s fuel inventory is increased or decreased?
Utility has no policy on fuel inventory levels.
b3. When was the fuel inventory policy last reviewed, and
who last approved it?
b4. Who made the working decisions to change inventory
levels? (Last, First, MI) & (Title)
c. Describe any use by the Utility of systematic procedures for periodic market investigations of fuel costs and availability, particularly prior to renewal or
renegotiation of contracts.

d. Describe any environmental constraints which influenced the Utility's fuel purchase practices.

e. What quality characteristics were routinely specified in the Utility's fuel contracts?
Energy Content
Sulfur Content
Ash Content
Fuel

Moisture Content

Other

Coal
Oil
Natural gas
Other

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2022 ERC Form 580

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%

0%

>0-25%

25-50%

50-75%

75-100%

Coal
f. What percentage of the Utility's fuel was
purchased from utility-controlled (i.e.
affiliate) sources?

Oil
Natural gas
Other

g1. How were potential fuel suppliers qualified?

g2. What criteria are used to rank bidders?

g3. How were credit and performance ratings of potential fuel suppliers checked?

g4. Do you automatically select the lowest bidder?

Y

N

If not, what criteria are used for selection and negotiation of the fuel contract?

g5. Describe the procurement procedures used on your most recent fuel procurement contract for both:
- the purchase from a non-affiliated company

- the purchase from an affiliated company
h. Do the Utility's purchase policy practices differ for
associated companies?

Y

N

If so, what generally are the differences?

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2022 FERC Form 580

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Expires 12/31/XXXX

For each fuel supply contract, of longer than one year in duration, in force at any time during 2020 and/or 2021 where costs were
subject to 18 CFR 35.14, (including informal agreements with associated companies), provide the requested information. Report the
information individually for each contract, for each calendar year. [No response to any part of Question 6 for fuel oil no. 2 is necessary.]
Report all fuels consumed for electric power generation and thermal energy associated with the production of electricity. Information for
only coal, natural gas, and oil should be reported.

6.

Contract 1
a. Contract specifications

Contract type

Contract
ID /
number

Is
Contract Contract contract
Reporting signing expiration evergreen
year
?
date
date

Add Contract (+)

Use the add, or delete buttons to manage contract records

Coal (choose from list)

Gas supply
(choose from
list)

Fuel quantity
Gas transportation
(choose from
list)

Gas

Oil

(x103
mmbtu)

(x103
bbls)

Fuel quality

Coal
(x103
tons)

Gas
(Btu/ft3)

Pipeline
quality?
(Y/N)

Oil
(Btu/gal)

Del Contract (-)
Impurity content

Sulfur
Ash
Coal
content
content Moisture
(Btu/lb) (%weight) (%weight)
(%)

b. Delivered characteristics
Fuel origin

Primary
State /
Country
of Origin

1.

Type of purchase point

Fuel destination

Total fuel transportation
distance (mi.) from Utility's
receipt point to plant

Fuel quantity

Gas
(x103
mmbtu)

Oil
(x103 bbls)

Coal
(x103
tons)

Fuel quality
Coal (x103
tons) not
delivered by
end of
contract
year

Gas
(Btu/ft3)

Impurity content

Fuel cost (see desk
reference)

Actual weighted Actual weighted
average
average
Ash
fuel price paid
fuel price paid
content
FOB
FOB
Pipeline
Sulfur
(%
origin/year
plant/year
quality?
content
Oil
Coal
Moisture
(cents/mmBtu) (cents/mmBtu)
(Y/N) (Btu/gal) (Btu/lb) (%weight) weight)
(%)

Destination Plant:

Enter Plant Not Listed:

Use the add, delete and copy buttons to manage Delivery characteristics information for each Contract : Add Delivery (+)

Del Delivery (-)

Copy Delivery

c. Fuel and transportation contract affiliates
Name of any entity affiliated with the Utility that is involved
in the procurement or transportation of its fuel

Type of affiliation

Affiliated entity involvement with the Utility

Add Row (+)

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Delete Row (-)

2022 FERC Form 580

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7.

For each fuel supply contract, including informal agreements with associated or affiliated companies in force at any time during
2020 or 2021 WHERE CONTRACT SHORTFALL COSTS WERE PASSED THROUGH an FAC subject to 18 CFR 35.14, provide for
each contract separately the information requested below. Only report the information requested for shortfalls that occurred under your
contracts during reporting years 2020 or 2021 and that are not under dispute i.e. parties agree there was indeed a shortfall.

a) Cause of the shortfall [e.g., disruption in production,
fuel not meeting quality specifications, dispute over
contract provisions, a disruption in supplier's
transportation system or other (specify)].

b) Amount of shortfall costs
passed through the FAC

c) Utility or Supplier-caused?

d) Did contract contain
a provision for shortfall
consequences?

Add Row (+)

8.

For each fuel supply contract that was bought-out or bought-down, including informal agreements with associated or affiliated
companies in force at any time during 2020 or 2021 WHERE CONTRACT BUY-OUT AND/OR BUY-DOWN COSTS WERE PASSED
THROUGH an FAC subject to 18 CFR 35.14, provide for each contract separately the information requested below. Only report the
information requested for contract buy-downs and buy-outs that occurred under your contracts during reporting years 2020 or 2021 and
that are not under dispute i.e. parties agree there was indeed a shortfall.

a) Type of change (buy-down,
buy-out, renegotiation or
other)

b) Effective date of buy-out
or buy-down (mm/dd/yy).

c) Amount of any buy-out and buy-down costs
that were passed through the FAC ($xx).

d) Docket number of Commission waiver, if
any, allowing recovery of contract buy-down
and buy-out costs through the FAC.
Add Row (+)

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Delete Row (-)

Delete Row (-)

2022 FERC Form 580

OMB No. 1902-0137
Expires 12/31/XXXX

APPENDIX A
Coal Contract Types
1. Base Price plus Escalation
Different components of the price escalate (or de-escalate) as a function of changing economic
conditions (indices).
2. Price Renegotiation
The price is renegotiated at predetermined intervals, usually one year. This type of contract,
frequently known as an “EVERGREEN CONTRACT,” may also contain provisions for price
adjustments between renegotiations.
3. Price Tied to Market
Price tied to the price of coal being sold in a particular market. Product and market area are
defined in the contract. Contract may contain a "Most Favored Nations" clause, i.e., supplier will
not sell to any utility at a price lower than your utility is paying.
4. Cost-Plus Contract with a Fixed Fee Provision
Purchaser agrees to pay all producer costs plus a management fee. Some contracts provide for
payment of both a management fee and a profit. This contract has a Fixed Fee provision.
5. Cost-Plus Contract with an Incentive Fee Provision
Purchaser agrees to pay all producer costs plus a management fee. Some contracts provide for
payment of both a management fee and a profit. This contract has an Incentive Fee provision, i.e.,
a variable fee that is tied to various productivity and cost reduction incentives.
6. Fixed-Price Contract
Price is fixed over the life of the contract.

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2022 FERC Form 580

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Glossary
Term

Definition

Annual weighted average

An average taken over a 12-month period in which each item being averaged is multiplied by a
number (weight) based on the item's relative importance. The result is summed and the total is
divided by the sum of the weights.

Associated (affiliated) companies

Companies or persons that directly or indirectly through one or more intermediaries, control, or are
controlled by, or are under common control with the account company. (see 18 CFR Part 101 for
more information)

Automatic adjustment clause (AAC)

A provision of a rate schedule which provides for increases or decreases (or both), without prior
hearing, in rates reflecting increases or decreases (or both) in costs incurred by an electric utility.

Avoided variable costs

All identified and documented variable costs (costs that change or vary with usage, output or
production, e.g., fuel costs) that would have been incurred by the buyer had a particular purchase
not been made. Such costs include, but are not limited to, those associated with fuel, start-up,
shut-down or any purchases that would have been made in lieu of the purchase made.

Base price plus escalation

Different components of the price escalate (or de-escalate) as a function of changing economic
conditions (indices).

Contract buy-downs

Costs paid in compensation to suppliers for reducing the contract amount to below the minimum
requirement.

Contract buy-outs

Buy-out costs are compensation paid to suppliers for ending a contract before the previously
agreed upon contract expiration date.

Capacity

Electricity available to provide to a market during a defined period.

Commission cite

Reference to a Commission document/issuance.

Contract ID/ number

Unique contract identifier that the Utility uses internally to identify a contract.

Purchaser agrees to pay all producer costs plus a management fee. Some contracts provide for
Cost-plus contract with a fixed fee provision payment of both a management fee and a profit. This contract has a Fixed Fee provision.

Cost-plus contract with an incentive fee
provision

Purchaser agrees to pay all producer costs plus a management fee. Some contracts provide for
payment of both a management fee and a profit. This contract has an Incentive Fee provision, i.e.,
a variable fee that is tied to various productivity and cost reduction incentives.

Economic power

Power or energy purchased over a period of twelve months or less where the total cost of the
purchase is less than the buyer's total avoided variable cost.

Effective date of rate schedule

The date upon which service is approved by FERC to begin.

EIA

EIA is an acronym for Energy Information Administration.

EIA code

Unique identification number assigned by EIA to utilities and plants.

Emission allowance

an authorization by the Administrator under the Acid Rain Program to emit a specified limited
amount of sulfur dioxide during or after a specified calendar year (see 40 CFR Part 72)

Energy charge

That portion of the charge for electric service based upon the electric energy (kWh) consumed or
billed.

Evergreen contract

A contract that is renewed automatically or by notice from year to year until canceled by either
party.

Filing year

The year the data is collected.

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2022 FERC Form 580

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Term

Definition

Fixed-price contract

Price is fixed over the life of the contract.

FOB

FOB is an acronym for Free On Board. The term FOB (often seen as f.o.b.) is commonly used
when shipping goods to indicate who pays loading and transportation costs, and/or the point at
which the responsibility of the goods transfers from shipper to buyer. FOB origin is the term used
when the ownership/liability of goods passes from the seller to the buyer at the time the goods
leave the origin. FOB plant designates that the seller is responsible for the goods until the buyer
takes possession at the delivery point. This is important in determining who is responsible for lost
or damaged goods when they are in transit from the seller to the buyer. The buyer is responsible
when shipped FOB origin and the seller is responsible when shipped FOB delivery point.

Hourly economic dispatch

A forward-looking process by which the system personnel responsible for selecting the source(s) of
energy to be used by the company to meet its loads in the next hour are free to, and do in fact,
decide which available energy resources will be used and in what amount solely on the basis of the
relative projected energy costs of those resources for that hour with the goal of minimizing total
production cost for that hour.

Independent Power Producer (IPP)

A generator who provides either capacity or wholesale power to utilities. IPPs operate in the
franchised territories of host utilities and do not possess transmission facilities or sell electricity on
the retail market.

Price renegotiation

The price is renegotiated at predetermined intervals, usually one year. This type of contract,
frequently known as an “Evergreen Contract,” may also contain provisions for price adjustments
between renegotiations.

Price tied to market

Price tied to the price of coal being sold in a particular market. Product and market area are
defined in the contract. Contract may contain a "Most Favored Nations" clause, i.e., supplier will
not sell to any utility at a price lower than your utility is paying.

Qualifying Facility (QF)

A QF is a generating facility which meets the requirements for QF status under the Public Utility
Regulatory Policies Act of 1978 and 18 CFR Part 292 of the Commission's regulations, and which
has either self-certified with the Commission or has obtained FERC certification of QF status.
There are two types of QFs: cogeneration facilities and small power production facilities.

Rate schedule

The rates, charges, and provisions under which service is supplied to customers.

Receipt point

Where the Utility or Utility's contracted agent takes possession of the fuel.

Reliability purchase

An energy purchase made when a utility does not have sufficient generating capability to meet its
own load plus its planning reserve requirement.

Renewable Energy Credit (REC)

A tax credit offered by some states as an incentive for the installation and operation of renewable
energy systems such as solar or wind power.

Reporting year

The time period to which the data provided in the FERC Form 580 applies.

Service schedule

A document describing the kinds of services to be furnished to the identified parties at the rates
specified.

Shortfall

Contracted less delivered amount.

System reserve capacity criteria

Planning criteria used to determine when a reliability purchase is made.

Total avoided variable cost

All identified and documented variable costs that would have been incurred by the buyer had a
particular purchase not been made.

Utility name

The exact legal name of the Utility

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2022 FERC Form 580


File Typeapplication/pdf
File TitleFERC Form 580
AuthorAccountsPRO Inc.
File Modified2021-11-02
File Created2019-11-14

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