FERC Revises Interlocking Officer and Director Regulations
This article discusses Order No. 856, which eases somewhat the requirements for when an individual must file an application for public utility-bank interlocks, or report a notice of change for certain pre-authorized positions. However, holders of such positions may remain subject to the Federal Energy Regulatory Commission Form No. 561 annual filing requirements. Additionally, while FERC will no longer automatically deny late-filed applications, applicants are reminded to be attentive to their obligation to file applications on a timely basis and to make every effort to ensure compliance with Federal Power Act Section 305(b).
Section 305 of the Federal Power Act (“FPA”) generally requires prior approval from the Federal Energy Regulatory Commission (“FERC” or “the Commission”) before an individual may serve as an officer or director of: (1) more than one public utility; (2) a public utility and certain entities authorized by law to underwrite or participate in the marketing of public utility securities; or (3) a public utility and a company that supplies electrical equipment to that public utility.
Parts 45 and 46 of the Commission’s regulations implement the provisions of Section 305. On February 21, 2019, the Commission announced revisions to those regulations, which largely track those outlined in the Notice of Proposed Rulemaking (“NOPR”) issued last July.
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“FERC Revises Interlocking Officer and Director Regulations,” by Mark R. Haskell, George D. Billinson, and Lamiya N. Rahman was published in the June 2019 edition of Pratt’s Energy Law Report (Vo. 19, No. 6), an A.S. Pratt Publication, LexisNexis. Reprinted with permission.
This article was first published as a Blank Rome Energy advisory in March 2019.