|CFTC Proposed Order on ISO/RTO Exemption Request|
The CFTC issued a Proposed Order in response to a Petition filed by ISOs/RTOS requesting an exemption for certain transactions from the provisions of the Commodity Exchange Act and Commission regulations. Under the Proposed Order, "the Commission proposes to exempt certain Financial Transmission Rights (‘‘FTRs’’), Energy Transactions, Forward Capacity Transactions, and Reserve or Regulation Transactions (collectively, the ‘‘Transactions’’), each as defined below, pursuant to section 4(c)(6) of the Act.
. . .
The Proposed Exemption would be subject to certain conditions. First, all parties to the agreements, contracts or transactions that are covered by the Proposed Exemption must be either ‘‘appropriate persons,’’ as such term is defined in sections 4(c)(3)(A) through (J) of the Act, or ‘‘eligible contract participants,’’ as such term is defined in section 1a(18)(A) of the Act and in Commission regulation 1.3(m).
Second, the agreements, contracts or transactions that are covered by the Proposed Exemption must be offered or sold pursuant to a Petitioner’s tariff, which has been approved or permitted to take effect by:
(1) In the case of ERCOT, the PUCT or
(2) In the case of all other Petitioners, FERC.
Third, none of a Petitioner’s tariffs or other governing documents may include any requirement that the Petitioner notify a member prior to providing information to the Commission in response to a subpoena or other request for information or documentation.
Finally, information sharing arrangements that are satisfactory to the Commission between the Commission and FERC and between the Commission and PUCT must be in full force and effect." Comments on the Proposed Order are due September 27, 2012. The full text of the Proposed Order is available on the NEM Website.