FERC Proposes Revisions to Regulations on Commencing the Assessment of Annual Charges

The Federal Energy Regulatory Commission ("FERC") proposed revisions to its regulations regarding when to commence assessing annual charges to hydropower licensees and exemptees. The proposed revisions concern licenses and exemptions authorizing unconstructed projects and new capacity. They do not apply to state or municipal entities.

Specifically, the FERC proposed to commence assessing annual charges two years from the effective date of a project's license, exemption or amendment authorizing new capacity, rather than on the date on which that project's construction starts. The proposed revisions will provide administrative efficiency and promote certainty among licensees, exemptees and FERC staff as to when such annual charges will commence.

Comments will be due 60 days after the rule proposal is published in the Federal Register.