New FERC Financial Reporting Requirements Begin April 2004

In a final rule adopted February 11, 2004, the Federal Energy Regulatory Commission ("FERC") now requires quarterly reporting of financial and operating data by electric public utilities, natural gas companies, and pipeline companies. The first of these new quarterly reports will be due in July 2004. The sweeping new reporting requirements for FERC-regulated entities, which also include changes to the required information in existing annual reports due in April 2004, are to improve the usefulness and transparency of financial information provided to FERC. The final rule drops some of the new reporting requirements proposed in June 2003 and modifies others.

FERC asserted in its June 2003 proposal that the rulemaking would help it achieve the goal of vigilant oversight by providing the commission with more timely, relevant, reliable, and understandable financial information from major participants in the energy market. For background of the proposal and more discussion of FERC’s