Commonwealth Edison Company; Order Establishing Paper Hearing Procedures and Establishing Trial-Type Hearing and Settlement Judge Procedures

Published date28 February 2024
Record Number2024-04055
Citation89 FR 14643
CourtEnergy Department,Federal Energy Regulatory Commission
SectionNotices
Federal Register, Volume 89 Issue 40 (Wednesday, February 28, 2024)
[Federal Register Volume 89, Number 40 (Wednesday, February 28, 2024)]
                [Notices]
                [Pages 14643-14646]
                From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
                [FR Doc No: 2024-04055]
                [[Page 14643]]
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                DEPARTMENT OF ENERGY
                Federal Energy Regulatory Commission
                [Docket No. FA21-5-000]
                Commonwealth Edison Company; Order Establishing Paper Hearing
                Procedures and Establishing Trial-Type Hearing and Settlement Judge
                Procedures
                 1. On August 28, 2023, pursuant to Sec. 41.2 of the Commission's
                regulations,\1\ Commonwealth Edison Company (ComEd) filed a request for
                Commission review of certain findings and recommendations in the July
                27, 2023 order \2\ and accompanying audit report \3\ issued in this
                docket by the Director of the Office of Enforcement (Enforcement) under
                authority delegated to the Director by Sec. 375.311 of the Commission
                regulations.\4\ In accordance with Sec. 41.2 of the Commission's
                regulations,\5\ ComEd notified the Commission that it requested review
                of two contested issues by means of a shortened paper hearing procedure
                and one contested issue by means of a trial-type hearing. ComEd also
                requested settlement judge procedures concerning the one contested
                issue for which it requested a trial-type hearing.
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                 \1\ 18 CFR 41.2 (2022).
                 \2\ Commonwealth Edison Co., Docket No. FA21-5-000 (July 27,
                2023) (delegated order) (hereafter, Delegated Order).
                 \3\ Audit of Commonwealth Edison Company's compliance with its
                approved terms, rates, and conditions of its wholesale transmission
                formula rate; accounting requirements of the Uniform System of
                Accounts Prescribed for Public Utilities and Licensees under 18 CFR
                part 101; reporting requirements of the FERC Form No. 1, Annual
                Report of Major Electric Utilities, Licensees and Others, under 18
                CFR 141.1; and, requirements in Preservation of Records of Public
                Utilities and Licensees under 18 CFR part 125, Commission Office of
                Enforcement Division of Audits and Accounting (July 27, 2023) (Audit
                Report).
                 \4\ 18 CFR 375.311 (2022).
                 \5\ 18 CFR 41.2.
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                 2. In this order, pursuant to Sec. 41.3 of the Commission's
                regulations,\6\ we direct the commencement of a paper hearing and
                establish paper hearing procedures for two contested issues, as
                requested. Pursuant to Sec. 41.7 of the Commission's regulations,\7\
                we direct the commencement of a trial-type hearing and establish trial-
                type hearing procedures for one contested issue, as requested. Pursuant
                to Sec. 385.601 of the Commission's regulations,\8\ we also establish
                settlement judge procedures for the one contested issue set for trial-
                type hearing, as requested.
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                 \6\ 18 CFR 41.3 (2022).
                 \7\ 18 CFR 41.7 (2022).
                 \8\ 18 CFR 385.601 (2022).
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                I. Audit Report
                 3. The Audit Report summarizes the review by Enforcement's Division
                of Audits and Accounting (DAA), first announced in this docket on April
                21, 2021, of ComEd's compliance with: (1) the approved terms, rates,
                and conditions of its transmission formula rate mechanism as provided
                in Attachment H-13A of the PJM Interconnection, L.L.C. Open Access
                Transmission Tariff; (2) the accounting requirements of the Uniform
                System of Accounts Prescribed for Public Utilities and Licensees under
                18 CFR part 101 (2022) ; (3) the reporting requirements of the FERC
                Form No. 1, Annual Report of Major Electric Utilities, Licensees and
                Others, under 18 CFR 141.1 (2022); and (4) the requirements in
                Preservation of Records of Public Utilities and Licensees under 18 CFR
                part 125 (2022).\9\ The Audit Report contained 11 findings and 61
                recommendations that require ComEd to take corrective action. The audit
                covered the period January 1, 2017 through August 31, 2022.
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                 \9\ Delegated Order at P 2.
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                 4. As described in the Delegated Order accompanying the Audit
                Report, ComEd notified DAA on June 29, 2023 that ComEd disagreed with
                and expected to contest DAA's findings and recommendations pertaining
                to: (1) the asset retirement obligations (ARO) to the extent that the
                ARO finding and recommendations are not held in abeyance; (2) the
                accounting misclassifications related to internal labor costs for
                remediation at manufactured gas plant (MGP) sites; and (3) the
                allocation of overhead costs to construction work in progress
                (CWIP).\10\ In the Delegated Order, the Director of Enforcement denied
                the requested abeyance for the ARO finding and recommendations.\11\
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                 \10\ Id. P 3.
                 \11\ Id.; see also Audit Report, attach. A, ComEd Responses to
                Findings and Recommendations, at p.3 (requesting that Audit Staff
                Finding 3 and related recommendations related to ARO be held in
                abeyance pending ComEd submitting, and the Commission acting on, a
                single-issue filing under section 205 of the Federal Power Act).
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                 5. The Delegated Order stated that it served as notice, pursuant to
                part 41 of the Commission's regulations,\12\ that ComEd may notify the
                Commission in writing, within 30 days of the issuance of the Delegated
                Order, as to whether it requests Commission review of the contested
                issues by a shortened paper hearing procedure or a trial-type hearing
                if ComEd contends that there are material facts in dispute that require
                cross-examination.\13\
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                 \12\ 18 CFR part 41 (2022).
                 \13\ Delegated Order at P 5.
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                 6. As described below, on August 28, 2023, ComEd timely filed a
                response to the Delegated Order. On September 8, 2023, Enforcement
                staff filed an answer to ComEd's response. On September 15, 2023, ComEd
                filed an answer to Enforcement staff's answer.
                II. ComEd Response and Election of Process
                 7. In its response to the Delegated Order, ComEd elected Commission
                review by means of the shortened paper hearing procedures for two
                issues: (1) the accounting treatment of AROs (Audit Report Issue 3 and
                Recommendations 8-12); and (2) the accounting treatment of MGP site
                remediation costs (Audit Report Issue 7 and Recommendations 34-43).\14\
                ComEd states that, for these two issues, it elected shortened paper
                hearing procedures because there are no material facts in dispute.
                ComEd also elected Commission review by means of a trial-type hearing
                for one issue, the allocation of overhead costs to CWIP (Audit Report
                Issue 4 and Recommendations 12-21). ComEd states that, for this issue,
                it elected Commission review by a trial-type hearing because there are
                material facts in dispute that require cross-examination.\15\
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                 \14\ ComEd Response at 1-2. ComEd states that, notwithstanding
                its challenge of the ARO issue, it agrees to revise its treatment of
                Account 108 ARO Depreciation Removals as recommended in the Audit
                Report. Id. at 1 n.2. Further, ComEd clarifies that it does not
                challenge the findings in Audit Report Issue 7 related to items
                other than MGP site remediation costs and it will take the requested
                corrective actions as to those other items. Id. at 1 n.3.
                 \15\ Id. at 1 (citing 18 CFR 41.2).
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                 8. First, ComEd asserts that the Audit Report raises disputed
                issues of material fact concerning the allocation of overhead costs to
                CWIP because the Audit Report contends that ComEd's ``processes and
                procedures for allocating labor and related overhead costs to
                construction were not consistent with Commission accounting
                regulations,'' and ``may have led to overstated construction costs.''
                \16\ ComEd asserts that these Enforcement staff findings raise several
                disputed issues of material fact, including: (1) What were ComEd's
                processes and procedures, and were they appropriately designed and
                conducted in light of the Commission's accounting rules and applicable
                precedent? (2) Did those processes and procedures properly determine
                the amounts of such overheads reasonably
                [[Page 14644]]
                applicable to construction? and (3) Do those processes and procedures
                comply with the relevant requirements?
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                 \16\ Id. at 8 (quoting Audit Report at 48).
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                 9. Second, ComEd asserts that there also are disputed issues of
                material fact concerning the data on which the Audit Report relies.
                ComEd explains that the Audit Report contends that its analysis was
                based on ``interviews of a randomized sample of ComEd's employees whose
                labor costs were allocated to construction projects during the audit
                period and a review of a sample of timesheets associated with the
                employees.'' \17\ ComEd contends that this statement raises disputed
                issues of material fact, including:
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                 \17\ Id. at 8-9 (quoting Audit Report at 26).
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                 (1) Who was interviewed, how were they selected, and what were they
                asked?
                 (2) What timesheets were reviewed and what did they reveal? and (3)
                Did the material reviewed support or contradict the Audit Report's
                conclusions?
                 10. Third, ComEd asserts that the Audit Report's recommendation to
                remedy this issue--to retain an independent third-party entity to
                conduct a representative labor-time study for allocation of overhead
                costs incurred in 2023--raises disputed issues of material fact.\18\
                ComEd contends that the disputed issues include: (1) How would the new
                study be implemented in practice? (2) Would that approach be
                appropriately designed and conducted in light of the Commission's
                accounting rules and applicable precedent? (3) Would that approach
                properly determine the amounts of such overheads reasonably applicable
                to construction? and (4) Would that approach comply with the relevant
                requirements?
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                 \18\ Id. at 9-10 (citing Audit Report at 48).
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                 11. Finally, ComEd asserts that the Audit Report's remedy--to
                remediate the allocation of overhead costs to accounts dating back to
                2017--raises disputed issues of material fact.\19\ ComEd contends that
                the disputed issues include: (1) Were ComEd's overheads allocations
                going back to 2017 reasonable? (2) Did the work done by the relevant
                personnel change from year to year? (3) If so, how could one
                appropriately restate the allocations for past years? (4) Is the
                ``estimate'' proposed by the Audit Report a reasonable and non-
                arbitrary way of reallocating overheads in years remote from the year
                in which the study was conducted? and (5) Would restating amounts for
                such prior years allow ComEd to properly recover its prudently incurred
                and reasonable costs? With respect to the fourth question, ComEd
                asserts that there are strong reasons to doubt that a labor-time study
                performed in 2023 will be a more accurate method of allocating overhead
                labor costs than the approach that ComEd used in the past to allocate
                overhead labor costs that were incurred several years earlier.\20\
                ComEd states, for example, that in prior years, many ComEd employees
                were working on the Grand Prairie Gateway 345kV transmission project.
                ComEd asserts that, because that project was completed in 2017, a
                labor-time study done in 2023 will not capture the considerable time
                that ComEd employees spent on that project.
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                 \19\ Id. at 10 (citing Audit Report at 48-49).
                 \20\ Id. at 10 n.31.
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                 12. ComEd suggests that it could be beneficial to employ a
                settlement judge procedure prior to the trial-type hearing with the
                hope that a negotiated resolution of the overhead costs issue might be
                achievable.\21\
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                 \21\ Id. at 11.
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                III. Enforcement Staff Answer
                 13. Enforcement staff filed an answer asserting that ComEd's
                response fails to identify any disputed issue of material fact and, if
                such an issue had been identified, fails to meet the additional
                requirement of showing why a trial-type hearing with cross-examination
                of witnesses would be necessary to resolve the issue, rather than a
                paper hearing.\22\
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                 \22\ Enforcement Staff Answer at 1-3 (arguing that ComEd has the
                additional burden to show why live witness testimony and testing the
                credibility of witnesses on the stand is required to resolve the
                factual dispute).
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                 14. Enforcement staff contends that there are no disputed issues of
                material fact because Enforcement staff and ComEd agree as to what
                ComEd did and did not do to allocate overhead costs.\23\ Enforcement
                staff explains that ComEd's overhead costs were accumulated into
                overhead pools and were allocated between construction and operating
                and maintenance projects using an allocation methodology. Enforcement
                staff states that ComEd categorized the overhead costs into two
                indirect cost overhead pools--Administrative and General (A&G) and
                General and Administrative (G&A). Enforcement staff states that the A&G
                overhead pool was used to accumulate costs such as information
                technology, legal, fixed assets, human resources, real estate, and
                Exelon \24\ Business Service Company costs. Enforcement staff states
                that, to allocate A&G overhead pool costs, ComEd first reviewed each
                cost within its operating and maintenance budget to determine whether
                the cost was eligible for capitalization. Enforcement staff states that
                ComEd then allocated the eligible A&G overhead cost based on the ratio
                of capitalized labor cost over total labor cost. Enforcement staff
                states that the G&A overhead pool was used to accumulate overhead costs
                from ComEd departments that provided back-office support to capital-
                intensive departments.\25\ Enforcement staff states that, to allocate
                G&A overhead pool costs to construction, ComEd applied the weighted
                average overhead capitalization rate of the capital-intensive
                departments to the costs accumulated in the G&A overhead pool.
                Enforcement staff also asserts that the facts are clear as to what
                ComEd did not do to allocate its overhead costs: specifically, it did
                not base its allocation on actual time (through timecard
                distributions), or on a study of actual employee time spent on work
                relating to construction projects, as required by the Commission's
                accounting regulation.\26\
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                 \23\ Id. at 4.
                 \24\ Exelon Corporation (Exelon) is the parent company of ComEd.
                 \25\ Enforcement Staff Answer at 5.
                 \26\ Id. at 6; Audit Report at 45 (citing 18 CFR part 101,
                General Instruction No. 9, Distribution of Pay and Expenses of
                Employees).
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                 15. Enforcement staff further contends that ComEd's purported
                questions are general and abstract, with no identification of a factual
                issue that ComEd contends is disputed, no attempt to show that any such
                disputed fact is ``material'' to a matter presently before the
                Commission to be decided, and no explanation of why such an issue
                requires live witness testimony as opposed to resolution through a
                paper hearing.\27\
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                 \27\ Enforcement Staff Answer at 6.
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                 16. Enforcement staff asserts that, given there are no material
                issues of fact to resolve regarding ComEd's allocation of overhead
                costs, the Commission is left to resolve only a question of law: Did
                ComEd's allocation of overhead costs comply with the Commission's
                accounting regulations? Enforcement staff asserts that it does not
                believe that ComEd complied with the Commission's regulations because
                it did not allocate overhead costs based on actual time or a study of
                actual employee time.\28\ Enforcement staff therefore asserts that the
                Commission should deny ComEd's request for a trial-type hearing and set
                the question of law--the interpretation of the Commission's accounting
                regulations for overhead construction costs--for paper hearing.\29\
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                 \28\ Id. at 6-7.
                 \29\ Id. at 7-8.
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                 17. With respect to ComEd's request that the Commission employ
                settlement
                [[Page 14645]]
                judge procedures, Enforcement staff notes that it has engaged in
                lengthy discussions with ComEd over a nine-month period to attempt to
                resolve all issues in this audit proceeding without success.\30\
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                 \30\ Id. at 8 n.14 (citing ComEd Response at 11).
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                IV. ComEd Answer
                 ComEd asserts that, under the Commission's regulations, the issue
                is whether ComEd's method of allocating overhead construction costs
                ``reasonably appli[ed]'' those costs to ``particular jobs or units,''
                so that ``each job or unit shall bear its equitable proportion of such
                costs.'' \31\ ComEd states that, to apply this guidance and determine
                which costs are properly recorded as overhead construction costs, ComEd
                conducts an annual study of personnel in various back-office
                departments and assigns their costs based on the results of that
                study.\32\ In response to Enforcement staff's assertion that there is
                agreement between Enforcement staff and ComEd about ComEd's cost
                allocation methodology, ComEd responds that it is unsure that there is
                any such agreement, but even if there was agreement, the key question
                is not what method ComEd used, but whether ComEd's method was
                reasonable, which is inherently a factual one.\33\
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                 \31\ ComEd Answer at 2-3 (quoting 18 CFR part 101, Electric
                Plant Instruction No. 4(A), Overhead Construction Costs).
                 \32\ Id. at 3-4.
                 \33\ Id. at 2, 4, 5 (arguing that it is also a factual question
                whether a time study conducted in 2024 is a reasonable proxy for the
                allocation of costs spent up to eight years earlier).
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                 18. ComEd asserts that the Audit Report is premised on factual
                conclusions based on Enforcement staff's interviews.\34\ In particular,
                ComEd states that Enforcement staff's evaluation of the reasonableness
                of ComEd's method was based on ``interviews of a randomized sample of
                ComEd's employees whose labor costs were allocated to construction
                projects during the audit period and a review of a sample of timesheets
                associated with the employees.'' \35\ ComEd states that the Audit
                Report does not disclose anything about the substance of those
                interviews or the methods used to analyze the results, which makes it
                impossible for either ComEd or the Commission to assess the Audit
                Report's findings and recommendations on overhead construction
                costs.\36\
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                 \34\ Id. at 4.
                 \35\ Id. (quoting Audit Report at 26).
                 \36\ Id. at 4-5.
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                 19. ComEd states that it continues to think that settlement judge
                procedures could be beneficial because a mediator can sometimes help
                adverse parties find a resolution.\37\
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                 \37\ Id. at 6.
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                V. Discussion
                A. Procedural Matters
                 20. Rule 213(a)(2) of the Commission's Rules of Practice and
                Procedure, 18 CFR 385.213(a)(2) (2022), prohibits an answer to an
                answer unless otherwise ordered by the decisional authority. We accept
                ComEd's answer \38\ because it has provided information that assisted
                us in our decision-making process.
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                 \38\ We note that Enforcement staff's answer to ComEd's response
                was appropriately filed pursuant to Rule 213(a)(3) of the
                Commission's Rules of Practice and Procedure, 18 CFR 385.213(a)(3).
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                B. Substantive Matters
                 21. In Order No. 675, the Commission amended its Part 41
                regulations to expand due process by allowing an audited person who
                disputes findings or proposed remedies contained in an audit report to
                elect a shortened paper hearing procedure or a trial-type hearing to
                challenge disputed audit matters.\39\ The Commission stated that it
                would honor the audited person's timely election unless a trial-type
                hearing is chosen and there are, in the Commission's judgment, no
                disputed issues of material fact that require a trial-type hearing.\40\
                In response to ComEd's timely election, we establish a shortened paper
                hearing procedure for two contested issues, and we establish a trial-
                type hearing and settlement judge procedures for one contested issue,
                as set forth below.
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                 \39\ Procs. for Disposition of Contested Audit Matters, Order
                No. 675, 114 FERC ] 61,178, at P 37, order on reh'g & clarification,
                Order No. 675-A, 115 FERC ] 61,189 (2006).
                 \40\ Id.; see also 18 CFR 41.7.
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                1. Shortened Paper Hearing Procedure
                 22. Pursuant to Sec. 41.3 of the Commission's regulations,\41\ we
                direct the commencement of a paper hearing and establish paper hearing
                procedures concerning two contested issues, as requested by ComEd: (1)
                the accounting treatment of AROs (Issue 3 in the Audit Report and
                Recommendations 8-12); and (2) the accounting treatment of MGP site
                remediation costs (Issue 7 in the Audit Report and Recommendations 34-
                43).\42\ The scope of the paper hearing is limited to these challenged
                findings and recommendations.
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                 \41\ 18 CFR 41.3.
                 \42\ Consistent with ComEd's election, we do not set for hearing
                the findings in Issue 7 that relate to items other than MGP site
                remediation costs, as those findings are uncontested and ComEd has
                agreed to take the corrective actions directed by Enforcement staff.
                See ComEd Response at 1 n.3.
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                 23. In accordance with Sec. 41.3, ComEd and any other interested
                entity, including Enforcement staff, shall file, within 45 days of this
                order, an initial memorandum that addresses the relevant facts and
                applicable law that support the position or positions taken regarding
                the matters at issue.\43\ Reply memoranda may be filed by participants
                who filed initial memoranda. Reply memoranda must be filed within 20
                days of the due date for initial memoranda. Pursuant to Sec. 41.3,
                subpart T of part 385 of the Commission's regulations shall apply to
                all filings. Further, pursuant to Sec. 41.4, each entity's memorandum
                should set out the facts and arguments as prescribed for briefs in Rule
                706 of the Commission's Rules of Practice and Procedure.\44\ Section
                41.5 also requires that the facts stated in the memorandum must be
                sworn to by persons having knowledge thereof, which latter fact must
                affirmatively appear in the affidavit.\45\
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                 \43\ In Order No. 675, the Commission stated that it will use
                the same standard for permitting interested entities to file
                memoranda in the shortened paper hearing procedures as it uses to
                permit interventions in other proceedings. In addition, the
                Commission stated that an interested entity may include in its
                initial memorandum filed pursuant to the shortened paper hearing
                procedures a motion to intervene in the proceeding. Order No. 675,
                114 FERC ] 61,178 at P 11 (citing 18 CFR 385.214(b) (2022)); see
                FirstEnergy Corp., 185 FERC ] 61,099, at P 21 & n.61 (2023) (stating
                that interventions are permitted in a contested audit proceeding in
                which the audited person elects to contest one or more audit
                findings or remedies in a shortened paper hearing procedure).
                 \44\ 18 CFR 41.4 (citing 18 CFR 385.706 (2022)).
                 \45\ Id. Sec. 41.5.
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                 24. eFiling is encouraged. More detailed information relating to
                filing requirements, interventions, and service can be found at:
                https://www.ferc.gov/media/5339. For other information, call (866) 208-
                3676 (toll free). For TTY, call (202) 502-8659.
                2. Trial-Type Hearing and Settlement Judge Procedures
                 25. With respect to the contested issue concerning the allocation
                of overhead costs to CWIP (Issue 4 in the Audit Report and
                Recommendations 13-21), we find that ComEd has raised issues of
                material fact that cannot be resolved based on the record before us and
                that are more appropriately addressed in a trial-type hearing.
                Therefore, pursuant to Sec. 41.7 of the Commission's regulations,\46\
                we direct the commencement of a trial-type hearing and establish trial-
                type hearing procedures concerning the allocation of overhead costs to
                CWIP, as requested by
                [[Page 14646]]
                ComEd. The scope of the trial-type hearing is limited to these
                challenged findings and recommendations. Pursuant to Rule 601 of the
                Commission's Rules of Practice and Procedure,\47\ we also establish
                settlement judge procedures for this contested issue, as requested by
                ComEd.\48\
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                 \46\ Id. Sec. 41.7.
                 \47\ Id. Sec. 385.601.
                 \48\ ComEd Response at 11; ComEd Answer at 6.
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                 26. Any interested entity seeking to participate in this trial-type
                hearing shall file a motion to intervene pursuant to Rule 214 of the
                Commission's Rules of Practice and Procedure \49\ no later than 15 days
                after the date of publication of this order in the Federal Register.
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                 \49\ 18 CFR 385.214; see FirstEnergy Corp., 185 FERC ] 61,099 at
                P 21 & n.61 (stating that interventions are permitted in a contested
                audit proceeding in which the audited person elects to contest one
                or more audit findings or remedies in a trial-type hearing).
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                 27. While we are setting the allocation of overhead costs to CWIP
                for a trial-type evidentiary hearing,\50\ we encourage efforts to reach
                settlement before hearing procedures commence. To aid settlement
                efforts, we will hold the trial-type hearing in abeyance and direct
                that a settlement judge be appointed, pursuant to Rule 603 of the
                Commission's Rules of Practice and Procedure.\51\ If parties desire,
                they may, by mutual agreement, request a specific judge as the
                settlement judge in the proceeding. The Chief Judge, however, may not
                be able to designate the requested settlement judge based on workload
                requirements, which determine judges' availability.\52\ The settlement
                judge shall report to the Chief Judge and the Commission within 60 days
                of the date of the appointment of the settlement judge concerning the
                status of settlement discussions. Based on this report, the Chief Judge
                shall provide the parties with additional time to continue their
                settlement discussions or provide for commencement of a hearing by
                assignment of the case to a presiding judge.
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                 \50\ Enforcement staff is a participant in the trial-type
                hearing and settlement judge procedures. See 18 CFR 385.102(b), (c)
                (2022).
                 \51\ 18 CFR 385.603.
                 \52\ If the parties decide to request a specific judge, they
                must make their joint request to the Chief Judge by telephone at
                (202) 502-8500 within five days of this order. The Commission's
                website contains a list of Commission judges available for
                settlement proceedings and a summary of their background and
                experience (https://www.ferc.gov/available-settlement-judges).
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                 The Commission orders:
                 (A) A paper hearing and related procedures are hereby established
                concerning two contested issues, the accounting treatment of AROs and
                MGP site remediation costs, as set forth in the body of this order.
                 (B) A trial-type hearing and related procedures, and settlement
                procedures are hereby established concerning one contested issue, the
                allocation of overhead costs to CWIP, as set forth in the body of this
                order.
                 (C) Pursuant to the authority contained in and subject to the
                jurisdiction conferred on the Commission by section 402(a) of the
                Department of Energy Organization Act and the Federal Power Act (FPA),
                particularly Sec. 205, 206 and 301 thereof, and pursuant to the
                Commission's Rules of Practice and Procedure and the regulations under
                the FPA (18 CFR chapter I), a public hearing shall be held concerning
                the allocation of overhead costs to CWIP, as discussed in the body of
                this order. However, the hearing will be held in abeyance to provide
                time for settlement judge procedures, as discussed in Ordering
                Paragraphs (D) and (E) below.
                 (D) Pursuant to Rule 603 of the Commission's Rules of Practice and
                Procedure, 18 CFR 385.603, the Chief Judge is hereby directed to
                appoint a settlement judge in this proceeding within 45 days of the
                date of this order. Such settlement judge shall have all powers and
                duties enumerated in Rule 603 and shall convene a settlement conference
                as soon as practicable after the Chief Judge designates the settlement
                judge. If parties decide to request a specific judge, they must make
                their request to the Chief Judge within five days of the date of this
                order.
                 (E) Within 60 days of the appointment of the settlement judge, the
                settlement judge shall file a report with the Commission and the Chief
                Judge on the status of the settlement discussions. Based on this
                report, the Chief Judge shall provide participants with additional time
                to continue their settlement discussions, if appropriate, or assign
                this case to a presiding judge for a trial-type evidentiary hearing, if
                appropriate. If settlement discussions continue, the settlement judge
                shall file a report at least every 60 days thereafter, informing the
                Commission and the Chief Judge of participants' progress toward
                settlement.
                 (F) If settlement judge procedures fail and a trial-type
                evidentiary hearing is to be held, a presiding judge, to be designated
                by the Chief Judge, shall, within 45 days of the date of the presiding
                judge's designation, convene a prehearing conference in these
                proceedings in a hearing room of the Commission, 888 First Street NE,
                Washington, DC 20426, or remotely (by telephone or electronically), as
                appropriate. Such a conference shall be held for the purpose of
                establishing a procedural schedule. The presiding judgeis authorized to
                establish procedural dates, and to rule on all motions (except motions
                to dismiss) as provided in the Commission's Rules of Practice and
                Procedure.
                 By the Commission. Commissioner Danly is not participating.
                 Issued: Issued December 8, 2023.
                Debbie-Anne A. Reese,
                Deputy Secretary.
                [FR Doc. 2024-04055 Filed 2-27-24; 8:45 am]
                BILLING CODE 6717-01-P
                

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