What is a Blanket Certificate? A Comprehensive Legal Overview
Definition & Meaning
A blanket certificate is a type of authorization issued by the Federal Energy Regulatory Commission (FERC) that allows the holder to conduct certain activities, such as providing transportation services or engaging in sales, without needing to obtain individual approvals for each specific action. This means that the holder can operate on a self-implementing basis or with prior notice, streamlining the process for energy-related operations.
Legal Use & context
Blanket certificates are primarily used in the energy sector, particularly for companies involved in the transportation and sale of natural gas and electricity. This authorization simplifies regulatory compliance by eliminating the need for case-by-case approvals from FERC, enabling businesses to respond more quickly to market demands. Users can manage their activities effectively by utilizing legal templates and forms provided by services like US Legal Forms.
Real-world examples
Here are a couple of examples of abatement:
Example 1: A natural gas company holds a blanket certificate, allowing it to transport gas across state lines without needing to file for approval each time it initiates a new transportation project.
Example 2: An electricity supplier uses its blanket certificate to sell power to various customers without seeking FERC's approval for each transaction. (hypothetical example)