US FERC 18 CFR 35.41 Market Behavior Rules Guide
Updated 6 September 2026 · By SolarNevs Research Desk, Dealer surveys + verified sources · 1 source · Method ↗
Key Takeaways
- 18 CFR 35.41 establishes market behavior rules for wholesale electricity sellers.
- Sellers must operate facilities and bid supply in compliance with Commission-approved market rules.
- All communications with FERC and market entities require accurate and factual information.
- Sellers must retain billing and price index data for five years.
Understanding 18 CFR 35.41 Market Behavior Rules
18 CFR 35.41, titled "Market behavior rules," is a federal regulation. It falls under Subpart H of the Code of Federal Regulations. This subpart governs "Wholesale Sales of Electric Energy, Capacity and Ancillary Services at Market-Based Rates." The Federal Energy Regulatory Commission (FERC) promulgated these rules under the Federal Power Act and Order 697. These rules apply to wholesale solar and battery storage sellers operating in organized RTO/ISO wholesale markets.
Unit Operation and Scheduling Compliance
If you participate in a Commission-approved organized market, you must operate your facilities according to specific rules. This includes scheduling generating facilities, undertaking maintenance, declaring outages, and committing or bidding supply. All these actions must comply with the Commission-approved rules and regulations of the applicable market.
A seller is not required to bid or supply electric energy or other electricity products unless a separate Commission-approved tariff mandates it. We have not verified specific tariff requirements, so we do not publish them here.
Communications Accuracy Standard
You must provide accurate and factual information in all communications. This applies to interactions with the Commission, Commission-approved market monitors, Commission-approved regional transmission organizations, Commission-approved independent system operators, or jurisdictional transmission providers. You must not submit false or misleading information, or omit material information. You must exercise due diligence to prevent such occurrences.
This standard also applies if you report transactions to publishers of electric or natural gas price indices. You must provide accurate and factual information and not knowingly submit false or misleading information or omit material information. This reporting must be consistent with the procedures set forth in the Policy Statement on Natural Gas and Electric Price Indices, issued by the Commission in Docket No. PL03-3-000. The Commission may also order additional standards and requirements for price reporting.
Mandatory Record Retention
As a seller, you must retain specific data and information for a period of five years. This includes all data and information upon which you billed the prices charged for electric energy or electric energy products sold under your market-based rate tariff. It also includes the prices reported for use in price indices.
Related Solarnevs Guides
For further information on related FERC regulations and guides, you may consult these solarnevs resources:
Frequently asked questions
What is 18 CFR 35.41?
18 CFR 35.41 outlines market behavior rules for wholesale sellers of electric energy, capacity, and ancillary services at market-based rates. These rules were established by FERC under the Federal Power Act and Order 697 (August 2026).
What are the communications standards under 18 CFR 35.41?
Sellers must provide accurate and factual information to FERC, market monitors, RTOs, ISOs, and transmission providers. They must not submit false, misleading, or materially incomplete statements, exercising due diligence to prevent such occurrences (August 2026).
What are the record retention requirements for sellers under 18 CFR 35.41?
Sellers must retain all data and information for a period of five years. This includes data used to bill prices for electric energy and products, and prices reported for use in price indices (August 2026).
Are wholesale sellers required to offer energy under 18 CFR 35.41?
No, a seller is not required to bid or supply electric energy or other electricity products unless such a requirement is part of a separate Commission-approved tariff (August 2026).
How does 18 CFR 35.41 address unit operation in organized markets?
Where a seller participates in a Commission-approved organized market, they must operate and schedule generating facilities, undertake maintenance, declare outages, and bid supply in compliance with the applicable market's Commission-approved rules and regulations (August 2026).
References
- 18 CFR § 35.41 - Market behavior rules. — accessed 31 August 2026
Related guides
More from schemes, subsidies & financing.