FERC Issues Staff Report on Enforcement

Print PDFNovember 14, 2007

On November 14, the Federal Energy Regulatory Commission (FERC) released its Staff Report on Enforcement that provides background into the evolution of its enforcement program, and shows how FERC uses its enforcement tools to encourage companies to develop effective compliance programs and to deter and punish misconduct. The report is important to companies who are held to the standards of the Energy Policy Act of 2005.

Along with the report, FERC Chairman Kelliher issued a statement on the status of the enforcement program.

FERC is holding a conference on Friday, November 16 to discuss its enforcement program. Van Ness Feldman’s Paul Korman will be on a panel to discuss the Enforcement Policy from a practioner’s view.

Key statistical highlights of the report are below. Click here for a full copy of the report.

Disposition of Self-Reports

Of 74 Self-Reports received: 37 (50%) were closed with no action; 32 (43%) were converted into investigations, of which 25% were closed with no action and the remaining 75% were evenly split between settlement or ongoing investigation; 5 reports (7%) are still at an initial stage of review.

Self-Reports Without Monetary Remedies by Type of Violation

Of 32 Self Reports received: 16 were for Standards of Conduct; 5 were for Interlocking/Form 561; 3 were for Filing requirements; 2 were for Market-based rate authorization; 3 had No violation; 3 were OASIS-related; 2 were for failure to comply with settlement/stipulation agreement.

Disposition of Investigations

Of the investigations closed since 2005: 25 were closed because of insufficient evidence or because no violations were found; 22 were closed without sanctions; 15 were settled; 2 had orders to show cause.

Investigations Without Monetary Remedies by Type of Violation

Of the cases where violations were found but resolved without sanctions: 7 had posting requirements; 7 had interlocking directories; 3 had tariff violations; and 1 each had a commission order, posting requirements, misrepresentation in data responses, standards of conduct, or undue preference.

For Additional Information

Van Ness Feldman has experience in all aspects of federal energy compliance, from conducting regulatory compliance reviews, to helping clients develop compliance plans and training programs, to defending clients in FERC audits, investigations and enforcement actions. For more information, please refer to our Electric and Natural Gas practice areas, or your usual Van Ness Feldman contact.

###

Based in Washington, DC — with an office in Seattle, Washington — Van Ness Feldman is a nationally recognized law firm specializing in energy, the environment, natural resources, and infrastructure security. Founded in 1977, the firm now has more than 75 attorneys and public policy professionals. A number of our members have served as counsel or chief counsel to congressional committees with jurisdiction over energy and environmental policy, as well as senior advisors to Democratic and Republican Members of Congress on those committees. Others have held high-level appointments in the Department of Energy, the Department of the Interior, the Federal Energy Regulatory Commission, and the Environmental Protection Agency.

This document has been prepared by Van Ness Feldman for informational purposes only and is not a legal opinion, does not provide legal advice for any purpose, and neither creates nor constitutes evidence of an attorney-client relationship.