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FERC enforcement reforms provide clarity, emphasize strong compliance programs

Utility Automation & Engineering T&D

Washington, D.C., Nov. 6, 2008 -- The Federal Energy Regulatory Commission (FERC) took final action on three measures that they say will help strengthen and clarify the agency's enforcement program.

The three measures -- a policy statement on compliance with statutes, regulations and orders, a revised standards of conduct for transmission providers and a new rule clarifying off-the-record contacts and separation of functions -- form a package of reforms aimed at providing clear rules and emphasizing strong compliance programs by regulated companies.

"The central object of the FERC enforcement program is achieving compliance with our regulatory requirements, and it is in the public interest to promote strong compliance programs by regulated companies and others," FERC chairman Joseph T. Kelliher said. "Today, FERC provides guidance in the Compliance Policy Statement on what constitutes model corporate compliance, and encourages companies and others to develop such programs through penalty credits for non-serious violations. At the same time, our action to reform the Standards of Conduct rule demonstrates that FERC is committed to facilitating compliance, by reforming a rule that posed compliance challenges and establishing a rule that not only better achieves its public purpose, but also is easier to enforce and easier to comply with."