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ARTICLE · 09 MARCH 2006

Energy Client Alert, March 2006

Powell Goldstein LLP
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On February 2, 2006, the Federal Energy Regulatory Commission (the “Commission”) issued final rules to implement Congress’ mandate in the Energy Policy Act of 2005 to provide for a system of mandatory, enforceable standards to assure the reliability of the bulk power system. (Docket No. RM05-30-000; Order No. 672.) These rules address the certification of an Electric Reliability Organization (an “ERO”) and the procedures for establishment, approval and enforcement of mandatory electric reliabili

United StatesEnergy and Natural Resources
Richard Drom
Richard Drom

FERC Issues Final Rules Relating to Electric Reliability Organization

On February 2, 2006, the Federal Energy Regulatory Commission (the "Commission") issued final rules to implement Congress’ mandate in the Energy Policy Act of 2005 to provide for a system of mandatory, enforceable standards to assure the reliability of the bulk power system. (Docket No. RM05-30-000; Order No. 672.) These rules address the certification of an Electric Reliability Organization (an "ERO") and the procedures for establishment, approval and enforcement of mandatory electric reliability standards.

As a result of these rules, electric utilities will no longer rely on voluntary compliance with industry reliability requirements. Rather, electric reliability standards will now be enforceable against all users, owners and operators of the bulk power system.

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