Federal Energy Regulatory Commission Issues Modified Civil Penalty Guidelines

On September 17, 2010, the Federal Energy Regulatory Commission (FERC or Commission) issued a Revised Policy Statement on Penalty Guidelines (Revised Policy Statement).¹ The Revised Policy Statement modifies the penalty guidelines that were issued on March 23, 2010 and subsequently suspended to allow for public comments.² The newly issued Penalty Guidelines base penalties on the same factors as in existing enforcement policy statements but are intended to add fairness, consistency and transparency to future civil penalty determinations.

FERC's Response to Public Comments

The Commission determined to continue to model the Penalty Guidelines on the U.S. Sentencing Guidelines. The Commission clarified that zero dollar penalties are possible under their guidelines-based approach and that Enforcement Staff have the discretion to close investigations or self-reports with no sanctions even if a violation occurred. The Commission confirmed that achieving compliance is its