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ARTICLE · 11 MARCH 2024

FERC's Streamlined Settlement Process: Promise And Peril

The Federal Energy Regulatory Commission ("FERC" or the "Commission") recently granted more discretion to the Office of Enforcement ("OE" or "Enforcement") in a new policy statement...

United StatesEnergy and Natural Resources

The Federal Energy Regulatory Commission ("FERC" or the "Commission") recently granted more discretion to the Office of Enforcement ("OE" or "Enforcement") in a new policy statement on enforcement settlements ("Policy Statement"), which became effective on February 26, 2024. The Policy Statement allows OE to negotiate settlements without securing prior settlement authority from the Commission. During February's Open Meeting, Chairman Willie L. Phillips announced the issuance of the Policy Statement:

The reforms ... enhance both enforcement staff's and investigative subjects' ability to negotiate settlements and speed up the time it takes to reach resolution by settlement. Under today's policy statement, the Office of Enforcement will no longer need to seek settlement authority from the Commission prior to engaging in settlement negotiations. Rather, the director of OE will have the discretion to authorize staff to begin such negotiations.2

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