FERC Enforcement: The Pit And The Pendulum

The Federal Energy Regulatory Commission's Office of Enforcement has been on the march, targeting market participants for a range of activities in the wholesale electricity and natural gas markets. The pendulum has swung hard toward enforcement. The agency has moved to expand its manipulation theories and enforcement capabilities, while anticipating more settlements and possible litigation with the targets of its enforcement efforts.

I. Introduction

The Federal Energy Regulatory Commission's Office of Enforcement (OE) has been on the march, its anti-manipulation and civil penalty authority under the Energy Policy Act of 2005 (''EPAct 2005'')¹ in hand, targeting market participants for a range of activities in the wholesale electricity and natural gas markets. The pendulum has swung hard toward enforcement. FERC shows no signs of retreat or a contemplative pause. Instead, FERC continues to pursue investigative targets with vigor. FERC has moved to expand