FERC Issues New Civil Penalty Guidelines Based On U.S. Sentencing Guidelines

In another step in the evolution of its enforcement program, the Federal Energy Regulatory Commission (FERC or the "Commission") recently announced a statement of policy that revises the Commission's approach to imposing civil penalties for violations of its statutes and regulations by adopting the approach of the United States Sentencing Guidelines for organizations.

The "Policy Statement on Penalty Guidelines,"¹ represents a change in FERC's approach to civil penalties by adopting the formula approach of the United States Sentencing Guidelines, which are used to determine sentences and fines in federal criminal cases. In a separate statement, FERC Chairman Jon Wellinghoff explained that the revised Penalty Guidelines are expected to increase fairness, consistency and transparency in the enforcement program.