FERC Lightens Compliance Load For Power Traders

In a time of increasing compliance requirements and enhanced regulatory scrutiny of power trading activities, a recent Federal Energy Regulatory Commission ("FERC") order brought some compliance relief to power traders and marketers. In a March 19, 2015, order in Docket No. RR15-4-000, FERC approved a proposal by the North American Electricity Reliability Corporation ("NERC") to remove the Purchasing-Selling Entity ("PSE") function from NERC's Compliance Registry and to no longer subject PSEs to compliance with mandatory Reliability Standards. As the PSE function was the only NERC compliance function directly related to commercial trading activities, removal of the PSE function will eliminate NERC compliance obligations directly arising out of trading activities.