FERC Puts A Premium On Truthfulness

While we have yet to see action on last year's proposed Duty of Candor rules, a recent settlement between the Federal Energy Regulatory Commission's (FERC) Office of Enforcement (OE) and a pipeline operator reminds us that FERC puts a premium on truthfulness. The settlement and $1.2 million civil penalty are a serious reminder to the natural gas and electric industry, and those practicing before FERC, that: (1) FERC will use its existing regulations and penalty authority to ensure compliance with its statutory requirements and transparent dealing with the Commission, even when no harm is caused to third parties; (2) even if a company is minimally regulated, it must stay on top of its regulatory obligations; and (3) outside lawyers are not safe from public scrutiny by the regulator.