FERC Tightens Interlocking Officer and Director Rules

The Federal Energy Regulatory Commission ("FERC") announced on March 25, 2005 proposed new rules to tighten and clarify the requirements for advance approval for officers and directors of FERC public utilities to also hold officer and director positions with certain other entities. Public comments on the proposed rule changes (Docket RM05-6-000) are due no later than June 6, 2005. Comments may be filed electronically via the eFiling link on the commission’s web site (www.ferc.gov).

This is the latest in a string of increasingly blunt actions by the FERC to strictly enforce the interlock provisions of the Federal Power Act. In particular, the FERC has made clear it will not tolerate those who wait until after they assume the interlocking positions to seek the necessary approval. Approval in advance is required.