FERC Issues New Enforcement Policy And Regulations

On May 15, the Federal Energy Regulatory Commission (FERC or Commission) issued a package of orders addressing its enforcement authority under the Federal Power Act, Natural Gas Act, and Natural Gas Policy Act. In particular, FERC (1) approved a revised policy statement on enforcement matters; (2) issued an interpretive order expanding the topics that can be addressed under its "no-action letter" process and reviewing other mechanisms under which an entity can seek guidance from FERC staff; (3) issued a notice of proposed rulemaking that would revise the rules on ex parte communications, separation of functions, and intervention in an investigation; and (4) issued a final rule amending its regulations to expand and clarify the rights of an entity subject to investigation in the event FERC staff recommends that the Commission issue an order to show cause as a result of the investigation.