FERC Issues Order on FPL Settlement and Penalty regarding 2008 Blackout
- Filter By Electric Reliability Law Blog
Under the settlement agreement, FPL agrees to pay a $25 million civil penalty but does not admit to any violations of NERC Reliability Standards. The payment of the $25 million civil penalty will be divided as follows: FPL will pay $10 million to U.S. Treasury and $10 million to NERC. With respect to the remaining $5 million, the Order states that FPL may spend such amount, subject to FERC and NERC staff approval, on bulk power system reliability enhancement measures that go above and beyond the other reliability compliance commitments in the settlement agreement. If FPL has not spent (or committed to spend) for approved projects the entire $5 million amount within three years of the Order, the unspent portion will revert to NERC and the U.S. Treasury in equal proportions. In addition to the $5 million in reliability enhancement measures, FERC noted as positive factors in approving the settlement that FPL has also agreed to undertake other voluntary reliability enhancement measures.