FERC Approves Settlement on NERC 2012 Performance Audit

On January 16, 2013 in Docket No. FA11-21, FERC approved a settlement between its Office of Enforcement (“OE”) and NERC to resolve all issues related to the findings and recommendations in Enforcement’s 2012 performance audit of the electric reliability organization.

The performance audit, which commenced in August of 2011, evaluated NERC’s budget formulation, administration and execution, focusing on the costs and resources used to achieve its program objectives. FERC issued an order with its factual findings on June 4, 2012, and NERC submitted an information letter disputing these findings on June 19, 2012. Under the settlement, the OE and NERC resolve all outstanding contested recommendations. The settlement also sets forth a procedure for confirming progress and implementation of audit recommendations.