FERC Issues Order Conditionally Accepting CMEP and Revised Delegation Agreements

On July 12, 2010, in Docket No. RR10-7, FERC issued an order accepting NERC’s March 10, 2010, filing of Compliance and Monitoring and Enforcement Program Agreements (CMEP Agreements) between SERC and SPP and between SERC and FRCC, which provide that SERC will act as the Compliance Enforcement Authority for compliance matters involving all registered entity functions for FRCC and SPP within their respective regions. In addition, the Commission approved certain amendments to the Regional Entity Delegation Agreements of FRCC, SERC, and SPP that were made in order to reflect the proposed CMEP Agreements. The Commission’s acceptance of the CMEP Agreements, however, is conditioned upon those agreements being modified such that SERC will receive monies from penalties against SPP and FRCC and that there will no offset to SPP’s and FRCC’s assessments from the ERO for such penalty amounts. Similarly, the Commission directs SERC, SPP and FRCC to revise their Regional Entity Delegation Agreements such that SERC will receive any penalties levied against and paid by SPP and FRCC. The Commission also finds it necessary to modify the CMEP Agreements by removing the automatic renewal provisions, subject to the Commission’s re-evaluation and –approval following the initial term, which is scheduled to end on December 31, 2012. To view the Commission’s Order on the SERC, SPP, and FRCC CMEP Agreements and Revised Delegation Agreements, click here.