FERC Issues Guidance Order for Future Notices of Penalty

On August 27, 2010, FERC issued a Guidance Order regarding its expectations for future Notices of Penalty (“NOPs”) filed with FERC.  In the Guidance Order, FERC states that it is concerned that NERC is not treating repetitive infractions of the same or closely-related standard requirements as an aggravating factor when making penalty determinations.  In addition, FERC states that future NOPs should explain whether a violation reflects recurring conduct by the same registered entity or by an affiliate.  FERC does note in the Order that it is not concluding that NERC lacks the discretion to determine whether a prior violation should be an aggravating factor in the penalty determination.  To view the Guidance Order, click here.