FERC presses for reliability while lifting regulatory burdens amidst COVID-19 pandemic
The Federal Energy Regulatory Commission (FERC) is working closely with regulated entities to guarantee service reliability, including such measures as removing established regulatory burdens.
“I’ve said this before, but it bears repeating: The Commission will not second-guess the good faith actions that regulated entities take in the face of this emergency,” FERC Chairman Neil Chatterjee said.
Continuity is all, and the last thing FERC wants right now is uncertainty. To that end, Chatterjee pledged prosecutorial discretion in addressing events that occur during the COVID-19 emergency. So designated, the pandemic has also triggered the suspension of some standards of conduct posting requirements.
The Commission warns that unprecedented actions may disrupt, complicate, or otherwise change entities’ normal course of business operations during the crisis. Going forward, FERC will give the highest priority to those filings meant to assure the reliable operation of energy infrastructure.
However, if entities face disruptions longer than a month and are unable to resume standards of conduct posting because of COVID-19, they can file a waiver request with FERC. Enforcement staff will have the emergency firmly in mind when evaluating compliance, auditing, and doling out penalties, though no new audits will begin until July 31.
New authority has been delegated to directors within FERC, allowing actions on uncontested waiver requests and extensions of time to file. Further, the period for Regional Transmission Operators and Independent System Operators to post their uplift reports and operator initiated commitment reports due between April and September has now been extended to Oct. 20.
Two additional Commission staff task forces have been formed to expedite standards of conduct waiver requests and no-action letters — added procedural options for those seeking more formal enforcement or compliance-related guidance. Enforcement staff will be in communication with subjects of ongoing non-public investigations and audits, or those entities with compliance obligations associated with completed cases, but will only contact entities regarding surveillance inquiries that involve market behavior of potentially significant risk to the market.
All electric quarterly report deadlines have been extended until June 1, and entities can delay for up to 60 days the submission of any self-reports that involve inadvertent errors but produce no significant harm to markets, ratepayers, or other market participants.
“The Commission will remain vigilant during this challenging period and will continue its market surveillance efforts to protect market participants and consumers from the effects of anti-competitive behavior,” Chatterjee said.
