The industry debates how far FERC should go.
Howard Friedman is Senior Manager, Deloitte & Touche LLP. Email him at hfriedman@deloitte.com. Deloitte, is not, by means of this article, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services.
Since the Energy Policy Act was enacted in 2005, the domestic power and gas industry has experienced several years of Federal Energy Regulatory Commission (FERC) compliance enforcement history, including the related monetary impact for companies that experienced compliance issues. For example, FERC increased the number of investigations opened in 2008 to 48 from 35 in 2007.1 Of those 48 investigations in 2008—some stemming from self-reports—17 were closed via settlement agreements that ended up costing some $52.5 million in sanctions.2