FERC conditionally accepts new enforcement mechanism for electric reliability standards

The U.S. Federal Energy Regulatory Commission (FERC) recently approved with conditions the North American Electric Reliability Corporation’s (NERC) petition proposing the use of the “Find, Fix, Track and Report” (FFT) to report possible lesser-risk violations of Reliability Standards.

FERC determined that the FFT initiative would more efficiently process lesser-risk violations and promote reliability because it streamlines the manner NERC reports minor violations and allows NERC to focus its resources on issues that pose more serious risks to reliability.

NERC’s petition proposed three tracks to address possible violations: (1) a Notice of Penalty; (2) an FFT information filing; or (3) a Dismissal. Unlike a Notice of Penalty, which deals with moderate to substantial reliability risks and can result in fines, the FFT process uses informational filings to report possible lesser-risk violations, such administrative, documentation and certain maintenance or testing program implementation failures.

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