FERC Ups Penalties For Electric Reliability Lapses

Law360, New York (June 20, 2008, 12:00 AM EDT) -- As the blackout-prone summer months approach, the U.S. Federal Energy Regulatory Commission has added teeth to its electric reliability regulatory regime, approving “Violation Severity Levels” that adjust penalties based on the degree to which producers violate federal standards.

On Thursday, the commission approved severity levels suggested in March by the North American Electric Reliability Corp., the FERC-created nonprofit that possesses electric reliability oversight responsibilities and regulatory jurisdiction over eight regional organizations.

The VSLs combine with FERC's “Violation Risk Factors” to make up a matrix that details...
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