On November 13, FERC cleared 564 enforcement cases that the North American Electric Reliability Corporation (NERC) had presented to the agency for reliability rule violations. Most of the violations were “self-reported” and were assigned low or medium risk factors, the most common being failure to develop sabotage reporting procedures, with the second leading violation being failure to implement maintenance and testing programs. NERC and the Regional Entities assessed monetary penalties to eight violators that had a total of 23 violations (4% of the all violations), amounting to $91,000 in fines.

Nearly 81% of the violations originated with entities registered in the Western Electricity Coordinating Council (WECC), which covers an area from Canada to Mexico and all or portions of the 14 western states. WECC is largest of the eight Regional Entities. NERC charges Regional Entities, like WECC, with the responsibility for coordinating and promoting bulk electric system reliability in its area. Pursuant to that authority, WECC may assess notices of violation, however NERC must file notice of the assessed penalties with FERC before the penalties can take legal effect. This oversight requirement exists because NERC is a independent, non-profit organization charged with designing and implementing legally enforceable reliability standards.

FERC’s November 13 order clearing the enforcement actions suggests that FERC will deal with minor infractions — ones not involving intentional or concealed violations — administratively.