I don't think any of you fully understand the amount of regulation and scrutiny involved in the power industry today.
You do not want to be caught doing maintenance or anything else that will affect reliability during high demand periods and if you should happen to trip and go offline it isn't long before the regulators are onsite doing an investigation.
The penalty is a very large fine and possible prison time for screwing with NERC (North American Electric Reliability Corporation) and FERC (Federal Energy Regulatory Commission). Most plant managers that I know don't really want to take any risks that would put them in jail.
I work for a company that is listed below with a multi-million dollar fine and I can assure you that the ones involved are no longer employed.
From a compliance and enforcement perspective, the remedial authority affirmed by the
court must be considered in conjunction with the enhanced penalty authority granted to FERC by
the Energy Policy Act of 2005. Under that authority, FERC now also can impose civil penalties
of up to $1 million per day per violation; criminal penalties of a fine of up to $1 million and/or
up to 5 years in prison also may be imposed. Together, FERC’s Section 309 remedial authority
and its civil penalty authority highlight the need to prevent violations and to take other
measures to minimize the impact should such violations occur.
Federal regulators levy $350,000 fine for massive FPL blackout. The Federal Energy Regulatory Commission announced today that it would levy a second fine for the FPL outage in 2008 that left millions of people without power.
In Re Noble Energy, Inc., 130 FERC ¶ 61,175 (March 12, 2010) $4,000,000 Civil Penalty $160,487 Disgorgement Civil penalty and compliance reporting resulting from violations of open access transportation policies, including circumvention of the posting and bidding requirements for released capacity, flipping, the shipper-must-have-title requirement, and violations of the prohibition on buy-sell transactions.
Florida Blackout, 130 Ferc ¶ 61,163 (March 5, 2010) $350,000 Civil Penalty Civil Penalty Resulting From Violations Of Mandatory Reliability Standards For The Bulk-Power System, Order No. 693, FERC Stats. & Regs. ¶ 31,242 (2007).
Florida Blackout, 129 FERC ¶ 61,061 (October 8, 2009) $25,000,000 Civil Penalty Civil penalty resulting from violations of Mandatory Reliability Standards for the Bulk Power System Order No. 693, FERC Stats & Regs 31,342 (2007).
Energy Transfer Partners, L.P., 128 FERC ¶ 61,269 (September 21, 2009) $5,000,000 Civil Penalty
$25,000,000 Disgorgement Civil penalty resulting from violations of market behavior rule 18 C.F.R. §284.403(a) (2005).
Enserco Energy, Inc., 128 FERC ¶ 61,173 (August 24, 2009) $1,400,000 Civil Penalty Civil penalty resulting from violations of the Commission's open access transportation program, including, improper release and acquisition of discounted rate capacity through flipping transactions, and violations of the shipper-must-have-title requirement.
In re Amaranth Advisors., et al 128 FERC ¶ 61,154 (July 8, 2009) $7,500,000 Civil Penalty Civil penalty resulting from violations of 18 C.F.R. §1C.1 (Natural Gas Anti-Market Manipulation Rule).
In re Southern Company Services, Inc., 128 FERC ¶ 61,013 (July 8, 2009) $350,000 Civil Penalty Civil penalty and compliance reporting resulting from violations of buy-sell transactions and shipper-must-have-title requirements.
In re Wasatch Oil & Corp. and Wasatch Energy LLC, 127 FERC ¶ 61,322 (June 30, 2009) $320,000 Civil Penalty Civil penalty and compliance reporting resulting from violations of §284.8(h) posting and bidding requirements, improper release and acquisition of discounted rate capacity through flipping transactions.
In re ProLiance Energy, LLC, 127 FERC ¶ 61,321 (June 30, 2009) $3,000,000 Civil Penalty $195,959.44 Disgorgement Civil penalty and compliance reporting resulting from violations of §284.8(h) posting and bidding requirements, improper release and acquisition of discounted rate capacity through flipping transactions, violations of shipper-must-have-title requirements and violations of buy-sell transaction rules
In re Sequent Energy Management, L.P. and Sequent Energy Marketing, L.P., 127 FERC ¶ 61,320 (June 30, 2009) $5,000,000 Civil Penalty $53,728.18 Disgorgement Civil penalty and compliance reporting resulting from violations of §284.8(h) posting and bidding requirements, improper release and acquisition of discounted rate capacity through flipping transactions, violations of shipper-must-have-title requirements and violations of buy-sell transaction rules.
In re Piedmont Natural Gas Co. Inc., 127 FERC ¶ 61,319 (June 30, 2009) $1,250,000 Civil Penalty Civil penalty and compliance reporting resulting from violations of §284.8(h) posting and bidding requirements, improper release and acquisition of discounted rate capacity through flipping transactions.
In re Puget Sound Energy, 127 FERC ¶ 61,070 (April 22, 2009) $800,000 Civil Penalty Civil penalty and compliance reporting resulting from violations of 18 C.F.R. §284.8(h) posting and bidding requirements, improper release and acquisition of discounted rate capacity through flipping transactions and self-reported violations of shipper-must-have-title requirements.
In re Anadarko Petroleum Corp., 127 FERC ¶ 61,069 (April 22, 2009) $1,100,000 Civil Penalty $232.423.40 Disgorgement Civil penalty, disgorgement and compliance reporting resulting from violations of 18 C.F.R. §284.8(h) posting and bidding requirements, improper release and acquisition of discounted rate capacity through flipping transactions.
In re Louisville Gas and Electric Co., 127 FERC ¶ 61,068 (April 22, 2009) $350,000 Civil Penalty Civil penalty and compliance reporting resulting from violations of 18 C.F.R. §284.8(h) posting and bidding requirements, improper release and acquisition of discounted rate capacity through flipping transactions.
In re Jefferson Energy Trading, LLC, Wizco, Inc., Golden Stone Resources, LLC, 126 FERC ¶ 61,040 (January 15, 2009) $585,000 Civil Penalty Civil penalty and compliance reporting resulting from violations of 18 C.F.R. § 1c.1, in connection with an attempt to engage in multiple affiliate bidding to impair the pro rata allocations in an auction.
In re Klabzuba Oil & Gas, F.L.P., 126 FERC ¶ 61,040 (January 15, 2009) $300,000 Civil Penalty Civil penalty and compliance reporting resulting from violations of 18 C.F.R. § 1c.1, in connection with an attempt to engage in multiple affiliate bidding to impair the pro rata allocations in an auction.
In re ONEOK, Inc., 126 FERC ¶ 61,040 (January 15, 2009) $4,500,000 Civil Penalty
$1,914,945 Disgorgement Civil penalty, disgorgement and compliance monitoring resulting from violations of 18 C.F.R. § 1c.1, in connection with the submission of multiple affiliate bids to impair the pro rata allocation mechanism in an auction. Also violations of shipper-must-have-title requirements and open access transportation requirements.
In re Tenaska Marketing Ventures, 126 FERC ¶ 61,040 (January 15, 2009) $3,000,000 Civil Penalty
$1,972,842 Disgorgement Civil penalty, disgorgement and compliance monitoring resulting from violations of 18 C.F.R. § 1c.1, in connection with the submission of multiple affiliate bids to impair the pro rata allocation mechanism in an auction.
In re DCP Midstream, LLC, 125 FERC ¶ 61,359 (December 23, 2008) $360,000 Civil Penalty Civil penalty and compliance monitoring reporting resulting from self-reported violations of the shipper-must-have-title requirement.
Sempra Energy Trading LLC, 125 FERC ¶ 61,360 (December 23, 2008) $400,000 Civil Penalty
$7,959 Disgorgement Civil penalty, disgorgement, and compliance monitoring reporting resulting from self-reported violations of the shipper-must-have-title requirement.
In re Cornerstone Energy, Inc., 125 ¶ FERC 61,234 (November 26, 2008) $325,000 Civil Penalty
$121,825 Disgorgement Civil penalty and disgorgement resulting from self-reported violations of the shipper-must-have-title requirement.
In re NorthWestern Corporation and NorthWestern Services, LLC., 125 FERC ¶ 61,233 (November 26, 2008) $450,000 Civil Penalty Civil penalty and compliance monitoring reporting resulting from self-reported violations of the shipper-must-have-title requirement and failure to obtain a certificate of public conveyance and necessity under section 7of the NGA.
In re Integrys Energy Services, Inc., 125 FERC ¶ 61,089 (October 24, 2008) $800,000 Civil Penalty
$194,506 Disgorgement Civil penalty, disgorgement, and a 1 year compliance monitoring plan resulting from a self-report for violations of shipper-must-have-title requirements and circumvention of the posting and bidding requirements for released capacity.
In re Enbridge Marketing (U.S.) L.P., 125 FERC ¶ 61,088 (October 24, 2008) $500,000 Civil Penalty Civil penalty and compliance report resulting from self-reported violations of the shipper-must-have-title requirement.
In re Duquesne Light Company, 123 FERC ¶ 61,221 (May 29, 2008) $250,000 Civil Penalty
$1,000,000 Compliance Plan Civil penalty and at least $1,000,000 designated for a comprehensive compliance plan for violations of FERC cost allocation procedures, the electric quarterly report filing requirement, and the standards of conduct.
In re Edison Mission, 123 FERC ¶ 61,170 (May 19, 2008) $7,000,000 Civil Penalty
$2,000,000 Compliance Plan Civil penalty and at least $2,000,000 designated for a comprehensive compliance plan for violations of 18 C.F.R. § 35.41(b) (2007), which imposes a duty to provide accurate, factual, and complete information in communications with the Commission upon electric power sellers authorized to engage in sales for resale of electric energy at market based rates.
In re Entergy New Orleans, Inc., 122 FERC ¶ 61,219 (March 11, 2008) $400,000 Civil Penalty Civil penalty resulting from self-reported violations of the Commission’s shipper-must-have-title requirement.
In re Constellation NewEnergy – Gas Division, LLC, 122 FERC ¶ 61,220 (March 11, 2008) $5,000,000 Civil Penalty
$1,899,416 Disgorgement Civil penalty, disgorgement, and a compliance monitoring plan resulting from self-reported violations of the Commission’s capacity release policies, including circumvention of the posting and bidding requirements for released capacity, violations of the shipper-must-have-title requirement, and violations of the prohibition on buy-sell transactions.
In re BP Energy Company, 121 FERC ¶ 61,088 (October 25, 2007) $7,000,000 Civil Penalty Civil penalty and compliance monitoring plan resulting from self-reported violations of competitive bidding regulations, shipper-must-have-title requirement, and prohibition on buy/sell arrangements.
In re MGTC, Inc., 121 FERC ¶ 61,087 (October 25, 2007) $300,000 Civil Penalty Civil penalty and compliance report resulting from self-reported violations of the shipper-must-have-title requirement.
In re Gexa Energy, L.L.C., 120 FERC ¶ 61,175 (August 21, 2007) $500,000 Civil Penalty
$12,481.41 Disgorgement Civil penalty and disgorgement resulting from a self- report of violations of the FPA.
In re Cleco Power, LLC, et al., 119 FERC ¶ 61,274 (June 12, 2007) $2,000,000 Civil Penalty Civil penalty and a 1-2 year compliance plan resulting from a self-report for a violation of a 2003 Settlement agreement by sharing 9 employees and sharing prohibited market information between different Cleco companies.
In re Columbia Gulf Transmission Company, 119 FERC ¶ 61,174 (May 21, 2007) $2,000,000 Civil Penalty Civil penalty resulting from a Commission referral for a violation of a Commission order to allow installation of a receipt interconnection.
In re Calpine Energy Services, L.P., 119 FERC ¶ 61,125 (May 9, 2007) $4,500,000 Civil Penalty Civil penalty and a 1-2 year compliance plan resulting from a self-report for violations of shipper-must-have-title requirements.
In re Bangor Gas Company, 118 FERC ¶ 61,186 (March 7, 2007) $1,000,000 Civil Penalty Civil penalty and a 1 year compliance plan resulting from a self-report for violations of shipper-must-have-title requirements.
In re PacifiCorp, 118 FERC ¶ 61,026 (January 18, 2007) $10,000,000 Civil Penalty Civil penalty and a 1 year compliance plan resulting from a self-report for violations of OATT and Standards of Conduct.
In re SCANA Corporation, 118 FERC ¶ 61,028 (January 18, 2007) $9,000,000 Civil Penalty
$1,800,000 Disgorgement Civil penalty, disgorgement, and a 1 year compliance plan resulting from a self-report for violations of OATT.
In re Entergy Services, Inc., 118 FERC ¶ 61,027 (January 18, 2007) $2,000,000 Civil Penalty Civil penalty and a 1-2 year compliance plan resulting from a self-report for violations of OATT and Standards of Conduct OASIS posting requirements.
In re NorthWestern Corporation, 118 FERC ¶ 61,029 (January 18, 2007) $1,000,000 Civil Penalty Civil penalty and a 2 year compliance plan resulting from a hotline call for violations of Business Practice Standards for OASIS Transactions.
In re NRG Energy, Inc., 118 FERC ¶ 61,025 (January 18, 2007) $500,000 Civil Penalty Civil penalty and a 1 year compliance plan resulting from a self-report for violations of ISO-NE Market Rule 1 and the Commission’s Market Behavior Rules 1 and 3.