As a follow-up to EPAct 2005's grant of significant civil penalty authority to FERC under the Federal Power Act (FPA), the Natural Gas Act and the Natural Gas Policy Act of 1978, FERC issued its Statement of Administrative Policy that explains how FERC will assess civil penalties (up to $1 million per day per violation) when it takes enforcement actions. In this regard, Chairman Kelliher stated that FERC "prefers settlement to litigation, particularly in regard to enforcement matters,...[h]owever, not all enforcement actions will result in settlement. In those instances, we are prepared to litigate." It is unclear whether this order and the Chairman's statements represent a sign of things to come in the enforcement arena.
(Docket No. AD07-4)