Transcript Federal Energy Regulation in the United States An Overview

Federal Energy Regulatory Commission
The
FERC Regulatory Process
Dennis H. Melvin, Esq.
Director – Legal Division (OAL)
Federal Energy Regulatory Commission
Washington, DC
Federal Energy Regulatory Commission
Question
• How does FERC decide what a
utility can charge and what
goes into a tariff?
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Federal Energy Regulatory Commission
How Does FERC Regulate?
• Industry-wide Decisions
– Notice of Inquiry (NOI)
– Notice of Proposed Rulemaking (NOPR)
– Final Rule or Policy Statement
• Company Specific Decisions
– Applications (rate increase, change in a term or
condition of a contract, etc.) or complaints filed by
utilities, customers, interested parties or state
commissions
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Company Specific Decisions
• Application or complaint filed
• Filing is publicly noticed
• Staff analysis and recommendation to
the Commission (tight deadlines)
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Federal Energy Regulatory Commission
Company Specific Decisions (con’t)
• Commission action
– Decide merits of case without further
procedures
– Hold a technical conference or call for
more written information
– Hold trial-type hearing before an
Administrative Law Judge
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Federal Energy Regulatory Commission
OAL
• Represents the public interest
• Only unbiased party
• The results we seek:
– Lowest rates consistent with a well-run
utility
– Non-discriminatory treatment for all
customers
– Opportunity for utility to earn a fair return
and compete
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Federal Energy Regulatory Commission
Settlements Are Important
• Prevents the legal system from being
overloaded
• Settlement allows for faster resolution of
disputes
• Parties are usually happier with a
settlement
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Adjudication Milestones
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1. Judge assigned and Procedural Track set
2. Prehearing/Discovery
3. Prepared Testimony
4. Pre Trial Brief
5. Hearing
6. Initial and Reply Briefs
7. Initial Decision
8. Exceptions Briefs
9. Commission Order & Rehearing
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Milestone One
• The Chief Judge will:
– Assign an Administrative Law Judge to the
case
– May indicate a deadline for decision
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Milestone Two
• Prehearing Conference
– Conducted by Presiding Judge assigned
– Scope and timetable to be determined
– Settlement urged, Trial Staff available
• Discovery
– Discovery concerns raised with ALJ
– Procedures established
– Wide range of options
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Discovery
• Information regularly filed with the agency
• Written questions and answers
• Subpoenas available
– Necessary if non-party data required
– Nationwide reach
• Depositions, Inspections, Audits
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Federal Energy Regulatory Commission
Protective Orders
• Intent is to safeguard confidential
information
• Order describes how confidential data is
to be handled
• Issued by the Judge
• Everyone must sign and agree to its
terms
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Federal Energy Regulatory Commission
Milestone Three
• Prepared Testimony
– Prefiled before the hearing
– May contain confidential information and
need special handling
– May be electronically filed
– Several rounds
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Milestone Four
• Pre Trial Brief
– Includes the theory of the case
– Evidence to be presented
– Summary of witnesses’ testimony
– Description of exhibits
– Legal foundation and precedent
– Weaknesses in presentations of others
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Milestone Five
• Hearing
– Can last one day to many months
– Witnesses sworn, direct testimony and
exhibits admitted, then cross-examination
– Confidential testimony requires special
procedures
– Written transcript made
– Judge ultimately decides admissibility of
evidence
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Federal Energy Regulatory Commission
A Hearing Room at the FERC
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Another Hearing Room
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Milestone Six
• Initial and Reply Briefs
– Dates set by Presiding ALJ
– Simultaneous unless ordered otherwise
– Must not discuss evidence outside of the
record
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Federal Energy Regulatory Commission
Milestone Seven
• Initial Decision
– Usually summarizes evidence and
arguments
– Published in FERC Reports
– Certified to Commission with the record
– Always subject to Commission review
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Milestone Eight
• Briefs On and Opposing Exceptions
– 30 days after ID, 20 days thereafter
– Must be less than 100 pages
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Milestone Nine
• Commission Order & Rehearing
– No deadlines on Commission action on
Judge’s ruling
– Published in FERC Reports
– Rehearing request must be filed within 30
days
– Further appeals can be made to the court
system
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Federal Energy Regulatory Commission
Thank you for your attention !
• Dennis H. Melvin, Esq.
» Director, Legal Division
» Office of Administrative Litigation
» Federal Energy Regulatory Commission
» 888 First Street, NE
» Washington, DC 20426
» (202) 502-8042 : Phone
» (202) 208-0188 : FAX
» [email protected]
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