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NERC matters: NERC enforcement needs improvements
Authors:Deborah Carpentier
Affiliation:Deborah Carpentier: (carpentierd@dicksteinshapiro.com) is a partner in Dickstein Shapiro LLP's Energy Practice. She focuses primarily on federal regulatory and transactional energy issues for electric utilities and natural gas companies in matters before the Federal Energy Regulatory Commission (FERC) and the North American Electric Reliability Corporation (NERC). This article is provided by Dickstein Shapiro LLP only for educational and informational purposes and is neither intended as nor should it be construed as legal advice. This article may be considered advertising under applicable state laws.
Abstract:When the North American Electric Reliability Corporation (NERC) and its regional entities began enforcing mandatory reliability standards, every potential violation, regardless of the potential risk to the Bulk Power System (BPS), was generally prosecuted. Although many of these violations were assessed zero or nominal penalties, the resources expended in their prosecution were substantially the same as those used for the prosecution of higher-risk violations, not only by the regional entity, but also by NERC and registered entities.
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