What to do if you get an unwanted
call from FERC enforcers?

It can and will happen to someone.
        What should you do if you find you're about to be audited or about to become the subject of a FERC probe?
        FERC has been laying a lot of groundwork in the area of penalties.
        We think FERC is serious about the new authority Congress gave the agency last August under EPACT.
        It's not just doodling around.
        Congress was serious when it gave the agency penalty power up to $1 million/day. That's a lot of zeros.
        But what size should penalties be?
        Morgan Lewis Energy Resources Group has recently updated its earlier version of the book to guide marketers or utility leaders who may get an unwanted call from FERC.
        It's circulated about 500 copies of its FERC Compliance manual, "a legal and business guide."
        The book covers electric and gas industries. Crisis management is a critical part of the book.
        Morgan Lewis’ William Hederman stressed the importance of stopping automatic destruction of materials.
        A lot of things have been going on not just in capacity release, Hederman has told us. He developed the FERC compliance program at FERC.
        The court remand on standards of conduct, is a major issue too.
        Originally published in Restructuring Today on January 18, 2007

Ron Cerniglia out

The New York PSC would not confirm or deny reports that its Office of Retail Market Development has been dissolved.
        Word nevertheless has been spreading fast.
        The office was created in December 2003 to help foster a level playing field for market participants and providing customers - large and small - with information they need to choose a supplier.
        New York was the first state to create such an office - though it's been copied in New Jersey, Michigan, Texas and soon in Illinois where lawmakers passed a law last year that requires it.
        It was headed by Ronald Cerniglia who at one time had up to 30+ people working for him fostering markets. New Gov Eliot Spitzer had picked Angela Sparks-Beddoe of Energy East (RT, 1/8) to head his transition team.
        Originally published in Restructuring Today on January 19, 2007