Washington Energy Report > Troutman Sanders LLP

FERC Staff Answers NERC Accusations Regarding Audit Report

On May 23, 2012, Staff from FERC’s Office of Enforcement submitted a response to supplement the record in its financial performance audit of the North American Electric Reliability Corporation (“NERC”) and refuted claims by NERC that Staff “refused to meet with NERC” and “failed to act in good faith.”  FERC Staff also contested NERC’s claims that Enforcement did not provide an opportunity to review revised recommendations.    

In its response, Staff argued that it followed the routine audit procedures which “staff has consistently followed for decades.”  Staff indicated that in its financial performance audit of NERC, it sought to engage NERC on its draft findings and recommendations in the draft report issued on March 23, 2012, but NERC ”refused substantive communications despite Enforcement staff’s continuing efforts to maintain them.”  Staff cited “repeated” attempts to engage NERC in “substantive dialogue” concerning audit findings and recommendations, and produced email correspondence between staff and NERC personnel.  Staff also said it gave NERC additional time to provide an official response to the draft audit report, and there were subsequent efforts to elicit substantive feedback from NERC.

A copy of Staff’s response is available here.