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FRCC Settlement and Hearing Process. FRCC 2008 Compliance Workshop. Settlement Process. Settlement Negotiations may occur at any time. including prior to issuance of a notice of Alleged Violation and up to a notice of penalty is filed at FERC. Settlement negotiations are confidential.
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FRCC Settlement and Hearing Process FRCC 2008 Compliance Workshop
Settlement Process • Settlement Negotiations may occur at any time. • including prior to issuance of a notice of Alleged Violation and up to a notice of penalty is filed at FERC. • Settlement negotiations are confidential. • until it is approved by NERC. • Registered Entity must designate an individual authorized to negotiate on its behalf. • Settlements must provide for waiver of the Registered Entity’s right to further hearings and appeal.
Settlement Process • FRCC will issue letter (settlement agreement) setting forth terms, including all penalties, sanctions and mitigation requirements. • FRCC will report terms of settlement to NERC. • Does not have to include admission of guilt. • NERC will review for consistency with other settlements for similar violations. • NERC will approve or reject and if rejected, based on NERC’s concerns, FRCC will attempt to negotiate a revised settlement agreement.
Settlement Process • NERC will report approved Settlement to FERC. • NERC will publicly post the violation settled, resulting penalty or sanction and a copy or description of the settlement terms. • Registered Entity may provide a statement to NERC to accompany the report when posted.
Hearing Process • NERC requires, through its Rules of Procedure, that FRCC establish and maintain a fair, independent, and non-discriminatory process for hearing contested violations and penalties or sanctions levied. • The hearing process must allow a Registered Entity to contest both findings of compliance violations and penalties and sanctions that are levied.
Hearing Process • FRCC’s Hearing Body is the Board of Directors Compliance Committee (BCC). • The BCC consists of one member of each of the 6 sectors of FRCC who shall be a member of the FRCC Board of Directors. • The BCC may elect to use a Hearing Officer to preside over hearing. • Actions are subject to authority of BCC.
Hearing Process • If a Registered Entity does not contest or respond to a notice of allegedviolation in 30 days, they shall be deemed to have accepted the determination of violation and penalty (if applicable). • To contest, a written statement explaining their position, signed by an officer (or equivalent) must be submitted. • FRCC will schedule a conference with the Registered Entity within 10 business days to try and seek resolution of the issues.
Hearing Process • If the Registered Entity and the FRCC are unable to resolve the issue within 40 days, the Registered Entity may request a Hearing. • The hearing request shall state if the Registered Entity desires the shortened or full hearing procedure. • FRCC Compliance Staff must agree with request for shortened procedure within 5 days. • If no hearing request is made within 10 business days, the violation will become a Confirmed Violation when filed by NERC with FERC.
Hearing Process • When a request for hearing is received, the FRCC shall issue a notice of hearing within 7 business days. • Notice will indentify the Hearing Officer (if known), and the date and time for a prehearing conference. • The Registered Entity may object to any member of the BCC or the Hearing Officer on grounds of a conflict of interest. • Objection shall be filed within 15 days of notification.
Shortened Hearing Process • Pre-hearing conference within 7 business days • Staff position filed within 21 business days • Registered Entity response filed within 14 business days • Staff reply comments files within 7 business days • Hearing Officer Initial Opinion within 21 business days
Shortened Hearing Process Does not include: • Evidentiary Hearing • No Witness Testimony • No filed briefs, except “brief on exception” to Hearing Officer initial opinion Objective of BCC is to issue final order within 90 days of the notice of hearing.
Full Hearing Process • Much longer time frame. • Includes availability to seek interlocutory review on any ruling of the Hearing Officer with the BCC. • Participants will file written appearances identifying names of individuals authorized to represent them. • Provides ability to combine hearings of more than one Registered Entity that receive Notice of Alleged Violation for the same event or transaction.
Full Hearing Process • Prehearing Procedure • Time limits are waived • Prehearing Conference to identify issues and develop schedule • Ability to issue Summary Disposition, Status Hearing and Motions • Ability to inspect and copy Staff documents • Availability of other discovery procedures • Submission of Testimony & Evidence
Full Hearing Process • Evidentiary Hearing Procedure • Purpose is to admit evidence into the record. • Opening and closing statements allowed on exception basis. • Evidence offered in form of an exhibit. • Compliance Staff first, Registered Entity second. • Witness shall attend in person. • Each participant has right to cross-examination. • Stipulations of fact allowed, but must be in writing. • Hearing Officer will designate time to close record.
Full Hearing Process • Post-Evidentiary Hearing Procedure • Participants may file initial and reply briefs. • Post-hearing pleadings allowed, but no new evidence permitted. • Hearing Officer issue Initial Opinion. • Participants may file exceptions to the Initial Opinion. • BCC may elect to hear oral argument. • BCC Final Order
NERC Appeals • When all FRCC hearing options have been exhausted, the Registered Entity may appeal the Final Order of the BCC to NERC.