Enforcement 
Outcome of Audits
From October 20, 2005, to November 14, 2007 staff completed 151 audits, comprised of 71 financial audits and 80 operational audits. Theses audits focused on the following topics:
- Multi-scope audits, which included a focus on at least two of these topics:
- Standards of Conduct,
- Code of Conduct,
- Open Access Transmission Tariffs,
- Fuel Adjustment Clause,
- Market Based Rate Authority,
- Electric Quarterly Reporting, and
- Records Retention
- Annual Charges
- Blanket Authorizations for Mergers and Acquisitions
- Electric Quarterly Reporting
- Independence
- Index of Customers
- Interlocking Directorates
- Inventory Accounting
- Market-based Rate Gas Storage Reporting
- FERC Form Nos. 1 and 2
- Nuclear Decommissioning
- Price Index
- Records Retention
These audits resulted in 319 recommendations to the companies audited and all of the recommendations have been implemented. These recommendations included structural and procedural changes in a variety of matters to improve compliance with Commission requirements.
In addition to the immediate corrective action taken on the audit recommendations, some audits have resulted in stringent compliance plans that required the creation of robust compliance programs. Generally, an audit results in a compliance plan when the recommendations made will be implemented over a long period of time. The purpose of compliance plans is to ensure that the company is focusing on compliance by implementing the recommendations and informing FERC staff of its progress. Staff tracks the companies’ performance with these compliance plans through quarterly compliance reports.
Each compliance plan is unique to the circumstances. Examples of the steps companies have taken as a result of a compliance plan include conducting periodic internal audits related to the areas of noncompliance, refunds, making corrective accounting entries, and filing tariff revisions.
