News 
2005
| Statement: November 17, 2005 |  View Printable PDF Version |
| Docket Number: PL06-4-000 |
Statement of Chairman Joseph T. Kelliher on establishing
a clearer "No Action" letter process
"Congress gave the Commission significant penalty authority
in the Energy Policy Act of 2005. This regulatory tool will help
the Commission discharge its historic duty to prevent unjust and
unreasonable rates and to prevent undue discrimination or preference.
"The Commission has been careful in the way it proposes to
exercise this new authority, as reflected in the Enforcement Policy
Statement we approved last month. The Enforcement Policy Statement
is drawn from the experience of other agencies, such as the Securities
and Exchange Commission, Commodity Futures Trading Commission,
and the Justice Department.
"Our purpose is firm, but fair enforcement of our rules and
regulations. I want to be clear: the Commission's goal is compliance.
We recognize we have a duty to be clear on what the rules are.
Compliance should not be elusive, it should not be subjective;
it should be objective to the greatest extent possible.
"In a perfect world, the Commission is clear on what the
rules are, and there is universal compliance. In a less perfect
world, the Commission is clear on what the rules are, there is
near-universal compliance, and violations are quickly identified
and sanctioned. I do recognize that, in many instances, our rules
are not perfectly clear and, in such instances, we must work with
industry and the regulated community to resolve ambiguities.
"To this end, the Commission today interprets its regulations
to allow the regulated community to obtain staff "no action" letters,
effective immediately, with respect to whether staff will recommend
the Commission take no enforcement action with respect to certain
proposed transactions, practices, or situations that may raise
under the Commission's regulations relating to Standards of Conduct,
Market-Based Rates, or anti-manipulation rules, when finalized.
"This approach is modeled on the "no action" letter process
used by SEC and CFTC.
"The potential risks of failure to comply with the Commission's
requirements increased significantly on August 8, 2005, with enactment
of EPAct. EPAct greatly expanded the Commission's civil penalty
authority.
"While we intend to exercise our expanded enforcement authority
diligently, we also intend to exercise our new authority fairly.
"Our goal is to facilitate compliance and quickly identify
and sanction noncompliance. Greater clarity in our rules is necessary
to accomplish that goal."
| View Printable PDF Version |
