Commissioner Moeller Statement May 4, 2012 Docket No. FA11-21-000

The NERC Audit Report

"Today, a delegated letter order announced the Office of Enforcement’s audit findings and recommendations of the North American Electric Reliability Corporation (NERC), the nation’s Commission-certified Electric Reliability Organization. The Commission’s audit staff has extensive experience conducting financial performance audits. However, this is staff’s first financial performance audit of NERC, an enterprise that is set apart by its responsibility under Section 215 of the Federal Power Act to develop and enforce reliability standards for the bulk-power system. In the report, Commission staff found eleven areas where performance could be enhanced, which resulted in forty-two audit recommendations. NERC’s objections to these findings and recommendations are substantial. Should NERC determine that some of these matters would benefit from Commission review, they now have 30 days to request such review. I look forward to receiving additional insight from this report, now that it has been released, and receiving any further information and feedback from NERC on the outcome of staff’s audit.”