Regulatory Compliance Officer Regulatory Compliance Administrator by alicejenny

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									 Overview of Tampa
Electric’s Compliance
       Program
    APPA Reliability Standards and
       Compliance Program
         January 10, 2007
Key Elements of Reliability
Compliance Framework
   Design of program will be in the
    context of Federal regulatory and
    legal precedent on compliance
   Program framework will be
    consistent with other compliance
    programs
   Business unit has responsibility and
    accountability for managing program
   Independent oversight of program by
    Regulatory Compliance Officer
    responsible for all compliance
    programs
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FERC – Transitioning from Regulation
of Services to Regulation of Behavior
   FERC has begun discharging their legal
    duties by setting rules of general
    application (behavior)
   EPAct of 2005 and enabling FERC
    regulations
       Expanded FERC’s Civil penalty to cover
        violations over any provision of Part II of the
        FPA
       Increased civil penalty authority to $1M/day
            Policy Statement on Enforcement
            December 21, 2006 Administrative Policy
       Expanded scope of criminal provisions of FPA,
        NGA and NGPA & increased maximum fines &
        imprisonment time
   Clear message – enhancement & creation
    of compliance programs based on FERC
    Enforcement Policy & the Federal
    Sentencing Guidelines                                 3
FERC Policy Statement on
Enforcement
   Factors guiding the selection of
    enforcement remedies
   Credit for internal compliance, self-
    reporting & cooperation
   Adopts or references enforcement policies
    of other agencies
       DOJ Federal Sentencing Guidelines
       Commodity Futures Trading Commission
        (CFTC)
       Securities & Exchange Commission (SEC)
   Evolvement of FERC enforcement rules
       A journey but FERC will use existing
        enforcement policies of the above agencies as a
        benchmark

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Federal Sentencing
Guidelines
       No established body of law interpreting
        FERC’s new policy
       Guidelines represent critical history to
        benchmark FERC compliance programs
         Incorporates U.S. Sentencing Commission
          premise that it would not be fair to impose
          harsh fines on organizations that had taken all
          reasonable steps to prevent criminal conduct
       Guidelines establish criteria for an
        effective compliance program
       Guidelines are currently used in the
        industry as the basis for Corporate
        Compliance Programs

                                                        5
Federal Sentencing Guidelines –
Compliance Program Criteria
   Periodic risk assessments
   Standards & procedures to prevent/detect unlawful
    conduct
   Directors’ program oversight responsibility
   Senior officer(s) program responsibility
   Specific individual delegated day-to-day operational
    responsibility
   Background checks at hire & promotion
   Communication of standards & procedures
   Auditing & monitoring, including internal reporting
    mechanisms
   Periodic evaluation of the program
   Promote and enforce the program consistently
   Respond appropriately to violations to prevent
    future occurences

                                                       6
Compliance Programs

   Standards of Conduct (SOC)
   Open Access transmission Tariff
    (OATT)
   Reliability Standards
   FERC Anti-Manipulation
    Regulations (AMR)



                                  7
Compliance Programs

   North American Energy Standards
    Board (NAESB)
       NERC cousin - business practices


   Tariff and Other Matters
       MBR & Cost Based Tariffs
       PUCHA Section 203
       Interlocking Directorates
       Periodic Reports & Filings

                                           8
Regulatory Compliance Framework
              Regulatory Compliance Officer




            Regulatory Compliance Administrator



   Specific Compliance Program Administrators & Support
 SOC      Reliability     AMR       Tariff & Other   Compliance
 OATT                                  Matters        Counsel
NAESB   Transmission &
          Generation
           Standards

        Cyber-security
          Standards
Implementing the Regulatory
Compliance Program
   Written delegation from Compliance Officer
    to specific program administrators (job
    descriptions)
       Each Program Administrator will have primary
        responsibility and accountability for managing
        their compliance area
   Common template for each compliance
    area
       Written procedures
       Audit & Monitoring
       Training
       Above items developed, revised and maintained
        by Program Administrators

                                                         10
Regulatory Compliance
Program Process
   Quarterly reports developed for
    Regulatory Compliance Officer
   Coordination with TECO Energy
    Corporate Compliance Program
   Administration of compliance
    programs overseen by
    Regulatory Compliance
    Administrator
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Reliability Program Next Steps
– “Devil in the Detail”
• Integrate into existing company compliance
  structures as previously discussed
• Outreach and education
• Make individual employees accountable for
  each requirement
• Determining what standards are applicable
  - NERC functional model registration
• Identifying what constitutes compliance for
  each standard and requirement
    •   118 standards, 1234 requirements!




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QUESTIONS?


 Greg Ramon
 gjramon@tecoenergy.com
 813-228-4469




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