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Regulatory Compliance

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Regulatory Compliance Powered By Docstoc
					 Overview of Tampa
Electric’s Compliance
       Program
  FRCC’s Compliance Enforcement and
         Monitoring Program
         April 4 and 11, 2007
Key Elements of 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
   In most cases, 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
   Clear message – enhancement & creation
    of compliance programs based on FERC
    Enforcement Policy & the Federal
    Sentencing Guidelines

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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)
   Evolution 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

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Tie to Corporate Compliance
Program
   Antitrust
   Company Information and Records
   Credit, Collection, Customer Service
    and Purchasing
   Electric and Gas Economic Regulation
   Energy Risk Management
   Environmental
   General Risk Management and Safety
   Government Affairs
   Labor, Benefits and Employment
   Securities
   Taxes
                                           6
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 occurrences

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Compliance Programs

   Standards of Conduct (SOC)
   Open Access Transmission Tariff
    (OATT)
   Reliability Standards
   Marketing & Trading Rules (M&TR)
       Anti-Manipulation Regulations
       Market Based Rate Tariff
       OATT related trading procedures
       Price reporting

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Compliance Programs

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


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

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Regulatory Compliance Framework
              Regulatory Compliance Officer




            Regulatory Compliance Administrator



   Specific Compliance Program Administrators & Support
 SOC      Reliability    M&TR       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

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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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The Details – Education

   Director/Manager level training
   Topics
     Roles of NERC & FERC
     EPACT 2005

     Compliance Enforcement & Audits

     Standards 101

     Corporate Compliance Plan

     Compliance Documentation

     Standards Development Process
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The Details – Accountability
   Each Requirement and Sub-
    Requirement is assigned to a
    manager
   The Violation Risk Factor matrix
    was used as a template




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             EOP-001-0   R1.     Balancing Authorities shall have operating agreements with          HIGH    Donahey/Nordlinger
                                 adjacent Balancing Authorities that shall, at a minimum, contain
                                 provisions for emergency assistance, including provisions to
                                 obtain emergency assistance from remote Balancing
Emergency                        Authorities.
Operations
Planning




             EOP-001-0   R2.     The Transmission Operator shall have an emergency load             MEDIUM      Davis/Busot
                                 reduction plan for all identified IROLs. The plan shall include
                                 the details on how the Transmission Operator will implement
                                 load reduction in sufficient amount and time to mitigate the
                                 IROL violation before system separation or collapse would
                                 occur. The load reduction plan must be capable of being
                                 implemented within 30 minutes.




             EOP-001-0   R3.     Each Transmission Operator and Balancing Authority shall:          MEDIUM        Heading




             EOP-001-0   R3.1.   Develop, maintain, and implement a set of plans to mitigate        MEDIUM      Davis/Busot
                                 operating emergencies for insufficient generating capacity.


             EOP-001-0   R3.2.   Develop, maintain, and implement a set of plans to mitigate        MEDIUM      Davis/Busot
                                 operating emergencies on the transmission system.


             EOP-001-0   R3.3.   Develop, maintain, and implement a set of plans for load           MEDIUM      Davis/Busot
                                 shedding.
The Details - Documentation
   Compliance Template for Each
    Requirement
                    Tampa Electric Company
          NERC Reliability Standard Compliance Template

File Name: Compliance Template ABC-XXX-X RX[-RX]
Standard Name & Number:
Requirement Number(s):
Business Unit(s):
Responsible Department(s):
Date Completed:
Next Review Date:
Requirement:
Violation Risk Factor:
Compliance Statement:
Compliance Documents & Location:
Training Requirements (if applicable):

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                              Tampa Electric Company
                    NERC Reliability Standard Compliance Template

File Name:                           Compliance Template EOP-001-0 R1
Standard Name & Number:              EOP-001-0 Emergency Operations Planning
Requirement Number(s):               R1
Business Unit(s):                    Energy Delivery
Responsible Department(s):           Transmission Tariff & Contracts
Date Completed:                      February 16, 2007
Next Review Date:                    February 16, 2010

Requirement:             Balancing Authorities shall have operating agreements with
      adjacent Balancing Authorities that shall, at a minimum, contain provisions for
      emergency assistance, including provisions to obtain emergency assistance from
      remote Balancing Authorities.

Violation Risk Factor:               High

Compliance Statement: Tampa Electric has three types of operating agreements that
     include provisions to obtain emergency assistance from other Balancing
     Authorities. First, …

Compliance Documents & Location:
     FRCC Operating Reserve Policy – FRCC web site
     Tampa Electric Interchange Agreements – located at the Energy Control Center,
     Interchange Billing Department and online at
     \\TECO_TREE\.PLAZA6_SYS....\CONTRACTS

Training Requirements (if applicable): None Required

Additional Comments:

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The Details – Document
Maintenance
   All Compliance Templates and
    as many related documents as
    possible to be stored on a
    SharePoint site
   Documents are uploaded by the
    responsible managers
   The Compliance Manager
    approves all submissions
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QUESTIONS?
Greg Ramon
gjramon@tecoenergy.com
813-228-4469


Art Nordlinger
alnordlinger@tecoenergy.com
813-630-6203
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