FERC rejects EME enforcement interventions

Washington, D.C., Oct. 7, 2008 — The Federal Energy Regulatory Commission (FERC) denied motions to intervene filed in the wake of a May 19, 2008 order approving a stipulation and consent agreement that required Edison Mission Energy to pay $7 million in penalties, and implement a new comprehensive regulatory compliance plan at an estimated cost of $2 million, to resolve conduct that occurred during an investigation conducted by the Office of Enforcement.

The order denies motions to intervene, and dismisses requests for rehearing, filed by the Public Service Commission of Maryland, the Illinois Attorney General’s office, the National Rural Electric Cooperative Association, and a joint group of power purchasers, state commissions, and state and private consumer advocates called “Joint Intervenors.” The order also denies the motion to intervene and rejects the arguments raised by the Illinois Commerce Commission.

The order explains FERC’s longstanding precedent for allowing interventions in enforcement proceedings. Based on this precedent, there is no right to intervene, and the commission will grant intervention only in exceptional circumstances, the commission said. In this case, FERC concluded the intervention requests misstated commission precedent. Applying that precedent correctly, the requests for intervention fall far short of the standard established in prior cases, said FERC. FERC policy with respect to intervention is consistent with the practice of other federal regulatory agencies.

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