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On December 9, 2011, FERC issued a stipulation and consent agreement between the Commission’s Office of Enforcement (“Enforcement”) and Atmos Energy Corporation (“Atmos”), the parent company of Atmos Energy Marketing, Inc. (“AEM”) and Trans Louisiana Gas Pipeline, Inc. (“Trans La”) assessing a civil penalty of $6,364,029 and ordering the disgorgement of $5,635,971, plus interest for the unjust profits from shipper-must-have-title violations.

On October 27, 2011, the Commission held a Technical Conference on last September’s Revised Policy Statement on Penalty Guidelines.   Overall, various members from the Energy industry provided feedback to the Commission, and the industry representatives repeatedly asked for: (1) increased transparency, (2) more communication, (3) more detail on what exactly comprises an effective compliance program, and (4) what determines a penalty amount. 

On November 3, 2011, the Director of the Office of Energy Projects for FERC issued a delegated order dismissing the uncontested application of Pivotal LNG, Inc. (“Pivotal”) for a limited jurisdiction blanket transportation certificate, under section 7(c) of the Natural Gas Act (“NGA”), in order to own and operate a liquefied natural gas (“LNG”) facility in support of its non-jurisdictional LNG fuel business.

In a case that highlights some of the regulatory challenges presented by shifts in the nation’s generation mix, on October 20, 2011, the Federal Energy Regulatory Commission (“FERC” or the “Commission”) accepted Puget Sound Energy, Inc.’s (“Puget”) proposed Schedules 3 and 13 concerning rates for Regulation and Frequency Response Service, but suspended them for a five-month period, to become effective January 5, 2012, subject to refund, and set them for hearing and settlement judge procedures.

On October 24, 2011, the United States Court of Appeals for the Fifth Circuit (“5th Circuit” or the “court”) issued a decision granting the Texas Pipeline Association and the Railroad Commission’s (“Petitioners”) petition for review and vacating FERC’s Order Nos. 720 and 720-A.  In its order, the 5th Circuit held that Order Nos. 720 and 720-A exceeded the scope of FERC’ authority under the Natural Gas Act (“NGA”) of 1938.