On February 14, 2011, the Commission submitted their Fiscal Year (“FY”) 2012 Budget Request for $304,600,000.  The budget request represents a 2.8 percent increase over the 2010 actualized numbers, and that amount equals $8,303,000.  The oil industry is the one industry to show a decrease in the Commission budget allotment, and it dropped by 0.6 percent or $7,656,000 for FY 2012. 

On January 24, 2011, the Federal Energy Regulatory Commission (“FERC” or the “Commission”) issued an order (“January 24 Order”) denying requests for rehearing of their December 17, 2009 order (“December 17 Order”) which authorized the Secretary of the Commission (“Secretary”) to issue a document entitled Staff’s Preliminary Notice of Violations. 

On January 12, 2011, the U.S. Government Accountability Office (“GAO”) released a report entitled “Electricity Grid Modernization: Progress Being Made on Cybersecurity Guidelines, but Key Challenges Remain to be Addressed” (the “Report”).  This Report highlighted key issues which could cause concern for the smart grid system and identified regulatory problems affecting smart grid cybersecurity standards.

On January 20, 2011, the Federal Energy Regulatory Commission (“FERC” or the “Commission”) posted a report  by the Lawrence Berkeley National Laboratory (“LBNL”) called “Use of Frequency Response Metric to Assess the Planning and Operating Requirements for Reliable Integration of Variable Renewable Generation” along with its five supplementary papers (together, the “Report”). 

On January 20, 2011, the Federal Energy Regulatory Commission (“FERC” or the “Commission”) conditionally approved the Violation Risk Factors (“VRF”) and Violations Severity Levels (“VSL”) for version 2 and 3 of the Critical Infrastructure Protection (“CIP”) reliability standards.  The CIP standards encompass many security concerns including sabotage reporting and cyber security.