On December 5, 2024, the Federal Energy Regulatory Commission (“FERC”) approved Public Service Electric and Gas Company’s settlement agreement (“PSE&G”) to pay a $6.6 million civil penalty to resolve an ongoing investigation with FERC’s Office of Enforcement (“FERC Enforcement”). According to FERC’s order, the underlying investigation involved PSE&G’s alleged failure to provide full and accurate information when seeking approval from PJM Interconnection, L.L.C. (“PJM”) to replace a transmission line in New Jersey as part of the PJM Regional Transmission Expansion Plan (“RTEP”) process. PSE&G also agreed to submit to annual compliance monitoring for up to two years as part of the approved Stipulation and Consent Agreement (“Stipulation”).
Through its RTEP process, PJM evaluates transmission system needs using the North American Electric Reliability Corporation’s reliability planning standards, PJM planning criteria, and individual transmission owner planning criteria set forth in FERC Form No. 715, a report that PJM files annually with FERC on behalf of every transmission owner that operates transmission facilities at or above 100 kV within PJM. According to the Stipulation, PSE&G recommended that PJM approve a $546 million project to replace a transmission line in New Jersey as part of the RTEP process. In doing so, PSE&G submitted information about the condition of the transmission line to PJM, including through PowerPoint presentations, external consultant reports, external consultant data, and statements from PSE&G employees to PJM employees. Following a nonpublic, formal investigation, FERC Enforcement determined that PSE&G violated FERC’s market behavior regulations by failing to fully and accurately provide information to PJM about the transmission line at issue. PSE&G stipulated to the facts as outlined in the Stipulation, but did not admit nor deny the described violations.
As part of the Stipulation to resolve FERC Enforcement’s investigation, PSE&G agreed to (i) pay a $6.6 million civil penalty and (ii) submit one annual compliance monitoring report outlining PSE&G’s compliance training efforts and compliance measures related to FERC reporting. FERC Enforcement may also elect to require PSE&G to submit a second annual compliance monitoring report.
A copy of the order approving the Stipulation, issued in Docket No. IN21-5-000, is available here.