Power & Pipes

In October 2026, FERC’s Office of Electric Reliability, Division of Cyber Security released its annual Lessons Learned from Commission-Led CIP Reliability Audits summarizing findings from audits conducted during fiscal year 2026. Registered entities should assess their internal compliance programs in light of the trends and issues identified by FERC in preparation for future Critical Infrastructure Protection (CIP) audits, as the issues highlighted in these reports are often covered during audits.  The report highlights compliance with CIP 002-5.1a as a priority for FERC, including registration for new resources, properly accounting for functions performed by third parties, and using AI in a protected environment.

 

On June 18, 2026, the Federal Energy Regulatory Commission (FERC) directed each of the six regional grid operators it regulates (the Independent System Operators (ISOs) and Regional Transmission Organizations (RTOs)) and their member transmission owners to justify or reform the terms of their tariffs related to interconnections for data center and other large energy users (Show Cause Orders).

FERC’s Office of Enforcement and Regulatory Accounting (Enforcement) has released its annual report on enforcement actions during fiscal year 2025, which ran from October 1, 2024 to September 30, 2025. The report provides a comprehensive overview of Enforcement’s activities across the electric, natural gas, and oil pipeline industries.

On November 20, 2025, the Federal Energy Regulatory Commission withdrew its notice of proposed rulemaking to expand the “duty of candor” in communications to FERC and terminated the related rulemaking under Docket No. RM22-20.

The Federal Energy Regulatory Commission (FERC or Commission) on November 20, 2025 withdrew the Proposed Policy Statement on Waiver of Tariff Requirements and Petitions or Complaints for Remedial Relief (Proposed Policy Statement). The Commission’s policy will be to continue to grant tariff waivers on a case-by-case basis, consistent with its statutory authority and the language of the tariff in question.

The Federal Energy Regulatory Commission (FERC) on October 1, 2025 finalized a final rule under Docket No. RM25-14 to sunset dozens of existing regulations affecting the electric and natural gas industries. This regulatory action was taken pursuant to Executive Order (EO) 14270, Zero-Based Regulatory Budgeting to Unleash American Energy, issued on April 9, 2025, and is open for comment through November 20, 2025.

FERC recently approved a stipulation and consent agreement between the Los Angeles Department of Water and Power (LADWP) and Office of Enforcement and Regulatory Accounting to resolve an investigation into potential violations of the North American Electric Reliability Corporation (NERC) Rules of Procedure (ROP) and FERC regulations during a 2020 audit by the Western Electricity Coordinating Council. The settlement, and with it the large monetary penalty and additional compliance obligations, underscores the critical importance of transparency, accuracy, and truthfulness in reliability compliance monitoring and enforcement.

On September 12, 2025, the Federal Energy Regulatory Commission (FERC) terminated the proceeding in which it issued an updated policy statement that explained how FERC’s approach to considering applications to construct new interstate natural gas transportation facilities under Section 7 of the Natural Gas Act (Updated Certificate Policy Statement) would differ from the approach described in a policy statement issued in 1999 (1999 Certificate Policy Statement).

On August 29, 2025, the US secretary of energy proposed a significant regulatory shift regarding the certification process for new interstate natural gas facilities. In a letter submitted to FERC, the secretary recommended terminating the ongoing policy proceeding in Docket Nos. PL18-1-000 and PL18-1-001 and therefore rescind the 2022 draft Updated Certificate Policy Statement. Instead, the secretary advocates for continued reliance on the longstanding 1999 Certificate Policy Statement, which remains in effect.

Earlier this year, the Federal Energy Regulatory Commission (FERC or the Commission) issued Order 1977 to address its limited backstop siting authority for electric transmission lines. On October 17, 2024, FERC issued Order 1977-A, adding a new requirement mandating that siting applicants seeking rights of way on Tribal lands must include their Tribal Engagement Plans within their project proposals.