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Power & Pipes

FERC, CFTC, and State Energy Law Developments

FERC Withdraws ‘Duty of Candor’ Proposal

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.

2022 Proposal

As outlined previously on Power & Pipes, the NOPR proposed adding a new section, 1d.1, to FERC’s regulations to require any entity communicating with FERC—or with specified organizations such as RTOs, ISOs, market monitors, jurisdictional transmission or transportation providers, or NERC and its Regional Entities—to submit accurate and factual information and not false or misleading information or omit material information.

FERC described the rule as an effort to create a consistent standard across the communications on which it relies, noting that existing requirements apply only to certain entities or specific types of filings.

FERC’s Decision to Withdraw the NOPR

After reviewing the record, FERC determined that it would not move forward with the proposed rule. FERC noted that it already has several existing rules it relies on that prohibit inaccurate, untruthful, or incomplete communications to the Commission and other organizations. These rules, which apply in a variety of contexts, will continue to be enforced, making the recent proposal largely redundant.

FERC emphasized that withdrawing the proposal does not alter entities’ current obligations and it expects regulated entities to continue complying with the duties of candor that already apply under existing rules and regulations.

Looking Ahead

With the withdrawal FERC leaves in place the current framework governing accuracy in communications. Entities interacting with FERC and related organizations remain responsible for ensuring that information provided is truthful and complete, and FERC retains its ability to take enforcement action under existing authorities when misleading or inaccurate information is submitted. Misleading or inaccurate statements, particularly to RTOs and ISOs, continue to be a key focus of FERC enforcement activities.