Strategic Plan FY2018 - 2022Every four years, FERC updates its Strategic Plan as required by the GPRA Modernization Act of 2010.The Commission believes in the benefit of establishing goals, communicating priorities, and holdingitself accountable. As a regulatory agency, the foundation of the Commission’s Strategic Plan is rootedin its federal mandates under various laws and statutes. The plan also demonstrates the Commission’sresponsiveness to changes in stakeholder needs and the energy landscape. The plan is designed to helpemployees align their individual work to the mission and goals of the agency. The plan also gives externalstakeholders an understanding of the Commission’s authorities, priorities, and processes.Since the last strategic plan was published in 2014, the energy landscape has changed considerably and islikely to continue to do so. FERC conducted a situational assessment of each of the six strategic objectivesincluded in the plan. Each situational assessment identifies factors that are likely to have a significantimpact on the achievement of the objective over the next four years. The identified factors could be eitheran issue that poses a barrier to the achievement of the objective or an opportunity that offers a benefit/advantage relative to achieving of the objective. For each situational assessment item, FERC developeda strategic response that will be implemented to address the identified issue or opportunity. The strategicresponses range from a refocusing of effort or attention to a more structured set of actions directed towarda particular result. The range of strategic responses enables more flexible action and broader organizationalengagement in strategic action. The situational assessments and strategic responses represent an investment inand commitment to maintaining awareness and responsiveness in regard to evolving stakeholder needs andchanging external conditions.Federal Energy Regulatory CommissionFERC_2da648b6-c7b2-48f0-8cc5-ae3784d89eeeThe Federal Energy Regulatory Commission (FERC or the Commission) is an independent agency thatregulates the transmission and wholesale sale of electricity and natural gas in interstate commerce, andregulates the transportation of oil by pipelines in interstate commerce. FERC also reviews proposals to buildinterstate natural gas pipelines, natural gas storage projects, and liquefied natural gas (LNG) terminals, andFERC licenses non-federal hydropower projects. Congress assigned these responsibilities to FERC in variouslaws enacted over nearly 100 years, such as the Federal Power Act, Public Utility Regulatory Policies Act,Natural Gas Act, and Interstate Commerce Act. More recently, as part of the Energy Policy Act of 2005,Congress gave FERC additional responsibilities to protect the reliability and cybersecurity of the bulk-powersystem through the establishment and enforcement of mandatory reliability standards, as well as additionalauthority to enforce FERC regulatory requirements through the imposition of civil penalties and othermeans.Kevin J. McIntyreChairman, Federal Energy Regulatory CommissionEnergy ConsumersEconomically efficient, safe, reliable, and secure energy services at reasonable cost_f63e8354-da10-11e8-adcf-4781bfcc2f93To assist consumers in obtaining economically efficient, safe, reliable, and secure energy services at a reasonable cost through appropriate regulatory and market means, and collaborative efforts._f63e8502-da10-11e8-adcf-4781bfcc2f93EfficiencySafetyReliabilitySecurityCost EffectivenessEthicsRates, Terms & ConditionsEnsure Just and Reasonable Rates, Terms, and Conditions_f63e8624-da10-11e8-adcf-4781bfcc2f931The nation’s security and economic prosperity depend on maintaining economically efficient, safe, reliable,and secure energy services at a reasonable cost for consumers. FERC’s regulation ensures just and reasonablerates, terms, and conditions for jurisdictional services.In carrying out its regulatory role, FERC uses a range of ratemaking activities as well as market oversight andenforcement. FERC’s jurisdiction includes the wholesale sales and transmission of electricity and naturalgas in interstate commerce, as well as the transportation of oil by pipeline in interstate commerce. FERC’sratemaking activities leverage both regulatory and market means, and involve the issuance of orders andthe establishment of rules and policies. Its enforcement activities include both increasing compliance anddetecting and deterring market manipulation.Through these efforts, FERC ensures that consumers have reasonable access to the services they need and thatservice providers are appropriately compensated.Rules & PoliciesEstablish Commission rules and policies that will result in just, reasonable, and not unduly discriminatory or preferential rates, terms, and conditions of jurisdictional service._f63e898a-da10-11e8-adcf-4781bfcc2f931.1Electricity, natural gas, and oil are vital resources that fuel economic activity and help to meet the nation’senergy needs. Through the Federal Power Act, Public Utility Regulatory Policies Act, Natural Gas Act, andInterstate Commerce Act, among other laws, Congress gave FERC authority to regulate the transmissionand wholesale sale of electricity and natural gas in interstate commerce, and to regulate the transportationof oil by pipeline in interstate commerce. The Commission’s responsibility in the exercise of this authority isto ensure that rates, terms, and conditions for wholesale sales and transmission of electric energy and naturalgas in interstate commerce, as well as for transportation of oil by pipeline in interstate commerce, are just andreasonable and not unduly discriminatory or preferential.FERC carries out this responsibility by issuing orders and establishing rules and policies that continuallybalance two important interests: protecting energy consumers against excessive rates, and providing anopportunity for regulated entities to recover their costs and earn a reasonable return on their investments.FERC’s orders, rules, and policies use both market and regulatory means to impact energy service providerpractices. FERC leverages competitive market forces to promote efficiency for consumers where appropriate.When competitive market conditions do not exist or competitive forces are inadequate to protect consumers,FERC relies on traditional rate-setting authority and tools such as cost-of-service ratemaking.In exercising its authority, FERC ensures that interested stakeholders have the opportunity to providetheir views and that the Commission’s ultimate decisions are adequately supported by the public record.Stakeholder engagement and transparency help FERC establish rules and policy that result in just,reasonable, and not unduly discriminatory or preferential rates, terms, and conditions.Issues & CircumstancesEvaluate existing Commission rules and policies in light of emerging issues andchanging circumstances to determine whether modification of such rules and policies is necessary or new rules or policies need to be developed._f63e8aa2-da10-11e8-adcf-4781bfcc2f931.1.1To adapt to emerging issues and changing circumstances in the electric and natural gas industries, FERCevaluates existing rules and policies to assess whether they continue to ensure just, reasonable, and not undulydiscriminatory or preferential rates, terms, and conditions of service. This evaluation allows FERC to developor modify its existing rules and policies to improve economic efficiency and operations in the markets. Theevaluation also enables FERC to ensure adequate compensation for resources responding to system needs, toremove barriers to ensure access to the market and grid by all resources, and to ensure that consumers havereasonable access to the services they need.FERC accomplishes its ongoing review of existing rules and policies in a number of ways. Based on itsknowledge and experience with the industries it regulates, FERC may gather information through technicalconferences or other means of outreach with stakeholders. FERC also keeps informed of national andinternational events and trends and draws on its knowledge and experience with its jurisdictional industries to detect important recurring or emerging issues. FERC gathers data and uses it to perform economic,engineering, and technical analyses of the energy markets to inform policy recommendations. FERCevaluates the outcomes of recent policy changes on market participant behavior and market operations.FERC also undertakes research projects on energy market design issues. FERC’s technical, legal, and policyexperts also carefully review and analyze filings to support the Commission’s review of industry proposals.Where necessary, the Commission will pursue changes to its regulations through rulemaking proceedings.In some instances, the Commission on its own initiative will institute a rulemaking to address new concernsor trends in the industry. In other instances, the regulated community or other stakeholders will petitionthe Commission for changes to its regulations. FERC engages in a transparent rulemaking process to pursuechanges to its regulations. A process of notice and comment maintains transparency and ensures stakeholderinput. Through staff reports and white papers, technical conferences and workshops, and presentations andspeeches, FERC also provides guidance to the regulated community and other stakeholders.By remaining aware and agile, FERC can adjust existing policies and develop new policies to ensure thatconsumers have reasonable access to needed services and that service providers are appropriately compensatedin a rapidly changing marketplace. FilingsAnalyze and act upon filings in a fair, clear, and timely manner._f63e8cfa-da10-11e8-adcf-4781bfcc2f931.1.2Where filings do not provide the Commission with sufficient information to act upon their merits, facilitate settlements of disputes or, in the absence of settlement, develop an adequate record for Commission action.To maintain or establish just, reasonable, and not unduly discriminatory or preferential rates, terms, andconditions of service, FERC analyzes and takes appropriate action on applications to change existing orimplement new rates, terms, and conditions of service.Jurisdictional entities have tariffs on file with the Commission that state what rates they can charge forjurisdictional services, as well as establish the rates, terms and conditions of service. Jurisdictional entities maysubmit to FERC requests to make changes to existing tariffs or implement new ones, and most orders thatthe Commission issues are in response to such requests. FERC may also conduct an independent review oftariff provisions and rates—i.e., a review not initiated by a jurisdictional entity’s filing—either pursuant to astakeholder complaint or on its own motion.Other stakeholders (such as ratepayers and state and local government agencies) may participate inproceedings. The Commission has adopted procedures that allow broad participation in its proceedings bythe regulated entity and other parties impacted by its decisions.FERC advisory staff develop recommendations to the Commission regarding potential actions through amultifaceted process that varies in complexity with the nature of the request. Analysis of the initial filingrequires broad legal and technical expertise—from attorneys, economists, accountants, engineers, and rateand policy analysts—and includes a careful examination of the record, Commission policy and precedentrelevant to each filing. Based on this analysis, the Commission issues a fair, clear, and timely order accepting,modifying, suspending, setting for hearing, or rejecting the rates, terms, and conditions of service.Some issues are not easily resolved, especially those where there are material issues of fact in dispute. Insuch cases, the Commission may set the matter for hearing and/or direct the parties involved to engagein settlement judge procedures. If in the settlement judge procedures the negotiations reach an impasse,the Commission’s chief administrative law judge terminates those procedures and appoints a presidingadministrative law judge to conduct a hearing and issue an initial decision. In the hearing, the parties andCommission trial staff conduct discovery to develop the record. The parties and trial staff file testimonyprepared by expert witnesses on the disputed issues, conduct cross-examination of witnesses at the hearing,and file briefs with the presiding judge. An administrative law judge presides over the hearing, and ensures due process by ruling on discovery disputes, motions to compel, and issuing procedural and substantiveorders. The administrative law judge also has the obligation to develop the evidence that will be madepart of the official record and to ensure a full and complete record. At the conclusion of the hearing, thepresiding judge considers the evidentiary record and issues a fair and impartial initial decision. The partiesand Commission trial staff may file briefs on exceptions or opposing exceptions to the initial decisionwith the Commission. Finally, Commission advisory staff review the judge’s initial decision and providerecommendations to the Commission regarding final action, including whether to affirm, modify, or reverseit in a Commission order.Deterrence, Detection & ComplianceIncrease compliance with FERC rules; detect and deter market manipulation._f63e8e30-da10-11e8-adcf-4781bfcc2f931.2The Federal Power Act and the Natural Gas Act, along with other statutory authorities, give FERC oversightand enforcement responsibilities that focus on increasing compliance of regulated entities and detectingand deterring market manipulation. The Energy Policy Act of 2005 in particular increased both theCommission’s responsibilities and its penalty authority.Within the compliance focus of this objective, FERC gathers information about and analyzes marketfundamentals, behavior, and trends in order to take proactive steps to reduce the probability that violationsof applicable laws, the Commission’s regulations, or market rules will occur. FERC also promotesinternal compliance programs and employs a robust audit program to identify problems and providerecommendations to improve compliance. FERC also makes market and audit data transparent to the publicand market participants so that market efficiency is promoted and anomalies and areas of concern may beidentified and reported.Fraud and market manipulation pose a significant threat to the markets overseen by the Commission, andthe financial harm imposed by such actions ultimately is borne by consumers. To detect and deter fraudand market manipulation, FERC uses market surveillance and other sources to identify indications ofmisbehavior. FERC then conducts investigations, and, when appropriate, exercises the Commission’s civilpenalty authority to discourage violations.Promoting compliance and inhibiting market misconduct strengthen markets, increase market confidence,and support the Commission’s goal of ensuring that rates, terms, and conditions of jurisdictional energyservices are just, reasonable, and not unduly discriminatory or preferential. ComplianceIncrease compliance by identifying anomalies and potential rule improvements,and through stakeholder education and outreach._f63e8f66-da10-11e8-adcf-4781bfcc2f931.2.1In the complex and rapidly evolving energy marketplace, ongoing observation and analysis are necessaryto ensure that market rules are effective and practicable for those who must follow them. FERC monitorsmarket activities and conducts audits of jurisdictional entities to understand the factors affecting complianceand facilitate compliance through information sharing, feedback, and practical recommendations. FERC staff routinely monitor the energy markets to identify and evaluate significant market events andtrends, inefficient market rules, and other unusual market behavior. In addition, FERC staff have developedand routinely run algorithmic screens and conduct ongoing analysis of transactional and other market data toidentify factors that may inhibit compliance and/or indicate a need for new or adapted market rules. Theseanalyses may result in reports to the Commission or the public to inform recommendations for market rulechanges or other Commission action and to provide market participants with information about marketfundamentals.FERC staff also work to increase compliance by conducting audits of jurisdictional entities. These auditsassess compliance with carefully crafted rules and regulations and provide insight into the factors affectingcompliance. FERC staff thoroughly examine areas identified within the scope of each audit in order to assesscompliance and, in cases of noncompliance can often identify irregularities and/or areas where existingpolicies or regulations are not wholly effective. Audits thus require a deep understanding of both FERCpolicy and the complexities of energy markets and draw on the expertise of different Commission offices withmultidisciplinary skills in auditing, accounting, engineering, rate design, policy, and law. In addition, auditstaff provide informal feedback to the audited entities during the audit engagements, and formal findings areissued in public reports that facilitate compliance across jurisdictional entities.A risk-based approach to plan and prioritize audits helps FERC examine areas of regulatory importanceand make the most efficient use of its resources. Annual risk assessments gather input from a variety ofresources, including forms filed with the Commission, state commissions, and the Securities and ExchangeCommission; rate information; FERC and state rate actions; discussions with industry and state officials;discussions with senior FERC officials and staff; and internally developed audit screens.FERC’s oversight activities promote compliance and alert the Commission to potential areas of concern. Byreducing the probability that noncompliance will occur, FERC ensures that policies and regulations continueto promote a fair marketplace and market efficiencies. ManipulationDetect and deter market manipulation by identifying and conducting investigations of potential violations._f63e9092-da10-11e8-adcf-4781bfcc2f931.2.2Even the most carefully crafted policies are ineffective if they are not followed. Surveillance and enforcementpromote a fair market for both service providers and end users. In its role as an enforcement body, FERCconducts surveillance and investigations with the aim of detecting and deterring violations, including marketmanipulation by regulated entities.FERC staff monitor energy markets on a daily basis using sophisticated surveillance screens and toolsdeveloped by staff that algorithmically screens data from the physical and financial energy markets. Staffrun these automated screens on a routine basis (daily, weekly, monthly, as appropriate depending on thenature of the screen) and carefully study the results. Staff analyze any screen trips in depth to determinewhether anomalous market behavior is an indication of a potential violation or the result of factors such asmarket fundamentals, weather or unusual market activity, or business needs. To the extent data are available,the screening and analysis will incorporate financial products to examine their interaction with physicaltransactions. When staff analyses identify potential violations by market participants, staff refer them forinvestigation.FERC monitoring is only one source for detecting market manipulation. FERC may be notified througha variety of sources, including self-reports, tips, calls to the Enforcement Hotline, and referrals fromorganized markets or their monitoring units. In addition, information may come from other offices withinthe Commission or other authorities such as state agencies. FERC staff may also follow up on findings fromother investigations.In response to any of these inputs, FERC staff conduct public and non-public investigations of these possibleviolations of the statutes, regulations, rules, orders, and tariffs administered by the Commission. Attorneys,analysts, and economists, who are experienced and knowledgeable about energy markets, compile andreview information from data requests, sworn testimony, field audits, and similar methods, and developan investigative record. In attempting to achieve a fair resolution of an investigation, FERC staff will alsoconsider the level of cooperation by the utility being investigated, whether the violation was self-reported, thecompliance culture of the organization, and the harm or risk of harm posed by the violation.FERC staff determine whether the evidence indicates a violation. If no violation is identified, theinvestigation is terminated. If a violation of sufficient seriousness is indicated, the Office of Enforcementreports its factual findings and legal conclusions to the Commission and, upon authorization from theCommission, attempts to resolve the investigation through settlement. If a settlement is not reached, FERCstaff may recommend that the Commission pursue further enforcement proceedings and participates inenforcement proceedings before an administrative law judge or district court. All investigations produce anadministrative record that reflects the investigative findings and legal conclusions.FERC’s enforcement efforts lead to a fair resolution of each investigation, whether the result is a settlementor an enforcement proceeding that results in the payment of a civil penalty, disgorgement of unjust profits,compliance monitoring, and/or other remedies available to the Commission. FERC’s actions to detect anddeter market manipulation by market participants ensure that policies and regulations continue to promote afair marketplace.InfrastructurePromote Safe, Reliable, and Secure Infrastructure_f63e91f0-da10-11e8-adcf-4781bfcc2f932The nation’s demand for energy continues to grow, requiring the expansion of the infrastructure that providesthat energy. Infrastructure for which FERC approval is required includes interstate natural gas pipelines andstorage projects, LNG facilities, and non-federal hydropower facilities. These facilities are critical to meetthe nation’s growing energy needs. Ensuring the development of safe, reliable, and secure infrastructure thatprovides energy for consumers at a reasonable cost is a significant, multifaceted challenge. Because of itsmany uses, particularly as a fuel for electric power generation, the demand for natural gas in the United Statesis at its highest levels on record and natural gas production continues to increase due to the developmentof shale gas. Interest in developing hydropower projects has also increased. Hydropower facilities providerenewable, domestic energy.FERC’s role as an independent regulatory agency includes both the review of infrastructure projects as wellas the minimization of risks to the public in the operation of the infrastructure. To promote safe, reliable, andsecure infrastructure, FERC must ensure the sustainability and safety of non-federal hydropower projectsand LNG facilities throughout their entire life cycle; oversee the development and review of, as well ascompliance with, mandatory reliability and security standards for the bulk-power system; and help to securethe infrastructure from cyber and physical attacks. ProposalsFacilitate benefits to the nation through the review of natural gas and hydropower infrastructure proposals._f63e933a-da10-11e8-adcf-4781bfcc2f932.1The Natural Gas Act and the Federal Power Act, among other statutory authorities, charge FERC with theresponsibility to oversee the development of robust, reliable and secure energy infrastructure that operatessafely. More specifically, FERC is charged with authorizing the construction and operation of interstatenatural gas pipelines and storage projects, LNG facilities, and non-federal hydropower projects. With therising demand for natural gas and hydropower comes increased infrastructure construction, making it all themore important that FERC oversee the private sector development of safe, reliable, and secure infrastructurein a way that fosters economic and environmental benefits for the nation.FERC achieves this objective through the review of applications to construct, operate, or modify natural gasand hydropower infrastructure by ensuring that facilities are constructed and operated in compliance withthe conditions of FERC orders. FERC’s review of proposed projects must balance a range of factors suchas competing interests, legal requirements, and environmental impacts. FERC also coordinates with otheragencies, as appropriate, to consider issues related to environmental statutes such as the Endangered SpeciesAct, National Historic Preservation Act, Coastal Zone Management Act, and Clean Water Act. In exercisingits authority, FERC ensures the development and operation of safe, reliable, and secure infrastructure whileensuring that impacts are mitigated to acceptable levels. ApplicationsConduct thorough and timely technical review of applications to construct,operate, or modify natural gas and hydropower infrastructure._f63e948e-da10-11e8-adcf-4781bfcc2f932.1.1To meet the demand for energy, FERC must respond to energy infrastructure applications with timelyand well-reasoned decisions. FERC receives applications for original hydropower construction, relicensingof existing hydropower facilities, amendments to hydropower licenses, LNG facility construction, andnatural gas pipeline and storage project construction. It is incumbent upon FERC to ensure that suchprojects are constructed safely and result in sustainable infrastructure that benefits the nation economicallyby providing widespread energy access and fostering competitive markets. Therefore, each applicationundergoes a thorough review as part of FERC’s authorization process. FERC establishes a cross-office teamof subject matter experts, including engineers, biologists, archaeologists, geologists, other environmentalscientists, accountants, economists, and lawyers, who thoroughly review and analyze the application fromenvironmental, engineering, economic, and legal perspectives; for natural gas applications, FERC alsoconsiders accounting and rate impacts. During the review, staff prepare documents in accordance with theNational Environmental Policy Act, e.g., an environmental assessment or environmental impact study.For less complex applications, the Commission may delegate to staff authorization to approve or deny theapplication; for more complex applications, the Commission reviews staff ’s recommendation and makes thefinal determination. The process results in a Commission order, including terms and conditions, addressingthe application. The Commission’s review processes are designed to result in well-reasoned decisions based ona wide range of input from staff technical experts, other regulatory agencies, and the public.Construction & OperationsEnsure natural gas and hydropower infrastructure is constructed and operated in compliance with environmental mitigation conditions in FERC orders._f63e960a-da10-11e8-adcf-4781bfcc2f932.1.2FERC issues orders authorizing energy infrastructure projects for natural gas pipelines and storage facilities,LNG facilities, and hydropower facilities. FERC’s orders include terms and conditions designed to addressimpacts resulting from a project on the environmental resources in project areas. Among other things,these terms and conditions address water and air quality, land use and recreation, erosion control, culturalresources, and wildlife and endangered species.As specified by the authorization, licensees and certificate holders must implement specific environmentaland operational measures, generally after filing detailed plans, proposals, and reports regarding thisimplementation. FERC ensures compliance with the terms and conditions of the order through extensiveenvironmental review and inspection programs of jurisdictional facilities during construction and operation.These programs evaluate and assess implementation and compliance with the environmental and public userequirements of authorizations. At regularly scheduled intervals, qualified Commission staff familiar with theproject and FERC rules and regulations conduct on-site inspections to confirm that licensees and certificateholders are abiding by terms and conditions specified in the authorizations.By helping to ensure that facilities are built and operated in compliance with the stipulated terms andconditions, FERC’s review and inspection programs support the operation of safe, reliable, and secure energyinfrastructure.RiskMinimize risks to the public associated with FERC-jurisdictional energy infrastructure._f63e9772-da10-11e8-adcf-4781bfcc2f932.2The Natural Gas Act and the Federal Power Act, among other statutory authorities, charge FERC withensuring that energy infrastructure, once authorized, continues to operate safely and reliably. Failure of LNGor hydropower infrastructure due to structural issues, unsafe operations, natural disasters, cyber and physicalattacks, or other hazards can result in loss of life as well as environmental and economic consequences.In addition, the Energy Policy Act of 2005 amended the Federal Power Act to give FERC authoritywith respect to reliability standards for the bulk-power system and oversight of an Electric ReliabilityOrganization (ERO). In fulfilling these responsibilities, it is critical that FERC minimize risks to the publicassociated with FERC-jurisdictional energy infrastructureFERC achieves this objective through a range of activities. FERC conducts timely safety reviews andinspections with rigorous requirements, thereby advancing the safety of non-federal hydropower projectsand LNG facilities throughout their entire life cycle. FERC also oversees the development and review ofmandatory reliability and security standards for the bulk-power system, as well as compliance with thesestandards. In addition, FERC collaborates with regulated entities and other federal and state governmentalagencies to identify and seek solutions to cyber and physical threats to FERC-jurisdictional infrastructure,facilitating proactive efforts that prevent or mitigate loss or damage. InspectionsConduct comprehensive and timely inspections of hydropower and LNG facilities to ensure compliance with the Federal Power Act, the Natural Gas Act, and Commission orders._f63e98e4-da10-11e8-adcf-4781bfcc2f932.2.1To fulfill its responsibility for ensuring the safety of an LNG facility or a non-federal hydropower project,FERC relies on physical inspections. Before hydropower and LNG facilities are constructed, FERC staffreview the design, plans, and specifications in both the Commission order and the documents and reportsfiled by authorization holders. During facility construction and operation, FERC engineers conductregularly scheduled and comprehensive inspections. The inspections verify that dams and LNG facilitiesmeet stipulated design criteria that ensure safe and reliable operation. The resulting inspection reports anddeficiency reports also include necessary remedial modifications and/or required maintenance. Bulk-Power SystemsProtect and improve the reliable and secure operation of the bulk-power system by identifying reliability and security risks; overseeing the development, implementation and enforcement of mandatory reliability standards; and promoting the resilience, reliability and security of the bulk-powersystem._f63e9a74-da10-11e8-adcf-4781bfcc2f932.2.2The nation’s bulk-power system is the backbone of the economy, delivering essential services to end usersevery moment of every day. FERC promotes the reliability of that system through oversight of the ERO,which develops mandatory reliability and security standards in the United States and enforces compliancewith those standards through audits, investigations, and proposed penalties.In its oversight role, FERC reviews reliability and security standards proposed by the ERO. For proposedstandards, the Commission may issue an order to accept, remand, or direct modifications.FERC reviews documentation supporting ERO audits, investigations, and proposed penalties andremediation for non-compliance. FERC also gathers information through near-real-time monitoring of thegrid, obtaining supplementary data on grid functionality through data services and coordination with facilityowners and operators. FERC maintains an up-to-date knowledge on grid technologies and changes in thebulk-power system to assess potential risks to reliability and opportunities to improve reliability. In addition,FERC engages with stakeholders and experts, sometimes by hosting technical conferences, to better monitorthe cyber security landscape and remain abreast of trends that may affect bulk-power system reliability. These sources inform FERC’s assessment and analysis activities. First, drawing on the substantial expertise ofits staff, including electrical engineers with many years of experience in the utility industry, FERC analyzesproposed ERO standards to determine whether they support the reliable operation of the grid. In addition,FERC oversees ERO audits, investigations, and proposed penalties and remediation to determine whetherthey lead to compliance with reliability and security standards. The Commission may issue an order initiatingreview of a proposed penalty in cases where further review is warranted. FERC conducts inquiries, audits,and investigations of major blackouts and other grid-related events to determine whether the standardswere violated and whether adjustments to the standards are needed to help prevent future blackouts. FERC,sometimes in collaboration with the ERO, engages with regulated entities to assess how the standards areimplemented and to determine if changes to the standards are warranted.SecurityProtect against cyber and physical security threats to FERC-jurisdictional energyinfrastructure and improve their resilience by working with regulated entities and stakeholders and by coordinating with other government agencies to identify and apply best practices separate from basic regulatory requirements._f63e9bf0-da10-11e8-adcf-4781bfcc2f932.2.3Growing cyber and physical security threats, along with increasing automation and other developments,demand an agile and focused approach to energy infrastructure security. FERC staff employ deep familiaritywith FERC-jurisdictional infrastructure, extensive experience in grid operations, and cyber security expertiseto coordinate with and support other government agencies and regulated entities in addressing these threats.FERC employs a four-part process of identify, inform, assess, and address cyber and physical securitythreats. FERC partners with federal agencies to identify and assess threats, activities, and capabilities ofadversaries that may initiate a cyber or physical attack on FERC-jurisdictional infrastructure and ensures thatjurisdictional entities are made aware of these threats. FERC also works with government partners to identifyand assess key infrastructure facilities that present the greatest risk. By maintaining connections, partnership,and awareness, FERC’s collaboration and outreach efforts to inform are directed toward both governmentpartners and jurisdictional entities. To ensure that jurisdictional entities are informed about security threatsand counter measures, FERC conducts briefings and helps infrastructure representatives obtain securityclearances that gives them access to classified threat information. FERC also reviews and provides inputto ERO alerts, advisories, and bulletins to ensure they are useful and relevant to jurisdictional entities.Finally, FERC helps jurisdictional entities address cyber and physical threats by developing and compilingbest practices, mitigation measures, and tools and techniques to enhance protection of facilities. FERCencourages the implementation of these best practices, mitigation measures, and tools and techniques byconducting onsite security assessments of jurisdictional electric, natural gas, hydropower, and LNG facilities.The Commission’s contributions reduce the risk of cyber and physical security threats to vital energyinfrastructure. The Commission’s efforts in this area thus provide an important complement to FERC’srelated responsibilities for both regulatory requirements and enforcement. OrganizationMission Support through Organizational Excellence_f63e9d6c-da10-11e8-adcf-4781bfcc2f933The public interest is best served when the Commission operates in an efficient, responsive, and transparentmanner. The Commission pursues this goal by maintaining processes and providing services in accordancewith governing statutes, authoritative guidance, and prevailing best practices. The Commission’s staff, whileserving in different component offices, must work collaboratively and execute processes that work in concertwith each other to produce the high-quality results expected by the American people. In accomplishing thisgoal, the Commission will use its resources efficiently, empower its employees, and earn the public trust.These essential outcomes are indicative of a model regulatory agency. ResourcesManage resources effectively through an engaged workforce._f63e9f24-da10-11e8-adcf-4781bfcc2f933.1As the Commission faces new and increasing challenges, the demands on Commission offices and employeescontinue to grow. It is essential for the organization to provide support that addresses internal needs andenables organizational excellence.FERC achieves this objective by providing processes and services that help office leadership prioritizeresource allocations, make prudent investments that yield returns that directly benefit the agency’s mission,and use Commission resources in an efficient manner. These processes and services also help managementmeet federal statutes that require the Commission to recover its operating costs from the entities it regulatesand do so in a manner that avoids unnecessarily increasing the cost of energy to consumers.FERC also achieves this objective by providing services, tools, and resources that equip employees to drivesuccess and accomplish the agency’s mission. On an annual basis, the Commission allocates over two-thirdsof its budget to directly cover the compensation costs of its employees. Given this significant investment,the Commission places extremely high value on its employees and is focused on ensuring that employeeshave a performance management system that clarifies expectations, removes barriers to performance andengagement, and provides useful feedback that supports employee effectiveness.By providing processes and services that meet internal needs, FERC supports the effective use of resources,equips employees for success, and achieves organizational excellence.ProcessesMaintain processes and provide compliant services that enable FERC to manage resources effectively and efficiently._f63ea0b4-da10-11e8-adcf-4781bfcc2f933.1.1The Commission achieves its mission when the internal management of FERC is supported by processes andservices that enable organizational performance and the efficient use of resources.To support the mission, FERC plans resource needs, executes compliant and effective processes and services,and assesses results against established objectives. In the planning stages, FERC employs a collaborativemanagement approach and establishes systems to identify organizational needs – identifying staffing andcompetency needs through human capital processes, information technology and infrastructure needsthrough capital planning and investment control processes, and financial needs through the budgetformulation process. FERC then develops comprehensive plans to address those needs for achieving programresults.The Commission executes its resource plans to achieve effective and efficient operations, reliable financialreporting, and compliance with applicable laws and regulations through mission-support services.To ensure the effectiveness of resource planning and execution, FERC measures and evaluates how wellestablished processes and services are meeting statutory requirements and addressing identified needs. FERCdevelops control programs and reporting requirements and implements data collection and analyses toinform decisions and actions to address performance deficiencies.The rigorous and thoughtful application of the planning, execution, and evaluation cycle results incompliant processes and services that enable the acquisition and retention of a diverse and skilled workforce;procurement of value-added commodities and contractor assistance; delivery of a stable, resilient, and secureinfrastructure; and the authorization of financial activities.This cycle also ensures that the Commission is always cognizant of performance against strategic andoperational plans and has the information to produce financial statements that accurately represent theCommission’s financial condition as well as other federally mandated reports that maintain the Commission’saccountability and provide stakeholders with performance information.The ongoing delivery of effective internal processes and services is critical to enabling FERC to achieveoperational excellence, use resources efficiently, and fully contribute to the agency’s mission.ToolsProvide tools and services that enable FERC staff to effectively perform their jobs and drive Commission success._f63ea29e-da10-11e8-adcf-4781bfcc2f933.1.2The Commission achieves its mission when employees are equipped for success and empowered to takeaccountability for achieving the Commission’s mission, goals, and objectives. FERC enables staff to performeffectively and drive success by deploying tools, services, and resources that meet employee needs.Supervisors and staff jointly apply these tools, services, and resources to enhance individual performance.FERC’s performance management system serves as a planning tool that communicates expectations andindividual responsibilities and establishes accountability for expected results. Supervisors and staff also usethe system to establish a line of sight between individual performance and the Commission’s mission, goals,and objectives.To enable the effective execution of performance expectations and responsibilities, FERC providestechnology, employee development and training programs, health and wellness programs, and other employee services and resources to meet employees’ performance needs and remove obstacles to engagement.However, the effective deployment of these services and resources must be a joint responsibility forsupervisors and staff.Staff effectiveness and engagement is further supported by performance measurement processes that providefeedback to employees, supervisors and the organization. Regular performance appraisals indicate how wellemployees are performing against expectations and objectives, identify performance issues and obstacles, andprovide useful feedback that enables performance improvement. In addition, organizational assessments suchas the Federal Employee Viewpoint Survey (FEVS) allow employees to provide feedback about how effectivethe tools, services, and resources provided by the organization are in supporting performance and meetingemployee needs.Effective deployment of performance management tools, services, and resources serves to inform and focusemployee effort, encourage engagement, and enable employees to drive success. Effective appraisals andorganizational assessment produce useful feedback about performance and timely information about thecollective work environment. An effective and engaged staff is critical to achieving the Commission’s mission.Understanding & TrustFacilitate public trust and understanding of Commission activities by promotingtransparency, open communication, and a high standard of ethics._f63ea49c-da10-11e8-adcf-4781bfcc2f933.2Facilitating understanding of how the Commission carries out its responsibilities and maintaining publictrust in the Commission are important components of the Commission’s commitment to organizationalexcellence. Trust and understanding increase acceptance of FERC decisions and reduce the potential for thepublic to dispute FERC rules and regulations, thus enabling the creation and enforcement of policy.The Commission achieves this objective by maintaining processes and public information services thatpromote transparency and open communication with respect to the conduct of the Commission’s business.FERC’s proactive communication, along with an online document repository and timely responses toinquiries, foster awareness and understanding of the Commission’s activities.The Commission also advances this objective by maintaining internal processes and services that ensureadherence to statutes, regulations, and self-imposed standards. In addition, FERC provides training andguidance to promote an ethically informed workforce. These activities further encourage public confidence inthe Commission’s activities and ability to fulfill its responsibilities.EthicsDevelop and maintain internal processes and services that promote high standards of ethics._f63ea6ae-da10-11e8-adcf-4781bfcc2f933.2.1To ensure public trust in the exercise of FERC’s regulatory authority, the Commission promotes anddemonstrates a high standard of ethics.The Commission develops and maintains processes and programs to ensure that the activities of its employeesconform to statutes and regulations relating to the standards of ethics and conduct. The Commission utilizesinnovative annual ethics training to promote an ethically informed workforce.The Commission manages the financial disclosure processes, established by 5 U.S.C. §§ 101-111, throughreview of employees’ financial disclosure reports to avoid, detect, or resolve conflicts and to promotecompliance with relevant statutory and associated regulatory requirements.The Commission’s ethics program is supplemented by an established internal process that, among otherfacets, provides staff with resources to seek guidance regarding the executive branch ethics requirements andother relevant laws. The Commission also has processes to address alleged wrong-doing, unethical behavior,and allegations of unauthorized release of non-public information.The training programs, guidance, and disclosure forms produced by these efforts provide on-goingdocumentation and demonstration of FERC’s high standards of ethics. They provide a concreterepresentation of FERC’s commitment to integrity in the exercise of its regulatory authority and thusencourage a level of public trust and confidence that enables FERC to carry out its mission effectively andefficiently.InformationMaintain processes and public information services in accordance with the principles of transparency and open communication._f63ea884-da10-11e8-adcf-4781bfcc2f933.2.2Promoting transparency and open communication with respect to the conduct of the Commission’s businessfacilitates both understanding of how the Commission carries out its responsibilities and public trust inthe Commission. Indeed, transparency and open communication are the primary means by which theCommission ensures that regulated entities and other interested stakeholders have access in a timely mannerto accurate information about the Commission’s activities. The Commission demonstrates its commitment totransparency and open communication in many ways.Commission decisions regarding orders and the Commission rulemaking process are supported throughopen communication and documented on eLibrary – FERC’s online document repository. Highly trainedCommission staff prepare notices that promptly announce incoming filings or proposed rules and establish adeadline for other interested stakeholders to submit comments or protests to those filings or rules. To furtherpromote transparency, the evidentiary record that documents the basis for Commission decisions on ordersand rules is inputted into eLibrary and made available online for public view. Moreover, the Commissionannounces open meetings in which the Commission votes on orders with notices that list matters that theCommission will discuss. Finally, FERC issues a bi-weekly public notice to make the public aware of anyoff-the-record communications to Commission staff that could influence the Commission’s decision-makingprocess.Commission transparency is also supported by timely responses to information requests and proactivecommunication and relationship building with stakeholders. Commission staff frequently address questionsfrom Congress and other government agencies, state agencies and regulators, the international community, aswell as from the media and the public at large.The Commission pursues proactive engagement and relationship building with regulated entities and otherinterested stakeholders. This includes educating the public and stakeholders about the agency’s mission,role, direction, and policy. Experts in communications identify key messages and develop and executecommunication strategy in collaboration with the Chairman. This includes identifying key messages andemploying a range of media (email, podcasts, webinars, social media feeds, videos, presentations, pressreleases, reports, etc.) to deliver those messages. FERC staff also advise and work with the Chairman,Commissioners, and senior staff to prepare them to testify before Congress.The Commission also responds to requests for Critical Energy/Electric Infrastructure Information (CEII) aswell as inquiries for under the Freedom of Information Act (FOIA) with a focus on transparency and opencommunication. The Commission releases information to the greatest extent possible, while recognizingthe need for certain information to be withheld from disclosure consistent with statutory exemptions. Theextensive experience of Commission staff with respect to CEII, FOIA, and the Commission’s processesenables prompt issuance of prudent determinations.FERC’s commitment to maintain a complete and accessible evidentiary record along with a variety ofmultimedia information services ensure transparency regarding Commission actions and decisions andpromote trust and engagement with public and private stakeholders and the public. Transparency, opencommunications, and ongoing engagement by which stakeholders both have access to information andprovide input and comment are the mechanisms that build trust and facilitate the exercise of FERC’sregulatory authority. 2018-09-302022-09-302018-10-27https://www.ferc.gov/about/strat-docs/FY-2018-FY-2022-strat-plan.pdf?csrt=4324839215276942041OwenAmburOwen.Ambur@verizon.net