Commissioner Cheryl A. LaFleur Statement May 4, 2012 Docket No. FA11-21-000

The NERC Audit Report

“Today, Commission staff issued a performance audit of the North American Electric Reliability Corporation (NERC). The audit sets forth numerous concerns regarding NERC’s operation and focus. As described in the audit, NERC has expressed strong disagreement with some of the audit findings.

I have a high degree of confidence in FERC audit staff. However, I believe the issuance of this audit without a Commission vote was inconsistent with Commission regulations. Given the importance of NERC’s role as the Electric Reliability Organization charged with overseeing the reliability of the bulk power system, and the scope and significance of today’s audit, I believe the audit report as presented by staff should have been subject to a vote of the full Commission prior to issuance.”