Hearing Process

An entity registered with the North American Electric Reliability Corporation (NERC) may choose to dispute a Notice of Alleged Violation and/or the proposed sanction or penalty related to its alleged violation of a NERC Reliability Standard. If an entity wishes to dispute a proposed mitigation plan that has not been accepted by Texas Reliability Entity, Inc. (Texas RE), the entity may also begin the hearing process. An entity disputing a remedial action directive may request an expedited hearing.

Hearings are held before the Public Utility Commission of Texas (PUCT). The registered entity must file a statement with the PUCT and provide a copy to Texas RE. The statement must contain the reasons why the alleged violation is not a violation, and/or the proposed penalty or sanction is inappropriate, along with documentation to support the registered entity’s position.

The PUCT hearing body will set a date for an initial conference within 30 days after the entity’s statement is filed.

Texas RE will provide the hearing body with copies of the Notice of Alleged Violation and the proposed penalty or sanction, along with documentation used in Texas RE’s determination (five days after the filing). If the hearing involves the question of whether the entity’s proposed mitigation plan should be accepted, Texas RE will report on why the proposal was not accepted (20 days after the filing).

More than one hearing may be held. The entity and Texas RE may also file post-hearing briefs on a schedule established by the hearing body.

The hearing body will issue its final recommendation to the Chief Compliance Officer (CCO) of Texas RE and the entity within 30 days of the post-hearing brief filings, or if the briefing is waived, following the conclusion of the hearing. The hearing body may choose to extend the time to issue its final recommendation for up to an additional 60 days.

The CCO will issue a decision to accept, reject, or modify the hearing body’s recommendation within 20 days of its issuance. The CCO may choose to extend the time to issue a decision for up to an additional 20 days.

To learn more about the hearing process and procedures, refer to the Texas Regional Entity Regional Delegation Agreement (Amended and Restated for July 1, 2010, Compliance Filing), Exhibit D, Attachment 1 and 2.