HPI Cyber Services Reduces Risk From FERC’S Recent Increase in Monetary Penalties

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HPI has strengthened its cyber and compliance service lines in light of the Federal Energy Regulatory Commission (FERC) increasing the maximum civil monetary penalties assessable for violations of statutes, rules, and orders within their jurisdiction.

NERC violations constitute the highest number of individual violations adjudicated by FERC.

HPI has strengthened its cyber and compliance service lines in light of the Federal Energy Regulatory Commission (FERC) increasing the maximum civil monetary penalties assessable for violations of statutes, rules, and orders within their jurisdiction.

HPI’s Cyber and Compliance services address the risk of violating rules and having FERC assess civil monetary penalties. FERC currently has the authority of up to $1,000,000 per violation, per day, under section 316A(b) of the FPA. Under the new calculations, that maximum cap rises to about $1,200,000 per violation, per day.

Moreover, other penalties frequently levied by FERC for more minor violations have DOUBLED from $11,000 per violation, per day, to $21,563 per violation, per day.

There are similar substantial penalty increases by FERC for a variety of offenses. For example, recent violations of NERC Critical Infrastructure Protection (CIP) rules that resulted in penalties of $20,000,000+ would have increased to well over $30,000,000 based on the new calculations and credit methodologies under the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015. NERC violations constitute the highest number of individual violations adjudicated by FERC. Fortunately, the vast majority of these violations are AVOIDABLE, especially with a precise execution of a Compliance Program that has been designed, implemented, and maintained by an external professional organization.

HPI has the expertise to combine a detailed compliance program that includes integrated policies procedures and controls, and a technical environment that significantly reduces vulnerability to actual and attempted cyber-attacks.

“As cyber threats grow and compliance with mandatory requirements intensify, HPI is already hard at work with our utility and independent power producers to manage their cyber risks,” says John Ballentine, head of HPI’s Cyber Security and Global Market Development.

With the vast majority of HPI’s compliance services costing far less than a single violation for a single day under the revised rules, the most prudent approach is to have HPI perform an initial Compliance Vulnerability Assessment, as well as a required Cyber Vulnerability Assessment.

Call today for more information or visit our web page at: http://www.hpi-llc.com.

About HPI
HPI is an international rotating equipment solutions company, with worldwide resources and four core lines of business: Engineering, Procurement and Construction; Operations and Maintenance; Cyber Security and Compliance; and Maintenance, Repair, Overhaul and Controls. We provide a range of engineering, maintenance management, industrial diesel and gas turbine overhaul, and repair and field services. Our services provide customers with custom-engineered solutions that reduce lifecycle costs of diesel, gas and steam turbines utilized in oil and gas, power generation and marine applications.

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Paul Anderson
HPI, LLC
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