Regulatory and Legal Compliance Flashcards
7 cards from real UMC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Regulatory and Legal Compliance flashcards as text
What is the significance of a 'certificate of public convenience and necessity' (CPCN) for a utility?
Answer: It grants legal authority to construct facilities and serve customers in a defined area
A CPCN, issued by a state PUC or FERC, authorizes a utility to construct, operate, and provide service, establishing its legal right to serve a territory.
Under the Clean Air Act, what is a 'Title V operating permit'?
Answer: A comprehensive air pollution permit required for major stationary sources
Title V of the Clean Air Act requires major stationary sources of air pollution to obtain an operating permit that consolidates all applicable air quality requirements.
Which federal regulation requires electric utilities with critical infrastructure to comply with mandatory reliability standards?
Answer: NERC CIP Standards
NERC Critical Infrastructure Protection (CIP) Standards, enforced by FERC, require electric utilities to protect bulk electric system assets from cyber and physical threats.
A utility is found to have a 'regulatory taking' claim filed against it. What does this mean?
Answer: A property owner claims that regulation so restricts their land that compensation is owed
A regulatory taking claim arises when a property owner argues that government regulation (including utility easements or operations) has deprived them of substantially all economic use of their property, requiring compensation.
What is the purpose of an 'Integrated Resource Plan' (IRP) that many state regulators require utilities to file?
Answer: To outline how the utility will meet future energy demand at least cost
An IRP is a long-term planning document that identifies the most cost-effective mix of supply resources and demand-side measures to meet projected customer needs.
Under the Occupational Safety and Health Act, what is a utility's 'general duty' to employees?
Answer: To furnish a workplace free from recognized hazards likely to cause serious harm
OSHA's General Duty Clause requires employers to provide a workplace free from recognized hazards that are causing or likely to cause death or serious physical harm.
Which concept describes the legal obligation of a utility to serve all customers within its service territory who request service and meet reasonable requirements?
Answer: Duty to serve
The 'duty to serve' is a foundational legal obligation requiring regulated utilities to provide service to any customer within their territory who requests it.