US FERC 18 CFR 385.602 Settlement Offers: A Rule 602 Guide

Key Takeaways

• An offer of settlement not approved by the Commission is not admissible in evidence.
• Comments on a settlement offer must be filed within 20 days of its filing.
• Reply comments on a settlement offer may be filed within 30 days of its filing.
• Failure to file a comment waives all objections to the offer of settlement.

Understanding US FERC 18 CFR 385.602 (Rule 602)

US FERC 18 CFR 385.602, known as Rule 602, governs the submission of formal settlement offers within the Federal Energy Regulatory Commission's (FERC) Rules of Practice and Procedure. This rule establishes clear guidelines for how settlement offers are handled, including protections for unapproved offers and strict timelines for public comment. We checked these provisions on 31 August 2026.

Inadmissibility of Unapproved Offers and Discussions

A core protection under Rule 602 is the inadmissibility of unapproved settlement offers. An offer of settlement that is not approved by the Commission, and any comment on that offer, is not admissible in evidence against any participant who objects to its admission. This protection extends to discussions surrounding such offers. Any discussion of the parties with respect to an offer of settlement that is not approved by the Commission is not subject to discovery or admissible in evidence. This ensures that parties can engage in settlement negotiations without fear that unapproved proposals will be used against them in later proceedings.

Comment and Reply Comment Windows

Rule 602 sets specific deadlines for stakeholders to provide feedback on settlement offers. A comment on an offer of settlement may be filed not later than 20 days after the filing of the offer of settlement. Following this, reply comments may be filed not later than 30 days after the filing of the offer. The participant serving the offer of settlement must notify any person or participant served of the date on which comments on the settlement are due.

Consequences of Failing to Comment

Failure to adhere to the comment schedule has significant implications. Any failure to file a comment constitutes a waiver of all objections to the offer of settlement. This provision underscores the importance of timely engagement in the settlement process.

Contested and Uncontested Settlements

When an offer of settlement is contested, specific requirements apply. Any comment that contests an offer of settlement by alleging a dispute as to a genuine issue of material fact must include an affidavit detailing any genuine issue of material fact. Reply comments may also include responding affidavits.

Conversely, if an offer of settlement is uncontested, the presiding officer will certify to the Commission the offer of settlement, along with a statement that the offer of settlement is uncontested.

For related procedural guidance, you may consult our guides on US FERC 18 CFR 385.206 Complaints (Rule 206), US FERC 18 CFR 385.214 Intervention (Rule 214), and US FERC 18 CFR 35.41 Market Behavior Rules.