7.1.5 Decision

Approval of a settlement as the basis of a new license must be based on substantial evidence[1] and must not be arbitrary or capricious.  In other words, a settlement must meet the same legal standards as a final decision in a disputed proceeding.  If the record does not contain substantial evidence upon which to base a reasoned decision, FERC may establish procedures for the purpose of receiving additional evidence.[2]


[1]               See 18 C.F.R.§§ 385.602(g), (h).

[2]               See 18 C.F.R. § 385.602(h).