Mandatory Reliability Standards for the Bulk-Power System, 031607 FERC, RM06-16-000

Docket Nº:RM06-16-000
Party Name:Mandatory Reliability Standards for the Bulk-Power System No. 18 CFR Part 40
Judge Panel:Before Commissioners: Joseph T. Kelliher, Chairman; Suedeen G. Kelly, Marc Spitzer, Philip D. Moeller, and Jon Wellinghoff. Philis J. Posey, Acting Secretary.
Case Date:March 16, 2007
Court:Federal Energy Regulatory Commission
 
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Mandatory Reliability Standards for the Bulk-Power System

No. RM06-16-000

No. 18 CFR Part 40

United States of America, Federal Energy Regulatory Commission

March 16, 2007

Order No. 693.

AGENCY: Federal Energy Regulatory Commission, DOE.

ACTION: Final Rule.

SUMMARY: Pursuant to section 215 of the Federal Power Act (FPA), the Commission approves 83 of 107 proposed Reliability Standards, six of the eight proposed regional differences, and the Glossary of Terms Used in Reliability Standards developed by the North American Electric Reliability Corporation (NERC), which the Commission has certified as the Electric Reliability Organization (ERO) responsible for developing and enforcing mandatory Reliability Standards. Those Reliability Standards meet the requirements of section 215 of the FPA and Part 39 of the Commission's regulations. However, although we believe it is in the public interest to make these Reliability Standards mandatory and enforceable, we also find that much work remains to be done. Specifically, we believe that many of these Reliability Standards require significant improvement to address, among other things, the recommendations of the Blackout Report. Therefore, pursuant to section 215(d)(5), we require the ERO to submit significant improvements to 56 of the 83 Reliability Standards that are being approved as mandatory and enforceable. The remaining 24 Reliability Standards will remain pending at the Commission until further information is provided.

The Final Rule adds a new part to the Commission's regulations, which states that this part applies to all users, owners and operators of the Bulk-Power System within the United States (other than Alaska or Hawaii) and requires that each Reliability Standard identify the subset of users, owners and operators to which that particular Reliability Standard applies. The new regulations also require that each Reliability Standard that is approved by the Commission will be maintained on the ERO's Internet website for public inspection.

EFFECTIVE DATE: This rule will become effective [insert date 60 days from the date the rule is published in the Federal Register]

FOR FURTHER INFORMATION CONTACT:

Jonathan First (Legal Information)

Office of the General Counsel

Federal Energy Regulatory Commission

888 First Street, N.E.

Washington, D.C. 20426

(202) 502-8529

Paul Silverman (Legal Information)

Office of the General Counsel

Federal Energy Regulatory Commission

888 First Street, N.E.

Washington, D.C. 20426

(202) 502-8683

Robert Snow (Technical Information)

Office of Energy Markets and Reliability

Division of Reliability

Federal Energy Regulatory Commission

888 First Street, N.E.

Washington, D.C. 20426

(202) 502-6716

Kumar Agarwal (Technical Information)

Office of Energy Markets and Reliability

Division of Policy Analysis and Rulemaking

Federal Energy Regulatory Commission

888 First Street, N.E.

Washington, D.C. 20426

(202) 502-8923

SUPPLEMENTARY INFORMATION:

Before Commissioners: Joseph T. Kelliher, Chairman; Suedeen G. Kelly, Marc Spitzer, Philip D. Moeller, and Jon Wellinghoff.

FINAL RULE

TABLE OF CONTENTS

I. Introduction .................................................................................................................... 1.

A. Background .............................................................................................................. 3.

1. EPAct 2005 and Order No. 672 ............................................................................ 3.

2. NERC Petition for Approval of Reliability Standards ....................................... 12.

3. Staff Preliminary Assessment and Commission NOPR ..................................... 15.

4. Notice of Proposed Rulemaking ......................................................................... 17.

II. Discussion ................................................................................................................... 21.

A. Overview ................................................................................................................ 21.

1. The Commission's Underlying Approach to Review and Disposition of the Proposed Standards .................................................................................................. 21.

2. Mandates of Section 215 of the FPA .................................................................. 23.

3. Balancing the Need for Practicality with the Mandates of Section 215 and Order No. 672 .................................................................................................................... 29.

B. Discussion of the Commission's New Regulations .............................................. 34.

1. Applicability ....................................................................................................... 34.

2. Mandatory Reliability Standards ........................................................................ 40.

3. Availability of Reliability Standards .................................................................. 44.

C. Applicability Issues ................................................................................................ 50.

1. Bulk-Power System v. Bulk Electric System ..................................................... 50.

2. Applicability to Small Entities ........................................................................... 80.

3. Definition of User of the Bulk-Power System ................................................ 110.

4. Use of the NERC Functional Model ................................................................. 117.

5. Regional Reliability Organizations .................................................................. 146.

D. Mandatory Reliability Standards .......................................................................... 161.

1. Legal Standard for Approval of Reliability Standards ..................................... 161.

2. Commission Options When Acting on a Reliability Standard ......................... 169.

3. Prioritizing Modifications to Reliability Standards .......................................... 193.

4. Trial Period ....................................................................................................... 208.

5. International Coordination ............................................................................... 226.

E. Common Issues Pertaining to Reliability Standards ............................................ 234.

1. Blackout Report Recommendation on Liability Limitations ........................... 234.

2. Measures and Levels of Non-Compliance ........................................................ 238.

3. Ambiguities and Potential Multiple Interpretations ......................................... 264.

4. Technical Adequacy ......................................................................................... 282.

5. Fill-in-the-Blank Standards .............................................................................. 287.

F. Discussion of Each Individual Reliability Standard ............................................ 304.

1. BAL: Resource and Demand Balancing .......................................................... 305.

2. CIP: Critical Infrastructure Protection ............................................................. 445.

3. COM: Communications ................................................................................... 472.

4. EOP: Emergency Preparedness and Operations .............................................. 541.

5. FAC: Facilities Design, Connections, Maintenance, and Transfer Capabilities....677.

6. INT: Interchange Scheduling and Coordination .............................................. 795.

7. IRO: Interconnection Reliability Operations and Coordination ...................... 888.

8. MOD: Modeling, Data, and Analysis ............................................................ 1006.

9. PER: Personnel Performance, Training and Qualifications .......................... 1324.

10. PRC: Protection and Control ...................................................................... 1418.

11. TOP: Transmission Operations .................................................................. 1567.

12. TPL: Transmission Planning ...................................................................... 1684.

13. VAR: Voltage and Reactive Control ........................................................... 1847.

14. Glossary of Terms Used in Reliability Standards ........................................ 1887.

III. Information Collection Statement ......................................................................... 1900.

IV. Environmental Analysis ........................................................................................ 1909.

V. Regulatory Flexibility Act ..................................................................................... 1910.

VI. Document Availability .......................................................................................... 1947.

VII. Effective Date and Congressional Notification ................................................... 1950.

Appendix A: Disposition of Reliability Standards, Glossary...

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