ERL Blog

On March 12, 2010, in Docket Nos. NP10-49 through -51, FERC issued a notice stating that it will not review further, on its own motion, the notices of penalty (NOPs) submitted on February 12, 2010. To view NERC’s notice, click here.

On March 10, 2010, in Docket No. RR10-7, NERC submitted a petition to FERC seeking approval of (1) amendments to the NERC/SERC delegation agreement; (2) amendments to the NERC/FRCC delegation agreement; (3) amendments to the NERC/Southwest Power Pool Regional Entity delegation agreement; (4) amendments to the SERC bylaws; (5) an agreement between SERC and FRCC concerning Compliance Monitoring and Enforcement of FRCC Registered Functions; and, (6) an agreement between SERC and Southwest Power Pool Regional Entity concerning Compliance Monitoring and Enforcement of SPP, Inc. Registered Functions. To view NERC’s filing, click here.

On March 8, 2010, FERC issued a letter in Docket Nos. RR09-9-002, RR08-6-004, and RR07-14-004, accepting NERC’s January 11, 2010, compliance filing and granting NERC’s request for an extension until May 3, 2010, to submit the evaluation of the adequacy of ERO and Regional Entity resources for implementing the processing of technical feasibility exceptions (TFE) required by the Commission’s October 15, 2009, Order on the 2010 Business Plans and Budgets of NERC and Regional Entities. To view the Commission’s Letter Order, click here.

On March 5, 2010, in Docket Nos. RR08-4-000, -001, and -002, NERC submitted a compliance filing and accompanying reports documenting NERC’s review of Violation Severity Level (VSL) assignments for specific FERC-approved Reliability Standards to determine consistency with FERC’s VSL assignment Guidelines 1, 2b, 3, and 4. NERC’s VSL Assignment Compliance Filing is submitted in response to the directives in the Commission’s June 19, 2008 VSL Order and November 20, 2008 VSL Order. In general, NERC explains that the filing contains the VSLs for the original 83 Reliability Standards approved by FERC and NUC-001-2, less VSLs for certain requirements that NERC has determined need further input and justification. NERC also explains that subsequent filing will contain the VSLs for the Reliability Standards submitted after the original 83 Reliability Standards, plus those requirements that were excluded from this first filing. To view NERC’s VSL Assignment Compliance Filing, click here.

On March 5, 2010, in Docket No. IN08-5-000, FERC issued an order approving a Stipulation and Consent Agreement (Agreement) between FERC’s Office of Enforcement, NERC, and the Florida Reliability Coordinating Council (FRCC). The Agreement is the result of an investigation of FRCC conducted by FERC and NERC into possible violations of Reliability Standards associated with the February 26, 2008, Florida Blackout. Among other things, FRCC agrees to pay a penalty of $350,000 which is to be divided between the U.S. Treasury and NERC. By way of background, in October, 2009, FPL was assessed a $25 million penalty by FERC for its violations of Reliability Standards in connection with this same event.

The investigation of FRCC and the penalty assessment represent a first-of-its-kind occurrence in the sense that FRCC is (1) a Regional Entity (like SERC) to which NERC has delegated responsibility for enforcing Reliability Standards within Florida, and (2) a Registered Entity, which means FRCC performs bulk-power system functions and must comply with certain Reliability Standards. The two relevant functions for which FRCC is registered are the Reliability Coordinator (RC) and Planning Authority (PA) functions. FRCC performs its function as the RC through a contract with Florida Power & Light Company (FPL”) under which “FPL executes the RC function through FPL control room personnel.” As the PA, FRCC has responsibility for reviewing certain system assessments conducted within FRCC. It is from FRCC's performance as a Registered Entity that the investigation and penalty stem – not from its performance as a Regional Entity.

FERC and NERC alleged that FRCC violated the following Reliability Standards: (1) PER-004-1 (R1); (2) IRO-002-1 (R1); and (3) IRO-001-1 (R9). These violations were based on FERC Staff’s view that: “FRCC did not staff the RC position and its associated independent communications systems during off peak hours and months with a dedicated operator. In addition, the RC operator was in a position where he chose to retain control over the FPL system and assign FRCC restoration responsibilities instead to a NERC-certified operator who also had served as an FRCC RC from time to time prior to the event and was present in the control center but not directly involved in operations on the day of the event.” (Order P 13).

FERC Staff and NERC also alleged that FRCC violated Reliability Standard COM-002-2 (R2) because FRCC “did not at all times utilize three-step communication processes during the restoration as required by the standard.” (Order P 14).

Lastly, FERC Staff and NERC alleged that FRCC violated Reliability Standard IRO-003-2 (R1 & R2), IRO-005-2 (R5 & R13), and TOP-006-1 (R5) because “the RC operator was not aware of the disabled protection at the Flagami substation and hence the resulting system conditions and therefore permitted the operation of the system in an unknown state…[and] during the restoration the RC had limited visibility of the systems affected by the event, and therefore could not directly monitor the status of some facilities.” (Order P 15).

In paying the $350,000 penalty, FRCC does not admit or deny that its actions constituted violations of the standards. Under the Agreement, FRCC is required to continue certain activities including: (1) ensuring its operators utilize the three-step communication process; (2) reinforcing with its members procedures surrounding the removal of protection; (3) staffing the RC position with a dedicated operator on a 24-7-365 basis; (4) conducting an independent review of the RC function to identify and develop further improvements; and (5) maintaining a FRCC employee to oversee the fulfillment of the RC functions. (Agreement P 16).

FRCC also agreed to undertake additional reliability enhancement measures including: (a) utilizing dynamic load modeling for system stability analysis across Florida; (b) coordinating the implementation of these load models by each Transmission Planner and Planning Authority; and (c) making adjustments to the models as needed. (Agreement P 17). FRCC will also enhance its planning assessment process “to strengthen its policies and procedures for evaluating BES performance” in meeting the requirements of TPL-002-0 (R1.3.10) with a commitment to various enhanced processes detailed in the Agreement. (Agreement P 18). FRCC also is required under the Agreement to make semi-annual reports to FERC Enforcement Staff and NERC for up to two years on its compliance with the Agreement and the Reliability Standards. (Agreement P 19).

To read FERC’s official press release regarding the FRCC order, click here.
To read FERC’s order approving the FRCC Agreement, click here.

On March 3, 2010, FERC issued a letter order in Docket Nos. RR09-9-001, et al., accepting NERC’s December 11, 2009, compliance filing concerning the 2010 Business Plan and Budget. To view FERC’s letter order, click here.

On March 3, 2010, in Docket Nos. NP10-36 through -48, FERC issued a notice stating that it will not review further, on its own motion, the notices of penalty (NOPs) submitted on February 1, 2010. To view NERC’s notice, click here.

On March 3, 2010, FERC issued a notice extending until April 12, 2010, the period in which to file comments in response to the Commission’s January 21, 2010 notice of inquiry (NOI) seeking comments on the extent to which barriers may exist that impede the reliability and efficient integration of variable energy resources (VERs) into the electric grid, and whether reforms are needed to eliminate those barriers. To view FERC’s notice extending the comment period for the VER NOI, click here.

On March 1, 2010, NERC submitted the following notices of penalty to FERC for review:

Docket No. NP10-52: To view the NOP for Verso Androscoggin, click here.
Docket No. NP10-53: To view the NOP for Verso Bucksport, click here.
Docket No. NP10-54: To view the NOP for Nevada Power Co., click here.
Docket No. NP10-55: To view the NOP for Inland Power & Light Co., click here.
Docket No. NP10-56: To view the NOP for Chelan County PUD, click here.
Docket No. NP10-57: To view the NOP for PPL Montana LLC (PRC-005), click here.
Docket No. NP10-58: To view the NOP for EFS Parlin Holdings, click here.
Docket No. NP10-59: To view the NOP for PPL Montana LLC (VAR-002), click here.
Docket No. NP10-60: To view the NOP for Midway Sunset Cogen, click here.
Docket No. NP10-61: To view the NOP for Sunflower Elec. Power, click here.
Docket No. NP10-62: To view the NOP for CalPeak Power Panoche, click here.
Docket No. NP10-63: To view the NOP for CalPeak Power Vaca Dixon, click here.
Docket No. NP10-64: To view the NOP for SoCal Edison T&D, click here.
Docket No. NP10-65: To view the NOP for Mirant Delta, click here.
Docket No. NP10-66: To view the NOP for Arizona Pub. Serv. Co., click here.
Docket No. NP10-67: To view the NOP for City of Palo Alto, click here.
Docket No. NP10-68: To view the NOP for Energy Northwest, click here.
Docket No. NP10-69: To view the NOP for Colorado Energy Mgmt., click here.
Docket No. NP10-70: To view the NOP for Salt River Project, click here.

On February 26, 2010, in Docket No. NP10-18-000, FERC issued an order initiating, on its own motion, a review of the November 13, 2009, notice of penalty (NOP) regarding Turlock Irrigation District (Turlock). Although the November 13 NOP addressed alleged violations of numerous Reliability Standards, the Commission’s review initiated by the February 26 order concerns only the alleged violation of Reliability Standard FAC-003-1, Requirement R2 relating to the vegetation-caused outage on August 29, 2007, that let to a losss of 270 MW of firm load in the service areas of Turlock and a neighboring registered entity, Modesto Irrigation District. To read FERC’s order, click here.

On February 26, 2010, in Docket No. NP10-40, NERC submitted information regarding the risk impact of the violations addressed in the notice of penalty (NOP) submitted on February 1, 2010, regarding Farmington Electric Utility System (FEUS). To view NERC’s supplemental filing regarding the FEUS NOP, click here.

On February 25, 2010, in Docket No. NP10-48, NERC submitted information regarding the risk impact of the violations addressed in the notice of penalty (NOP) submitted on February 1, 2010, regarding New York State Electric & Gas Corporation (NYSEG). To view NERC’s supplemental filing regarding the FEUS NOP, click here.

On February 24, 2010, NERC submitted supplemental information in support of the pending notice of penalty (NOP) for Turlock Irrigation District that was submitted on November 13, 2009, in Docket No. NP10-18. To view NERC’s supplemental filing, click here.

On February 19, 2010, in Docket No. RR10-6, NERC submitted a petition to FERC seeking approval of an agreement delegating authority to Texas Reliability, Inc. as the Regional Entity for the ERCOT Region and successor to Texas Regional Entity, a division of ERCOT. NERC’s submittal also contained the 2010 Business Plan and Budget of Texas Reliability, Inc. To view NERC’s filing, click here.

On February 16, 2010, in Docket No. NP10-20, NERC submitted information responsive to FERC’s January 29, 2010, order requesting additional data and documents regarding the notice of penalty (NOP) submitted on December 30, 2009, for Duke Energy Corporation. To view NERC’s filing, click here.

On February 16, 2010, in Docket No. NP10-25, NERC submitted information responsive to FERC’s January 29, 2010, order requesting additional data and documents regarding the notice of penalty (NOP) submitted on December 30, 2009, for El Paso Electric Company. To view NERC’s filing, click here.

On February 16, 2010, in Docket Nos. NP10-32 through -35, NERC and SERC submitted information responsive to the Commission’s January 29, 2010, Request for Data and Documents regarding the notices of penalty (NOP) submitted on December 30, 2009, for Gulf Power Company, Mississippi Power Company, Alabama Power Company, and Southern Power Company. To view NERC’s and SERC’s filing, click here.

NERC has made available the complete agenda package for the February 16, 2010 NERC Board of Trustees (BOT) meeting.  To view the NERC BOT agenda, click here. 

NERC has made available the complete agenda package for the February 15, 2010 NERC Member Representative Committee (MRC) meeting.  To view the NERC MRC agenda, click here.

On February 12, 2010, NERC submitted the following notices of penalty to FERC for review:

Docket No. NP10-49: To view the NOP for MEAG, click here.
Docket No. NP10-50: To view the NOP for Henderson Muni. Power & Light, click here.
Docket No. NP10-51: To view the NOP for Duke Energy Carolinas, click here.

On February 12, 2010, NERC issued Compliance Process Bulletin No. 2010-002 announcing updates to the 2010 CMEP Implementation Plan and the 2010 Actively Monitored List. As NERC explains, the changes discussed in Bulletin No. 2010-002 reflect the implementation of Version 2 of the CIP-002 through CIP-009 Reliability Standards, the implementation of Version 2 of the NUC-001 Reliability Standard, as well as other miscellaneous clean-up items specifically identified in the Bulletin. To view Compliance Process Bulletin No. 2010-002, click here.

On February 5, 2010, in Docket No. RR10-4, FERC approved the proposed amendments to Appendix 3A, Reliability Standards Development Procedure, to NERC’s Rules of Procedure (ROP) that NERC submitted on November 23, 2009. To view FERC’s letter order approving the amendments to NERC’s ROP, click here.

On February 3, 2010, in Docket No. AD10-5-000, FERC issued a notice requesting comments on RTO/ISO performance metrics, including six reliability metrics. The Commission’s notice requesting comments is an outgrowth of a September 2008 report of by the United States Government Accountability Office (GAO) entitled “Electricity Restructuring: FERC Could Take Additional Steps to Analyze Regional Transmission Organizations’ Benefits and Performance.” GAO’s report recommends that FERC work with RTOs, ISOs, and stakeholders to develop standardized measures to track the performance of RTO/ISO operations and markets and report the performance results to Congress and the public annually. Accordingly, Commission staff has worked with staff from the various RTOs and ISOs to develop a set of performance metrics that RTOs and ISOs will use to report annually to the Commission. Comments on the proposed RTO/ISO performance metrics are due on or before March 5, 2010, with reply comments becoming due on or before March 19, 2010.

To view the Commission’s Notice Requesting Comments, click here.
To view the RTO/ISO Metrics to be commented upon, click here.

On February 2, 2010, NERC submitted a doc-less motion to intervene in FERC Docket No. ER08-1281 concerning the New York Independent System Operator (NYISO) Report on Broader Regional Markets; Long Term Solutions to Lake Erie Loop Flow filed with the Commission on January 12, 2010. As the basis for its intervention, NERC explains that the NYISO’s Report includes proposed regional market solutions predicated on NERC actions and, therefore, NERC has a substantial interest in the proceeding that cannot be represented by any other party. To view, NERC’s motion to intervene, click here.

On February 14, 2010, NERC submitted the following notices of penalty (NOPs) to FERC for review:

(1) NOP regarding California Independent System Operator (CAISO) for a violation of Reliability Standard IRO-006-1, Requirement WR1 for its failure to provide the proper amount of required relief on a quantified path during a multi-hour unscheduled flow event. CAISO does not dispute the violation or the proposed zero dollar financial penalty. To read the CAISO NOP, click here.

(2) NOP regarding Calpine Corporation (Calpine) for violations of: (i) Reliability Standard PERC-005-1, Requirements R1 and R2 for Calpine’s failure to: (a) provide its maintenance and testing intervals or basis and a summary of its maintenance and testing procedures for all eight of its plants located in the SERC Region; and, (b) show that its Protection System devices were maintained and tested within the defined intervals and the date each Protection System device was last tested/maintained for all eight of its plants located in the SERC Region; and, (ii) Reliability Standard IRO-004-1, Requirement R4 for Calpine’s failure to produce evidence that it was providing its Reliability Coordinator with information required for system studies. Calpine neither admits nor denies the alleged violations but agrees to the proposed penalty of $140,000. To read the Calpine NOP, click here.

(3) NOP regarding Calpine Energy Services (CES) for violations of: (i) Reliability Standard TOP-002-2, Requirement R3 for CES’s failure to provide evidence that it was coordinating current-day, next-day, and seasonal operations with its Host Balancing Authority: (ii) Reliability Standard TOP-003-0, Requirement R1 for CES’s failure to provide evidence that it was providing daily outage information to its Transmission Operator; (iii) Reliability Standard TOP-005-1, Requirement R4 for CES’s failure to provide evidence that it was providing information to its Host Balancing Authority and Transmission Operator for operational reliability assessments and to coordinate reliable operations; and, (iv) Reliability Standard IRO-004, Requirement R4 for CES’s failure to produce evidence that it was providing information to its Reliability Coordinator required for system studies. CES neither admits nor denies the alleged violations underlying the NOP but has agreed to the proposed penalty of $20,000. To read the CES NOP, click here.

(4) NOP regarding Electric Energy, Inc. (EEI) for its violation of Reliability Standard BAL-002-0, Requirement R4 for its failure to achieve a Disturbance Control Standard even average recovery of 100% for the third quarter of 2008. Additionally, during a Compliance Audit, SERC determined that EEI violation the requirements of Reliability Standard PER-002-0, Requirement R3 for its failure to have a set of training programs objectives referencing knowledge and competencies needed to apply standards, procedures, and requirements to normal, emergency, and restoration conditions. EEI admits the violations set forth in the NOP and agrees to the proposed penalty of $5,000. To read the EEI NOP, click here.

(5) NOP regarding Farmington Electric Utility System for self-reported violations of eleven Reliability Standards and violations of nine additional Reliability Standards discovered during an on-site Compliance Audit conducted by WECC. Under the terms of the Settlement Agreement with WECC, FEUS agrees to the $40,250 penalty. To read the FEUS NOP, click here.

(6) NOP regarding FEUS for a self-reported violation of Reliability Standard PRC-017-0, Requirement R1.6 for its failure to perform annual maintenance and testing on the Glade Remedial Action Schedule, which is an element of the Northeast/Southeast Remedial Action Schedule. FEUS does not dispute the violation of PRC-017-0, Requirement R1.6 or the proposed $15,000 financial penalty. To read the FEUS NOP, click here.

(7) Abbreviated NOP regarding Montana-Dakota Utilities Company (MDU) for its self-reported violation of Reliability Standard PRC-005-1, Requirement R2 for its failure to conduct hydrometer readings on substation storage batteries every three months. MDU neither admits nor denies the violation of Reliability Standard PRC-005-1 but agrees to the proposed penalty of $4,000. To read the MDU NOP, click here.

(8) NOP regarding Nebraska Public Power District’s (NPPD) self-certified non-compliance with: (i) Reliability Standard BAL-005-0, Requirement R11 for its failure to utilize ramp rates for schedule changes entered at times other than the top of the hour that were identical to the agreed-upon ramp rate of the affected Balancing Authorities; (ii) Reliability Standard PRC-005-1, Requirement R2 for its failure to comply with its defined maintenance and testing intervals; and (iii) Reliability Standard FAC-003-1, Requirement R2 for its failure to anticipate tree and conductor movement that caused an outage during a winter storm. NPPD neither admits nor denies the alleged violations but agrees to the proposed penalty of $70,500. To read the NPPD NOP, click here.

(9) NOP regarding New York State Electric & Gas Corporation (NYSEG) for two violations of Reliability Standard FAC-003-1, Requirement R2 for failure to properly maintain vegetation clearance according to NYSEG’s Transmission Vegetation Management Program. NYSEG neither admits nor denies the two alleged violations of FAC-003-1 but agrees to the proposed penalty of $250,000. To read the NYSEG NOP, click here.

(10) NOP regarding Overton Power District #5 (OPD) for violations of Reliability Standards FAC-001-0, Requirements R1, R2, and R3, FAC-008-1, Requirement R1, FAC-009-1, Requirement R1, PRC-005-1, Requirement R1, and TOP-002-2, Requirement R18 for OPD’s failure to: (i) produce documented and published facility connection requirements for generation facilities, transmission facilities and end-user facilities; (ii) document, maintain, and publish a set of facility connection requirements; (iii) maintain, update, and make these connection requirements available as required; (iv) document its Facility Ratings Methodology; (v) establish Facility Ratings consistent with the associated Facility Ratings Methodology; (vi) have a Protection System maintenance and testing program; and, (vii) use uniform line identifiers when referring to transmission facilities of an interconnected network with its neighboring Transmission Operator. OPD neither admits nor denies the alleged violations but agrees to the proposed penalty amount of $10,000. To read the OPD NOP, click here.

(11) NOP regarding Public Service Electric & Gas Company (PSE&G) for violation of Reliability Standard PRC-005-1, Requirement 2.1 for PSE&G’s failure to maintain documentation of some of the maintenance and testing it conducted on its Protection System devices. PSE&G niether admits nor denies the alleged violation but agrees to the proposed penalty of $5,000. To read the PSE&G NOP, click here.

(12) NOP regarding Puget Sound Energy, Inc. (PSEI) for violations of Reliability Standards FAC-003-1, Requirement R1 and EOP-001, Requirement R6 for PSEI’s failure to: (i) train all personnel directly involved in the design and implementation of the formal transmission vegetation management program; and (ii) annually review, update, and provide copies of ten emergency plans to appropriate parties. To read the PSEI NOP, click here.

(13) NOP regarding Utah Associated Municipal Power Systems (UAMP) for violations of Reliability Standards MOD-010-0, Requirements R1 and R2 and MOD-012-0, Requirements R1 and R2 for UAMP’s failure to: (i) provide appropriate equipment characteristics, system data, and existing and future Interchange Schedules in compliance with its respective Interconnection Regional steady-state modeling and simulation data requirements and reporting procedures for small behind-the-meter generating facilities; (ii) provide that data as required to WECC, NERC, and other appropriate entities; (iii) provide appropriate equipment characteristics and system data in compliance with the respective Interconnection-wide Regional dynamics systems modeling and simulation data requirements and reporting procedures for small behind-the-meter generating facilities; and, (iv) provide that data as required to WECC, NERC, and other appropriate entities. UAMP neither admits nor denies the alleged violations but agrees to the proposed penalty of $4,000. To read the UAMP NOP, click here.

On January 29, 2010, FERC issued a notice stating that it would not further review, on its own motion, the following Notices of Penalty (NOPs):

(1) Docket No. NP10-21 regarding City of Cleveland, Department of Public Utilities;
(2) Docket No. NP10-22 regarding Entergy;
(3) Docket No. NP10-23 regarding Eugene Water & Electric Board;
(4) Docket No. NP10-24 regarding Fountain Valley Power, LLC;
(5) Docket No. NP10-26 regarding Avista Corporation;
(6) Docket No. NP10-27 regarding Alliant Energy-West;
(7) Docket No. NP10-28 regarding Southwestern Electric Coop., Inc.
(8) Docket No. NP10-29 regarding Sacramento Municipal Utility District;
(9) Docket No. NP10-30 regarding South Eastern Electric Development Corporation; and
(10) Docket No. NP10-31 regarding South Eastern Generating Corporation.

To view FERC's notice, click here.  

On January 29, 2010, NERC submitted to FERC its fourth quarter 2009 report on the analysis of voting results for Reliability Standards. To view NERC’s submittal, click here.

On January 29, 2010, in Docket No. NP10-20, FERC issued an order requesting additional data and documents regarding the notice of penalty (NOP) submitted on December 30, 2009, for Duke Energy Corporation. To view NERC’s filing, click here.

On January 29, 2010, in Docket No. NP10-25, FERC issued an order requesting additional data and documents concerning the December 30, 2009, notice of penalty regarding El Paso Electric Company. To view FERC’s order, click here.

On January 29, 2010, in Docket Nos. NP10-32 through -35, FERC issued an order requesting additional data and documents regarding the notices of penalty (NOPs) submitted on December 30, 2009, for Gulf Power Company, Mississippi Power Company, Alabama Power Company, and Southern Power Company. To FERC’s order, click here.

On January 27, 2010, NERC issued Compliance Process Bulletin No. 2010-001 regarding the interim program for Technical Feasibility Exceptions (TFEs) under Reliability Standards CIP-002 through CIP-009, Versions 1 and 2. With respect to Version 3 of the CIP Reliability Standards, which NERC submitted to FERC on December 29, 2009, NERC explains that the Version 3 Standards also would be subject to the TFE process set forth in this Bulletin. This Bulletin is being issued in response to the January 21, 2010, FERC order approving the proposed revisions to the NERC Rules of Procedure to establish a permanent TFE program, subject to revisions to be submitted in a compliance filing. To view Compliance Process Bulletin No. 2010-001, click here.

On January 26, 2010, in Docket No. NP10-18, NERC submitted information responsive to FERC’s January 11, 2010, order requesting additional data and documents regarding the notice of penalty (NOP) submitted on November 13, 2009, for Turlock Irrigation District. To view NERC’s filing, click here.

On January 26, 2010, NERC President and CEO Gerry Cauley announced new assignments within his executive management team. Mr. Cauley states that “These changes will align the strengths of NERC’s leadership with the organizations’ increased focus on risk-based approaches to improving bulk power system reliability performance while maintaining its strong compliance enforcement capability.” Notably, Mr. Cauley explains that the NERC compliance program will be separated into a “Compliance Operations Division” and an “Enforcement Division”, with both the directors for such divisions reporting directly to him. The changes outlined in Mr. Cauley’s announcement will become effective February 1, 2010. To read Mr. Cauley’s announcement, which includes details on each of the impending assignment-changes to the NERC executive team, click here.

On January 21, 2010, FERC issued an order in Docket No. RM08-7-002 denying the NRG Companies, Electric Power Supply Association, and Constellation Energy Commodities Group (collectively, Rehearing Parties) request for rehearing and clarification of FERC Order No. 713-A, in which FERC accepted NERC’s revisions to the transmission loading relief requirements (TLR) in Reliability Standard IRO-006-4.  The Rehearing Parties assert that the TLR Reliability Standard violates the curtailment priorities established in Orders 888 and 890 and the pro forma open access transmission tariff (OATT), because the standard grants curtailment priority to native network load transactions over interchange transactions.  In addition, the Rehearing Parties contend, FERC accepted the Reliability Standard without giving due consideration to the Standard’s impact on competition.  FERC concludes in its order that the concerns raised by the Rehearing Parties regarding a potential conflict between the TLR Procedure and the curtailment priority provisions of the OATT are beyond the scope of this proceeding; however, FERC is issuing a Notice of Inquiry concurrent to this order in Docket No. RM10-9-000 seeking comment on the issues raised by the Rehearing Parties. To view the order, click here.

On January 21, 2010, FERC issued a Notice of Inquiry in Docket No. RM10-9-000 requesting comment from the industry regarding the relationship between the transmission loading relief (TLR) requirements of Reliability Standard IRO-006-4 and curtailment priorities in the FERC-approved pro forma Open Access Transmission Tariff (OATT).  FERC is seeking comments on whether Reliability Standard IRO-006-4 directs a reliability coordinator to curtail a firm interchange transaction crossing over a constrained flowgate prior to curtailing a non-firm native network load transaction across the same flowgate.  To view the Notice of Inquiry, click here.

On January 21, 2010, FERC issued an order approving two amendments to the NERC Rules of Procedure as submitted by NERC in response to FERC Order No. 706 to establish procedures that a Responsible Entity must follow to obtain a Technical Feasibility Exception for certain requirements in the Critical Infrastructure Protection (CIP) Reliability Standards.  The revised NERC Rules of Procedure contain a new section 412, “Requests for Technical Feasibility Exceptions to NERC Critical Infrastructure Protection Reliability Standards” and a new Appendix 4D, “Procedure for Requesting and Receiving Technical Feasibility Exceptions to NERC Critical Infrastructure Protection Standards.”  To view the order, click here.

On January 21, 2010, FERC issued an order approving a modified Nuclear Plant Interface Coordination (NUC) Reliability Standard, NUC-001-2, that was filed by NERC to address FERC’s directives set forth in Order No. 716 approving the initial version of the NUC standard.  The revisions approved by FERC: (1) clarify the phrase “coping times”; and (2) ensure that integrated utilities document the compliance procedures that are to be performed by separate business units.  To view the order, click here.

On January 21, 2010, in Docket No. RM10-11, FERC issued a notice of inquiry (NOI) seeking comments on the extent to which barriers may exist that impede the reliability and efficient integration of variable energy resources (VERs) into the electric grid, and whether reforms are needed to eliminate those barriers. To read FERC’s VER NOI, click here.

On January 20, 2010, FERC issued an order Docket Nos. RM08-19, RM09-5, and RM06-16 granting rehearing for further consideration of Order No. 729 concerning Reliability Standards for the calculation of available transfer capaibility, capacity benefit margins, transmission reliability margins, total transfer capability, and existing transmission commitments.  issued on November 24, 2009,  To view FERC’s order granting rehearing, click here.

On January 19, 2010, NERC submitted a compliance filing in Docket No. RM06-22-010 in response to FERC’s December 17, 2009 Order directing NERC to submit additional information regarding its Version 1 CIP Reliability Standards Implementation Plan for nuclear power plant Generator Owners “(GOs) and Generator Operators (“GOPs”).  NERC’s filing also addressesthe December 17 Order’s directive to to include in the Implementation Plan the implementation of the Version 2 CIP Reliability Standards by nuclear plant GOs and GOPs on the same schedule established for Version 1.  To view the compliance filing, click here.

On January 14, 2010, FERC issued a letter order in Docket No. RR10-2 accepting the proposed amendments to delegation agreements between NERC and each of the eight Regional Entities that NERC submitted on November 12, 2009, for the purpose of extending the initial term of each such delegation agreement until May 1, 2010. To view FERC’s letter order, click here.

On January 14, 2010, FERC issued a letter order in Docket No. RR10-5 accepting the proposed revisions to the bylaws of Southwest Power Pool, Inc. (SPP) that NERC submitted on December 1, 2009. To view FERC’s letter order, click here.

On January 14, 2010, FERC issued a letter order in Docket No. RR10-3 accepting NERC's proposed amendments to its Rules of Procedure (ROP) that NERC submitted on November 12, 2009, in order to reflect the elimination of the Reliability Readiness Evaluation and Improvement Program. To view FERC’s letter order, click here.

On January 11, 2010, in Docket Nos. RR09-9-002, RR08-6-004, and RR07-14-004, NERC submitted a “partial” compliance filing in response to the Commission’s October 15, 2009, Order on the 2010 Business Plans and Budgets of NERC and Regional Entities. NERC’s partial compliance filing responds to the Commission's directive in the October 15 Order that NERC submit an evaluation of the adequacy of ERO and Regional Entity resources for implementing the processing of technical feasibility exceptions (TFE).  NERC states that such an evaluation is premature at this time due to the small number of TFE Requests that have been submitted. (137).  Accordingly, NERC requests that it be allowed to submit a further evaluation on or before May 3, 2010. To view NERC’s Compliance Filing, click here.

On January 11, 2010, a Memorandum of Understanding (MOU) between NERC and the Nuclear Regulatory Commission (NRC) was noticed in the Federal Register. The purpose of the NERC-NRC MOU is to set forth and coordinate the roles and responsibilities of each organization with respect to the application of their respective cyber-security requirements for the protection of digital assets at commercial nuclear power plants in the United States. The MOU's effective date is December 30, 2009.  To read the Federal Register Notice for the NERC/NRC MOU, click here.

On January 11, 2010, in Docket No. NP10-18, FERC issued an order requesting NERC to provide additional data and documents regarding the November 13, 2009, notice of penalty (NOP) for Turlock Irrigation District. To view FERC’s order filing, click here.

On January 5, 2010, in Docket No. NP09-26, FERC issued an order rejecting the US Army Corps of Engineers – Tulsa District (COE – Tulsa) request for rehearing of the Commission’s October 15, 2009, order affirming the COE – Tulsa and other federal entities that use, own or operate the Bulk Power System must comply with mandatory Reliability Standards. To read the Commission’s order rejecting COE – Tulsa’s Rehearing Request, click here.

On December 31, 2009, NERC submitted a petition in Docket No. RM06-16-000 seeking FERC’s approval of three revised emergency preparedness and operations Reliability Standards: EOP-001-1, EOP-005-2, and EOP-006-2.  In its petition, NERC also requests that Reliability Standards EOP-001-0, EOP-005-1, EOP-006-1, and EOP-009-0 be retired concurrent with the implementation of the above three standards.  To view NERC’s petition click here.

On December 31, 2009, in Docket No. RM06-16, NERC submitted proposed Interconnection Reliability Operating Limit (IRO) Reliability Standards for approval. Specifically, NERC submits proposed Reliability Standards IRO-008-1 (Reliability Coordinator Operational Analyses and Real-time Assessments); IRO-009-1 (Reliability Coordinator Actions to Operate within IROLs); and, IRO-010-1a (Reliability Coordinator Data Specification and Collection). NERC explains that the implementation plan for the new IRO Reliability Standards calls for modifications to or deletions of the following standards:

(1) EOP-001-0 (Emergency Operations Planning) (retire Requirement R2);
(2) IRO-002-1 (Reliability Coordination – Facilities) (retire Requirement R2);
(3) IRO-004-1 (Reliability Coordination – Operations Planning) (retire Requirements R1 through R6);
(4) IRO-005-2 (Reliability Coordination – Current Day Operations) (retire requirements R2, R3, R5, R16, and R17; modify Requirements R9, R13, and R14);
(5) TOP-003-0 (Planned Outage Coordination) (modify Requirement R1.2);
(6) TOP-005-1 (Operational Reliability Information) (retire Requirements R1 and R1.1; modify Attachment 1); and,
(7) TOP-006-1 (Monitoring System Conditions) (modify Requirement R4).

As a result of these modifications, NERC also submitted revised versions of these standards for approval. In addition, NERC requests approval of two new definitions: “Operation Planning Analysis” and “Real-time Assessment”. To view NERC’s filing, click here.