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 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 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 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 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 30, 2009, NERC submitted notices of penalty (NOPs) to FERC for the following entities:

To view the NOP for Alliant Energy – West, click here.
To view the NOP for Alabama Power Company, click here.
To view the NOP for Avista Corporation, click here.
To view the NOP for City of Cleveland, click here.  
To view the NOP for Duke Energy Corporation, click here.
To view the NOP for El Paso Electric Company, click here.
To view the NOP for Entergy, click here.
To view the NOP for Eugene Water & Electric Board, click here.
To view the NOP for Fountain Valley Power, LLC, click here.
To view the NOP for Gulf Power Company, click here.
To view the NOP for Mississippi Power Company, click here.
To view the NOP for Sacramento Municipal Utility District, click here.
To view the NOP for South Eastern Electric Development, click here.
To view the NOP for South Eastern Generating Corp., click here.
To view the NOP for Southern Power Company, click here.  
To view the NOP for Southwestern Electric Co-op, click here.

On December 29, 2009, FERC submitted a compliance filing in Docket No. RD09-7-000 in response to FERC’s September 30, 2009 Order approving Version 2 of the Critical Infrastructure Protection (“CIP”) Reliability Standards.  In its compliance filing, NERC requests that FERC approve: 

 

(1) the Version 3 CIP Reliability Standards;

(2) a revised Implementation Plan for Newly Identified Critical Cyber Assets and Newly Registered Entities and the Implementation Plan for Version 3 of the Cyber Security Standards CIP-002-3 through CIP-009-3 that addresses FERC's directives in the Version 2 CIP Order; and 

(3) an update of the timetable that reflects the plan to address the remaining FERC directives from Order No. 706. 

To view NERC’s filing, click here.

On December 22, 2009, NERC submitted a request for clarification of FERC Order No. 729, in which FERC approved modifications to six Modeling, Data, and Analysis (MOD) Reliability Standards and directed NERC to make further modifications to the MOD Reliability Standards in order to make the processes for calculating available transfer capability (ATC) and its various components more transparent. Specifically, NERC requests that the Commission clarify its discussion in Paragraph 95 of Order No. 729 concerning the effective-date for the MOD Reliability Standards adopted in the Order. To view NERC’s request for clarification of Order No. 729, click here.

On December 22, 2009, in FERC Docket No. RM06-16-000, NERC submitted for Commission approval two interpretations of Reliability Standard CIP-006-2, Physical Security of Critical Cyber Assets. The interpretations address Requirements R1.1 and R4. NERC explains that, at the time the proposed interpretations were submitted to NERC, Version 1 of the CIP standards was the effective FERC-approved version of this Standard and, accordingly, the requests were processed referencing CIP-006-1.  Since then, however, CIP-006-2 was submitted to and approved by FERC. The changes in CIP-006-2 relative to Version 1 are not material to the substance of the instant interpretation request and, therefore, NERC states that it will append the interpretations to Version 2 of CIP-006 in lieu of Version 1. To view NERC’s filing of proposed interpretations of Reliability Standard CIP-006-2, click here.

On December 21, 2009, NERC released the Third Quarter 2009 Vegetation-Related Transmission Outage Report. As shown in the Report, no transmission line outages were caused by vegetation growing into the lines from within the rights-of-way between the months of July and September, 2009, a first in the six years the NERC has tracked this data. To view the 3Q 2009 Vegetation-Related Transmission Outage Report, click here.

On December 18, 2009, NERC issued a Compliance Process Bulletin intended to provide guidance to affected registered entities concerning the applicability and implementation of Version 1 of the Critical Infrastructure Protection (CIP) Reliability Standards CIP-002-1 through CIP-009-1, specifically with respect to newly identified Critical Assets and Critical Cyber Assets. To read NERC’s Compliance Process Bulletin, click here.

On December 18, 2009, NERC submitted for FERC approval proposed Violation Severity Level (VSL) assignments for Reliability Standards CIP-002-2, CIP-003-2, CIP-004-2, CIP-005-2, CIP-006-2, CIP-007-2, CIP-008-2, and CIP-009-2 and Violation Risk Factor (VRF) assignments for Reliability Standards CIP-003-2 and CIP-006-2. NERC explains that the NERC Board of Trustees approved the proposed VSL and VRF assignments on December 16, 2009. NERC requests that the proposed VSLs and VRFs be made effective upon FERC approval. To view NERC’s filing, click here.

On December 18, 2009, in FERC Docket No. RM08-3-000, NERC submitted revised Violation Risk Factors (VRFs) for Reliability Standard NUC-001-1, Nuclear Plan Interface Coordination, Requirements R2 (from Lower to Medium), R4, R5, R7, R8 (Medium to High), and R9 (Lower to Medium) in compliance with Order No. 716. NERC explains that the NERC Board of Trustees approved the proposed Reliability Standard VRF assignments on December 16, 2009. In addition, NERC explains that it filed for FERC approval a version 2 of Reliability Standard NUC-001 on August 14, 2009, and, should FERC approve version 2 of NUC-001, NERC requests that the revised VRFs proposed in the instant filing be applied to version 2 of the NUC-001 standard. To view NERC’s filing of proposed VRFs for Reliability Standard NUC-001-1, click here.

On December 17, 2009, FERC issued a series of enforcement-related materials, including: the Commission’s 2009 Report on Enforcement; an enforcement policy statement concerning disclosure of exculpatory materials; and, an order authorizing the Commission Secretary to issue Staff’s preliminary notice of violations. In addition, the Commission announced that its 2010 enforcement efforts will focus on fraud, market manipulation, and serious violations of mandatory reliability standards (e.g., violations resulting in actual harm, repeat violations, and high-risk violations).

-To read the 2009 Enforcement Report, click here.
-To read the order authorizing the Secretary to issue Staff’s preliminary notice of violations, click here.
-To read the enforcement policy statement on disclosure of exculpatory materials, click here. 
-To read the press release announcing the Commission's 2010 enforcement priorities, click here.
-To read Chairman Wellinghoff’s statement on enforcement package, click here.
-To read Commission Kelly’s statement on enforcement package, click here.
-To read Commission Moeller’s statement on enforcement package, click here.
-To read Commission Spitzer’s statement on enforcement package, click here.

On December 17, 2009, in Docket No. RD09-7-001, FERC issued an order denying the Edison Electric Institute’s (EEI) request for rehearing of the Commission’s September 30, 2009, Order approving revised Version 2 CIP Reliability Standards. The Commission, however, grants EEI’s request for clarification regarding the requirement that NERC develop a visitor control program and provides an extension of time to develop this requirement. To read the Commission’s order, click here.

On December 17, 2009, in Docket No. RM06-22-010, FERC issued an order addressing NERC’s September 15, 2009, implementation plan concerning the implementation of eight CIP-related Reliability Standards (i.e., CIP-002-1 through CIP-009-1) by generator owners and operators of nuclear power plants (CIP Implementation Plan).  In the December 17 Order, FERC determines that additional information is required to evaluate NERC’s CIP Implementation Plan.  Accordingly, FERC directs NERC to make a compliance filing providing additional information regarding the scope of systems determination, particularly the exemption process for excluding systems, structures, and components from the scope of NERC CIP Reliability Standards. To read the full text of the Commission’s order on NERC's CIP Implementation Plan, click here.

On December 17, 2009, in Docket No. RM09-8-000, FERC issued Order No. 730 approving NERC’s revision of three Interchange Scheduling and Coordination Reliability Standards. Specifically, Order No. 730 approves Reliability Standards INT-005-3, Interchange Authority Distributes Arranged Interchange; INT-006-3, Response to Interchange Authority; and, INT-008-3, Interchange Authority Distributes Status. To read the full text of FERC Order No. 730, click here.

On December 14, 2009, NERC submitted proposed Regional Reliability Standard, BAL-502-RFC-02, Planning Resource Adequacy Analysis, Assessment, and Documentation, and four associated new definitions to FERC for approval. NERC explains that the proposed Regional Reliability Standard and defined terms were approved by the NERC Board of Trustees during its August 5, 2009, meeting. NERC requests that the standard be made effective upon it being approved by FERC. To view NERC’s submittal, click here.

On December 11, 2009, FERC issued a notice that it will not, on its own motion, conduct further review of the Notices of Penalty filed by NERC on November 13, 2009. To view FERC’s notice, click here.

On December 11, 2009, FERC issued a notice extending until January 22, 2009, the time-period for consideration whether to review on its own motion the NOP concerning Turlock Irrigation District submitted on November 13, 2009, in Docket No. NP10-18-000. To view FERC’s notice, click here.

On December 11, 2009, NERC submitted a compliance filing to FERC concerning the 2010 Business Plans and Budgets of NERC, the eight Regional Entities, and the Western Interconnection Regional Advisory Board. NERC’s compliance filing was submitted in response to the Commission’s October 15, 2009 Order, which conditionally accepted NERC's 2010 Business Plan and Budget subject to NERC's submittal of certain compliance items within 60 days and periodic status reports on the development of procedures for processing technical feasibility exceptions to certain requirements of CIP Reliability Standards. To view NERC’s 2010 Business Plan and Budget compliance filing, click here.

On December 10, 2009, FERC issued a letter order approving the Violation Severity Levels (VSLs) associated with Reliability Standard TOP-004-2, Transmission Operations, that NERC had submitted to FERC on February 27, 2009, for approval. To see FERC’s letter order, click here.

On December 4, 2009, in Docket No. RM08-19, et al., FERC issued an errata to Order No. 729 in order to correct sites in the Order where the word "proposed" is used instead of the applicable final rule language.  To view FERC's errata to Order No. 729, click here.

On December 4, 2009, NERC submitted comments in response to FERC’s October 28, 2009 document entitled Possible Elements of a National Action Plan on Demand Response, Discussion Draft.  NERC explains that its comments focus on the third objective identified in the Commission’s demand response discussion draft pertaining to the development or identification of analytical tools, information, model regulatory provisions, model contracts, and other support materials for use by customers, States, utilities, and demand response providers.  NERC’s comments also focus on the fundamental concepts it believes are necessary to reliably integrate high levels of Demand Response into the bulk power system.  To read NERC’s comments, click here.

On December 2, 2009, NERC submitted proposed interpretations of Requirements R2 and R8 of Reliability Standard MOD-001-1, Available Transmission System Capability, and Requirements R5 and R6 of Reliability Standard MOD-029-001, rated System Path Methodology, to FERC for approval. NERC explains that the proposed interpretations were approved by the NERC Board of Trustees on November 5, 2009. NERC requests that the interpretations be made effective immediately upon approval by FERC. To view NERC’s filing, click here.

On December 2, 2009, NERC provided to FERC its revised 2010 Reliability Standards Development Plan in accordance with Section 310 of the NERC Rules of Procedure. To view NERC’s 2010 Reliability Standards Development Plan, click here.

On December 1, 2009, NERC and SPP submitted proposed amendments to Section 9.7.1 of the Bylaws of Southwest Power Pool (SPP) to FERC for approval. Specifically, the proposed amendments to Section 9.7.1 of the SPP Bylaws relate to SPP’s Regional Entity functions and rules. To view NERC’s and SPP’s filing and proposed amendments, click here.

On December 1, 2009, NERC and SPP submitted a joint compliance filing to FERC in compliance with the Commission September 17, 2009 Order accepting proposed amendments to SPP’s Bylaws.  Specifically, the September 17 Order directed NERC and SPP to submit a compliance filing to provide: (1) a further amendment to Section 9.3 of the SPP Bylaws to identify the specific duties of the SPP Regional Entity General Manager; and, (2) an explanation of the amended voting procedure in Section 9.7.3(e) of the SPP Bylaws including clear examples of the “negative voting” as applied to “one candidate” and to “multiple candidates” as described in Section 9.7.3(e).  To view NERC’s and SPP’s joint compliance filing, click here.

On November 30, 2009, in Docket No. RM06-16, NERC submitted an informational filing regarding the timeframe to restore power to the auxiliary power systems of the US nuclear power plants following a blackout as determined during simulations and drills of system restoration plans. NERC’s informational filing includes information for the third quarter of 2009. To view the public version of NERC’s filing, click here.

On November 24, 2009, in Docket No. RM08-19-000, et al., FERC issued Order No. 729 approving six Modeling Data, and Analysis (MOD) Reliability Standards submitted to the Commission by NERC. The approved Reliability Standards require certain users, owners, and operators of the Bulk-Power System to develop consistent methodologies for the calculation of available transfer capability or available flowgate capability. The Commission, however, directs NERC to develop certain modifications to the MOD Reliability Standards. To read the entire text of FERC’s Order No. 729, click here.

On November 24, 2009, NERC submitted a petition to FERC seeking approval for interpretations of Requirement R3 in Reliability Standard TOP-005-1.1, Operational Reliability Information, and Requirement R12 of Reliability Standard, IRO-005-2, Reliability Coordination – Current Day Operations.  NERC states that the proposed interpretations were approved by the NERC Board of Trustees on November 5, 2009.  NERC requests that the interpretations be made effective immediately upon approval by FERC.  To view NERC’s filing of proposed interpretations, click here.

On November 23, 2009, NERC submitted for Commission-approval proposed amendments to Appendix 3A, Reliability Standards Development Procedure (RSDP), to its Rules of Procedure (ROP). NERC explains that the amendments to the RSDP add processes for developing standards in response to national security emergency situations and change the way in which VRFs and VSLs are developed and approved. The proposed ROP amendments were approved by the NERC Board of Trustees on November 5, 2009. To view NERC’s filing of proposed amendments to its ROP, click here.

On November 20, 2009, in FERC Docket Nos. RR09-9-000, RR07-14-004, and RR08-6-004, NERC submitted an informational filing regarding NERC’s “Situational Awareness for NERC, FERC, and Regions” (SAFNR) project. NERC’s informational filing is submitted in accordance with the Commission’s request in paragraph 64 of the October 15, 2009 Order on 2010 Business Plans and Budgets for additional information on the SAFNR project. To view NERC’s SAFNR project informational filing, click here.

On November 19, 2009, the NERC Board of Trustees appointed Mr. Gerry Cauley as the next President and CEO of NERC.  Mr. Cauley, the current President and CEO of SERC Reliability Corporation, will replace Rick Sergel as President and CEO on January 1, 2010.

To view the NERC press release, click here.

On November 17, 2009, in Docket No. RM06-16-000, NERC submitted an interpretation of Requirement R1 in Reliability Standard PRC-005-1, Transmission and Generation Protection System Maintenance and Testing, to FERC for approval.  NERC explains in its petition that this interpretation was approved by the NERC Board of Trustees on November 5, 2009, and that upon Commission approval, the standard that includes this interpretation will be referred to as PRC-005-1a.  NERC requests that this interpretation be made effective immediately upon approval by FERC.  To view NERC’s petition for approval, click here.

On November 17, 2009, in Docket No. RM06-16-000, NERC submitted an interpretation of Requirement R2 in Reliability Standard CIP-007-2, Cyber-Security – System Security Management, to FERC for approval.  NERC explains in its petition that this interpretation was approved by the NERC Board of Trustees on November 5, 2009, and the standard that includes this interpretation had been designated as CIP-007-2a.  NERC requests that this interpretation be made effective immediately upon approval by FERC.  To view NERC’s petition for approval, click here.

On November 17, 2009, in Docket No. RM06-16-000, NERC submitted an interpretation of Requirement R1.3.10 in Reliability Standard TPL-002-0, System Performance Following Loss of Single Bulk Electric System Element (Category B), to FERC for approval.  NERC explains in its petition that this interpretation was approved by the NERC Board of Trustees on November 5, 2009, and that upon Commission approval, the standard that includes this interpretation will be referred to as TPL-002-0b.  NERC requests that this interpretation be made effective immediately upon approval by FERC.  To view NERC’s petition for approval, click here.

On November 16, 2009, in FERC Docket No. NP09-26-000, the United States Army Corps. of Engineers (“USACE”) requested rehearing of FERC’s October 15, 2009 Order, in which the Commission found that, pursuant to FPA Section 215, federal entities that use, own, or operate the Bulk Power System must comply with mandatory Reliability Standards.  The Commission’s October 15 Order was issued in response to NERC’s June 24, 2009, Notice of Penalty (NOP) and Request for Decision on Jurisdiction Issue concerning USACE– Tulsa.

 

In its Request for Rehearing, the USACE argues: (1) that the Commission’s October 15 Order is procedurally defective because FERC’s Rules of Procedure do not provide for declaratory judgment in an NOP proceeding; (2) the US Department of Justice, Office of Legal Counsel is the proper forum to decide disagreement between federal agencies; and (3) Neither USACE nor Congress has explicitly or tacitly waived USACE’s sovereign immunity.  To read the entire text of USACE’s Request for Rehearing, click here.

On November 16, 2009, NERC issued a Final Report from the Ad Hoc Group for Generator Requirements at the Transmission Interface.  By way of background, in March 2009, NERC formed an ad hoc group of industry representatives to evaluate existing reliability standard requirements and develop recommendations to address possible gaps in reliability for generator interconnection facilities at the transmission interface.   In general, the ad hoc group was formed in response to the growing concern among the industry that some Generator Owners and Operators were being incorrectly registered as Transmission Owners and/or Transmission Operators. 

The final report concludes, among other things, that a Generator Owner that owns or operates a Generator Interconnection Facility that is a sole-use facility should not be registered as a Transmission Owner or Transmission Operator solely by virtue of its ownership of the Generator Interconnection Facility.  In addition, the report concludes that, after reviewing all Transmission Owner requirements not currently applicable to Generator Owners, only reliability standard FAC-003-1 should be expanded to also apply to Generator Owners.  The group concluded that the test for determining whether FAC-003-1 should apply to a Generator Owner should be whether they own a Generator Interconnection Facility that exceeds two spans (generally, more than one-half mile) from the generator property line.  The basis for using this test, the report explains, is that two spans is generally the distance within the generator operator's line-of-sight and can be monitored for vegetation issues on a routine basis.

To view the final report, click here.

On November 16, 2009, NERC submitted 17 Notices of Penalty (NOP) to FERC addressing violations of various reliability standards.

To see the Poudre Valley NOP for PRC-5 violations, click here.

To see the Lincoln County NOP for a CIP-1 violation, click here.

To see the Mirant Delta NOP for a VAR-2 violation, click here.

To see the Mirant Portero NOP for a VAR-2 violation, click here.

To see the Cedar Bay NOP for CIP-1 violations, click here.

To see the Westmoreland NOP for CIP-1 & PRC-5 violations, click here.

To see the Union Power NOP for CIP-1 & PRC-5 violations, click here.

To see the East Kentucky NOP for BAL-1 & BAL-5 violations, click here.

To see the Turlock Irrigation NOP for FAC-3 and other violations, click here.

To see the AES Westover NOP for CIP-1 violations, click here.

To see the AES Somerset NOP for CIP-1 violations, click here.

To see the AES Greenridge NOP for CIP-1 violations, click here.

To see the AES Cayuga NOP for CIP-1 violations, click here.

To see the AES Warrior NOP for FAC-8, FAC-9, & PRC-5 violations, click here.

To see the AES Red Oak NOP for FAC-8, FAC-9, & PRC-5 violations, click here.

To see the AES Beaver NOP for FAC-8, FAC-9, & PRC-5 violations, click here.

To see the AES Ironwood NOP for FAC-8, FAC-9, & PRC-5 violations, click here.

On November 13, 2009, FERC issued an order accepting the Omnibus NOP Filing that NERC submitted on October 14, 2009 in Docket No. NP10-2-000 concerning 564 NOPs.  FERC explains that the violations included in the Omnibus NOP Filing and addressed by the Order had "minimal to moderate impact on Bulk-Power System reliability but did not pose a serious or substantial risk to the Bulk-Power system."  Of the 564 NOPs includded in the Omnibus NOP Filing,  541 included no monetary penalty and the remaining 23 had penalties ranging from $1,000 to $15,000 each.  458 of the 564 NOPs concerned WECC registered entities, though other Regional Entities had NOPs in the filing (FRCC: 63, MRO: 6, RFC: 23, SERC: 3, SPP: 11).  The largest number of NOPs involved violations of Requirements R1 through R4 of Standard CIP-001-1, requiring procedures for sabotage reporting.  FERC states that the Omnibus NOP Filing should "greatly reduce[]" the violations backlog at NERC and the Regional Entities and expresses its support for a second batch NOP filings (as anticipated by NERC) because it will “permit NERC to concentrate ... on more important violations.” 

 

To view FERC’s Order on Omnibus NOP Filing, click here.

To view FERC’s press release concerning the Order on Omnibus NOP Filing, click here.

To view FERC's November 16 errata to the November 13 Order on Omnibus NOP Filing, click here.