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NERC Submits Five NOPs to FERC


July 10, 2009

On July 10, 2009, NERC submitted the following Notices of Penalty (NOP) to FERC:

1)  NOP regarding Lincoln Electric System (LES) concerning LES’s alleged violations of Reliability Standards COM-002-2, Requirement R2, and FAC-003-1, Requirement R2.  The NOP states that MRO and LES have entered into a settlement agreement in which LES has agreed to the proposed penalty of $50,000 to be assessed to LES, in addition to other remedies that include mitigation actions and actions to prevent recurrence under the terms and conditions of the settlement agreement.  To view the LES NOP, submitted in Docket No. NP09-31-000, click here.

2)  NOP regarding BTU QSE Services, Inc. (BTU) concerning BTU’s alleged violations of Reliability Standard CIP-001-1, Requirements R1 and R3.  The NOP states that Texas RE and BTU have entered into a settlement agreement in which BTU has agreed to the proposed penalty of $5,000 to be assessed to BTU, in addition to other remedies that include mitigation actions and actions to prevent recurrence under the terms and conditions of the settlement agreement.  To view the BTU NOP, submitted in Docket No. NP09-30-000, click here.

3)  NOP regarding Dairyland Power Cooperative (DPC) concerning DPC’s violation of Reliability Standard PRC-005-1, Requirement R1 for failure to produce a document that provided a summary of the protective system maintenance and testing procedures, including testing intervals and their basis and of Reliability Standard PRC-008-0, Requirement R1 for failure to produce a document that provided an Under Frequency Load Shedding equipment maintenance and testing program, including equipment identification and schedule maintenance and testing.  DPC does not dispute the violations and the proposed $10,000 penalty.  To view the DPC NOP, submitted in Docket No. NP09-29-000, click here.

4)  NOP regarding Louisiana Generating LLC (LaGen) concerning LaGen’s alleged violations Reliability Standard VAR-002-1, Requirements R1 and R3 (specifically, R3.1).  The NOP explains that LaGen and SERC have entered into a settlement agreement that resolves all outstanding issues associated with these violations.  Under such agreement, LaGen neither admits nor denies the alleged violations but has agreed to the proposed penalty of $10,000 to be assessed to LaGen.  To view the LaGen NOP, submitted in Docket No. NP09-28-000, click here.

5)  NOP regarding Eastman Cogeneration Limited Partnership (Eastman) concerning Eastman's self-certified violation of Reliability Standard CIP-001-1, Requirements R1 and R4 for failure to have documented procedures for recognizing sabotage events and making operating personnel aware of them.  In addition, Eastman had not established contact with the Federal Bureau of Investigation (FBI) nor had it developed FBI reporting procedures.  Eastman does not dispute the violations or the proposed zero dollar penalty amount to be assessed to it.  To view the Eastman NOP, submitted in Docket No. NP09-32-000, click here.