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FERC Issues Four Reliability Orders to Strengthen Grid

On November 20, 2008, FERC issued four orders intended to further strengthen the mandatory reliability rules governing the operators of the nation’s transmission grid.  The first order is a Notice of Proposed Rulemaking (NOPR), in which FERC proposes to approve NERC’s proposed interpretation of certain specific requirements of Reliability Standard BAL-003-0, Frequency Response and Bias, and remand NERC’s proposed interpretation of VAR-00101, Voltage and Reactive Control, for reconsideration.  To read FERC’s NOPR, click here.

The second order grants NERC a nine-month extension to submit an analysis of violation severity levels (VSL) set forth in the Commission’s June 19, 2008, VSL order, and also allows NERC to use its Reliability Standards development process to develop VSLs, as long as that process produces timely results.  To read this order, click here.

The third order is a NOPR, in which FERC proposes to make mandatory for balancing authorities within the Western Interconnection-wide WECC region an automatic time error correction procedure that will help maintain interconnection frequency and thus reduce accumulated inadvertent interchange energy resulting from differences between scheduled and actual power flows in the Western Interconnection.  To read FERC’s NOPR, click here.

In the final order, the Commission remands to NERC the appeal by Constellation Energy Commodities Group Inc. of its registration as a generator operator of an electric generating facility in Texas.  Specifically, FERC directs NERC to analyze which specific reliability standards will apply to Constellation and to provide further clarification regarding the registration of qualified scheduling entities as generator operators within the Electric Reliability Council of Texas.  To read the Commission’s order, click here.