FERC Approves NERC’s Risk-Based Registry Initiative

On March 19, 2015, in Docket No. RR15-4, FERC issued an order approving in part NERC’s Risk-Based Registration (RBR) initiative. The initiative, which NERC submitted to the Commission for approval on December 11, 2014, amends NERC’s Rules of Procedure to ensure that NERC-registered entities are subject to the correct sets of Reliability Standards and adopts a risk-informed approach to registration. In its order, the Commission accepted NERC’s proposal, but directed NERC to: (1) provide more information on the removal of Load-Serving Entities from the registry, (2) revise its Rules of Procedure to include Reliability Standard PRC-005 as applicable to underfrequency load shedding-only distribution providers, (3) revise its Rule of Procedure to require review panels to consider aggregate system-wide risks, and (4) submit a one-year informational filing discussing the implementation of the initiative.

To view FERC’s order, click here.