FERC Approves NERC’s Proposed Interpretation of VAR-002-1.1b
- Filter By Electric Reliability Law Blog
In its order, FERC agreed with NERC that VAR-002 does not require generators to add or install AVR, and that other reliability standards provide incentives to do so. FERC did note its concern that a generator could take an overly broad view of NERC’s interpretation and apply it to a generator that already has AVR capability. FERC stated that this would be a misapplication of NERC’s interpretation, and that the interpretation is not intended to facilitate the removal of installed AVR for economic reasons or a failure to timely return a generator to operable AVR mode. However, since NERC’s interpretation is consistent with VAR-002, FERC concluded that any adverse behavior would be a result of a potential gap in the Standard and not the interpretation. To read FERC’s order approving NERC’s interpretation of VAR-002-1.1b, click here.