[Federal Register: April 28, 2008 (Volume 73, Number 82)]
[Proposed Rules]
[Page 22849-22856]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr28ap08-20]
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DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
18 CFR Part 38
[Docket No. RM05-5-005]
Standards for Business Practices and Communication Protocols for
Public Utilities
Issued April 21, 2008.
AGENCY: Federal Energy Regulatory Commission, DOE.
ACTION: Notice of proposed rulemaking.
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SUMMARY: The Federal Energy Regulatory Commission (Commission) proposes
to incorporate by reference in its regulations the latest version
(Version 001) of certain standards adopted by the Wholesale Electric
Quadrant (WEQ) of the North American Energy Standards Board (NAESB).
NAESB's standards revise its Open Access Same-Time Information Systems
(OASIS) business practice standards and four business practice
standards relating to reliability issues, add new standards on
transmission loading relief for the Eastern Interconnection and public
key infrastructure, and add a new OASIS implementation guide.
DATES: Comments on the proposed rule are due May 28, 2008.
ADDRESSES: You may submit comments identified by Docket No. RM05-5-005,
by one of the following methods:
Agency Web site: http://ferc.gov. Follow the instructions
for submitting comments via the eFiling link found in the Comment
Procedures Section of the preamble.
Mail: Commenters unable to file comments electronically
must mail or hand deliver an original and 14 copies of their comments
to the Federal Energy Regulatory Commission, Secretary of the
Commission, 888 First Street, NE., Washington, DC 20426. Please refer
to the Comment Procedures Section of the preamble for additional
information on how to file paper comments.
FOR FURTHER INFORMATION CONTACT:
Gary D. Cohen (legal issues), Office of the General Counsel, Federal
Energy Regulatory Commission, 888 First Street, NE., Washington, DC
20426, (202) 502-8321.
Kay Morice (technical issues), Office of Energy Market Regulation,
Federal Energy Regulatory Commission, 888 First Street, NE.,
Washington, DC 20426, (202) 502-6507.
Ryan M. Irwin (technical issues), Office of Energy Market Regulation,
Federal Energy Regulatory Commission, 888 First Street, NE.,
Washington, DC 20426, (202) 502-6454.
SUPPLEMENTARY INFORMATION:
1. The Federal Energy Regulatory Commission (Commission) proposes
to amend its regulations under the Federal Power Act \1\ to incorporate
by reference the latest version (Version 001) of certain business
practice standards concerning the Open Access Same-Time Information
Systems (OASIS) and four business practice standards relating to
reliability issues adopted by the Wholesale Electric Quadrant (WEQ) of
the North American Energy Standards Board (NAESB). These revised
standards update earlier versions of these standards that the
Commission previously incorporated by reference into its regulations at
18 CFR 38.2 in Order Nos. 676 and 676-B.\2\ In addition, we propose to
incorporate by reference NAESB's new standards on transmission loading
relief for the Eastern Interconnection and public key infrastructure,
and add a new OASIS implementation guide.
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\1\ 16 U.S.C. 791a, et seq.
\2\ Standards for Business Practices and Communication Protocols
for Public Utilities, Order No. 676, 71 FR 26199 (May 4, 2006), FERC
Stats. & Regs., Regulations Preambles ] 31,216 (Apr. 25, 2006),
reh'g denied, Order No. 676-A, 116 FERC ] 61,255 (2006), Order No.
676-B, 72 FR 21095 (Apr. 30, 2007), FERC Stats. & Regs. ] 31,246
(Apr. 19, 2007).
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I. Background
NAESB
2. NAESB is a non-profit standards development organization
established in January 2002 that serves as an industry forum for the
development and promotion of business practice standards that promote a
seamless marketplace for wholesale and retail natural gas and
electricity.\3\ Since 1995, NAESB and its predecessor, the Gas Industry
Standards Board, have been accredited members of the American National
Standards Institute (ANSI), complying with ANSI's requirements that its
standards reflect a consensus of the affected industries.\4\
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\3\ See Standards for Business Practices and Communication
Protocols for Public Utilities, Notice of Proposed Rulemaking, 72 FR
8318 (Feb. 27, 2007), FERC Stats. & Regs. ] 32,612 at P 3 (Feb. 20,
2007).
\4\ Id.
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3. NAESB's standards include business practices that streamline the
[[Page 22850]]
transactional processes of the natural gas and electric industries, as
well as communication protocols and related standards designed to
improve the efficiency of communication within each industry. NAESB
supports all four quadrants of the gas and electric industries--
wholesale gas, wholesale electric, retail gas, and retail electric. All
participants in the gas and electric industries are eligible to join
NAESB and participate in standards development.\5\
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\5\ Id. at P 4.
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4. NAESB's procedures are designed to ensure that all industry
members can have input into the development of a standard, whether or
not they are members of NAESB, and each standard NAESB adopts is
supported by a consensus of the relevant industry segments.\6\
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\6\ Id. at P 5.
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Order Nos. 676 and 676-B
5. In Order No. 676, with certain specified exceptions, the
Commission incorporated by reference into its regulations at 18 CFR
38.2 the Version 000 OASIS Business Practice Standards adopted by NAESB
in January 2005. In Order No. 676, the Commission also incorporated by
reference into its regulations at 18 CFR 38.2 NAESB's OASIS Standards &
Communication Protocols, OASIS Data Dictionary and four business
practice standards related to reliability issues. Specifically, the
business practice standards related to reliability issues are:
Coordinate Interchange, WEQ-004, Version 000; Area Control Error (ACE)
Equation Special Cases, WEQ-005, Version 000; Manual Time Error
Correction, WEQ-006, Version 000; and Inadvertent Interchange Payback,
WEQ-007, Version 000.
6. In Order No. 676, the Commission not only adopted business
practice standards and communication protocols for the wholesale
electric industry, it also established a formal ongoing process for
reviewing and upgrading the Commission's OASIS standards and other
wholesale electric industry business practice standards.\7\
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\7\ In developing the original OASIS standards and
communications protocols adopted in Order No. 889, and revised in
subsequent orders, the Commission enlisted the assistance of two ad
hoc industry working groups (the ``How'' Group and the ``What''
Group) that developed proposals for OASIS standards and
communications protocols that the Commission reviewed, modified
where appropriate, and ultimately adopted as Commission regulations
and requirements. See Open Access Same-Time Information System
(OASIS) and Standards of Conduct, Order No. 889, 61 FR 21737 (May
10, 1996), FERC Stats. & Regs., Regulations Preambles January 1991-
June 1996 ] 31,035 at 31,588-89 & n. 13 (Apr. 24, 1996). In Order
No. 676, this informal process was replaced by the more formal NAESB
process, where NAESB, as an ANSI-approved standards development
organization, adopted standards and requirements that were then
reported to the Commission to consider and, following public
comment, incorporate by reference into its regulations, where
appropriate.
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7. In Order No. 676-B, the Commission incorporated by reference
into its regulations at 18 CFR 38.2 the revised Coordinate Interchange
Standards adopted by NAESB in June 2005.
NAESB's Version 001 Report
8. On December 26, 2007, NAESB filed a report informing the
Commission that the NAESB WEQ had ratified WEQ Version 001 of its
standards. These standards include several modifications to the
existing business practice standards that the Commission incorporated
by reference in Order Nos. 676 and 676-B, as well as creating new
standards to provide additional functionality for OASIS transactions,
transmission loading relief for the Eastern Interconnection, and public
key infrastructure. Some of the standards subsequently were corrected
by the WEQ and these minor corrections were applied to the Version 001
standards on November 16, 2007.\8\ NAESB's WEQ Version 001 includes the
following standards:
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\8\ The Version 001 standards do not include modifications of
existing standards or new standards to support Order No. 890, the
Commission's Final Rule amending the Commission's pro forma Open
Access Transmission Tariff, Preventing Undue Discrimination and
Preference in Transmission Service, 72 FR 12266 (Mar. 15, 2007),
FERC Stats. & Regs. ] 31,241 (Feb. 16, 2007), order on reh'g, Order
No. 890-A, 73 FR 2984 (Jan. 16, 2008), FERC Stats. & Regs. ] 31,261
(Dec. 28, 2007), reh'g pending, with the exception of modifications
to resales and transfers to address the Commission's rules for
resales described in Order No. 890 in P 815 and footnote 496.
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Business Practices for Open Access Same-Time Information
Systems (OASIS), Version 1.4 (WEQ-001); \9\
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\9\ The WEQ Version 001 package of standards includes Version
1.4 of the OASIS Standards. The reference to Version 1.4 is based on
the fact that this is the fourth set of revisions to the Version 1.0
OASIS Standards that the Commission adopted in Order No. 889. The
Version 1.4 reference appears in Standards WEQ-001, WEQ-002, WEQ-
003, and WEQ-013.
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Business Practices for Open Access Same-Time Information
Systems (OASIS) Standards & Communications Protocols, Version 1.4 (WEQ-
002);
OASIS Data Dictionary, Version 1.4 (WEQ-003);
Coordinate Interchange (WEQ-004); \10\
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\10\ In a Notice of Proposed Rulemaking (NOPR), being issued
contemporaneously by the Commission in Docket No. RM08-7-000, the
Commission proposes, pursuant to section 215 of the Federal Power
Act, to approve six modified Reliability Standards submitted to the
Commission for approval by the North American Electric Reliability
Corporation (NERC). In the proceeding in Docket No. RM08-7-000, the
Commission is addressing modified Reliability Standards, while in
the instant proceeding, in Docket No. RM05-5-005, the Commission is
addressing, among other matters, the business practice standards
related to these Reliability Standards. Five of the modified
Reliability Standards being addressed in the proceeding in Docket
No. RM08-7-000 pertain to interchange scheduling and coordination
and one pertains to transmission loading relief procedures. In
addition, the Commission proposes, in the NOPR being issued in RM08-
7-000, to approve NERC's proposed interpretation of five specific
Requirements of Commission-approved Reliability Standards.
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Area Control Error (ACE) Equation Special Cases (WEQ-005);
Manual Time Error Correction (WEQ-006);
Inadvertent Interchange Payback (WEQ-007);
Transmission Loading Relief--Eastern Interconnection (WEQ-
008); \11\
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\11\ Id.
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Standards of Conduct for Electric Transmission Providers
(WEQ-009);
Contracts Related Standards (WEQ-010);
Gas/Electric Coordination (WEQ-011); \12\
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\12\ These standards are identical to the standards the
Commission incorporated by reference into its regulations at 18 CFR
38.2 in Order No. 698. Standards for Business Practices for
Interstate Natural Gas Pipelines; Standards for Business Practices
for Public Utilities, Order No. 698, 72 FR 38757 (July 16, 2007),
FERC Stats. & Regs., Regulations Preambles 2006-2007 ] 31,251 (June
25, 2007), order on clarification and reh'g, Order No. 698-A, 121
FERC ] 61,264 (2007).
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Public Key Infrastructure (PKI) (WEQ-012); and
Business Practices for Open Access Same-Time Information
Systems (OASIS) Implementation Guide, Version 1.4 (WEQ-013).
II. Discussion
9. We propose generally to incorporate by reference the NAESB WEQ
standards.\13\ While many of the standards simply revise or update
existing standards, some of the standards address new business
practices. For example, NAESB adopted new business practice standards
for Resales and Transfers to standardize
[[Page 22851]]
secondary transmission service on OASIS. These standards also
standardize how Resales and Transfers are conducted off OASIS. NAESB
also adopted public key infrastructure standards to create greater
security for business transactions taking place over the Internet. In
addition, NAESB has revised and added standards establishing business
practices related to the NERC reliability standards.\14\ In particular,
NAESB has adopted standards governing transmission loading relief (TLR)
that specify business practices for cutting transmission services in
the event of a TLR, consistent with the NERC reliability standards.
These standards are described more fully in the discussion below.
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\13\ We do not propose to incorporate by reference in the
Commission's regulations the following standards: Standards of
Conduct for Electric Transmission Providers (WEQ-009) and Contracts
Related Standards (WEQ-010). We do not propose to incorporate these
standards into the Commission's regulations because WEQ-009 contains
no substantive standards and merely serves as a placeholder for
future standards while WEQ-010 contains an optional NAESB contract
regarding funds transfers. The Commission does not require utilities
to use such contracts and thus, the Commission does not propose to
incorporate this standard by reference. In addition, as discussed
more specifically in note 22, infra, we do not propose to
incorporate by reference certain portions of WEQ-001.
\14\ See note 10, supra.
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10. NAESB approved the standards under its consensus
procedures.\15\ Adoption of consensus standards is appropriate because
the consensus process helps ensure the reasonableness of the standards
by requiring that the standards draw support from a broad spectrum of
all segments of the industry. Moreover, since the industry itself has
to conduct business under these standards, the Commission's regulations
should reflect those standards that have the widest possible support.
In Sec. 12(d) of the National Technology Transfer and Advancement Act
of 1995 (NTT&AA), Congress affirmatively requires federal agencies to
use technical standards developed by voluntary consensus standards
organizations, like NAESB, as a means to carry out policy objectives or
activities.\16\
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\15\ The WEQ's procedures ensure that all industry members can
have input into the development of a business practice standard,
whether or not they are members of NAESB, and each standard it
adopts is supported by a consensus of the five industry segments:
transmission, generation, marketer/brokers, distribution/load
serving entities, and end users. Under the WEQ process, for a
standard to be approved, it must receive a super-majority vote of 67
percent of the members of the WEQ's Executive Committee with support
from at least 40 percent of each of the five industry segments. For
final approval, 67 percent of the WEQ's general membership must
ratify the standards.
\16\ Public Law No. 104-113, 12(d), 110 Stat. 775 (1996), 15
U.S.C. 272 note (1997).
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11. The Commission is also proposing, consistent with our
regulation at 18 CFR 35.28(c)(vi), to require each electric utility to
revise its open access transmission tariff (OATT) to include the
Version 001 WEQ standards we are proposing to incorporate by reference
herein. For standards that do not require implementing tariff
provisions, the Commission is proposing to permit the utility to
incorporate the WEQ standard by reference in its OATT. We are not,
however, requiring a separate tariff filing to accomplish this change.
Consistent with our prior practice, we are proposing to give public
utilities the option of including these changes as part of an unrelated
tariff filing.\17\ However, consistent with our prior practice, we
propose that, once the Commission incorporates these standards by
reference into its regulations, public utilities must abide by these
standards even before they have updated their tariffs to incorporate
these changes.
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\17\ See Order No. 676 at P 100.
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A. OASIS Standards
12. In Standards WEQ-001, WEQ-002, and WEQ-003, NAESB revises the
OASIS Standards currently incorporated by reference by the Commission.
More specifically, in Standard WEQ-001, NAESB adopts new standards
addressing Resale and Transfer transactions \18\ that are consistent
with the Commission's policies articulated in Order No. 890.\19\
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\18\ NAESB defines a ``Resale'' as ``[t]he request to convey
scheduling rights associated with a reservation for Point-to-Point
Transmission Service from a Reseller to an Assignee.'' Standard WEQ-
001.0.19. NAESB defines ``Transfer'' as a ``[r]equest to convey all
rights and obligations associated with a reservation for Point-to-
Point Transmission Service from a Reseller to an Assignee.''
Standard WEQ-001-0.20.
\19\ See Order No. 890, P 815 and n.496.
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13. In Order No. 890, the Commission adopted reforms to its
underlying rules governing capacity reassignments. Specifically, the
Commission required that all sales or assignments of capacity be
conducted through or otherwise posted on the transmission provider's
OASIS on or before the date the reassigned service commences.\20\ The
Commission directed transmission providers (working through NAESB) to
develop the appropriate OASIS functionality to allow such postings and
stated that transmission providers need not implement this new OASIS
functionality and any related business practices until NAESB develops
appropriate standards. These business practices and functionality have
now been adopted by NAESB in Standard WEQ-001.
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\20\ Id.
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14. The WEQ's Standard WEQ-002 creates a new business practice
standard requiring a Standards of Conduct link on the OASIS in response
to the Commission's NOPR that preceded Order No. 676.\21\ In addition,
WEQ Standard WEQ-002 divides the OASIS Standards and Communications
Protocols Document (S&CP Document) into two documents, thus separating
the technical requirements (which remain in WEQ-002) from the business
requirements (now found in WEQ-013). The WEQ's Standard WEQ-003 revises
the OASIS Data Dictionary to include minor clarifications or
corrections to the format, appearance, or descriptions of standards in
standards documentation, as well as corrections and minor revisions
that did not materially change a standard.
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\21\ The types of information accessible from this link include
Emergency Circumstances Deviations, Marketing and Energy Affiliate
List, Shared Facilities, Organizational Charts and Job Descriptions,
Common Employees, Potential Merger Partners, Transfers, Information
Disclosure, Voluntary Consent to Share Non-Affiliated Customer
Information, Discretionary Actions Under Tariff, Discounts, Chief
Compliance Officer, and Written Procedures for Implementation.
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15. The WEQ's Standard WEQ-013 contains a new OASIS Implementation
Guide. While this Standard condenses and incorporates the various OASIS
S&CP Document business practices and requirements that formerly were
found in WEQ-002 into a separate Implementation Guide, it makes no
significant substantive changes to the prior standard.
16. In this NOPR, we propose to incorporate by reference all four
of these OASIS-related business practice standards, as revised (i.e.,
Standards WEQ-001, WEQ-002, WEQ-003, and WEQ-013).\22\
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\22\ As we stated in Order No. 676, we are not proposing to
incorporate by reference WEQ standards 001-0.1, 001-0.9 through 001-
0.13, 001-1.0 through 001-1.8, and 001-9.7, because these standards
merely restate Commission regulations and because standard 001-9.7
is not consistent with the Commission's policy on redirects.
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B. Public Key Infrastructure
17. In Version 001, NAESB has adopted new standards for secure
communications over the public internet, Public Key Infrastructure
(PKI) \23\ (WEQ-012). These standards describe the requirements that
Certification Authorities (CAs) \24\ must meet to claim the electronic
certificate that a CA issues meets the NAESB WEQ
[[Page 22852]]
PKI Standards and to conform to the NAESB Certification Program and,
thus, be considered an Authorized Certification Authority (Authorized
CA).\25\ Providing security for transactions across the public internet
is an important part of supporting energy markets and system
reliability functions. Therefore, we propose to update our regulations
at 18 CFR 38.2 to incorporate by reference Standard WEQ-012.
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\23\ This PKI mechanism occurs through the use of extremely long
prime numbers, called keys. Two keys are involved--a private key,
which only the user has access to, and a public key, which can be
accessed by anyone. The two keys work together so a message
scrambled with the private key can only be unscrambled with the
public key and vice versa. The more digits in these keys, the more
secure the process. Similar to proving an identity through a
handwritten signature offline, a digital signature is used to prove
an identity online.
\24\ A Certification Authority is a third-party entity that
issues digital certificates used to create digital signatures and
public-private key pairs. A Certification Authority plays a critical
role in data security and electronic commerce since it is entrusted
to guarantee that the two parties exchanging information are really
who they claim to be.
\25\ On achieving NAESB certification, NAESB will provide NERC
with the names of Authorized CAs. The Authorized CA may immediately
display the NAESB certification mark and will be authorized to claim
compliance with NAESB WEQ PKI Standards. All industry applications
(e.g., OASIS) secured under these PKI Standards must permit access
to any legitimate user that presents a valid electronic certificate
issued by an Authorized CA.
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C. Business Standards to Coordinate With Reliability Standards
18. The WEQ has also adopted revisions to business practice
standards addressing the business ramifications of certain reliability-
related issues.
1. Coordinate Interchange
19. In Version 001 standards for Coordinate Interchange (WEQ-004),
NAESB has made additional modifications to the Coordinate Interchange
standards that the Commission incorporated by reference into its
regulations in Order No. 676-B.\26\ These modifications were made to
account for a regional difference in the Western Electricity
Coordinating Council regarding acceptable backup methods for creating a
Request for Interchange, to provide for Purchasing-Selling Entity
optional approval rights, to explain the terms ``correctable'' and
``required,'' to clarify that tag data elements may be ``not
correctable'' or ``not required,'' and to make the element of ``Energy
Product Type'' required. These modifications were made as a result of a
joint effort of NERC and NAESB via the Joint Interchange Scheduling
Working Group which is a committee of both NERC and NAESB participants.
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\26\ The revised Coordinate Interchange standards were designed
to facilitate the transfer of electric energy between entities
responsible for balancing load and generation. Also, the revised
Coordinate Interchange standards were intended to be compatible with
the NERC Interchange Scheduling and Coordination Reliability
Standards that the Commission approved in Order No. 693, Mandatory
Reliability Standards for the Bulk-Power System, 72 FR 16416 (Apr.
4, 2007), FERC Stats. & Regs. ] 31,242, at P 961-65 (2007), order on
reh'g, Order No. 693-A, 120 FERC ] 61,053 (2007).
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20. We propose to update our regulations at 18 CFR 38.2 to
incorporate by reference the Coordinate Interchange Standard WEQ-004,
Version 001. However, we seek comment on two aspects of these
standards. Standard 004-3.1 states that ``[f]or Interchange where the
sink is in the Western Interconnection for same day transactions, the
last Purchasing-Selling Entity before the DC Tie in the Eastern
Interconnection shall be responsible for submitting the e-Tag.'' This
standard identifies only the last Purchasing-Selling Entity before the
DC Tie in the Eastern Interconnection as being responsible for
submitting the e-Tag Interchange when the sink is in the Western
Interconnection. However, we request comment on whether, based on the
NERC standards, this standard also should address whether a Generator
Owner or Load Serving Entity may schedule directly to the DC Tie owner.
21. Additionally, Standard 004-6.1.2 states that ``[i]f the PSE,
LSE, and GPE do not respond to a request from the Interchange
Authority, the Interchange is considered passively approved.'' While
confirmation by silence is a common business practice eliminating
unnecessary communications, we request comment on whether this is
appropriate for a business practice intended to complement a
reliability standard.
2. Area Control Error (ACE) Equation Special Cases
22. In the Version 001 standards for Area Control Error (ACE)
Equation Special Cases (WEQ-005), NAESB has made only minor
modifications to the standards to number the definitions and make other
minor edits. We propose to update our regulations at 18 CFR 38.2 to
incorporate by reference this revised standard in lieu of the current
version of this standard.
3. Manual Time Error Correction
23. In the Version 001 standards for Manual Time Error Correction
(WEQ-006), NAESB has made changes to remove references to the Electric
Reliability Council of Texas (ERCOT), to make minor corrections to the
standards for the Western Interconnection, and to make other minor
modifications including numbering the definitions. We propose to update
our regulations at 18 CFR 38.2 to incorporate by reference this revised
standard in lieu of the current version of this standard.
4. Inadvertent Interchange Payback
24. In the Version 001 standards for Inadvertent Interchange
Payback (WEQ-007), NAESB has made changes to remove references to ERCOT
and make other minor modifications including numbering the definitions.
We propose to update our regulations at 18 CFR 38.2 to incorporate by
reference this revised standard in lieu of the current version of this
standard.
5. Transmission Loading Relief
25. In Version 001, NAESB has adopted new standards for
Transmission Loading Relief--Eastern Interconnection (WEQ-008). NAESB
states that these business practice standards are intended to be
complementary to the NERC reliability standards INT-004-1--Reliability
Coordination--Operations Planning and INT-006-4--Reliability
Coordination--Transmission Loading Relief.\27\ NAESB reports that its
Transmission Loading Relief (TLR) business practice standards are the
result of a multi-year joint effort of the NERC Transmission Loading
Relief Drafting Team and the NAESB WEQ Business Practices Subcommittee
to split the existing NERC Transmission Loading Relief reliability
standards into reliability and business practice components. In
addition, NAESB states that the NAESB WEQ TLR standards have been
further modified to allow for regional differences for market
flows.\28\ The NAESB WEQ TLR standards include general requirements
regarding the use of Interconnection-wide TLR procedures; \29\
Interchange Transaction \30\ priorities for use with Interconnection-
wide TLR procedures; the Eastern Interconnection procedure for physical
curtailment of Interchange Transactions; appendices with various
[[Page 22853]]
examples; and an appendix specifying regional differences for PJM
Interconnection, L.L.C./Midwest Independent System Operator, Inc. and
for Southwest Power Pool.
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\27\ NERC filed a petition seeking approval of its related
proposed reliability standards, IRO-006-4--Reliability
Coordination--Transmission Loading Relief, with the Commission in
Docket No. RM08-7-000. We believe that NAESB's reference to INT-006-
4 should be a reference to IRO-006-4. We also believe that the
proper subject of INT-004-1 is ``Dynamic Interchange Transaction
Modifications,'' rather than ``Reliability Coordination--Operations
Planning.''
\28\ Market flows are the calculated energy flows on a specified
Flowgate as a result of the dispatch of generating resources within
a Market-Based Operating Entity's market. NAESB defines ``Flowgate''
as a ``designated point of the transmission system through which the
Interchange Distribution Calculator calculates the power flow from
Interchange Transactions.'' The treatment of the market flows of
regional transmission organizations compared with the treatment of
generation-to-load impacts of non-market entities as they relate to
the use of TLRs has been addressed by the Commission in a number of
cases, including Order No. 693, FERC Stats. & Regs. ] 31,242 at P
987, Alliance Companies, 100 FERC ] 61,137 (2002) and Midwest
Independent Transmission System Operator, Inc. and PJM
Interconnection, L.L.C., 106 FERC ] 61,251 (2004).
\29\ NAESB defines ``Transmission Loading Relief'' (TLR) as
``[a] procedure used in the Eastern Interconnection to relieve
potential or actual loading on a Constrained Facility or Flowgate.''
Standard WEQ-008-0.40.
\30\ NAESB defines an ``Interchange Transaction'' as ``[a]
transaction that crosses one or more Balancing Authorities'
boundaries. The planned energy exchange between two adjacent
Balancing Authorities.'' Standard WEQ-008-0.19.
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26. The Commission seeks to ensure that the NAESB WEQ TLR business
practice standards and the proposed NERC TLR reliability standard
complement each other and can be implemented together harmoniously.
Therefore, we propose to update our regulations at 18 CFR 38.2 to
incorporate by reference Standard WEQ-008. We invite comment on this
proposal.
27. While we understand that NAESB and NERC have worked
collaboratively to coordinate their standard development efforts, there
appear to be several occasions in the TLR standards in which the
definitions used by the two depart. The following are some examples:
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\31\ Glossary of Terms Used in Reliability Standards, ftp://
www.nerc.com/pub/sys/all_updl/standards/rs/Glossary_02Aug06.pdf.
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NAESB definition NERC definition \31\
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Balancing Authority Area: [a]n Balancing Authority Area: [t]he
electrical system bounded by collection of generation,
Interconnection (tie-line) metering transmission, and loads within
and telemetry, where the Balancing the metered boundaries of the
Authority controls (either directly or Balancing Authority. The
by contract) generation to maintain Balancing Authority maintains
its Interchange Schedule with other load-resource balance within
Balancing Authority Areas and this area.
contributes to frequency regulation of
the Interconnection.
Interchange Transaction: [a] Interchange Transaction: [a]n
transaction that crosses one or more agreement to transfer energy
Balancing Authorities' boundaries. The from a seller to a buyer that
planned energy exchange between two crosses one or more Balancing
adjacent Balancing Authorities. Authority Area boundaries.
Reliability Coordinator: [a]n entity Reliability Coordinator: [t]he
that provides the security assessment entity that is the highest
and emergency operations coordination level of authority who is
for a group of Balancing Authorities, responsible for the reliable
Transmission Service Providers, and operation of the Bulk Electric
Transmission Operators. System, has the Wide Area view
of the Bulk Electric System,
and has the operating tools,
processes and procedures,
including the authority to
prevent or mitigate emergency
operating situations in both
next-day analysis and real-
time operations. The
Reliability Coordinator has
the purview that is broad
enough to enable the
calculation of Interconnection
Reliability Operating Limits,
which may be based on the
operating parameters of
transmission systems beyond
any Transmission Operator's
vision.
------------------------------------------------------------------------
28. There also appear to be some instances in various NAESB
standards where the same term is defined differently. For example, the
definition of Balancing Authority in Standard WEQ-004-0.3 is not
identical to the definition of that same term in Standard WEQ-008-0.4.
As the Commission stated in Order No. 676, the standards relating to
reliability would be clearer if a single definition were used. Although
in Order No. 676 the Commission generally found that NERC should take
the lead in defining reliability-related terms, \32\ we recognize that
good reasons may exist in certain cases for some differences in these
terms. We therefore request comment on whether the differences in
definitions are significant and whether a single definition for
reliability-related terms should be adopted in future standards.
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\32\ Order No. 676 at P 40.
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III. Notice of Use of Voluntary Consensus Standards
29. The NAESB WEQ standards were adopted pursuant to NAESB's
consensus procedures.\33\ As the Commission found in Order No. 676,
adoption of consensus standards is appropriate because the consensus
process helps ensure the reasonableness of the standards by requiring
that the standards draw support from a broad spectrum of all segments
of the industry. Moreover, since the industry itself has to conduct
business under these standards, the Commission's regulations should
reflect those standards that have the widest possible support. In
section 12(d) of the National Technology Transfer and Advancement Act
of 1995, Congress affirmatively requires federal agencies to use
technical standards developed by voluntary consensus standards
organizations, like NAESB, as a means to carry out policy objectives or
activities.\34\
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\33\ This process is described in note 15, supra.
\34\ Public Law 104-113, 12(d), 110 Stat. 775 (1996), 15 U.S.C.
272 note (1997).
---------------------------------------------------------------------------
30. Office of Management and Budget Circular A-119 (section 11)
(February 10, 1998) provides that Federal Agencies should publish a
request for comment in a NOPR when the agency is seeking to issue or
revise a regulation proposing to adopt a voluntary consensus standard
or a government-unique standard. In this NOPR, the Commission is
proposing to incorporate by reference a voluntary consensus standard
developed by the WEQ.
IV. Information Collection Statement
31. The following collection(s) of information contained in this
proposed rule have been submitted to the Office of Management and
Budget (OMB) for review under section 3507(d) of the Paperwork
Reduction Act of 1995, 44 U.S.C. 3507(d). The Commission solicits
comments on the Commission's need for this information, whether the
information will have practical utility, the accuracy of the provided
burden estimates, ways to enhance the quality, utility, and clarity of
the information to be collected, and any suggested methods for
minimizing respondents' burden, including the use of automated
information techniques. Respondents subject to the filing requirements
of this rule will not be penalized for failing to respond to these
collections of information unless the collections of information
display a valid OMB Control number.
32. The following burden estimate is based on the projected costs
for the industry to implement revisions to the WEQ Standards currently
incorporated by reference into the Commission's regulations at 18 CFR
38.2 and to implement the new standards adopted by NAESB that we
propose here to incorporate by reference.
[[Page 22854]]
----------------------------------------------------------------------------------------------------------------
Number of
Data collection Nunber of responses per Hours per Total number
respondents respondent response of hours
----------------------------------------------------------------------------------------------------------------
FERC-516........................................ 176 1 6 1056
FERC-717........................................ 176 1 10 1760
---------------------------------------------------------------
Totals.......................................... .............. .............. .............. 2816
----------------------------------------------------------------------------------------------------------------
Total Annual Hours for Collection: (Reporting and Recordkeeping,
(if appropriate)) = 2816 hours.
Information Collection Costs: The Commission seeks comments on the
costs to comply with these requirements. It has projected the average
annualized cost for all respondents to be the following: \35\
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\35\ The total annualized costs for the information collection
is $901,120. This number is reached by multiplying the total hours
to prepare responses (2,816) by an hourly wage estimate of $320 (a
composite estimate that includes legal, technical and support staff
rates, $200 + $95 + $25=$320), 2,816 hours x $320/hour= $901,120.
------------------------------------------------------------------------
FERC-516 FERC-717
------------------------------------------------------------------------
Annualized Capital/Startup Costs........ $337,920 $563,200
Annualized Costs (Operations & N/A
Maintenance)...........................
-------------------------------
Total Annualized Costs.............. 337,920 563,200
------------------------------------------------------------------------
33. OMB regulations \36\ require OMB to approve certain information
collection requirements imposed by agency rule. The Commission is
submitting notification of this proposed rule to OMB. These information
collections are mandatory requirements.
---------------------------------------------------------------------------
\36\ 5 CFR 1320.11.
---------------------------------------------------------------------------
Title: Standards for Business Practices and Communication Protocols
for Public Utilities (formerly Open Access Same Time Information
System) (FERC-717); Electric Rate Schedule Filings (FERC-516).
Action: Proposed collection.
OMB Control No.: 1902-0096 (FERC-516); 1902-0173 (FERC-717).
Respondents: Business or other for profit, (Public Utilities--Not
applicable to small businesses.)
Frequency of Responses: One-time implementation (business
procedures, capital/start-up).
Necessity of the Information: This proposed rule, if implemented
would upgrade the Commission's current business practice and
communication standards. Specifically, these standards include several
modifications to the existing business practice standards as well as
creating new standards to provide additional functionality for OASIS
transactions, transmission loading relief and public key
infrastructure. The standards will assist in providing greater security
for business transactions over the Internet, identify the business
practices to be used to relieve potential or actual loading on a
constrained facility and facilitate the transfer of electric energy
between entities responsible for balancing load and generation. These
practices will ensure that potential customers of open access
transmission service receive access to information that will enable
them to obtain transmission service on a non-discriminatory basis and
will assist the Commission in maintaining a safe and reliable
infrastructure and also will assure the reliability of the interstate
transmission grid. The implementation of these standards and
regulations is necessary to increase the efficiency of the wholesale
electric power grid.
34. The information collection requirements of this proposed rule
are based on the transition from transactions being made under the
Commission's existing business practice standards to conducting such
transactions under the proposed revisions to these standards and to
account for the burden associated with the new standard(s) being
proposed here (i.e., WEQ-008 and WEQ-012).
35. Internal Review: The Commission has reviewed the revised
business practice standards and has made a preliminary determination
that the proposed revisions are necessary to maintain consistency
between the business practice standards and reliability standards on
this subject. The Commission has assured itself, by means of its
internal review, that there is specific, objective support for the
burden estimate associated with the information requirements.
36. Interested persons may obtain information on the reporting
requirements by contacting the following: Federal Energy Regulatory
Commission, Attn: Michael Miller, Office of the Executive Director, 888
First Street, NE., Washington, DC 20426, Tel: (202) 502-8415 / Fax:
(202) 273-0873, E-mail: michael.miller@ferc.gov.
37. Comments concerning the collection of information(s) and the
associated burden estimate(s), should be sent to the contact listed
above and to the Office of Management and Budget, Office of Information
and Regulatory Affairs, Washington, DC 20503 [Attention: Desk Officer
for the Federal Energy Regulatory Commission, phone: (202) 395-7856,
fax: (202) 395-7285].
V. Environmental Analysis
38. The Commission is required to prepare an Environmental
Assessment or an Environmental Impact Statement for any action that may
have a significant adverse effect on the human environment.\37\ The
Commission has categorically excluded certain actions from these
requirements as not having a significant effect on the human
environment.\38\ The actions proposed here fall within categorical
exclusions in the Commission's regulations for rules that are
clarifying, corrective, or procedural, for information gathering,
analysis, and dissemination, and for sales, exchange, and
transportation of electric power that requires no construction of
facilities.\39\ Therefore, an environmental assessment is unnecessary
and has not been prepared in this NOPR.
---------------------------------------------------------------------------
\37\ Order No. 486, Regulations Implementing the National
Environmental Policy Act, 52 FR 47897 (Dec. 17, 1987), FERC Stats. &
Regs., Regulations Preambles 1986-1990 ]30,783 (1987).
\38\ 18 CFR 380.4.
\39\ See 18 CFR 380.4(a)(2)(ii), 380.4(a)(5), 380.4(a)(27).
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[[Page 22855]]
VI. Regulatory Flexibility Act Certification
39. The Regulatory Flexibility Act of 1980 (RFA) \40\ generally
requires a description and analysis of final rules that will have
significant economic impact on a substantial number of small entities.
The regulations proposed here impose requirements only on public
utilities, which are not small businesses, and, these requirements are,
in fact, designed to benefit all customers, including small businesses.
---------------------------------------------------------------------------
\40\ 5 U.S.C. 601-612.
---------------------------------------------------------------------------
40. The Commission has followed the provisions of both the RFA and
the Paperwork Reduction Act on potential impact on small business and
other small entities. Specifically, the RFA directs agencies to
consider four regulatory alternatives to be considered in a rulemaking
to lessen the impact on small entities: Tiering or establishment of
different compliance or reporting requirements for small entities,
classification, consolidation, clarification or simplification of
compliance and reporting requirements, performance rather than design
standards, and exemptions. As the Commission originally stated in Order
No. 889, the OASIS regulations now known as Standards for Business
Practices and Communication Protocols for Public Utilities, apply only
to public utilities that own, operate, or control transmission
facilities subject to the Commission's jurisdiction and should a small
entity be subject to the Commission's jurisdiction, it may file for
waiver of the requirements. This is consistent with the exemption
provisions of the RFA. Accordingly, pursuant to section 605(b) of the
RFA,\41\ the Commission hereby certifies that the regulations proposed
herein will not have a significant adverse impact on a substantial
number of small entities.
---------------------------------------------------------------------------
\41\ 5 U.S.C. 605(b).
---------------------------------------------------------------------------
VII. Comment Procedures
41. The Commission invites interested persons to submit comments on
the matters and issues proposed in this notice to be adopted, including
any related matters or alternative proposals that commenters may wish
to discuss. Comments are due May 28, 2008. Comments must refer to
Docket No. RM05-5-005, and must include the commenter's name, the
organization they represent, if applicable, and their address. Comments
may be filed either in electronic or paper format.
42. Comments may be filed electronically via the eFiling link on
the Commission's Web site at http://www.ferc.gov. The Commission
accepts most standard word processing formats and commenters may attach
additional files with supporting information in certain other file
formats. Commenters filing electronically do not need to make a paper
filing. Commenters that are not able to file comments electronically
must send an original and 14 copies of their comments to: Federal
Energy Regulatory Commission, Secretary of the Commission, 888 First
Street, NE., Washington, DC 20426.
43. All comments will be placed in the Commission's public files
and may be viewed, printed, or downloaded remotely as described in the
Document Availability section below. Commenters on this proposal are
not required to serve copies of their comments on other commenters.
VIII. Document Availability
44. In addition to publishing the full text of this document in the
Federal Register, the Commission provides all interested persons an
opportunity to view and/or print the contents of this document via the
Internet through FERC's Home Page (http://www.ferc.gov) and in FERC's
Public Reference Room during normal business hours (8:30 a.m. to 5 p.m.
Eastern time) at 888 First Street, NE., Room 2A, Washington, DC 20426.
45. From FERC's Home Page on the Internet, this information is
available in the eLibrary. The full text of this document is available
in the eLibrary both in PDF and Microsoft Word format for viewing,
printing, and/or downloading. To access this document in eLibrary, type
the docket number excluding the last three digits of this document in
the docket number field.\42\
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\42\ NAESB's Dec. 26, 2007, submittal is also available for
viewing in eLibrary. The link to this file is as follows: http://
elibrary.ferc.gov:0/idmws/doc--info.asp?document--id=13566661.
---------------------------------------------------------------------------
46. User assistance is available for eLibrary and the FERC's web
site during our normal business hours. For assistance contact FERC
Online Support at FERCOnlineSupport@ferc.gov or toll-free at (866) 208-
3676, or for TTY, contact (202) 502-8659.
List of Subjects in 18 CFR Part 38
Conflict of interests, Electric power plants, Electric utilities,
Incorporation by reference, Reporting and recordkeeping requirements.
By direction of the Commission.
Commissioner Wellinghoff concurring with a separate statement
attached.
Kimberly D. Bose,
Secretary.
In consideration of the foregoing, the Commission proposes to amend
Chapter I, Title 18, part 38 of the Code of Federal Regulations, as
follows:
PART 38--BUSINESS PRACTICE STANDARDS AND COMMUNICATION PROTOCOLS
FOR PUBLIC UTILITIES
1. The authority citation for part 38 continues to read as follows:
Authority: 16 U.S.C. 791-825r, 2601-2645; 31 U.S.C. 9701; 42
U.S.C. 7101-7352.
2. In Sec. 38.2, paragraphs (a)(1) through (8) are revised, and
paragraphs (a)(9) through (11) are added to read as follows:
Sec. 38.2 Incorporation by reference of North American Energy
Standards Board Wholesale Electric Quadrant standards.
(a) * * *
(1) Business Practices for Open Access Same-Time Information
Systems (OASIS), Version 1.4 (WEQ-001, Version 001, October 31, 2007,
with minor corrections applied on November 16, 2007) with the exception
of Standards 001-0.1, 001-0.9 through 001-0.13, 001-1.0 through 001-
1.8, and 001-9.7;
(2) Business Practices for Open Access Same-Time Information
Systems (OASIS) Standards & Communication Protocols, Version 1.4 (WEQ-
002, Version 001, October 31, 2007, with minor corrections applied on
November 16, 2007);
(3) Open Access Same-Time Information Systems (OASIS) Data
Dictionary, Version 1.4 (WEQ-003, Version 001, October 31, 2007, with
minor corrections applied on November 16, 2007);
(4) Coordinate Interchange (WEQ-004, Version 001, October 31, 2007,
with minor corrections applied on November 16, 2007);
(5) Area Control Error (ACE) Equation Special Cases (WEQ-005,
Version 001, October 31, 2007, with minor corrections applied on
November 16, 2007);
(6) Manual Time Error Correction (WEQ-006, Version 001, October 31,
2007, with minor corrections applied on November 16, 2007);
(7) Inadvertent Interchange Payback (WEQ-007, Version 001, October
31, 2007, with minor corrections applied on November 16, 2007);
(8) Transmission Loading Relief--Eastern Interconnection (WEQ-008,
Version 001, October 31, 2007, with minor corrections applied on
November 16, 2007);
(9) Gas/Electric Coordination (WEQ-011, Version 001, October 31,
2007, with minor corrections applied on November 16, 2007);
(10) Public Key Infrastructure (PKI) (WEQ-012, Version 001, October
31,
[[Page 22856]]
2007, with minor corrections applied on November 16, 2007);
(11) Business Practices for Open Access Same-Time Information
Systems (OASIS) Implementation Guide, Version 1.4 (WEQ-013, Version
001, October 31, 2007, with minor corrections applied on November 16,
2007).
* * * * *
Note: The following statement will not appear in the Code of
Federal Regulations.
DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
[Docket No. RM05-5-005]
Standards for Business Practices and Communication Protocols for Public
Utilities
April 21, 2008.
WELLINGHOFF, Commissioner, concurring:
Today, the Commission issues a Notice of Proposed Rulemaking (NOPR)
proposing to amend its regulations under the Federal Power Act \43\ to
incorporate by reference, among other matters, the latest version of
certain business practice standards concerning the Open Access Same-
Time Information Systems (OASIS) adopted by the Wholesale Electric
Quadrant (WEQ) of the North American Energy Standards Board
(NAESB).\44\ I appreciate NAESB's leadership and the work of the
industry in developing these business practice standards.
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\43\ 16 U.S.C. 791a, et. seq.
\44\ In addition, the Commission proposes in this NOPR to
incorporate by reference NAESB's new business practices standards on
transmission loading relief (TLR) for the Eastern Interconnection. I
note my concurrence to the separate, concurrently issued NOPR in
Docket No. RM08-7-000, in which the Commission proposes to approve,
among other matters, modified Reliability Standard IRO-006-4
pertaining to TLR procedures to which the NAESB business practice we
address herein relates.
---------------------------------------------------------------------------
One of the business practice standards addressed in this NOPR, WEQ-
001 Version 1.4, revises NAESB's Business Practices for OASIS and,
among other matters, addresses the information that is to be posted on
OASIS. This information includes posting of ancillary service offerings
and prices and the process for customers to procure ancillary services.
I write separately to note that in Order No. 890, the Commission
determined that many ancillary services may be provided by generating
units as well as other non-generation resources such as demand
resources where appropriate.\45\ Nothing in WEQ-001 precludes such a
role for demand resources, but the definition of certain ancillary
services in the standard also does not specifically reflect that
possible role.
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\45\ See Order No. 890 at P 888 (addressing the following
ancillary services: Reactive Supply and Voltage Control, Regulation
and Frequency Response, Energy Imbalances, Spinning Reserves,
Supplemental Reserves, and Generator Imbalances (Schedules 2, 3, 4,
5, 6, and 9, respectively, of the pro forma OATT)).
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To remove any confusion between the pro forma tariff that the
Commission adopted in Order No. 890 and the business practice standards
for offering and procuring ancillary services on OASIS, I encourage
NAESB and its stakeholders to amend WEQ-001, as soon as possible, to
reflect that the above-noted ancillary services may be provided by non-
generation resources such as demand resources. This will facilitate
implementation of this aspect of the pro forma OATT.
For this reason, I concur with this NOPR.
Jon Wellinghoff,
Commissioner.
[FR Doc. E8-9046 Filed 4-25-08; 8:45 am]
BILLING CODE 6717-01-P