[Federal Register Volume 75, Number 226 (Wednesday, November 24, 2010)]
[Proposed Rules]
[Pages 71625-71632]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-29569]
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DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
18 CFR Part 40
[Docket No. RM10-16-000]
System Restoration Reliability Standards
November 18, 2010.
AGENCY: Federal Energy Regulatory Commission, DOE.
ACTION: Notice of proposed rulemaking.
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SUMMARY: Under section 215 of the Federal Power Act (FPA), the Federal
Energy Regulatory Commission (Commission) proposes to approve
Reliability Standards EOP-001-1 (Emergency Operations Planning), EOP-
005-2 (System Restoration from Blackstart Resources), and EOP-006-2
(System Restoration Coordination) submitted to the Commission by the
North American Electric Reliability Corporation, the Electric
Reliability Organization (ERO) certified by the Commission. In
addition, the Commission seeks comment from the ERO and other
interested parties regarding specific concerns. The Commission may
determine that, after considering such comments, it is appropriate to
direct the ERO, under section 215(d)(5) of the FPA, to develop
additional modifications to proposed EOP-005-2 and EOP-006-2. The
proposed Reliability Standards require that plans, facilities and
personnel are prepared to enable system restoration using designated
blackstart resources.
DATES: Comments are due January 24, 2011.
ADDRESSES: You may submit comments, identified by Docket No. RM10-16-
000 and in accordance with the requirements posted on the Commission's
Web site, http://www.ferc.gov. Comments may be submitted by any of the
following methods:
Agency Web Site: Documents created electronically using
word processing software should be filed in native applications or
print-to-PDF format, and not in a scanned format, at http://www.ferc.gov/docs-filing/efiling.asp.
Mail/Hand Delivery: Commenters unable to file comments
electronically must mail or hand deliver their comments to: Federal
Energy Regulatory Commission, Secretary of the Commission, 888 First
Street, NE., Washington, DC 20426. These requirements can be found on
the Commission's Web site, see, e.g., the ``Quick Reference Guide for
Paper Submissions,'' available at http://www.ferc.gov/docs-filing/efiling.asp or via phone from FERC Online Support at 202-502-6652 or
toll-free at 1-866-208-3676.
FOR FURTHER INFORMATION CONTACT:
David O'Connor (Technical Information), Office of Electric Reliability,
Division of Reliability Standards, Federal Energy Regulatory
Commission, 888 First Street, NE., Washington, DC 20426, (202) 502-
6695.
Nick Henery (Technical Information), Office of Electric Reliability,
Division of Reliability Standards, Federal Energy Regulatory
Commission, 888 First Street, NE. Washington, DC 20426, (202) 502-8636.
Terence Burke (Legal Information), Office of the General Counsel,
Federal Energy Regulatory Commission, 888 First Street, NE.,
Washington, DC 20426, (202) 502-6498.
Jonathan First (Legal Information), Office of the General Counsel,
Federal Energy Regulatory Commission, 888 First Street, NE.,
Washington, DC 20426, (202) 502-8529.
SUPPLEMENTARY INFORMATION:
Notice of Proposed Rulemaking
1. Under section 215 of the Federal Power Act (FPA),\1\ the
Commission proposes to approve three Reliability Standards, EOP-001-1
(Emergency Operations Planning), EOP-005-2 (System Restoration from
Blackstart Resources), and EOP-006-2 (System Restoration Coordination)
developed by the North American Electric Reliability Corporation
(NERC), the Commission-certified Electric Reliability Organization
(ERO), as well as the definition of the term ``Blackstart Resource'' to
be added to the NERC Glossary of Terms. The proposed Reliability
Standards were drafted to ensure plans, facilities and personnel are
prepared to enable system restoration from blackstart resources in
order that reliability is maintained during system restoration. The
Commission also seeks comment from the ERO and other interested
entities regarding the Commission's specific concerns discussed below.
The Commission may determine that, after considering such comments, it
is appropriate to direct the ERO, under section 215(d)(5) of the FPA,
to develop additional modifications to proposed EOP-005-2 and EOP-006-
2. The Commission also proposes to approve
[[Page 71626]]
the retirement of the currently effective Reliability Standards EOP-
001-0 (Emergency Operations Planning), EOP-005-1 (System Restoration
Plans), EOP-006-1 (Reliability Coordination--System Restoration), and
EOP-009-0 (Documentation of Blackstart Generating Unit Test Results) as
well as the definition of ``Blackstart Capability Plan'' from the NERC
Glossary of Terms, which are superseded by the proposed Reliability
Standards EOP-001-1, EOP-005-2 and EOP-006-2.
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\1\ 16 U.S.C. 824o (2006).
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2. ``Blackstart'' capability refers to the ability of a generating
unit or station to start operating and delivering electric power
without assistance from the electric system. Blackstart units are
essential to restart generation and restore power to the grid in the
event of an outage. As discussed below, NERC proposes to define
``Blackstart Resource'' as ``a generating unit(s) and its associated
set of equipment which has the ability to be started without support
from the System or is designed to remain energized without connection
to the remainder of the System, with the ability to energize a bus. * *
* '' The proposed EOP Reliability Standards addressed in this
rulemaking were developed by NERC to ensure that applicable entities
prepare plans, facilities and personnel to enable system restoration
from blackstart resources in order that reliability is maintained
during restoration.
3. In Order No. 693, the Commission determined that it would not
take action on certain proposed Reliability Standards that require
supplemental information from a Regional Entity. Such Reliability
Standards refer to regional criteria or procedures that have not been
submitted to the Commission for approval and, as such, are referred to
as ``fill-in-the-blank'' standards.\2\ Pending Reliability Standard
EOP-007-0 is one such fill-in-the-blank standard. The proposed
Reliability Standards provide a national approach to address the
Commission's concerns regarding pending EOP-007-0, as set forth in
Order No. 693. Thus, in addition to the retirement of certain currently
effective EOP Reliability Standards, we also propose to approve NERC's
to withdrawal of pending Reliability Standard EOP-007-0.
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\2\ Mandatory Reliability Standards for the Bulk-Power System,
Order No. 693, 72 FR 16416 at P 297 (Apr. 4, 2007), FERC Stats. &
Regs. ] 31,242, order on reh'g, Order No. 693-A, 120 FERC ] 61,053
(2007).
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I. Background
A. Section 215 of the FPA
4. Section 215 of the FPA requires a Commission-certified ERO to
develop mandatory and enforceable Reliability Standards, which are
subject to Commission review and approval. If approved, the Reliability
Standards are enforced by the ERO, subject to Commission oversight, or
by the Commission independently.
5. In July 2006, the Commission certified NERC as the ERO.\3\
Concurrent with its 2006 ERO Application, NERC submitted to the
Commission a petition seeking approval of 107 proposed Reliability
Standards, including nine Emergency Preparedness and Operations (EOP)
Reliability Standards. The EOP group of Reliability Standards addresses
preparations for emergencies, necessary actions during emergencies and
system restoration and reporting following disturbances.
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\3\ North American Electric Reliability Corp., 116 FERC ]
61,062 (ERO Certification Order), order on reh'g & compliance, 117
FERC ] 61,126 (2006), aff'd sub nom. Alcoa, Inc. v. FERC, 564 F.3d
1342 (D.C. Cir. 2009).
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6. On March 16, 2007, the Commission issued Order No. 693,
approving 83 of the 107 Reliability Standards filed by NERC,\4\
including the Reliability Standards: EOP-001-0, EOP-005-1, EOP-006-1
and EOP-009-0.\5\ The Commission neither approved nor remanded EOP-007-
0 because it applied only to regional reliability organizations, but
Order No. 693 did provide guidance for the ERO's further consideration
of the Reliability Standard.\6\ In addition, under section 215(d)(5) of
the FPA, the Commission directed NERC to develop modifications to the
EOP Reliability Standards to address certain issues identified by the
Commission. At issue in the immediate proceeding are two new EOP
standards, EOP-005-2 and EOP-006-2 that would replace the currently
effective Reliability Standards EOP-005-1, EOP-006-1, and EOP-009-0 and
necessitate a conforming change in EOP-001-0.
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\4\ Order No. 693, FERC Stats. & Regs. ] 31,242 at P 304-1899.
\5\ Id. P 542-676.
\6\ Id. P 644.
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B. Currently Effective EOP Reliability Standards
1. Reliability Standard EOP-005-1
7. Currently effective Reliability Standard EOP-005-1 requires
transmission operators, balancing authorities, and reliability
coordinators to have a restoration plan, test the plan, train operating
personnel in the restoration plan and to have the ability to restore
the Interconnection using the plans following a blackout. In Order No.
693, the Commission directed the ERO to develop, through the
Reliability Standard Development Process, a modification to EOP-005-1
that (i) identifies time frames for training and review of restoration
plan requirements to simulate contingencies and prepare operators for
anticipated and unforeseen events and (ii) gathers data from
simulations and drills of system restoration on the time taken to
restore power to nuclear power plants and report that information to
the Commission.\7\ The Commission also directed the ERO to consider
various commenters suggestions in future revisions of the Reliability
Standard.\8\
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\7\ Id. P 630.
\8\ Id. P 628.
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2. Reliability Standard EOP-006-1
8. In Order No. 693, the Commission also approved Reliability
Standard EOP-006-1 addressing reliability coordination and system
restoration. The Reliability Standard sets requirements for reliability
coordinators during system restoration and requires that reliability
coordinators have a coordinating role in system restoration to ensure
reliability is maintained during system restoration. Under section 215
of the FPA, the Commission directed the ERO to develop a modification
to EOP-006-1 to ensure that the reliability coordinator is involved in
the development and approval of system restoration plans.\9\
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\9\ Id. P 638.
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3. Reliability Standard EOP-007-0
9. ``Pending'' Reliability Standard EOP-007-0 deals with
establishing, maintaining and documenting regional blackstart
capability plans. In Order No. 693, the Commission did not act on EOP-
007-0 because it applies only to regional reliability organizations and
as such was not acted on pending NERC's providing additional
information.\10\ The Commission directed the ERO to consider various
commenters suggestions relating to assigning compliance obligations
directly to the entities that provide the pertinent data instead of to
the Regional Entity, placing responsibility for the regional blackstart
plan with the reliability coordinator rather than the Regional Entity,
recognizing that nuclear units have no blackstart capability, revising
the definition of a blackstart unit, and committing arrangements for
[[Page 71627]]
coordinating blackstart capability to contracts.\11\
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\10\ Id. P 297 and 644.
\11\ Id. P 642-643, 647.
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4. Reliability Standard EOP-009-0
10. Currently effective Reliability Standard EOP-009-0 deals with
implementing and documenting testing of blackstart generating units. In
Order No. 693, the Commission approved EOP-009-0. In addition, the
Commission directed the ERO to consider suggestions for improvements
raised during the comment period. One commenter stated the Reliability
Standard should provide details on what constitutes a blackstart test
and another stated NERC should consolidate the Reliability Standard
with EOP-007-0.\12\
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\12\ Id. P 674, 676.
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II. NERC Petition for Proposed EOP Reliability Standards
11. In a December 31, 2009 filing (NERC Petition), NERC requests
Commission approval of its proposed definition of the term ``Blackstart
Resource'' and proposed Reliability Standards EOP-001-1 (Emergency
Operating Plan),\13\ EOP-005-2 (System Restoration from Blackstart
Resources) and EOP-006-2 (System Restoration Coordination). NERC also
seeks to concurrently retire four currently effective Reliability
Standards: EOP-001-0, EOP-005-1, EOP-006-1, and EOP-009-0 as well as
the definition of ``Blackstart Capability Plan'' and withdraw pending
Reliability Standard EOP-007-0.
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\13\ Concurrent with its filing in this Docket, NERC filed a
petition in Docket No. RM10-15-000 seeking approval of certain
Interconnection Reliability Operating Limit (IRO) Reliability
Standards. As part of its IRO filing, NERC proposed to retire
Requirement R2 of EOP-001-0. Each petition proposes unique changes
to EOP-001-0 reflecting the distinct issues addressed by the
respective Reliability Standards drafting teams. NERC indicated in
both petitions that it could not anticipate the sequence in which
the Commission would act and therefore included two sets of proposed
amendments to EOP-001-0 in each petition. The Commission will
clarify upon issuance of Final Rules in each proceeding which
revised version of EOP-001-0 it is addressing in its determination.
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12. NERC states that the proposed Reliability Standards ``represent
significant revision and improvement from the current set of
enforceable standards'' and address the Commission's directives in
Order No. 693 related to the EOP standards.\14\ NERC explains that,
among other enhancements, ``[t]he proposed revisions now clearly
delineate the responsibilities of the Reliability Coordinator and
Transmission Operator in the restoration process and restoration
planning.'' \15\ NERC describes the proposed Reliability Standards as
providing ``specific requirements for what must be in a restoration
plan, how and when it needs to be updated and approved, what needs to
be provided to operators and what training is necessary for personnel
involved in restoration processes.'' \16\ NERC requests that the
Commission approve (1) the proposed Reliability Standards, (2)
concurrent retirement of the currently effective EOP Reliability
Standards, and (3) the revisions to the NERC Glossary of Terms. With
regard to implementation, NERC proposes that the proposed EOP
Reliability Standards, new definitions and retirements of effective
standards be made effective twenty-four months after the first day of
the first calendar quarter following applicable regulatory approval.
Below, we describe each of the proposed EOP Reliability Standards.
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\14\ NERC Petition at 4.
\15\ Id. 5.
\16\ Id.
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A. Blackstart Resource
13. NERC requests approval of the term ``Blackstart Resource'' and
the concurrent retirement of the term ``Blackstart Capability Plan.''
The proposed definition of ``Blackstart Resource'' is:
A generating unit(s) and its associated set of equipment which
has the ability to be started without support from the System or is
designed to remain energized without connection to the remainder of
the System, with the ability to energize a bus, meeting the
Transmission Operator's restoration plan needs for real and reactive
power capability, frequency and voltage control, and that has been
included in the Transmission Operator's restoration plan.
The term ``Blackstart Capacity Plan'' is currently used solely in EOP-
007-0 and EOP-009-0, both of which NERC intends to replace with
proposed Reliability Standards EOP-005-2 and EOP-006-2.
B. Reliability Standard EOP-001-1
14. Proposed Reliability Standard EOP-001-1 contains seven
requirements for the stated purpose of requiring each transmission
operator and balancing authority to develop, maintain and implement a
set of plans to mitigate operating emergencies and to coordinate these
plans with other transmission operators, balancing authorities and the
reliability coordinator.\17\ It modifies EOP-001-0 by deleting
currently effective Requirement R3.4, which requires transmission
operators and balancing authorities to develop, maintain and implement
a set of plans for system restoration. According to NERC, the deletion
is proposed because the new EOP-005-2 and EOP-006-2 incorporate and
expand upon this requirement.
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\17\ Reliability Standard EOP-001-1, Section A.3. (Purpose).
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C. Reliability Standard EOP-005-2
15. Proposed Reliability Standard EOP-005-2 contains eighteen
requirements for the stated purpose of ensuring that plans, facilities
and personnel are prepared to enable system restoration from Blackstart
Resources, and to ensure reliability is maintained during restoration
and priority is placed on restoring the Interconnection.\18\ The
proposed Reliability Standard applies to transmission operators,
generation operators, and transmission owners, and distribution
providers identified in the transmission operator's restoration plan.
Requirement R1 requires each transmission operator to have a
reliability coordinator-approved restoration plan utilizing Blackstart
Resources and details the scope and elements of such a plan.
Requirement R2 instructs each transmission operator to provide entities
that have a role in the restoration plan with a description of their
roles and tasks. Requirements R3 through R6 address annual plan
reviews, updating practices, location of plans and plan verification.
Following a disturbance, Requirements R7 and R8 provide guidance on
following the plan or making needed adjustments and coordinating when
re-synchronizing two systems together. Requirement R9 describes testing
information the transmission operator must have to verify the
Blackstart Resources meet required expectations. Requirements R10 to
R12 cover system restoration training requirements for system operators
and field switching personnel. Blackstart Resource agreements between
the transmission operator and generator operator or mutually agreed
upon procedures or protocols are addressed in Requirement R13. Duties
of a generator owner with a Blackstart Resource are provided in
Requirements R14 through R18, which address operating procedures,
change notification, testing for each Blackstart Resource and training
of operating personnel on Blackstart Resources. NERC has requested that
EOP-005-1 be retired upon the effectiveness of EOP-005-2.
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\18\ Reliability Standard EOP-005-2, Section A.4. (Purpose).
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D. Reliability Standard EOP-006-2
16. Proposed Reliability Standard EOP-006-2 contains ten
requirements for the stated purpose of ensuring that
[[Page 71628]]
the reliability coordinator establishes plans and prepares personnel to
enable effective coordination of the system restoration process, to
maintain reliability during restoration and to place priority on
restoring the Interconnection.\19\ Requirement R1 requires reliability
coordinators to have restoration plans that utilize Blackstart
Resources and specifies the scope and elements of such plans.
Requirement R2 covers distribution of the reliability coordinator's
restoration plan. Requirements R3 through R5 provide for review of the
reliability coordinator's restoration plan and the plans of each
neighboring reliability coordinator and each transmission operator
located in the reliability coordinator's area. Any conflicts between
reliability coordinators' plans are to be resolved within thirty days,
and transmission operators' plans shall be approved or disapproved,
with stated reasons, within thirty days. Requirement R6 requires that
the reliability coordinator must maintain copies of restoration plans
in the reliability coordinator's primary and backup control room.
Requirements R7 and R8 describe the roles of reliability coordinators
to coordinate restoration efforts and authorize re-synchronizing of
``island'' areas. Requirements R9 and R10 address training and
participation in annual drills, exercises and simulations. NERC has
requested with acceptance of EOP-006-2 that EOP-006-1 be retired.
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\19\ Reliability Standard EOP-006-2, Section A.3. (Purpose).
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III. Discussion
17. We believe that the proposed glossary term ``Blackstart
Resource'' and Reliability Standards EOP-001-1, EOP-005-2, and EOP-006-
2 comply with the relevant directives set forth in Order No. 693. We
also believe that the proposed EOP Reliability Standards represent an
improvement in blackstart restoration requirements, as represented by
NERC. Accordingly, under section 215(d)(2) of the FPA, the Commission
proposes to approve the new term and proposed Reliability Standards as
just, reasonable, not unduly discriminatory or preferential and in the
public interest. In addition, the Commission seeks comment from the ERO
and other interested parties regarding specific concerns and may
determine, after considering such comments, that it is appropriate to
direct the ERO, under section 215(d)(5) of the FPA, to develop
additional modifications to proposed Reliability Standards EOP-005-2
and EOP-006-2. Below, we discuss each proposed EOP Reliability Standard
and relevant concerns.
A. EOP-001-1 Emergency Operation Planning
18. The Commission proposes to approve EOP-001-1 as requested by
NERC.\20\ Current Requirement R3.4 of Reliability Standard EOP-001-0
requires each transmission operator and balancing authority to develop,
maintain and implement system restoration plans. The removal of that
Requirement from EOP-001-0 is appropriate because NERC proposes to
address system restoration plans in its new Reliability Standards EOP-
005-2 and EOP-006-2. The Order No. 693 directives applicable to EOP-
001-0 were not addressed in the NERC Petition since the proposed
standards are narrowly focused on system restoration that is a part,
and not the sole subject, of the EOP standards. We note that all of the
Order No. 693 directives relating to EOP-001-0 are still applicable to
EOP-001-1 and will need to be addressed by NERC in another filing.\21\
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\20\ The version of EOP-001-1 that the Commission proposes to
approve is the version contained in Exhibit A in the NERC Petition.
\21\ See Order No. 693, FERC Stats. & Regs. ] 31,242 at P 548,
554, 555, 561, 562 and 566.
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B. EOP-005-2 System Restoration From Blackstart Resources
19. The Commission proposes to approve proposed Reliability
Standard EOP-005-2. The Reliability Standard effectively addresses the
Commission's directive in Order No. 693 to develop time frames for
training and review of restoration plan requirements to simulate
contingencies and prepare operators for anticipated and unforeseen
events. Requirements R3 and R4 set forth time frames for review of
restoration plans. Frequency of testing Blackstart Resources is
addressed in Requirement R9, and Requirement R6 requires each
transmission operator to verify every five years through analysis of
actual events, steady state and dynamic simulations, or testing that
its restoration plan accomplishes its intended function. Periodic
drills and training are the most effective method of demonstrating
restoration plans are current and appropriate personnel are prepared,
and proposed Requirements R10, R11 and R17 address training
requirements for system operators, field switching personnel and
generator operators with Blackstart Resources.
20. Proposed Requirement R11 of EOP-005-2 provides that applicable
entities ``shall provide a minimum of two hours of System restoration
every two calendar years to their field switching personnel identified
as performing unique tasks associated with the Transmission Operator's
restoration plan that are outside of their normal tasks.'' NERC's
Petition indicates that, in the development process, three stakeholders
commented that the use of the term ``unique tasks'' is vague and
requested a better definition and examples.\22\ The Commission is also
concerned that the applicable entities may not understand what the term
``unique tasks'' means, and we request comment on what is intended by
that term. Also, given that there a variety of means by which the ERO,
if necessary, can provide greater clarity regarding the term ``unique
tasks,'' we request comment on whether guidance should be provided to
the transmission operators, transmission owners and distribution
providers who are responsible for providing training, and if so, how
this guidance should be provided. In addition, we seek comment as to
whether those tasks should be identified in each transmission
operator's restoration plan.
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\22\ See NERC Petition, Exh. E (Record of Development of
Proposed Reliability Standards) at 1429, 1500, and 1748 (as
identified in the PDF version available on eLibrary on the FERC's
Home Page (http://www.ferc.gov)).
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21. Requirement R5 of currently effective EOP-005-1 addresses
periodic testing of telecommunication facilities needed to implement
restoration plans. This requirement, however, is not carried over to
proposed EOP-005-2. We recognize that currently effective communication
Reliability Standard COM-001-1.1 requires that reliability
coordinators, transmission operators and balancing authorities manage,
alarm, test and/or actively monitor vital telecommunication facilities,
with special attention given to emergency facilities and equipment.
Consistent with that requirement, the Commission proposes to require
that the ERO develop a modification to EOP-005-2 that addresses this
concern, for example, by specifying that such testing of
telecommunication facilities be identified in the restoration plan and
be part of any restoration drill, exercise or simulation. By placing
the duty to test telecommunications facilities in the restoration plan,
entities will ensure restoration-specific telecommunications equipment,
phone lists and protocols are tested by restoration personnel as part
of their ongoing restoration preparedness. In addition, recommendation
26 of the U.S.-Canada report \23\ on the August 14, 2003
[[Page 71629]]
blackout recognizes that effective communication protocols during
alerts and emergencies are essential to reliability. Consistent with
the Blackout Report, applicable entities should have standing hotline
networks or functional equivalents to receive timely and accurate
information and should regularly test such communication networks.
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\23\ U.S.-Canada Power System Outage Task Force, Final Report on
the August 14, 2003 Blackout in the United States and Canada: Causes
and Recommendations at 161 (April 2004) (Blackout Report), available
at http://www.ferc.gov/industries/electric/indus-act/blackout.asp.
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22. Given the importance of communication to the restoration
process, however, the Commission further believes that testing should
be done more frequently than during annual drills, exercises or
simulations (as is contained in the currently effective Requirement R5
of EOP-005-1). The Commission is concerned that in an emergency event,
communication devices must be readily available and functioning
properly.\24\ For example, wireless devices may be missing or non-
functional and emergency contact information may be out of date. A
relatively unintrusive, periodic test or drill of communications may
provide greater assurance that communications equipment is available
for responding in an emergency. The Commission invites comment on this
issue.
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\24\ Information on the relationship between communications and
electricity is available from Public Safety & Homeland Security
Bureau of the Federal Communications Commission. See http://www.fcc.gov/pshs/.
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C. EOP-006-2 System Restoration Coordination
23. Proposed Reliability Standard EOP-006-2, is intended to ensure
that plans are established and personnel are prepared to enable
effective coordination of the system restoration process to ensure
reliability is maintained during restoration. The Commission proposes
to approve EOP-006-2 as it addresses the Commission's directive in
Order No. 693 to ensure the reliability coordinator is involved in the
development and approval of system restoration plans.
24. Under proposed Reliability Standard EOP-005-2, Requirement R1.4
requires the transmission operator to indentify each Blackstart
Resource and its characteristics. Currently effective Reliability
Standard EOP-007-0 similarly requires the Regional Entity to maintain a
database of Blackstart Resources, but these requirements have no
counterpart in EOP-006-2. The Commission is concerned that the absence
of a counterpart to such a requirement in EOP-006-2 could deny the
Reliability Coordinator a potentially useful tool in maintaining
reliability. Since the reliability coordinator is responsible for
overall system awareness, the Commission invites comments as to why the
current EOP-007-0 requirement was not carried forward into proposed
Reliability Standard EOP-006-2 and whether it would be beneficial to
include a provision in EOP-006-2 that would require the reliability
coordinator to maintain a database of each Blackstart Resource within
its area.
25. While proposed EOP-005-2 Requirement R6 requires each
transmission operator to verify through analysis of actual events,
simulations or testing that its restoration plan accomplishes its
intended function, there is no similar requirement in proposed EOP-006-
2 regarding the reliability coordinator's restoration plan. The
Commission is concerned that the absence of a comparable verification
requirement may have a detrimental effect on the quality of Reliability
Coordinators' planning. Accordingly we seek comment on whether the same
or similar requirement (verification through actual events, steady
state and dynamic simulations or testing) should apply to reliability
coordinators.
26. Pursuant to proposed EOP-006-2 Requirements R5 and R5.1, the
reliability coordinators must review the restoration plans required of
transmission operators by EOP-005-2 and must approve or disapprove the
plans within 30 days of receipt. We are concerned that no clear
guidance is provided on how a transmission operator should handle a
situation where the reliability coordinator disapproves a transmission
operator's plan. Although the reliability coordinator is the final
authority, should there be a give and take with the transmission
operator whose restoration plan contains an element that the
reliability coordinator believes is incompatible with another
restoration plan? If neighboring transmission operators have
conflicting plans, how will the reliability coordinator determine which
plan needs to change? We invite comment on how a transmission operator
should proceed when a transmission operator's plan is rejected by a
reliability coordinator.
D. Withdrawal of EOP-007-0 and Retirement of EOP-009-0
27. The Commission proposes to allow NERC to withdraw pending
Reliability Standards EOP-007-0 and to retire EOP-009-0 because, as
explained by NERC, the requirements contained in those standards are
now included in proposed Reliability Standards EOP-005-2 and EOP-006-2.
E. Proposed Data Reporting Requirement
28. Given the importance of having effective blackstart and
restoration plans and well-trained personnel in place to address system
restoration events, the Commission proposes that the ERO collect data
on the performance of system restoration exercises conducted by
transmission operators and reliability coordinators. Results from
restoration exercises are typically maintained as evidence of
compliance but generally not shared with other entities or available
from a single source and thus are not available for others to learn
from. Accordingly, the collection of this data will assist the ERO and
Commission in identifying the effectiveness of restoration plans,
establishing best practices among transmission operators and
reliability coordinators, and determining the effects on personnel
performance. The ERO could, for example, use this information to
develop and disseminate ``lessons learned'' regarding black start
capability.
29. Thus, under section 39.2(d) of the Commission's regulations, we
propose to direct the ERO to gather data and establish a database that
can be accessed by transmission operators, reliability coordinators and
the Commission regarding transmission operator and reliability
coordinator system restoration drills, exercises and simulations. In
particular, we propose that the database should include: (1) The
duration of each drill, exercise and/or simulation; (2) the amount of
load considered lost at the beginning of the drill, exercise and/or
simulation; (3) the amount of load restored at the conclusion of the
event; (4) whether the drill, exercise and/or simulation was table top,
walk through simulation or computer simulation; (5) which entities
participated in the drill, exercise and/or simulation; and (6) whether
Blackstart Resources were used. Reliability coordinators, transmission
operators and the ERO will be able to use this data to identify the
effectiveness of restoration plans and to help identify improvements
that may be necessary or that could enhance restoration. The Commission
seeks comment on the proposed data collection including the benefits of
the information to be provided in the proposed collection, the types of
information proposed to be collected, and any potential burden of the
proposed collection.
[[Page 71630]]
F. Violation Risk Factors/Violation Security Levels
30. To determine a base penalty amount for a violation of a
Requirement within a Reliability Standard, NERC must first determine an
initial range for the base penalty amount. To do so, NERC assigns a
violation risk factor to each Requirement and sub-Requirement of a
Reliability Standard that relates to the expected or potential impact
of a violation of the Requirement on the reliability of the Bulk-Power
System. The Commission has established guidelines for evaluating the
validity of each violation risk factor assignment.\25\
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\25\ See North American Electric Reliability Corp., 119 FERC ]
61,145, order on reh'g, 120 FERC ] 61,145, at P 8-13 (2007)
(Violation Risk Factor Rehearing Order). The guidelines are: (1)
Consistency with the conclusions of the Blackout Report; (2)
consistency within a Reliability Standard; (3) consistency among
Reliability Standards; (4) consistency with NERC's definition of the
violation risk factor level; and (5) treatment of requirements that
co-mingle more than one obligation.
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31. NERC also will assign each Requirement and sub-Requirement one
of four violation severity levels--low, moderate, high, and severe--as
measurements for the degree to which the Requirement was violated in a
specific circumstance. On June 19, 2008, the Commission issued an order
establishing four guidelines for the development of violation severity
levels.\26\
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\26\ North American Electric Reliability Corp., 123 FERC ]
61,284, at P 20-35 (Violation Severity Level Order), order on reh'g
& compliance, 125 FERC ] 61,212 (2008). The guidelines provide that
VSL assignments should: (1) Not lower the current level of
compliance; (2) ensure uniformity and consistency in the
determination of penalties; (3) be consistent with the corresponding
requirement; and (4) be based on a single violation.
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32. With respect to proposed Reliability Standards EOP-005-2 and
EOP-006-2, NERC proposes to assign violation risk factors only to the
main Requirements and did not propose violation risk factors for any of
the sub-Requirements.\27\ NERC noted that such practice is consistent
with NERC's August 10, 2009 Informational Filing Regarding the
Assignment of violation risk factors and violation severity levels.\28\
With respect to proposed Reliability Standard EOP-001-1, NERC proposes
to carry forward the violation risk factors and violation severity
levels currently assigned to the existing Reliability Standard EOP-001-
0.
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\27\ We note that in Version Two Facilities Design, Connections
and Maintenance Reliability Standards, Order No. 722, 126 FERC ]
61,255, at P 45 (2009), the ERO proposed to develop violation risk
factors and violation severity levels for Requirements but not sub-
requirements. The Commission denied the proposal as ``premature''
and, instead, encouraged the ERO to ``develop a new and
comprehensive approach that would better facilitate the assignment
of violation severity levels and violation risk factors.'' As
directed, on March 5, 2010, NERC submitted a comprehensive approach
that is currently pending with the Commission in Docket No. RR08-4-
005.
\28\ NERC Petition at 22.
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33. On May 5, 2010, NERC incorporated by reference into Docket No.
RR08-4-005,\29\ its August 10, 2009 information filing in which NERC
proposes assigning violation risk factors and violation severity levels
only to the main Requirements in each Reliability Standard, and not to
the sub-Requirements. Because the violation risk factors and violation
severity levels for proposed Reliability Standards EOP-001-1, EOP-005-
2, and EOP-006-2 are affected by the NERC's pending petition, we
propose to defer discussion on the proposed violation risk factors and
violation severity levels assigned to EOP-001-1, EOP-005-2, and EOP-
006-2 until after we act on NERC's petition in Docket No. RR08-4-005.
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\29\ Docket No. RR08-4-005 comprises NERC's March 5, 2010
Violation Severity Level Compliance Filing submitted in response to
Order No. 722. See Order No. 722, 126 FERC ] 61,255 at P 45.
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G. Summary
34. We propose to approve proposed Reliability Standards EOP-001-1,
EOP-005-2 and EOP-006-2 as well as the definition of the term
``Blackstart Resource'' as just, reasonable, not unduly discriminatory
or preferential, and in the public interest. We also seek comment from
the ERO and other interested entities regarding the Commission's
specific concerns discussed above. The Commission may determine after
considering such comments that it is appropriate to direct the ERO,
under section 215(d)(5) of the FPA, to develop additional modifications
to proposed EOP-005-2 and EOP-006-2. We also propose to approve the
retirement of the currently effective Reliability Standards EOP-001-0,
EOP-005-1, EOP-006-1, and EOP-009-0 as well as the definition of
``Blackstart Capability Plan'' which are superseded by the proposed
Reliability Standards EOP-001-1, EOP-005-2, and EOP-006-2, and we also
propose to allow NERC to withdraw the pending Reliability Standard EOP-
007-0.
IV. Information Collection Statement
35. The Office of Management and Budget (OMB) regulations require
approval of certain information collection requirements imposed by
agency rules.\30\ Upon approval of a collection(s) of information, OMB
will assign an OMB control number and an expiration date. 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. The
Paperwork Reduction Act \31\ requires each federal agency to seek and
obtain OMB approval before undertaking a collection of information
directed to ten or more persons, or continuing a collection for which
OMB approval and validity of the control number are about to
expire.\32\
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\30\ 5 CFR 1320.11.
\31\ 44 U.S.C. 3501-20.
\32\ 44 U.S.C. 3502(3)(A)(i), 44 U.S.C. 3507(a)(3).
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36. The Commission is submitting these reporting and recordkeeping
requirements to OMB for its review and approval under section 3507(d)
of the Paperwork Reduction Act. Comments are solicited on the
Commission's need for this information, whether the information will
have practical utility, the accuracy of provided burden estimates, ways
to enhance the quality, utility, and clarity of the information to be
collected, and any suggested methods for minimizing the respondent's
burden, including the use of automated information techniques.
37. This Notice of Proposed Rulemaking (NOPR), proposes to approve
three new Reliability Standards, EOP-001-1, EOP-005-2 and EOP-006-2
governing system restoration from blackstart, which standards will
replace currently effective Reliability Standards EOP-001-0, EOP-005-1,
EOP-006-1, and EOP-009-0 as well as pending Reliability Standard EOP-
007-0, all of which the Commission addressed in Order No. 693. Rather
than creating entirely new blackstart requirements, the proposed
Reliability Standards EOP-005-2 and EOP-006-2 instead consolidate and
upgrade the overall quality of the existing Reliability Standards
governing blackstart planning, testing and training and ensure enhanced
coordination of the Bulk-Power System restoration process. Thus, this
proposed rulemaking does not impose entirely new burdens on the
effected entities. For example, the currently effective restoration
Reliability Standards require transmission operators to create,
maintain and test restoration plans and train personnel in those plans.
Similarly, reliability coordinators are currently required to a have a
role in coordinating system restoration and in focusing on restoration
of the Interconnection, and generation owners and operators are
currently required to test and report the results of the start up and
operation of blackstart generating units. Accordingly, the requirements
imposed by proposed
[[Page 71631]]
Reliability Standards EOP-005-2 and EOP-006-2 are more specific but not
necessarily more expansive than currently effective EOP Reliability
Standards addressing restoration requirements. However, the
Commission's proposal that the ERO gather and report data on the
performance of system restoration exercises does enlarge the duties
placed on the affected entities.
38. Public Reporting Burden: Our estimate below regarding the
number of respondents is based on the NERC compliance registry as of
September 28, 2010. According to the registry, there are 26 reliability
coordinators and 176 transmission operators that would be involved in
providing information. However, under NERC's compliance registration
program, entities may be registered for multiple functions, so there is
some double counting involved in these numbers. Proposed EOP-006-2
requires the reliability coordinator to conduct two system restoration
drills, exercises or simulations per calendar year involving
transmission operators and generation operators. Depending on the scope
of the drill, exercise or simulation, certain transmission operators or
generation operators may not be required to provide data to the
reliability coordinator in any given year. Proposed reliability
Standard EOP-005-2 requires generator operators with Blackstart
Resources who have not already done so to document in writing both the
terms of their blackstart arrangements with their transmission operator
and their procedures for energizing a bus. The registry indicates there
are 773 generator operators, but we estimate of these the requirements
will apply to 230. Lastly, EOP-005-2 requires transmission owners and
distribution providers whose field switching personnel have unique
tasks under a restoration plan to provide two hours of training every
two years. The registry shows a net 678 entities that might be required
to carry out such training as a result of these Reliability Standards.
Given these parameters, the Commission estimates that the Public
Reporting burden for the requirements contained in this NOPR is as
follows:
--------------------------------------------------------------------------------------------------------------------------------------------------------
Number of
Data collection Number of annual Hours per respondent Total annual hours
respondents responses
--------------------------------------------------------------------------------------------------------------------------------------------------------
FERC-725A:
Reliability coordinators 26 1 Reporting: 8............................ Reporting: 208.
reporting data to NERC on Recordkeeping: 8........................ Recordkeeping: 208.
annual basis.
Transmission operators reporting 176 1 Compliance: 116......................... Compliance: 20,416.
data to their reliability Recordkeeping: 16....................... Recordkeeping: 2,816.
coordinator and reducing
blackstart arrangements to
writing.
Generator operator system 230 1 80...................................... 18,400.
restoration responsibilities
including testing and
maintaining records.
Transmission owner and 678 1 8....................................... 5,424.
distribution provider training
and recordkeeping.
-------------------------------------------------------------------------------------------------------------------
Total....................... .............. .............. ........................................ 47,472.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Information Collection Costs: The Commission seeks comments on the
costs to comply with these requirements and recordkeeping burden
associated with the proposed Reliability Standards.
Total Annual hours for Collection: (Reporting/Compliance +
recordkeeping) = hours.
Reporting/Compliance = 44,448 hours @ $132/hour =
$5,867,136.
Recordkeeping = 3,024 hours @ $17/hour = $51,408.
Total Cost = $5,918,544.
Title: Mandatory Reliability Standards for the Bulk-Power
System.
Action: Proposed Collection of Information.
OMB Control No: 1902-0244.
Respondents: Business or other for profit, and/or not for
profit institutions.
Frequency of Responses: Annually.
Necessity of the Information: This proposed rule would
approve revised Reliability Standards that modify the existing
requirement for system restoration from a blackstart. The proposed
Reliability Standards require some entities to commit agreements or
understandings to writing and/or draft written procedures. Other
entities may have to produce and maintain training materials. A
proposed directive to those Reliability Standards would require
entities to report annually to the ERO who will in turn report to the
Commission regarding transmission operator and reliability coordinator
system restoration drills, exercises and simulations.
Internal review: The Commission has reviewed the
requirements pertaining to the proposed Reliability Standards for the
Bulk-Power System and determined that the proposed requirements are
necessary to meet the statutory provisions of the Energy Policy Act of
2005. These requirements conform to the Commission's plan for efficient
information collection, communication and management within the energy
industry. The Commission has assured itself, by means of internal
review, that there is specific, objective support for the burden
estimates associated with the information requirements.
39. Interested persons may obtain information on the reporting
requirements by contacting: Federal Energy Regulatory Commission, 888
First Street, NE., Washington, DC 20426 [Attention: Ellen Brown, Office
of the Executive Director, Phone: (202) 502-8663, fax: (202) 273-0873,
e-mail: [email protected]]. Comments on the requirements of this
order may also be sent to the Office of Information and Regulatory
Affairs, Office of Management and Budget, Washington, DC 20503
[Attention: Desk Officer for the Federal Energy Regulatory Commission].
For security reasons, comments should be sent by e-mail to OMB at
[email protected]. Please reference 1902-0244 and the docket
number of this proposed rulemaking in your submission.
V. Environmental Analysis
40. 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.\33\ The
actions proposed here fall within the categorical exclusion in the
Commission's regulations for rules that are clarifying, corrective or
procedural, for information
[[Page 71632]]
gathering, analysis, and dissemination.\34\ Accordingly, neither an
environmental impact statement nor environmental assessment is
required.
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\33\ Regulations Implementing the National Environmental Policy
Act, Order No. 486, 52 FR 47897 (Dec. 17, 1987), FERC Stats. & Regs.
] 30,783 (1987).
\34\ 18 CFR 380.4(a)(5).
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VI. Regulatory Flexibility Act Analysis
41. The Regulatory Flexibility Act of 1980 (RFA) \35\ generally
requires a description and analysis of final rules that will have
significant economic impact on a substantial number of small entities.
Many of the entities, i.e., reliability coordinators, transmission
operators, generation operators, transmission owners and distribution
providers identified in the transmission operator's restoration plan,
to which the requirements of this rule would apply do not fall within
the definition of small entities,\36\ but most transmission owners and
most distribution providers would be deemed small entities. The
proposed Reliability Standards clarify the elements of restoration
plans and training requirements and give reliability coordinators a
greater role in review and approval of plans, but the proposed
Reliability Standards reflect primarily a continuation of existing
system restoration requirements currently applicable to reliability
coordinators, transmission operators and generation operators.
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\35\ 5 U.S.C. 601-12.
\36\ The RFA definition of ``small entity'' refers to the
definition provided in the Small Business Act (SBA), which defines a
``small business concern'' as a business that is independently owned
and operated and that is not dominant in its field of operation. See
15 U.S.C. 632. According to the SBA, a small electric utility is
defined as one that has a total electric output of less than four
million MWh in the preceding year.
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42. Based on available information regarding NERC's compliance
registry, and our best assessment of the application of the proposed
Reliability Standards, approximately 1,110 entities will be responsible
for compliance with proposed Reliability Standards EOP-005-2 and EOP-
006-2, of which approximately 678 are transmission owners and
distribution providers not already subject to the existing system
restoration Reliability Standards. Of the 678 transmission owners and
distribution providers, only that subset whose field switching
personnel are identified in the restoration plan as having unique tasks
will be subject to a new requirement under the proposed standards,
i.e., providing two hours of system restoration training every two
calendar years to such personnel. The Commission estimates that this
requirement will impose a cost of perhaps $1,056 per year on
transmission owners and distribution providers, and indeed for some
entities there will be no additional cost because field personnel are
already being trained in restoration tasks and therefore should not
present significant operating costs. Based on the foregoing, the
Commission certifies that this proposed Reliability Standard will not
have a significant impact on a substantial number of small entities.
43. Based on this understanding, the Commission certifies that this
rule will not have a significant economic impact on a substantial
number of small entities. Accordingly, no regulatory flexibility
analysis is required.
VII. Comment Procedures
44. 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 January 24, 2011. Comments must refer to
Docket No. RM10-16-000, and must include the commenter's name, the
organization they represent, if applicable, and their address in their
comments.
45. Commenters may submit comments, identified by Docket No. RM10-
16-000 and in accordance with the requirements posted on the
Commission's Web site, http://www.ferc.gov. Comments may be submitted
by any of the following methods:
Agency Web Site: Documents created electronically using
word processing software should be filed in native applications or
print-to-PDF format, and not in a scanned format, at http://www.ferc.gov/docs-filing/efiling.asp.
Mail/Hand Delivery: Commenters unable to file comments
electronically must mail or hand deliver their comments to: Federal
Energy Regulatory Commission, Secretary of the Commission, 888 First
Street, NE., Washington, DC 20426. These requirements can be found on
the Commission's Web site, see, e.g., the ``Quick Reference Guide for
Paper Submissions,'' available at http://www.ferc.gov/docs-filing/efiling.asp or via phone from FERC Online Support at 202-502-6652 or
toll-free at 1-866-208-3676.
46. 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
47. 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.
48. From FERC's Home Page on the Internet, this information is
available on eLibrary. The full text of this document is available on
eLibrary 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.
49. User assistance is available for eLibrary and the FERC's Web
site during normal business hours from FERC Online Support at 202-502-
6652 (toll free at 1-866-208-3676) or e-mail at
[email protected], or the Public Reference Room at (202) 502-
8371, TTY (202)502-8659. E-mail the Public Reference Room at
[email protected].
By direction of the Commission.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2010-29569 Filed 11-23-10; 8:45 am]
BILLING CODE 6717-01-P