[Federal Register Volume 76, Number 80 (Tuesday, April 26, 2011)]
[Proposed Rules]
[Pages 23222-23225]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-10010]
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DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
18 CFR Part 40
[Docket No. RM10-29-000]
Electric Reliability Organization Interpretation of Transmission
Operations Reliability
AGENCY: Federal Energy Regulatory Commission.
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 the North
American Electric Reliability Corporation's (NERC's) proposed
interpretation of Reliability Standard, TOP-001-1, Requirement R8.
DATES: Comments are due June 27, 2011.
ADDRESSES: You may submit comments, identified by docket number 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:
Electronic Submission: 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 an original copy of 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:
Robert T. Stroh (Legal Information), Office of the General Counsel,
Federal Energy Regulatory Commission, 888 First Street, NE.,
Washington, DC 20426, Telephone: (202) 502-8473.
Eugene Blick (Technical Information), Office of Electric Reliability,
Federal Energy Regulatory Commission, 888 First Street, NE.,
Washington, DC 20426, Telephone: (202) 502-8066.
David O'Connor (Technical Information), Office of Electric Reliability,
Federal Energy Regulatory Commission, 888 First Street, NE.,
Washington, DC 20426, Telephone: (202) 502-6695.
SUPPLEMENTARY INFORMATION: Before Commissioners: Jon Wellinghoff,
Chairman; Marc Spitzer, Philip D. Moeller, John R. Norris, and Cheryl
A. LaFleur.
Notice of Proposed Rulemaking (Issued April 21, 2011)
1. Under section 215 of the Federal Power Act (FPA),\1\ the Federal
Energy Regulatory Commission (Commission) proposes to approve the North
American Electric Reliability Corporation's (NERC's) proposed
interpretation of Requirement R8 in Commission-approved NERC
Reliability Standard TOP-001-1 -- Reliability Responsibilities and
Authorities.\2\ The Commission proposes to approve the interpretation
as discussed below.
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\1\ 16 U.S.C. 824o (2006).
\2\ The Commission is not proposing any new or modified text to
its regulations. As provided in 18 CFR part 40, proposed
interpretation of a Reliability Standard will not become effective
until approved by the Commission, and the ERO must post on its Web
site each effective Reliability Standard.
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I. Background
2. Section 215 of the FPA requires a Commission-certified Electric
Reliability Organization (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.
3. Pursuant to section 215 of the FPA, the Commission established a
process to select and certify an ERO \3\ and, subsequently, certified
NERC as the ERO.\4\ On March 16, 2007, the Commission issued Order No.
693, approving 83 of the 107 Reliability Standards filed by NERC,
including Reliability Standard TOP-001-1.\5\
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\3\ Rules Concerning Certification of the Electric Reliability
Organization; and Procedures for the Establishment, Approval and
Enforcement of Electric Reliability Standards, Order No. 672, FERC
Stats. & Regs. ] 31,204, order on reh'g, Order No. 672-A, FERC
Stats. & Regs. ] 31,212 (2006).
\4\ North American Electric Reliability Corp., 116 FERC
61,062, order on reh'g & compliance, 117 FERC ] 61,126
(2006), aff'd sub nom., Alcoa, Inc. v. FERC, 564 F.3d 1342 (DC Cir.
2009).
\5\ Mandatory Reliability Standards for the Bulk-Power System,
Order No. 693, FERC Stats. & Regs. ] 31,242, order on reh'g, Order
No. 693-A, 120 FERC ] 61,053 (2007).
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4. NERC's Rules of Procedure provide that a person that is
``directly and materially affected'' by Bulk-Power System reliability
may request an interpretation of a Reliability Standard.\6\ The ERO's
``standards process manager'' will assemble a team with relevant
expertise to address the requested interpretation and also form a
ballot pool. NERC's Rules provide that, within 45 days, the team will
draft an interpretation of the Reliability Standard, with subsequent
balloting. If approved by ballot, the interpretation is appended to the
Reliability Standard and filed with the applicable regulatory authority
for regulatory approval.
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\6\ NERC Rules of Procedure, Appendix 3A, Reliability Standards
Development Procedure, Version 6.1, at 27-29 (2010).
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A. Reliability Standard TOP-001-1
5. Reliability Standard TOP-001-1 (Reliability Responsibilities and
Authorities) centers on the responsibilities of balancing authorities
and transmission operators during a system emergency. Specifically, the
stated purpose of Reliability Standard TOP-001-1 is to ensure
reliability entities have clear decision-making authority and
capabilities to take appropriate actions or direct the actions of
others to return the transmission
[[Page 23223]]
system to normal conditions during an emergency. Requirement R8 of the
standard provides:
During a system emergency, the Balancing Authority and
Transmission Operator shall immediately take action to restore the
Real and Reactive Power Balance. If the Balancing Authority or
Transmission Operator is unable to restore Real and Reactive Power
Balance it shall request emergency assistance from the Reliability
Coordinator. If corrective action or emergency assistance is not
adequate to mitigate the Real and Reactive Power Balance, then the
Reliability Coordinator, Balancing Authority, and Transmission
Operator shall implement firm load shedding.\7\
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\7\ Reliability Standard TOP-001-1, Requirement R8.
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B. NERC Proposed Interpretation
6. NERC submitted its petition for approval for an interpretation
of Requirement R8 in Commission-approved Reliability Standard TOP-001-1
on July 16, 2010. Consistent with the NERC Rules of Procedure, NERC
states that it assembled a team to respond to the request for
interpretation and presented the proposed interpretation to industry
ballot, using a process similar to the process it uses for the
development of Reliability Standards.\8\ According to NERC, the
interpretation was developed and approved by industry stakeholders
using the NERC Reliability Standards Development Procedure and approved
by the NERC Board of Trustees (Board). In the NERC Petition, NERC
explains that it received a request from Florida Municipal Power Pool
(FMPP) seeking an interpretation of Reliability Standard TOP-001-1,
Requirement R8. Specifically, FMPP requested clarification on several
aspects of Requirement R8. FMPP asked the following:
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\8\ NERC Reliability Standards Development Procedure at 27-29.
Balancing real power is not a function of a [Transmission
Operator] and balancing reactive power is not a function of a
[Balancing Authority]. For Requirement R8 is the Balancing Authority
responsibility to immediately take corrective action to restore Real
Power Balance and is the [Transmission Operator] responsibility to
immediately take corrective action to restore Reactive Power
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Balance? \9\
\9\ NERC Petition at 5.
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7. In response to FMPP's interpretation request, NERC provided the
following:
The answer to both questions is yes. According to the NERC
Glossary of Terms Used in Reliability Standards, the Transmission
Operator is responsible for the reliability of its ``local''
transmission system, and operates or directs the operations of the
transmission facilities. Similarly, the Balancing Authority is
responsible for maintaining load-interchange-generation balance,
i.e., real power balance. In the context of this requirement, the
Transmission Operator is the functional entity that balances
reactive power. Reactive power balancing can be accomplished by
issuing instructions to the Balancing Authority or Generator
Operators to alter reactive power injection. Based on NERC
Reliability Standard BAL-005-1b Requirement R6, the Transmission
Operator has no requirement to compute an Area Control Error (ACE)
signal or to balance real power. Based on NERC Reliability Standard
VAR-001-1 Requirement R8, the Balancing Authority is not required to
resolve reactive power balance issues. According to TOP-001-
Requirement R3, the Balancing Authority is only required to comply
with Transmission Operator or Reliability Coordinator instructions
to change injections of reactive power.\10\
\10\ Id. at 5-6
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8. NERC contends that the interpretation is consistent with the
stated purpose of the Reliability Standard, which is to ensure
reliability entities have clear decision-making authority and
capabilities to take appropriate actions or direct the actions of
others to return the transmission system to normal conditions during an
emergency. NERC adds that the interpretation clarifies the
responsibilities of balancing authorities and transmission operators
during a system emergency by referencing the NERC Glossary of Terms
Used in Reliability Standards as well as other relevant Reliability
Standards.\11\
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\11\ Id. at 6.
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9. On February 14, 2011, NERC made a supplemental filing in
response to a Commission staff data request.\12\ With regard to whether
Requirement R8 obligates a joint response in a system emergency, NERC
explained that Requirement R8 does not use the word ``joint'' or
otherwise infer joint responsibility during system emergencies. Rather,
NERC responded that the balancing authority and transmission operator
have separate responsibilities to restore real and reactive power
balance during system emergencies. NERC also stated that the use of
``and'' between the two entities should not construe communication or
coordination. NERC added that the Blackout Report \13\ correctly
identifies communication and coordination issues as reliability issues
and that communication and coordination are addressed in the
Communications (COM) Reliability Standards.\14\
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\12\ Response of the North American Electric Reliability
Corporation to Request for Additional Information Regarding
Interpretation to Reliability Standard TOP-001-1, Requirement R8
(NERC Response).
\13\ Final Report on the August 14, 2003 Blackout in the United
States and Canada (Blackout Report).
\14\ NERC Response at 4-7.
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II. Proposed Determination
10. We propose to approve NERC's interpretation of Reliability
Standard TOP-001-1, Requirement R8. We believe that the ERO has
presented a reasonable interpretation consistent with the language of
the Reliability Standard. In addition, as discussed below, we note that
a balancing authority and transmission operator each have coordination
and communication functions that are necessary for maintaining real and
reactive power balance.
Discussion
11. We propose to approve NERC's interpretation of TOP-001-1,
Requirement R8. As explained by NERC, the interpretation supports the
stated purpose of the Reliability Standard, i.e., ensuring that
reliability entities have clear decision-making authority and
capabilities to take appropriate actions or direct the actions of
others to return the transmission system to normal conditions during an
emergency.\15\ The interpretation also clarifies the responsibilities
of a balancing authority and transmission operator during a system
emergency. Further, the language is consistent with the language of the
requirement. Accordingly, the Commission proposes to approve the ERO's
interpretation of TOP-001-1, Requirement R8.
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\15\ Id. at 6.
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12. We agree, as discussed in the interpretation, that the
balancing authority is responsible for restoring real power balance
during a system emergency and the transmission operator is responsible
for restoring reactive power balance during a system emergency.
However, during a system emergency, communication and coordination
between the transmission operator and balancing authority can be
essential to restore real and reactive power balance. For example,
during an emergency, the balancing authority may rely on the real power
output of a generator to fulfill its responsibility, while the
transmission operator may expect the same generator unit to reduce real
power to generate greater reactive power output.\16\
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\16\ The Blackout Report described such a scenario, explaining
that a generator unit tripped because the unit's protection system
detected the Var output, i.e., reactive power, exceeded the unit's
capability. Blackout Report at 27. The Blackout Report also
explained that no generator units were asked to reduce their real
power output to produce more reactive power. Id. at 47.
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[[Page 23224]]
13. NERC acknowledges the need for such communication and
coordination. NERC maintains that this coordination and communication
is required through two currently-effective Communication (COM)
Reliability Standards: (1) COM-001-1.1-Telecommunications and (2) COM-
002-2--Communication and Coordination.\17\
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\17\ NERC Response at 6-7. NERC also identifies several ongoing
Reliability Standards projects that are intended to strengthen the
requirements around communication and coordination between
functional entities.
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14. We agree with NERC that the currently effective COM Reliability
Standards provide for such communication and coordination. For example,
Reliability Standard COM-002-2, Requirement R1 provides that
transmission operators, balancing authorities and generator operators
must have communication links with one another and must be staffed to
address a real-time emergency. Reliability Standard EOP-001-0,
Requirements R3, R4.3 and R7 also contain provisions relevant to such
communication and coordination in emergencies. These provisions require
balancing authorities and transmission operators to develop plans to
mitigate operating emergencies including coordination among adjacent
transmission operators and balancing authorities.
15. Accordingly, for the reasons discussed above, we propose to
approve NERC's proposed interpretation of TOP-001-1, Requirement R8.
III. Information Collection Statement
16. The Office of Management and Budget (OMB) regulations require
that OMB approve certain reporting and recordkeeping requirements
(collections of information) imposed by an agency.\18\ The information
contained here is also subject to review under section 3507(d) of the
Paperwork Reduction Act of 1995.\19\
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\18\ 5 CFR 1320.11.
\19\ 44 U.S.C. 3507(d).
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17. As stated above, the Commission approved, in Order No. 693,
Reliability Standard TOP-001-1 that is the subject of the current
rulemaking. This proposed rulemaking proposes to approve the
interpretation of the previously approved Reliability Standard, which
was developed by NERC as the ERO. The proposed interpretation, as
clarified, relates to an existing Reliability Standard, and the
Commission does not expect it to affect entities' current reporting
burden.\20\ Accordingly, we will submit this proposed rule to OMB for
informational purposes only.
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\20\ See Order No. 693, FERC Stats. & Regs. ] 31,242 at P 1901-
1907.
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18. For the purposes of reviewing this interpretation, the
Commission seeks information concerning whether the interpretation will
affect respondents' burden or cost.
Title: Mandatory Reliability Standards for the Bulk-Power System.
Action: FERC-725A.
OMB Control No.: 1902-0244.
Respondents: Businesses or other for-profit institutions; not-for-
profit institutions.
Frequency of Responses: On Occasion.
19. Necessity of the Information: This proposed rule would approve
the proposed interpretation of Reliability Standard, TOP-001-1,
Requirement R8. The proposed rule would find the interpretation just,
reasonable, not unduly discriminatory or preferential, and in the
public interest. The TOP-001-1 Reliability Standard helps ensure the
reliable operation of the North American Bulk-Power System by ensuring
``reliability entities have clear decision-making authority and
capabilities to take appropriate actions or direct the actions of
others to return the transmission system to normal conditions during an
emergency.'' \21\
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\21\ The purpose of Standard TOP-001-1, according to the NERC
Web site at http://www.nerc.com/files/TOP-001-1.pdf.
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20. Interested persons may obtain information on the reporting
requirements by contacting the following: Federal Energy Regulatory
Commission, 888 First Street, NE., Washington, DC 20426 [Attention:
Ellen Brown, Office of the Executive Director, e-mail:
[email protected], Phone: (202) 502-8663, fax: (202) 273-0873].
For submitting comments concerning the collection of information
and the associated burden estimate, please submit your comments to FERC
and 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, phone: (202) 395-7345,
fax: (202) 395-7285]. Due to security concerns, comments should be sent
electronically to the following e-mail address at OMB: oira
[email protected]. Please refer to OMB Control No. 1902-0244, and
the docket number of this proposed rule in your submission.
IV. Environmental Analysis
21. 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.\22\ The
Commission has categorically excluded certain actions from this
requirement as not having a significant effect on the human
environment. Included in the exclusion are rules that are clarifying,
corrective, or procedural or that do not substantially change the
effect of the regulations being amended.\23\ The actions proposed
herein fall within this categorical exclusion in the Commission's
regulations.
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\22\ Order No. 486, Regulations Implementing the National
Environmental Policy Act, 52 FR 47897 (Dec. 17, 1987), FERC Stats. &
Regs. Preambles 1986-1990 ] 30,783 (1987).
\23\ 18 CFR 380.4(a)(2)(ii).
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V. Regulatory Flexibility Act
22. The Regulatory Flexibility Act of 1980 (RFA) \24\ generally
requires a description and analysis of final rules that will have
significant economic impact on a substantial number of small entities.
The RFA mandates consideration of regulatory alternatives that
accomplish the stated objectives of a proposed rule and that minimize
any significant economic impact on a substantial number of small
entities. The Small Business Administration's (SBA) Office of Size
Standards develops the numerical definition of a small business.\25\
The SBA has established a size standard for electric utilities, stating
that a firm is small if, including its affiliates, it is primarily
engaged in the transmission, generation and/or distribution of electric
energy for sale and its total electric output for the preceding twelve
months did not exceed four million megawatt hours.\26\ The RFA is not
implicated by this proposed rule because the interpretations discussed
herein will not have a significant economic impact on a substantial
number of small entities.
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\24\ 5 U.S.C. 601-612.
\25\ 13 CFR 121.101.
\26\ 13 CFR 121.201, Section 22, Utilities, & n.1.
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23. The Commission approved Reliability Standard TOP-001-1 in 2007
in Order No. 693. The proposed rulemaking in the immediate docket
addresses an interpretation of Requirement R8 of previously-approved
TOP-001-1. The proposed interpretation clarifies current compliance
obligations of balancing authorities and transmission operators and
therefore, does not create an additional regulatory impact on small
entities.
VI. Comment Procedures
24. The Commission invites interested persons to submit comments on
the matters and issues proposed in this
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notice to be adopted, including any related matters or alternative
proposals that commenters may wish to discuss. Comments are due 60 days
from publication in the Federal Register. Comments must refer to Docket
No. RM10-29-000, and must include the commenter's name, the
organization they represent, if applicable, and their address in their
comments.
25. The Commission encourages comments to 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. Documents created electronically using word processing
software should be filed in native applications or print-to-PDF format
and not in a scanned format. Commenters filing electronically do not
need to make a paper filing.
26. 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.
27. 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.
VII. Document Availability
28. 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.
29. 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.
30. 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 the Commission.
Kimberly D. Bose,
Secretary.
[FR Doc. 2011-10010 Filed 4-25-11; 8:45 am]
BILLING CODE 6717-01-P