[Federal Register Volume 76, Number 56 (Wednesday, March 23, 2011)]
[Rules and Regulations]
[Pages 16277-16285]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-6739]
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DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
18 CFR Part 40
[Docket No. RM10-16-000; Order No. 749]
System Restoration Reliability Standards
AGENCY: Federal Energy Regulatory Commission, DOE.
ACTION: Final rule.
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SUMMARY: Under section 215 of the Federal Power Act, the Commission
approves three Emergency Operations and Preparedness (EOP) Reliability
Standards, EOP-001-1 (Emergency Operations Planning), EOP-005-2 (System
Restoration from Blackstart Resources), and EOP-006-2 (System
Restoration Coordination) as well as the definition of the term
``Blackstart Resource'' submitted to the Commission for approval by the
North American Electric Reliability Corporation (NERC), the Electric
Reliability Organization certified by the Commission. The approved
Reliability Standards require transmission operators, generation
operators, and certain transmission owners and distribution providers
to ensure that plans, facilities and personnel are prepared to enable
system restoration from Blackstart Resources and require reliability
coordinators to establish plans and prepare personnel to enable
effective coordination of the system restoration process. The
Commission also approves the NERC's proposal to retire four existing
EOP Reliability Standards and a definition that are replaced by the
Standards and definition approved in this Final Rule.
DATES: Effective Date: This rule will become effective May 23, 2011.
FOR FURTHER INFORMATION CONTACT:
Terence Burke (Legal Information), Office of the General Counsel,
Federal Energy Regulatory Commission, 888 First Street, NE.,
Washington, DC 20426, (202) 502-6498.
David O'Connor (Technical Information), Office of Electric Reliability,
Division of Reliability Standards, Federal Energy Regulatory
[[Page 16278]]
Commission, 888 First Street, NE., Washington, DC 20426, (202) 502-
6695.
SUPPLEMENTARY INFORMATION:
Before Commissioners: Jon Wellinghoff, Chairman; Marc Spitzer,
Philip D. Moeller, John R. Norris, and Cheryl A. LaFleur.
Final Rule
Issued March 17, 2011.
1. Under section 215 of the Federal Power Act (FPA),\1\ the
Commission approves three Emergency Operations and Preparedness (EOP)
Reliability Standards, EOP-001-1 (Emergency Operations Planning), EOP-
005-2 (System Restoration from Blackstart Resources), and EOP-006-2
(System Restoration Coordination) as well as the definition of the term
``Blackstart Resource'' submitted to the Commission for approval by the
North American Electric Reliability Corporation (NERC), the Electric
Reliability Organization (ERO) certified by the Commission. The
approved Reliability Standards require transmission operators,
generation operators, and certain transmission owners and distribution
providers to ensure that plans, facilities, and personnel are prepared
to enable system restoration from Blackstart Resources and require
reliability coordinators to establish plans and prepare personnel to
enable effective coordination of the system restoration process. The
Commission also approves NERC's proposal to retire four existing EOP
Reliability Standards and the defined term ``Blackstart Capability
Plan'' concurrent with the effectiveness of the Standards and the term
Blackstart Resource approved in this Final Rule. In those jurisdictions
where regulatory approval is required, Reliability Standard EOP-001-1
will not become effective until the first day of the first calendar
quarter three months after regulatory approval is obtained, and EOP-
005-2 and EOP-006-2 approved in this Final Rule will not become
effective until 24 months after the first day of the first quarter
after applicable regulatory approval.
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\1\ 16 U.S.C. 824o.
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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. * *
*''
3. In Order No. 693, the Commission determined that it would not
take action on certain proposed Reliability Standards that required
supplemental information from a Regional Entity. Such Reliability
Standards refer to regional criteria or procedures that had 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 Reliability
Standards approved herein provide a standardized, 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 approve the
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 (Apr. 4, 2007), FERC Stats. & Regs. ]
31,242, at P 297, order on reh'g, Order No. 693-A, 120 FERC ] 61,053
(2007).
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I. Background
4. On March 16, 2007, the Commission issued Order No. 693,
approving 83 of the 107 Reliability Standards filed by NERC,\3\
including the Reliability Standards: EOP-001-0, EOP-005-1, EOP-006-1,
and EOP-009-0.\4\ 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.\5\ 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,
pending Standard EOP-007-0, and necessitate a conforming change in EOP-
001-0.
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\3\ Id. P 304-1899.
\4\ Id. P 542-676.
\5\ Id. P 644.
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A. Currently Effective EOP Reliability Standards
Reliability Standard EOP-005-1
5. 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 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
identifies time frames for training and review of restoration plan
requirements to simulate contingencies and prepare operators for
anticipated and unforeseen events.\6\ The Commission also directed the
ERO to consider various commenters' suggestions in future revisions of
the Reliability Standard.\7\
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\6\ Id. P 630.
\7\ Id. P 628.
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Reliability Standard EOP-006-1
6. 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 they have a
coordinating role 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.\8\
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\8\ Id. P 638.
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Pending Reliability Standard EOP-007-0
7. 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 pending NERC's
providing additional information.\9\ The Commission, however, directed
the ERO to consider various commenters' suggestions relating to
assigning compliance obligations directly to the entities that provide
the pertinent data rather than to the Regional Entity, placing
responsibility for the regional blackstart plan with the reliability
coordinator, recognizing that nuclear units have no blackstart
capability, revising the definition of a blackstart unit, and
committing arrangements for coordinating blackstart capability to
contracts.\10\
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\9\ Id. P 297, 644.
\10\ Id. P 642-643, 647.
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Reliability Standard EOP-009-0
8. Currently effective Reliability Standard EOP-009-0 deals with
implementing and documenting testing
[[Page 16279]]
of blackstart generating units. In Order No. 693, 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 that NERC should consolidate the Reliability Standard
with EOP-007-0.\11\
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\11\ Id. P 674, 676.
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B. NERC Petition
9. In a December 31, 2009 filing (NERC Petition),\12\ NERC requests
Commission approval of its proposed definition of the term ``Blackstart
Resource'' and proposed Reliability Standards EOP-001-1 (Emergency
Operating Planning),\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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\12\ North American Electric Reliability Corp., Dec. 31, 2009
Petition for Approval of Three Emergency Preparedness and Operations
Reliability Standards and One New Glossary Term and for Retirement
of Five Existing Reliability Standards and One Glossary Term. The
three Reliability standards are included as Exhibit A to NERC's
Petition. In addition, under 18 CFR 40.3 of the Commission's
regulations, all Commission-approved Reliability Standards are
available on NERC's Web site at http://www.nerc.com/page.php?cid=2|20. See 18 CFR 40.3.
\13\ Concurrent with its filing in this Docket, NERC filed a
petition in Docket No. RM10-15-000 seeking approval of certain
Interconnection Reliability Operations and Coordination (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. In this Final Rule,
the Commission is addressing Version 2 of EOP-001 contained in
Exhibit B of the NERC Petition which reflects both the IRO and the
EOP proposed changes.
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10. 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\
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\14\ NERC Petition at 4.
\15\ Id. at 5.
\16\ Id.
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Proposed Definition of Blackstart Resource
11. 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 are replaced with proposed
Reliability Standards EOP-005-2 and EOP-006-2.
Proposed Reliability Standard EOP-001-1
12. 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
Requirement R3.4, which requires transmission operators and balancing
authorities to develop, maintain and implement restoration plans,
because proposed Reliability Standards 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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Proposed Reliability Standard EOP-005-2
13. 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
through 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. Proposed Reliability
Standard EOP-005-2 is intended to supersede all of currently effective
Reliability Standard EOP-005-1.
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\18\ Reliability Standard EOP-005-2, Section A.4. (Purpose).
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Proposed Reliability Standard EOP-006-2
14. Proposed Reliability Standard EOP-006-2 contains ten
requirements with the stated purpose of ensuring that 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
[[Page 16280]]
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 neighboring
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 of receipt by the reliability
coordinator. Requirement R6 requires that the reliability coordinator
must maintain copies of restoration plans in its primary and backup
control rooms. Requirements R7 and R8 describe the roles of reliability
coordinators to coordinate restoration efforts and authorize re-
synchronization of ``island'' areas. Requirements R9 and R10 address
training and participation in annual drills, exercises and simulations.
Proposed Reliability Standard EOP-006-2 is intended to supersede all of
currently effective Reliability Standard EOP-006-1.
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\19\ Reliability Standard EOP-006-2, Section A.3. (Purpose).
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C. Notice of Proposed Rulemaking
15. On November 17, 2010, the Commission issued its Notice of
Proposed Rulemaking (NOPR) proposing to approve the three proposed EOP
Reliability Standards, EOP-001-1, EOP-005-2, and EOP-006-2 and defined
term Blackstart Resource (and the retirement of the four superseded
standards, EOP-001-0, EOP-005-1, EOP-006-1, and EOP-009-0, the
definition of ``Blackstart Capability Plan,'' and the ERO's withdrawal
of EOP-007-0).\20\ With respect to proposed Reliability Standard EOP-
005-2, the NOPR proposed to direct NERC to modify the Standard to
address the Commission's concern regarding the periodic testing of
telecommunication facilities needed to implement restoration plans. In
addition, the Commission sought comment on: (i) What is intended by the
term ``unique tasks'' as used in the context of proposed Requirement
R11 of EOP-005-2; (ii) whether guidance should be provided regarding
the term, and if so, how it should be provided; and (iii) whether those
tasks should be indentified in each transmission operator's restoration
plan. With respect to proposed Reliability Standard EOP-006-2, the NOPR
sought comment as to why the Standard does not require reliability
coordinators to maintain a database of Blackstart Resources as is
required of Regional Entities under currently effective EOP-007-0 and
whether such a requirement would be beneficial. The NOPR also sought
comment on: (i) Whether reliability coordinators should be required to
verify their restoration planning through actual events, steady state
and dynamic simulations or testing; and (ii) how a transmission
operator should proceed when its restoration plan is rejected by a
reliability coordinator. Lastly, the NOPR proposed that the ERO collect
data on the performance of system restoration exercises conducted by
transmission operators and reliability coordinators to assist the ERO
and Commission in identifying the effectiveness of restoration plans,
establishing best practices, and determining the effects on personnel
performance.
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\20\ System Restoration Reliability Standards, Notice of
Proposed Rulemaking, 75 FR 71625 (Nov. 24, 2010), FERC Stats. &
Regs. ] 32,666 (2010).
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16. In response to the NOPR, comments were filed by nine interested
parties.\21\ These comments assisted us in the evaluation of the NERC's
proposal. In the discussion below, we address the issues raised by
these comments.
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\21\ NERC, The Edison Electric Institute (EEI), American Public
Power Association (APPA), the ISO/RTO Council (IRC), Pacificorp,
City of Santa Clara, California (Santa Clara), Bonneville Power
Administration (BPA), and NorthWestern Corporation (NorthWestern)
filed comments. Wisconsin Electric Power Company filed supporting
EEI's comments.
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II. Discussion
A. Approval of Proposed Reliability Standards
17. In the NOPR, the Commission proposed to approve the three EOP
Reliability Standards and the glossary term filed by NERC in this
proceeding. None of the nine interested parties filing comments to the
NOPR objects to such an approval. For the reasons described below, the
Commission adopts the NOPR proposal and approves Reliability Standards
EOP-001-1, EOP-005-2, and EOP-006-2 as well as the proposed glossary
term ``Blackstart Resource'' as just, reasonable, not unduly
discriminatory or preferential, and in the public interest.\22\ EOP-
005-2 and EOP-006-2 clarify the responsibilities of the reliability
coordinator and transmission operator in the restoration process and
restoration planning and address the Commission's directives in Order
No. 693 related to the EOP Standards. By enhancing the rigor of the
restoration planning process, the Reliability Standards represent an
improvement from the current Standards and will improve the reliability
of the Bulk-Power System. The Commission is not directing any
modifications to the three new Reliability Standards. Nevertheless, as
discussed below, commenters raised several issues for consideration, at
the time these standards are next revisited, which we believe could
improve these new Reliability Standards. The Commission also approves
NERC retiring the 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 withdrawing pending Reliability
Standard EOP-007-0 concurrent with the effectiveness of the EOP-001-1,
EOP-005-2, and EOP-006-2 and the definition of the term ``Blackstart
Resource.''
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\22\ 16 U.S.C. 824o(d)(2).
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B. Vagueness of Term ``Unique Tasks''
18. Requirement R11 of EOP-005-2 requires that a minimum of two
hours of system restoration training be provided every two years to
field switching personnel performing ``unique tasks'' associated with
the transmission operator's restoration plan. In the NOPR, the
Commission expressed concern that the applicable entities may not
understand what the term ``unique tasks'' means. We requested comment
on what is intended by that term and on whether guidance should be
provided to the transmission operators, transmission owners, and
distribution providers who are responsible for providing training. In
addition, the NOPR sought comment as to whether the unique tasks should
be identified in each transmission operator's restoration plan.
Comment
19. NERC comments that the term ``unique tasks'' is not intended to
have any meaning beyond the dictionary definition of the words.
Everyday tasks of field switching personnel are not considered unique,
but tasks not included in the person's normal duties (e.g., operation
of a synchroscope) would be considered unique. NERC and APPA do not
perceive a reliability benefit in requiring identification of unique
tasks in restoration plans. NERC acknowledges that it could promote the
development of guidance to aid entities in complying with Requirement
R11.
20. EEI comments that while it would be difficult to define
``unique tasks'' in a manner that could be broadly applied to affected
entities, the standards drafting team believed that the term was
clearly understood as a practical matter. Companies should be afforded
discretion to determine how the term is defined within their
restoration plans, but, to the extent that compliance issues arise, EEI
would encourage NERC to consider developing compliance
[[Page 16281]]
guidance as needed. IRC also believes the term is generally understood
by the applicable entities and that it is appropriate for each
transmission operator's restoration plan to identify the particular
tasks for which training is required.
21. APPA states that the diversity of entities and their specific
approaches to system restoration prevented the standard drafting team
from developing guidance on the term but agrees that registered
entities could benefit from a best practices document that provides
examples of unique tasks.
22. Santa Clara comments that a one-size-fits-all definition would
not be helpful, and the affected entities should define unique tasks on
a case-by-case basis. It agrees that unique tasks should be included
within the transmission operator's restoration plan. Pacificorp
comments that training should be provided to field switching personnel
performing any restoration tasks associated with implementing the
transmission operator's restoration plan. Addressing each sub-
Requirement of Requirement R1 would provide an appropriate framework
for a system restoration training program. Pacificorp and NorthWestern
oppose additional guidance or requirements in the Standard. BPA, on the
other hand, is unsure what is intended by the term ``unique tasks'' and
supports a specific definition to avoid any ambiguity.
Commission Determination
23. Based on NERC's comment that the term ``unique tasks'' is to be
understood in accordance with the normal meaning of the words and the
majority of the commenters' assertions that the variety of approaches
to system restoration precludes greater specificity, we find that the
term conveys as much precision as circumstances allow. To the extent
that it would be helpful to the affected entities to specify in a
transmission operator's restoration plan which tasks are deemed unique,
the entities are encouraged to do so, but the Commission does not
require such specificity at this time.
24. Both EEI and APPA recognize potential benefit in the
development of further guidance as to the term ``unique tasks,'' and
BPA is uncertain as to the meaning of the term and consequently unsure
as to how to demonstrate compliance with its training obligation. NERC,
in its comments about the term, states that it ``could promote the
development of a guideline to aid registered entities in complying with
Requirement R11.''\23\ The Commission notes that this Reliability
Standard will not become effective for at least 24 months, during which
time ambiguities in language or differences of opinion among affected
entities may be resolved in practical ways. Once the Standard is
effective, if industry determines that ambiguity with the term arises,
it would be appropriate for NERC to consider its proposal to develop a
guideline to aid entities in their compliance obligations.
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\23\ NERC at 4-5.
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C. Telecommunication Facility Testing
25. Requirement R5 of Reliability Standard EOP-005-1 provides for
periodic testing of telecommunication facilities needed to implement
restoration plans, but this Requirement has no counterpart in EOP-005-
2. In the NOPR, the Commission proposed requiring the ERO to develop a
modification to EOP-005-2 to address the Commission's concern that
entities involved in system restoration ensure restoration-specific
telecommunications equipment, phone lists, and protocols are tested as
part of ongoing restoration preparedness. The Commission further stated
its concern that, in light of the importance of communication to the
restoration process, testing should be done more frequently than during
annual drills, exercises or simulations as is required under
Reliability Standard EOP-005-1.
Comments
26. Each of the commenters opposes adding a telecommunications
requirement to EOP-005-2 on the basis that such a requirement would be
redundant given Communications Reliability Standard COM-001-1.1, which
requires testing of routine communication facilities on an on-going
basis. Several comments noted that duplicative requirements can lead to
potential confusion.
Commission Determination
27. Reliability Standard COM-001-1 does not apply to generation
operators or distribution providers.\24\ Further, we do not accept that
each entity whose telecommunications facilities will be needed during
the system restoration process is currently subject to COM-001-1.1
Requirement R2 which provides that ``[e]ach Reliability Coordinator,
Transmission Operator and Balancing Authority shall manage, alarm, test
and/or actively monitor vital telecommunications facilities. Special
attention shall be given to emergency telecommunications facilities and
equipment not used for routine communications.''
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\24\ Order No. 693, FERC Stats. & Regs. ] 31,242 at P 478-493.
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28. NERC notes in its comments that the Reliability Coordination
Standard Drafting Team is currently working on Project 2006-06 to
develop a set of revisions to Reliability Standard COM-001-1.1 to
tighten requirements relating to communication capabilities. The
Commission believes the objectives of this project in managing,
alarming, testing and/or actively monitoring vital primary and
emergency telecommunication facilities will close this gap in the
Reliability Standard after it is completed and approved. Accordingly,
consistent with NERC's comments on its current project and concerns not
to create redundancy in development of Reliability Standards, NERC
should close the gap in the applicability of the draft COM-001-2 so it
addresses generation operators and distribution providers.
D. Emergency Operations Planning
29. Reliability Standard EOP-005-2 requires each transmission
operator to identify each blackstart resource and its characteristics,
but this requirement has no counterpart for reliability coordinators in
EOP-006-2. The Commission expressed concern and invited comment in the
NOPR on whether the absence of a required list of its Blackstart
Resources could deny the reliability coordinator a potentially useful
tool in maintaining reliability.
Comments
30. NERC notes that the transmission operator, not the reliability
coordinator, maintains direct contact with the blackstart resources,
and reliability coordinators have sufficient authority to request
information needed to identify blackstart resources should such
information be required. NERC, EEI, IRC, and APPA do not believe a
requirement to maintain a database of blackstart resources would
improve reliability. Santa Clara, however, requests that the Commission
direct NERC to revise Requirement R2 of Reliability Standard EOP-005-2
to specify that transmission operators provide copies of their
restoration plans to those entities included in the plan within 60 days
of the plan's approval by the appropriate reliability coordinator to
ensure that resources identified in the plan are capable of complying
with the plan.
Commission Determination
31. Since a reliability coordinator obtains copies of all its
constituent transmission operators' restoration plans and has the
ability to obtain
[[Page 16282]]
information regarding the identity and characteristics of blackstart
resources from its transmission operators, we agree there is no
reliability need for it to maintain a duplicative database. With regard
to Santa Clara's request, we believe that the determination whether
resources in a restoration plan are capable of complying with the plan
is made during the transmission operator's development of its plan as
required by Requirement R1, not once the plan is approved by the
reliability coordinator. For this reason, we do not see a need to
direct the modification to Requirement R2 that Santa Clara requests.
E. System Restoration Coordination
32. Reliability Standard EOP-005-2 requires each transmission
operator to verify that its restoration plan achieves its intended
function. There is no similar requirement in EOP-006-2 regarding the
reliability coordinator's restoration plan. The Commission sought
comment on whether the same or a similar requirement should apply to
reliability coordinators. In addition, the Standard also requires
reliability coordinators to approve, or disapprove with written
reasons, the restoration plans of each of their constituent
transmission operators. The Commission invited comment as to how a
transmission operator should proceed when its restoration plan is
rejected by a reliability coordinator.
Comments
33. NERC, EEI, and IRC comment that a reliability coordinator's
restoration plan is essentially a compilation of the restoration plans
of its constituent transmission operators. Given that EOP-005-2
requires transmission operators to verify their restoration plans and
that EOP-006-2 requires reliability coordinators to conduct system
restoration drills with their constituent transmission operators and
generation owners, requiring further verification of the same plans by
the reliability coordinator would be duplicative and not provide
additional reliability benefit.
34. With respect to how a transmission operator should proceed when
its reliability coordinator rejects its restoration plan, NERC states
that when a restoration plan is rejected by a reliability coordinator,
the reliability coordinator is required to supply one or more reasons
for its rejection, and the transmission operator should then be able to
re-submit a revised plan. NERC does not believe it is necessary to
document this process in additional requirements since the dialogue
between the two entities is no different than the routine coordination
that normally occurs between the transmission operator and its
reliability coordinator. EEI, APPA, and IRC agree that there is no need
for additional procedures to be spelled out.
35. IRC, BPA, and Santa Clara all comment that the reliability
coordinator should be the final authority to resolve conflicts. Santa
Clara nevertheless states that if the transmission operator and
reliability coordinator cannot resolve their differences because the
transmission operator believes compliance with the reliability
coordinator's decision is infeasible, the transmission operator should
be allowed to appeal either to the Regional Entity or, in the case of
the Western Interconnect, the dispute should be brought to NERC.
36. EEI observes that the two-year implementation period for these
Standards will likely provide sufficient time to resolve any
differences in order for a reliability coordinator to approve a
transmission operator's initial restoration plan. Any subsequent
rejection of a revised restoration plan will not result in a
reliability gap since the initial plan will remain in place. EEI
further notes that any rejection of a restoration plan by a reliability
coordinator will necessarily be based on generic reliability
engineering criteria readily understood by the transmission operator.
Pacificorp, on the other hand, notes that the requirement that the
reliability coordinator give stated reasons for any disapproval of a
submitted restoration plan does not ensure the reasons will specify the
circumstances under which a transmission operator should revise its
plan. Pacificorp states that a reliability coordinator must have formal
criteria for reviewing, approving and disapproving restoration plans
and standard procedures for those plans to be revised and resubmitted
for review. Pacificorp also suggest a modification to Requirement R5 to
provide that a transmission operator's submitted restoration plan shall
be deemed approved if the reliability coordinator fails to approve or
disapprove the plan within the required 30 days.
Commission Determination
37. We accept the commenters' position that requiring verification
of the reliability coordinators' restoration plan through a requirement
in EOP-006-2 would be largely duplicative. As commenters point out,
Reliability Standard EOP-006-2 requires reliability coordinators to
conduct system restoration drills including their constituent
transmission operators and generation owners. Such drills, exercises or
simulations, together with the verifications carried out by the
transmission operators of their restoration plans and approval of their
plans by the reliability coordinators under EOP-005-2, serve as
verification of the reliability coordinators' plans and as such, should
serve to identify difficulties in a reliability coordinator's
restoration plan.
38. We agree with EEI that the basis on which a reliability
coordinator rejects a restoration plan will necessarily be based on
generic engineering criteria easily understood by the transmission
operator. We also agree with those commenters who reaffirm that the
ultimate arbiter of coordination and compatibility of transmission
operators' restoration plans is the reliability coordinator. For these
reasons, we do not see a need to direct modifications as Pacificorp and
Santa Clara suggest that could circumvent the reliability coordinator's
authority concerning the approval or disapproval of a restoration plan.
However, we agree with Pacificorp that Reliability Standard EOP-006-2,
which establishes requirements to enable coordinated system restoration
and ensure reliability is maintained during system restoration, is not
the appropriate place to include any specific criteria or procedures
for the review and revision of transmission operators' restoration
plans. We recognize that documenting such criteria and procedures may
have utility in facilitating the settlement of disagreements when a
reliability coordinator rejects a transmission operator's restoration
plan. Nonetheless, we leave it to the ERO Reliability Standard
development process to determine whether the merit is sufficient to
compel the development of such criteria or procedures.
F. Data Reporting
39. Given the importance of effective blackstart and restoration
plans and well-trained personnel, the NOPR proposed that the ERO
collect data on the performance of system restoration exercises and
make such data available to transmission operators, reliability
coordinators and the Commission. This data could then be used to
identify the effectiveness of restoration plans and help identify
improvements to enhance restoration. The Commission sought comment on
the proposed data collection.
Comments
40. NERC notes that formal debriefings are held after each required
[[Page 16283]]
drill and is unclear whether there would be any additional reliability
benefit arising from the data collection contemplated in the NOPR. EEI
proposes that companies should be allowed to gather experience on the
new requirements before undertaking data collection efforts and points
out that the North American Transmission Forum (NATF) would be an
appropriate venue for discussions on the efficacy of various training
experiences. BPA and NorthWestern also cite NATF as an appropriate
venue to share best practices. BPA views its restoration information as
extremely sensitive and perceives risk that such information could fall
into the wrong hands.
41. NERC, EEI, APPA, Pacificorp, and NorthWestern question the
reliability benefit of creating such a database compared to the burden
it would impose on the industry. NERC asks whether developing such a
database would direct industry resources where they can best serve
reliability. IRC does not see the value of the proposed data gathering,
but notes section 1600--Requests for Data or Information of NERC's
Rules of Procedure \25\ could be an appropriate means of collecting
data without creating an ongoing requirement.
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\25\ North American Electric Reliability Corporation, Rules of
Procedure 85-87 (2011), available at http://www.nerc.com/files/NERC_Rules_of_Procedure_ EFFECTIVE_ 20110101.pdf.
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Commission Determination
42. The Commission agrees with NERC that the formal debriefing of
system restoration drills, exercises and simulations can capture
lessons learned and identify best practices. But lessons learned in
such debriefings are not necessarily communicated to all who might
benefit from them. In addition, the Commission understands that NATF
may be an appropriate forum to discuss industry activity and best
practices, but we continue to believe that there would be a reliability
benefit in the ERO aggregating and disseminating lessons learned
derived from restoration drills, exercises and simulations.
Nevertheless, we will allow the industry to develop some experience
with the new Reliability Standards and then review whether or not to
pursue this matter under section 39.2(d) of the Commission's
regulations and the use of Requests for Data or Information under
section 1600 of NERC's Rules of Procedure or through some other means.
G. Violation Risk Factors/Violation Severity Levels
43. In the NOPR, the Commission proposed deferring action on the
proposed violation risk factors (VRF) and violation severity levels
(VSL) for the proposed Reliability Standards until the Commission acts
on NERC's pending petition in Docket No. RR08-4-005, in which NERC
proposes a ``roll-up'' approach for VRF and VSL assignments by which
NERC would only assign VRF and VSL to the main requirements and not to
sub-Requirements.\26\ Subsequent to the NOPR, on December 1, 2010, NERC
made a compliance filing to the Commission in Docket No. RR08-04-006
submitting new VSL to supersede those presented in the NERC Petition.
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\26\ Docket No. RR08-4-005 comprises NERC's March 5, 2010
Violation Severity Level Compliance Filing submitted in response to
Order No. 722 and an August 10, 2009 informational filing in which
NERC proposes assigning VRF and VSL only to the main Requirements in
each Reliability Standard and not to the sub-requirements.
---------------------------------------------------------------------------
Commission Determination
44. No comments were received regarding this matter. Accordingly,
the Commission will defer discussion on the proposed violation risk
factors and violation severity levels assigned to EOP-005-2 and EOP-
006-2 until after the Commission issues a final order acting on NERC's
petition in Docket No. RR08-4-005 and Docket No. RR08-4-006.
III. Information Collection Statement
45. The following collections of information contained in this
Reliability Standard have been submitted to the Office of Management
and Budget (OMB) for review under section 3507(d) of the Paperwork
Reduction Act of 1955.\27\ OMB's regulations require OMB to approve
certain information collection requirements imposed by agency rule.\28\
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\27\ 44 U.S.C. 3507(d).
\28\ 5 CFR 1320.11.
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46. The Commission solicited comments on the need for and the
purpose of the information contained in these three Emergency
Operations and Performance Reliability Standards and the corresponding
burden to implement them. The commission received comments on its
proposed data reporting requirement regarding the performance of system
restoration exercises which we address in this Final Rule. The
Commission has not directed any modifications to the Requirements in
the three Reliability Standards being approved. As a result of this
Final Rule the annual burden will increase by an estimated 47,472
hours. This is a reduction from the burden estimates provided in the
NOPR, with respect to reporting data to NERC; however, we have not
similarly reduced the estimated time expended by reliability
coordinators on recordkeeping in order to better reflect their enhanced
involvement in the planning process.
47. Burden Estimate: The estimated burden and for the requirements
in this Final Rule follow:
--------------------------------------------------------------------------------------------------------------------------------------------------------
Number of
Number of annual
FERC-725A data collection respondents responses per Hours per respondent per response Total annual hours
respondent
(A) (B) (C)..................................... (A x B x C)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Reliability Coordinators data 26 2 Recordkeeping: 8........................ Recordkeeping: 416.
retention.
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 distribution 678 1 8....................................... 5,424.
provider training and recordkeeping.
-------------------------------------------------------------------------------------------------------------------
Total........................... .............. .............. ........................................ 47,472 hours.
--------------------------------------------------------------------------------------------------------------------------------------------------------
[[Page 16284]]
Total Estimated Annual Hours for Collection: (Reporting/
Compliance + recordkeeping) = 47,472 hours.
Reporting/Compliance = 44,240 hours @ $132/hour =
$5,839,680.
Recordkeeping = 3,232 hours @ $17/hour = $54,944.
Total Cost = $5,894,624.
Title: Mandatory Reliability Standards for the Bulk-Power
System.
Action: FERC 725A, Proposed Modification to FERC-725A.
OMB Control No: 1902-0244.
Respondents: Business or other for profit, and/or not for
profit institutions.
Frequency of Responses: On occasion.
Necessity of the Information: This Final 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 to draft written procedures, and
retain records. Other entities may have to produce and maintain
training materials.
48. 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, e-mail: [email protected], Phone: (202)
502-8663, fax: (202) 273-0873]. 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 OMB Control Number 1902-
0244 and the docket number of this rulemaking in your submission.
IV. Environmental Analysis
49. 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.\29\ The
action taken in the Final Rule falls within the categorical exclusion
in the Commission's regulations for rules that are clarifying,
corrective or procedural, for information gathering, analysis, and
dissemination.\30\ Accordingly, neither an environmental impact
statement nor an environmental assessment is required.
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\29\ Regulations Implementing the National Environmental Policy
Act, Order No. 486, 52 FR 47897 (Dec. 17, 1987), FERC Stats. &
Regs., Regulations Preambles 1986-1990 ] 30,783 (1987).
\30\ 18 CFR 380.4(a)(5).
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V. Regulatory Flexibility Act
50. The Regulatory Flexibility Act of 1980 (RFA) \31\ 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.\32\
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.\33\
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\31\ 5 U.S.C. 601-12.
\32\ 13 CFR 121.101.
\33\ 13 CFR 121.201, Sector 22, Utilities & n. 1.
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51. Many of the entities to which the requirements of this rule
would apply do not fall within the definition of small entities, 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.
52. 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 only de minimis additional cost because field
personnel are already being trained in restoration tasks) and therefore
should not present significant operating costs.
53. 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.
VI. Document Availability
54. 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.
55. 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.
56. 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].
VII. Effective Date and Congressional Notification
57. These regulations are effective May 23, 2011. The Commission
notes that although the determinations made in this Final Rule are
effective May 23, 2011 in those jurisdictions where regulatory approval
is required, Reliability Standard EOP-001-1 will not become effective
until the first day of the first calendar quarter three months after
regulatory approval is obtained, and EOP-005-2 and EOP-006-2 approved
in this Final Rule will not become effective until 24 months
[[Page 16285]]
after the first day of the first quarter after applicable regulatory
approval. The Commission has determined, with the concurrence of the
Administrator of the Office of Information and Regulatory Affairs of
OMB, that this rule is not a ``major rule'' as defined in section 351
of the Small Business Regulatory Enforcement Fairness Act of 1996.
By the Commission.
Kimberly D. Bose,
Secretary.
[FR Doc. 2011-6739 Filed 3-22-11; 8:45 am]
BILLING CODE 6717-01-P