
[Federal Register Volume 75, Number 227 (Friday, November 26, 2010)]
[Rules and Regulations]
[Pages 72664-72679]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-29717]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

18 CFR Part 40

[Docket No. RM09-25-000; Order No. 742]


System Personnel Training Reliability Standards

Issued November 18,http://www.nerc.com/page.php?cid=2|20 2010.
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 two Personnel Performance, Training and Qualifications (PER) 
Reliability Standards, PER-004-2 (Reliability Coordination--Staffing) 
and PER-005-1 (System Personnel Training), submitted to the Commission 
for approval by the North American Electric Reliability Corporation, 
the Electric Reliability Organization certified by the Commission. The 
approved Reliability Standards require reliability coordinators, 
balancing authorities, and transmission operators to establish a 
training program for their system operators, verify each of their 
system operators' capability to perform tasks, and provide emergency 
operations training to every system operator. The Commission also 
approves NERC's proposal to retire two existing PER Reliability 
Standards that are replaced by the standards approved in this Final 
Rule.

DATES: Effective Date: This rule will become effective January 25,http://www.nerc.com/page.php?cid=2|20 2011.

FOR FURTHER INFORMATION CONTACT: Karin L. Larson (Legal Information), 
Office of the General Counsel, Federal Energy Regulatory Commission, 
888 First Street, NE., Washington, DChttp://www.nerc.com/page.php?cid=2|20 20426, (http://www.nerc.com/page.php?cid=2|202) 502-8236. Kenneth U. 
Hubona (Technical Information), Office of Electric Reliability, 
Division of Reliability Standards, Federal Energy Regulatory 
Commission, 1800 Dual Highway, Suitehttp://www.nerc.com/page.php?cid=2|20 201, Hagerstown, MD 21740, (301) 
665-1608.

SUPPLEMENTARY INFORMATION: Before Commissioners: Jon Wellinghoff, 
Chairman; Marc Spitzer, Philip D. Moeller, John R. Norris, and Cheryl 
A. LaFleur.
    1. Under section 215 of the Federal Power Act (FPA),\1\ the 
Commission approves two Personnel Performance, Training and 
Qualifications (PER) Reliability Standards, PER-004-2 (Reliability 
Coordination--Staffing) and PER-005-1 (System Personnel Training), 
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 reliability coordinators, balancing authorities, and 
transmission operators to establish a training program for their system 
operators, verify each of their system operators' capability to perform 
tasks, and provide emergency operations training to every system 
operator. The Commission also approves NERC's proposal to retire two 
existing PER Reliability Standards that are replaced by the standards 
approved in this Final Rule.
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    \1\ 16 U.S.C. 824o.
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I. Background

    2. On March 16,http://www.nerc.com/page.php?cid=2|20 2007, the Commission issued Order No. 693, 
approving 83 of the 107 Reliability Standards filed by NERC,\2\ 
including the four PER Reliability Standards: PER-001-0, PER-002-0, 
PER-003-0, and PER-004-1.\3\ In addition, in Order No. 693, under 
section 215(d)(5) of the FPA, the Commission directed NERC to develop 
modifications to the PER Reliability Standards to address certain 
issues identified by the Commission. At issue in the immediate 
proceeding are two new PER Reliability Standards that would replace the 
currently effective

[[Page 72665]]

Reliability Standards PER-002-0 (Operating Personnel Training) and PER-
004-1 (Reliability Coordination--Staffing).
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    \2\ Mandatory Reliability Standards for the Bulk-Power System, 
Order No. 693, 72 FR 16416 (Apr. 4,http://www.nerc.com/page.php?cid=2|20 2007), FERC Stats. & Regs. ] 
31,242, order on reh'g, Order No. 693-A, 1http://www.nerc.com/page.php?cid=2|20 FERC ] 61,053 (http://www.nerc.com/page.php?cid=2|2007).
    \3\ Order No. 693, FERC Stats. & Regs. ] 31,242 at P 1330-1417.
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Currently Effective Reliability Standard PER-002-0

    3. Currently effective Reliability Standard PER-002-0 requires each 
transmission operator and balancing authority to be staffed with 
adequately trained operating personnel.\4\ Specifically, PER-002-0: (1) 
Directs each transmission operator and balancing authority to have a 
training program for all operating personnel who occupy positions that 
either have primary responsibility, directly or through communication 
with others, for the real-time operation of the Bulk-Power System or 
who are directly responsible for complying with the NERC Reliability 
Standards; (2) lists criteria that must be met by the training program; 
and (3) requires that operating personnel receive at least five days of 
training in emergency operations each year using realistic 
simulations.\5\
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    \4\ Id. P 1331.
    \5\ Reliability Standard PER-002-0.
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    4. In Order No. 693, the Commission directed NERC, pursuant to 
section 215(d)(5) of the FPA, to develop the following modifications to 
PER-002-0: (1) Identify the expectations of the training for each job 
function; (2) develop training programs tailored to each job function 
with consideration of the individual training needs of the personnel; 
(3) expand the applicability of the training requirements to include: 
reliability coordinators, local transmission control center operator 
personnel, generator operators centrally-located at a generation 
control center with a direct impact on the reliable operation of the 
Bulk-Power System, and operations planning and operations support staff 
who carry out outage planning and assessments and those who develop 
system operating limits (SOL), interconnection reliability operating 
limits (IROL), or operating nomograms for real-time operations; (4) use 
a systematic approach to training methodology for developing new 
training programs; and (5) include the use of simulators by reliability 
coordinators, transmission operators, and balancing authorities that 
have operational control over a significant portion of load and 
generation.\6\
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    \6\ Order No. 693, FERC Stats. & Regs. ] 31,242 at P 1393.
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    5. In Order No. 693, the Commission also directed the ERO to 
determine whether it is feasible to develop meaningful performance 
metrics associated with the effectiveness of a training program 
required by currently effective Reliability Standard PER-002-0 and to 
consider whether personnel who support Energy Management System (EMS) 
applications should be included in mandatory training pursuant to the 
Reliability Standard.\7\
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    \7\ Id. P 1394.
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Currently Effective Reliability Standard PER-004-1

    6. In Order No. 693, the Commission also approved Reliability 
Standard PER-004-1.\8\ This Reliability Standard requires each 
reliability coordinator to be staffed with adequately trained, NERC-
certified operators, 24 hours a day, seven days a week. Further, PER-
004-1 requires reliability coordinator operating personnel to have a 
comprehensive understanding of the area of the Bulk-Power System for 
which they are responsible.
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    \8\ Id. P 1417.
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NERC Petition

    7. In a September 30,http://www.nerc.com/page.php?cid=2|20 2009 filing (NERC Petition),\9\ NERC requests 
Commission approval of proposed Reliability Standards PER-005-1 (System 
Personnel Training) and PER-004-2 (Reliability Coordination--Staffing), 
which were developed in response to the Commission's directives in 
Order No. 693 regarding currently effective Reliability Standard PER-
002-0.\10\ NERC seeks to concurrently retire currently effective 
Reliability Standards PER-002-0 and PER-004-1 upon the effective date 
of the two new Reliability Standards.
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    \9\ North American Electric Reliability Corp., Sept. 30,http://www.nerc.com/page.php?cid=2|20 2009 
Petition for Approval of Proposed Reliability Standards Regarding 
System Personnel Training (NERC Petition). The two PER Reliability 
Standards are included as Exhibit A to NERC's Petition. In addition, 
pursuant to section 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[bond]http://www.nerc.com/page.php?cid=2|20. See 18 CFR. 
40.3.
    \10\ NERC's Petition addresses only the directives in Order No. 
693 related to existing Reliability Standard PER-002-0, not the 
directives related to PER-004-1. See NERC Petition at 27.
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    8. NERC states that the proposed Reliability Standards ``are a 
significant improvement over the existing Reliability Standards'' and 
recommends Commission approval of the standards as a ``significant step 
in strengthening the quality of operator training programs as necessary 
for the reliability of the [B]ulk-[P]ower [S]ystem.'' \11\
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    \11\ NERC Petition at 5.
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Reliability Standard PER-005-1

    9. The stated purpose of Reliability Standard PER-005-1 is to 
ensure system operators performing real-time, reliability-related tasks 
on the North American bulk electric system are competent to perform 
those reliability-related tasks.\12\ Reliability Standard PER-005-1 
applies to reliability coordinators, balancing authorities, and 
transmission operators.\13\ Reliability Standard PER-005-1 contains 
three main requirements:
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    \12\ Reliability Standard PER-005-1, Section A.3 (Purpose).
    \13\ The responsible entities subject to PER-005-1 include: 
Reliability coordinators, balancing authorities and transmission 
operators as those entities are defined in the Glossary of Terms 
Used in NERC Reliability Standards, Aprilhttp://www.nerc.com/page.php?cid=2|20 20,http://www.nerc.com/page.php?cid=2|20 2010, available at 
http://www.nerc.com/page.php?cid=2|2010Aprilhttp://www.nerc.com/page.php?cid=2|20.pdf">http://www.nerc.com/docs/standards/rs/Glossary_of_Terms_http://www.nerc.com/page.php?cid=2|2010Aprilhttp://www.nerc.com/page.php?cid=2|20.pdf.

     Requirement R1 mandates the use of a systematic 
approach to training for both new and existing training programs. 
The requirement further requires applicable entities to create a 
company-specific, reliability-related task list relevant to Bulk-
Power System operation and to design and develop learning objectives 
and training materials based on the task list performed by its 
System Operators each calendar year. Finally, the requirement 
mandates the training be delivered and the training program be 
evaluated on at least an annual basis to assess its effectiveness.
     Requirement R2 requires the verification of a System 
Operator's ability to perform the tasks identified in Requirement 
R1. The requirement also mandates re-verification of a System 
Operator's ability to perform the tasks within a specified time 
period when program content is modified.
     Requirement R3 identifies the number of hours of 
emergency operations training (at least 32 hours) that a System 
Operator is required to obtain every twelve months. The requirement 
further identifies those entities required to use simulation 
technology such as a simulator, virtual technology, or other 
technology in their emergency operations training programs.\14\
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    \14\ NERC Petition at 8-9.

Proposed Reliability Standard PER-005-1 is a new Reliability Standard 
that is intended to supersede all of currently effective Reliability 
Standard PER-002-0 as well as Requirements R2, R3, and R4 of currently 
effective Reliability Standard PER-004-1.

Proposed Reliability Standard PER-004-2

    10. Proposed Reliability Standard PER-004-2 modifies PER-004-1 by 
deleting Requirements R2, R3, and R4, as these three Requirements are 
incorporated into proposed PER-005-1. Proposed Reliability Standard 
PER-004-2 simply carries forward, unchanged, the remaining provisions 
from currently effective PER-004-1, including the associated violation 
risk factor and violation severity level assignments.

[[Page 72666]]

Notice of Proposed Rulemaking

    11. On June 17,http://www.nerc.com/page.php?cid=2|20 2010, the Commission issued its Notice of Proposed 
Rulemaking (NOPR) proposing to approve the two proposed PER Reliability 
Standards, PER-004-2 and PER-005-1 (and to retire the two superseded 
standards, PER-002-0 and PER-004-1).\15\ With respect to Reliability 
Standard PER-005-1, the NOPR proposed to direct NERC to: (1) Modify 
PER-005-1 to explicitly require training for local transmission control 
center personnel, and (2) to evaluate the feasibility of developing 
meaningful performance metrics to evaluate the effectiveness of PER-
005-1. In addition, in the NOPR, the Commission sought clarification 
from NERC and/or industry comments on several specific aspects of 
proposed Reliability Standard PER-005-1, including: (1) Whether three 
specific training requirements are carried over from PER-004-1 to PER-
005-1 and are enforceable as part of the systematic approach to 
training umbrella; (2) whether PER-005-1, R1.2, through the systematic 
approach to training, adequately requires entities to develop training 
programs tailored to each job function with consideration of the 
individual training needs of the personnel; (3) whether PER-005-1, R3.1 
requires the use of simulators specific to an operator's own system and 
if not, whether it is feasible or practical to mandate the use of 
simulators that are specific to the operator's system; (4) whether the 
proposed two- and three-year lead time prior to certain Requirements in 
PER-005-1 become effective are necessary and the feasibility of 
staggering the retirement of currently effective Reliability Standards 
PER-002-0 and PER-004-1; and (5) whether it is feasible for NERC to 
complete the standards development project to expand applicability of 
PER-005 to include certain generator operators and operations planning 
and operations support staff by fourth quarterhttp://www.nerc.com/page.php?cid=2|20 2011. The Commission 
also proposed to approve NERC's proposed retirement of currently 
effective Reliability Standards, PER-002-0 and PER-004-1, which will be 
superseded by the two new standards.
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    \15\ System Personnel Training Reliability Standards, 75 FR 
35689 (June 17,http://www.nerc.com/page.php?cid=2|20 2010), FERC Stats. & Regs. ] 32,661 (http://www.nerc.com/page.php?cid=2|2010) (NOPR).
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    12. In response to the NOPR, comments were filed by 28 interested 
parties. These comments assisted us in the evaluation of NERC's 
proposal. In the discussion below, we address the issues raised by 
these comments. Appendix A to this Final Rule lists the entities that 
filed comments on the NOPR.

II. Discussion

A. Approval of PER-004-2 and PER-005-1

    13. In the NOPR, the Commission proposed to approve the two PER 
Reliability Standards filed by NERC in this proceeding as just, 
reasonable, not unduly discriminatory or preferential, and in the 
public interest. The Commission stated that proposed Reliability 
Standards PER-005-1 and PER-004-2 represent an improvement in training 
requirements.
Comments
    14. Many commenters support approving the two proposed Reliability 
Standards PER-004-2 and PER-005-1.\16\ NERC reiterates in its comments 
that implementation of Reliability Standards PER-005-1 and PER-004-2 
will achieve a significant improvement in the reliability of the Bulk-
Power System and, therefore, it is supportive of the Commission's 
proposal to approve the two standards. APPA states that the proposed 
PER standards strike the right balance among costs, flexibility and 
performance, and that PER-005-1 and PER-004-2 should be approved 
without modification. Dominion notes that the implementation of the 
more stringent requirements of PER-005-1, including the adoption of a 
systematic approach to training for new and existing system operator 
training programs, recognizes the criticality of such training and 
contains a logical and reasonable approach to providing the appropriate 
personnel with the necessary training.
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    \16\ See comments of APPA, Dominion, EEI, IESO, NERC, NRECA, 
PG&E, Platte River, Wisconsin Electric, and WECC.
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    15. EEI states that if the Reliability Standards are approved, 
compliance with both PER-004-2 and PER-005-1 will support the 
reliability of the Bulk-Power System by measuring competence against a 
list of specific task requirements. EEI also comments that by 
implementing training requirements that test specific competencies, the 
proposed Reliability Standard PER-005-1 provides greater clarity, thus 
improving its enforceability. No commenter objects to the approval of 
the two training Reliability Standards.
Commission Determination
    16. The Commission adopts the NOPR proposal and approves 
Reliability Standard PER-004-2 and PER-005-1 as just, reasonable, not 
unduly discriminatory or preferential, and in the public interest.\17\ 
By assigning a significant amount of structure to the training programs 
for the principal operators of the Bulk-Power System, namely 
reliability coordinators, balancing authorities and transmission 
operators, the two proposed Reliability Standards will enhance the 
reliability of the Bulk-Power System. Moreover, the two proposed 
Reliability Standards represent a step forward in implementing a key 
recommendation from thehttp://www.nerc.com/page.php?cid=2|20 2003 Blackout Report \18\ by addressing an 
identified gap where operations personnel were not adequately trained 
to maintain reliable operation under emergency conditions.
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    \17\ 16 U.S.C. 824o(d)(2).
    \18\ U.S.-Canada Power System Outage Task Force, Final Report on 
the August 14,http://www.nerc.com/page.php?cid=2|20 2003 Blackout in the United States and Canada: Causes 
and Recommendations, (Aprilhttp://www.nerc.com/page.php?cid=2|20 2004) (Blackout Report), available at 
http://www.ferc.gov/industries/electric/indus-act/blackout.asp.
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    17. The Commission is not directing any modifications to the 
substantive requirements of the two new Reliability Standards, PER-005-
1 or PER-004-2. Nevertheless, as discussed in greater detail below, the 
Commission has several concerns regarding certain training issues. To 
address these concerns, and as discussed in greater detail below, the 
Commission is issuing directives that the ERO: (1) Consider the 
necessity of developing an implementation plan for entities that become 
subject to PER-005-1, Requirement R3.1 after Requirement R3.1 is in 
effect, and (2) develop a Reliability Standard, through the ERO's 
Reliability Standards development process, conducted pursuant to its 
Standard Processes Manual, establishing training requirements for local 
transmission control center operator personnel.

B. Implementation Timeline

    18. In the NOPR, the Commission expressed concern about NERC's 
proposed use of staggered effective dates for the two proposed 
Reliability Standards, which Reliability Standards modify currently 
effective standards. The Commission questioned whether staggered 
effective dates could create a gap in compliance and enforceability. 
Specifically, NERC proposed to make the various requirements in PER-
005-1 mandatory and enforceable in three stages over a three-year 
period. The Commission also questioned the need for the proposed two- 
and three-year lead times before certain Requirements in PER-005-1 
become mandatory and enforceable.

[[Page 72667]]

Comments
    19. NERC's comments clarify the proposed effective dates for each 
of the new Requirements in PER-005-1 and PER-004-2 as well as the 
corresponding retirement dates of the currently effective Requirements 
in PER-002-0 and PER-004-1. NERC included in its comments a table that 
specifies the retirement and effective date for each Requirement in 
each of the affected Reliability Standards, specifically, currently 
effective PER-002-0 and PER-004-1 and proposed Reliability Standards 
PER-004-2 and PER-005-1. This table is reproduced in Appendix B of this 
Final Rule. Further, NERC provides justification for the proposed two- 
and three-year lead times for the effective date for some of the 
proposed Requirements in PER-005-1. Specifically, NERC states that the 
24-month implementation timeframe of proposed PER-005-1, Requirements 
R1 and R2 allows flexibility in developing and implementing the 
training programs that use a systematic approach to training, and is 
structured and tailored to the functions that each entity performs in 
operating the Bulk-Power System. Additionally, NERC explains that the 
36-month implementation timeframe for Requirement R3.1 in the proposed 
standard PER-005-1 allows entities with simulation technology 
sufficient time to integrate the use of this technology as a core 
component of those programs going forward and allows entities without 
simulation technology the needed time to secure and integrate 
simulation technology. Finally, NERC states that it reviewed the 
staggered effective/retirement dates and did not find any overlaps or 
gaps.http://www.nerc.com/page.php?cid=2|20 20. The majority of the commenters generally support NERC's 
proposed effective and retirement dates.\19\ Many of these commenters 
state that if the Commission rejects the use of staggered effective and 
retirement dates, then in the alternative, the Commission should impose 
a uniform effective date that is the first day of the first calendar 
quarter, 36 months after FERC approval.\http://www.nerc.com/page.php?cid=2|20\ BGE, GSOC and GTC, KCP&L, 
SPP, and Westar generally support eliminating the staggered effective 
dates and instead setting this uniform effective/retirement date.
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    \19\ See comments submitted by BPA, ITC, Minnesota Power, 
Montana-Dakota, NV Energy, NorthWestern, PG&E, Platte River, 
Portland, and WECC.
    \http://www.nerc.com/page.php?cid=2|20\ See comments submitted by Minnesota Power, Montana-Dakota, 
PG&E, and WECC.
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    21. EEI raises a concern regarding the effective date for 
Reliability Standard PER-005-1, Requirement 3.1. Specifically, EEI 
states that although Reliability Standard PER-005-1 addresses lead 
times for compliance based on regulator approval of the standards, it 
does not address the situation where Requirement 3.1 is not applicable 
to certain entities at the time of the regulatory effective date of the 
standard, but later becomes applicable to those entities. Specifically, 
with respect to PER-005-1, Requirement R3.1, which requires simulator 
training for entities with established interconnection reliability 
operating limits (IROLs),\21\ EEI states that if an entity does not 
have established IROLs when the Reliability Standard PER-005-1 becomes 
effective, but later due to system changes an IROL is invoked, the 
standard does not specify when the requirements for simulation training 
(Requirement R3.1) would be mandatory and enforceable for such an 
entity. EEI states that because entities with established IROLs would 
initially have 36 months to comply with the provisions of Requirement 
R3.1; i.e., to develop simulation training, that the same 36 month 
compliance lead time should also be afforded to all entities with 
future established IROLs. EEI requests that the Commission direct NERC 
to modify the effective date specified in Reliability Standard PER-005-
1, section 5.1 to grant a 36-month lead time for entities with newly 
established IROLs or operating guides to be compliant with Requirement 
3.1.
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    \21\ See NERC Glossary of Terms at http://www.nerc.com/page.php?cid=2|2010Aprilhttp://www.nerc.com/page.php?cid=2|20.pdf">http://www.nerc.com/docs/standards/rs/Glossary_of_Terms_http://www.nerc.com/page.php?cid=2|2010Aprilhttp://www.nerc.com/page.php?cid=2|20.pdf.
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Commission Determination
    22. The Commission finds that the proposed staggered implementation 
schedule for PER-005-1 and PER-004-2 and the corresponding retirement 
schedule for PER-002-0 and PER-004-1 strikes a reasonable balance 
between the need for timely reform and the needs of the entities that 
will be subject to PER-005-1 to develop and implement training programs 
utilizing a systematic approach to training and use of simulators as a 
training tool. The effective and retirement date table provided by NERC 
in its comments and incorporated herein as Appendix B demonstrates that 
there are no apparent overlaps or gaps between the retirement of PER-
002-0 and PER-004-1 and the effectiveness of the requirements in the 
new Reliability Standards, PER-005-1 and PER-004-2.
    23. The Commission finds that the commenters that advocate for a 
uniform effective date of 36-months have not adequately justified such 
a lengthy lead time for a Reliability Standard that will not impose 
entirely new requirements. Rather, PER-005-1 requires applicable 
entities to build upon and improve the existing training programs that 
are in place under currently effective PER-002-0. Accordingly, as 
approved, PER-004-2 in its entirety and PER-005-1, Requirement R3 shall 
become effective on the first day of the first calendar quarter after 
regulatory approval.\22\ PER-005-1, Requirements R1, R1.1, R1.1.1, 
R1.2, R1.3, R1.4, R2, and R2.1 shall become effective on the first day 
of the first calendar quarter, twenty-four months after regulatory 
approval. And, finally, PER-005-1, Requirements R3.1 shall become 
effective on the first day of the first calendar quarter, thirty-six 
months after regulatory approval.
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    \22\ ``Regulatory approval'' for these two Reliability Standards 
refers to approval by the Commission in a final rule. The date of 
the Commission's regulatory approval is not the date that the final 
rule is issued by the Commission, rather, in this case, it is 60 
days after the date the final rule is published in the Federal 
Register.
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    24. With respect to EEI's comment regarding the effective date for 
entities that may become, in the future, subject to the simulator 
training requirement in PER-005-1, R3.1, the Commission believes that 
this issue should be considered by the ERO. We note that, with respect 
to the Critical Infrastructure Protection (CIP) Reliability Standards, 
NERC has developed a separate implementation plan that essentially 
gives responsible entities some lead time before newly acquired assets 
must be in compliance with the effective CIP Reliability Standards.\23\ 
We direct NERC to consider the necessity of developing a similar 
implementation plan with respect to PER-005-1, Requirement R3.1.
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    \23\ See North American Electric Reliability Corp., 130 FERC ] 
61,271, at P 15 (http://www.nerc.com/page.php?cid=2|2010) (approving the Implementation Plan for Newly 
Identified Cyber Assets).
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C. Systematic Approach to Training

    25. A systematic approach to training is a widely-accepted 
methodology that ensures training is efficiently and effectively 
conducted and is directly related to the needs of the position in 
question.\24\ To achieve training results, the objectives of a 
systematic approach to training include: management and administration 
of training and qualification programs; development and qualification 
of training staff; trainee entry-level requirements; determination of 
training program content; design and development of

[[Page 72668]]

training programs; conduct of training; trainee examinations and 
evaluations; and training program evaluation.
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    \24\ See Order No. 693, FERC Stats. & Regs. ] 31,242 at P 1382.
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NOPR
    26. In the NOPR, the Commission agreed with NERC that proposed 
Reliability Standard PER-005-1, Requirement R1 met the Commission's 
directive to ``develop a modification to PER-002-2 (or a new 
Reliability Standard) that uses the systematic approach to training 
methodology.'' \25\ However, the Commission noted that the generic 
reference to systematic approach to training contained in proposed PER-
005-1 Requirement R1 raised the question of whether certain Order No. 
693 directives and certain specific training requirements that are 
explicitly set forth in the currently effective Reliability Standards 
PER-002-0 and PER-004-1, which are to be retired, are fully and 
adequately captured under the systematic approach to training umbrella. 
The Commission questioned whether the following three currently 
effective training requirements from PER-002-0 and PER-004-1 are 
incorporated in proposed Reliability Standard PER-005-1: (i) 
Understanding of reliability coordinator area, (ii) continual training, 
and (iii) training staff identity and competency. In the NOPR, the 
Commission sought comment on its understanding of the carryover of 
these three currently enforceable compliance obligations.
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    \25\ NOPR, FERC Stats. & Regs ] 32,601 at P 25 (citing Order No. 
693, FERC Stats. & Regs. ] 31,242 at P 1380).
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1. Understanding of Reliability Coordinator Area
    27. Currently effective Reliability Standard PER-004-1, 
Requirements R3 and R4 provide that reliability coordinator operating 
personnel ``shall have a comprehensive understanding of the Reliability 
Coordinator Area and interactions with neighboring Reliability 
Coordinator areas'' and ``shall have an extensive understanding of the 
Balancing Authorities, Transmission Operators, and Generation Operators 
within the Reliability Coordinator Area, including the operating staff, 
operating practices and procedures * * * .'' \26\ NERC states that 
these two requirements are supplanted by and addressed more fully in 
proposed Reliability Standard PER-005-1, Requirements R1 and R2. 
However, proposed Reliability Standard PER-005-1 does not explicitly 
require reliability coordinator operating personnel to have a 
comprehensive understanding of the reliability coordinator area or an 
extensive understanding of the balancing authorities, transmission 
operators, and generation operators within the reliability coordinator 
area. In order to clarify that these requirements are clear and 
enforceable under proposed Reliability Standard PER-005-1, the 
Commission sought an explanation from NERC and comments from the 
general public whether these existing requirements are enforceable 
under the proposed Reliability Standard PER-005-1 and whether these 
requirements are clear or should be more explicit.
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    \26\ See Reliability Standard PER-004-1, Requirements R3 and R4.
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Comments
    28. Most commenters agree that comprehensive understanding of the 
reliability coordinator area is fully addressed by PER-005-1, 
Requirements R1 and R2 through the use of a systematic approach to 
training.\27\ For example, Dominion supports proposed PER-005-1, 
Requirements R1 and R2 because the requirements are clear, measurable, 
and eliminate the subjectivity of the phrase ``comprehensive 
understanding'' that currently exists under the current PER-004-1, 
Requirement R3. Dominion believes that proper implementation of a 
systematic approach to training will address the Commission's concern 
that operating personnel may not have a proper understanding of their 
system and interactions with neighboring systems without resurrecting 
the vague language in PER-004-1. However, other commenters, including 
ITC, MidAmerican, and SPP, state that because the requirement to have a 
``comprehensive understanding of the reliability coordinator's area'' 
is not explicitly stated in PER-005-1, it will be difficult to enforce.
---------------------------------------------------------------------------

    \27\ See comments of BPA, Dominion, GSOC & GTC, IESO, ISO/RTO 
Council, KCP&L, Minnesota Power, Montana Dakota, NV Energy, NERC, 
PG&E, Portland, Westar, and WECC.
---------------------------------------------------------------------------

    29. NERC states that PER-005-1 implements a defense-in-depth 
approach to ensure that the reliability coordinator's system operators 
have a comprehensive understanding of their reliability coordinator 
area. NERC believes this approach ensures that system operators have 
the tools to effectively monitor and direct actions within the 
reliability coordinator area in support of the Bulk-Power System. NERC 
provides examples of how proposed PER-005-1 ensures that the 
reliability coordinator's system operators will have detailed knowledge 
of their reliability coordinator area.
Commission Determination
    30. Based on NERC's explanation, the Commission agrees that the 
existing requirements contained in PER-004-1, which require reliability 
coordinators to have a comprehensive understanding of the reliability 
coordinator area and interactions with neighboring reliability 
coordinator areas and an extensive understanding of the balancing 
authorities, transmission operators, and generation operators within 
the reliability coordinator area, are adequately captured and 
enforceable under proposed Reliability Standard PER-005-1.
2. Continual Training
    31. Currently effective Reliability Standard PER-002-0, Requirement 
R3.2 explicitly mandates that ``the training program must include a 
plan for the initial and continuing training of Transmission Operators 
and Balancing Authorities operating personnel.'' In the NOPR, the 
Commission sought an explanation from NERC, and comment from the 
general public, whether continuing training is an enforceable 
requirement under proposed Reliability Standard PER-005-1 and whether 
this requirement is clear or should be more explicit.
Comments
    32. NERC comments that continual training is an enforceable 
requirement under PER-005-1, Requirement R1 as a fundamental aspect of 
a systematic approach to training. Most commenters agree with NERC that 
continual training is an inherent aspect of the systematic approach to 
training.\28\ For example, the ISO/RTO Council states that PER-005-1 is 
superior to the previous continual training requirement and will be 
easily measured and enforced and thus does not need to be more 
explicit.
---------------------------------------------------------------------------

    \28\ See comments of BPA, GSOC & GTC, IESO, ISO/RTO Council, 
ITC, Minnesota Power, Montana-Dakota, NV Energy, NorthWestern, PG&E, 
Platte River, Portland, Westar, and WECC.
---------------------------------------------------------------------------

    33. KCP&L believes continuing training is not necessary for routine 
tasks, only non-routine. MidAmerican and NV Energy both argue that 
explicit language addressing continual training is necessary to be an 
enforceable requirement.
Commission Determination
    34. Based on NERC's and the majority of the commenters' affirmation 
that continual training is a fundamental part of a systematic approach 
to training and an enforceable requirement under PER-005-1, we find 
that any systematic approach to training, including the

[[Page 72669]]

systematic approach to training mandated by Reliability Standard PER-
005-1, would entail continual training to refresh system operators' 
knowledge and to cover any new tasks relevant to the operation of the 
Bulk-Power System.
3. Training Staff Identity and Competency
    35. In the NOPR, the Commission noted that currently effective 
Reliability Standard PER-002-0, Requirement R3.4 requires a training 
program in which ``[t]raining staff must be identified, and the staff 
must be competent in both knowledge of system operations and 
instructional capabilities.'' The Commission further noted that this 
requirement is not explicitly provided in PER-005-1. As such, the NOPR 
sought clarification as to (i) how and whether a systematic approach to 
training requires training staff to be identified, and (ii) if not, the 
mechanism by which training staff will be identified and its competency 
ensured. The Commission also invited comment on whether this 
clarification should be made explicit so that entities clearly 
understand their compliance obligations.
Comments
    36. NERC agrees with the Commission that PER-002-0, Requirement 
R3.4, which requires a training program in which training staff must be 
identified and competent in system operations and instructional 
capabilities, is an important requirement and proposes to reassess 
whether this requirement should be made more explicit in a later 
version of PER-005-1 so that entities can understand their compliance 
obligations.
    37. The majority of commenters agree that training staff 
identification and competency are inherent in a systematic approach to 
training, and that, as such, no modification of proposed PER-005-1 is 
necessary.\29\ However, some commenters disagree and argue that PER-
005-1 should have an explicit requirement similar to Requirement R3.4 
in PER-002-0 mandating training staff to be identified and be competent 
in system operations and instructional capabilities.\30\ Other 
commenters state that the systematic approach to training does not 
require training staff to be identified or their competency ensured, 
but argue that such a requirement is not necessary and potentially 
detrimental.\31\ For example, ITC believes competency of training staff 
should be determined by entities internally during the hiring process 
and companies should not be limited by a prescriptive requirement that 
does not allow for company discretion during the hiring process.
---------------------------------------------------------------------------

    \29\ See comments of GSOC & GTC, Minnesota Power, Montana 
Dakota, NRECA, NV Energy, PG&E, Platte River, Portland, SPP, and 
Westar.
    \30\ See comments of BGE, BPA, and MidAmerican.
    \31\ See comments of IESO, ISO/RTO Council, ITC, KCP&L, 
NorthWestern, and Wisconsin Electric.
---------------------------------------------------------------------------

Commission Determination
    38. Based on the comments received, the Commission concludes that 
the current requirement for each training program (that training staff 
must be identified and that such staff must be competent in both 
knowledge of system operations and instructional capabilities) is 
inherent in any systematic approach to training that a registered 
entity would use to meet this requirement, and thus is an enforceable 
component of Requirement R1 under the proposed standard. However, given 
the number of commenters that argue that it is necessary for the 
current training program requirement to be explicitly stated in the 
proposed training standard, we agree that NERC should follow through on 
its proposal in its comments to reassess whether this requirement 
should be made more explicit in a later version of PER- 005-1.

D. Training Expectations for Each Job Function/Tailored Training NOPR 
Proposal

    39. Proposed Reliability Standard PER-005-1, Requirement R1.2 
mandates applicable entities to ``design and develop learning 
objectives and training materials based on the task list created in 
R1.1.'' \32\ In the NOPR, the Commission noted that it believes that 
NERC has complied with the directive to require entities to identify 
the expectations of the training for each job function and develop 
training programs tailored to each job function with consideration of 
the individual training needs of their personnel. The Commission took 
the view in the NOPR that the systematic approach to training used to 
satisfy PER-005-1, Requirement R1 would assess factors such as 
educational, technical experience, and medical requirements that 
candidates must possess before entering a given training program. With 
the above understanding, the Commission concluded that the systematic 
approach to training methodology required in Reliability Standard PER-
005-1, Requirement R1 satisfies the Commission's directive for Order 
No. 693 to develop a modification that identifies the expectations of 
the training for each job function and develops training programs 
tailored to each job function with consideration of the individual 
training needs of the personnel. In the NOPR, the Commission sought 
comment on its understanding that PER-005-1, Requirement R1.2 requires 
that the learning objectives and training materials be developed with 
consideration of the individual needs of each operator.
---------------------------------------------------------------------------

    \32\ NERC Petition at 27 (quoting proposed Reliability Standard 
PER-005-1, Requirement R1.2).
---------------------------------------------------------------------------

Comments
    40. NERC agrees with the Commission that learning objectives and 
training materials are to be developed for each job function. NERC 
believes that using a systematic approach to training allows each 
entity to tailor its training program to best meet the training needs 
of the function performed by System Operators.
    41. A number of commenters \33\ agree with NERC and affirm the 
Commission's understanding that a systematic approach to training 
requires development of tailored training. NorthWestern concurs that 
PER-005-1 requires the training materials to be tailored to the 
individual needs of each operator. For example, IESO believes that the 
systematic approach to training process will ensure that the necessary 
knowledge, skills and abilities are provided in the development of 
learning objectives and associated training materials. The ISO/RTO 
Council contends that PER-005 addresses function/task-specific training 
and not person-specific training or personal development. With respect 
to Requirement R1.2, the ISO/RTO Council interprets the Commission's 
statement that ``* * * requires that the learning objectives and 
training materials be developed with consideration of the individual 
needs of each operator. * * *'' as requiring an entity to address the 
knowledge and skill gaps of individual system operators with respect to 
the reliability tasks they are expected to perform.\34\ The ISO/RTO 
Council supports the term ``systematic approach to training (in lower 
case)'' as used in the Reliability Standard because the lower case term 
provides registered entities flexibility in complying with the 
standard.\35\
---------------------------------------------------------------------------

    \33\ See comments of BPA, GSOC & GTC, NV Energy, NorthWestern, 
PG&E, and Platte River.
    \34\ See IRC Comments at 7.
    \35\ Id.
---------------------------------------------------------------------------

    42. SPP and Westar did not take a position on the issue; rather, 
they request that the Commission clarify what is meant by 
``consideration of the

[[Page 72670]]

individual needs of each operator.'' BG&E recommends that the 
Commission make more explicit the requirement to implement the 
Department of Energy Handbook on the systematic approach to training 
\36\ as the mandatory standardized methodology industry-wide, and 
expresses the view that the DOE Handbook is the most stringent set of 
standards available, has the longest track record of proven successful 
results, and is familiar to the industry. BG&E identifies the following 
expectations that training should include: (1) Customized, task-based 
training; (2) annual assessment of operator needs; and (3) 
individualized training on any task for which the trainee failed to 
achieve satisfactory standards during the annual training.
---------------------------------------------------------------------------

    \36\ See U.S. Department of Energy's Handbook, DOE-HDBK-1078-94, 
Training Program Handbook: A Systematic Approach to Training (August 
1994), available at http://www.hss.energy.gov/nuclearsafety/ns/techstds/standard/hdbk1078/hdbk1078.pdf (DOE Handbook).
---------------------------------------------------------------------------

    43. One commenter, Wisconsin Electric, disagrees with the 
Commission's ``understanding'' on this issue. Wisconsin Electric 
expresses several concerns with the following statement in the NOPR:

    Based on our review of the Systematic Approach to Training 
methodology used by the Department of Energy, we understand that a 
Systematic Approach to Training would assess factors such as 
educational, technical, experience, and medical requirements that 
candidates must possess before entering a given training program. 
With the above understanding, we believe that the Systematic 
Approach to Training methodology, as proposed in Reliability 
Standard PER-005-1, satisfies the Commission directive to develop a 
modification that identifies the expectations of the training for 
each job function and develops training programs tailored to each 
job function with consideration of the individual training needs of 
the personnel.\37\
---------------------------------------------------------------------------

    \37\ NOPR, FERC Stats & Regs. ] 32,661 at P 32.

Specifically, Wisconsin Electric is concerned that this would add a 
number of elements to PER-005 and would create confusion over the scope 
of the compliance obligation. Wisconsin Electric states that this 
language appears to impose the Department of Energy's Systematic 
Approach to Training as the only acceptable methodology, which, in 
effect, precludes entities from adopting another approach. Wisconsin 
Electric is also concerned that the factors that a candidate must 
possess before entering a training program create a de facto compliance 
checklist that would exist apart from the language of the Reliability 
Standard. Wisconsin Electric objects to the expansion of NERC 
requirements to include assessment of medical condition of its 
personnel. Wisconsin Electric believes that the Commission should 
approve PER-005-1 as written without conditioning its approval on 
additional, unstated requirements.
Commission Determination
    44. Based on NERC's and other commenters' affirmation of the 
Commission's understanding as stated in the NOPR, the Commission 
confirms that Requirement R1.2 of proposed Reliability Standard PER-
005-1 requires that the learning objectives and training materials be 
developed with consideration of the individual needs of each operator. 
In response to Wisconsin Electric, BG&E and the ISO/RTO Council, the 
Commission clarifies that it is not mandating the use of the specific 
Systematic Approach to Training methodology used by the Department of 
Energy. However, we believe that the Department of Energy's Systematic 
Approach to Training methodology as set forth in the DOE Handbook is a 
particularly good and relevant model to use.
    45. DOE's Handbook is relevant for two reasons. First, it was 
designed to assist facilities, specifically nuclear facilities, that 
are within the same general industry as electric power facilities.\38\ 
Second, the DOE Handbook was written on the assumption that the user, a 
facility, is currently not using the DOE Systematic Approach to 
Training model for their training programs, which is very likely the 
case with respect to entities subject to PER-005-1.\39\ Thus, the DOE 
Handbook is particularly relevant to entities that transition to a 
systematic approach to training. We note that the DOE Handbook was 
compiled from a number of sources including the Institute of Nuclear 
Power Operations' Principles of Training System Development as well as 
in collaboration with personnel representing DOE contractors and 
private industry.\40\ Moreover, the DOE Handbook provides reasonable 
flexibility when implementing a systematic approach to training in 
various settings.\41\
---------------------------------------------------------------------------

    \38\ DOE has noted that although its training handbooks related 
to the Systematic Approach to Training were prepared primarily for 
DOE nuclear facilities, the information can be effectively used by 
any other type of facility. See DOE Handbook, DOE-HDBK-1074-95 at 
Foreword (January 1995) (Alternative Systematic Approach to Training 
Handbook), available at http://www.hss.energy.gov/nuclearsafety/ns/techstds/standard/hdbk1074/hdb1074a.html.
    \39\ See DOE Handbook at 1.2. The DOE Handbook acknowledges that 
many nuclear facilities already had effective training programs in 
place that contain many performance-based characteristics. 
Accordingly, DOE Handbook states that facilities with existing 
training programs should not discard such programs; rather, they 
should validate and supplement the existing training content where 
necessary using systematic methods. Id.
    \40\ See DOE Handbook at 1.1.
    \41\ See id. at 1.2. In developing the DOE Handbook, DOE noted 
that the handbook describes the more classical concept and approach 
to systematically establishing training programs. However, in some 
cases this classical approach has proven to be time- and labor-
intensive, and therefore encourages users of the handbook to 
consider the variety of training options that are available for 
establishing and maintaining personnel training and qualification 
programs. DOE further found that blending classical and alternative 
systematic approaches to training methods often yields the most 
effective product. See DOE Handbook at iii (the Foreword).
---------------------------------------------------------------------------

    46. Finally, SPP and Westar request that the Commission clarify 
what is meant by ``consideration of the individual needs of each 
operator.'' The Commission provides the following clarification. A 
training plan is designed to prepare individuals to perform their jobs. 
More specifically, a training plan should address gaps between the 
skills necessary to accomplish a particular job task and an operator's 
competency to carry out that task. Because of the emphasis on the 
individual, to be effective, a training plan must take into 
consideration the individual needs of the trainee, which includes the 
trainee's education level, technical experience, and relevant medical 
requirements.

E. Simulation Training

    47. In Order No. 693, the Commission directed NERC to develop a 
requirement mandating simulator training for reliability coordinators, 
transmission operators and balancing authorities that have operational 
control over a significant portion of load and generation. Recognizing 
that cost of simulator training is an issue, the Commission allowed for 
the use of simulators to be dependent on an entity's role and size.\42\
---------------------------------------------------------------------------

    \42\ See Order No. 693, FERC Stats. & Regs. ] 31,242 at P 1390.
---------------------------------------------------------------------------

NOPR Proposal
    48. In the NOPR, the Commission found that proposed Reliability 
Standard PER-005-1, Requirement R3.1 meets this Order No. 693 directive 
regarding training using simulators. However, the Commission sought 
comment on the terminology in Requirement R3.1 which provides that the 
emergency operations training should use ``simulation technology such 
as a simulator, virtual technology, or other technology that replicates 
the operational behavior of the BES during normal and emergency 
conditions.'' Specifically, the NOPR asked NERC to clarify: (i) Whether 
the language in R3.1, ``replicates the operational behavior of

[[Page 72671]]

the BES,'' requires the use of simulators specific to an operator's own 
system; (ii) if not, whether operators trained on simulators that 
replicate systems other than their own will be adequately trained to 
respond to emergency conditions on their own system; and (iii) whether 
it is feasible or practicable (including cost considerations) to 
require use of simulators that realistically replicate the entity's own 
topology and operating conditions; i.e., to require ``custom'' 
simulators.
Comments
    49. NERC and all others who commented on the simulator training 
issue agree that PER-005-1, Requirement R3.1, does not require the use 
of custom simulators.\43\ NERC, and other commenters,\44\ state that 
Requirement R3.1 requires a simulator to replicate the operational 
behavioral characteristics of the bulk electric system through the use 
of simulation technology. Commenters argue that the purpose of 
simulators is to train the operator in principles that can be applied 
to any system. Specifically, NRECA explains that the intent of PER-005-
1, Requirement R3.1 is not to require simulators that replicate every 
aspect of an entity's own topology and operating conditions. Rather, 
the intent is to replicate the operational behavioral characteristics 
of the bulk electric system through the use of more generalized 
simulation technology.
---------------------------------------------------------------------------

    \43\ See comments of APPA, BPA, EEI, GSOC & GTC, IESO, ISO/RTO 
Council, ITC, KCP&L, MidAmerican, Minnesota Power, Montana-Dakota, 
NRECA, NV Energy, NERC, NorthWestern, PG&E, Platte River, Portland, 
SPP, and Westar.
    \44\ See comments of APPA, EEI, IESO, ISO/RTO Council, NRECA, 
Northwestern, PG&E, Platte River, Portland, SPP, and Westar.
---------------------------------------------------------------------------

    50. All commenters, except for BPA, agree that the simulator 
training requirement should not require custom simulators. Some 
commenters argue that custom simulators are not necessary.\45\ These 
commenters argue that it is the understanding of situational conditions 
and the response to them that is the hallmark of successful operator 
training, and such training does not require the use of simulators 
specific to an operator's own system.
---------------------------------------------------------------------------

    \45\ See comments of EEI, IESO, KCP&L, Minnesota Power, Montana-
Dakota, NRECA, NV Energy, and PG&E.
---------------------------------------------------------------------------

    51. For example, NRECA states that it is an understanding of the 
situational conditions and the response to them that is the key to 
successful operator training, and those do not require the use of 
simulators specific to an operator's own system. NRECA further 
described that simulation of operational scenarios such as: frequency 
response of generators, VAR flow from high voltage to low voltage, and 
restoration load pick-up and the potential for under-frequency 
tripping, are concepts common to all systems, noting that a simulator 
can address and train on these issues irrespective of individual system 
characteristics. Minnesota Power and Montana Dakota explain that, in 
general, elements of the bulk electric system exhibit behaviors based 
upon the characteristics of each element, not upon their specific 
location in a particular system. They posit that it is the 
understanding of the situational conditions and the response to them 
that is the key to successful operator training and that understanding 
does not require the use of simulators specific to an operator's own 
system. EEI notes that the issue of custom versus generic simulators 
was discussed extensively by the PER-005-1 drafting team and argues 
that custom simulators are not necessary to properly train personnel. 
EEI urges the Commission to approve PER-005-1, R3.1 without change and 
to allow NERC to monitor the effectiveness of the simulator training 
requirement for possible gaps.
    52. Other commenters argue against mandating custom simulators 
because the cost of custom simulators would far exceed the benefit.\46\ 
APPA states that the additional cost of developing and maintaining a 
realistic full-scale, system-specific simulator for a small balancing 
authority or transmission operator would likely exceed the benefits. No 
commenter provided specific estimates of the incremental increase in 
cost of custom simulators. EEI, acknowledging that it does not have 
specific cost information, noted that accurate Bulk-Power System 
modeling and maintenance would be a significant cost driver. ITC states 
that although it believes that the use of system simulators specific to 
an operator's own system would better prepare a system operator for 
emergency conditions, the cost of custom simulators could likely 
outweigh the reliability benefits to small operators. Portland General 
Electric estimates that purchase, implementation and maintenance of a 
system-specific simulator could cost several hundred thousand dollars 
in up-front costs and would necessitate the addition of engineering 
personnel for programming and ongoing maintenance.
---------------------------------------------------------------------------

    \46\ See comments of APPA, EEI, ISO/RTO Council, ITC, KCP&L, 
MidAmerican, Minnesota Power, Montana-Dakota, NRECA, NV Energy, 
NorthWestern, Platte River, Portland, and SPP.
---------------------------------------------------------------------------

    53. BPA, the sole commenter that endorses modifying PER-005-1 to 
mandate the use of custom simulators, notes that it uses custom 
simulators. BPA acknowledges that the cost of implementing and 
maintaining a high fidelity simulator is significant, but suggests an 
alternative approach of developing a centralized, high fidelity 
simulator that realistically replicates the entire interconnection that 
could be remotely accessed by entities for training exercises.
    54. NERC notes in its comments that custom simulators could be 
important in ensuring the reliability of the BES. NERC further states 
that while a high fidelity simulator may not be necessary to ensure 
bulk electric system reliability, NERC agrees that simulators used for 
training that provide a useful representation of the system that the 
operators work with may warrant further consideration in a subsequent 
version of the proposed standard.\47\ EEI appears to agree with NERC, 
as EEI urges the Commission to allow NERC to implement the new PER-005-
1 requirements, gather experience on their effectiveness, and monitor 
results for possible gaps or challenges that arise with experience.
---------------------------------------------------------------------------

    \47\ NERC Comments at 14.
---------------------------------------------------------------------------

Commission Determination
    55. We affirm NERC's and the industry's understanding that PER-005-
1, Requirement R3.1 does not require the use of simulators specific to 
an operator's own system. While the Commission continues to feel there 
is value in using custom simulators, we acknowledge that NERC and 
industry have determined that it is not necessary at this time. 
However, NERC and other commenters state that there may be potential 
reliability benefits of some form of custom simulators. NERC has also 
proposed to consider custom simulators in a subsequent modification of 
PER-005-1. We appreciate NERC's commitment to continually look at how 
reliability can be improved and encourage NERC and industry to evaluate 
the gained reliability in requiring the use of custom simulators.

F. Local Transmission Control Center Operator Personnel Training

    56. In Order No. 693, the Commission directed NERC to expand the 
applicability of currently effective Reliability Standard PER-002-0 to 
include local transmission control center operator personnel. Order No. 
693 provided that the training should be tailored to the functions that 
local transmission control center operators perform that impact the 
reliable operation of the Bulk-Power System for both normal and 
emergency

[[Page 72672]]

operations.\48\ Proposed Reliability Standard PER-005-1, which is 
intended to supersede existing Reliability Standard PER-002-0, does not 
include local transmission control center operator personnel in the 
applicability section. Rather, proposed Reliability Standard PER-005-1, 
as drafted, is applicable only to the following three functional 
entities: reliability coordinators, balancing authorities, and 
transmission operators. NERC explained that its functional model lists 
the functions that a transmission operator performs, which includes the 
functions performed by local transmission control center personnel. 
NERC therefore concluded that, the Order No. 693 directive to include 
formal training for local transmission control center personnel is 
addressed in proposed Reliability Standards PER-005-1 because the 
transmission operator has the ultimate responsibility to ensure that 
its functional responsibilities are met, even if through other 
entities.\49\
---------------------------------------------------------------------------

    \48\ Order No. 693, FERC Stats. & Regs. ] 31,242 at P 1348.
    \49\ NERC Petition at 30.
---------------------------------------------------------------------------

NOPR Proposal
    57. In the NOPR, the Commission rejected NERC's explanation 
regarding the failure to include local transmission control center 
operating personnel in the proposed training standard. The Commission 
stated in the NOPR that, contrary to NERC's suggestion, under proposed 
Reliability Standard PER-005-1, a transmission operator could not 
require a local transmission control center operator to receive 
training if that operator is employed by an entity other than a 
reliability coordinator, balancing authority, or transmission operator. 
The Commission noted that with respect to proposed Reliability Standard 
PER-005-1, the standard requires transmission operators, reliability 
coordinators, and balancing authorities to establish a training program 
for the company-specific tasks performed by its System Operators.\50\ 
Thus the proposed standard only requires implementation of a training 
program for operators employed by the applicable entity's own company. 
Accordingly, the NOPR proposed to direct NERC to modify proposed 
Reliability Standard PER-005-1 to include a provision that explicitly 
addresses training for local transmission control centers, consistent 
with the Commission's directive in Order No. 693.
---------------------------------------------------------------------------

    \50\ Reliability Standard PER-005-1, Requirement R1.1 (emphasis 
added).
---------------------------------------------------------------------------

Comments
    58. NERC, and all other commenters that address this issue, object 
to the Commission's proposal to direct NERC to expand the applicability 
of PER-005-1 to explicitly include local transmission control center 
personnel. Some commenters agree with NERC's position, stated in its 
Petition, that the local transmission control center operators will 
receive the necessary training without explicitly including them as a 
class subject to PER-005-1.\51\ These commenters are concerned that the 
Commission's directive will require the creation of a new class of 
registered entities.
---------------------------------------------------------------------------

    \51\ See comments of IESO, NRECA, and NV Energy.
---------------------------------------------------------------------------

    59. The majority of commenters \52\ state that the term ``local 
transmission control center'' is unclear and undefined and, without 
definition, is subject to broad interpretation. These commenters raise 
the concern that ``if local transmission control center'' is not 
clearly defined, it could result in training requirements applying to 
non-NERC jurisdictional persons or entities. Commenters appear 
generally to support a definition that would define local transmission 
control centers as those which have authority to make decisions 
concerning the real-time operation of the bulk electric system. 
Associated Electric proposes a definition of ``local transmission 
control center.''
---------------------------------------------------------------------------

    \52\ See comments of Associated Electric, Dominion, GSOC & GTC, 
IESO, ISO/RTO Council, Minnesota Power, Montana Dakota, PG&E, 
Portland, and SPP.
---------------------------------------------------------------------------

    60. NERC and two other commenters \53\ suggest that training 
requirements for local transmission control center personnel should be 
developed in a separate project, not as a modification to PER-005-1. 
NERC advocates developing training standards for local transmission 
control center personnel in a separate standard because proposed PER-
005-1 is focused on improving training requirements for system 
operators who work for the reliability coordinator, transmission 
operator, and balancing authority. Further, NERC explains that 
developing training requirements for these operator personnel in a 
separate standard will allow that future standard to be modeled after 
PER-005-1. Accordingly, NERC proposes in its comments to address 
training requirements for local transmission control center operator 
personnel through its standards development process as a separate 
standards development project, after the Commission issues a final 
order on PER-005-1.
---------------------------------------------------------------------------

    \53\ See comments of APPA and EEI.
---------------------------------------------------------------------------

Commission Determination
    61. Some commenters question the original directive in Order No. 
693 requiring the development of training requirements for local 
transmission control center personnel by contending, as IESO does, that 
if individuals at a local control center are simply implementing 
directives from a transmission operator or a reliability coordinator, 
then such personnel should not be required to undergo the same rigorous 
training meant only for those entities who make independent decisions. 
Specifically, in Order No. 693, the Commission stated:

    The Commission disagrees with those commenters who contend that, 
because operators at local control centers take direction from NERC-
certified operators at the ISO or RTO, they do not need to be 
addressed by the training requirements of PER-002-0. Rather, as 
discussed above, these operators maintain authority to act 
independently to carry out tasks that require real-time operation of 
the Bulk-Power System including protecting assets, protecting 
personnel safety, adhering to regulatory requirements and 
establishing stable islands during system restoration.\54\
---------------------------------------------------------------------------

    \54\ Order No. 693, FERC Stats. & Regs. ] 31,242 at P 1347.

Thus, such comments are a collateral attack on Order No. 693 and will 
not be re-addressed. Issues regarding the rigor or type of training 
required for operators at local control centers should be vetted 
through NERC's standards development process as part of the standards 
drafting and balloting, and ultimately may be raised in comments in any 
future Commission proceeding in which the proposed standard(s) or 
modified standard(s) are before the Commission.
    62. The Commission understands that local transmission control 
center personnel exercise control over a significant portion of the 
Bulk-Power System under the supervision of the personnel of the 
registered transmission operator. This supervision may take the form of 
directing specific step-by-step instructions and at other times may 
take the form of the implementation of predefined operating procedures. 
For example, ISO New England, Inc., PJM Interconnection, L.L.C., and 
New York Independent System Operator, Inc., are registered transmission 
operators who issue operating instructions that are carried out by 
local transmission control centers such as PSE&G, PPL Electric 
Utilities Corp., PECO Energy Company, Baltimore Gas and Electric Co., 
Consolidated Edison of New York, Inc., National Grid USA, and Long 
Island

[[Page 72673]]

Power Authority, which are not registered transmission operators. The 
combined peak load of these three RTOs is in excess ofhttp://www.nerc.com/page.php?cid=2|20 200 gigawatts. 
In all cases, the local transmission control center personnel must 
understand what they are required to do in the performance of their 
duties to perform them effectively on a timely basis. Thus, omitting 
such local transmission control center personnel from the PER-005-1 
training requirements creates a reliability gap. The Commission 
believes that identifying these entities would be a valuable step in 
delineating the magnitude of that gap.
    63. NERC proposes in its comments to address the training of local 
transmission control center operating personnel in a different standard 
than PER-005-1.\55\ The Commission's concern in the NOPR was that local 
control center operating personnel be trained. We leave it to NERC's 
discretion whether to revise Reliability Standard PER-005-1 to 
accomplish this goal or to require local control center operating 
personnel to be trained in a separate Reliability Standard. The 
Commission notes that proposed Reliability Standard PER-005-1 generally 
requires the applicable entity to establish and implement a training 
program, verify operators' capabilities, and provide emergency 
training. The specific training, based on the Systematic Approach to 
Training methodology, is determined by the entity based on company-
specific reliability-related tasks performed by its operators. As 
discussed above, the Systematic Approach to Training methodology is not 
job specific and, rather, provides flexibility to meet the needs of 
varying organizations and job skills. In its comments, NERC has said 
that it intends to generally model local control center operating 
personnel training on PER-005-1. Thus, we expect that the Reliability 
Standard that is developed will require training for local transmission 
control center that does not significantly diverge from the training 
requirements set forth in PER-005-1. If the ERO proposes a Reliability 
Standard that differs significantly from the approved PER-005-1 
requirements, NERC must provide in its petition seeking approval of 
such future standard, adequate technical analysis supporting the 
different approach.
---------------------------------------------------------------------------

    \55\ NERC Comments at 15-16.
---------------------------------------------------------------------------

    64. Accordingly, we adopt our NOPR proposal and direct the ERO to 
develop through a separate Reliability Standards development project 
formal training requirements for local transmission control center 
operator personnel. Finally, given the numerous comments stating that 
term ``local transmission control center'' should be defined, we direct 
NERC to develop a definition of ``local transmission control center'' 
in the standards development project for developing the training 
requirements for local transmission control center operator personnel. 
We will not evaluate Associated Electric's proposed definition but, 
rather, leave it to the ERO to develop an appropriate definition that 
reflects the scope of local transmission control centers. The 
Commission will not opine on the appropriate definition of local 
transmission control center, as this definition can be addressed first 
using NERC's Reliability Standards Development Procedures.

G. Performance Metrics

    65. In Order No. 693, the Commission directed NERC to (1) determine 
``whether it is feasible to develop meaningful performance metrics 
associated with the effectiveness of a training program * * *, and if 
so, develop such performance metrics,'' \56\ and (2) determine if 
quantifiable performance metrics can be developed to gauge the 
effectiveness of the Reliability Standard itself.\57\ In its Petition, 
NERC stated that the systematic approach to training methodology, as 
set forth in proposed Reliability Standard PER-005-1, sub-requirement 
R1.4, requires each reliability coordinator, balancing authority and 
transmission operator to conduct an annual evaluation of the training 
program and assess whether system operators are receiving effective 
training. NERC concluded that this annual evaluation ``provides a 
meaningful assessment of the training program'' while ``[a]n evaluation 
of how System Operators perform during infrequent, actual events on the 
system would not provide useful metrics on an ongoing basis.'' \58\ 
NERC also stated that proposed Reliability Standard PER-005-1 is a 
training standard, and is not intended to address individual system 
operator performance apart from the requirements associated with the 
company-specific reliability-related tasks identified in Requirement 
R1.
---------------------------------------------------------------------------

    \56\ Order No. 693, FERC Stats. & Regs. ] 31,242 at P 1394.
    \57\ Id. P 1379.
    \58\ NERC Petition at 33-34.
---------------------------------------------------------------------------

NOPR
    66. In the NOPR the Commission sought comment from NERC on whether 
it considered metrics to evaluate the effectiveness of the Reliability 
Standard itself, not just metrics to evaluate the effectiveness of the 
applicable entity's training program under PER-005-1. In addition, the 
Commission sought comment on possible performance metrics that could be 
used to assess whether proposed Reliability Standard PER-005-1 achieves 
its stated purpose. As a result, the Commission proposed to direct NERC 
to evaluate the feasibility of developing meaningful performance 
metrics to evaluate the effectiveness of the Reliability Standard 
related to operator training.
Comments
    67. NERC notes that it is working to develop performance measures 
that will address Reliability Standards in general. NERC emphasizes 
that performance measures should not be embodied in the Reliability 
Standard requirements so there is room for flexibility in the 
development, implementation and modification of such measures. 
Commenters APPA, Minnesota Power, and Montana-Dakota agree with NERC 
that the development of metrics to evaluate the effectiveness of a NERC 
Reliability Standard should uniformly apply to all standards, not to 
individual standards.
    68. Two commenters, BG&E and NorthWestern, generally support the 
Commission's proposal and request that any action taken to explore the 
feasibility of developing metrics provide for a transparent stakeholder 
process. NorthWestern identifies three methods for measuring 
performance: (1) Use currently monitored operating parameters and 
incident reports; (2) capitalize on the capabilities of certain 
entities to monitor and evaluate the response of subordinate entities; 
and (3) use simulation to evaluate operator performance against a 
standard set of operating challenges. NorthWestern suggests that 
metrics to evaluate system operators performing real-time tasks should 
focus on reliability-related tasks that have the greatest commonality 
across entities and on characteristics of operation that provide 
insight into the organizational and operational approach to 
reliability.
    69. Most commenters, however, state that performance metrics for 
this Reliability Standard are either not feasible \59\ or not necessary 
because of the systematic approach to training methodology.\60\ For 
example, Platte River believes that the feasibility of developing 
meaningful global

[[Page 72674]]

performance metrics is low. Platte River also believes it is too 
difficult to establish specific parameters and to monitor trends across 
entities because systems are topologically unique and operational 
situations differ. Commenters note that the systematic approach to 
training addresses the performance metric because its checks and 
balances verify that a person can perform the task after training.
---------------------------------------------------------------------------

    \59\ See comments of APPA, IESO, ITC, KCP&L, NV Energy, and 
Platte River.
    \60\ See comments of ISO/RTO Council, MidAmerican, Minnesota 
Power, Montana-Dakota, PG&E, Portland, and Westar.
---------------------------------------------------------------------------

Commission Determination
    70. The Commission believes that performance metrics should be 
developed to gauge the effectiveness of a Reliability Standard if it is 
feasible to do so. We are pleased that NERC is working to develop 
performance measures that will address reliability standards in 
general. Based on the comments, it appears that it may be infeasible 
or, at a minimum, impracticable to develop performance metrics for some 
individual Reliability Standards; e.g., PER-005-1. However, we find 
that, based on this project, NERC is already in the process of 
evaluating the feasibility of developing meaningful performance metrics 
to evaluate the effectiveness of PER-005-1. The Commission encourages 
NERC to complete its generic performance measures project.

H. Violation Risk Factors/Violation Severity Levels

NOPR Proposal
    71. In the NOPR, the Commission proposed deferring action on the 
proposed violation risk factors (VRF) and violation severity levels 
(VSL) for both of 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 VRFs and VSL assignments 
by which NERC would only assign VRFs and VSLs to the main Requirements 
and not to the sub-Requirements.\61\
---------------------------------------------------------------------------

    \61\ Docket No. RR08-4-005 comprises NERC's March 5,http://www.nerc.com/page.php?cid=2|20 2010 
Violation Severity Level Compliance Filing submitted in response to 
Order No. 722 and an August 10,http://www.nerc.com/page.php?cid=2|20 2009 informational filing in which 
NERC proposes assigning VRFs and VSLs only to the main Requirements 
in each Reliability Standard and not to the sub-requirements.
---------------------------------------------------------------------------

Comments
    72. The ISO/RTO Council, the sole commenter on this issue, supports 
the Commission's proposal to defer action on the proposed violation 
risk factors and violation severity levels assignments. No commenter 
objected to the proposal to defer action.
Commission Determination
    73. The Commission will defer discussion on the proposed violation 
risk factors and violation severity levels assigned to PER-005-1 and 
PER-004-2 until after the Commission issues a final order acting on 
NERC's petition in Docket No. RR08-4-005.

I. Unaddressed Directives

NOPR Proposal
    74. The Commission noted in the NOPR that NERC, in developing 
proposed Reliability Standard PER-005-1, did not comply with the 
directive in Order No. 693 to expand the applicability of the personnel 
training Reliability Standard, PER-002-0, to include (i) generator 
operators centrally-located at a generation control center with a 
direct impact on the reliable operation of the Bulk-Power System, and 
(ii) operations planning and operations support staff who carry out 
outage planning and assessments and those who develop System Operating 
Limits (SOL), Interconnection Reliability Operating Limits (IROL) or 
operating nomograms for real-time operations.\62\ The Commission also 
directed, in Order No. 693, NERC to consider whether personnel that 
support Energy Management System (EMS) applications should be included 
in mandatory operator personnel training requirements.\63\ Noting 
NERC's proposal to address the expansion of the applicability of the 
training standard (PER-005-1) and to consider including EMS support 
personnel in the training standard in a subsequent standards 
development project, Projecthttp://www.nerc.com/page.php?cid=2|20 2010-01--Support Personnel Training, the 
Commission sought comment on whether NERC should target completing 
Projecthttp://www.nerc.com/page.php?cid=2|20 2010-01 by the fourth quarter ofhttp://www.nerc.com/page.php?cid=2|20 2011.
---------------------------------------------------------------------------

    \62\ Order No. 693, FERC Stats. & Regs. ] 31,242 at P 1393.
    \63\ Id. P 1394.
---------------------------------------------------------------------------

Comments
    75. Twenty-five entities commented on this issue.\64\ BPA is the 
only commenter that believes Projecthttp://www.nerc.com/page.php?cid=2|20 2010-01 can be completed by fourth 
quarterhttp://www.nerc.com/page.php?cid=2|20 2011. The other commenters, including NERC, state that a fourth 
quarterhttp://www.nerc.com/page.php?cid=2|20 2011 deadline is not reasonable. A number of commenters believe 
that a 24-month deadline would be an appropriate timeframe for NERC to 
comply with the Order No. 693 directives.
---------------------------------------------------------------------------

    \64\ The twenty-five commenters include: APPA, Associated 
Electric, BGE, BPA, Constellation, Dominion, EEI, E.ON, EPSA, GSOC & 
GTC, ISO/RTO Council, ITC, KCP&L, Minnesota Power, Montana-Dakota, 
NV Energy, NERC, NorthWestern, PG&E, Platte River, Portland, SPP, 
Westar, WECC, and Wisconsin Electric.
---------------------------------------------------------------------------

    76. NERC states that, with respect to incorporating generator 
operators into the applicability section of PER-005-1, it must interact 
with the Commission to obtain more direction before proceeding with the 
standards development process. NERC commits in its comments to meeting 
the directive to consider whether personnel who support EMS 
applications should be included the mandatory training Reliability 
Standard within 24 months after August 23,http://www.nerc.com/page.php?cid=2|20 2010.\65\
---------------------------------------------------------------------------

    \65\ NERC Comments at 21.
---------------------------------------------------------------------------

    77. Other commenters such as APPA and Dominion encourage the 
Commission to allow Projecthttp://www.nerc.com/page.php?cid=2|20 2010-01 to follow the natural course of the 
Reliability Standards development procedures without imposing a 
specific deadline. APPA notes that, in NERC's drafthttp://www.nerc.com/page.php?cid=2|20 2011-http://www.nerc.com/page.php?cid=2|2013 
Reliability Standards Development Plan, Projecthttp://www.nerc.com/page.php?cid=2|20 2010-01 is fourteenth 
of seventeen projects which will be initiated in numerical order. 
Further, APPA states that NERC's Reliability Standards development 
``pipeline'' is already full to capacity. APPA is concerned that a 
``hard'' deadline for Projecthttp://www.nerc.com/page.php?cid=2|20 2010-01 might delay ongoing projects. 
APPA encourages the Commission to collaborate with NERC on the priority 
for Reliability Standards projects in conjunction with the Reliability 
Standards Development Plan rather than setting deadlines in individual 
proceedings.
    78. With respect to the Order No. 693 directive to expand training 
to include operations planning and operations support staff who carry 
out outage planning and assessments and persons who develop SOLs, IROLs 
or operating nomograms for real-time operations, several commenters 
raise issues regarding the substance of the original directive. These 
issues are beyond the scope of the timing issue the Commission raises 
in the NOPR. For example, Associated Electric urges the Commission to 
direct NERC to adopt a definition of operations planning and operations 
support staff that more narrowly identifies those personnel who will be 
subject to the training standard. GSOC and GTC do not support expanding 
the applicability of the PER-005-1 training requirements to any other 
personnel. GSOC and GTC further argue that time spent expanding 
training requirements to other personnel will take away from their job 
of supporting their operating personnel, a use of time and resources 
that could actually decrease reliability.

[[Page 72675]]

    79. With respect to the Order No. 693 directive to expand training 
to include generator operators centrally-located at a generation 
control center with a direct impact on the reliable operation of the 
Bulk-Power System, several commenters raise issues regarding the 
substance of the original directive. These issues also are beyond the 
scope of the timing issue the Commission raises in the NOPR. For 
example, Constellation notes that in developing training requirements 
for generator operators the Reliability Standard should not create 
onerous training obligations or impose training requirements that 
conflict with or make existing programs less effective. E.ON comments 
that there is no sound basis for imposing the same or similar training 
requirements mandated for transmission operations on generator 
personnel. E.ON urges the Commission to weigh the complexity of 
mandating individual plant-specific training programs against the 
incremental benefit to Bulk-Power System reliability. EPSA seeks 
clarification regarding several aspects of the scope and intent of the 
Commission's directive to expand the applicability of PER-005-1 to 
include generator operators. Specifically, EPSA asks the Commission to 
reaffirm its finding in Order No. 693 that the training will apply only 
to employees at generator operators' centrally-located dispatch centers 
or when a single generator and dispatch center are at the same site. 
EPSA seeks as well Commission guidance regarding the sufficiency and 
consistency of existing Regional Transmission Organization/Independent 
System Operator (RTO/ISO) training programs applicable to generator 
operators with respect to the reliability training needs identified in 
the NOPR. EPSA also objects to the suggestion in the NOPR that, in the 
event that communication is lost with the grid operator, a generator 
operator would take unilateral action for which its personnel would 
require training.
    80. With respect to the Order No. 693 directive that NERC consider 
whether EMS personnel should be incorporated into the system operator 
training Reliability Standard, BGE comments that no separate training 
is needed for EMS personnel, as EMS personnel already are regularly 
trained. EEI states that, because the skills and functions of EMS 
personnel are unique, the development of training requirements for EMS 
support personnel should take place as a separate, stand-alone 
development project.
Commission Determination
    81. GSOC and GTC, E.ON, and Constellation raise issues regarding 
the substance and scope of the original Order No. 693 directives. Such 
comments are a collateral attack on Order No. 693 and will not be re-
addressed. Such issues should be vetted through NERC's standards 
development process as part of the standards drafting and balloting, 
and ultimately may be raised in comments in a future Commission 
proceeding in which the proposed standard(s) or modified standard(s) 
are before the Commission.
    82. Associated Electric expressed concern that the NOPR definition 
of the ``operations planning and operations support staff'' who should 
receive training pursuant to the Order No. 693 directive is ``broad and 
will encompass operations planning and operation support staff who 
engage in tasks that do not directly affect the reliable operation of 
the bulk electric system.'' \66\ The Commission clarifies that the 
scope of the Reliability Standard or modification to a Reliability 
Standard to address training for ``operations planning and operations 
support staff'' is limited by the qualifications stated in Order No. 
693. Specifically, in Order No. 693, the Commission directed the ERO to 
develop a modification to PER-002-0 that extends applicability of the 
training requirements to the operations planning and operations support 
staff of transmission operators and balancing authorities.\67\ The 
Commission further clarified that such directive applies only to 
operations planning and operations support personnel who: ``Carry out 
outage coordination and assessments in accordance with Reliability 
Standards IRO-004-1 and TOP-002-2, and those who determine SOLs and 
IROLs or operating nomograms in accordance with Reliability Standards 
IRO-005-1 and TOP-004-0.'' \68\ The NOPR did not expand or alter the 
scope of this directive as set forth in Order No. 693.
---------------------------------------------------------------------------

    \66\ Associated Electric's Comments at 6. Associated Electric 
states that, in the NOPR, the Commission ``defines'' operations 
planning and operations support staff as persons ``who carry out 
outage planning and assessments and those who develop SOLs and 
IROLs, or operating nomograms for real-time operations.''
    \67\ Order No. 693, FERC Stats. & Regs. ] 31,242 at P 1393.
    \68\ Id. P 1372.
---------------------------------------------------------------------------

    83. EPSA requests clarification of several statements in the NOPR 
regarding the Order No. 693 directive related to expanding the 
applicability of the system operator training Reliability Standard to 
include certain generator operators. First, EPSA expresses concern that 
the NOPR discussion broadly addresses generator operator personnel in a 
way that could be construed as subjecting all generator operator 
personnel, regardless of the disposition of the generating unit and how 
it fits into the grid and the topology of the grid, to the system 
operator training requirements. Therefore EPSA seeks clarification that 
the Commission did not intend for the NOPR to expand the Order No. 693 
directive. We confirm that we have not modified the scope of 
applicability of the Order No. 693 directive regarding generator 
operator training.\69\ As described in Order No. 693, the directive 
applies to generator operator personnel at a centrally-located dispatch 
center who receive direction and then develop specific dispatch 
instructions for plant operators under their control. Those generator 
operator personnel must receive formal training of the nature provided 
to system operators under PER-005-1.\70\ As clarified in Order No. 693, 
this group of personnel would include a generator operator's dispatch 
personnel where a single generator and dispatch center are located at 
the same site.\71\
---------------------------------------------------------------------------

    \69\ See id. P 1359-61.
    \70\ See id. P 1360.
    \71\ Id. P 1361.
---------------------------------------------------------------------------

    84. EPSA also seeks clarification regarding the statement in the 
NOPR that: ``[I]n the event communication is lost, the generator 
operator personnel must have had sufficient training to take 
appropriate action to ensure reliability of the Bulk-Power System.'' 
\72\ EPSA expresses concern that this statement suggests that if 
communication is lost with the grid operator, the generator operator 
must take unilateral action for which it requires training. EPSA notes 
that generator operators do not take such unilateral action nor do they 
have access to information to make such decisions. Therefore, EPSA asks 
the Commission to make clear that while communication should be 
addressed in training requirements for centrally located generator 
operator dispatch employees, the Commission is not extending related 
responsibilities or training requirements to generator operator 
employees. We grant the requested clarification, and affirm that we are 
not modifying the Order No. 693 directive regarding training for 
certain generator operator dispatch personnel, nor are we expanding a 
generator operator's responsibilities.\73\
---------------------------------------------------------------------------

    \72\ NOPR, FERC Stats. & Regs. ] 32,661 at P 58.
    \73\ See Order No. 693, FERC Stats. & Regs. ] 31,242 at P 1359-
65.
---------------------------------------------------------------------------

    85. EPSA also raises the issue of potentially overlapping or 
duplicative training programs. EPSA notes that

[[Page 72676]]

training requirements already exist in organized markets and compliance 
with them is a condition for market participation, citing PJM and CAISO 
as examples, and asserts that new training requirements should either 
mesh with or build upon those already in place. EPSA further notes that 
regional transmission organizations and independent system operators 
have training programs for generator operators that ensure that grid 
participants are well trained on grid operations and the needs of grid 
operators. EPSA believes that any modified or new Reliability Standard 
related to generator operator training should not conflict with or 
supplant the organized markets' existing training requirements. 
Accordingly, EPSA states that the Commission's ``acknowledgment of 
these existing programs and how they might fit with the expansion of 
PER-005-1 would provide useful guidance for Projecthttp://www.nerc.com/page.php?cid=2|20 2010-01.'' \74\ The 
Commission believes that, in the above-discussion regarding the 
systematic approach to training, the systematic approach to training 
methodology is flexible enough to build on existing training programs 
by validating and supplementing the existing training content, where 
necessary, using systematic methods.\75\ It is important that the 
relevant generator operator personnel receive the necessary training. 
Our determination is not intended to limit the source of that training, 
provided that it meets the requirements of the Reliability Standard.
---------------------------------------------------------------------------

    \74\ EPSA Comments at 8.
    \75\ See supra at P 45 & n.40.
---------------------------------------------------------------------------

    86. With respect to the time frame within which NERC should 
complete the unaddressed training directives, the Commission recently 
issued on order on NERC's three year assessment.\76\ That order 
requires NERC to identify and address all Reliability Standards 
prioritization matters when submitting its annual Reliability Standard 
Development plan, beginning with the plan forhttp://www.nerc.com/page.php?cid=2|20 2012.\77\ The Commission 
recognizes the importance of a collaborative approach to setting 
priorities for Reliability Standard projects and NERC's need for 
flexibility in setting project priorities in order to efficiently 
utilize the technical expertise available to NERC's standards drafting 
teams. We anticipate that NERC will include this project in its 
assessment of its Reliability Standards priorities. With respect to the 
Order No. 693 directive to consider whether personnel that support EMS 
applications should be included in the training Reliability Standard, 
we accept NERC's commitment to satisfy this directive by August 23,http://www.nerc.com/page.php?cid=2|20 2012.
---------------------------------------------------------------------------

    \76\ North American Electric Reliability Corporation, 132 FERC ] 
61,217 (http://www.nerc.com/page.php?cid=2|2010).
    \77\ Id. P 102.
---------------------------------------------------------------------------

III. Information Collection Statement

    87. The following collections of information contained in this 
proposed rule have been submitted to the Office of Management and 
Budget (OMB) for review under section 3507(d) of the Paperwork 
Reduction Act of 1995.\78\ OMB's regulations require OMB to approve 
certain information collection requirements imposed by agency rule.\79\
---------------------------------------------------------------------------

    \78\ 44 U.S.C. 3507(d).
    \79\ 5 CFR 13http://www.nerc.com/page.php?cid=2|20.11.
---------------------------------------------------------------------------

    88. The Commission solicited comments on the need for and the 
purpose of the information contained in these two Personal Performance, 
Training and Qualification Reliability Standards and the corresponding 
burden to implement them. The Commission received comments on specific 
requirements in the Reliability Standards, which we address in this 
Final Rule. The Commission has not directed any modifications to the 
Requirements in the two Reliability Standards being approved. Thus, the 
Final Rule does not materially or adversely affect the burden estimates 
provided in the NOPR.
    89. However, the Commission received comments on our reporting 
burden estimates. Of the twenty-eight entities that filed comments on 
the NOPR, two entities, the ISO/RTO Council and Westar, comment on the 
record keeping burden. Both the ISO/RTO Council and Westar note that 
proposed Reliability Standard PER-005-1 includes a new requirement that 
applicable entities use a systematic approach to training which 
includes record-keeping requirements (including a job-task-analysis) 
that are significantly greater than the Commission's estimates provided 
in the NOPR. In addition, the ISO/RTO Council asserts that Reliability 
Standard PER-005-1, as submitted, more than adequately covers 
appropriate record keeping requirements. With respect to the estimate 
of the record-keeping requirements, in the NOPR, the Commission 
considered the inclusion of a systematic approach to training 
requirement when developing the record-keeping estimates. Moreover, 
neither commenter provides an estimate of the record-keeping burden. 
The Commission finds that the two commenters did not provide sufficient 
information to support increasing the record keeping burden estimates. 
With respect to the ISO/RTO Council's assertion that PER-005-1, as 
submitted, more than adequately covers appropriate record keeping 
requirements, this issue is moot as this final rule does not require 
NERC to make any modifications to PER-005-1.
    90. Burden Estimate: The public reporting and records retention 
burdens for the proposed reporting requirements and the records 
retention requirement are as follows:

----------------------------------------------------------------------------------------------------------------
                                                                                   Recordkeeping   Total annual
                 Data collection                   Number of new     Number of    \80\ hours per   recordkeeping
                                                    respondents      responses      respondent         hours
----------------------------------------------------------------------------------------------------------------
PER-005-1, R1.1: RCs, TOs, and BAs must create a          \81\ 7               7              40             280
 list of bulk electric system reliability-
 related tasks performed by system operators....
PER-005-1, R1.2: RCs, TOs, and BAs shall design                7               7              60             4http://www.nerc.com/page.php?cid=2|20
 and develop learning objectives and training
 materials based on its task list...............
PER-005-1, R2: RCs, TOs, and BAs shall verify                  7               7              80             560
 system operators' ability to perform each
 assigned task from applicable task list........
PER-005-1, M1: RCs, TOs, and BAs must have                     7               7              50             350
 available for inspection evidence of using a
 systematic approach to training to establish
 and implement a training program...............
PER-005-1, M1.1: Each RC, TO, and BA must have                 7               7              10              70
 available for inspection its company-specific,
 reliability-related task list..................
PER-005-1, M1.2: Each RC, TO, and BA must have                 7               7              10              70
 available for inspection its learning
 objectives and training materials..............

[[Page 72677]]

 
PER-005-1, M1.3: RCs, TOs, and BAs must have                   7               7              10              70
 available for inspection system operator
 training records...............................
PER-005-1, M1.4: Each RC, TO, and BA must have                 7               7              25             175
 available for inspection evidence that it
 performed an annual training program
 evaluation.....................................
PER-005-1, M2: Each RC, TO, and BA must have                   7               7http://www.nerc.com/page.php?cid=2|20 20             140
 available for inspection evidence that it
 verified that its system operators can perform
 each assigned task from the training task list.
PER-005-1, M3: RCs, TOs, and BAs must have                     7               7http://www.nerc.com/page.php?cid=2|20 20             140
 available for inspection their annual training
 records evidencing that each system operator
 received 32 hours of emergency operations
 training.......................................
PER-005-1, M3.1: RCs, TOs, and BAs must have                   7               7http://www.nerc.com/page.php?cid=2|20 20             140
 available for inspection training records
 evidencing that each system operator received
 emergency training using simulation technology.
                                                 ---------------------------------------------------------------
    Total.......................................  ..............  ..............  ..............           2,415
----------------------------------------------------------------------------------------------------------------

     Total Annual hours for Collection: Recordkeeping = Total 
Hours.
---------------------------------------------------------------------------

    \80\ The proposed Reliability Standards do not impose any 
reporting requirements.
    \81\ Only seven of the 16 registered reliability coordinators 
are not currently subject to training requirements as balancing 
authorities.
---------------------------------------------------------------------------

    Information Collection Costs: Recordkeeping = 2415 hours @ $1http://www.nerc.com/page.php?cid=2|20/
hour \82\ = $289,800.
---------------------------------------------------------------------------

    \82\ This hourly rate reflects the hourly rate for engineers 
based on information provided to the Commission in Docket No. RM08-
13. See Transmission Relay Loadability Reliability Standard, 130 
FERC ] 61,221, at P 327 (http://www.nerc.com/page.php?cid=2|2010) (Final Rule).
---------------------------------------------------------------------------

     Total costs = $289,800.
     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: On occasion.
     Necessity of the Information: This final rule would 
approve revised Reliability Standards that modify the existing 
requirement for entities to develop training programs and train certain 
personnel. The Reliability Standards require entities to maintain their 
training materials and training records subject to review by the 
Commission and NERC to ensure compliance with the Reliability 
Standards.
     Internal review: The Commission has reviewed the 
requirements pertaining to the Reliability Standards for the Bulk-Power 
System and determined that the Requirements are necessary to meet the 
statutory provisions of the Energy Policy Act ofhttp://www.nerc.com/page.php?cid=2|20 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.
    91. Interested persons may obtain information on the reporting 
requirements by contacting the following: Federal Energy Regulatory 
Commission, 888 First Street, NE., Washington, DC [Attention: Ellen 
Brown, Office of the Executive Director, Phone: (http://www.nerc.com/page.php?cid=2|202) 502-8663, fax: 
(http://www.nerc.com/page.php?cid=2|202) 273-0873, e-mail: DataClearance@ferc.gov]. 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, DChttp://www.nerc.com/page.php?cid=2|20 20503 [Attention: Desk Officer for the Federal Energy 
Regulatory Commission]. For security reasons, comments should be sent 
by e-mail to OMB at oira_submission@omb.eop.gov. Please reference 
FERC-725A and the docket number of this final rule in your submission.

IV. Environmental Analysis

    92. 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.\83\ The 
actions taken in this Final Rule fall within the categorical exclusion 
in the Commission's regulations for rules that are clarifying, 
corrective or procedural, for information gathering, analysis, and 
dissemination.\84\ Accordingly, neither an environmental impact 
statement nor environmental assessment is required.
---------------------------------------------------------------------------

    \83\ 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).
    \84\ 18 CFR 380.4(a)(5).
---------------------------------------------------------------------------

V. Regulatory Flexibility Act

    93. The Regulatory Flexibility Act of 1980 (RFA) \85\ generally 
requires a description and analysis of final rules that will have 
significant economic impact on a substantial number of small entities. 
Most of the entities, i.e., reliability coordinators, transmission 
operators, and balancing authorities, to which the requirements of this 
rule would apply do not fall within the definition of small 
entities.\86\ Moreover, the proposed Reliability Standards reflect a 
continuation of existing training requirements for transmission 
operators and balancing authorities and are ``new'' only with respect 
to reliability coordinators.
---------------------------------------------------------------------------

    \85\ 5 U.S.C. 601-612.
    \86\ 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.
---------------------------------------------------------------------------

    94. As indicated above, based on available information regarding 
NERC's compliance registry, approximately seven entities will be 
responsible for compliance with proposed Reliability Standards PER-004-
2 and PER-005-1 that were not already subject to the existing 
Reliability Standards comprising the same base training requirements as 
contained in the new Reliability Standards. The Commission does not 
consider this a substantial number. Further, few if any of the seven 
reliability coordinators are small entities. Based on the foregoing, 
the Commission certifies that this Final Rule will not have a 
significant impact on a substantial number of small

[[Page 72678]]

entities. Accordingly, no regulatory flexibility analysis is required.

VI. Document Availability

    95. 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, DChttp://www.nerc.com/page.php?cid=2|20 20426.
    96. 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.
    97. User assistance is available for eLibrary and the FERC's Web 
site during normal business hours from FERC Online Support at (http://www.nerc.com/page.php?cid=2|202) 
502-6652 (toll free at 1-866-http://www.nerc.com/page.php?cid=2|208-3676) or e-mail at 
ferconlinesupport@ferc.gov, or the Public Reference Room at (http://www.nerc.com/page.php?cid=2|202) 502-
8371, TTY (http://www.nerc.com/page.php?cid=2|202) 502-8659. E-mail the Public Reference Room at 
public.referenceroom@ferc.gov.

VII. Effective Date and Congressional Notification

    98. These regulations are effective January 25,http://www.nerc.com/page.php?cid=2|20 2011. The 
Commission notes that although the determinations made in this Final 
Rule are effective January 25,http://www.nerc.com/page.php?cid=2|20 2011, Reliability Standard PER-004-2 
approved in this final rule will not become effective until the first 
day of the first calendar quarter after regulatory approval and that 
Reliability Standard PER-005-1 approved in this final rule will become 
effective on a staggered basis, as identified in Appendix B, with the 
earliest effective date being first day of the first calendar quarter 
after regulatory approval for PER-005-1, Requirement R3. 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.

Nathaniel J. Davis, Sr.,
Deputy Secretary.

Appendix A: Commenting Party Acronyms

------------------------------------------------------------------------
         Abbreviation                          Commenter
------------------------------------------------------------------------
APPA.........................  American Public Power Association.
Associated Electric..........  Associated Electric Cooperative, Inc.
BGE..........................  Baltimore Gas and Electric Co.
BPA..........................  Bonneville Power Administration.
Constellation................  Constellation Power Source Generation,
                                Inc., Constellation Energy Commodities
                                Group, Inc., Constellation NewEnergy,
                                Inc., and Constellation Energy Nuclear
                                Group, LLC.
Dominion.....................  Dominion Resources Services, Inc. on
                                behalf of its affiliates.
EEI..........................  Edison Electric Institute.
E.ON.........................  E.ON U.S. LLC.
EPSA.........................  Electric Power Supply Association.
GSOC & GTC...................  Georgia System Operations Corp. and
                                Georgia Transmission Corp.
IESO.........................  Ontario Independent Electricity System.
ISO/RTO Council..............  ISO/RTO Council.
ITC..........................  International Transmission Company d/b/a
                                ITCTransmission, Michigan Electric
                                Transmission Company, LLC, ITC Midwest
                                LLC, and ITC Great Plains, LLC.
KCP&L........................  Kansas City Power & Light Company and
                                KCP&L Greater Missouri Operations
                                Company.
MidAmerican..................  MidAmerican Energy Holdings Company.
Minnesota Power..............  Minnesota Power.
Montana-Dakota...............  Montana-Dakota Utilities Co.
NRECA........................  National Rural Electric Cooperative
                                Assoc.
NV Energy....................  Nevada Power Company and Sierra Pacific
                                Power Co.
NERC.........................  North American Electric Reliability
                                Corporation.
NorthWestern.................  NorthWestern Corp d/b/a/ NorthWestern
                                Energy.
PG&E.........................  Pacific Gas and Electric Co.
Platte River.................  Platte River Power Authority.
Portland.....................  Portland General Electric Co.
SPP..........................  Southwest Power Pool, Inc.
Westar.......................  Westar Energy, Inc. and Kansas Gas and
                                Electric Co.
WECC.........................  Western Electricity Coordinating Council.
Wisconsin Electric...........  Wisconsin Electric Power Co.
------------------------------------------------------------------------

Appendix B

                                                  Coordination of Retirement and Effective Dates Table
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                    Date for concurrent
    Existing approved  standard       Requirement to be retired or        Proposed  standard           New requirement to be          retirement and
                                                replaced                                                    implemented               implementation
--------------------------------------------------------------------------------------------------------------------------------------------------------
PER-002-0..........................  R1                             PER-005-1                      R1                             1st calendar quarter
                                                                                                                                   24 months after
                                                                                                                                   regulatory approval.
                                     R2                             .............................  R1.1
                                     R3                             .............................  R1.1.1
                                     R3.1                           .............................  R1.2
                                     R3.2                           .............................  R1.3
                                     R3.3                           .............................  R1.4
                                     R3.4                           .............................  R2

[[Page 72679]]

 
                                     .............................  .............................  R2.1
PER-004-1..........................  R3
                                     R4
PER-002-0..........................  R4                             PER-005-1                      R3                             1st day of 1st
                                                                                                                                   calendar quarter
                                                                                                                                   after regulatory
                                                                                                                                   approval.
PER-004-1..........................  R2                             .............................  .............................
PER-004-1..........................  R1                             PER-004-2                      R1                             1st day of 1st
                                                                                                                                   calendar quarter
                                                                                                                                   after regulatory
                                                                                                                                   approval.
                                     R5                             .............................  R2
N/A................................  N/A                            PER-005-1                      R3.1                           1st day of 1st
                                                                                                                                   calendar quarter 36
                                                                                                                                   months after
                                                                                                                                   regulatory approval.
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[FR Doc.http://www.nerc.com/page.php?cid=2|20 2010-29717 Filed 11-24-10; 8:45 am]
BILLING CODE 6717-01-P


