
[Federal Register Volume 75, Number 245 (Wednesday, December 22, 2010)]
[Proposed Rules]
[Pages 80397-80409]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-32157]



[[Page 80397]]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

18 CFR Part 40

[Docket No. RM09-9-000]


Version One Regional Reliability Standards for Facilities Design, 
Connections, and Maintenance; Protection and Control; and Voltage and 
Reactive

December 17, 2010.
AGENCY: Federal Energy Regulatory Commission, DOE.

ACTION: Notice of proposed rulemaking.

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SUMMARY: Under section 215 of the Federal Power Act, the Commission 
proposes to approve four revised regional Reliability Standards 
developed by the Western Electricity Coordinating Council and approved 
by the North American Electric Reliability Corporation, which the 
Commission has certified as the Electric Reliability Organization 
responsible for developing and enforcing mandatory Reliability 
Standards. These regional Reliability Standards have been designated by 
WECC as FAC-501-WECC-1--Transmission Maintenance, PRC-004-WECC-1--
Protection System and Remedial Action Scheme Misoperation, VAR-002-
WECC-1--Automatic Voltage Regulators, and VAR-501-WECC-1--Power System 
Stabilizer. Proposed FAC-501-WECC-1 addresses transmission maintenance 
for specified transmission paths in the Western Interconnection. 
Proposed PRC-004-WECC-1 addresses the analysis of misoperations that 
occur on transmission and generation protection systems and remedial 
action schemes in the Western Interconnection. Proposed VAR-002-WECC-1 
is meant to ensure that automatic voltage regulators remain in service 
on synchronous generators and condensers in the Western 
Interconnection. Proposed VAR-501-WECC-1 is meant to ensure that power 
system stabilizers remain in service on synchronous generators in the 
Western Interconnection. In addition, under section 215(d)(5) of the 
Federal Power Act, the Commission proposes to direct the Western 
Electricity Coordinating Council, working through its standards 
development process, to develop modifications to these to regional 
Reliability Standards to address specific issues, as discussed below.

DATES: Comments are due February 22, 2011.

ADDRESSES: You may submit comments, identified by docket number and in 
accordance with the requirements posted on the Commission's Web site, 
http://www.ferc.gov. Comments may be submitted by any of the following 
methods:
     Agency Web Site: Documents created electronically using 
word processing software should be filed in native applications or 
print-to-PDF format, and not in a scanned format, at http://www.ferc.gov/docs-filing/efiling.asp.
     Mail/Hand Delivery: Commenters unable to file comments 
electronically must mail or hand-deliver an original copy of their 
comments to: Federal Energy Regulatory Commission, Secretary of the 
Commission, 888 First Street, NE., Washington, DC 20426. These 
requirements can be found on the Commission's Web site, see, e.g., the 
``Quick Reference Guide for Paper Submissions,'' available at http://www.ferc.gov/docs-filing/efiling.asp or via phone from FERC Online 
support at (202) 502-6652 or toll-free at 1-866-208-3676.

FOR FURTHER INFORMATION CONTACT:
A. Cory Lankford (Legal Information) Office of the General Counsel, 
Federal Energy Regulatory Commission, 888 First Street, NE., 
Washington, DC 20426, (202) 502-6711.
Nick Henery (Technical Information), Office of Electric Reliability, 
Federal Energy Regulatory Commission, 888 First Street, NE., 
Washington, DC 20426, (202) 502-8636.
Danny Johnson (Technical Information), Office of Electric Reliability, 
Federal Energy Regulatory Commission, 888 First Street, NE., 
Washington, DC 20426, (202) 502-8892.
Scott Sells (Technical Information), Office of Electric Reliability, 
Federal Energy Regulatory Commission, 888 First Street, NE., 
Washington, DC 20426, (202) 502-6664.

SUPPLEMENTARY INFORMATION:

Table of Contents

 
                                                              Paragraph
                                                                 Nos.
 
I. Background..............................................            3
    A. Mandatory Reliability Standards.....................            3
    B. Western Electricity Coordinating Council............            6
II. Proposed Regional Reliability Standards................            8
III. Discussion............................................           10
    A. FAC-501-WECC-1--Transmission Maintenance............           11
    B. PRC-004-WECC-1--Protection System and Remedial                 25
     Action Scheme Misoperation............................
    C. VAR-002-WECC-1--Automatic Voltage Regulators........           42
    D. VAR-501-WECC-1--Power System Stabilizer.............           65
IV. Information Collection Statement.......................           88
V. Environmental Analysis..................................           92
VI. Regulatory Flexibility Act Certification...............           93
VII. Comment Procedures....................................           94
VIII. Document Availability................................           98
 

    1. Under section 215 of the Federal Power Act (FPA),\1\ the 
Commission proposes to approve four revised regional Reliability 
Standards developed by the Western Electricity Coordinating Council 
(WECC) and approved by the North American Electric Reliability 
Corporation (NERC), which the Commission has certified as the Electric 
Reliability Organization (ERO) responsible for developing and enforcing 
mandatory Reliability Standards.\2\ These regional Reliability 
Standards have been designated by WECC as FAC-501-WECC-1--Transmission 
Maintenance, PRC-004-WECC-1--Protection System and Remedial Action 
Scheme Misoperation, VAR-002-WECC-1--Automatic Voltage Regulators, and 
VAR-501-WECC-1--Power System Stabilizer. Proposed FAC-501-WECC-1 
addresses transmission maintenance for specified transmission paths in 
the Western

[[Page 80398]]

Interconnection. Proposed PRC-004-WECC-1 addresses the analysis of 
misoperations that occur on transmission and generation protection 
systems and remedial action schemes in the Western Interconnection. 
Proposed VAR-002-WECC-1 is meant to ensure that automatic voltage 
regulators remain in service on synchronous generators and condensers 
in the Western Interconnection. Proposed VAR-501-WECC-1 is meant to 
ensure that power system stabilizers remain in service on synchronous 
generators in the Western Interconnection. Under section 215(d)(5) of 
the Federal Power Act, the Commission proposes to direct WECC, through 
its standard development process, to develop modifications to these 
regional Reliability Standards to address specific issues, as discussed 
below.
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    \1\ 16 U.S.C. 824o (2006).
    \2\ North American Electric Reliability Corp., 116 FERC ] 
61,062, order on reh'g & compliance, 117 FERC ] 61,126 (2006), aff'd 
sub nom. Alcoa, Inc. v. FERC, 564 F.3d 1342 (D.C. Cir. 2009).
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    2. Related, the Commission also seeks comment on whether it should 
direct the ERO to develop modifications to the NERC Reliability 
Standards addressing the use of automatic voltage regulators and power 
system stabilizers. The Commission's concerns regarding the NERC 
Reliability Standard are introduced here as they correspond with 
certain elements of the WECC standards that are the subject of the 
immediate proceeding. However, any proposal to direct the development 
of modifications to the NERC Reliability Standards would be addressed 
in a separate proceeding.

I. Background

A. Mandatory Reliability Standards

    3. Section 215 of the FPA requires a Commission-certified ERO to 
develop mandatory and enforceable Reliability Standards, which are 
subject to Commission review and approval. Once approved, the 
Reliability Standards may be enforced by the ERO, subject to Commission 
oversight, or by the Commission independently.\3\
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    \3\ 16 U.S.C. 824o(e)(3).
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    4. Reliability Standards that the ERO proposes to the Commission 
may include Reliability Standards that are proposed to the ERO by a 
Regional Entity to be effective in that region.\4\ A Regional Entity is 
an entity that has been approved by the Commission to enforce 
Reliability Standards under delegated authority from the ERO.\5\ When 
the ERO reviews a regional Reliability Standard that would be 
applicable on an interconnection-wide basis and that has been proposed 
by a Regional Entity organized on an interconnection-wide basis, the 
ERO must rebuttably presume that the regional Reliability Standard is 
just, reasonable, not unduly discriminatory or preferential, and in the 
public interest.\6\ In turn, the Commission must give ``due weight'' to 
the technical expertise of the ERO and of a Regional Entity organized 
on an interconnection-wide basis.\7\
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    \4\ 16 U.S.C. 824o(e)(4).
    \5\ 16 U.S.C. 824o(a)(7) and (e)(4).
    \6\ 18 CFR 39.5 (2010).
    \7\ 16 U.S.C. 824o(d)(2).
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    5. In Order No. 672, the Commission urged uniformity of Reliability 
Standards, but recognized a potential need for regional differences.\8\ 
Accordingly, the Commission stated that:
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    \8\ Rules Concerning Certification of the Electric Reliability 
Organization; Procedures for the Establishment, Approval, and 
Enforcement of Electric Reliability Standards, Order No. 672, 71 FR 
8662 (Feb. 17, 2006), FERC Stats. & Regs. ] 31,204, at P 290, order 
on reh'g, Order No. 672-A, 71 FR 19814 (Apr. 18, 2006), FERC Stats. 
& Regs. ] 31,212 (2006).

    As a general matter, we will accept the following two types of 
regional differences, provided they are otherwise just, reasonable, 
not unduly discriminatory or preferential and in the public 
interest, as required under the statute: (1) A regional difference 
that is more stringent than the continent-wide Reliability Standard, 
including a regional difference that addresses matters that the 
continent-wide Reliability Standard does not; and (2) a regional 
Reliability Standard that is necessitated by a physical difference 
in the Bulk-Power System.\9\
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    \9\ Id. P 291.
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B. Western Electricity Coordinating Council

    6. On April 19, 2007, the Commission accepted delegation agreements 
between NERC and each of eight Regional Entities.\10\ In its order, the 
Commission accepted WECC as a Regional Entity organized on an 
Interconnection-wide basis. As a Regional Entity, WECC oversees 
transmission system reliability in the Western Interconnection. The 
WECC region encompasses nearly 1.8 million square miles, including 14 
western U.S. states, the Canadian provinces of Alberta and British 
Columbia, and the northern portion of Baja California in Mexico.
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    \10\ North American Electric Reliability Corp., 119 FERC ] 
61,060, at P 432 (2007).
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    7. In June 2007, the Commission approved eight regional Reliability 
Standards for WECC including the currently-effective WECC PRC-STD-001-
1, PRC-STD-003-1, PRC-STD-005-1, VAR-STD-002a-1, and VAR-STD-002b-
1.\11\ The Commission directed WECC to develop certain modifications to 
WECC PRC-STD-001-1, PRC-STD-003-1, PRC-STD-005-1, VAR-STD-002a-1, and 
VAR-STD-002b-1, as identified by NERC in its filing letter for the 
current standards.\12\ For example, the Commission determined that: (1) 
Regional definitions should conform to definitions set forth in the 
NERC Glossary of Terms Used in Reliability Standards (NERC Glossary), 
unless a specific deviation has been justified; and (2) documents that 
are referenced in the Reliability Standard should be attached to the 
Reliability Standard. The Commission also found that it is important 
that regional Reliability Standards and NERC Reliability Standards 
achieve a reasonable level of consistency in their structure so that 
there is a common understanding of the elements.
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    \11\ North American Electric Reliability Corp., 119 FERC ] 
61,260 (2007).
    \12\ Id.
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II. Proposed Regional Reliability Standards

    8. On March 25, 2009, NERC submitted a petition (NERC Petition) to 
the Commission seeking approval of four WECC regional Reliability 
Standards.\13\ The four proposed WECC regional Reliability Standards 
are designated as FAC-501-WECC-1, PRC-004-WECC-1, VAR-002-WECC-1, and 
VAR-501-WECC-1.\14\ In its petition, NERC explains that the four 
proposed regional Reliability Standards are meant to replace certain 
currently approved regional Reliability Standards:
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    \13\ See 18 CFR 39.5(a) (requiring the ERO to submit regional 
Reliability Standards on behalf of a Regional Entity).
    \14\ The proposed regional Reliability Standards are not 
attached to the NOPR. They are, however, available on the 
Commission's eLibrary document retrieval system in Docket No. RM09-
9-000 and are posted on the ERO's Web site, available at http://www.nerc.com.
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     FAC-501-WECC-1 is intended to replace the current approved 
PRC-STD-005-1;
     PRC-004-WECC-1 is intended to replace WECC PRC-STD-001-1 
and PRC-STD-003-1;
     VAR-002-WECC-1 is intended to replace WECC VAR-STD-002a-1; 
and
     VAR-501-WECC-1 is intended to replace WECC VAR-STD-002b-1.
    NERC states that the NERC board of trustees approved the proposed 
regional Reliability Standards on October 29, 2008, on the condition 
that WECC address certain shortcomings raised during the comment 
periods in the next revision of the Reliability Standards.
    9. NERC requests an effective date for FAC-501-WECC-1, VAR-002-
WECC-1, and VAR-501-WECC-1 of the first day of the first quarter after 
Commission approval. For PRC-004-WECC-1, NERC requests an effective 
date of the first day of the second quarter after approval by the 
Commission.

[[Page 80399]]

III. Discussion

    10. As discussed below, the Commission proposes to approve FAC-501-
WECC-1, PRC-004-WECC-1, VAR-002-WECC-1, and VAR-501-WECC-1 as just, 
reasonable, not unduly discriminatory or preferential, and in the 
public interest. In addition, under section 215(d)(5) of the FPA and 
section 39.5(f) of our regulations, the Commission proposes to direct 
WECC to develop certain modifications to further clarify the 
requirements of the proposed WECC regional Reliability Standards.

A. FAC-501-WECC-1--Transmission Maintenance

    11. NERC PRC-005-1 applies to all transmission and generator owners 
as well as distribution providers that own a transmission protection 
system. The Reliability Standard is meant to ensure that all 
transmission and generation protection systems affecting the 
reliability of the Bulk-Power System are maintained and tested.
    12. On June 8, 2007, the Commission approved a WECC regional 
Reliability Standard that corresponds to the NERC Reliability Standard 
PRC-005-1.\15\ WECC PRC-STD-005-1 applies to transmission owners and 
operators identified in an attached table titled ``Major WECC Transfer 
Paths in the Bulk Electric System'' (WECC Transfer Path Table) and to 
owners of remedial action schemes identified in the ``Major WECC 
Remedial Action Schemes'' table (WECC Remedial Action Schemes Table). 
WECC PRC-STD-005-1 requires each transmission owner and operator of the 
specified transmission paths to perform maintenance and inspection on 
those paths as described by its transmission maintenance and inspection 
plan. The regional Reliability Standard identifies specific contents 
that each applicable transmission owner and transmission operator must 
include in its transmission maintenance and inspection plan. For 
example, a plan must include the scheduled interval for time-based 
maintenance, describe maintenance and inspection methods, provide 
relevant checklists or forms, and provide criteria for assessing the 
condition of a facility. Each applicable entity must retain all 
pertinent maintenance and inspection records for at least five years. 
Further each applicable entity must annually certify to WECC staff that 
it has developed, documented, and implemented a transmission 
maintenance and inspection plan.
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    \15\ North American Electric Reliability Corp., 119 FERC ] 
61,260 at P 95.
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WECC and NERC Proposal
    13. NERC states that proposed FAC-501-WECC-1 is intended to replace 
approved WECC PRC-STD-005-1. The proposed regional Reliability Standard 
would apply to transmission owners that maintain transmission paths 
listed in the WECC Transfer Path Table, which is no longer an 
attachment to the Reliability Standard but is maintained on the WECC 
Web site. Proposed FAC-501-WECC-1 contains three main provisions. 
Requirement R1 provides that each transmission owner must have a 
transmission, maintenance, and inspection plan, and each transmission 
owner must annually review and update as required their transmission 
maintenance and inspection plan. Requirement R2 states that each 
transmission owner must include specified maintenance categories \16\ 
when developing their transmission maintenance and inspection plan. 
Requirement 3 states that each transmission owner must implement and 
follow their transmission maintenance and inspection plan.
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    \16\ The maintenance categories to be included in the 
transmission maintenance and inspection plan are included in 
Attachment 1 of FAC-501-WECC-1--``Transmission Line and Station 
Maintenance Details.''
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    14. NERC recommends approval of FAC-501-WECC-1, stating that the 
proposed regional Reliability Standard addresses matters that the NERC 
Reliability Standard does not. Specifically, according to NERC, FAC-
501-WECC-1 requires, for specified transmission paths, a highly 
detailed maintenance and inspection plan for all transmission and 
substation equipment components, beyond the relay and communication 
system maintenance and testing required by the corresponding NERC 
Reliability Standard.\17\
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    \17\ NERC Petition at 11, 14.
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NOPR Proposal
    15. The Commission proposes to approve FAC-501-WECC-1 as just, 
reasonable, not unduly discriminatory or preferential, and in the 
public interest. As explained by NERC, proposed FAC-501-WECC-1 appears 
to be more stringent, by virtue of its requirement for a highly 
detailed maintenance and inspection plan, compared to the corresponding 
NERC Reliability Standard.
    16. Further, in approving the currently-effective WECC PRC-STD-005-
1, the Commission directed WECC to make certain modifications to the 
regional Reliability Standard. To address these directives, the 
proposed regional Reliability Standard no longer references any WECC 
Forms, and text regarding the Compliance Monitoring Period has been 
removed. The proposed regional Reliability Standard no longer refers to 
a regional definition of Disturbance, which conflicted with the 
definition of Disturbance in the NERC Glossary. Since the term is not 
included in any of the proposed regional Reliability Standards, the 
Commission proposes to direct the ERO to remove this regional 
definition from the NERC Glossary of terms upon Commission approval of 
FAC-501-WECC-1. The proposed regional Reliability Standard also removes 
the Sanctions Table and includes Violation Risk Factors, Violation 
Severity Levels, Measures, and Time Horizons, as directed by the 
Commission. These revisions appear generally consistent with the 
Commission's directives, and signify meaningful improvement. 
Accordingly, we propose to approve FAC-501-WECC-1. We also propose to 
approve NERC's petition to retire currently-effective WECC PRC-STD-005-
1.
    17. While we propose to approve FAC-501-WECC-1, we have several 
concerns regarding the requirements of the proposed regional 
Reliability Standard that were not adequately addressed in the NERC 
petition. Below, we discuss our concerns and, in the absence of a 
satisfactory explanation from WECC, NERC and other commenters, under 
section 215(d)(5) of the FPA and section 39.5(f) of our regulations, we 
propose to direct that the Regional Entity develop modifications to the 
regional Reliability Standard, as discussed below.
WECC Transfer Path Table
    18. First, we have a concern regarding the applicability of the 
proposed regional Reliability Standard. As mentioned above, WECC PRC-
STD-005-1 is applicable to transmission owners or operators that 
maintain transmission paths listed in the WECC Transfer Path Table, 
which is attached to the regional Reliability Standard. The attachment 
identifies 40 major transmission paths in the Western Interconnection. 
By contrast, FAC-501-WECC-1 removes the attachment and, instead, 
directs transmission owners to the most current WECC Transfer Path 
Table, which is available on the WECC Web site. The table currently 
posted on the WECC Web site identifies the same 40 major paths as the 
attachment to the approved regional Reliability

[[Page 80400]]

Standard.\18\ However, the Commission is concerned that, by referencing 
the WECC Transfer Path Table posted on the WECC Web site, the 
applicability of FAC-501-WECC-1 could change without review and 
approval by the ERO and the Commission, as required to make effective a 
modification to a Reliability Standard.
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    \18\ See Major WECC Transfer Paths table available at http://www.wecc.biz/Standards/Approved%20Standards/Supporting%20Tables/Table%20Major%20Paths%204-28-08.pdf. It appears that the list of 
major transfer paths is relatively stable as the list has not 
changed for at least the past three years.
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    19. The possibility for the applicability of the Reliability 
Standard to change at any time could create confusion for entities that 
need to comply as well as any compliance enforcement staff trying to 
determine which entities are responsible for complying with the 
Reliability Standard. Under section 215(d)(5) of the FPA, we propose to 
direct that WECC develop a modification to the Reliability Standard to 
address our concern. For example, WECC could include its criterion for 
identifying and modifying major transmission paths listed in the WECC 
Transfer Path Table and make an informational filing each time it makes 
a modification to the table. Another option would be for WECC to file 
its criterion with the Commission and post revised transfer path tables 
and referenced catalogs on its Web site before they become effective 
with concurrent notification to NERC and the Commission. Alternatively, 
the Regional Entity could include the WECC Transfer Path Table as an 
attachment to the modified Reliability Standard. In this way, the 
Commission would be able to verify that the Regional Entity is applying 
the requirements of the regional Reliability Standard in a just and 
reasonable manner.
System Operating Limits (SOL)
    20. Second, the Commission is concerned about WECC's use of the 
term System Operating limit, as it is defined in the NERC Glossary.\19\ 
Currently, WECC determines transfer capability based on a ``rated 
system path'' methodology and the table of Major WECC Transfer Paths 
and associated catalog identify the facilities that make up each rated 
system path. For at least ten years, WECC has used the defined term 
Operating Transfer Capability limits, and not System Operating Limit, 
to describe transmission limitations. WECC TOP-STD-007-0 defines 
Operating Transfer Capability limits as:
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    \19\ A System Operating Limit is defined in the NERC Glossary as 
``the value (such as MW, MVar, Amperes, Frequency or Volts) that 
satisfies the most limiting of the prescribed operating criteria for 
a specified system configuration to ensure operation within 
acceptable reliability criteria.'' See NERC Glossary, available at 
http://www.nerc.com/docs/standards/rs/Glossary_of_Terms_2010April20.pdf.

    * * * the maximum amount of actual power that can be transferred 
over direct or parallel transmission elements comprising:
     An interconnection from one Transmission Operator area 
to another Transmission Operator area; or
     A transfer path within a Transmission Operator area.
    The net schedule over an interconnection or transfer path within 
a Transmission Operator area shall not exceed the [operating 
transfer capability], regardless of the prevailing actual power flow 
on the interconnection or transfer path.

    Unlike a System Operating Limit, the definition of Operating 
Transfer Capability limits is limited to direct or parallel 
transmission elements between or within specific transmission 
operators. Moreover, the rating of a System Operating Limit, which is 
based on an operating criteria that is either thermally (based on 
facility ratings) or stability-based (based on transient stability, 
voltage stability, or system voltage limits) is the first element to 
calculate in order to determine the Operating Transfer Capability limit 
rating.
    21. Based on the above, it appears that a System Operating Limit is 
not the same as an Operating Transfer Capability limit. Yet, WECC and 
NERC believe that the terms can be used interchangeably and that WECC 
revised the regional Reliability Standard to refer to System Operating 
Limits to conform its terminology to the NERC Glossary. While we 
believe using NERC Glossary terminology is generally preferable,\20\ we 
are concerned that, in this instance, the use of a regional definition 
might be most appropriate.
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    \20\ See W. Elec. Coordinating Council Reg'l Reliability 
Standard Regarding Automatic Time Error Corr., Order No. 723, 74 FR 
25442 (May 28, 2009), 127 FERC ] 61,176, at P 38-40 (2009).
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    22. Specifically, the Commission is concerned that the introduction 
of the NERC Glossary definition of System Operating Limit in 
Requirement R1 of the proposed regional Reliability Standard could 
create confusion regarding which transmission owners are required to 
maintain a transmission maintenance and inspection plan. Requirement R1 
of the approved WECC Reliability Standard requires transmission owners 
to inspect and maintain ``all bulk power transmission elements (i.e., 
lines, stations and rights of way) included as part of the transmission 
facilities (or required to maintain transfer capability) impacting each 
of the transmission paths listed * * *.'' \21\ By contrast, Requirement 
R1 of WECC's proposed regional Reliability Standard would require 
transmission owners to maintain a transmission maintenance and 
inspection plan detailing their inspection and maintenance requirements 
that ``apply to all transmission facilities necessary for System 
Operating Limits associated with each of the transmission paths 
identified in the WECC Transfer Path Table.'' \22\ Facilities that are 
System Operating Limits associated with transmission paths identified 
in the WECC Transfer Path Table are not necessarily on paths identified 
in the WECC Transfer Path Table.
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    \21\ WECC Reliability Standard PRC-STD-005-1, Requirement R1.
    \22\ Proposed WECC Reliability Standard, FAC-501-WECC-1, 
Requirement R1, emphasis added.
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    23. Thus, under the proposed language, Requirement R1 could apply 
to more transmission facilities than identified in the WECC Transfer 
Path Table. For example, a System Operating Limit for a rated path in 
the WECC Transfer Path Table could be defined by a facility on a path 
that is not identified in the WECC Transfer Path Table but which is 
associated with an identified path. Under these circumstances, it is 
unclear whether Requirement R1 would require maintenance on these 
facilities that are not identified in the WECC Transfer Path Table. If 
so, the requirement might need to apply to transmission owners that do 
not own any paths identified in the WECC Transfer Path Table. 
Accordingly, the Commission seeks comment as to whether, under 
Requirement R1, a transmission owner that owns a major path would be 
responsible for maintaining and inspecting transmission facilities 
owned by another entity if such facilities are ``necessary for [System 
Operating Limits] associated with'' the major path.
Summary
    24. In summary, the Commission proposes to approve FAC-501-WECC-1. 
The Commission also proposes to approve NERC's petition to retire 
currently-effective WECC PRC-STD-005-1. In addition, the Commission 
requests comment on two issues discussed above regarding the (1) Major 
WECC Transfer Path table, and (2) use of the term System Operating 
Limits.

[[Page 80401]]

B. PRC-004-WECC-1--Protection System and Remedial Action Scheme 
Misoperation

Background--Currently-Effective PRC-STD-001-1 and PRC-STD-003-1
    25. Currently-effective WECC PRC-STD-001-1 applies to transmission 
operators or transmission owners of 40 specified transmission paths. 
The regional Reliability Standard requires these entities to certify to 
WECC that all (1) protective relay applications and (2) protective 
relay settings and logic are appropriate for the specified transmission 
paths. It also requires that these entities, once every three years, 
certify that information is updated and accurate.
    26. WECC PRC-STD-001-1 corresponds with NERC PRC-001-1, which 
addresses protection systems, requires transmission operators and 
generator operators to notify appropriate entities of relay or 
equipment failures and to coordinate when installing new or modified 
protection systems.
    27. Currently-effective WECC PRC-STD-003-1 applies to transmission 
operators and owners of the same 40 specified transmission paths as 
Reliability Standard PRC-STD-001-1. WECC PRC-STD-003-1 requires 
applicable transmission operators and owners to ensure all transmission 
and generation protection system misoperations affecting the 
reliability of the bulk electric system are analyzed and mitigated.
    28. WECC PRC-STD-003-1 corresponds to NERC PRC-003-1, which also 
relates to protection system misoperations.
WECC and NERC Proposal
    29. NERC states that proposed PRC-004-WECC-1 is intended to replace 
two currently-effective WECC Reliability Standards, PRC-STD-001-1 and 
PRC-STD-003-1. NERC recommends approval of PRC-004-WECC-1, explaining 
that it is more stringent than the corresponding NERC PRC-004-1. 
Specifically, NERC explains that PRC-004-WECC-1 requires that all 
transmission and generation protection system and remedial action 
scheme misoperations on major WECC transfer paths be analyzed and 
mitigated within a specific timeframe. In contrast, NERC PRC-003-1 
requires Regional Entities to establish procedures for review, 
analysis, reporting, and mitigation of transmission and generation 
Protection System Misoperations, but it does not specifically address 
the owners of the transmission and generation facilities. NERC also 
explains that NERC PRC-004-1 has requirements for protection system 
misoperations, but does not provide for the additional requirements 
included in PRC-004-WECC-1.\23\
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    \23\ See NERC Petition at 11, 19-20.
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    30. Proposed PRC-004-WECC-1 contains three main provisions. 
Requirement R1 provides that ``System Operators and System Protection 
Personnel'' of transmission owners and generator owners must analyze 
all protection system and remedial action scheme operations. 
Requirements R1.1 and R1.2 identify time limits for the review and 
analysis of transmission element tripping, remedial action scheme 
operations and protection systems. Requirement R2 and the associated 
sub-requirements identify actions expected to be performed by 
transmission owners and generator owners for each protection system or 
remedial action scheme misoperation, including identifying timelines 
for removing the equipment that failed from service. Requirement R3 
states that transmission owners and generator owners are to submit 
incident reports for any misoperation or repair of equipment that 
misoperated.
    31. Like the approved regional Reliability Standard, the proposed 
regional Reliability Standard is applicable to transmission owners and 
transmission operators, but it also is applicable to the generator 
owners that own facilities listed in the WECC Transfer Path Table and 
the WECC Remedial Action Schemes Table, which are available on WECC's 
Web site.\24\ In addition, WECC proposes four new regional definitions 
for Functionally Equivalent Protection System, Functionally Equivalent 
Remedial Action Scheme, Security-Based Misoperation and Dependability 
Based Misoperation.
---------------------------------------------------------------------------

    \24\ See proposed regional Reliability Standard PRC-004-WECC-1, 
Section 4 (Applicability).
---------------------------------------------------------------------------

NOPR Proposal
    32. The Commission proposes to approve PRC-004-WECC-1 as just, 
reasonable, not unduly discriminatory or preferential, and in the 
public interest. The Commission also proposes to approve NERC's 
petition to withdraw currently-effective WECC PRC-STD-001-1 and WECC 
PRC-STD-003-1. As NERC explains above, it appears that the proposed 
PRC-004-WECC-1 is more stringent than the corresponding NERC PRC-004-1. 
Moreover, the proposed PRC-004-WECC-1 addresses Commission directives 
to develop modifications to the currently-effective regional 
Reliability Standards.
    33. Specifically, in approving the currently-effective WECC PRC-
STD-001-1 and WECC PRC-STD-003-1, the Commission directed WECC to make 
certain modifications in developing replacement Reliability Standards. 
To address these directives, in the proposed Standard, WECC no longer 
references any WECC forms, and the text regarding the compliance 
monitoring period has been removed from the proposed Standard. In 
addition, the proposed regional Reliability Standard no longer 
references the regional definition of Disturbance, which did not match 
the NERC definition of Disturbance in the NERC Glossary. The proposed 
regional Reliability Standard also would remove the definition for 
Business Day. Since these terms are not included in any of the existing 
or proposed regional Reliability Standards, the Commission proposes to 
direct the ERO to remove these regional definitions from the NERC 
Glossary, upon approval of the PRC-004-WECC-1. The proposed regional 
Reliability Standard also removes the sanctions table and includes 
violation risk factors, violation severity levels, measures and time 
horizons. The Commission commends WECC for addressing these directives.
    34. Nevertheless, the Commission has concerns regarding several 
provisions of the proposed regional Reliability Standard, and seeks 
additional comments, as discussed below.
WECC Transfer Path Table
    35. Similar to the discussion above regarding proposed FAC-501-
WECC-1, we are concerned regarding the removal of the list of major 
transmission paths from proposed PRC-004-WECC-1 and the replacement 
with a link to the WECC Web site. Currently-effective WECC PRC-STD-003-
1 is applicable to transmission owners or operators that maintain 
transmission paths listed in an attachment to the Reliability Standard. 
The attachment identifies 40 major transmission paths in the Western 
Interconnection. By contrast, the proposed PRC-004-WECC-1 removes 
attachment A and, instead, directs transmission owners to the most 
current WECC Transfer Path Table, which is available on the WECC Web 
site. Although the table posted on the WECC Web site lists the same 40 
major paths as the attachment to the approved regional Reliability 
Standard, the Commission is concerned that by referencing the WECC 
Transfer Path Table posted on the WECC Web site, WECC could modify the 
document without Commission and industry notice and opportunity to 
respond.
    36. The possibility for the applicability of the Reliability 
Standard

[[Page 80402]]

to change at any time could create confusion for entities that need to 
comply as well as any compliance enforcement staff trying to determine 
which entities are responsible for complying with the Reliability 
Standard. Accordingly, the Commission seeks comment on how NERC and 
WECC intend to develop and provide notice of proposed changes to the 
WECC Transfer Path Table. We also seek comment on how NERC and WECC 
will ensure that changes to the applicability of the Reliability 
Standard will not undermine its effectiveness. We propose to direct 
WECC to develop a modification to the Reliability Standard to address 
our concern. For example, WECC could include its criterion for 
identifying and modifying major transmission paths listed in the WECC 
Transfer Path Table and make an informational filing each time it makes 
a modification to the table. Another option would be for WECC to file 
its criterion with the Commission and post revised transfer path tables 
and referenced catalogs on its Web site before they become effective 
with concurrent notification to NERC and the Commission. Alternatively, 
the Regional Entity could include the WECC Transfer Path Table as an 
attachment to the modified Reliability Standard. In this way, the 
Commission would be able to verify that the Regional Entity is applying 
the requirements of the regional Reliability Standard in a just and 
reasonable manner.
Proposed Regional Definitions
    37. The proposed regional Reliability Standard includes four new 
regional definitions meant to apply only in WECC. Two of the proposed 
definitions (Functionally Equivalent Protection System and Functionally 
Equivalent Remedial Action Scheme) have added ``functionally 
equivalent'' to terms that already exist in the NERC Glossary.\25\ The 
NERC Glossary definition of Protection System lists the types of 
equipment that can be used as protection systems (i.e. protective 
relays, associated communication systems, voltage and current sensing 
devices, station batteries and DC control circuitry). By contrast, the 
proposed WECC definition of Functionally Equivalent Protection System 
is not limited to any specific components or operating characteristics 
but, instead, defines Functionally Equivalent Protection Systems based 
on what they can do: ``[e]ach Protection System can detect the same 
faults within the zone of protection and provide the clearing times and 
coordination needed to comply with all Reliability Standards.'' In 
addition, the NERC Glossary defines Remedial Action Scheme, or Special 
Protection System, as ``[a]n automatic protection system designed to 
detect abnormal or predetermined system conditions, and take corrective 
actions other than and/or in addition to the isolation of faulted 
components to maintain system reliability.'' \26\ By contrast, WECC 
proposes to define Functionally Equivalent RAS as ``[a] Remedial Action 
Scheme that provides the same performance as follows: Each [Remedial 
Action Scheme] can detect the same conditions and provide mitigation to 
comply with all Reliability Standards. Each [Remedial Action Scheme] 
may have different components and operating characteristics.''
---------------------------------------------------------------------------

    \25\ See NERC Glossary definitions for Protection System and 
Remedial Action Scheme.
    \26\ NERC Glossary definition of Special Protection System 
(Remedial Action Scheme), available at http://www.nerc.com/docs/standards/rs/Glossary_of_Terms_2010April20.pdf.
---------------------------------------------------------------------------

    38. The Commission has expressed concern about the unnecessary 
proliferation of glossary terms and has directed the ERO to be vigilant 
in assuring that a regional definition is consistent with both NERC 
Glossary terms and other approved Regional Entity glossary terms.\27\ 
In the instant proceeding, we are concerned that the proposed 
definitions of Functionally Equivalent Protection System and 
Functionally Equivalent RAS do not add any further clarity to the NERC 
Glossary terms. Accordingly, we seek an explanation from WECC and other 
interested commenters regarding whether these new terms are more 
inclusive than the corresponding NERC Glossary definitions and, if so, 
how.
---------------------------------------------------------------------------

    \27\ Order No. 723, 74 FR 25,442 at P 37-40.
---------------------------------------------------------------------------

    39. WECC proposes to define Functionally Equivalent Protection 
System as ``[a] Protection System that provides performance as follows: 
Each Protection System can detect the same faults within the zone of 
protection * * *.'' \28\ It is unclear what the phrase ``detect the 
same faults'' means within this definition. For example, this phrase 
could refer to the ability of one protection system to act as a back-up 
for another protection system. Alternatively, this phrase could imply 
that a protection system should be able to detect a fault within in a 
different sub-area of the same zone of protection. Accordingly, we seek 
comment on the meaning of the phrase ``the same faults'' within the 
definition.
---------------------------------------------------------------------------

    \28\ See Proposed Reliability Standard PRC-004-WECC-1, proposed 
definition of Functionally Equivalent Protection System.
---------------------------------------------------------------------------

    40. In addition, the current NERC Glossary definition of 
Misoperation includes: (1) Failure of a protection system to operate; 
(2) protection system operation for a fault outside of the planned zone 
of protection; and (3) unintentional operation of a protection system. 
Instead of using this NERC Glossary definition, WECC has developed two 
new terms: Security-Based Misoperations and Dependability-Based 
Misoperations. The proposed WECC definitions address: (1) Incorrect 
operation of a protection system (Security-Based Misoperation); and (2) 
absence of a protection system to operate (Dependability-Based 
Misoperation). The bifurcation of the term Misoperation may be 
confusing because at least some of the requirements for each type of 
misoperation appear to overlap. We seek an explanation from WECC and 
other interested commenters regarding why these two new regional terms 
are necessary or desirable within the context of the proposed regional 
Reliability Standard, and how they will enhance reliability.
Summary
    41. The Commission proposes to approve PRC-004-WECC-1 as just, 
reasonable, not unduly discriminatory or preferential, and in the 
public interest. The Commission also proposes to approve NERC's 
petition to withdraw currently-effective WECC PRC-STD-001-1 and WECC 
PRC-STD-003-1. In addition, the Commission requests comment on three 
issues discussed above regarding (1) the Major WECC Transfer Path 
table; (2) whether the proposed regional terms, Functionally Equivalent 
Protection System and Functionally Equivalent RAS, are more inclusive 
than the corresponding NERC Glossary definitions; and, (3) the 
necessity of the proposed regional terms, Security-Based Misoperations 
and Dependability-Based Misoperations.

C. VAR-002-WECC-1--Automatic Voltage Regulators

Background
    42. Applicable to all generator operators and generator owners, 
NERC VAR-002-1.1b is meant to ensure that generators provide reactive 
and voltage control necessary to ensure voltage levels, reactive flows, 
and reactive resources are maintained within applicable facility 
ratings to protect equipment and the reliable operation of the 
Interconnection. Unless exempted by the transmission operator, each

[[Page 80403]]

generator operator must maintain the generator voltage or reactive 
power output (within applicable facility ratings) \29\ as directed by 
the transmission operator. Thus, the NERC Reliability Standard does not 
require generator operators to operate in automatic voltage control 
mode when they are operating outside of their facility rating, e.g., 
generators that are starting-up or generators used to serve peak load 
that typically run at low megawatt levels.
---------------------------------------------------------------------------

    \29\ NERC defines ``facility rating'' as the maximum or minimum 
voltage, current, frequency, or real or reactive power flow through 
a facility that does not violate the applicable equipment rating of 
any equipment comprising the facility.
---------------------------------------------------------------------------

    43. On June 8, 2007, the Commission approved WECC VAR-STD-002a-1, 
which applies to generator operators of synchronous generating units 
equipped with automatic voltage regulators in the Western 
Interconnection. The stated purpose of the regional Reliability 
Standard is to ensure that automatic voltage control equipment on 
synchronous generators shall be kept in service at all times, except in 
specified circumstances, and that outages of such equipment must be 
coordinated. It requires that generator operators must normally operate 
automatic voltage control equipment in voltage control mode and set to 
respond effectively to voltage deviations. Nevertheless, the levels of 
non-compliance associated with the approved regional Reliability 
Standard permit generator operators to operate without automatic 
voltage control equipment for two percent of the operating hours in a 
calendar year without penalty. The Commission approved the current 
regional Reliability Standard as more stringent than the NERC 
Reliability Standard because the WECC regional Reliability Standard 
requires synchronous generators to have their automatic voltage 
regulators in service at all times with exceptions limited to specific 
circumstances. In contrast, the NERC Reliability Standard does not 
specify a list of exceptions, which could mean that transmission 
operators may, upon request of the generator operators, permit outages 
of automatic voltage regulators for a broader range of reasons.\30\
---------------------------------------------------------------------------

    \30\ North American Electric Reliability Corp., 119 FERC ] 
61,260 at P 116.
---------------------------------------------------------------------------

WECC and NERC Proposal
    44. NERC requests approval of VAR-002-WECC-1 (Automatic Voltage 
Regulators) and requests the concurrent retirement of WECC VAR-STD-
002a-1. Proposed VAR-002-WECC-1 would be applicable to all generator 
operators and transmission operators that operate synchronous 
condensers. It would only apply to synchronous generators and 
synchronous condensers that are connected to the bulk electric system.
    45. Proposed VAR-002-WECC-1 contains two requirements. Requirement 
R1 provides that each generator operator and transmission operator 
shall have automatic voltage regulators in service and in automatic 
voltage control mode for synchronous generators and synchronous 
condensers during 98 percent of all operating hours unless exempted by 
the transmission operator. Sub-requirements R1.1 through R1.10 detail 
the type of exemptions that the transmission operator may grant to the 
generator operator to excuse the generator from operating the automatic 
voltage regulator in automatic voltage control mode. Requirement R2 
states that each generator operator and transmission operator must have 
documentation identifying the number of hours excluded for each sub-
requirement R1.1 through R1.10.
    46. WECC also proposes to replace the sanctions table with 
violation risk factors, violation severity levels, measures and time 
horizons. Finally, WECC proposes a new glossary term, Commercial 
Operation, to be applicable only in the Western Interconnection.
    47. During the standards development process, NERC expressed 
concern that proposed Requirement R1 was less stringent than the 
current NERC Reliability Standard.\31\ WECC responded that, although 
Requirement R1 appears to decrease the number of operating hours that a 
generator operator and transmission operator must keep automatic 
voltage regulators in service and in automatic voltage control mode 
from 100 percent to 98 percent, the 98 percent requirement is a 
translation of the limits set in the levels of non-compliance 
associated with the current regional Reliability Standard.\32\ In 
addition, WECC explained that the two percent allowance provides more 
time to start up generating facilities when the automatic voltage 
regulators are not yet in voltage control mode and allows for 
evaluation when a generator operator responds to an unforeseen 
event.\33\ WECC also pointed out that NERC VAR-002-1a does not place 
any restrictions on the length of time or range of acceptable reasons 
for operating in modes other than automatic voltage control mode. By 
contrast, WECC pointed out that the proposed VAR-002-WECC-1 limits the 
range of acceptable reasons and time for operating a generator without 
the automatic voltage regulator in service and controlling voltage.\34\
---------------------------------------------------------------------------

    \31\ NERC Petition at 34.
    \32\ The levels of non-compliance assigned to the currently-
effective regional Reliability Standard specify that there shall be 
a level 1 non-compliance if automatic voltage regulators are in 
service less than 98 percent but at least 96 percent or more of all 
hours during which the synchronous generating unit is on line for 
each calendar quarter.
    \33\ Specifically, WECC explains ``[t]he two percent allowance 
provides for time to start up generating facilities when the 
[automatic voltage regulators] are not yet in voltage control mode. 
It also allows for evaluation when the Generator Operators respond 
to unforeseen events.'' WECC further explains ``[p]eaking units 
often operate, for short periods, at low megawatt levels (below 
where manufactures recommend placing the [automatic voltage 
regulators] in-service). The exclusion below the five percent 
threshold during a calendar quarter permits the continued practice 
of allowing the operation of peaking units without penalty for 
having an out-of-service [automatic voltage control regulators] per 
the manufacturer recommendations.'' NERC Petition at 34-35.
    \34\ Id.
---------------------------------------------------------------------------

    48. NERC also notes that, during the Reliability Standards 
development process, it expressed concern regarding sub-requirement 
R1.1, which includes an exemption for units operating less than five 
percent of all hours during a calendar quarter. NERC explains that it 
raised a concern that the proposed sub-requirement ``excludes the hours 
attributed to the synchronous generator or condenser that operates for 
less than five percent of all hours during any calendar quarter.'' \35\ 
WECC responded by explaining that there is no change in the basic five 
percent threshold between the existing regional Reliability Standard 
and the proposed regional Reliability Standard. WECC further explained 
that peaking units often operate, for short periods, at low megawatt 
levels (below where manufacturers recommend placing the automatic 
voltage regulators in-service). WECC states that the exclusion below 
the five percent threshold during a calendar quarter permits the 
continued practice of allowing the operation of peaking units without 
penalty for having an out-of-service automatic voltage regulator per 
the manufacturer's recommendations.\36\
---------------------------------------------------------------------------

    \35\ Id. at 34-35.
    \36\ Id. at 35.
---------------------------------------------------------------------------

    49. NERC states that, whereas NERC VAR-002-1a requires only that a 
generator operator notify its transmission operator when it either 
removes or operates the automatic voltage regulator in a condition 
other than automatic voltage control mode and does not limit the amount 
of time for such operations, the proposed WECC regional Reliability 
Standard sets only very limited circumstances for when a generator's 
automatic voltage regulator should be operated in a mode other than

[[Page 80404]]

the automatic voltage control mode and further limits the cumulative 
timeframe for doing so. Thus, NERC represents that the proposed 
regional Reliability Standard is more stringent than the NERC 
Reliability Standard.\37\
---------------------------------------------------------------------------

    \37\ Id. at 29.
---------------------------------------------------------------------------

NOPR Proposal
    50. The Commission proposes to approve VAR-002-WECC-1 as just, 
reasonable, not unduly discriminatory or preferential, and in the 
public interest. Further, the Commission proposes the concurrent 
retirement of currently-effective WECC VAR-STD-002a-1. As represented 
by NERC, it appears that proposed VAR-002-WECC-1 is more stringent than 
the corresponding NERC Reliability Standard.
    51. Moreover, in approving the currently-effective WECC VAR-STD-
002a-1, the Commission directed WECC to make certain modifications in 
developing a replacement Reliability Standard. To address these 
directives, WECC has added violation risk factors, violation severity 
levels, measures and time horizons, and has removed the sanctions 
table. WECC also has re-written Requirement WR1 so that it does not 
include more than one main topic, removed language suggested to move to 
the Additional Compliance Information section, and removed the 
reference to Form A.5 to address recommendations made by NERC to modify 
WECC VAR-STD-002a-1.\38\ Thus, it appears that proposed VAR-002-WECC-1 
maintains stringencies above the corresponding NERC Reliability 
Standard while providing additional clarity and conformity. Thus, the 
Commission proposes to approve the regional Reliability Standard.
---------------------------------------------------------------------------

    \38\ See id. at 31.
---------------------------------------------------------------------------

    52. In addition, the Commission seeks comments on several issues 
posed by the WECC proposal, as discussed below.
Automatic Voltage Regulators
    53. Requirement R1 of proposed VAR-002-WECC-1 provides that 
``Generator Operators and Transmission Operators shall have [automatic 
voltage regulators] in service and in automatic voltage control mode 
98% of all operating hours for synchronous generators or synchronous 
condensers.'' \39\ Requirement R1 then identifies ten circumstances in 
which a generator operator or transmission operator is excused from 
this requirement. By specifying the circumstances in which a generator 
operator or transmission operator is excused from operating in 
automatic voltage regulator mode, the proposed requirement appears to 
be more stringent than the requirement in NERC VAR-002-1.1b.
---------------------------------------------------------------------------

    \39\ Proposed regional Reliability Standard VAR-002-WECC-1, 
Requirement R1.
---------------------------------------------------------------------------

    54. The Commission believes that, where installed, automatic 
voltage regulators should be in-service at all times except in 
circumstances when the generator is operating at an output level that 
is not within the design parameters of the automatic voltage regulator 
or operations of the automatic voltage regulator would result in 
instability. Automatic voltage regulators are intended to assist in 
maintaining the reliability of the Bulk-Power System by controlling 
system voltages. In addition, System Operating Limits for transmission 
paths in the bulk electric system in the Western Interconnection assume 
that automatic voltage regulators are in service to control voltage to 
support the transfer capability.\40\ When automatic voltage regulators 
are out of service, the time required to appropriately respond to 
disturbances that cause voltage deviations would increase due to the 
time required to take manual action. If not corrected in sufficient 
time, these voltage deviations could lead to instability, uncontrolled 
separation and cascading outages.
---------------------------------------------------------------------------

    \40\ See NERC Petition at 29.
---------------------------------------------------------------------------

    55. Although the proposed regional Reliability Standard would limit 
the circumstances in which a transmission operator or generator 
operator is excused from keeping automatic voltage regulators in 
automatic voltage control mode, it also provides a blanket exemption 
for two percent of all operating hours. In its petition, NERC explains 
that this exemption would accommodate generating facilities when they 
are starting up and when the automatic voltage regulators are not yet 
in voltage control mode. NERC also explains that this exemption allows 
for evaluation when the generator operators respond to unforeseen 
events.\41\ These limitations identified by NERC in its petition are 
not explicit in the requirements of the proposed regional Reliability 
Standard.
---------------------------------------------------------------------------

    \41\ NERC Petition at 34-35.
---------------------------------------------------------------------------

    56. We are concerned that the proposed provision is written more 
broadly than necessary. We believe it is appropriate to exempt 
automatic voltage regulators from being in-service during times when 
the generator is operating outside of applicable facility ratings. 
However, as proposed, Requirement R1 would provide generators with a 
blanket exemption--equal to two percent of all operating hours--from 
the requirement to maintain automatic voltage regulators in-service. We 
seek comment on whether the Commission should direct WECC to develop a 
modification to the proposed regional Reliability Standard to address 
our concern. For example, consistent with NERC's explanation, NERC 
could develop a modification replacing the blanket two percent 
exemption with a list of specific exemptions that would accommodate 
generating units that are starting up or responding to unforeseen 
events and are operating outside of applicable facility ratings.
    57. The purpose of NERC VAR-002-1.1b is to ensure appropriate 
reactive and voltage control are provided to maintain voltage levels, 
reactive flows, and reactive resources are within applicable facility 
ratings for Reliable Operation. Requirement R1 of VAR-002-1.1b states 
that the ``Generator Operator shall operate each generator connected to 
the interconnected transmission system in the automatic voltage control 
mode (automatic voltage regulator in service and controlling voltage) 
unless the Generator Operator has notified the Transmission Operator.'' 
Requirement R2 continues that ``[u]nless exempted by the Transmission 
Operator, each Generator Operator shall maintain the generator voltage 
or Reactive Power output (within applicable Facility Ratings) as 
directed by the Transmission Operator.'' Based on the same rationale 
articulated regarding the two percent exemption in the regional 
Reliability Standard, we have a concern regarding the corresponding 
NERC Reliability Standard. In particular, we seek comment on whether it 
would provide additional support for Bulk-Power System reliability to 
propose to direct the ERO to develop a modification to NERC VAR-002-
1.1b. Specifically to clarify that, if a generator has an automatic 
voltage regulator installed, it must be in-service and controlling 
voltage at all times, equipment and facility ratings permitting, unless 
exempted by the transmission operator. We believe that such a 
modification could be consistent with Commission precedent.\42\ The 
Commission's concerns regarding the NERC Reliability Standard are 
introduced here as they correspond with certain elements of the WECC 
standards that are the subject of the immediate proceeding. However, 
any proposal to direct the development of modifications to the NERC 
Reliability

[[Page 80405]]

Standards would be addressed in a separate proceeding.
---------------------------------------------------------------------------

    \42\ Order on Reliability Standard Interpretation, 132 FERC ] 
61,220, at P 27 (2010) (VAR Interpretation Order).
---------------------------------------------------------------------------

Exclusion of Synchronous Generators that Operate for Less Than Five 
Percent of All Hours During a Calendar Quarter
    58. Requirement R1.1 of proposed VAR-002-WECC-1 would allow 
exclusion of any synchronous generator or synchronous condenser that 
``operates for less than five percent of all hours during any calendar 
quarter'' from operating with automatic voltage regulator in service 
and in automatic voltage control mode. During the Reliability Standard 
development process of the proposed regional Reliability Standard, NERC 
expressed concern regarding the exclusion of these hours.\43\ WECC 
responded by explaining that the ``exclusion below the five percent 
threshold during a calendar quarter permits the continued practice of 
allowing the operation of peaking units without penalty for having an 
out-of-service [automatic voltage regulator] per the manufacturer 
recommendations'' since ``[p]eaking units often operate, for short 
periods, at low megawatt levels (below where manufacture[r]s recommend 
placing the [automatic voltage regulators] in-service).'' \44\ Thus, it 
appears that WECC developed the five percent threshold provision to 
account for out-of-service automatic voltage regulators per the 
manufacturer recommendations regarding automatic voltage regulator 
design limitations.
---------------------------------------------------------------------------

    \43\ NERC Petition at 34-35.
    \44\ Id. at 35.
---------------------------------------------------------------------------

    59. We are concerned, however, that the provision is written more 
broadly than necessary. It appears inefficient to allow an exemption 
for any synchronous generator or synchronous condenser that ``operates 
for less than five percent of all hours during any calendar quarter'' 
in order to address concerns about operation limits based on 
manufacture recommendations, and could potentially exempt other 
generator operators and transmission operators. The Commission seeks 
comment on whether it is necessary or desirable to direct WECC to 
develop a modification through its Reliability Standards development 
process that addresses this concern. For example, one reasonable 
solution would be to develop a replacement requirement that directly 
addresses the need for an exemption for peaking units operating 
automatic voltage regulators when necessary to satisfy manufacturer 
recommendations regarding the operation of an automatic voltage 
regulator.
Automatic Voltage Regulator Replacement
    60. Proposed sub-requirement R1.6 lengthens the automatic voltage 
regulator replacement timeline due to component failure from 15 months 
to 24 months ``to accommodate design and procurement especially for 
nuclear units.'' \45\ The ERO supported the extension of the outage 
time frame for the automatic voltage regulators. The Commission, giving 
due weight to WECC and the ERO, proposes to accept the Reliability 
Standard with the modification to this provision.
---------------------------------------------------------------------------

    \45\ NERC Petition at Exhibit C, ``Consideration of Comments for 
VAR-002-WECC-1--Automatic Voltage Regulator Comments were due 
January 2, 2008.''
---------------------------------------------------------------------------

    61. We are concerned that allowing an additional nine months of 
non-operation of automatic voltage regulator is not necessary for many, 
if not most, units. The additional replacement time could lead to a 
decrease in generation that can react in automatic voltage regulator 
mode. In the event of a contingency, this could have an impact on bulk 
electric system reliability. We believe that it may be appropriate to 
direct WECC to develop a modification to this provision to address our 
concern. For example, WECC could allow fifteen months for replacement 
with an opportunity to seek an extension up to nine months where 
justified. Alternatively, WECC could retain a fifteen month replacement 
period for non-nuclear generator units, and a twenty-four month 
replacement period for nuclear generator units. The Commission seeks 
comment from WECC, NERC and other interested commenters regarding the 
historical replacement period for nuclear and non-nuclear units, and 
the appropriateness of the Commission proposal. For example, comments 
could include documentation and timeline summary of previous ``design 
and procurement'' for automatic voltage regulator component failures 
demonstrating that automatic voltage regulator outages frequently last 
more than 15 months in order to support extending the replacement 
period.
Responding to Voltage Deviations
    62. The current regional Reliability Standard provides that ``[a]ll 
synchronous generators with automatic voltage control equipment shall 
normally be operated in voltage control mode and set to respond 
effectively to voltage deviations.'' The proposed regional Reliability 
Standard removes this requirement but the NERC Petition does not 
provide any explanation why, or potential impact of, removing the 
provision.
    63. We seek further explanation from WECC, NERC, and public 
comment, on the impact of removing this provision from the currently-
effective WECC regional Reliability Standard. We are concerned that, by 
removing the requirement for automatic voltage regulators to respond 
effectively to voltage deviations, the proposed regional Reliability 
Standard would not require entities to assess the performance of the 
automatic voltage regulators to ensure they are appropriately 
responding to voltage deviations to support reliability of the Bulk-
Power System.
Summary
    64. The Commission proposes to approve VAR-002-WECC-1 as just, 
reasonable, not unduly discriminatory or preferential, and in the 
public interest. Further, the Commission proposes the concurrent 
retirement of currently-effective WECC VAR-STD-002a-1. In addition, the 
Commission requests comment on issues discussed above regarding whether 
the Commission should direct WECC to develop modifications to the 
proposed regional Reliability Standard that would: (1) Replace the 
blanket two percent exemption with a list of specific exemptions; and 
(2) more narrowly tailor the exemption for any synchronous generator or 
synchronous conductor that operates less than five percent of all 
operating hours during any calendar quarter. The Commission also seeks 
comment on the historical replacement period for nuclear and non-
nuclear units and whether the Commission should direct WECC to modify 
the regional Reliability Standard to limit the acceptable duration of 
automatic voltage regulator outages. Finally, the Commission seeks 
comment on the impact of removing the requirement that all generators 
with automatic voltage control equipment be operated in automatic 
voltage control mode and set to respond to voltage deviations.

D. VAR-501-WECC-1--Power System Stabilizer

Background
    65. Currently-effective WECC VAR-STD-002b-1 applies to generator 
operators with generators equipped with power system stabilizers. The 
current regional Reliability Standard requires that generator operators 
keep power system stabilizers in service at all times, except in 
specified circumstances. Further, currently-effective WECC VAR-

[[Page 80406]]

STD-002b-1 requires that power system stabilizers are properly tuned in 
accordance with WECC Criterion, referenced in the standard. This 
regional Reliability Standard does not have a corresponding NERC 
Reliability Standard. The Commission approved the current regional 
Reliability Standard because it addresses matters that are not 
addressed by a NERC Reliability Standard.\46\
---------------------------------------------------------------------------

    \46\ See North American Electric Reliability Corp., 119 FERC ] 
61,260 at P 122.
---------------------------------------------------------------------------

WECC and NERC Proposal
    66. NERC requests approval of VAR-501-WECC-1 and asks for the 
concurrent retirement of the current WECC VAR-STD-002b-1. Proposed VAR-
501-WECC-1 would apply to generator operators. Its purpose is to ensure 
that power system stabilizer on synchronous generators are kept in 
service.
    67. Proposed VAR-501-WECC-1 contains two requirements. Requirement 
R1 provides that each generator operator with a synchronous generator 
equipped with a power system stabilizer must have the power system 
stabilizer in service during 98 percent of all operating hours. NERC 
explains that a power system stabilizer is part of the excitation 
control system of a generator used to increase power transfer levels by 
improving power system dynamic performance. Sub-requirements R1.1 
through R1.12 set forth exceptions to the operating requirement in 
Requirement R1. Requirement R2 states that each generator operator must 
have documentation identifying the number of hours excluded for each 
sub-requirement R1.1 through R1.12.
    68. In the Petition, NERC and WECC explain that the purpose of VAR-
501-WECC-1 is to ensure that power system stabilizers on synchronous 
generators are kept in service. NERC and WECC state that the 
corresponding NERC VAR-002-1.1b requires only that a generator operator 
notify its transmission operator when it removes the power system 
stabilizer from service and does not limit the amount of time for 
operating generators without power system stabilizers in service.\47\ 
NERC and WECC explain that, in contrast, proposed VAR-501-WECC-1 
requires power system stabilizers to be in service except for specific 
conditions and for a cumulative time limit per quarter. Thus, according 
to NERC and WECC, the proposed regional Reliability Standard is more 
stringent than the corresponding NERC Reliability Standard.
---------------------------------------------------------------------------

    \47\ NERC Petition at 36.
---------------------------------------------------------------------------

    69. In addition, the Petition explains that the proposed regional 
Reliability Standard includes modifications to address the Commission's 
directives in the June 2007 order that accepted WECC's currently-
effective standards.\48\ In particular, WECC proposes to replace the 
current sanctions table with violation risk factors, violation severity 
levels, measures and time horizons. Proposed VAR-501-WECC-1 removes the 
definition of ``disturbance'' and makes certain directed formatting 
revisions. WECC also proposes a new glossary term, Commercial 
Operation, to be applicable only in the Western Interconnection.\49\
---------------------------------------------------------------------------

    \48\ North American Electric Reliability Corp., 119 FERC ] 
61,260 at P 123.
    \49\ Pursuant to WECC's proposal, ``Commercial Operation'' is 
defined as ``* * * receiving all approvals necessary for operation 
after completion of initial start-up testing.'' Requirement R1.1 of 
VAR-501-WECC-1 excludes a unit from compliance when ``the 
synchronous generator has not achieved Commercial Operation.''
---------------------------------------------------------------------------

    70. In the Petition, NERC notes that, during the Reliability 
Standards development process, NERC expressed concern that the proposed 
regional Reliability Standard appears less stringent than the current 
regional Reliability Standard because it would reduce the number of 
hours that generator operators must keep power system stabilizers in 
service from 100 percent to 98 percent of all operating hours.\50\ WECC 
responded to NERC's concerns by explaining that the requirement had not 
been modified but rather was a translation of the existing levels of 
non-compliance into the requirements of the proposed regional 
Reliability Standard.\51\ WECC further explained that the levels of 
non-compliance for the current regional Reliability Standard allow 
generator operators to operate without power system stabilizers in 
service for two percent of all operating hours without penalty.\52\
---------------------------------------------------------------------------

    \50\ NERC Petition at 40.
    \51\ Id.
    \52\ The levels of non-compliance assigned to the currently-
effective regional Reliability Standard specify that there shall be 
a level 1 non-compliance if power system stabilizers are in service 
less than 98 percent but at least 96 percent or more of all hours 
during which the synchronous generating unit is on line for each 
calendar quarter.
---------------------------------------------------------------------------

    71. NERC also notes that, during the regional Reliability Standards 
development process, NERC expressed concern that sub-requirement R1.1 
of the proposed regional Reliability Standard excludes the hours for 
power system stabilizer operation attributed to the synchronous 
generator that operates for less than five percent of all hours during 
any calendar quarter. WECC responded that there is no change in the 
basic five percent threshold between the current and the proposed 
regional Reliability Standards. WECC further explained that peaking 
units often operate, for short periods, at low megawatt levels where 
manufacturers do not recommend using a power system stabilizer. WECC 
stated that the exclusion below the five percent threshold during a 
calendar quarter permits the continued practice of allowing the 
operation of peaking units without penalty for having an out-of-service 
power system stabilizer per the manufacturer recommendations.
NOPR Proposal
    72. The Commission proposes to approve VAR-501-WECC-1 as just, 
reasonable, not unduly discriminatory or preferential, and in the 
public interest. The Commission also proposes to approve NERC's 
proposed retirement of currently-effective WECC VAR-STD-002b-1.
    73. As explained by NERC and WECC, proposed VAR-501-WECC-1 is more 
stringent than the corresponding NERC VAR-002-1.1b. Unlike the NERC 
Reliability Standard, proposed VAR-501-WECC-1 requires power system 
stabilizers to be in service except for specific conditions and for a 
cumulative time limit per quarter. Further, the proposed regional 
Reliability Standard reflects modifications to address the Commission's 
concerns in the June 2007 order.\53\ As discussed above, WECC has added 
violation risk factors, violation severity levels, measures and time 
horizons and has removed the reliability management system sanctions 
table. WECC also made formatting changes, removed the definition for 
``Disturbance,'' and included a definition of ``Commercial Operation.'' 
Accordingly, the Commission proposes to approve proposed VAR-501-WECC-1 
because it appears to be more stringent than the requirements of the 
applicable NERC Reliability Standards while providing additional 
clarity and conformity over the current regional Reliability Standard.
---------------------------------------------------------------------------

    \53\ See North American Electric Reliability Corp., 119 FERC ] 
61,260 at P 123.
---------------------------------------------------------------------------

    74. In addition to the modifications that address the Commission's 
earlier directives, WECC's proposal includes further modifications 
about which the Commission seeks comment.
    75. The language of proposed VAR-501-WECC-1 is similar to the 
proposed VAR-002-WECC-1, addressed above. As a result, the Commission 
discusses below several similar issues as discussed above regarding 
VAR-002-WECC-1. In particular, the same items

[[Page 80407]]

discussed above regarding the requirement that generator operators meet 
the requirements of the proposed regional Reliability Standard only 98 
percent of the time, and the exclusion of hours for generators that 
operate less than five percent of all hours during a calendar quarter, 
apply to this proposed regional Reliability Standard as well.
In-Service Requirement
    76. As proposed, Requirement R1 of VAR-501-WECC-1 provides that 
``Generator Operators shall have [power system stabilizers] in service 
98 [percent] of all operating hours for synchronous generators equipped 
with [power system stabilizers].'' \54\ Requirement R1 also sets forth 
twelve circumstances in which a generator operator is excused from this 
requirement. By specifying the circumstances in which a generator 
operator is excused from keeping its power system stabilizer in 
service, the proposed requirement appears to be more stringent than the 
currently-effective requirement in NERC VAR-002-1.1b, which requires 
only that a generator operator notify its transmission operator when 
there is a change in status of its power system stabilizer.
---------------------------------------------------------------------------

    \54\ Proposed regional Reliability Standard VAR-501-WECC-1, 
Requirement R1.
---------------------------------------------------------------------------

    77. The Commission believes that, where installed, power system 
stabilizers should be in-service at all times, equipment and facility 
ratings permitting, unless exempted by the transmission operator. Power 
system stabilizers are designed to ensure that the generator provides 
the proper damping to maintain system stability when generation and 
transmission outages occur.\55\ As NERC explains, in the Western 
Interconnection System, Operating Limits for transmission paths in the 
bulk electric system assume that power system stabilizers are in 
service to enhance system damping. When power system stabilizers are 
out of service, generators may not be able to dampen oscillations 
occurring on the system, which could lead to instability, uncontrolled 
separation and cascading outages.
---------------------------------------------------------------------------

    \55\ Id. at 35.
---------------------------------------------------------------------------

    78. Although the proposed regional Reliability Standard would limit 
the circumstances in which a generator operator is excused from keeping 
power system stabilizers in-service, it also provides a blanket 
exemption for two percent of all operating hours. Similar to our 
discussion above on VAR-002-WECC-1, we believe that an exemption might 
be appropriate to accommodate generating facilities when they are 
starting up or operating outside of their facility ratings. However, 
proposed regional Reliability Standard provides no limitation as to 
when generating units may use the two percent exemption.
    79. We are concerned that the proposed provision is written more 
broadly than necessary. We believe it is appropriate to exempt power 
system stabilizers from being in-service during times when the 
generator is operating outside of applicable facility ratings. However, 
as proposed, Requirement R1 would provide a blanket exemption for 
generators to maintain power system stabilizers in-service for two 
percent of all operating hours without qualification. We seek comment 
on whether the Commission should direct WECC to develop a modification 
to the proposed regional Reliability Standard that would address our 
concern. For example, WECC could develop a modification to replace the 
blanket two percent exemption with a more specific exemption that would 
accommodate generating units that are starting up or are operating 
outside of applicable facility ratings.
    80. Requirement R3 and R3.1 of VAR-002-1.1b require a generator 
operator to inform the transmission operator as soon as possible, but 
within 30 minutes, whenever there is a change in status or capability, 
and the expected duration of this change, of any reactive power 
resource including power system stabilizers. Based on similar concerns 
articulated above regarding the regional Reliability Standard, we have 
concerns about the NERC Reliability Standard and whether it adequately 
addresses power system stabilizer in-service obligations. In 
particular, we seek comment on whether it would be appropriate to 
propose to direct the ERO to develop a modification to NERC VAR-002-
1.1b to clarify that, if a generator has a power system stabilizer 
installed, it must be in-service at all times, equipment and facility 
ratings permitting, unless exempted by the transmission operator. The 
Commission's concerns regarding the NERC Reliability Standard are 
introduced here as they correspond with certain elements of the WECC 
standards that are the subject of the immediate proceeding. However, 
any proposal to direct the development of modifications to the NERC 
Reliability Standards would be addressed in a separate proceeding.
Exclusion of Synchronous Generators That Operate for Less Than Five 
Percent of All Hours During a Calendar Quarter
    81. Requirement R1.1 of proposed VAR-501-WECC-1 would allow 
exclusion of any synchronous generator that operates for less than five 
percent of all hours during any calendar quarter from operating with 
power system stabilizer in service. During the Reliability Standard 
development process of the proposed regional Reliability Standard, NERC 
expressed concern regarding the exclusion of these hours.\56\ WECC 
responded by explaining that the ``exclusion below the five percent 
threshold during a calendar quarter permits the continued practice of 
allowing the operation of peaking units without penalty for having an 
out-of-service power system stabilizer per the manufacturer 
recommendations'' since ``[p]eaking units often operate, for short 
periods, at low megawatt levels (below where manufacture[r]s recommend 
placing the [power system stabilizer] in-service).'' \57\ Thus, it 
appears that WECC developed the five percent threshold provision to 
account for out-of-service power system stabilizer per the manufacturer 
recommendations.
---------------------------------------------------------------------------

    \56\ Id. at 40.
    \57\ Id.
---------------------------------------------------------------------------

    82. We seek comment on whether the proposed provision is written 
more broadly than necessary. Comments should address why it is 
appropriate to allow an exemption for any synchronous generator that 
``operates for less than five percent of all hours during any calendar 
quarter'' to address concerns about limitations based on manufacturer 
recommendations, and could potentially exempt other generator 
operators. Based on the comments received, the Commission may propose 
to direct WECC to develop a modification through its Reliability 
Standards development process that addresses this concern. It appears 
that one reasonable solution would be to develop a replacement 
requirement that directly addresses the need for an exemption for 
peaking units that may not operate with power system stabilizers to 
satisfy manufacturer recommendations.
Power System Stabilizer Replacement
    83. Proposed sub-requirement R1.10 lengthens the power system 
stabilizer replacement timeline due to component failure from 15 months 
to 24 months ``to accommodate design and procurement

[[Page 80408]]

especially for nuclear units.'' \58\ The Commission notes that no other 
evidence was provided in the record to support the extension of the 
outage time frame for the power system stabilizers from 15 months to 24 
months. The Commission proposes to accept the Reliability Standard with 
this modification.
---------------------------------------------------------------------------

    \58\ NERC Petition at Exhibit C, ``Consideration of Comments for 
VAR-501-WECC-1--Power System Stabilizer Comments were due January 2, 
2008.''
---------------------------------------------------------------------------

    84. However, since the rationale provided for the increased 
replacement period is based on the needs of nuclear power generators, 
we are concerned whether the additional nine months is necessary for 
many, if not most, units. The additional replacement time could lead to 
a decrease in generation units operating with the power system 
stabilizers. In the event of a contingency, this could have an impact 
on bulk electric system reliability. Accordingly, the Commission seeks 
comment from WECC, NERC and other interested commenters regarding the 
historical replacement period for nuclear and non-nuclear units, and 
the appropriateness of the Commission proposal. For example, comments 
could include documentation and timeline summary of previous ``design 
and procurement'' for power system stabilizer component failures 
demonstrating that power system stabilizer outages frequently last more 
than 15 months in order to support extending the replacement period.
Power System Stabilizer Tuning
    85. The current regional Reliability Standard requires all 
generators with power system stabilizers to be properly tuned in 
accordance with the WECC requirements.\59\ The proposed regional 
Reliability Standard removes the tuning requirement without explanation 
or analysis of the potential impact of removing the provision. The 
Commission believes that, if the power system stabilizer is in service, 
it must be properly tuned to enhance system damping and maintain system 
stability. The Commission, therefore, seeks further explanation from 
WECC and NERC, and public comment on, the impact of removing the tuning 
requirement.
---------------------------------------------------------------------------

    \59\ Id. Requirement WR1 of the currently-effective regional 
Reliability Standard provides: ``Power System Stabilizers on 
generators shall be kept in service at all times, unless one of the 
exemptions listed in Section C (Measures) applies, and shall be 
properly tuned in accordance with WECC requirements.''
---------------------------------------------------------------------------

    86. This highlights another concern. Currently, no NERC Reliability 
Standard addresses power system stabilizer tuning. As explained above, 
a properly tuned power system stabilizer is necessary to enhance system 
damping. If a power system stabilizer is installed, periodic review of 
the power system stabilizer tuning is a significant component of 
maintaining system stability to ensure that system changes have not 
impacted the performance of the power system stabilizer in supporting 
system stability. Accordingly, the Commission seeks comment on whether 
it should propose to direct the ERO to develop a continent-wide 
Reliability Standard to address this concern. In particular, we seek 
comment on directing the ERO to develop a Reliability Standard with the 
purpose of ensuring that, if a power system stabilizer is installed, 
the power system stabilizer must be properly tuned for operation. Such 
a Reliability Standard would not require installation of a power system 
stabilizer, but would ensure that power system stabilizer that are in 
service would need to be tuned prior to service and the settings must 
be reviewed periodically to ensure the power system stabilizer operates 
properly to support the reliability of the Bulk-Power System. The 
Commission's concerns regarding the NERC Reliability Standard are 
introduced here as they correspond with certain elements of the WECC 
standards that are the subject of the immediate proceeding. However, 
any proposal to direct the development of modifications to the NERC 
Reliability Standards would be addressed in a separate proceeding.
Summary
    87. The Commission proposes to approve VAR-501-WECC-1 as just, 
reasonable, not unduly discriminatory or preferential, and in the 
public interest. Further, the Commission proposes the concurrent 
retirement of currently-effective WECC VAR-STD-002b-1. In addition, the 
Commission requests comment on issues discussed above regarding whether 
the Commission should direct WECC to develop modifications to the 
proposed regional Reliability Standard that would: (1) Replace the 
blanket two percent exemption with a list of specific exemptions; and 
(2) more narrowly tailor the exemption for any synchronous generator or 
synchronous conductor that operates less than five percent of all 
operating hours during any calendar quarter. The Commission also seeks 
comment on the historical replacement period for nuclear and non-
nuclear units and whether the Commission should direct WECC to modify 
the regional Reliability Standard to limit the acceptable duration of 
power system stabilizer outages. Finally, the Commission seeks comment 
on whether it should propose to direct the ERO to develop a continent-
wide Reliability Standard that ensures that, if a power system 
stabilizer is installed, the power system stabilizer must be properly 
tuned for operation.

IV. Information Collection Statement

    88. The Office of Management and Budget (OMB) regulations require 
that OMB approve certain reporting and recordkeeping (collections of 
information) imposed by an agency. The information contained here is 
also subject to review under section 3507(d) of the Paperwork Reduction 
Act of 1995. As stated above, the Commission previously approved the 
current regional Reliability Standards that are proposed for 
replacement in this rulemaking. In the event that the Commission, after 
receiving comments, determines to adopt the four proposed Reliability 
Standards, they would not substantially change the entities' current 
reporting burdens under the five currently effective, approved 
Reliability Standards.
    89. The four proposed WECC regional Reliability Standards (and the 
five currently approved regional Reliability Standards they are 
intended to replace) are designated as: FAC-501-WECC-1 (Transmission 
Maintenance; to replace approved PRC-STD-005-1); PRC-004-WECC-1 
(Protection System and Remedial Action Scheme Misoperation; to replace 
approved WECC PRC-STD-001-1 and PRC-STD-003-1); VAR-002-WECC-1 
(Automatic Voltage Regulators; to replace approved WECC VAR-STD-002a-
1); and VAR-501-WECC-1 (Power System Stabilizer; to replace approved 
WECC VAR-STD-002b-1). The proposed standards do not modify or otherwise 
affect the burdens related to the collection of information already in 
place. Thus, the proposed replacement Reliability Standards will 
neither increase the reporting burden nor impose any additional 
information collection requirements.
    Burden Estimate: The Commission does not foresee any additional 
impact on the reporting burden for small businesses, because the 
proposed modifications do not increase the existing burdens. However, 
we will submit this proposed rule to OMB for review.
    Title: Version One Regional Reliability Standard for Facilities 
Design, Connections, and Maintenance; Protection and Control; and 
Voltage and Reactive.
    Action: Proposed Collection FERC-725E.
    OMB Control No.: 1902-0246.

[[Page 80409]]

    Respondents: Businesses or other for-profit institutions; not-for-
profit institutions.
    Frequency of Responses: On occasion.
    Necessity of the Information: This proposed rule proposes to 
approve four requested replacements (to five existing approved regional 
Reliability Standards). The proposed regional Reliability Standards 
help ensure the reliable operation of the Western Interconnection.
    Internal Review: The Commission proposes to approve FAC-501-WECC-1, 
PRC-004-WECC-1, VAR-002-WECC-1, and VAR-501-WECC-1 as just, reasonable, 
not unduly discriminatory or preferential, and in the public interest. 
In addition, under section 215(d)(5) of the FPA and section 39.5(f) of 
our regulations, the Commission proposes to direct the ERO to develop 
certain modifications to further clarify the requirements of the 
proposed WECC regional Reliability Standards.
    90. Interested persons may obtain information on the reporting 
requirements by contacting the following: Federal Energy Regulatory 
Commission, 888 First Street, NE., Washington, DC 20426 [Attention: 
Ellen Brown, Office of the Executive Director, e-mail: 
DataClearance@ferc.gov, Phone: (202) 502-8663, fax: (202) 273-0873].
    91. For submitting comments concerning the collection(s) of 
information and the associated burden estimate(s), please send your 
comments to the Commission and to the Office of Management and Budget, 
Office of Information and Regulatory Affairs, Washington, DC 20503 
[Attention: Desk Officer for the Federal Energy Regulatory Commission, 
phone (202) 395-4638, fax: (202) 395-7285]. For security reasons, 
comments to OMB should be submitted by e-mail to: oira_submission@omb.eop.gov. Comments submitted to OMB should include Docket 
Number RM09-14 and OMB Control Number 1902-0246.

V. 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.\60\ The 
Commission has categorically excluded certain actions from this 
requirement as not having a significant effect on the human 
environment. Included in the exclusion are rules that are clarifying, 
corrective, or procedural or that do not substantially change the 
effect of the regulations being amended.\61\ The actions proposed 
herein fall within this categorical exclusion in the Commission's 
regulations.
---------------------------------------------------------------------------

    \60\ Regulations Implementing the National Environmental Policy 
Act of 1969, Order No. 486, FERC Stats. & Regs. ] 30,783 (1987).
    \61\ 18 CFR 380.4(a)(2)(ii).
---------------------------------------------------------------------------

VI. Regulatory Flexibility Act Certification

    93. The Regulatory Flexibility Act of 1980 (RFA) \62\ generally 
requires a description and analysis of final rules that will have 
significant economic impact on a substantial number of small entities. 
The RFA mandates consideration of regulatory alternatives that 
accomplish the stated objectives of a proposed rule and that minimize 
any significant economic impact on a substantial number of small 
entities. The Small Business Administration's (SBA) Office of Size 
Standards develops the numerical definition of a small business.\63\ 
The SBA has established a size standard for electric utilities, stating 
that a firm is small if, including its affiliates, it is primarily 
engaged in the transmission, generation and/or distribution of electric 
energy for sale and its total electric output for the preceding twelve 
months did not exceed four million megawatt hours.\64\ The RFA is not 
implicated by this proposed rule because the modification discussed 
herein will not have a significant economic impact on a substantial 
number of small entities. Moreover, the proposed Reliability Standards 
reflect a continuation of existing requirements for these reliability 
entities. Accordingly, no regulatory flexibility analysis is required.
---------------------------------------------------------------------------

    \62\ 5 U.S.C. 601-612.
    \63\ 13 CFR 121.101.
    \64\ 13 CFR 121.201, Sector 22, Utilities & n. 1.
---------------------------------------------------------------------------

VII. Comment Procedures

    94. The Commission invites interested persons to submit comments on 
the matters and issues proposed in this notice to be adopted, including 
any related matters or alternative proposals that commenters may wish 
to discuss. Comments are due February 22, 2011. Comments must refer to 
Docket No. RM09-9-000, and must include the commenter's name, the 
organization they represent, if applicable, and their address in their 
comments.
    95. The Commission encourages comments to be filed electronically 
via the eFiling link on the Commission's Web site at http://www.ferc.gov. The Commission accepts most standard word processing 
formats. Documents created electronically using word processing 
software should be filed in native applications or print-to-PDF format 
and not in a scanned format. Commenters filing electronically do not 
need to make a paper filing.
    96. Commenters unable to file comments electronically must mail or 
hand-deliver an original copy of their comments to: Federal Energy 
Regulatory Commission, Secretary of the Commission, 888 First Street, 
NE., Washington, DC 20426. These requirements can be found on the 
Commission's Web site, see, e.g., the ``Quick Reference Guide for Paper 
Submissions,'' available at http://www.ferc.gov/docs-filing/efiling.asp 
or via phone from FERC Online Support at (202) 502-6652 or toll-free at 
1-866-208-3676.
    97. All comments will be placed in the Commission's public files 
and may be viewed, printed, or downloaded remotely as described in the 
Document Availability section below. Commenters on this proposal are 
not required to serve copies of their comments on other commenters.

VIII. Document Availability

    98. In addition to publishing the full text of this document in the 
Federal Register, the Commission provides all interested persons an 
opportunity to view and/or print the contents of this document via the 
Internet through FERC's Home Page (http://www.ferc.gov) and in FERC's 
Public Reference Room during normal business hours (8:30 a.m. to 5 p.m. 
Eastern time) at 888 First Street, NE., Room 2A, Washington, DC 20426.
    99. 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.
    100. User assistance is available for eLibrary and the FERC's Web 
site during normal business hours from FERC Online Support at (202) 
502-6652 (toll free at 1-866-208-3676) or e-mail at 
ferconlinesupport@ferc.gov, or the Public Reference Room at (202) 502-
8371, TTY (202) 502-8659. E-mail the Public Reference Room at 
public.referenceroom@ferc.gov.

    By direction of the Commission.

Kimberly D. Bose,
Secretary.
[FR Doc. 2010-32157 Filed 12-21-10; 8:45 am]
BILLING CODE 6717-01-P


