
[Federal Register Volume 76, Number 81 (Wednesday, April 27, 2011)]
[Rules and Regulations]
[Pages 23470-23477]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-10051]



[[Page 23470]]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

18 CFR Part 40

[Docket No. RM09-14-000; Order No. 752]


Version One Regional Reliability Standard for Transmission 
Operations

AGENCY: Federal Energy Regulatory Commission, DOE.

ACTION: Final rule.

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SUMMARY: Under section 215(d)(2) of the Federal Power Act, the Federal 
Energy Regulatory Commission approves regional Reliability Standard 
TOP-007-WECC-1 (System Operating Limits) developed by the Western 
Electric Coordinating Council (WECC) and submitted to the Commission 
for approval by the North American Electric Reliability Corporation. 
The primary purpose of this regional Reliability Standard is to ensure 
that actual flows and associated scheduled flows on major WECC transfer 
paths do not exceed system operating limits for more than 30 minutes. 
The Commission also approves the retirement of WECC regional 
Reliability Standard TOP-STD-007-0, which is replaced by the regional 
Reliability Standard approved in this Final Rule. The Commission also 
directs WECC to modify the associated violation risk factors and 
violation severity levels.

DATES: Effective Date:
    This rule will become effective June 27, 2011.

FOR FURTHER INFORMATION CONTACT:

William Edwards (Legal Information), Office of the General Counsel, 
Federal Energy Regulatory Commission, 888 First Street, NE., 
Washington, DC 20426. (202) 502-6669.
Mindi Sauter (Legal Information), Office of the General Counsel, 
Federal Energy Regulatory Commission, 888 First Street, NE., 
Washington, DC 20426. (202) 502-6830.
E. Nick Henery (Technical Information), Office of Electric Reliability, 
Division of Policy Analysis and Rulemaking, Federal Energy Regulatory 
Commission, 888 First Street, NE., Washington, DC 20426. (202) 502-
8636.
Danny Johnson (Technical Information), Office of Electric Reliability, 
Division of Reliability Standards, Federal Energy Regulatory 
Commission, 888 First Street, NE., Washington, DC 20426. (202) 502-
8892.

SUPPLEMENTARY INFORMATION:

Before Commissioners: Jon Wellinghoff, Chairman; Marc Spitzer, 
Philip D. Moeller, John R. Norris, and Cheryl A. LaFleur.

Issued April 21, 2011.

    1. Under section 215(d)(2) of the Federal Power Act (FPA),\1\ the 
Commission approves regional Reliability Standard TOP-007-WECC-1 
(System Operating Limits) developed by the Western Electricity 
Coordinating Council (WECC) and submitted to the Commission for 
approval by the North American Electric Reliability Corporation 
(NERC).\2\ The primary purpose of the approved regional Reliability 
Standard is to ensure that actual flows and associated scheduled flows 
on major WECC transfer paths do not exceed system operating limits 
(SOL) for more than 30 minutes. The Commission also approves the 
retirement of WECC regional Reliability Standard TOP-STD-007-0, which 
is replaced by the regional Reliability Standard approved in this Final 
Rule. The Commission also directs WECC to modify the associated 
violation risk factors (VRF) and violation severity levels (VSL).
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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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I. Background

A. Mandatory Reliability Standards

    2. Section 215 of the FPA requires a Commission-certified Electric 
Reliability Organization (ERO) to develop mandatory and enforceable 
Reliability Standards, which are subject to Commission review and 
approval. 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\ See 16 U.S.C. 824o(e).
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    3. 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\ In Order No. 672,\5\ 
the Commission noted that:
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    \4\ A Regional Entity is an entity that has been approved by the 
Commission to enforce Reliability Standards under delegated 
authority from the ERO. See 16 U.S.C. 824o(a)(7) and (e)(4).
    \5\ Rules Concerning Certification of the Electric Reliability 
Organization; and Procedures for the Establishment, Approval, and 
Enforcement of Electric Reliability Standards, Order No. 672, FERC 
Stats. & Regs. ] 31,204 (2006), order on reh'g, Order No. 672-A, 
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.\6\
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    \6\ Id. P 291.

    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.\7\ 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.\8\
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    \7\ 16 U.S.C. 824o(d)(3).
    \8\ Id. Sec.  824o(d)(2).
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B. WECC Regional Reliability Standards

    4. On April 19, 2007, the Commission accepted delegation agreements 
between NERC and each of eight Regional Entities.\9\ In the order, the 
Commission accepted WECC as a Regional Entity organized on an 
interconnection-wide basis. As a Regional Entity, WECC oversees Bulk-
Power 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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    \9\ North American Electric Reliability Corp., 119 FERC ] 61,060 
(2007).
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    5. In June 2007, the Commission approved eight regional Reliability 
Standards that apply in the Western Interconnection, including TOP-STD-
007-0.\10\ Currently-effective TOP-STD-007-0 has the stated purpose of 
ensuring that the Western Interconnection's operating transfer 
capability (OTC) limits requirements are not exceeded. In approving the 
current regional Reliability Standard, the Commission found that it was 
more stringent than the corresponding continent-wide Reliability 
Standard TOP-007-0.
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    \10\ North American Electric Reliability Corp., 119 FERC ] 
61,260 (2007) (June 2007 Order).
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    6. However, the Commission also directed WECC to develop 
modifications to TOP-STD-007-0 to address certain shortcomings 
identified by NERC with regard to such matters as format, aligning WECC 
regional definitions with the NERC Glossary of Terms used in 
Reliability Standards,

[[Page 23471]]

and removing compliance and measure references.\11\
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    \11\ Id. P 55, 110.
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C. WECC Regional Reliability Standard TOP-007-WECC-1

    7. On March 25, 2009, NERC submitted a petition to the Commission 
seeking approval of TOP-007-WECC-1 and requesting the concurrent 
retirement of currently effective TOP-STD-007-0.\12\ NERC requests an 
effective date for the proposed regional Reliability Standard on the 
first day of the first quarter after applicable regulatory approval.
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    \12\ North American Reliability Corp., March 25, 2009 Petition 
for Approval of Proposed Western Electric Coordinating Council 
Regional Reliability Standard TOP-007-WECC-1 (NERC Petition).
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    8. TOP-007-WECC-1 applies to transmission operators for the 
transmission paths in the most current table titled ``Major WECC 
Transfer Paths in the Bulk Electric System'' (WECC Transfer Path Table) 
located on the WECC Web site.\13\ The stated purpose of the regional 
Reliability Standard is to ensure that actual flows and associated 
scheduled flows on major WECC transfer paths do not exceed a SOL for 
more than 30 minutes.
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    \13\ See WECC Transfer Path Table, available at: http://www.wecc.biz/Docs/Documents/Table%20Major%20Paths%204-28-08.doc. The 
Transfer Path Table includes a footnote that provides, ``[f]or an 
explanation of terms, path numbers, and definition for the paths 
refer to WECC's Path Rating Catalog.''
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    9. NERC states that the regional Reliability Standard satisfies the 
factors, set forth in Order No. 672, that the Commission considers when 
determining whether a proposed Reliability Standard is just, 
reasonable, not unduly discriminatory or preferential and in the public 
interest.\14\ According to NERC, TOP-007-WECC-1 is clear and 
unambiguous regarding what and who is required to comply. NERC states 
that TOP-007-WECC-1 has clear and objective measures for compliance and 
achieves a reliability goal (namely, that operating power flows along 
major paths are within not only interconnection reliability operating 
limits (IROLs) but also SOLs) effectively and efficiently. NERC also 
states that the requirements in TOP-007-WECC-1 are intended to be more 
stringent than and cover areas not covered by the corresponding 
continent-wide Reliability Standard TOP-007-0. NERC also notes that its 
public posting of the proposed regional Reliability Standard did not 
elicit any significant technical objection.\15\
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    \14\ Order No. 672, FERC Stats. & Regs. ] 31,204 at P 323-337.
    \15\ NERC Petition at 9.
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    10. TOP-007-WECC-1 contains two Requirements and one Sub-
requirement, summarized as follows:
    Requirement R1: Requires a transmission operator of a major WECC 
transfer path to take immediate action to return actual flows that are 
in excess of the path's system operating limits to within the SOLs in 
no longer than 30 minutes.
    Requirement R2: Requires a transmission operator of a major WECC 
transfer path to ensure that the net scheduled interchange across the 
path does not exceed the path's SOLs, when the transmission operator 
implements its real-time schedules for the next hour.
    Sub-requirement R2.1: requires a transmission operator of a major 
WECC transfer path to adjust the net scheduled interchange across the 
path within 30 minutes so that it does not exceed the path's new SOL 
value if the SOL decreases within 20 minutes before the start of the 
hour.
    11. In the Petition, NERC asserts that the regional Reliability 
Standard covers matters not covered by a continent-wide Reliability 
Standard and is more stringent than the corresponding continent-wide 
Reliability Standard, TOP-007-0. NERC explains that the continent-wide 
Reliability Standard TOP-007-0, requires the transmission operator to 
return its transmission path flows to within interconnection 
reliability operating limits (IROLs) as soon as possible, but no longer 
than 30 minutes following a contingency or event, whereas the regional 
Reliability Standard, TOP-007-WECC-1, requires the transmission 
operator of a major WECC transfer path to take immediate action to 
return the actual power flow to within SOLs such that at no time shall 
the power flow exceed the SOLs for longer than 30 minutes. In sum, 
there is no continent-wide Reliability Standard requirement to return 
the transmission system to within SOL within a certain time , only a 
requirement to report to the Reliability Coordinator when a SOL has 
been exceeded. NERC notes that TOP-007-WECC-1 specifically applies to 
the major paths in the Western Interconnection regardless of whether 
the limit is defined as an IROL or a SOL. Further, the requirement in 
regional Reliability Standard TOP-007-WECC-1 for maintaining Net 
Scheduled Interchange within a path's SOL is also not covered in the 
continent-wide Reliability Standards.
    12. NERC also provides, as Exhibit C to its Petition, a Record of 
Development of Proposed Reliability Standard. Included in the 
approximately 100-page development record is a ``mapping document'' 
prepared by the WECC standards drafting team that compares the related 
provisions of the currently-effective regional Reliability Standard, 
TOP-STD-007-0, to the modified regional Reliability Standard, TOP-007-
WECC-1 and discusses the proposed change and impact.\16\
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    \16\ See NERC Petition, Exhibit C, Comparison of WECC Standard 
TOP-STD-007-0 to proposed WECC Standard TOP-007-WECC-1.
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D. Notice of Proposed Rulemaking

    13. On December 16, 2010, the Commission issued a Notice of 
Proposed Rulemaking (NOPR) proposing to approve TOP-007-WECC-1 as just, 
reasonable, not unduly discriminatory or preferential, and in the 
public interest.\17\ The Commission proposed to approve TOP-007-WECC-1 
because regional Reliability Standard TOP-007-WECC-1 appears to cover 
topics not covered by the corresponding continent-wide Reliability 
Standard, TOP-007-0, thus meeting a criterion for approving a regional 
difference. Specifically, the NOPR stated that TOP-007-WECC-1 
Requirement R1 would require the transmission operator of a major WECC 
transfer path to take immediate action to return the actual power flow 
to within SOLs such that at no time shall the power flow exceed the 
SOLs for longer than 30 minutes. While NERC's continent-wide 
Reliability Standards do have a requirement to report exceeding SOLs to 
the reliability coordinator, they do not have a requirement to return 
the transmission system to within SOLs within a time certain. The 
Commission also stated that Requirement R2 of the regional Reliability 
Standard would prohibit the transmission operator from having the net 
scheduled interchange for power flow over an interconnection or 
transmission path above the path's SOL when the transmission operator 
implements its real-time schedules for the next hour, while there 
currently is no such requirement in a NERC Reliability Standard. In 
addition to these stringencies, the regional Reliability Standard 
addresses modifications directed by the Commission in the June 2007 
Order.
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    \17\ Version One Regional Reliability Standard for Transmission 
Operations, Notice of Proposed Rulemaking, 75 FR 81,157 (Dec. 27, 
2010), FERC Stats. & Regs. ] 32,668 (2010).
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    14. However, the Commission requested further clarification in the 
NOPR regarding several aspects of the regional Reliability Standard in 
order to better understand certain concerns not fully explained in the 
NERC Petition. Specifically, the Commission asked for comments and 
additional information

[[Page 23472]]

about the following concerns: (1) Whether TOP-007-WECC-1 would allow 
transmission operators to operate the system at a single contingency 
away from cascading failure for up to 30 minutes; (2) the change in the 
time allowed to respond to a stability-limited SOL violation from 20 to 
30 minutes; (3) the substitution of the term ``system operating limit'' 
for the term ``operating transfer capability''; and (4) replacement of 
the WECC Transfer Path Table attachment to the regional Reliability 
Standard with an internet link. The Commission also proposed to direct 
WECC to develop a modification to the regional Reliability Standard to 
address a Commission concern regarding the WECC Transfer Path Table and 
to revise the VRF and VSL assignments as described and addressed below.
    15. In response to the NOPR, comments were filed by four interested 
parties.\18\ The comments generally support the approval of TOP-007-
WECC-1. The comments also offered additional clarification and data 
that assisted the Commission in the evaluation of TOP-007-WECC-1. In 
the discussion below, we address the issues raised by these comments.
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    \18\ Comments were submitted by PacifiCorp, Bonneville Power 
Administration (BPA), WECC, and San Diego Gas & Electric Company 
(SDG&E).
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II. Discussion

    16. The Commission approves TOP-007-WECC-1 as just, reasonable, not 
unduly discriminatory or preferential, and in the public interest. TOP-
007-WECC-1 covers topics not covered by the corresponding continent-
wide Reliability Standard, TOP-007-0, thus meeting a criterion for 
approving a regional difference. Specifically, Requirement R1 requires 
the transmission operator of a major WECC transfer path to take 
immediate action to return the actual power flow to within SOLs such 
that at no time shall the power flow exceed the SOLs for longer than 30 
minutes. While there is a requirement in the continent-wide Reliability 
Standards to report exceeding SOLs to the reliability coordinator, 
specifically Reliability Standard TOP-007-1, the continent-wide 
Reliability Standards do not have a requirement to return the 
transmission system to within SOLs within a time certain and thus the 
addition of this time limitation makes the regional standard more 
stringent than the continental standards. Additionally, TOP-007-WECC-1 
Requirement R2 prohibits the transmission operator from having the net 
scheduled interchange for power flow over an interconnection or 
transmission path above the path's SOL when the transmission operator 
implements its real-time schedules for the next hour. There is no such 
requirement in the continent-wide Reliability Standards. In addition to 
these added stringencies, the regional Reliability Standard addresses 
modifications directed by the Commission in the June 2007 Order. In 
addition, the Commission finds that the regional Reliability Standard 
is just and reasonable in that it is clear and unambiguous regarding 
what is required and who is required to comply and that it has clear 
and objective measures for compliances. Further, the regional 
Reliability Standard is in the public interest as it will serve to 
achieve a reliability goal, namely, that operating power flows along 
major paths are within not only interconnection reliability operating 
limits but also SOLs. For these reasons, the Commission approves TOP-
007-WECC-1.
    17. Below, we address the four specific issues regarding TOP-007-
WECC-1 that were raised in the NOPR and addressed by commenters: (1) 
Whether TOP-007-WECC-1 would allow transmission operators to operate 
the system at a single contingency away from cascading failure for up 
to 30 minutes; (2) the appropriateness of a 30 minute time limit for 
responding to a stability-limited SOL violation; (3) the substitution 
of the term ``system operating limit'' for the term ``operating 
transfer capability''; and (4) removal of the WECC Transfer Path Table 
from the regional Reliability Standard. Regarding the fourth issue, the 
WECC Transfer Path Table, the Commission directs WECC to address the 
concern regarding the need for WECC to develop a means to provide 
consistency and transparency when making revisions to the list of major 
transmission paths. Last, the Commission directs WECC to modify the 
associated VRFs and VSLs.

A. Operating One Contingency Away From a Cascading Outage

    18. In the NOPR, the Commission expressed concern that a plain 
reading of the proposed regional Reliability Standard's Requirement R1 
does not explicitly require a transmission operator to operate the 
system in a manner that is two contingencies from a cascading outage. 
Specifically, Requirement R1 appears to allow the power flow, during 
steady state conditions, to exceed a stability-limited SOL for up to 30 
minutes, which could mean that the system would be one contingency away 
from a cascading failure for that period of time. The Commission's 
concern arose from the fact that this requirement did not carry over 
from TOP-STD-007-0, which is being replaced by TOP-007-WECC-1.
    19. As previously noted above, in the June 2007 Order, the 
Commission approved TOP-STD-007-0 as a WECC regional Reliability 
Standard. In the June 2007 Order, the Commission noted that the wording 
of TOP-STD-007-0 Requirement WR1.b, which provides that ``[t]he 
interconnected power system shall remain stable upon loss of any one 
single element without system cascading that could result in the 
successive loss of additional elements,'' suggests that WECC expects 
that stability-limited SOLs will be addressed in such a manner that the 
system is two contingencies away from a cascading failure. The 
Commission noted, however, that Measure WM1 of TOP-STD-007-0 may not be 
consistent with Requirement WR1.b, and that the Measure could allow the 
power system to be operated one contingency away from a cascading 
outage. The Commission directed NERC and WECC to submit a filing within 
30 days of the date of the order explaining whether Requirement WR1.b 
is consistent with an interpretation to operate two contingencies away 
from cascading failure and to clarify any inconsistency between 
Requirement WR1.b and corresponding Measure WM1.\19\ WECC clarified in 
its compliance filing that ``[t]he WECC transmission grid must be 
operated such that no cascading occurs following a single 
contingency.'' \20\
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    \19\ June 2007 Order, 119 FERC ] 61,260 at P 108-109.
    \20\ North American Electric Reliability Corp., Compliance 
Filing, Docket No. RR07-11-000, at 7 (filed Jul. 9, 2007).
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    20. In the NOPR, the Commission noted that TOP-007-WECC-1 does not 
explicitly incorporate this clarification in its Requirements. The 
Commission further indicated that TOP-007-WECC-1 could be interpreted 
as affirmatively permitting the power system to be operated one 
contingency away from a cascading outage, the same concern the 
Commission raised with respect to TOP-STD-007-0. The Commission further 
noted that NERC's continent-wide Reliability Standard TOP-004-2, 
Requirement R2, which prohibits operating a single contingency away 
from cascading outage, appears to conflict with TOP-007-WECC-1. The 
Commission sought comment on this issue.
Comments
    21. WECC agrees with the Commission that TOP-007-WECC-1 does not 
explicitly require a

[[Page 23473]]

transmission operator to operate the system in a manner that is at 
least two contingencies away from cascading outages. However, WECC 
states that it is not necessary to include such a requirement in TOP-
007-WECC-1 because WECC upholds and enforces that requirement through 
other means, e.g. in its derivation of SOLs, which WECC states has not 
changed. Specifically, WECC reiterates its past statements that ``[t]he 
WECC transmission grid must be operated such that no cascading occurs 
following a single contingency''.\21\ Additionally, WECC states that 
all transmission operators in the Western Interconnection must comply 
with the continent-wide NERC Reliability Standard TOP-004-2 Requirement 
R2, which states that the system must be operated such that the most 
severe single contingency that could occur on a system will not cause 
separation, instability, or cascading outages.
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    \21\ WECC Comments at 4 (citing North American Electric 
Reliability Corp., Compliance Filing, Docket No. RR07-11-001, at 7-8 
(filed Jul. 9, 2007)).
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    22. PacifiCorp states that the decision to not carry over to TOP-
007-WECC-1 Requirement WR1 from the TOP-STD-007-0 is appropriate 
because the Requirement WR1 is redundant with other mandatory and 
enforceable Reliability Standards, including TOP-004-2 Requirement R2. 
TOP-004-2 Requirement R4 states that if a transmission operator enters 
an unknown operating state (i.e., any state for which valid operating 
limits have not been determined), it will be considered to be in an 
emergency and the transmission operator shall restore operations to 
respect proven reliable power system limits within 30 minutes. 
PacifiCorp asserts that under this framework, a transmission operator 
operates its system, under steady state conditions, so that cascading 
outages will not occur as a result of the most severe single 
contingency. However, if a transmission operator enters an unknown 
operating state (where it is possible that the transmission operator is 
operating a single contingency away from a cascading outage) it has 30 
minutes to restore operations to within proven system limits. 
PacifiCorp states that TOP-007-WECC-1 mirrors the operating framework 
required in TOP-004-2 except that the 30-minute recovery period is 
triggered by exceeding a path limit rather than entering an unknown 
operating state.
    23. Similarly, BPA states that it is unnecessary to carry over from 
TOP-STD-007-0, Requirement WR1, which requires transmission operators 
to operate the system in a manner that is two contingencies from a 
cascading outage, because that requirement is covered by other 
Reliability Standards, such as TOP-004-2. BPA also notes that the 
continent-wide Reliability Standard, TOP-007-0, does not contain a 
requirement like TOP-STD-007-0, Requirement WR1.b.
Commission Determination
    24. The Commission accepts WECC's representations that although a 
plain reading of the regional Reliability Standard's Requirement R1 
does not explicitly require a transmission operator to operate the 
system in a manner that is at least two contingencies from a cascading 
outage, WECC nonetheless upholds and enforces the requirement to 
operate at least two contingencies away from a cascading outage by 
other means. The Commission agrees with WECC that transmission 
operators in the Western Interconnection must comply with continent-
wide Reliability Standard TOP-004-2, which requires a transmission 
operator to operate so that instability, uncontrolled separation, or 
cascading outages will not occur as a result of the most severe single 
contingency. Therefore, the Commission agrees with commenters that 
adding Requirement WR1.b of TOP-STD-007-0 to TOP-007-WECC-1 would be 
largely duplicative of TOP-004-2 Requirement R2. The Commission 
reiterates that the lack of such a requirement in TOP-007-WECC-1 does 
not absolve a transmission operator from the requirement to operate the 
system in a manner that it is at least two contingencies away from 
cascading at all times during steady state operating conditions. Based 
on the above discussion, the Commission finds that it is unnecessary to 
modify TOP-007-WECC-1 with respect to this issue.

B. Change in Response Time From 20 to 30 Minutes

    25. In the NOPR, the Commission noted that the modified regional 
Reliability Standard TOP-007-WECC-1 sets a 30-minute limit for 
returning actual flows on stability-limited paths to within the SOL 
ratings. The currently-effective regional Reliability Standard, TOP-
STD-007-0, which is being replaced by TOP-007-WECC-1, has a 20-minute 
limit. Specifically, TOP-STD-007-0, WM1, requires transmission 
operators to return actual flows to within the path's OTC ratings in no 
more than 20 minutes on stability-limited paths, and within 30 minutes 
for thermally-limited paths.\22\ Conversely TOP-007-WECC-1, which will 
replace TOP-STD-007-0, sets a uniform 30-minute time limit for both 
stability-limited and thermally-limited paths.
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    \22\ Currently effective regional Reliability Standard TOP-STD-
007-0 uses the term ``operating transfer capability'' with respect 
to this requirement, whereas, in TOP-007-WECC-1, the term ``system 
operating limit'' is used in lieu of operating transfer capability.
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    26. In the NOPR, the Commission noted that it would evaluate the 
proposed 10-minute decrease in the time limit for returning actual 
flows on stability-limited paths to within SOL ratings on its merit so 
long as adequate reliability is maintained.\23\ However, the Commission 
found that the technical information provided in NERC's Petition and in 
the standard development record for TOP-007-WECC-1 is insufficient to 
ensure that with the 20 to 30 minute time limit change, adequate 
reliability is maintained. Thus, the Commission requested that WECC, 
NERC and other interested entities provide an explanation and 
supporting technical data demonstrating that changing from a 20 to 30 
minute response time is ``insignificant in terms of the probability of 
the next contingency occurring''.\24\
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    \23\ Version One Regional Reliability Standard for Resource and 
Demand Balancing, 133 FERC ] 61,063, at P 30 (2010).
    \24\ NERC Petition at 28.
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Comments
    27. WECC responds that experience has shown that 20 minutes is not 
enough time to make an informed decision and implement that decision to 
return to within the applicable SOL rating. WECC explains that the 
original 20-minute limit for returning to within SOLs was developed 
when the NERC Disturbance Control Standard (DCS) recovery period was 10 
minutes rather than the current 15 minutes. When NERC adopted a 15-
minute DCS recovery period, no adjustment was made to the 20-minute 
limit for returning to within SOLs. WECC also states that because it 
takes time to assess the conditions that caused the SOL violation and 
identify corrective actions, the 20-minute time limit may result in 
potentially excessive actions to reduce the flows back to within the 
SOL, which may place the system at a greater risk than is necessary to 
mitigate the SOL violation. WECC notes that experts in the Western 
Interconnection agree that this risk exceeds any perceived risk of 
extending the time limit from 20 to 30 minutes. WECC also states that 
because major paths in the Western Interconnection may change from 
being

[[Page 23474]]

stability-limited to thermally-limited from time-to-time, a uniform 30-
minute window for returning a path to within the SOL eliminates 
potential confusion stemming from the dual time limits used in TOP-STD-
007-1.\25\
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    \25\ WECC suggests that when considering risk to the bulk 
electric system, there is no substantial difference between 
thermally-limited and stability-limited paths. WECC Comments at 9.
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    28. WECC also argues that the corresponding continent-wide 
Reliability Standard, TOP-007-0, sets a 30-minute time limit for 
returning the system to within an IROL,\26\ and notes that an IROL 
violation is, by definition, more severe than a SOL violation. 
Therefore, WECC states that the 30-minute time limit provided in TOP-
007-WECC-1 to correct a SOL violation is reasonable.
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    \26\ IROL is defined in the NERC Glossary of Terms as: ``A 
System Operating Limit that, if violated, could lead to instability, 
uncontrolled separation, or Cascading Outages that adversely impact 
the reliability of the Bulk Electric System.'' See NERC Glossary of 
Terms at 23, available at http://www.nerc.com/files/Glossary_of_Terms_2011Mar15.pdf.
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    29. BPA states that increasing the response time from 20 minutes to 
30 minutes does not significantly increase the exposure to a next 
contingency. Rather, a 20-minute response time reduces the reliability 
of operation and exposes the system to greater possibility of human 
error. Specifically, BPA states that a 30-minute response time is 
necessary to allow a transmission operator to take the steps necessary 
to return a stability-limited path to within SOL. BPA asserts that 
there is no technical basis for setting a shorter timeframe for 
returning a stability-limited path to within SOL than a thermally-
limited path. BPA states that the shorter (20-minute) time limit for 
stability limited paths was originally adopted by WECC based on an 
assumption that a shorter response time reduces the probability of 
incurring the next contingency and therefore the risk of cascading 
outage. However, because the complexity of system operations has 
increased, 20 minutes is no longer enough time for adequate 
coordination. Like WECC, BPA also notes that some paths will change 
from stability-limited ratings to thermally-limited ratings for 
specific outages, and the variation in time limits has caused confusion 
even at the reliability coordinator level.
    30. BPA also submitted an Outage Probability Analysis that shows 
that for a 10-minute time period: (i) For lines operated at 230 kV and 
above, the increased risk of an additional contingency occurring is 
0.0008 percent; and (ii) for lines operated at 230 kV and below, the 
increased risk of an additional contingency occurring is 0.0003 
percent. BPA concludes from this data that increasing the response time 
from 20 minutes to 30 minutes does not significantly increase the risk 
of exposure to an additional contingency during the response period.
Commission Determination
    31. The Commission finds that WECC and BPA have adequately 
supported the change from a dual 20/30-minute time limit to a uniform 
30-minute time limit for correcting SOL violations. The change 
eliminates possible confusion among operators. Further, the 
requirements of the regional Reliability Standard are consistent with 
the 30 minute timeframe for the transmission operator to implement 
corrective actions to bring the system back within IROL limits provided 
for in the corresponding continent-wide Reliability Standard, TOP-007-
0. We also note that the corresponding continent-wide Reliability 
Standard, TOP-007-0, also requires that actions to mitigate the 
overload begin as soon as possible. Finally, no comments were received 
opposing the increase in response time. Accordingly, the Commission 
finds the revised regional Reliability Standard will not threaten 
reliability and can be approved as reasonable.

C. Terminology

    32. In the NOPR, the Commission questioned the appropriateness of 
replacing the term ``operating transfer capability'' limit as used in 
the currently-effective Reliability Standard TOP-STD-007-0, with the 
term ``SOL,'' as used in TOP-007-WECC-1.\27\ The Commission stated that 
the term ``SOL'' is used within the Western Interconnection to refer to 
the facility or element that presents the most limiting of the 
prescribed operating criteria for the rated system path.\28\ Whereas, 
the OTC limit corresponds to the ``maximum amount of actual power 
transferred over direct or parallel transmission elements from one 
transmission operator to another transmission operator.'' \29\ The 
Commission expressed concern that the terms SOL and OTC appear to 
measure different things. Specifically, the Commission noted that the 
facilities that make up the SOL may not be part of those facilities 
that make up the rated system path, i.e., direct or parallel 
transmission elements comprising: (1) An interconnection from one 
transmission operator area to another transmission operator area; or 
(2) a transfer path within a transmission operator area. When the term 
``OTC'' is replaced by ``SOL,'' this requirement could result in a 
transmission operator being responsible for monitoring the flows on 
transmission system operating limit facilities that may not be on its 
``rated system path.'' This creates the possibility that an entity 
could be responsible for operating facilities that are not part of the 
rated path system shown in the WECC Transfer Path Table and Catalog. 
The Commission sought comment regarding: (i) The manner in which a 
transmission operator would address SOL facilities that are not part of 
the rated system path; (ii) the possibility that transmission operators 
may, under TOP-007-WECC-1, be responsible for facilities that they do 
not own and which are not on the rated system path but comprise the 
SOL; and (iii) whether the use of the term SOL rather than the term OTC 
is inconsistent with the WECC Path Rating Catalog and would cause 
confusion. Thus, we requested commenters to clarify the proper 
understanding of the two terms.
---------------------------------------------------------------------------

    \27\ TOP-STD-007-0 has the stated purpose of ensuring that the 
OTC limits requirements of the Western Interconnection are not 
exceeded. The stated purpose of TOP-007-WECC-1 is to ensure that 
actual flows and associated scheduled flows on Major WECC Transfer 
Paths do not exceed SOLs for more than 30 minutes.
    \28\ The most limiting facility or element may be either 
thermally or stability limited.
    \29\ See currently-effective regional Reliability Standard TOP-
STD-007-0, Requirement WR1.
---------------------------------------------------------------------------

Comments
    33. WECC states that in light of the Commission's concerns 
regarding the proliferation of regional terms, WECC retired the 
regional term, ``OTC,'' and substituted the continent-wide NERC term, 
``SOL.'' WECC comments that there are slight differences in the 
language of the definitions of OTC limits and SOLs but the intent and 
the effect on the limits developed is the same. BPA and WECC state that 
both terms (SOL and OTC) are calculated using the same methodologies 
and result in the same values. Thus by using the term SOL, WECC states 
that it has not changed how the requirements of TOP-007-WECC-1 will be 
enforced. Specifically, WECC notes that as is the case under currently-
effective TOP-STD-007-0, the new Reliability Standard, TOP-007-WECC-1 
identifies transmission operators as the applicable entity for 
returning the system to within an SOL. BPA and WECC state that WECC 
simply has interchanged the terms OTC and SOL in response to the 
Commission's concerns related to the proliferation of regional terms 
and has not changed the definition or the process by which the limits 
are developed.
    34. With respect to the Commission's concern that replacing 
``OTC,'' with

[[Page 23475]]

``SOL'' could result in a transmission operator being responsible for 
monitoring the flows on transmission system operating limit facilities 
that may not be on its ``rated system path'' as shown in the WECC 
Transfer Path Table and the referenced Path Rating Catalog, WECC states 
it is not changing how that value is derived or how the requirements of 
the proposed regional Reliability Standard will be enforced. Further, 
WECC states that the responsibilities of transmission operators will 
not change and that the Commission should not be concerned with this 
change.
Commission Determination
    35. The Commission finds that WECC has adequately explained its 
intended use of ``SOL'' in TOP-007-WECC-1 as a replacement for the term 
``OTC'' as used in TOP-STD-007-0. We accept WECC's explanation that all 
it has done is to replace references to ``OTC'' with ``SOL'' in order 
to address the Commission's concern regarding the proliferation of 
regional terms. In response to our concern that use of the term ``SOL'' 
could result in a transmission operator being responsible for 
monitoring the flows on transmission system operating limit facilities 
that may not be on its ``rated system path,'' we accept WECC's 
explanation that the applicability of the regional Reliability Standard 
is clear and remains unchanged.

D. Applicability

    36. Currently-effective Reliability Standard TOP-STD-007-0 is 
applicable to transmission owners or operators that maintain 
transmission paths listed in the WECC Transfer Path Table, which is 
included as Attachment A to the Reliability Standard. The attachment 
identifies 40 major transmission paths in the Western Interconnection. 
TOP-007-WECC-1 does not include the WECC Transfer Path Table as an 
attachment; instead, a link to the internet Web site where WECC posts 
the Transfer Path Table is provided.
    37. In the NOPR, the Commission expressed concern that by 
referencing the WECC Transfer Path Table hosted on the WECC Web site, 
the applicability of TOP-007-WECC-1 could change without Commission and 
industry notice and opportunity to respond. The Commission sought 
comment on this issue as well as how NERC and WECC will ensure that any 
resulting changes to the applicability of the regional Reliability 
Standard will not reduce its effectiveness. The Commission further 
requested comment regarding the location, scope, and application of the 
criterion that governs when paths are added or removed from the WECC 
Transfer Path Table.
    38. Additionally, the Commission proposed to direct WECC to develop 
a modification to the Reliability Standard to address our concern. The 
Commission suggested three possible modifications: (1) Add to TOP-007-
WECC-1 the criterion for identifying and modifying major transmission 
paths listed in the WECC Transfer Path Table and make an informational 
filing with the Commission and NERC each time it makes a modification 
to the table or referenced catalog; (2) file the 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; or (3) include the WECC 
Transfer Path Table as an attachment to the modified Reliability 
Standard.
Comments
    39. WECC recognizes the Commission's concerns regarding the 
applicability of TOP-007-WECC-1 with respect to the location of the 
WECC transfer path table and supports modification of TOP-007-WECC-1 as 
outlined in the Commission's second suggestion in the NOPR. 
Specifically, WECC proposes to file its criteria for identifying and 
modifying major transmission paths listed in the WECC Transfer Path 
Table. WECC will publicly post any revisions to the WECC Transfer Path 
Table on its Web site and concurrently notify the Commission, NERC, and 
the industry of the change.
    40. PacifiCorp notes that WECC does not have an established process 
for notifying affected functional entities of any additions to or 
deletions from the WECC Transfer Path Table. PacifiCorp is concerned 
that WECC could change the WECC Transfer Path Table and, therefore, the 
applicability of TOP-007-WECC-1 without proper notification to affected 
transmission operators. Thus, PacifiCorp urges WECC to: (i) File its 
criteria for identifying and modifying major transmission paths listed 
in the WECC Transfer Path Table with the Commission; and (ii) post 
revised tables and referenced catalogs on its Web site before they 
become effective, with concurrent notification to NERC and the 
Commission.
    41. BPA also supports the Commission's proposal to require WECC to 
develop criteria making it clear how major transmission paths are 
included or excluded from the WECC Transfer Path Table.
    42. No commenter opposed the Commission's proposed directive on 
this issue.
Commission Determination
    43. Consistent with our NOPR proposal, WECC's and other parties' 
comments, the Commission directs WECC to file, within 60 days from the 
issuance of this Final Rule, WECC's criteria for identifying and 
modifying major transmission paths listed in the WECC Transfer Path 
Table. Moreover, the Commission accepts WECC's commitment to publicly 
post any revisions to the WECC Transfer Path Table on the WECC Web site 
with concurrent notification to the Commission, NERC, and industry. We 
believe that this process balances the interests of WECC in developing 
timely revisions to the WECC Transfer Path Table with the need for 
adequate transparency for transmission owners that are affected by 
changes to the WECC Transfer Path Table.

E. Violation Risk Factors and Violation Severity Levels

    44. In the NOPR, the Commission noted that TOP-007-WECC-1 and the 
corresponding continent-wide Reliability Standard TOP-007-0, share the 
same general reliability objective: To require transmission operators 
to take corrective action to reduce the amount of power flowing on a 
transmission path when it exceeds system operating limits or 
interconnection reliability operating limit to below the system 
operating limit or interconnection reliability operating limit and 
thereby minimize the amount of time the Bulk-Power System is operating 
one contingency away from a cascading outage. The Commission sought 
comment from NERC and WECC regarding why the TOP-007-WECC-1 violation 
risk factor (VRF) assignments are not aligned with the continent-wide 
Reliability Standard. The Commission proposed to direct WECC to modify 
the assigned VRFs for TOP-007-WECC-1, Requirements R1 and R2 from 
``medium'' and ``low,'' respectively, to ``high'' and requested comment 
on this proposal. The Commission also noted that WECC did not assign a 
VRF to the Sub-requirement.
    45. In the NOPR, the Commission noted that violation severity level 
(VSL) assignments do not conform to the NERC format, which both WECC 
and NERC acknowledge in the NERC Petition. The NERC Petition notes that 
WECC will address the formatting issue during the next revision of the 
regional Reliability Standard. In the NOPR, the Commission proposed to 
direct WECC to modify the VSL assignments associated with each 
Requirement and Sub-requirement of TOP-007-WECC-1,

[[Page 23476]]

and submit them in the approved table format.
Comments
    46. With respect to the VRF assignments, WECC states that the two 
Reliability Standards, TOP-007-0 and TOP-007-WECC-1, do not share the 
same reliability objective. WECC asserts that continent-wide 
Reliability Standard TOP-007-0 addresses both IROLs and SOLs, but only 
requires transmission operator action, other than reporting, for the 
violation of an IROL. WECC states that, on the other hand, the regional 
Reliability Standard requires transmission operators to take actions 
for violations of SOLs, which pose a lower risk to the Bulk-Power 
System than IROL violations. Therefore, WECC believes that a ``medium'' 
VRF for Requirement R1 is appropriate. WECC does agree, however, that 
Requirement R2 is incorrectly labeled as a ``low'' VRF and should be 
assigned a ``medium'' VRF. No comments were filed regarding the 
Commission's proposed directive regarding the VSL assignments.
Commission Determination
    47. A VRF is assigned to each Requirement of a Reliability Standard 
that relates to the expected or potential impact of a violation of the 
requirement on the reliability of the Bulk-Power System. VRFs are 
either: lower, medium or high.\30\ The Commission has established 
guidelines for evaluating the validity of each VRF assignment.\31\
---------------------------------------------------------------------------

    \30\ The specific definitions of high, medium and lower are 
provided in North American Electric Reliability Corp., 119 FERC ] 
61,145, at P 9 (VRF Order), order on reh'g, 120 FERC ] 61,145 (2007) 
(VRF Rehearing Order).
    \31\ The guidelines are: (1) Consistency with the conclusions of 
the Blackout Report; (2) consistency within a Reliability Standard; 
(3) consistency among Reliability Standards; (4) consistency with 
NERC's definition of the VRF level; and (5) treatment of 
requirements that commingle more than one obligation. See VRF 
Rehearing Order, 120 FERC ] 61,145 at P 8-13.
---------------------------------------------------------------------------

    48. NERC will also define up to four VSLs (low, moderate, high, and 
severe) as measurements for the degree to which the requirement was 
violated in a specific circumstance. For a specific violation of a 
particular Requirement, NERC or the Regional Entity will establish the 
initial value range for the base penalty amount by finding the 
intersection of the applicable VRF and VSL in the base penalty amount 
table in Appendix A of its sanction guidelines. On June 19, 2008, the 
Commission issued an order establishing four guidelines for the 
development of VSLs.\32\
---------------------------------------------------------------------------

    \32\ North American Electric Reliability Corp., 123 FERC ] 
61,284, at P 20-35 (VSL Order), order on reh'g & compliance, 125 
FERC ] 61,212 (2008). The VSL guidelines are: (1) VSL assignments 
should not have the unintended consequence of lowering the current 
level of compliance; (2) the VSL should ensure uniformity and 
consistency in the determination of penalties; (3) a VSL assignment 
should be consistent with the corresponding requirement; and (4) a 
VSL assignment should be based on a single violation, not on a 
cumulative number of violations.
---------------------------------------------------------------------------

    49. The Commission has reviewed the VRF assignments for TOP-007-
WECC-1 and it is our view that the VRFs assigned to Requirements R1 and 
R2 are not consistent with the above-described Commission guidance. The 
Commission does not agree with WECC that Requirement R1 should be 
assigned a ``medium'' VRF instead of ``high.'' The VRF Order guidance 
emphasizes consistency with NERC's definition of the VRF level. NERC 
defines a ``high'' risk requirement as follows: ``A requirement that, 
if violated, could directly cause or contribute to bulk electric system 
instability, separation, or a cascading sequence of failures, or could 
place the bulk electric system at an unacceptable risk of instability, 
separation, or cascading failures. * * *'' \33\
---------------------------------------------------------------------------

    \33\ NERC Violation Risk Factor, available at http://www.nerc.com/files/Violation_Risk_Factors.pdf (emphasis added).
---------------------------------------------------------------------------

    50. Requirement R1 applies to both stability and thermally 
constrained SOLs. Stability constrained SOLs by their nature can 
potentially have widespread system impacts such as instability, 
uncontrolled separation and voltage collapse. While WECC uses remedial 
action schemes (RAS) to control these dynamic challenges, the RAS can, 
in some cases, lead to controlled separation and controlled variations 
of stability impacts. Given the exposure to potential controlled 
separations, the Commission finds that the appropriate VRF for 
Requirement R1 is ``high.'' Accordingly, the Commission directs WECC to 
modify the VRF assignment to ``high'' and submit the modification in a 
compliance filing to be submitted within 120 days from the date this 
Final Rule issues.
    51. With respect to Requirement R2, as WECC acknowledges in its 
comments, Requirement R2 should be assigned a ``medium'' VRF. The 
Commission finds that Requirement R2 is not administrative in nature as 
it prohibits a transmission operator from allowing the net scheduled 
interchange across a path from exceeding the path's SOLs. Violations of 
Requirement R2 could directly affect the electrical state of the Bulk-
Power System. Thus, the nature of Requirement R2 is consistent with 
NERC's definition of a ``medium'' VRF assignment level rather than the 
``lower'' level. Accordingly, we direct WECC to modify the VRF 
assignment for Requirement R2 to ``medium'' and submit the modification 
in a compliance filing to be submitted within 120 days from the date 
this Final Rule issues.
    52. We note that WECC did not assign a VRF to Sub-requirement R2.1. 
Because a determination has not yet been made regarding NERC's pending 
petition in Docket No. RR08-4-005, in which NERC proposes a ``roll-up'' 
approach for VRF and VSL assignments by which VRFs and VSLs would only 
be assigned to the main requirements and not to the sub-requirements, 
the Commission will defer discussion on the appropriateness of this 
exclusion following Commission action on NERC's proposed ``roll-up'' 
approach.
    53. The Commission accepts WECC's commitment to revise the VSL 
assignments to conform to the NERC table format. Accordingly, we direct 
WECC to modify the VSL assignments for TOP-007-WECC-1, to reflect 
NERC's approved table format and include the revision as part of its 
compliance filing to be submitted within 120 days from the date this 
Final Rule issues.

III. Information Collection Statement

    54. The following collections of information contained in this rule 
have been submitted to the Office of Management and Budget (OMB) for 
review under section 3507(d) of the Paperwork Reduction Act of 
1995.\34\ OMB's regulations require OMB to approve certain information 
collection requirements imposed by agency rule.\35\ Upon approval of a 
collection(s) of information, OMB will assign an OMB control number and 
an expiration date. Respondents subject to the filing requirements of 
an agency rule will not be penalized for failing to respond to these 
collections of information unless the collections of information 
display a valid OMB control number.
---------------------------------------------------------------------------

    \34\ 44 U.S.C. 3507(d).
    \35\ 5 CFR 1320.11.
---------------------------------------------------------------------------

    55. The Commission solicited comments on the need for and the 
purpose of the information contained in regional Reliability Standard 
TOP-007-WECC-1 and the corresponding burden to implement it. The 
Commission received comments on specific Requirements in the regional 
Reliability Standard, which we address in this Final Rule. However, we 
did not receive any comments on our reporting burden estimates. The 
Commission has directed certain modifications to the Requirements in 
the regional Reliability Standard being approved. However, the

[[Page 23477]]

modifications do not affect the burden estimate provided in the NOPR.
    56. As provided in the NOPR, TOP-007-WECC-1, which would replace 
TOP-STD-007-0, does not modify or otherwise affect the burden related 
to the collection of information already in place. Thus, the 
replacement of the currently-effective regional Reliability Standard 
with TOP-007-WECC-1, including the limited modifications directed in 
this Final Rule, will neither increase the reporting burden nor impose 
any additional information collection requirements.
    Title: Mandatory Reliability Standards for the Western Electric 
Coordinating Council.
    Action: Proposed Collection FERC-725E.
    OMB Control No.: 1902-0246.
    Respondents: Businesses or other for-profit institutions; not-for-
profit institutions.
    Frequency of Responses: On occasion.
    Necessity of the Information: This Final Rule approves a regional 
Reliability Standard pertaining to System Operating Limits. The 
regional Reliability Standard is one of the standards that helps ensure 
the reliable operation of the electrical system in the Western 
Interconnection.
    Internal Review: The Commission has reviewed the regional 
Reliability Standard TOP-007-WECC-1 and determined that the standard's 
Requirements are necessary to meet the statutory provisions of the 
Energy Policy Act of 2005. The Commission has assured itself, by means 
of internal review, that there is specific, objective support for the 
burden estimates associated with the information requirements.
    57. Interested persons may obtain information on the reporting 
requirements by contacting: Federal Energy Regulatory Commission, 888 
First Street, NE., Washington, DC 20426 [Attention: Ellen Brown, Office 
of the Executive Director, e-mail: DataClearance@ferc.gov, Phone: (202) 
502-8663, fax: (202) 273-0873]. Comments on the requirements of this 
Final Rule may also be sent to the Office of Information and Regulatory 
Affairs, Office of Management and Budget, Washington, DC 20503 
[Attention: Desk Officer for the Federal Energy Regulatory Commission]. 
For security reasons, comments should be sent by e-mail to OMB at 
oira_submission@omb.eop.gov. Please reference FERC-725E and the docket 
number of this final rule in your submission.

IV. Environmental Analysis

    58. 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.\36\ 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.\37\ The actions taken in this 
Final Rule fall within this categorical exclusion in the Commission's 
regulations. Accordingly, neither an environmental impact statement nor 
environmental assessment is required.
---------------------------------------------------------------------------

    \36\ Order No. 486, Regulations Implementing the National 
Environmental Policy Act of 1969, FERC Stats. & Regs., Regulations 
Preambles 1986-1990 ] 30,783 (1987).
    \37\ 18 CFR 380.4(a)(2)(ii).
---------------------------------------------------------------------------

V. Regulatory Flexibility Act

    59. The Regulatory Flexibility Act of 1980 (RFA) \38\ 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.\39\ 
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.\40\ The RFA is not 
implicated by this rule because the modification discussed herein will 
not have a significant economic impact on a substantial number of small 
entities. Moreover, the regional Reliability Standard reflects a 
continuation of existing requirements for these reliability entities. 
Accordingly, no regulatory flexibility analysis is required.
---------------------------------------------------------------------------

    \38\ 5 U.S.C. 601-612.
    \39\ 13 CFR 121.101
    \40\ 13 CFR 121.201, Sector 22, Utilities & n.1.
---------------------------------------------------------------------------

VI. Document Availability

    60. 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.
    61. 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.
    62. 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 email 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.

VII. Effective Date and Congressional Notification

    63. These regulations are effective June 27, 2011. The Commission 
has determined, with the concurrence of the Administrator of the Office 
of Information and Regulatory Affairs of OMB, that this rule is not a 
``major rule'' as defined in section 351 of the Small Business 
Regulatory Enforcement Fairness Act of 1996.

List of Subjects in 18 CFR Part 40

    Electric power, Electric utilities, Reporting and recordkeeping 
requirements.

    By the Commission.
Kimberly D. Bose,
Secretary.
[FR Doc. 2011-10051 Filed 4-26-11; 8:45 am]
BILLING CODE 6717-01-P


