
[Federal Register: October 25, 2011 (Volume 76, Number 206)]
[Notices]               
[Page 66057-66060]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr25oc11-62]                         

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. RD11-8-000; 137 FERC ] 61,043]

 
North American Electric Reliability Corporation; Order Approving 
Regional Reliability Standard

Issued October 20, 2011.

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

    1. On May 31, 2011, the North American Electric Reliability 
Corporation (NERC), the Commission-certified Electric Reliability 
Organization (ERO), submitted a petition for Commission approval of the 
Northeast Power Coordinating Council's (NPCC) Protection and Control 
(PRC) regional Reliability Standard PRC-002-NPCC-01 (Disturbance 
Monitoring) and two associated new definitions. The regional 
Reliability Standard requires transmission owners and generator owners 
to provide recording capability necessary to monitor the response of 
the Bulk-Power System to system disturbances, including scheduled and 
unscheduled outages; requires each reliability coordinator to establish 
requirements for its area's dynamic disturbance recording needs; and 
establishes disturbance data reporting requirements.

    2. In this order, we approve regional Reliability Standard PRC-002-
NPCC-01, finding that it is just, reasonable, not unduly discriminatory 
or preferential, and in the public interest. Also, we approve NERC's 
requested implementation plan which provides staggered effective dates, 
i.e., the date on which applicable entities are subject to mandatory 
compliance, with full compliance required within four years of 
regulatory approval.

I. Background

    3. Section 215 of the Federal Power Act (FPA) requires the ERO to 
develop mandatory and enforceable Reliability Standards, which provide 
for the reliable operation of the Bulk-Power System, subject to 
Commission review and approval.\1\ Section 215(d)(2) of the FPA states 
that the Commission may approve, by rule or order, a proposed 
Reliability Standard or modification to a Reliability Standard if it 
determines that the Reliability Standard is just, reasonable, not 
unduly discriminatory or preferential, and in the public interest. Once 
approved, the Reliability Standard may be enforced by the ERO, subject 
to Commission oversight, or by the Commission independently.\2\
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    \1\ 16 U.S.C. 824o(d) (2006).
    \2\ See 16 U.S.C. 824o(e).
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    4. Reliability Standards that the ERO proposes to the Commission 
may include Reliability Standards that are developed by a Regional 
Entity.\3\ On April 19, 2007, the Commission approved delegation 
agreements between NERC and eight Regional Entities, including NPCC.\4\ 
In the Delegation Agreement Order, the Commission accepted NPCC as a 
Regional Entity and accepted NPCC's Standards Development Manual, which 
sets forth the process for NPCC's development of regional Reliability 
Standards.\5\ The NPCC region is a less than interconnection-wide 
region, and its standards apply only to that part of the Eastern 
Interconnection within the NPCC geographical footprint.
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    \3\ Id. Sec.  824o(e)(4).
    \4\ See North American Electric Reliability Corp., 119 FERC ] 
61,060, at P 316-350 (Delegation Agreement Order), order on reh'g, 
120 FERC ] 61,260 (2007).
    \5\ Id. P 302.
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    5. In Order No. 672, the Commission urged uniformity of Reliability 
Standards, but recognized a potential need for regional 
differences.\6\Accordingly, the Commission stated that:
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    \6\ Rules Concerning Certification of the Electric Reliability 
Organization; Procedures for the Establishment, Approval, and 
Enforcement of Electric Reliability Standards, Order No. 672, FERC 
Stats. & Regs. ] 31,204, at P 290, 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.\7\
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    \7\ Order No. 672, FERC Stats. & Regs. ] 31,204 at P 291.

    6. On March 16, 2007, the Commission issued Order No. 693, 
approving 83 of the 107 Reliability Standards filed by the ERO.\8\ In 
that order, the Commission determined that it would not take action on 
certain proposed Reliability Standards that required supplemental 
information from regional reliability organizations. Such Reliability 
Standards refer to regional criteria or procedures that had not been 
submitted to the Commission for approval and, as such, are referred to 
as ``fill-in-the-blank'' standards. Pending Reliability Standard PRC-
002-1 (Define Regional Disturbance Monitoring and Reporting) is one 
such fill-in-the-blank standard and, therefore, is not enforceable. 
NERC's continent-wide, fill-in-the-blank standard PRC-002-1 would 
require regional reliability organizations to establish: (i) 
Installation requirements for sequence of event recording, fault 
recording, and dynamic disturbance recording, and (ii) reporting 
requirements for recorded disturbance data. Because PRC-002-1 is an 
unenforceable and unapproved fill-in-the-blank standard, NPCC's 
proposed regional Reliability Standard PRC-002-NPCC-01 is intended to 
fill the reliability gap related to disturbance monitoring and 
reporting by establishing enforceable disturbance monitoring and 
reporting requirements for the NPCC region.
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    \8\ Mandatory Reliability Standards for the Bulk-Power System, 
Order No. 693, FERC Stats. & Regs. ] 31,242, order on reh'g, Order 
No. 693-A, 120 FERC ] 61,053 (2007).

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[[Page 66058]]

II. NERC Petition and Notice of Filing

    7. In its May 31, 2011 petition,\9\ NERC requests Commission 
approval of proposed regional Reliability Standard PRC-002-NPCC-01 
(Disturbance Monitoring) and two associated new definitions. NERC 
states that PRC-002-NPCC-01 is intended to ensure that adequate 
disturbance data is available to facilitate bulk electric system event 
analyses and thereby improve system reliability by promoting improved 
system design and operations.
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    \9\ North American Electric Reliability Corp., May 31, 2011 
Petition for Approval of Proposed NPCC Regional Reliability Standard 
PRC-002-NPCC-01 -- Disturbance Monitoring (NERC Petition).
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    8. The standard is applicable to transmission owners, generator 
owners, and reliability coordinators and contains 17 requirements that 
identify the proper locations for sequence of events recorders, fault 
recorders, and dynamic disturbance recorders within the NPCC region and 
specify the data to be captured and reported by this equipment.
    9. Sequence of events recorders capture the sequences of events for 
monitored changes of state in equipment and protection systems 
occurring in substations, switchyards, or power plants. Requirement R1 
requires that each transmission owner and generator owner provide 
sequence of events recording capability at specified locations either 
through installation of sequence of events recorders or as part of 
another device such as a remote terminal unit or a generator plant 
digital (or distributed) control system.
    10. Fault recorders capture and store power system waveforms that 
can be used to analyze transients and abnormalities in system 
frequency. Requirement R2 requires each transmission owner to provide 
fault recording capability for specified elements of the Bulk-Power 
System, and Requirement R3 requires that each transmission owner have 
fault recording capability that determines the ``Current Zero Time'' 
for loss of bulk electric system transmission elements. ``Current Zero 
Time'' is a new defined term used in PRC-002-NPCC-01 to mean the 
precise time of circuit interruption. It is defined as ``the time of 
the final current zero on the last phase to interrupt.''
    11. Requirement R4 requires each generator owner to provide fault 
recording capability for ``Generating Plants'' at and above 200 MVA and 
connected through a generator step-up transformer to a bulk electric 
system element, unless such recording capability is provided by the 
transmission owner. ``Generating Plants'' is a new term defined as 
``one or more generators at a single physical location whereby a single 
contingency can affect all the generators at that location.'' The term 
appears in this Requirement and in Requirement R1's description of 
where sequence of event recording capability is to be located. It is 
used to clarify that, for the sake of efficiency, one sequence of event 
recorder or a single fault recorder may be used where it will capture 
all the information from a single contingency affecting all the 
generators at a single location, and multiple recorders would be 
redundant.
    12. Because certain data are necessary for post-event analysis, 
Requirement R5 requires each transmission owner and generator owner to 
record for faults sufficient electrical quantities for each monitored 
bulk electric system element to determine: (i) Three phase-to-neutral 
voltages; (ii) three phase currents and neutral currents; (iii) 
polarizing currents and voltages, if used; (iv) frequency; and (v) real 
and reactive power. Requirement R6 sets out the recording 
specifications required of the fault recording equipment in order to 
ensure the monitored data is captured in sufficient detail for it to be 
meaningfully used in analyses.
    13. Dynamic disturbance recorders monitor power system conditions 
when the system experiences dynamic events such as low frequency 
oscillations, or frequency or voltage excursions. Requirement R7 
requires each reliability coordinator to establish dynamic disturbance 
recording needs for its area in accordance with specified recording 
requirements, and Requirement R8 requires that dynamic disturbance 
recorders function continuously. To capture system disturbance data 
with sufficient detail for use in post-event analyses, Requirement R9 
specifies the minimal recording duration, sample rate and trigger 
events for dynamic disturbance recorders. Requirement R10 requires each 
reliability coordinator to establish requirements to ensure that 
certain specified data are monitored or derived where dynamic 
disturbance recorders are installed.
    14. Requirement R11 requires each reliability coordinator to 
document additional settings and deviations from the required trigger 
settings described in Requirement R9 and the required list of monitored 
quantities described in Requirement R10 and to report these settings 
and deviations to the Regional Entity upon request. Requirement R12 
requires each reliability coordinator to specify its dynamic 
disturbance recording requirements, including trigger settings, to 
transmission owners and generator owners.
    15. Each transmission owner and generator owner that receives a 
request from its reliability coordinator to install a dynamic 
disturbance recorder is required, under Requirement R13, to acquire and 
install the recorder in accordance with an implementation schedule 
agreed to with the reliability coordinator. They also are required by 
Requirement R14 to establish a maintenance and testing program for 
their stand alone disturbance monitoring equipment (i.e., equipment 
whose only purpose is disturbance monitoring). The Requirement lists 
elements of such a program.
    16. Requirement R15 requires that each reliability coordinator, 
transmission owner, and generator owner share data within 30 days upon 
request, and each generator owner must provide recorded disturbance 
data from disturbance monitoring equipment within 30 days of receipt of 
a request for information from NERC, the Regional Entity, the 
reliability coordinator, or transmission or generator owners within 
NPCC. Requirement R16 specifies the format requirements for data files. 
Requirement R17 requires each reliability coordinator, transmission 
owner and generator owner to maintain, record and provide to the 
Regional Entity, upon request, specified data regarding the disturbance 
monitoring equipment installed to meet regional Reliability Standard 
PRC-002-NPCC-01.
    17. Notice of NERC's filing was published in the Federal Register, 
76 FR 40,350 (2011), with interventions and protests due on or before 
August 1, 2011. No motion to intervene or protest was received.

III. Discussion

    18. The Commission approves regional Reliability Standard PRC-002-
NPCC-01 as just, reasonable, not unduly discriminatory or preferential, 
and in the public interest. To that end, the Commission finds that PRC-
002-NPCC-01 satisfies the Order No. 672 factors on how the Commission 
determines whether a regional Reliability Standard is just and 
reasonable in that PRC-002-NPCC-01: (1) Is clear and unambiguous 
regarding what is required and who is required to comply (transmission 
owners, generator owners, and reliability coordinators within the NPCC 
region); (2) has clear and objective measures for compliance and 
achieves a reliability goal (namely, ensuring that adequate disturbance 
data is available to facilitate bulk electric system event analyses); 
and (3) is ``more stringent''

[[Page 66059]]

than NERC's existing unapproved and unenforceable continent-wide 
disturbance monitoring and reporting standard, PRC-002-1.
    19. Regional Reliability Standard PRC-002-NPCC-01 includes two new 
defined terms that apply only to the NPCC region: ``Current Zero Time'' 
and ``Generating Plant.'' The two proposed regional terms do not 
conflict with any existing terms in the NERC Glossary of Terms. 
Accordingly, the Commission approves the inclusion of the two regional 
terms related to PRC-002-NPCC-01 in the NERC Glossary specifically as 
NPCC regional terms.
    20. The Commission finds that the NERC's violation risk factors and 
violation severity levels for regional Reliability Standard PRC-002-
NPCC-01 are consistent with the Commission's established 
guidelines.\10\ We therefore approve the assigned violation risk 
factors and violation severity levels.
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    \10\ See North American Electric Reliability Corp., 119 FERC ] 
61,145, order on reh'g, 120 FERC ] 61,145, at P 8-13 (2007); North 
American Electric Reliability Corp., 123 FERC ] 61,284, at P 20-35, 
order on reh'g & compliance, 125 FERC ] 61,212 (2008); North 
American Electric Reliability Corp., 135 FERC ] 61,166 (2011).
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    21. As requested by NERC, the Commission approves the 
implementation plan for regional Reliability Standard PRC-002-NPCC-01.

IV. Information Collection Statement

    22. The Office of Management and Budget (OMB) regulations require 
approval of certain information collection requirements imposed by 
agency actions.\11\ Upon approval of a collection of information, OMB 
will assign an OMB control number and expiration date. Respondents 
subject to the filing requirement of this order will not be penalized 
for failing to respond to these collections of information unless the 
collections of information display a valid OMB control number. The 
Paperwork Reduction Act (PRA) \12\ requires each federal agency to seek 
and obtain OMB approval before undertaking a collection of information 
directed to ten or more persons, or continuing a collection for which 
OMB approval and validity of the control number are about to 
expire.\13\
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    \11\ 5 CFR 1320.10.
    \12\ 44 U.S.C . 3501-20.
    \13\ 44 U.S.C. 3502(3)(A)(i), 44 U.S.C. 3507(a)(3).
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    23. The Commission will submit these reporting and recordkeeping 
requirements to OMB for its review and approval under section 3507(d) 
of the PRA.\14\ Comments are solicited within sixty days of the date 
this order is published in the Federal Register on the Commission's 
need for this information, whether the information will have practical 
utility, the accuracy of provided burden estimates, ways to enhance the 
quality, utility, and clarity of the information to be collected, and 
any suggested methods for minimizing the respondent's burden, including 
the use of automated information techniques. Comments should be 
submitted following the Commission's submission guidelines at http://
www.ferc.gov/help/submission-guide.asp and should reference Docket No. 
RD11-8-000.
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    \14\ 44 U.S.C. 3507(d).
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    24. This Order approves regional Reliability Standard PRC-002-NPCC-
01 (Disturbance Monitoring) which introduces new mandatory and 
enforceable requirements for the applicable entities. It generally 
identifies the evidence that will be used to monitor compliance. NPCC 
presently has criteria addressing monitoring equipment and published 
guidance addressing maintenance and testing of such equipment. The 
Disturbance Monitoring Equipment Criteria \15\ seek the same or 
equivalent information identified in Reliability Standard PRC-002-NPCC-
01, and NPCC's guidance establishes maintenance and testing 
expectations similar to those imposed by the regional Reliability 
Standard.\16\ Thus, it is currently usual and customary for affected 
entities within NPCC to create, maintain and store some of the same or 
equivalent information identified in Reliability Standard PRC-002-NPCC-
01. Therefore, many of the requirements contained in PRC-002-NPCC-01 do 
not impose new burdens on the affected entities.\17\
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    \15\ Disturbance Monitoring Equipment Criteria (Aug. 2007), 
available at https://www.npcc.org/Standards/Criteria/A-15.pdf 
(Disturbance Monitoring Criteria).
    \16\ Guide for Application of Disturbance Recording Equipment 
(Sept. 2006), available at https:/www.npcc.org/Standards/Guides/B-
26.pdf (Application Guide).
    \17\ 5 CFR 1320.3(b)(2) (2011).
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    25. Several requirements contained in regional Reliability Standard 
PRC-002-NPCC-01 do introduce entirely new responsibilities for the 
applicable entities. Each such requirement is discussed below. 
Requirement R13 requires that each transmission owner and generator 
owner retain evidence that it acquired and installed dynamic 
disturbance recorders in accordance with the specifications requested 
by the reliability coordinator, and that the generator owner, 
transmission owner, and reliability coordinator retain evidence that 
they agreed on an implementation schedule. Requirement R14 requires 
that each transmission owner and generator owner establish a 
maintenance and testing program for stand-alone disturbance monitoring 
equipment. Sub-requirements 14.5 specifies that the program must 
require active analog quantities to be verified monthly, and Sub-
requirement 14.7 requires that if failed units cannot be returned to 
service within 90 days, the owner must record its efforts to restore 
the equipment to service. These components of the program have not been 
included in NPCC's current Disturbance Monitoring Criteria or 
Application Guide. Requirement R17 requires each reliability 
coordinator, transmission owner, and generator owner to maintain and 
record specific data on installed disturbance monitoring equipment, and 
submit the data to the Regional Entity upon request. Under the 
Disturbance Monitoring Criteria, the reliability coordinator was not 
obligated to maintain these records or provide the records to the 
Regional Entity.
    26. Public Reporting Burden: The estimate below regarding the 
number of respondents is based on the NERC compliance registry as of 
August 29, 2011. According to the NERC compliance registry, there are 
35 transmission owners, 136 generation owners, and five reliability 
coordinators in the NPCC region. However, under NERC's compliance 
registration program, entities may be registered for multiple 
functions, so these numbers incorporate some double counting. The net 
number of entities responding will be approximately 167 entities 
registered as a transmission owner, generation owner, or reliability 
coordinator. This includes eight entities registered as both a 
generation owner and transmission owner, as well as one entity 
registered as both a transmission owner and a reliability coordinator.
    27. We estimate that annually, approximately one entity within NPCC 
will have to procure dynamic disturbance recording capability. Based on 
Commission staff outreach and analysis, we estimate the total 
acquisition and installation cost will range between $150,000 and 
$750,000. We also estimate that an entity will experience a unit 
failure greater than 90 days once every five years. Therefore, 20 
percent of NPCC's 163 generator owners and transmission owners will 
experience a unit failure of this duration each year. The estimated 
burden for the requirements in this Order follow:

[[Page 66060]]



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                                                   Number of       Number of
                PRC-002-NPCC-01                   respondents    responses per     Average burden hours per  response      Total annual
                                                   annually       respondent                                                   hours
                                                           (1)             (2)  (3).....................................     (1 x 2 x 3)
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R13: GO \18\ and TO to document acquisition                  1               1  Record Retention........................              10              10
 and installation of dynamic disturbance
 recorders. GO, TO, and RC to develop and
 employ implementation schedule.
R14.5: GO and TO maintenance and testing                   163              12  Record Retention........................               5           9,780
 program for stand-alone disturbance
 monitoring equipment includes monthly
 verification of active analog quantities.
R14.7: GO and TO requirement to return failed               33               1  Reporting (assessment and dist. of                    10             330
 units to service in 90 days. Record kept of                                     records).
 efforts if greater than 90 days.
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                                                ..............  ..............  Record Retention........................              10             330
R17: RC maintains data on equipment, and                     5               1  Reporting (assessment and dist. of data)               5              25
 provide to RE upon request.
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                                                ..............  ..............  Record Retention........................              10              50
    Total.....................................  ..............  ..............  Reporting (assessment and dist).........  ..............             355
                                                                                                                         ===============================
                                                ..............  ..............  Record Retention........................  ..............          10,170
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\18\ For purposes of this chart, generation owner is abbreviated to GO, transmission owner is abbreviated to TO, and reliability coordinator is
  abbreviated to RC.

    Information Collection Costs: The Commission seeks comments on the 
costs to comply with these requirements and recordkeeping burden 
associated with regional Reliability Standard PRC-002-NPCC-01.
     Total Annual Hours for Collection: (Reporting and Record 
Retention) = 10,525 hours.
     Total Estimated Annual Record Retention Cost \19\ = 10,170 
hours @ $28/hour = $284,360
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    \19\ The hourly reporting cost is based on the estimated cost of 
an engineer to implement the requirements of the rule. The record 
retention cost comes from Commission staff research on record 
retention requirements.
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     Total Estimated Annual Reporting Cost = 355 hours @ $120/
hour = $42,600
     Total Estimated Annual Compliance Cost (acquisition and 
installation of dynamic disturbance recorders) = $750,000
     Total Estimated Annual Cost = $1,077,640
     Title: NPCC Regional Reliability Standards
     Action: Proposed Collection FERC-725I.
     OMB Control No: To be determined.
     Respondents: Business or other for profit, and/or not for 
profit institutions.
     Frequency of Responses: On occasion.
     Necessity of the Information: This proposed rule would 
approve a new regional Reliability Standard that requires entities 
within the NPCC region to identify the proper locations for sequence of 
events recorders, fault recorders, and dynamic disturbance recorders 
and specify the data to be captured and reported by this equipment.
     Internal review: The Commission has reviewed the 
requirements pertaining to the proposed regional Reliability Standard 
and determined that the proposed requirements are necessary to meet the 
statutory provisions of the Energy Policy Act of 2005. These 
requirements conform to the Commission's plan for efficient information 
collection, communication and management within the energy industry. 
The Commission has assured itself, by means of internal review, that 
there is specific objective support for the burden estimates associated 
with the information requirements.
    28. 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].
    The Commission orders:
    Regional Reliability Standard PRC-002-NPCC-01, its assigned VRFs 
and VSLs, inclusion of the terms ``Current Zero Time'' and ``Generating 
Plant'' in the NERC Glossary of Terms Used in Reliability Standards, 
and the implementation plan proposed by NERC are herby approved, as 
discussed in this order.

    By the Commission. Commissioner Spitzer is not participating.
Kimberly D. Bose,
Secretary.
[FR Doc. 2011-27567 Filed 10-24-11; 8:45 am]
BILLING CODE 6717-01-P

