
[Federal Register: October 25, 2011 (Volume 76, Number 206)]
[Notices]               
[Page 66055-66057]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr25oc11-61]                         

-----------------------------------------------------------------------

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. RD11-9-000]

 
North American Electric Reliability Corporation; Order Approving 
Interpretation of Reliability Standard; Before Commissioners: Jon 
Wellinghoff, Chairman; Philip D. Moeller, John R. Norris, and Cheryl A. 
LaFleur

Issued October 20, 2011.
    1. On April 15, 2011, the North American Electric Reliability 
Corporation (NERC), the Commission-certified Electric Reliability 
Organization (ERO), submitted a petition for Commission approval of an 
interpretation of Requirement R10 of Transmission Operations (TOP) 
Reliability Standard TOP-002-2a (Normal Operations Planning). This 
Reliability Standard requires, in pertinent part, each balancing 
authority and transmission operator to maintain plans to evaluate 
options and establish procedures for the reliable operation of the 
Bulk-Power System for current day and future operations, as well as 
coordinate current day and future operations with neighboring balancing 
authorities and transmission operators. Requirement R10, the subject of 
NERC's Petition, addresses the planning required to meet all System 
Operating Limits and Interconnection Reliability Operating Limits. NERC 
also requests that the Standard including the interpretation, which 
would be referred to as Reliability Standard TOP-002-2b, be made 
effective immediately upon the issuance of an order in this proceeding.
    2. In this order, the Commission finds that NERC's proposed 
interpretation of Requirement R10 of Reliability Standard TOP-002-2a is 
just, reasonable, not unduly discriminatory or preferential, and in the 
public interest. Therefore, the Commission approves the interpretation, 
referred to as Reliability Standard TOP-002-2b, effective as of the 
date of this order.

I. Background

    3. Section 215 of the Federal Power Act (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.\1\
---------------------------------------------------------------------------

    \1\ See 16 U.S.C. 824o(e) (2006).

---------------------------------------------------------------------------

[[Page 66056]]

    4. Pursuant to section 215 of the FPA, the Commission established a 
process to select and certify an ERO \2\ and, subsequently, certified 
NERC as the ERO.\3\ On March 16, 2007, the Commission issued Order No. 
693, approving 83 of the 107 Reliability Standards filed by NERC, 
including Reliability Standard TOP-002-2.\4\ On December 2, 2009, the 
Commission approved TOP-002-2a, an interpretation submitted by NERC on 
Requirement R11.\5\
---------------------------------------------------------------------------

    \2\ 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, order on reh'g, Order No. 672-A, FERC 
Stats. & Regs. ] 31,212 (2006).
    \3\ 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).
    \4\ 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).
    \5\ North American Electric Reliability Corp., 129 FERC ] 61,191 
(2009).
---------------------------------------------------------------------------

    5. NERC's Rules of Procedure provide that a person that is 
``directly and materially affected'' by Bulk-Power System reliability 
may request an interpretation of a Reliability Standard.\6\ The ERO's 
``standards process manager'' will assemble a team with relevant 
expertise to address the requested interpretation and also form a 
ballot pool. NERC's Rules provide that, within 45 days, the team will 
draft an interpretation of the Reliability Standard, with subsequent 
balloting. If approved by ballot, the interpretation is appended to the 
Reliability Standard and submitted to the Board of Trustees. Once 
approved by the Board of Trustees, the Reliability Standard with the 
interpretation is filed with the applicable regulatory authority for 
regulatory approval.
---------------------------------------------------------------------------

    \6\ NERC Rules of Procedure, Appendix 3A, Reliability Standards 
Development Procedure, Version 6.1, at 27-29 (2010).
---------------------------------------------------------------------------

II. NERC Petition

    6. In its April 15, 2011 Petition,\7\ NERC requests Commission 
approval of a proposed interpretation of Requirement R10 of Reliability 
Standard TOP-002-2a (Normal Operations Planning). The stated purpose of 
Reliability Standard TOP-002-2a is to ensure that current operations 
plans and procedures are prepared for reliable operations, including 
responses to unplanned events. Requirement R10, the subject of the 
proposed interpretation, requires:
---------------------------------------------------------------------------

    \7\ North American Electric Reliability Corp., April 15, 2011, 
Petition for Approval of an Interpretation of Requirement R10 of 
Reliability Standard TOP-002-2a (Petition).
---------------------------------------------------------------------------

    Each Balancing Authority and Transmission Operator shall plan to 
meet all System Operating Limits (SOLs) and Interconnection Reliability 
Operating Limits (IROLs).
    7. The Petition explains that NERC received a request from Florida 
Municipal Power Pool (FMPP) seeking an interpretation of Requirement 
R10 of Reliability Standard TOP-002-2a. Specifically, FMPP asked:
    In Requirement 10 is the requirement of the BA to plan to maintain 
load-interchange-generation balance under the direction of the TOPs 
meeting all SOLs and IROLs?
    8. In response to FMPP's interpretation request, NERC provided the 
following interpretation:
    Yes. As stated in the NERC Glossary of Terms Used in Reliability 
Standards, the Balancing Authority is responsible for integrating 
resource plans ahead of time, maintaining load-interchange-generation 
balance within a Balancing Authority Area, and supporting 
Interconnection frequency in real time. The Balancing Authority does 
not possess the Bulk Electric System information necessary to manage 
transmission flows (MW, MVAR or Ampere) or voltage. Therefore, the 
Balancing Authority must follow the directions of the Transmission 
Operator to meet all SOLs and IROLs.
    9. In the Petition, NERC explains that the interpretation is 
consistent with the stated purpose of the Reliability Standard, which 
is to ensure that current operations plans and procedures are prepared 
for reliable operation, including response to unplanned events. The 
NERC Glossary of Terms Used in Reliability Standards (NERC Glossary) 
definitions for balancing authority and transmission operator are 
referenced along with an explanation that the balancing authority does 
not possess information needed to manage flows or voltage, thus 
requiring the balancing authority to follow direction of the 
transmission operator or reliability coordinator. Further, the Petition 
states that when balancing authority actions do not resolve targeted 
transmission issues, the transmission operator or reliability 
coordinator is responsible for directing alternative actions.\8\
---------------------------------------------------------------------------

    \8\ Id. 6-7.
---------------------------------------------------------------------------

III. Notice of Filing, Interventions and Comments

    10. On August 22, 2011, notice of NERC's filing was published in 
the Federal Register with interventions and protests due on or before 
September 14, 2011.\9\ A motion to intervene was timely filed by 
American Municipal Power, Inc. (AMP). Pursuant to Rule 214 of the 
Commission's Rules of Practice and Procedure,\10\ the timely, unopposed 
motion to intervene serves to make AMP a party to this proceeding.
---------------------------------------------------------------------------

    \9\ 76 FR 52,325 (2011).
    \10\ 18 CFR 385.214 (2011).
---------------------------------------------------------------------------

IV. Commission Determination

    11. The Commission finds that the ERO's interpretation of 
Requirement R10 of Reliability Standard TOP-002-2a is just, reasonable, 
not unduly discriminatory or preferential, and in the public 
interest.\11\
---------------------------------------------------------------------------

    \11\ 16 U.S.C. 824(d)(2).
---------------------------------------------------------------------------

    12. The interpretation supports the stated purpose of the 
Reliability Standard, i.e., current operational plans and procedures 
are essential for an entity to be prepared for reliable operations, 
including responses to unplanned events. The interpretation also 
clarifies the responsibilities of the balancing authority with regard 
to normal operations planning. Further, the language of the 
interpretation is consistent with the language of the requirement. 
Accordingly, the Commission approves the ERO's interpretation of 
Requirement R10 of Reliability Standard TOP-002-2a.
    13. We agree with NERC that the balancing authority is responsible 
for integrating resource plans ahead of time, maintaining load-
interchange-generation balance within a balancing authority area, and 
supporting interconnection frequency in real time under the definition 
of Balancing Authority found in the NERC Glossary.\12\ Additionally, 
the Commission notes that communication and coordination between the 
balancing authority and transmission operator can be essential in 
normal operations planning under TOP-002-2a, Requirement R10 to ``plan 
to meet all System Operating Limits (SOLs) and Interconnection 
Reliability Operating Limits (IROLs).'' \13\
---------------------------------------------------------------------------

    \12\ Petition at 6.
    \13\ See Reliability Standard TOP-002-2a, Requirement R10; see 
generally Electric Reliability Organization Interpretation of 
Transmission Operations Reliability Standard, Order No. 753, 136 
FERC ] 61,176, at P 15-17 (2011).
---------------------------------------------------------------------------

    14. Accordingly, the Commission approves Reliability Standard TOP-
002-2b, effective as of the date of this order.

V. Information Collection Statement

    15. The Office of Management and Budget (OMB) regulations require 
that OMB approve certain reporting and

[[Page 66057]]

recordkeeping requirements (collections of information) imposed by an 
agency.\14\ The information contained here is also subject to review 
under section 3507(d) of the Paperwork Reduction Act of 1995.\15\
---------------------------------------------------------------------------

    \14\ 5 CFR 1320.11 (2011).
    \15\ 44 U.S.C. 3507(d).
---------------------------------------------------------------------------

    16. The Commission approved Reliability Standard TOP-002-2, the 
subject of this order, in Order No. 693.\16\ This order proposes to 
approve the interpretation of the previously approved Reliability 
Standard, which was developed by NERC as the ERO. The interpretation 
relates to an existing Reliability Standard, and the Commission does 
not expect it to affect entities' current reporting burden.\17\ 
Accordingly, we will submit this Final Rule to OMB for informational 
purposes only.
---------------------------------------------------------------------------

    \16\ Order No. 693, FERC Stats. & Regs. ] 31,242, order on 
reh'g, Order No. 693-A, 120 FERC ] 61,053 (2007).
    \17\ 5 CFR 1320.3(b)(2).
---------------------------------------------------------------------------

    The Commission Orders:
    (A) NERC's interpretation is hereby approved, as discussed in the 
body of this order.

    By the Commission. Commissioner Spitzer is not participating.
Kimberly D. Bose,
Secretary.
[FR Doc. 2011-27566 Filed 10-24-11; 8:45 am]
BILLING CODE 6717-01-P

