
[Federal Register Volume 79, Number 189 (Tuesday, September 30, 2014)]
[Proposed Rules]
[Pages 58709-58716]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-23196]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

18 CFR Part 40

[Docket No. RM14-13-000]


Communications Reliability Standards

AGENCY:  Federal Energy Regulatory Commission.

ACTION:  Notice of proposed rulemaking.

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SUMMARY:  The Commission proposes to approve Communications Reliability 
Standard COM-001-2 and Operating Personnel Communications Protocols 
Reliability Standard COM-002-4, developed by the North American 
Electric Reliability Corporation (NERC), which the Commission has 
certified as the Electric Reliability Organization responsible for 
developing and enforcing mandatory Reliability Standards. The 
Commission believes that the proposed Reliability Standards will 
enhance reliability over the currently-effective COM standards in 
several respects by, among other things, requiring adoption of 
predefined communication protocols, annual assessment of those 
protocols and operating personnel's adherence thereto, training on the 
protocols, and use of three-part communications. However, the 
Commission proposes to direct NERC to modify proposed Reliability 
Standard COM-001-2 to include internal communications capabilities.

DATES:  Comments are due December 1, 2014.

ADDRESSES:  Comments, identified by docket number, may be filed in the 
following ways:
     Electronic Filing through http://www.ferc.gov. Documents 
created electronically using word processing software should be filed 
in native applications or print-to-PDF format and not in a scanned 
format.
     Mail/Hand Delivery: Those unable to file electronically 
may mail or hand-deliver comments to: Federal Energy Regulatory 
Commission, Secretary of the Commission, 888 First Street NE., 
Washington, DC 20426.
    Instructions: For detailed instructions on submitting comments and 
additional information on the rulemaking process, see the Comment 
Procedures Section of this document.

FOR FURTHER INFORMATION CONTACT:
Vincent Le (Technical Information), Office of Electric Reliability, 
Federal Energy Regulatory Commission, 888 First Street NE., Washington, 
DC 20426, (202) 502-6204, Vincent.le@ferc.gov.
Michael Gandolfo (Technical Information), Office of Electric 
Reliability, Federal Energy Regulatory Commission, 888 First Street 
NE., Washington, DC 20426, (202) 502-6817, Michael.gandolfo@ferc.gov.
Julie Greenisen (Legal Information), Office of the General Counsel, 
Federal Energy Regulatory Commission, 888 First Street NE., Washington, 
DC 20426, (202) 502-6362, julie.greenisen@ferc.gov.
Robert T. Stroh (Legal Information), Office of the General Counsel, 
Federal Energy Regulatory Commission, 888 First Street NE., Washington, 
DC 20426, Telephone: (202) 502-8473, Robert.Stroh@ferc.gov.

SUPPLEMENTARY INFORMATION:
    1. Pursuant to section 215 of the Federal Power Act (FPA),\1\ the 
Commission proposes to approve two Reliability Standards, COM-001-2 
(Communications) and COM-002-4 (Operating Personnel Communications 
Protocols), developed by the North American Electric Reliability 
Corporation (NERC), which the Commission has certified as the Electric 
Reliability Organization responsible for developing and enforcing 
mandatory Reliability Standards. In addition, the Commission proposes 
to approve three new terms to be added to the NERC Glossary of Terms, 
and the violation risk factors, violation severity levels, and proposed 
implementation plan for both revised standards.
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    \1\ 16 U.S.C. 824o (2012).
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    2. Proposed Reliability Standard COM-001-2 is intended to establish 
a clear set of requirements for the communications capabilities that 
applicable functional entities must have in place and maintain. 
Proposed Reliability Standard COM-002-4 requires applicable entities to 
develop communication protocols with certain minimum requirements, 
including use of three-part communication when issuing Operating 
Instructions.\2\ Proposed Reliability Standard COM-002-4 also sets out 
certain communications training requirements for all issuers and 
recipients of Operating Instructions, and establishes a flexible 
enforcement approach for failure to use three-part communication during 
non-emergencies and a ``zero-tolerance'' enforcement approach for 
failure to use three-part communications during an emergency.
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    \2\ NERC proposes to define Operating Instruction as ``[a] 
command by operating personnel responsible for the Real-time 
operation of the interconnected Bulk Electric System to change or 
preserve the state, status, output, or input of an Element of the 
Bulk Electric System or Facility of the Bulk Electric System. (A 
discussion of general information and of potential options or 
alternatives . . . is not considered an Operating Instruction.)''
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    3. The Commission believes that the proposed Reliability Standards 
will enhance reliability over the currently-effective COM standards in 
several respects. For example, the proposed Reliability Standards 
expand applicability to include generator operators and distribution 
providers and eliminate certain ambiguities in the currently-effective 
standard. Thus, the Commission proposes to approve the modified COM 
standards. However, the Commission seeks additional information and 
explanation on responsibility for use of three-part communication by 
transmission owners and generation owners that receive Operating 
Instructions. In addition, the Commission proposes to direct NERC to 
modify proposed Reliability Standard COM-001-2 to include internal 
communication capabilities, and seeks additional information on the 
lack of a testing requirement for distribution providers and generator 
operators in COM-001-2 and on the intended meaning and use of the 
proposed terms Interpersonal Communication and Alternative 
Interpersonal Communication.

I. Background

A. Regulatory Background

    4. Section 215 of the FPA requires a Commission-certified Electric 
Reliability Organization (ERO) to develop mandatory and enforceable 
Reliability Standards, subject to Commission review and approval.\3\ 
Once approved, the Reliability Standards may be enforced by the ERO 
subject to Commission oversight, or by the Commission independently.\4\ 
In 2006, the Commission certified NERC as the ERO pursuant to FPA 
section 215.\5\
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    \3\ 16 U.S.C. 824o(c) and (d).
    \4\ See id. 824o(e).
    \5\ 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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    5. The Commission approved Reliability Standard COM-001-1 in

[[Page 58710]]

Order No. 693.\6\ In addition, the Commission directed NERC to develop 
modifications to (1) expand the applicability of the standard to 
include generator operators and distribution providers, (2) identify 
specific requirements for telecommunications facilities for use in 
normal and emergency conditions that reflect the roles of the 
applicable entities, and (3) include adequate flexibility for 
compliance to allow for the adoption of new technologies and cost-
effective solutions.\7\
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    \6\ See Mandatory Reliability Standards for the Bulk-Power 
System, Order No. 693, FERC Stats. & Regs. ] 31,242, at P 508, order 
on reh'g, Order No. 693-A, 120 FERC ] 61,053 (2007); see also North 
American Electric Reliability Corp., Docket No. RD09-2-000 (2009) 
(delegated letter order accepting Reliability Standard COM-001-1.1).
    \7\ Order No. 693, FERC Stats. & Regs. ] 31,242 at P 508.
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    6. In Order No. 693, the Commission also approved Reliability 
Standard COM-002-2. In addition, the Commission directed NERC to 
develop modifications to (1) include distribution providers as 
applicable entities and (2) establish tightened communications 
protocols, especially for communications during alerts and 
emergencies.\8\
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    \8\ Id. PP 531-535, 540.
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    7. NERC initiated Project 2006-06 to address the Order No. 693 
directives related to Reliability Standards COM-001 and COM-002, 
resulting in two proposed Reliability Standards, COM-001-2 and COM-002-
3. NERC also initiated Project 2007-02 to develop a new Reliability 
Standard (COM-003) that would require real-time system operators to use 
standardized communication protocols during normal and emergency 
operations, in order to improve situational awareness and shorten 
response time. The two projects ultimately merged when drafts of 
Reliability Standard COM-002-3 and COM-003-1 were combined into a 
single proposed Reliability Standard, COM-002-4.

B. NERC Petition

    8. On May 14, 2014, NERC filed a petition seeking approval of two 
revised communication standards, COM-001-2 (Communications) and COM-
002-4 (Operating Personnel Communications Protocols).\9\ Proposed 
Reliability Standard COM-001-2 establishes a set of requirements for 
the communications capabilities various functional entities must 
maintain to enable communications with identified functional entities. 
Proposed Reliability Standard COM-002-4 requires applicable entities to 
develop documented communications protocols. NERC states that the 
proposed standards are intended to address all relevant Commission 
directives from Order No. 693.\10\ In addition, NERC states that the 
revisions reflected in proposed COM-002-4 are intended to address 
Recommendation No. 26 from the final report on the August 2003 blackout 
issued by the U.S.-Canada Power System Outage Task Force (Blackout 
Report) concerning the need to ``[t]ighten communications protocols, 
especially for communications during alerts and emergencies.'' \11\
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    \9\ The proposed COM Reliability Standards are not attached to 
the NOPR. The complete text of the proposed Reliability Standards is 
available on the Commission's eLibrary document retrieval system in 
Docket No. RM14-13 and is posted on the ERO's Web site, available at 
http://www.nerc.com.
    \10\ NERC Petition at 3.
    \11\ Id. (quoting U.S.-Canada Power System Outage Task Force, 
Final Report on the August 14, 2003 Blackout in the United States 
and Canada: Causes and Recommendations at 3 (April 2004), available 
at http://energy.gov/sites/prod/files/oeprod/DocumentsandMedia/BlackoutFinal-Web.pdf).
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Proposed Reliability Standard COM-001-2
    9. NERC states in its petition that proposed Reliability Standard 
COM-001-2 is intended to establish requirements for Interpersonal 
Communication capabilities necessary to maintain reliability.\12\ NERC 
explains that proposed Reliability Standard COM-001-2 applies to 
reliability coordinators, balancing authorities, transmission 
operators, generator operators, and distribution providers. The 
proposed Reliability Standard includes eleven requirements and two new 
defined terms, ``Interpersonal Communication'' and ``Alternative 
Interpersonal Communication,'' that, according to NERC, collectively 
provide a comprehensive approach to establishing communications 
capabilities necessary to maintain reliability.\13\ NERC states that 
the definitions provide clarity that an entity's communication 
capability must be redundant and that each of the capabilities must not 
utilize the same medium.\14\ According to NERC, the definitions improve 
the language used in the current Reliability Standard by eliminating 
the use of the more ambiguous phrases ``adequate and reliable'' and 
``redundant and diversely routed'' that relate to ``telecommunications 
facilities for the exchange of Interconnection and operating 
information.'' \15\
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    \12\ Id. at 15.
    \13\ Id. NERC defines Interpersonal Communication as ``[a]ny 
medium that allows two or more individuals to interact, consult, or 
exchange information'' and Alternative Interpersonal Communication 
as ``[a]ny Interpersonal Communication that is able to serve as a 
substitute for, and does not utilize the same infrastructure 
(medium) as, Interpersonal Communication used for day-to-day 
operation.'' Id.
    \14\ Id.
    \15\ Id. at 15-16.
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    10. The first six requirements address the Interpersonal 
Communication capability and Alternative Interpersonal Communication 
capability of the reliability coordinator, transmission operator, and 
balancing authority. Requirement R1 requires each reliability 
coordinator to have Interpersonal Communication capability with all 
transmission operators and balancing authorities within its reliability 
coordinator area, and with each adjacent reliability coordinator within 
the same interconnection. Requirement R2 requires each reliability 
coordinator to designate Alternative Interpersonal Communication 
capability with those same identified entities. Requirements R3 and R4 
set out the communications capability requirements for a transmission 
operator. Under Requirement R3, Interpersonal Communication capability 
is required between the transmission operator's reliability 
coordinator, each balancing authority within its transmission operator 
area, each distribution provider and generator operator within its 
transmission operator area, and each adjacent transmission operator 
whether synchronously or asynchronously connected. Under Requirement 
R4, Alternative Interpersonal Communication capability must be 
designated between the transmission operator's reliability coordinator, 
each balancing authority within its transmission operator area, and 
each adjacent transmission operator. Requirements R5 and R6 set out 
similar requirements for each balancing authority, again identifying 
the specific functional entities for which the balancing authority must 
maintain Interpersonal Communication capability and for which it must 
designate Alternative Interpersonal Communication capability.
    11. Requirements R7 and R8 address the communications capability 
that distribution providers and generator operators must maintain, with 
each required to have Interpersonal Communications capability with its 
balancing authority and its transmission operator.
    12. Requirement R9 requires each reliability coordinator, 
transmission operator, and balancing authority to test its Alternative 
Interpersonal Communication capability at least once each calendar 
month, and to initiate action to repair or designate a

[[Page 58711]]

replacement if the test is unsuccessful. Requirement R10 requires the 
same entities to notify applicable entities (as identified in R1, R3 
and R5) of the detection of an Interpersonal Communication capability 
failure that lasts 30 minutes or longer. Finally, Requirement R11 
requires distribution providers and generator operators to consult with 
affected balancing authorities and transmission operators when a 
failure is detected in their Interpersonal Communication capability, 
and to determine a mutually agreeable action for the restoration of 
that capability.
    13. NERC states in its petition that proposed Reliability Standard 
COM-001-2 improves the currently-effective Reliability Standard by: (1) 
Eliminating terms that do not adequately specify the desired actions 
that applicable entities are expected to take in relation to their 
telecommunication facilities; (2) clearly identifying the need for 
applicable entities to be capable of Interpersonal Communication and 
Alternative Interpersonal Communication; (3) not requiring specific 
technology or systems to be utilized; and (4) including the 
distribution provider and generator operator as applicable 
entities.\16\ NERC adds that the proposed Reliability Standard also 
addresses the Commission's directives from Order No. 693 related to 
COM-001 by (1) adding generator operators and distribution providers as 
applicable entities; (2) identifying specific requirements for 
telecommunications capabilities for use in all operating conditions 
that reflect the roles of the applicable entities and their impact on 
reliability; and (3) including adequate flexibility to permit the 
adoption of new technologies.\17\
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    \16\ NERC Petition at 18.
    \17\ NERC Petition at 4; see also supra n.6 and accompanying 
text.
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    14. NERC proposes to retire the currently effective COM-001 
Reliability Standard when proposed Reliability Standard COM-001-2 
becomes effective, with the exception of Requirement R4, which 
addresses communications protocols. NERC requests that Requirement R4 
be retired when proposed Reliability Standard COM-002-4 becomes 
effective.\18\
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    \18\ Id. at 22. NERC notes that the substance of Requirement R5 
in the currently effective standard, COM-001-1.1, is addressed by 
Requirement R1 of EOP-008-1. Accordingly, NERC explains that the 
requirement has not been carried forward in proposed COM-001-2. In 
addition, NERC notes that Requirement R6 in the currently effective 
standard, which requires adherence to certain policies when using 
NERCnet, is not being carried forward, as NERC is in the process of 
transitioning NERCnet to industry, and in order to preserve NERC's 
ability to respond to new technologies without requiring 
modification of a Reliability Standard. Id. at 22-23.
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Proposed Reliability Standard COM-002-4
    15. NERC states that proposed Reliability Standard COM-002-4 
improves communications surrounding the issuance of Operating 
Instructions by requiring use of predefined communications protocols to 
reduce the possibility of miscommunication that could lead to action or 
inaction harmful to reliability.\19\ NERC notes that the proposed 
standard requires use of the same protocols regardless of operating 
condition (i.e., Emergency or non-emergency), but requires operating 
personnel to use the documented communication protocols for three-part 
communications ``without exception'' during an Emergency.\20\ As NERC 
explains:
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    \19\ Id. at 23. NERC states that COM-002-3 (which was adopted by 
the NERC Board but not submitted to the Commission for approval) is 
proposed for retirement in the Implementation Plan because the 
proposed Reliability Standard has been combined with proposed COM-
003-1 to create proposed Reliability Standard COM-002-4. NERC states 
that Reliability Standard COM-002-3 has not been submitted to the 
Commission for approval, therefore, the currently effective version 
of COM-002 is COM-002-2. Id. at 23 n.43. The proposed Reliability 
Standard combines proposed Reliability Standard COM-002-3 and the 
former draft COM-003-1 into a single standard that addresses 
communications protocols for operating personnel in Emergency and 
non-emergency conditions. Id. at 23-24.
    \20\ Id. at 3.

    [T]he proposed Reliability Standard employs the phrase 
``Operating Instruction during an Emergency'' in certain 
requirements (R5, R6, R7) to provide a demarcation for what is 
subject to a zero-tolerance compliance approach and what is not.\21\
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    \21\ Id. at 25.

    NERC explains that, for Operating Instructions issued during non-
emergency operations, ``an entity will be assessed under a compliance 
approach that focuses on whether an entity meets the initial training 
Requirement (either R2 or R3) and whether an entity performed the 
assessment and took corrective actions according to Requirement R4.'' 
\22\
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    \22\ Id. at 26.
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    16. Finally, NERC states that the proposed Reliability Standard 
includes distribution providers and generator operators as applicable 
entities, in accordance with the Commission's directive in Order No. 
693, and in recognition of the fact that these types of entities can be 
recipients of Operating Instructions.\23\
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    \23\ Id. at 27-28.
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    17. Proposed Reliability Standard COM-002-4 includes seven 
requirements. Requirement R1 requires entities that can both issue and 
receive Operating Instructions (balancing authorities, reliability 
coordinators and transmission operators) to have documented 
communications protocols that include a minimum set of elements, 
including use of the English language unless otherwise specified, and 
required use of three-part communications for issuance and receipt of 
Operating Instructions.\24\ Requirement R2 requires these same entities 
to conduct initial training on the communications protocols for each of 
their operating personnel responsible for the real-time operation of 
the bulk electric system. Requirement R3 requires distribution 
providers and generator operators (who generally only receive but do 
not issue Operating Instructions) to conduct initial training on three-
part communication for each of their operating personnel who can 
receive an oral two-party, person-to-person Operating Instruction, 
prior to that individual operator receiving an oral two-party, person-
to-person Operating Instruction.
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    \24\ See id. at 29.
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    18. Requirement R4 requires each balancing authority, reliability 
coordinator and transmission operator to assess, at least once every 
twelve months, its operating personnel's adherence to the documented 
communication protocols required in Requirement R1, and to provide 
feedback to its operating personnel on their performance.
    19. Requirement R5 requires balancing authorities, reliability 
coordinators and transmission operators that issue an oral two-party, 
person-to-person ``Operating Instruction during an Emergency'' to use 
three-part communication, and to take an alternative action if a 
confirmation is not received. Requirement R6 requires all applicable 
entities (balancing authorities, distribution providers, generator 
operators, and transmission operators) that receive an oral two-party, 
person-to-person ``Operating Instruction during an Emergency'' to use 
three-part communication, i.e., to repeat the Operating Instruction and 
receive confirmation from the issuer that the response was correct, or 
request that the issuer reissue the Operating Instruction. Both 
Requirement R5 and R6 include the clarification that the requirement 
does not apply to single-party to multiple-party ``burst'' Operating 
Instructions. As noted above, NERC explains that Requirements R5 and R6 
require use of three-part communication during an Emergency without 
exception, because ``use of three-part communication is critically 
important if

[[Page 58712]]

an Emergency condition already exists, as further action or inaction 
could increase the harmful effects to the Bulk Electric System.'' \25\ 
NERC further explains, however, that applicable entities are expected 
to use three-part communications at all times when issuing and 
receiving Operating Instructions.\26\
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    \25\ Id. at 39.
    \26\ Id. at 25-26.
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    20. Finally, Requirement R7 requires that when a balancing 
authority, reliability coordinator, or transmission operator issues a 
written or oral single-party to multiple-party ``burst'' Operating 
Instruction during an Emergency, they must confirm or verify that at 
least one receiver received the Operating Instruction.
    21. NERC requests that proposed Reliability Standard COM-002-4 
become effective on the first day of the first calendar quarter that is 
twelve months after the date that the standard is approved.

II. Discussion

    22. Pursuant to section 215(d)(2) of the FPA, the Commission 
proposes to approve proposed Reliability Standards COM-001-2 and COM-
002-4, the three new definitions referenced in the proposed standards 
(Operating Instruction, Interpersonal Communication, and Alternative 
Interpersonal Communication), and the assigned violation risk factors 
and violation severity levels and proposed implementation plan for each 
standard. We believe that proposed COM-001-2 will enhance reliability 
by expanding the applicability of currently effective COM-001-1.1 to 
include generator operators and distribution providers. Further, this 
modification to the applicability provision satisfies the Commission's 
directive in Order No. 693.
    23. Likewise, we believe that proposed Reliability Standard COM-
002-4 enhances reliability by expanding the applicability of the 
standard to include distribution providers that receive Operating 
Instructions, in accordance with the directive in Order No. 693. 
Moreover, proposed COM-002-4 requires the development of communication 
protocols for operating personnel that issue or receive Operating 
Instructions that require the use of three-part communication, and 
adopts a zero-tolerance approach in enforcing the use of three-part 
communications during an Emergency. While the zero-tolerance approach 
applies only during an Emergency, Requirement R4 imposes an important 
requirement for an entity to assess, at least once every twelve months, 
its operating personnel's adherence to the documented communication 
protocols required in Requirement R1, and to provide feedback to its 
operating personnel on their performance. This requirement should help 
ensure a high level of compliance with three-part communication at all 
times, not just during an Emergency. Without this mechanism, poor 
performance at routine times could eventually lead to poor performance 
at critical times. The Commission believes that the establishment of 
clear communication protocols based on three-part communication 
provides a fundamental element of maintaining Bulk-Power System 
reliability. Thus, the revisions reflected in proposed Reliability 
Standard COM-002-4 appear to address Recommendation No. 26 from the 
final report on the August 2003 blackout issued by the U.S.-Canada 
Power System Outage Task Force (Blackout Report) concerning the need to 
``[t]ighten communications protocols, especially for communications 
during alerts and emergencies.'' \27\ Finally, COM-002-4 eliminates the 
ambiguity surrounding the meaning of ``directive'' in the currently-
effective version of COM-002-2.
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    \27\ U.S.-Canada Power System Outage Task Force, Final Report on 
the August 14, 2003 Blackout in the United States and Canada: Causes 
and Recommendations at 3 (April 2004) (Blackout Report), available 
at http://www.ferc.gov/industries/electric/indus-act/blackout.asp.
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    24. While we propose to approve COM-001-2 and COM-002-4 for the 
reasons stated above, we also have questions regarding specific 
provisions of the proposed Reliability Standards, and we seek further 
explanation or comment from NERC and others. Accordingly, we discuss 
below the following issues: (1) Responsibility for use of three-part 
communication by transmission owners and generation owners that receive 
Operating Instructions; (2) whether proposed COM-001-2 should be 
modified to address internal communication capability requirements, or 
to address testing requirements for distribution providers and 
generator operators; and (3) clarifications regarding the proposed 
terms Interpersonal Communication and Alternative Interpersonal 
Communication.

A. Applicability of Communications Standard Requirements to 
Transmission Owners and Generator Owners

    25. Consistent with the Commission directives in Order No. 693, 
proposed Reliability Standard COM-001-2 will apply to generator 
operators and distribution providers (in addition to transmission 
operators, balancing authorities, and reliability coordinators). 
Likewise, proposed Reliability Standard COM-002-4 will apply to 
distribution providers (in addition to balancing authorities, 
reliability coordinators, transmission operators, and generator 
operators).
    26. Proposed Reliability Standards COM-001-2 and COM-002-4 do not 
identify transmission owners or generator owners as applicable 
entities. Are there instances, however, in which transmission owners or 
generation owners may receive and act on ``Operating Instructions,'' 
such as in areas operated by Regional Transmission Organizations or 
Independent System Operators?
    27. We seek an explanation from NERC and other commenters regarding 
the obligations of an applicable entity identified in COM-001-2 and 
COM-002-4 when communicating with a transmission owner or generator 
owner. For example, if a transmission operator, presumably required to 
use three-part communication under the proposed standards, communicates 
an Operating Instruction to a transmission owner or generation owner, 
which entity (if any) is responsible if the transmission owner or 
generation owner fails to perform three-part communication properly? 
\28\ Among other things, NERC should explain its auditing practices in 
reviewing operating agreements between transmission operators and 
transmission owners and generation owners (or other agreements for 
assigning operational and compliance responsibility), and its approach 
in reviewing the protocols of any transmission owner or generator owner 
that acts on Operating Instructions to ascertain that they use three-
part communication when and as required under proposed COM-002-4.
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    \28\ We understand that NERC has issued a Compliance Bulletin 
that discusses, in a general manner, the compliance obligations of 
registered entities and various contractual mechanisms for sharing 
or assigning compliance responsibility. See NERC Compliance Bulletin 
2010-004 (Guidance for Entities that Delegate Reliability 
Tasks to a Third Party Entity). Here, however, we seek a better 
understanding of such obligations in the specific context of the 
proposed COM standards.
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B. Scope of COM-001-2--Internal Communications Capability and Testing 
Requirements for Distribution Providers and Generator Operators

    28. Requirement R1.1 of currently-effective Reliability Standard 
COM-001-1.1 states that each reliability coordinator, transmission 
operator, and balancing authority ``shall provide

[[Page 58713]]

adequate and reliable telecommunication facilities for the exchange of 
Interconnection and operating information . . . internally.'' Thus, 
COM-001-1.1 explicitly requires applicable entities to have adequate 
infrastructure for internal communications. We believe such a 
requirement is appropriate, since internal communications can have an 
impact on reliability, including certain communications between a 
control center and a generating unit operator and other field personnel 
or between two control centers (where operated by a single entity).
    29. Proposed Reliability Standard COM-001-2 does not carry forward 
the explicit requirement with respect to internal communications. 
Instead, it requires applicable entities to have ``Interpersonal 
Communication'' \29\ capability with other identified functional 
entities, as specified in the individual requirements. For example, 
Requirement R1 provides:
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    \29\ As noted above, NERC proposes to define Interpersonal 
Communication as ``[a]ny medium that allows two or more individuals 
to interact, consult, or exchange information.'' NERC Petition at 
15.

    Each Reliability Coordinator shall have Interpersonal 
Communication capability with the following entities * * *.
    1.1. All Transmission Operators and Balancing Authorities within 
its Reliability Coordinator Area.
    1.2. Each adjacent Reliability Coordinator within the same 
Interconnection.

    NERC's petition does not address the elimination of the explicit 
requirement related to internal communications capability.
    30. The Commission believes that maintaining adequate internal 
communications capability can be critical to reliability. For example, 
the 2003 Blackout Report recommended improvements in internal 
communication effectiveness along with improvements to external 
communications.\30\ Moreover, the Blackout Report listed as one of the 
causes of the blackout that First Energy's ``control center computer 
support staff and operations staff did not have effective internal 
communications procedures'' and ``lacked procedures to ensure that its 
operators were continually aware of the functional state of their 
critical monitoring tools.'' \31\ The Blackout Report found that these 
factors contributed to First Energy's ``inadequate situational 
awareness'' and its failure ``to recognize or understand the 
deteriorating condition of its system'' during that event.\32\ However, 
the proposed Reliability Standard does not retain an explicit 
requirement with respect to internal communications capability. We 
accordingly propose to direct NERC to develop modifications to COM-001 
(or to develop a separate standard) that ensures that entities maintain 
adequate internal communications capability, at least to the extent 
that such communications could involve the issuance or receipt of 
Operating Instructions or other communications that could have an 
impact on reliability. Alternatively, a requirement for internal 
communications capability may be implicit in the proposed requirements 
for communications capability between functional entities such as 
Reliability Coordinators and Transmission Operators, since the proposed 
requirements are not explicitly limited to functional entities that are 
different utilities and could be understood as including communications 
capability within a utility performing and registered for multiple 
functions. We seek comment on whether the proposed requirements can and 
should be understood this way.
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    \30\ Blackout Report at 161 (``NERC should work with reliability 
coordinators and [balancing authorities] to improve the 
effectiveness of internal and external communications . . . .'').
    \31\ Id. at 18.
    \32\ Id. at 18; see also id. at 51-53, 56 and 65-67.
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    31. In addition, the Requirement 9 monthly testing requirement in 
COM-001-2 applies to reliability coordinators, balancing authorities, 
and transmission operators, but not generator operators and 
distribution providers. We seek comment on why generator operators and 
distribution providers should not have some form of requirement to test 
or actively monitor vital primary and emergency telecommunication 
facilities, particularly given the assumptions the Commission made in 
Order No. 749 when approving Reliability Standard EOP-005-2 (System 
Restoration from Blackstart Resources).\33\ In that order, the 
Commission relied on NERC's assurances not only that COM-001-2 would be 
revised to include distribution providers and generator operators, but 
that such revisions would address the Commission's concerns about the 
lack of certain testing requirements in EOP-005-2:
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    \33\ See System Restoration Reliability Standards, Order No. 
749, 134 FERC ] 61,215 at PP 26-28 (2011).

    The Commission believes the objectives of [the project to revise 
COM-001-1.1] in managing, alarming, testing and/or actively 
monitoring vital primary and emergency telecommunication facilities 
will close this gap in the Reliability Standard after it is 
completed and approved.\34\
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    \34\ Id. P 28.

    Is the same objective intended to be addressed by Requirement 11? 
(``Each Distribution Provider and Generator Operator that detects a 
failure of its Interpersonal Communication capability shall consult 
each entity affected by the failure, as identified in Requirement R7 
for a Distribution Provider or Requirement R8 for a Generator Operator, 
to determine a mutually agreeable action for the restoration of its 
Interpersonal Communication capability.'') If so, we ask NERC to 
provide support for this approach.

C. Reliability Standard COM-001-2--Definition of Interpersonal 
Communications and Alternative Interpersonal Communication

    32. Finally, we seek clarification regarding the scope and meaning 
of the proposed definitions of Interpersonal Communication and 
Alternative Interpersonal Communication. As noted above, NERC proposes 
to define those terms, respectively, as follows:

    Interpersonal Communication--Any medium that allows two or more 
individuals to interact, consult, or exchange information.
    Alternative Interpersonal Communication--Any Interpersonal 
Communication that is able to serve as a substitute for, and does 
not utilize the same infrastructure (medium) as, Interpersonal 
Communication used for day-to-day operation.

    NERC indicates that it developed these definitions to eliminate the 
ambiguity of the terms ``adequate and reliable'' in requirement R1 of 
COM-001-1.1, and the terms ``redundant and diversely routed'' in 
Requirement R1.4.\35\
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    \35\ NERC Petition at 15-16.
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    33. While the Commission understands the need to allow flexibility 
as to the type of communication medium or infrastructure to be used, 
the definitions do not state explicitly a minimum expectation of 
communication performance such as speed and quality to ensure that the 
communication is sufficient to maintain the reliable operation of the 
bulk power system. Further, while currently-effective Reliability 
Standard COM-001-1.1, Requirement R1, addresses ``telecommunications 
facilities for the exchange of Interconnection and operating 
information,'' a term that appears to include facilities that directly 
exchange or transfer data, the proposed definition of Interpersonal 
Communication refers to exchanges between individual persons. It is

[[Page 58714]]

unclear whether the definition of Interpersonal Communications includes 
mediums used directly to exchange or transfer data. Thus, we seek 
further explanation from NERC and other interested commenters regarding 
acceptable (and unacceptable) performance of communication for both 
Interpersonal and Alternative Interpersonal Communications.

III. Information Collection Statement

    34. The collection of information contained in this Notice of 
Proposed Rulemaking is subject to review by the Office of Management 
and Budget (OMB) under section 3507(d) of the Paperwork Reduction Act 
of 1995.\36\ OMB's regulations require approval of certain information 
collection requirements imposed by agency rules.\37\ 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 a 
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.
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    \36\ 44 U.S.C. 3507(d) (2012).
    \37\ 5 CFR 1320.11 (2013).
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    35. We solicit comments on the need for this information, whether 
the information will have practical utility, the accuracy of the burden 
estimates, ways to enhance the quality, utility, and clarity of the 
information to be collected or retained, and any suggested methods for 
minimizing respondents' burden, including the use of automated 
information techniques. Specifically, the Commission asks that any 
revised burden or cost estimates submitted by commenters be supported 
by sufficient detail to understand how the estimates are generated.
    36. This notice proposes to approve Reliability Standards COM-001-2 
and COM-002-4, and to retire Reliability Standards COM-001-1.1 and COM-
002-2. Proposed Reliability Standard COM-001-2 will establish 
Interpersonal Communication capability necessary to maintain 
reliability, while proposed Reliability Standard COM-002-4 will improve 
communications related to Operating Instructions, requiring issuers of 
Operating Instructions to adopt predefined communications protocols and 
requiring both issuers and recipients of Operating Instructions to use 
three-part communications.
    Public Reporting Burden: Proposed Reliability Standards COM-001-2 
and COM-002-4 do not require responsible entities to file information 
with the Commission. However, the proposed Reliability Standards 
require applicable entities to develop and maintain certain 
information, subject to audit. In particular, COM-001-2 requires that 
transmission operators, balancing authorities, reliability 
coordinators, distribution providers, and generator operators must 
maintain documentation of Interpersonal Communication capability and 
designation of Alternate Interpersonal Communication, as well as 
evidence of testing of the Alternate Interpersonal Communication 
facilities. COM-002-4 requires balancing authorities, distribution 
providers, reliability coordinators, transmission operators, and 
generator operators to develop and maintain documented communication 
protocols, and to be able to provide evidence of training on the 
protocols and of their annual assessment of the protocols. 
Additionally, all applicable entities (balancing authorities, 
reliability coordinators, transmission operators, generator operators, 
and distribution providers) must be able to provide evidence of three-
part communication when issuing or receiving an Operating Instruction 
during an Emergency.
    Many of the record retention or information collection requirements 
in proposed COM-001-2 and COM-002-4 are translated in some form from 
the currently-effective Reliability Standards (COM-001-1 and COM-002-
2). For these requirements, the Commission estimates a zero net change 
in burden. Accordingly, our estimate below shows the increase in 
record-retention or information collection burden, based on the new 
requirements to:

    (1) Develop communications protocols (a one-time burden under 
COM-002-4, R1);
    (2) maintain evidence of required training, assessments, and use 
of three-part communications, as applicable (an on-going burden 
under COM-002-4 R2, R3, R4, R5 and R6); and
    (3) maintain evidence to demonstrate Interpersonal Communication 
capability (a new, on-going burden for distribution providers and 
generator operators under COM-001-2 R7 and R8).

    The Commission's estimate of the number of respondents is based on 
the NERC compliance registry as of August 15, 2014. According to the 
NERC compliance registry, NERC has registered 179 transmission 
operators, 107 balancing authorities, 15 reliability coordinators, 475 
distribution providers, and 853 generator operators within the United 
States. However, under NERC's compliance registration program, entities 
may be registered for multiple functions, so these numbers incorporate 
some double counting, which has been accounted for in the table below. 
The Commission estimates the annual reporting burden and cost as 
follows:

----------------------------------------------------------------------------------------------------------------
                                                                                                   Total annual
    Information collection     Number and type   Annual number   Total number    Average burden   burden hours &
         requirement            of respondents   of responses    of responses      & cost per      total annual
                                                per respondent                   response \38\         cost
                               (1)............             (2)   (1)*(2) = (3)  (4)............  (3)*(4) = (5)
----------------------------------------------------------------------------------------------------------------
(One-time) Development of      212 (BA, RC &                 1             212  8 hrs. &         1,696 hours &
 Communication Protocols [COM-  TOP).                                            $485.60.         $102,947.20.
 002-4 R1].
(On-going) Maintain evidence   1,217 (DP &                   1           1,217  4 hrs. &         4,868 hours &
 of Interpersonal               GOP).                                            $115.72.         $140,831.24.
 Communication capability
 [COM-001-2 R7 and R8] \39\.
(On-going) Maintain evidence   212 (BA, RC &                 1             212  8 hrs. &         1,696 hours &
 of training and assessments    TOP).                                            $231.44.         $102,947.20.
 [COM-002-4 R2, R4, R5 and
 R6].
(On-going) Maintain evidence   1,217 (DP &                   1           1,217  8 hrs. &         9,736 hours &
 of assessments [COM-002-4      GOP).                                            $231.44.         $281,662.48.
 R3, and R6].
                                               -----------------------------------------------------------------

[[Page 58715]]

 
    Total....................  ...............  ..............           2,858  ...............  17,996 hours &
                                                                                                  $574,506.20.
----------------------------------------------------------------------------------------------------------------

    Title: Mandatory Reliability Standards for the Bulk-Power System: 
COM Reliability Standards.
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    \38\ The estimated hourly costs (salary plus benefits) are based 
on Bureau of Labor Statistics (BLS) information (available at http:/
/bls.gov/oes/current/naics3221000.htm#17-0000) for an 
electrical engineer ($60.70/hour for review and documentation), and 
for a file clerk ($28.93/hour for record retention). The first row 
of the table (one-time burden) is done by an engineer, and the 
latter three rows (ongoing burden) are done by a file clerk.
    \39\ No change is expected in the record-keeping burden under 
COM-001-2 for reliability coordinators, balancing authorities, and 
transmission operators as compared to the currently-effective COM-
001 standard.
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    Action: Proposed FERC-725V.
    OMB Control No: To be determined.
    Respondents: Businesses or other for-profit institutions; not-for-
profit institutions.
    Frequency of Responses: One-time and ongoing.
    Necessity of the Information: Reliability Standard COM-001-2 and 
COM-002-4, if adopted, would implement the Congressional mandate of the 
Energy Policy Act of 2005 to develop mandatory and enforceable 
Reliability Standards to better ensure the reliability of the nation's 
Bulk-Power System. Specifically, the purpose of the proposed 
Reliability Standards is to establish Interpersonal Communication 
capability necessary to maintain reliability, and to improve 
communications for the issuance of Operating Instructions with 
predefined communications protocols. The proposed Reliability Standards 
require entities to maintain records subject to review by the 
Commission and NERC to ensure compliance with the Reliability 
Standards.
    Internal Review: The Commission has reviewed the requirements 
pertaining to the proposed Reliability Standards for the Bulk-Power 
System 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.
    37. Interested persons may obtain information on the reporting 
requirements by contacting the following: Federal Energy Regulatory 
Commission, 888 First Street NE., Washington, DC 20426 [Attention: 
Ellen Brown, Office of the Executive Director, email: 
DataClearance@ferc.gov, phone: (202) 502-8663, fax: (202) 273-0873].
    38. Comments concerning the information collections proposed in 
this NOPR and the associated burden estimates should be sent to the 
Commission in these dockets and may also be sent to the Office of 
Management and Budget, Office of Information and Regulatory Affairs 
[Attention: Desk Officer for the Federal Energy Regulatory Commission]. 
For security reasons, comments should be sent by email to OMB at the 
following email address: oirasubmission@omb.eop.gov. Please 
reference FERC-725V and the docket numbers of this Notice of Proposed 
Rulemaking (Docket No. RM14-13-000) in your submission.

IV. Regulatory Flexibility Act Certification

    39. The Regulatory Flexibility Act of 1980 (RFA) \40\ generally 
requires a description and analysis of proposed rules that will have 
significant economic impact on a substantial number of small entities. 
Proposed Reliability Standard COM-001-2 is expected to impose burdens 
for the first time on 1,217 entities (i.e., distribution providers and 
generator operators). Proposed Reliability Standard COM-002-4 may apply 
to as many as 1,279 entities.\41\ Comparison of the applicable entities 
with FERC's small business data indicates that approximately 934 of the 
1,279 entities are small entities.\42\
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    \40\ 5 U.S.C. 601-612.
    \41\ The applicable entities are balancing authorities, 
reliability coordinators, transmission operators, generator 
operators, and distribution providers. After accounting for entities 
registered for more than one function, the total count is 1,279 
entities.
    \42\ The Small Business Administration sets the threshold for 
what constitutes a small business. Public utilities may fall under 
one of several different categories, each with a size threshold 
based on the company's number of employees, including affiliates, 
the parent company, and subsidiaries. The possible categories for 
the applicable entities have a size threshold ranging from 250 
employees to 1,000 employees. We are using the 1000 employee 
threshold for this analysis.
---------------------------------------------------------------------------

    40. Proposed Reliability Standard COM-002-4 will serve to enhance 
reliability by, among other things, requiring adoption of predefined 
communication protocols, annual assessment of those protocols and 
operating personnel's adherence thereto, training on the protocols, and 
use of three-part communications. The Commission estimates that each 
small balancing authority, reliability coordinator, and transmission 
operator subject to proposed Reliability Standard COM-002-4 will incur 
one-time compliance costs of about $486 (i.e. development of 
communication protocols), plus on-going annual costs of about $717 
(i.e. performing training and maintaining evidence of training and 
assessments).\43\ The Commission estimates that each of the small 
distribution provider and generator operator entities potentially 
subject to proposed Reliability Standards COM-001-2 and COM-002-4 will 
incur on-going annual costs of about $833 (i.e. performing training and 
maintaining evidence of interpersonal communication capability and of 
training).\44\ The Commission does not consider the estimated costs per 
small entity to have a significant economic impact on a substantial 
number of small entities. Accordingly, the Commission certifies that 
this NOPR will not have a significant economic impact on a substantial 
number of small entities.
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    \43\ The one-time paperwork-related implementation cost estimate 
is based on a burden of eight hours at $60.70/hour, and the annual 
ongoing cost estimate is based on a burden of eight hours at $28.93/
hour for maintaining evidence, and eight hours at $60.70/hour for 
performing training.
    \44\ The ongoing cost is based on burden of 12 hours at $28.93/
hour for maintaining evidence, and eight hours at $60.70/hour for 
performing training.
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V. Environmental Analysis

    41. 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

[[Page 58716]]

environment.\45\ 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.\46\ The actions 
proposed herein fall within this categorical exclusion in the 
Commission's regulations.
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    \45\ Regulations Implementing the National Environmental Policy 
Act of 1969, Order No. 486, FERC Stats. & Regs. ] 30,783 (1987).
    \46\ 18 CFR 380.4(a)(2)(ii).
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VI. Comment Procedures

    42. The Commission invites interested persons to submit comments on 
the matters and issues proposed in this notice to be adopted, including 
any related matters or alternative proposals that commenters may wish 
to discuss. Comments are due December 1, 2014. Comments must refer to 
Docket No. RM14-13-000, and must include the commenter's name, the 
organization they represent, if applicable, and address.
    43. The Commission encourages comments to be filed electronically 
via the eFiling link on the Commission's Web site at http://www.ferc.gov. The Commission accepts most standard word processing 
formats. Documents created electronically using word processing 
software should be filed in native applications or print-to-PDF format 
and not in a scanned format. Commenters filing electronically do not 
need to make a paper filing.
    44. Commenters that are not able to file comments electronically 
must send an original of their comments to: Federal Energy Regulatory 
Commission, Secretary of the Commission, 888 First Street NE., 
Washington, DC 20426.
    45. All comments will be placed in the Commission's public files 
and may be viewed, printed, or downloaded remotely as described in the 
Document Availability section below. Commenters on this proposal are 
not required to serve copies of their comments on other commenters.

VII. Document Availability

    46. 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 the Commission's Home Page (http://www.ferc.gov) and 
in the Commission's Public Reference Room during normal business hours 
(8:30 a.m. to 5:00 p.m. Eastern time) at 888 First Street NE., Room 2A, 
Washington, DC 20426.
    47. From the Commission'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.
    48. User assistance is available for eLibrary and the Commission's 
Web site during normal business hours from the Commission's 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. Email the Public Reference Room at 
public.referenceroom@ferc.gov.

    By direction of the Commission.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2014-23196 Filed 9-29-14; 8:45 am]
BILLING CODE 6717-01-P


