
[Federal Register Volume 79, Number 228 (Wednesday, November 26, 2014)]
[Proposed Rules]
[Pages 70483-70488]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-27949]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

18 CFR Part 40

[Docket No. RM14-10-000]


Real Power Balancing Control Performance Reliability Standard

AGENCY:  Federal Energy Regulatory Commission, DOE.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Federal Energy Regulatory Commission proposes to approve 
Reliability Standard BAL-001-2 (Real Power Balancing Control 
Performance) and proposed new definitions submitted by the North 
American Electric Reliability Corporation (NERC). The proposed 
Reliability Standard is designed to ensure that applicable entities 
maintain system frequency within narrow bounds around a scheduled 
value. In addition, the Commission proposes that NERC submit an 
informational filing that would address the impact of the proposed 
Reliability Standard on inadvertent interchange and unscheduled power 
flows.

DATES:  Comments are due January 26, 2015.

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: 
Enakpodia Agbedia (Technical Information), Office of Electric 
Reliability, Division of Reliability Standards, Federal Energy 
Regulatory Commission, 888 First Street NE., Washington, DC 20426, 
Telephone: (202) 502-6750, Enakpodia.Agbedia@ferc.gov.
Mark Bennett (Legal Information), Office of the General Counsel, 
Federal Energy Regulatory Commission, 888 First Street NE., Washington, 
DC 20426, Telephone: (202) 502-8524, Mark.Bennett@ferc.gov.

SUPPLEMENTARY INFORMATION: 
    1. Under section 215 of the Federal Power Act (FPA),\1\ the 
Commission proposes to approve Reliability Standard BAL-001-2 (Real 
Power Balancing Control Performance) that the North American Electric 
Reliability Corporation (NERC), the Commission-certified Electric 
Reliability Organization (ERO), submitted for approval. The proposed 
Reliability Standard applies to balancing authorities and regulation 
reserve sharing groups, and is designed to maintain Interconnection 
frequency within predefined frequency limits. The Commission also 
proposes to approve the retirement of currently-effective Reliability 
Standard BAL-001-1 immediately prior to the effective date of BAL-001-
2.
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    \1\ 16 U.S.C. 824(o) (2012).
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    2. Further, the Commission proposes to approve NERC's four proposed 
definitions, associated violation risk factors and violation severity 
levels, implementation plan, and effective dates. The Commission also 
proposes that NERC submit an informational filing that would address 
the impact of the proposed Reliability Standard on inadvertent 
interchange \2\ and unscheduled power flows.\3\
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    \2\ NERC defines ``Inadvertent Interchange'' in the NERC 
Glossary of Terms Used in Reliability Standards (Glossary) as 
``[t]he difference between the Balancing Authority's Net Actual 
Interchange and Net Scheduled Interchange. (IA - 
IS)''
    \3\ ``Unscheduled power flows'' generally refers to the power 
flows that result from the law of physics that causes power from a 
given source to flow over all possible paths to its destination.
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I. Background

A. Mandatory Reliability Standards and Order No. 693 Directive

    3. Section 215 of the FPA requires a Commission-certified Electric 
Reliability Organization (ERO) to develop mandatory and enforceable 
Reliability Standards that are subject to Commission review and 
approval. Specifically, the Commission may approve, by rule or order, a 
proposed Reliability Standard or modification to a Reliability Standard 
if it determines that the Standard is just, reasonable, not unduly 
discriminatory or preferential and in the public interest.\4\ Once 
approved, the Reliability Standards may be enforced by NERC, subject to 
Commission oversight, or by the Commission independently.\5\
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    \4\ 16 U.S.C. 824o(d)(2).
    \5\ 16 U.S.C. 824o(e).
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    4. Pursuant to section 215 of the FPA, the Commission established a 
process to select and certify an ERO,\6\ and subsequently certified 
NERC.\7\ On March 16, 2007, the Commission issued Order No. 693, 
approving 83 of the 107 Reliability Standards filed by NERC, including 
BAL-001-0 and a companion standard BAL-002-0.\8\ When approving BAL-
002-0, the Commission directed NERC ``to modify this Reliability 
Standard to define a significant deviation and a reportable event, 
taking into account all events that have an impact on frequency, e.g., 
loss of supply, loss of load and significant scheduling problems, which 
can cause frequency disturbances and to address how balancing 
authorities should respond.'' \9\
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    \6\ 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).
    \7\ North American Electric Reliability Corp., 116 FERC ] 
61,062, order on reh'g and compliance, 117 FERC ] 61,126 (2006), 
aff'd sub nom. Alcoa, Inc. v. FERC, 564 F.3d 1342 (D.C. Cir. 2009).
    \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). The Commission approved 
Reliability Standard BAL-001-1 in an unpublished letter order, 
October 16, 2013 in Docket No. RD13-11-000.
    \9\ Id. P 355.
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B. Proposed Reliability Standard BAL-001-2

    5. On April 2, 2014, NERC filed a petition (Petition) seeking 
approval of proposed Reliability Standard BAL-001-2, four new 
definitions to be added to the Glossary of Terms used in NERC 
Reliability Standards (NERC Glossary of

[[Page 70484]]

Terms) and the associated violation risk factors and violation severity 
levels, effective dates, and implementation plan.\10\ NERC states that 
the proposed Reliability Standard is just, reasonable, not unduly 
discriminatory or preferential, and in the public interest because it 
satisfies the factors set forth in Order No. 672, which the Commission 
applies when reviewing a proposed Reliability Standard.\11\ Also, NERC 
asserts that proposed Reliability Standard BAL-001-2 addresses the 
Commission's Order No. 693 directive pertaining to BAL-002-0.
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    \10\ Proposed Reliability Standard BAL-001-2 is available on the 
Commission's eLibrary document retrieval system in Docket No. RM14-
10-000 and on the NERC Web site, www.nerc.com.
    \11\ NERC Petition at 6 and Exhibit C (citing Order No. 672, 
FERC Stats. & Regs. ] 31,204 at PP 323-335, 444).
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    6. NERC proposes to revise Reliability Standard BAL-001-2 by 
replacing the Control Performance Standard 2 (CPS2) in currently-
effective Requirement R2 with a new term, ``Balancing Authority ACE 
Limit (BAAL).'' \12\ The Balancing Authority ACE Limit, unique for each 
balancing authority, contains dynamic limits as a function of 
Interconnection frequency and provides the basis for a balancing 
authority's obligation to balance its resources and demand in real-time 
so that its clock-minute average ACE does not exceed its Balancing 
Authority ACE Limit for more than 30 consecutive clock-minutes.\13\
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    \12\ Area Control Error (ACE) is the instantaneous difference 
between a Balancing Authority's Net Actual and Scheduled 
Interchange, taking into accounts the effects of Frequency Bias, 
correction for meter error, and Automatic Time Error Correction, if 
operating in that mode.
    \13\ NERC Petition at 12.
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    7. Proposed Reliability Standard BAL-001-2 has two requirements and 
two attachments containing the mathematical equations for calculating 
the Control Performance Standard 1 (CPS1) in Requirement R1,\14\ the 
Balancing Authority ACE Limit in Requirement R2, and associated 
measures. NERC states that the only proposed change to Requirement R1 
is to move the equation and explanation of the individual components of 
CPS1 to Attachment 1. NERC explains that the proposed revisions to 
Requirement R1 ``are administratively efficient and clarify the intent 
of the Requirement.'' \15\ NERC states that the ``underlying 
performance aspect'' of Requirement R1 remains the same: ``to measure 
how well a Balancing Authority is able to control its generation and 
load management programs, as measured by its ACE, to support its 
Interconnection's frequency over a rolling one-year period.'' \16\
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    \14\ The ``Responsible Entity'' designated in proposed 
Reliability Standard BAL-001-2 Requirement R1 is the balancing 
authority and/or regulation reserve sharing groups.
    \15\ NERC Petition at 11.
    \16\ Id.
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    8. Proposed Requirement R2 is new and replaces the existing Control 
Performance Standard 2 requirement. The current Reliability Standard 
BAL-001-1 Requirement R2 requires each balancing authority to operate 
such that for at least 90 percent of the ten-minute periods in a 
calendar month (using six non-overlapping periods per hour), the 
average area control error (ACE) must be within a specific limit, 
referred to as L10.\17\
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    \17\ Reliability Standard BAL-001-1 available at: http://www.nerc.com/pa/Stand/Reliability%20Standards/BAL-001-1.pdf.
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    9. Requirement R2 of the proposed Reliability Standard BAL-001-2 
states:

    Balancing Authority shall operate such that its clock-minute 
average of Reporting ACE does not exceed its clock-minute Balancing 
Authority ACE Limit (BAAL) for more than 30 consecutive clock-
minutes, calculated in accordance with Attachment 2, for the 
applicable Interconnection in which the Balancing Authority 
operates.

    10. NERC explains that the Balancing Authority ACE Limits are 
unique for each balancing authority and provide dynamic limits for the 
balancing authority's ACE value as a function of its Interconnection 
frequency.\18\ NERC states that the proposed Reliability Standard is 
intended to enhance the reliability of each Interconnection by 
maintaining frequency within predefined limits under all conditions. 
Furthermore, NERC states that proposed Reliability Standard BAL-001-2 
and accompanying definitions include the benefits of the Automatic Time 
Error Correction (ATEC) equation in the WECC-specific regional variance 
in Reliability Standard BAL-001-1.\19\
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    \18\ NERC Supplemental Filing at 1.
    \19\ NERC Petition at 2.
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    11. NERC also proposes violation risk factors and violation 
severity levels for each requirement of the proposed Reliability 
Standard and an implementation plan and effective dates. NERC states 
that these proposals were developed and reviewed for consistency with 
NERC and Commission guidelines.
    12. NERC proposes an effective date for the proposed Reliability 
Standard that is the first day of the first calendar quarter that is 
twelve months after the date of Commission approval. NERC states that 
its proposed implementation date will allow entities to make any 
software adjustment that may be required to perform the Balancing 
Authority ACE Limit calculations.\20\
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    \20\ NERC Petition at 3.
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    13. On May 9, 2014, NERC submitted a supplemental filing 
(Supplemental Filing) to address the status of the Commission directive 
in Order No. 693 pertaining to Reliability Standard BAL-002-0 and 
update the Commission regarding the status of a field trial undertaken 
for proposed Reliability Standard BAL-001-2.\21\ In its Supplemental 
Filing, NERC reiterates the importance of the proposed revision 
establishing dynamic limits for a balancing authority's ACE as a 
function of the Interconnection frequency, stating that ``[o]ne of the 
reliability benefits of the proposed Reliability Standard is that it 
allows Balancing Authorities to calculate their position within these 
boundaries on a real-time basis and take action to support 
reliability.'' \22\ Further, NERC states that proposed Reliability 
Standard BAL-001-2 addresses the Commission's directive related to BAL-
002-0 ``in an equally efficient and effective manner'' \23\ NERC adds 
that revisions to Reliability Standard BAL-002-1 are currently being 
developed and will complement proposed Reliability Standard BAL-001-2 
that is the subject of the immediate proceeding.\24\ Regarding the 
ongoing field trial, NERC stated that ``the widespread participation of 
Balancing Authorities has provided insight into how the changes in 
proposed Reliability Standard BAL-001-2 will impact reliability.'' \25\
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    \21\ NERC Supplemental Filing at 1.
    \22\ Id. at 2.
    \23\ Id. at 3.
    \24\ The Commission notes that the currently-effective 
Reliability Standard BAL-002-1 requires balancing authorities to 
return its ACE to zero within 15 minutes following a reportable 
disturbance. However, the Field Trial Report does not provide any 
information whether compliance with Reliability Standard BAL-002-1 
had any impact on the proposed Balancing Authority ACE Limits in 
Reliability Standard BAL-001-2. Any future modifications to BAL-002 
should take this into consideration.
    \25\ NERC Supplemental Filing at 6, noting that 47 balancing 
authorities participated in the Field Trial Report: 16 in the 
Eastern Interconnection, 29 in the Western Interconnection, ERCOT 
and Quebec.
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    14. On July 31, 2014, NERC submitted an informational filing 
(Informational Filing) of its Preliminary Field Trial Report (Field 
Trial Report) evaluating the effects of proposed Reliability Standard 
BAL-001-2. NERC states that the Field Trial Report results to date 
demonstrate that the correlation between Requirements R1 and R2 of 
proposed Reliability Standard BAL-001-2 drive corrective actions to 
support Interconnection frequency and reliability.\26\ NERC also states 
that the Balancing Authority ACE Limit, in conjunction with currently-
effective

[[Page 70485]]

Reliability Standard BAL-003-1 (Frequency Response and Frequency Bias 
Setting), satisfies the directive.\27\
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    \26\ NERC Field Trial Report at 1.
    \27\ Id. at 14.
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II. Discussion

    15. Pursuant to FPA section 215(d)(2), we propose to approve 
Reliability Standard BAL-001-2 as just, reasonable, not unduly 
discriminatory or preferential, and in the public interest. We propose 
to approve NERC's four proposed definitions, violation risk factor and 
violation severity level assignments, and the retirement of currently-
effective BAL-001-1.\28\ Likewise, we propose to approve NERC's 
implementation plan, in which NERC proposes an effective date of the 
first day of the first calendar quarter, twelve months after the date 
of Commission approval.\29\
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    \28\ NERC proposes four definitions for inclusion in the 
Glossary of Terms Used in NERC Reliability Standards: Regulation 
Reserve Sharing Group, Reserve Sharing Group Reporting ACE, 
Reporting ACE, and Interconnection. As stated in Exhibit G, 
Consideration of Comments at 13, ``Regulation Reserve Sharing 
Group'' would be added to the NERC Compliance Registry prior to 
implementation of the proposed standard.
    \29\ NERC Petition Exhibit B at 4.
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    16. The purpose of proposed Reliability Standard BAL-001-2 is to 
control Interconnection frequency within defined limits. Proposed 
Reliability Standard BAL-001-2 includes both long and short term 
performance measures for Interconnection frequency control by providing 
dynamic (i.e., real-time) limits that are specific for each balancing 
authority and Interconnection. By basing Balancing Authority ACE Limits 
on pre-defined frequency trigger limits for each Interconnection, we 
believe the real-time measurements established in proposed Reliability 
Standard BAL-001-2 will help ensure the Interconnection frequency 
returns to a reliable state should a balancing authority's ACE, or the 
Interconnection's frequency, exceed acceptable bounds.
    17. We agree with NERC's assertion that the Balancing Authority ACE 
Limit is a real-time measure of a balancing authority's required 
performance and encourages operation in support of the Interconnection 
frequency and drives corrective action back within predefined ACE 
limits when helpful for adjusting Interconnection frequency.\30\
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    \30\ NERC Field Trial Report at 23.
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    18. Further, we believe that the NERC proposal satisfies the 
directive set forth in Order No. 693 that NERC modify Reliability 
Standard BAL-002 ``. . . to define a significant deviation and a 
reportable event, taking account all events that have an impact on 
frequency, e.g., loss of supply, loss of load and significant 
scheduling problems. . . .'' \31\ In particular, we believe that NERC's 
statement that the Balancing Authority ACE Limit, in conjunction with 
currently-effective Reliability Standard BAL-003-1, satisfies the 
directive.\32\ We also believe that Reliability Standard BAL-003-1 
addresses the Commission's Order No. 693 directive with regard to 
events that have an impact on frequency due to the loss of supply and 
proposed Reliability Standard BAL-001-2 addresses aspects of the same 
directive with regard to loss of load. Further, we accept NERC's 
explanation that proposed Reliability Standard BAL-001-2 addresses the 
Commission's Order No. 693 directive with regard to the need to more 
broadly define reportable events and that the proposed standard sets a 
variable joint megawatt limit (i.e., real-time) that is dependent on 
concurrent Interconnection frequency. With regard to the aspect of the 
Order No. 693 directive requiring that reportable events account for 
loss of load, we agree with NERC's statement that loss of load can 
cause a mismatch in supply and demand that results in a positive change 
in frequency.\33\ We accept NERC's explanation that the Balancing 
Authority ACE Limit has been shown to be effective in limiting the 
duration that the Interconnection frequency is impacted by loss of 
supply, loss of load or any other conditions causing a balancing 
authority to exceed its Balancing Authority ACE Limit.\34\
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    \31\ Order No. 693, FERC Stats. & Regs. ] 31,242 at P 355.
    \32\ NERC Field Trial Report at 4.
    \33\ Id. at 7.
    \34\ Id. at 27.
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    19. In sum, we believe the statements in NERC's Petition, 
Supplemental Filing, and Informational Filing provide sufficient 
technical support that NERC has addressed the Commission's Order No. 
693 directive in an equally and effective manner.\35\ While we propose 
to approve Reliability Standard BAL-001-2, we also propose that NERC 
submit an informational filing--discussed immediately below--regarding 
the potential of proposed Reliability Standard BAL-001-2 to contribute 
to unscheduled power flows and inadvertent interchange.
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    \35\ NERC Supplemental Filing at 3.
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A. Potential for Proposed Reliability Standard BAL-001-2 To Contribute 
to Unscheduled Power Flows and Inadvertent Interchange

    20. NERC states that, as a proof of concept for the Balancing 
Authority ACE Limit requirement, a field trial was endorsed by the NERC 
Operating committee and subsequently approved by the NERC Standards 
Committee in June 2005.\36\ During the development of the proposed 
Reliability Standard, some stakeholders that participated in the field 
trial commented to the NERC standard drafting team that the proposed 
Balancing Authority ACE Limit established in Requirement R2 of BAL-001-
2 has caused increased system operating limit violations, particularly 
in the Western Interconnection. For example, one large transmission 
operator commented that the proposed Balancing Authority ACE Limit 
could increase the number of system operating limit violations, and 
could possibly cause large unscheduled power flows resulting in an 
increased ACE.\37\ Another NERC stakeholder commented that the proposed 
Reliability Standard could provide opportunities for entities to create 
unscheduled power flows within the standard's boundaries, without 
regard to the impacts and which could lead to system operating limit 
violations due to large ACEs.\38\ The same stakeholder commented that 
the Western Electricity Coordinating Council has decided to apply a 
limit of four times a balancing authority's L10 to limit ACE 
deviations from balancing authority flows that negatively impact the 
transmission system.
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    \36\ Id. at 3.
    \37\ NERC Petition, Exhibit G, Consideration of Comments April 
2013, at 43.
    \38\ Id. at 77.
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    21. In addition, in the Field Trial Report, NERC asserts that there 
is no relationship between the Balancing Authority ACE Limit field 
trial and accumulated inadvertent interchange in either the Eastern or 
Western Interconnections.\39\ However, due to a large allowance in ACE 
deviations in real-time while still complying with the proposed 
Balancing Authority ACE Limit, an increase in the amount of inadvertent 
interchange on the bulk electric system of all Interconnections may 
result.\40\ In other words, proposed

[[Page 70486]]

BAL-001-2 could allow balancing authorities to have a very large 
deviation from an ACE of zero and still be compliant with the dynamic 
values of the Balancing Authority ACE Limits in the proposed 
Reliability Standard.
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    \39\ NERC Field Trial Report at 20.
    \40\ A comparison between the existing Control Performance 
Standard 1 curves and the Balancing Authority ACE Limit curves shown 
in NERC's Field Trial Report indicates that there are large ACE 
deviations at the boundaries of 60 +/- 0.02 Hz. Id. Figure 5 at 24.
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    22. The Commission is concerned that the Balancing Authority ACE 
Limit in proposed Reliability Standard BAL-001-2 may have an unintended 
consequence of (i) allowing significant amounts of unscheduled power 
flows, creating an undue burden for transmission operators and 
reliability coordinators to address power flows approaching or 
exceeding system operating limits or interconnection reliability 
operating limits, and (ii) the significant increase in inadvertent 
interchange could result in an adverse reliability impact between real-
time operations and day and/or hour-ahead analysis performed by 
reliability coordinators and transmission operators.
    23. Based on the concerns discussed above, the Commission proposes 
to direct that NERC submit an informational filing following 
implementation of the proposed Reliability Standard to monitor 
unscheduled power flows and inadvertent interchange in the Western and 
Eastern Interconnections. Specifically, for the two-year period 
following implementation (i.e., the effective date) of the standard, 
the Commission proposes to direct NERC to provide the number of SOL/
IROL violations, the date and time, location, the duration and 
magnitude, due to unscheduled power flows and inadvertent interchange 
within Western and the Eastern Interconnections. This information will 
provide NERC, the Commission, and other interested entities with the 
material to evaluate the effect of Reliability Standard BAL-001-2 on 
unscheduled power flows and inadvertent interchange and the resulting 
consequences on the Bulk-Power System. Accordingly, the Commission 
proposes to direct that NERC provide data on unscheduled power flows 
and inadvertent interchange for a two-year period following 
implementation of the proposed Reliability Standard.
    24. The Commission proposes to direct NERC to submit the 
informational filing 90 days after the end of the two-year period 
following implementation. Should the data indicate reliability issues 
due to increases in unscheduled power flows and inadvertent interchange 
under the new Balancing Authority ACE Limit at any time during the two-
year period of study, the Commission expects that NERC will immediately 
propose and implement adequate remedies. The Commission seeks comments 
from NERC, and other interested entities on the proposed informational 
filing. The Commission also seeks comment whether any additional data 
would support the analysis and, thus, should be provided with the 
informational filing. Furthermore, the Commission also seeks comment on 
whether a regional variance would be necessary for those regions that 
experienced adverse impacts during the field trial due to inadvertent 
interchange.\41\
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    \41\ The Western Interconnection applies a limit of four times a 
balancing authority's L10 to limit ACE deviations from 
balancing authority flows that negatively impact the transmission 
system. Id. at 14.
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III. Information Collection Statement

    25. The Office of Management and Budget (OMB) regulations require 
that OMB approve certain reporting and recordkeeping (collections of 
information) imposed by an agency.\42\ Upon approval of a collection(s) 
of information, OMB will assign an OMB control number and expiration 
date. Respondents subject to the filing requirements of this 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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    \42\ 5 CFR 1320.11.
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    26. The Commission is submitting these reporting and recordkeeping 
requirements to OMB for its review and approval under section 3507(d) 
of the PRA. Comments are solicited on the Commission's need for this 
information, whether the information will have practical utility, the 
accuracy of the provided burden estimate, 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.
    27. This Notice of Proposed Rulemaking proposes to approve 
revisions to Reliability Standard BAL-001-2. NERC states in its 
petition that the proposed Reliability Standard defines a new concept: 
Balancing Authority ACE Limit, which is unique for each balancing 
authority and provides dynamic limits for a balancing authority's ACE 
value as a function of the Interconnection frequency.\43\ NERC states 
that the proposed Reliability Standard improves reliability by adding a 
frequency component to the measurement of a balancing authority's ACE, 
and allows for the formation of ``Regulation Reserve Sharing Groups.'' 
NERC's proposed Reliability Standard requires a balancing authority to 
balance its resources and demand in real-time so that the clock-minute 
average of its ACE does not exceed its Balancing Authority ACE Limit 
for more than 30 consecutive clock-minutes. Furthermore, NERC states 
that proposed Reliability Standard BAL-001-2 and accompanying 
definitions include the benefits of the Automatic Time Error Correction 
equation in the WECC-specific regional variance in Reliability Standard 
BAL-001-1.\44\ The proposed Reliability Standard and related reporting 
requirements are applicable to balancing authorities and regulation 
reserve sharing groups.
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    \43\ NERC Petition at 12.
    \44\ Id. at 2.
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    28. Public Reporting Burden: Our estimate below regarding the 
number of respondents is based on the NERC Compliance Registry as of 
October17, 2014. According to the NERC Compliance Registry, there are 
71 balancing authorities in the Eastern Interconnection, 34 balancing 
authorities in the Western Interconnection and one balancing authority 
in the Electric Reliability Council of Texas (ERCOT). The Commission 
bases individual burden estimates on the time needed for balancing 
authorities to develop tools needed to facilitate reporting that are 
required in the Reliability Standard. These burden estimates are 
consistent with estimates for similar tasks in other Commission-
approved Reliability Standards. The following estimates relate to the 
requirements for this Notice of Proposed Rulemaking in Docket No. RM14-
10-000.

[[Page 70487]]



                                                                 RM14-10-000 Final Rule
                                               [BAL-001-2: Real Power Balancing Control Performance] \45\
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                                                       Annual  number
                                          Number of     of  responses   Total number     Average burden & cost     Total annual burden       Cost per
                                         respondents         per        of responses         per  response         hours & total annual   respondent ($)
                                                         respondent                                                     cost \46\
                                                  (1)             (2)     (1)*(2)=(3)  (4).....................              (3)*(4)=(5)         (5)/(1)
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BA/RRSG: \47\ Update and Maintain                 106               1             106  8 hours per response....              848 (106*8)           $1030
 Energy Management Systems.                                                            $1030 (8 x $128.76).....      $109,180 (1030*106)
BA: Record Retention \48\............             106               1             106  4.......................                      424             112
                                                                                       $112....................                  $11,872
                                      ------------------------------------------------------------------------------------------------------------------
    Total............................  ..............  ..............             212  ........................                    1,272           1,142
                                                                                                                                $121,052
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    Title: Mandatory Reliability Standards for BAL-001-2.
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    \45\ Proposed Reliability Standard BAL-001-2 applies to 
balancing authorities and regulation reserve sharing groups. 
However, the burden associated with the BA complying with 
Requirement R1 is not included within this table because the 
Commission accounted for it under Commission-approved Reliability 
Standards BAL-001-1.
    \46\ The estimated hourly costs (salary plus benefits) are based 
on Bureau of Labor Statistics (BLS) information (available at http://www.bls.gov/oes/current/naics2_22.htm) for an electrical engineer 
($60.87/hour) and a lawyer ($128.76).
    \47\ BA=Balancing Authority; RRSG=Regulation Reserve Sharing 
Group.
    \48\ $28/hour, based on a Commission staff study of record 
retention burden cost.
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    Action: Proposed Collection FERC-725R.
    OMB Control No.: 1902-0268.
    Respondents: Businesses or other for-profit institutions; not-for-
profit institutions.
    Frequency of Responses: On Occasion.
    Necessity of the Information: This proposed rule proposes to 
approve the Reliability Standard pertaining to requiring balancing 
authorities to operate such that its clock-minute average reporting ACE 
does not exceed its clock-minute Balancing Authority ACE Limits for 
more than 30 consecutive clock-minutes. The proposed Reliability 
Standard Requirement R2 provides each balancing authority a dynamic ACE 
limit that is a function of Interconnection frequency. The proposed 
Reliability Standard will provide dynamic limits that are balancing 
authority and Interconnection specific. In addition, these ACE limits 
are based on identified Interconnection frequency limits to ensure the 
Interconnection returns to a reliable state when an individual 
balancing authority's ACE or Interconnection frequency deviation 
contributes undue risk to the Interconnection.
    Internal Review: The Commission reviewed the proposed Reliability 
Standard and made a determination that its action is necessary to 
implement section 215 of the FPA. These requirements, if accepted, 
should conform to the Commission's expectation for generation and 
demand balance throughout the Eastern and Western Interconnections as 
well as within the ERCOT Region.
    29. 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].
    30. For submitting comments concerning the collection(s) of 
information and the associated burden estimate(s), please send your 
comments to the Commission and to the Office of Management and Budget, 
Office of Information and Regulatory Affairs, Washington, DC 20503 
[Attention: Desk Officer for the Federal Energy Regulatory Commission, 
phone: (202) 395-4638, fax: (202) 395-7285]. For security reasons, 
comments to OMB should be submitted by email to: 
oira_submission@omb.eop.gov. Comments submitted to OMB should include 
FERC-725R and Docket Number RM14- 10-000.

IV. Environmental Analysis

    31. The Commission is required to prepare an Environmental 
Assessment or an Environmental Impact Statement for any action that may 
have a significant adverse effect on the human environment.\49\ 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.\50\ The actions proposed here 
fall within this categorical exclusion in the Commission's regulations.
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    \49\ Regulations Implementing the National Environmental Policy 
Act of 1969, Order No. 486, FERC Stats. & Regs., Regulations 
Preambles 1986-1990 ] 30,783 (1987).
    \50\ 18 CFR 380.4(a)(2)(ii).
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V. Regulatory Flexibility Act Certification

    32. The Regulatory Flexibility Act of 1980 (RFA) \51\ generally 
requires a description and analysis of proposed rules that will have 
significant economic impact on a substantial number of small entities. 
As shown in the information collection section, the proposed 
Reliability Standard applies to 106 entities. Comparison of the 
applicable entities with the Commission's small business data indicates 
that approximately 23 \52\ are small business entities. Of these, the 
Commission estimates that approximately five percent, or one of these 
small entities, will be affected by the new requirements of the 
proposed Reliability Standard.
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    \51\ 5 U.S.C. 601-612.
    \52\ 21.4 percent of the total number of affected entities.
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    33. The Commission estimates that the small entities that will be 
affected by proposed Reliability Standard BAL-001-2 will incur one-time 
compliance cost up to $109,180 (i.e. the cost of updating and 
maintaining energy management systems), resulting in cost of 
approximately $1,030 per balancing authority and/or regulation reserve 
sharing groups. These costs represent an estimate of the costs a small 
entity could

[[Page 70488]]

incur if the entity is identified as an applicable entity. The 
Commission does not consider the estimated cost 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.

VI. Comment Procedures

    34. 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 January 26, 2015. Comments must refer to 
Docket No. RM14-10-000, and must include the commenter's name, the 
organization they represent, if applicable, and their address in their 
comments.
    35. 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.
    36. 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.
    37. 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

    38. 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.
    39. 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.
    40. 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. 2014-27949 Filed 11-25-14; 8:45 am]
BILLING CODE 6717-01-P


