[Federal Register Volume 82, Number 227 (Tuesday, November 28, 2017)]
[Proposed Rules]
[Pages 56186-56192]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-25586]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

18 CFR Part 40

[Docket No. RM16-22-000]


Coordination of Protection Systems for Performance During Faults 
and Specific Training for Personnel Reliability Standards

AGENCY: Federal Energy Regulatory Commission, Department of Energy.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Federal Energy Regulatory Commission (Commission) proposes 
to approve Reliability Standards PRC-027-1 (Coordination of Protection 
Systems for Performance During Faults) and PER-006-1 (Specific Training 
for Personnel) submitted by the North American Electric Reliability 
Corporation (NERC). The purpose of proposed Reliability Standard PRC-
027-1 is to maintain the coordination of protection systems installed 
to detect and isolate faults on bulk electric system elements, such 
that those protection systems operate in the intended sequence during 
faults. The purpose of proposed Reliability Standard PER-006-1 is to 
ensure that personnel are trained on specific topics essential to 
reliability to perform or support real-time operations of the bulk 
electric system. In addition, the Commission proposes to direct NERC to 
develop certain modifications to proposed Reliability Standard PRC-027-
1.

DATES: Comments are due January 29, 2018.

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:
Juan Villar (Technical Information), Office of Electric Reliability, 
Division of Reliability Standards and Security, 888 First Street NE., 
Washington, DC 20426, Telephone: (772) 678-6496, [email protected].
Alan Rukin (Legal Information), Office of the General Counsel, Federal 
Energy Regulatory Commission, 888 First Street NE., Washington, DC 
20426, Telephone: (202) 502-8502, [email protected].

SUPPLEMENTARY INFORMATION: 
    1. Pursuant to section 215 of the Federal Power Act (FPA), the 
Commission proposes to approve proposed Reliability Standards PRC-027-1 
(Coordination of Protection Systems for Performance During Faults) and 
PER-006-1 (Specific Training for Personnel), which were submitted for 
approval by the North American Electric Reliability Corporation (NERC), 
the Commission-certified Electric Reliability Organization (ERO).\1\ As 
discussed below, however, the Commission also proposes to direct NERC 
to modify proposed Reliability Standard PRC-027-1 to require an initial 
protection system coordination study to ensure that applicable entities 
will perform (or have performed), as a baseline, a study demonstrating 
proper coordination of its protection systems. We propose to direct 
NERC to submit the modified Reliability Standard for Commission 
approval within 12 months following the effective date of a final rule 
in this proceeding.
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    \1\ 16 U.S.C. 824o.
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    2. The Commission also proposes to approve the associated violation 
risk factors, violation severity levels, implementation plans, and 
effective dates proposed by NERC for Reliability Standards PRC-027-1 
and PER-006-1. The Commission further proposes to approve the 
retirement of currently-effective Reliability Standard PRC-001-1.1(ii) 
(System Protection Coordination).\2\
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    \2\ The Commission approved Reliability Standard PRC-001-1.1(ii) 
on May 29, 2015. North American Electric Reliability Corporation, 
151 FERC ] 61,186 (2015).
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    3. In addition, the Commission proposes to approve new and revised 
definitions submitted by NERC for incorporation in the NERC Glossary of 
Terms Used in NERC Reliability Standards (``NERC Glossary'') for the 
following terms: (1) ``protection system coordination study;'' (2) 
``operational planning analysis;'' and (3) ``real-time assessment.''

[[Page 56187]]

I. Background

A. Section 215 and Mandatory Reliability Standards

    4. Section 215 of the FPA requires a Commission-certified 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 section 215 of the FPA.\5\
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    \3\ Id. 824o(c), (d).
    \4\ Id. 824o(e).
    \5\ North American Electric Reliability Corp., 116 FERC ] 
61,062, order on reh'g and compliance, 117 FERC ] 61,126 (2006), 
order on compliance, 118 FERC ] 61,190, order on reh'g, 119 FERC ] 
61,046 (2007), aff'd sub nom. Alcoa Inc. v. FERC, 564 F.3d 1342 
(D.C. Cir. 2009).
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B. Order No. 693

    5. On March 16, 2007, the Commission issued Order No. 693, 
approving 83 of the 107 Reliability Standards filed by NERC, including 
Reliability Standard PRC-001-1.\6\ In addition, the Commission directed 
NERC to develop modifications to Reliability Standard PRC-001-1 that:
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    \6\ Mandatory Reliability Standards for the Bulk-Power System, 
Order No. 693, FERC Stats. & Regs. ] 31,242, at PP 1433-1449, order 
on reh'g, Order No. 693-A, 120 FERC ] 61,053 (2007).

    (1) Correct the references for Requirements, and [sic] (2) 
include a requirement that upon the detection of failures in relays 
or protection system elements on the Bulk-Power System that threaten 
reliable operation, relevant transmission operators must be informed 
promptly, but within a specified period of time that is developed in 
the Reliability Standards development process, whereas generator 
operators must also promptly inform their transmission operators; 
and (3) clarifies that, after being informed of failures in relays 
or protection system elements that threaten reliability of the Bulk-
Power System, transmission operators must carry out corrective 
control actions, i.e., return a system to a stable state that 
respects system requirements as soon as possible and no longer than 
30 minutes after they receive notice of the failure.\7\
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    \7\ Order No. 693, FERC Stats. & Regs. ] 31,242 at P 1449.
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C. NERC Petition and Proposed Reliability Standards PRC-027-1 and PER-
006-1

    6. On September 2, 2016, NERC submitted a petition seeking 
Commission approval of proposed Reliability Standards PRC-027-1 and 
PER-006-1.\8\ NERC states that the proposed Reliability Standards, new 
and revised NERC Glossary terms, and the retirement of Reliability 
Standard PRC-001-1.1(ii) satisfy the Commission's criteria in Order No. 
672 and are just, reasonable, not unduly discriminatory or 
preferential, and in the public interest.\9\ NERC explains that the 
intent of the proposed Reliability Standards and changes to the NERC 
Glossary are to maintain the coordination of protection systems 
installed to detect and isolate faults on bulk electric system elements 
and require registered entities to provide training to their relevant 
personnel on protection systems and remedial action schemes. NERC 
asserts that the proposed Reliability Standards are an improvement over 
currently-effective Reliability Standard PRC-001-1.1(ii) and will 
ensure that appropriate personnel are trained on protection systems and 
that protection systems are appropriately studied, coordinated, and 
monitored.
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    \8\ Proposed Reliability Standards PRC-027-1 and PER-006-1 are 
not attached to this Notice of Proposed Rulemaking. The proposed 
Reliability Standards are available on the Commission's eLibrary 
document retrieval system in Docket No. RM16-22-000 and are posted 
on the NERC Web site, http://www.nerc.com.
    \9\ NERC Petition at 10.
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1. Proposed Reliability Standard PER-006-1
    7. NERC states that proposed Reliability Standard PER-006-1 
requires generator operators to use a systematic approach to develop 
and implement training for dispatch personnel at centrally-located 
dispatch centers.\10\ NERC explains that proposed Reliability Standard 
PER-006-1 will also cover plant personnel who are responsible for real-
time control of a generator. NERC maintains that it is appropriate to 
train plant personnel [in] the functionality of protection systems and 
remedial action schemes. NERC observes that proposed Reliability 
Standard PER-006-1 replaces the phrase ``purpose and limitations'' used 
in currently-effective Reliability Standard PRC-001-1(ii) with the 
phrase ``operational functionality'' to clearly identify the objective 
of the training.\11\ NERC also observes that proposed Reliability 
Standard PER-006-1 replaces the phrase ``applied in its area'' in 
Reliability Standard PRC-001-1.1(ii) with the phrase ``that affect the 
output of the generating facility(ies) it operates'' to properly tailor 
the scope of the required training. NERC notes that proposed 
Reliability Standard PER-006-1 does not specify a periodicity for the 
required training.
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    \10\ Id. at 13.
    \11\ Id. at 15.
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2. Proposed Reliability Standard PRC-027-1
    8. NERC asserts that proposed Reliability Standard PRC-027-1:

provides a clear set of Requirements that obligate entities to (1) 
implement a process for establishing and coordinating new or revised 
Protection System settings, and (2) periodically study Protection 
System settings that could be affected by incremental changes in 
Fault current to ensure the Protection Systems continue to operate 
in their intended sequence.\12\
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    \12\ Id. at 26.

    According to NERC, proposed Reliability Standard PRC-027-1, 
Requirement R1 mandates that each transmission owner, generator owner, 
and distribution provider establish a process for developing new and 
revised protection system settings for bulk electric system 
elements.\13\
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    \13\ Id. at 27.
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    9. NERC states that proposed Reliability Standard PRC-027-1, 
Requirement R2 mandates that every six years, applicable entities must 
either: (1) Perform a protection system coordination study to determine 
whether the protection systems continue to operate in the intended 
sequence during faults; (2) compare present fault current values to an 
established fault current baseline and, only if the comparison 
identifies a 15 percent or greater deviation in fault current values 
(either three phase or phase to ground) at a bus to which the bulk 
electric system is connected, perform a protection system coordination 
study; or (3) use a combination of options 1 and 2.\14\
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    \14\ Id. at 26.
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    10. NERC explains that proposed Reliability Standard PRC-027-1, 
Requirement R3 will require applicable entities to use the process 
established under proposed Reliability Standard PRC-027-1, Requirement 
R1 for the development of any new or revised protection system 
settings.
3. Proposed Retirement of Reliability Standard PRC-001-1.1(ii)
    11. NERC states that Reliability Standard PRC-001-1.1(ii) includes 
six requirements that are either addressed by Reliability Standards 
approved by the Commission or by the proposed Reliability Standards. 
Specifically, NERC explains that Reliability Standard PRC-001-1.1(ii), 
Requirement R1 has been partially replaced by currently-effective 
Reliability Standards PER-003-1 and PER-005-2. NERC continues that 
proposed Reliability Standard PER-006-1 and the proposed revised 
definitions of operational planning

[[Page 56188]]

analysis and real-time assessment will replace the remaining portions 
of Reliability Standard PRC-001-1.1(ii), Requirement R1. NERC asserts 
that Reliability Standard PRC-001-1.1(ii), Requirement R2 has been 
addressed by Reliability Standards IRO-001-4, IRO-008-2, IRO-010-2, 
TOP-001-3, and TOP-003-3, which the Commission approved in Order No. 
817.\15\ NERC states that Reliability Standard PRC-001-1.1(ii), 
Requirements R3 and R4 will be replaced with proposed Reliability 
Standard PRC-027-1. NERC also explains that Reliability Standard PRC-
001-1.1(ii), Requirement R5 has been replaced with several Reliability 
Standards developed after Reliability Standard PRC-001-1(ii) became 
effective.\16\ NERC further states that Reliability Standard PRC-001-
1.1(ii), Requirement R6 has been replaced with Reliability Standards 
TOP-001-3 and TOP-003-3.
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    \15\ Id. at 5 (citing Transmission Operations Reliability 
Standards and Interconnection Reliability Operations and 
Coordination Reliability Standards, Order No. 817, 153 FERC ] 61,178 
(2015)).
    \16\ Id. at 6.
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II. Discussion

    12. Pursuant to section 215(d)(2) of the FPA, we propose to approve 
proposed Reliability Standards PER-006-1 and PRC-027-1 as just, 
reasonable, not unduly discriminatory or preferential, and in the 
public interest, as both proposed Reliability Standards improve upon 
currently-effective Reliability Standard PRC-001-1.1(ii) in important 
ways.\17\ Specifically, proposed Reliability Standard PRC-027-1 does so 
by (1) modifying the applicability section to include the appropriate 
functional entity types with the responsibilities, resources, and skill 
sets to conduct the studies required to coordinate protection systems, 
and (2) listing the protection system functions on all bulk electric 
system elements that require coordination. Proposed Reliability 
Standard PER-006-1, along with existing formal training requirements in 
the PER group of Reliability Standards, also improves upon Reliability 
Standard PRC-001-1.1(ii), Requirement R1 by ensuring that the necessary 
personnel are familiar with and understand the purpose and limitations 
of protection systems schemes while providing more precise and 
auditable requirements. However, proposed Reliability Standard PRC-027-
1, Requirement R2, Option 2 does not appear to ensure coordination of 
all bulk electric system elements with protection system functions. 
Accordingly, pursuant to section 215(d)(5) of the FPA, we propose to 
direct that NERC develop modifications to proposed Reliability Standard 
PRC-027-1 that address our concern regarding this gap, as discussed 
below.
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    \17\ 16 U.S.C. 824o(d)(2).
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    13. In addition, we propose to approve NERC's associated violation 
risk factors, violation severity levels, implementation plans, and 
effective dates. We also propose to approve the revised definitions for 
inclusion in the NERC Glossary. Further, we propose to approve the 
retirement of Reliability Standard PRC-001-1.1(ii), as requested by 
NERC.
    14. Pursuant to 215(d)(5) of the FPA, we propose to direct that 
NERC develop modifications to proposed Reliability Standard PRC-027-1 
addressing our concern that applicable entities that choose Requirement 
R2, Option 2 perform (or have already performed) an initial baseline 
study demonstrating proper coordination of their protection systems. 
Any additional protection system coordination studies would be 
necessary only if an applicable entity is confronted with 15 percent or 
greater fault current deviations from the prior baseline study amounts, 
as currently proposed in Reliability Standard PRC-027-1, Requirement 
R2, Option 2. We propose to direct NERC to submit the modified 
Reliability Standard within 12 months following the effective date of a 
final rule in this proceeding.
    15. Proposed Reliability Standard PRC-027-1, Requirement R2 does 
not require an initial protection system coordination study if an 
applicable entity elects Option 2. Unlike Option 1, which requires 
performance of protection system coordination studies every six years, 
Option 2 requires applicable entities to ``[c]ompare present Fault 
current values to an established Fault current baseline and perform a 
Protection System Coordination Study when the comparison identifies a 
15 percent or greater deviation.'' The proposed Reliability Standard 
and NERC's petition do not indicate that the ``Fault current baseline'' 
must be established through an initial protection system coordination 
study. Instead, NERC's petition states that the baseline must be 
established ``by the effective date of the standard based on short-
circuit studies.'' \18\ The proposed Reliability Standard provides that 
``the initial Fault current baseline(s) shall be established by the 
effective date of this Reliability Standard and updated each time a 
Protection System Coordination Study is performed,'' but this language 
does not require establishing the ``initial Fault current baseline'' 
through an initial protection system coordination study.\19\ NERC's 
petition reinforces this understanding, as noted above, by explicitly 
allowing the use of short-circuit studies to establish the initial 
Fault current baseline.
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    \18\ NERC Petition at 36 n.35.
    \19\ Proposed Reliability Standard PRC-027-1, Requirement R2, 
Option 2 n.1. Footnote 1 further states that if an ``initial 
baseline was not established by the effective date of this 
Reliability Standard because of the previous use of an alternate 
option or the installation of a new BES Element, the entity may 
establish the baseline by performing a Protection System 
Coordination Study'' (emphasis added). Id.
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    16. While they are related terms, we understand there to be a 
difference between short-circuit studies and protection system 
coordination studies. NERC defines protection system coordination study 
as an ``analysis to determine whether Protection Systems operate in the 
intended sequence during Faults.'' \20\ By comparison, proposed 
Reliability Standard PRC-027-1 explains that a short-circuit study is 
``an analysis of an electrical network that determines the magnitude of 
the currents flowing in the network during an electrical fault . . . 
[and] are used as the basis for protection device coordination 
studies.'' \21\ Therefore, while short-circuit studies are inputs to 
protection system coordination studies, it appears that a short-circuit 
study differs in scope from a protection system coordination study. 
Based on this record, it would be incorrect to conclude that proposed 
Reliability Standard PRC-027-1, Requirement R2, Options 1 and 2 afford 
the same level of protection system coordination because the former 
requires a protection system coordination study while the latter does 
not.
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    \20\ NERC Petition, Exhibit A-3, Proposed Definitions. This 
definition is consistent with the definition of coordination of 
protection in IEEE Std. C37.113-1999 (stating that the ``process of 
choosing settings or time delay characteristics of protective 
devices, such that operation of the devices will occur in a 
specified order to minimize customer service interruption and power 
system isolation due to a power system disturbance'').
    \21\ Proposed Reliability Standard PRC-027-1, Supplemental 
Material at 8.
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    17. While we generally support permitting flexibility in the 
Reliability Standards to achieve required performance goals, the 
possibility that some bulk electric system elements may never undergo a 
protection system coordination study raises reliability concerns. In 
past serious Bulk-Power System events, mis-coordination was a 
contributing factor to misoperations and outages. For example, the 
Arizona Southern California September 8, 2011 Outage Report identified 
an instance

[[Page 56189]]

where a transmission owner did not perform a protection system 
coordination study prior to the implementation of a protection 
system.\22\ The 2011 Outage Report stated that this omission negatively 
affected the reliable operation of the Bulk-Power System during the 
2011 event.\23\
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    \22\ Arizona Southern California September 8, 2011 Outage Report 
at 101-103, https://www.ferc.gov/legal/staff-reports/04-27-2012-ferc-nerc-report.pdf.
    \23\ Id. at 100-102.
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    18. Over the past eleven years, several NERC reports have addressed 
the importance of protection system coordination to Bulk-Power System 
reliability. Proposed Reliability Standard PRC-027-1 addresses some of 
the issues raised in these reports; but without requiring an initial 
protection system coordination study, the proposed Reliability Standard 
does not address all of them. In 2006, for example, the NERC System 
Protection Control Task Force assessed Reliability Standard PRC-
001.\24\ The report recommended requiring the coordination of all 
existing protection systems.\25\
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    \24\ NERC SPCTF Assessment of Standard PRC-001-0--System 
Protection Coordination (2006), http://www.nerc.com/pa/Stand/Project200706SystemProtectionCoordinationDL/NERC_SPCTF_Assessment_of_Standard_PRC.pdf.
    \25\ Id. at 3-4.
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    19. In 2009, in a letter from the NERC President to the NERC Board 
of Trustees and stakeholders, NERC identified generation and 
transmission mis-coordination as responsible for 30 percent of the 
misoperations that occurred between 2005 and 2008.\26\ The 2009 letter 
stated that mis-coordination between generation and transmission 
protection systems ``has caused two significant system disturbances in 
the past two years, and resulted in the unnecessary loss of generation 
during seven additional disturbances in that timeframe.'' \27\ The 
letter explained that the 2009 NERC System Protection Initiative would 
initially focus on the area of protection system coordination.\28\
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    \26\ NERC Letter from Rick Sergel, NERC President, Regarding 
System Protection Initiative at Figure 2 (April 24, 2009).
    \27\ Id. at 1.
    \28\ Id. at 1-2.
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    20. In 2013, NERC issued a Misoperations Report prepared by the 
Protection System Misoperations Task Force.\29\ The Misoperations 
Report identified ``ways to potentially reduce the amount of future 
misoperations'' and concluded that ``[m]isoperations due to setting 
errors can potentially be reduced.'' \30\ The identified techniques to 
reduce incorrect settings, included: Peer reviews, increased training, 
more extensive fault studies, standard templates for setting standard 
schemes using complex relays, and periodic review of existing settings 
when there is a change in system topography.\31\ In the 
ReliabilityFirst region, NERC identified a category of misoperations 
caused by ``Engineering/Design Issues,'' which specifically included 
setting mis-coordination.\32\ This category of misoperations was one of 
the three most common causes of misoperations for above 200 kV 
facilities within the ReliabilityFirst region.\33\ The positive impact 
on Bulk-Power System reliability of reducing misoperations because of 
``Incorrect setting/logic/design errors'' is found in NERC's 2015 
Analysis of System Protection Misoperations:
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    \29\ NERC Misoperations Report (2013), http://www.nerc.com/comm/PC/Protection%20System%20Misoperations%20Task%20Force%20PSMTF%202/PSMTF_Report.pdf.
    \30\ Id. at 3.
    \31\ Id.
    \32\ Id. at 14-15. The 2013 Misoperations Report elaborated that 
the ``Engineering/Design Issues'' category included:
    Incorrect short circuit values and coordination errors. The 
incorrect short circuit values included outdated or incorrect data 
used to calculate relay settings. The coordination errors in these 
cases all involved pilot protection either of insufficient carrier 
blocking trip delays or of improper choice of ground pickup values 
used in a blocking scheme. Id. at 15.
    \33\ Id. at 14.

    The State of Reliability 2015 report found that protection 
system misoperations continued to be a significant contributor to 
automatic transmission outage severity. In general, transmission 
system events with protection system misoperations were more 
impactful than other transmission events. They were also a 
significant contributor to transmission outage severity, indicating 
that a reduction in protection system misoperations would lead to an 
improvement in system reliability.\34\
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    \34\ NERC, Analysis of System Protection Misoperations at 1 
(Dec. 2015) (citations omitted), http://www.nerc.com/pa/RAPA/PA/Performance%20Analysis%20DL/2015_Analysis_of_System_Protection_Misoperations_Final.pdf (finding 
that 31 percent of all misoperations were due to ``Incorrect 
setting/logic/design errors'').

    21. In 2014, a NERC ``lessons learned'' document on ``Generation 
Relaying--Underfrequency Protection Coordination'' identified a 2014 
incident where underfrequency relay trip settings were installed on the 
system unnecessarily and were not coordinated with a generator's relay 
trip setting.\35\ The document explained that ``[u]nintended generator 
tripping during an underfrequency event can exacerbate the condition.'' 
\36\ The document also stated that ``generator relay protection should 
be coordinated with all auxiliary power system relaying with specific 
regard to time-delay settings'' in order to ensure reliable generator 
operation.\37\
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    \35\ NERC, Lesson Learned, Generation Relaying--Underfrequency 
Protection Coordination (2014), http://www.nerc.com/pa/rrm/ea/Lessons%20Learned%20Document%20Library/LL20140601_Generation_Relaying_Underfrequency_Protection_Coordination_final.pdf.
    \36\ Id.
    \37\ Id.
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    22. The 2016 State of Reliability Report noted that while 
protection system misoperations declined in 2015, misoperations showed 
a ``statistically significant positive correlation with transmission 
outage severity and show[ed] a higher relative transmission risk.'' 
\38\ Misoperations showed the strongest correlation of the factors 
considered. In addition, the 2016 State of Reliability Report 
identified that ``over 40 percent of the incorrect setting/logic/design 
misoperations were due to the miss coordination [sic] of ground 
overcurrent settings'' found by ERCOT.\39\
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    \38\ 2016 State of Reliability Report at 17, http://www.nerc.com/pa/RAPA/Pages/default.aspx.
    \39\ Id. at 166.
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    23. The 2017 State of Reliability Report recognized the 
significance of protection system misoperations to Bulk-Power System 
reliability by observing that ``[p]rotection system misoperations 
should remain an area of focus as it continues to be one of the largest 
contributors to the severity of transmission outages.'' \40\
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    \40\ 2017 State of Reliability Report at 2.
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    24. For the reasons discussed above, we propose to direct that NERC 
develop modifications to proposed Reliability Standard PRC-027-1 to 
address our concern by requiring that applicable entities perform an 
initial protection coordination study under Requirement R2, Option 2. 
We propose that applicable entities would have six years from the 
effective date of a modified Reliability Standard to complete the 
analysis. An applicable entity could use pre-existing protection system 
coordination studies to satisfy the proposed requirement provided it 
was reasonable (i.e., no intervening system changes that would render 
the earlier work obsolete). After conducting the initial protection 
system coordination study, subsequent protection system coordination 
studies would only be required when an applicable entity is confronted 
with 15 percent or greater fault current deviations from the prior 
baseline study amounts, as currently proposed in Reliability Standard 
PRC-027-1, Requirement R2, Option 2. We seek comments on this proposal.
    25. Separately, we seek comment from NERC and other interested 
entities explaining the technical basis for

[[Page 56190]]

employing a 15 percent deviation threshold in proposed Reliability 
Standard PRC-027-1, Requirement R2, Option 2. We seek to better 
understand the basis for this threshold to ensure an adequate record in 
the proceeding on this matter.

III. Information Collection Statement

    26. The collection of information addressed 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.\41\ OMB's regulations require approval of certain information 
collection requirements imposed by agency rules.\42\ 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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    \41\ 44 U.S.C. 3507(d).
    \42\ 5 CFR 1320.11.
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    27. The Commission will submit the information collection 
requirement to OMB for its final review and approval. We solicit public 
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.
    28. The information collection requirements in this Notice of 
Proposed Rulemaking in Docket No. RM16-22-000 are associated with FERC-
725A,\43\ FERC-725G6,\44\ and FERC-725Y, as discussed below.
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    \43\ FERC-725A (OMB Control No. 1902-0244) currently includes 
the information collection requirements associated with Reliability 
Standard PRC-001-1.1(ii), which is proposed for retirement. Only one 
item per OMB Control No. may be pending OMB review at a time, and an 
unrelated item affecting FERC-725A is pending OMB review. We are 
providing estimates of the burden reduction related to FERC-725A for 
review and comment. However, to submit this Notice of Proposed 
Rulemaking timely to OMB, the Commission is being conservative and 
not reducing the burden estimates associated with FERC-725A at this 
time.
    \44\ The information collection requirements related to proposed 
Reliability Standard PRC-027-1 would normally be included in FERC-
725G (OMB Control No. 1902-0252). However, only one item per OMB 
Control No. may be pending OMB review at a time, and an unrelated 
item affecting FERC-725G is pending OMB review. For this Notice of 
Proposed Rulemaking and the related submittal to OMB, we use a 
placeholder information collection no. of FERC-725G6.
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    29. Public Reporting Burden: The number of respondents below is 
based on an examination of the NERC compliance registry on April 7, 
2017, for transmission owners, generator owners, generator operators, 
and distribution providers within the United States and an estimate of 
how many entities from that registry will be affected by the 
Reliability Standards proposed for adoption and implementation. At the 
time of Commission review of proposed Reliability Standards PRC-027-1 
and PER-006-1, 334 transmission owners, 913 generator owners, 875 
generator operators, and 365 distribution providers in the United 
States were registered in the NERC compliance registry. However, under 
NERC's compliance registration program, entities may be registered for 
multiple functions, so these numbers incorporate some double counting. 
We note that many generation sites share a common generator owner or 
generator operator. The following table provides the estimated proposed 
annual burden and cost related to information collection requirements 
in this Notice of Proposed Rulemaking.\45\
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    \45\ TO = transmission owner; TOP = transmission operator; GO = 
generator owner; GOP = generator operator; DP = distribution 
provider; and BA = balancing authority.

                             Proposed Changes in the NOPR in Docket No. RM16-22-000
----------------------------------------------------------------------------------------------------------------
                                                  Annual
                                                 number of   Total number    Average burden      Annual burden
    Respondent category and        Number of     responses     of annual     hours and  cost    hours  and total
        requirement \46\          respondents       per        responses    per response \47\     annual cost
                                                respondent                                       (rounded) \48\
                                          (1)           (2)   (1) * (2) =  (4)...............  (3) * (4) = (5)
                                                                      (3)
----------------------------------------------------------------------------------------------------------------
                       FERC-725G6 (Covering Proposed Reliability Standard PRC-027-1) \49\
----------------------------------------------------------------------------------------------------------------
TO; Reporting Reqs. R1, R2, &             334             1           334  60 hrs.; $3,941.40  20,040 hrs.;
 R3.                                                                                            $1,316,428.
TO; Recordkeeping Reqs.........           334             1           334  40 hrs.; $1,565.60  13,360 hrs.;
                                                                                                $522,910.
GO; Reporting Reqs. R1, R2, &             913             1           913  10 hrs.; $656.90..  9,130 hrs.;
 R3.                                                                                            $599,750.
GO; Recordkeeping Reqs.........           913             1           913  10 hrs.; $391.40..  9,130 hrs.;
                                                                                                $357,348.
DP; Reporting Reqs R1, R2, & R3           365             1           365  10 hrs.; $656.90..  3,650 hrs.;
                                                                                                $239,769.
DP; Recordkeeping Reqs.........           365             1           365  10 hrs.; $391.40..  3,650 hrs.;
                                                                                                $142,861.
                                                                                              ------------------
    Sub-Total for Reporting      ............  ............  ............  ..................  32,820 hrs.;
     Reqs. for FERC-725G6.                                                                      $2,155,947.
    Sub-Total for Recordkeeping  ............  ............  ............  ..................  26,140 hrs.;
     Reqs. for FERC-725G6.                                                                      $1,023,119.
                                                                                              ------------------
        Total Proposed Increase  ............  ............  ............  ..................  58,960 hrs.;
         for FERC-725G6.                                                                        $3,179,066.
----------------------------------------------------------------------------------------------------------------
                          FERC-725Y (Covering Proposed Reliability Standard PER-006-1)
----------------------------------------------------------------------------------------------------------------
GOP; Reporting Req. R1.........           875             1           875  5 hrs.; $328.45...  4,375 hrs.;
                                                                                                $287,394.
GOP; Recordkeeping Req.........           875             1           875  10 hrs.; $391.40..  8,750 hrs.;
                                                                                                $342,475.
Total Proposed Increase for      ............  ............  ............  ..................  13,125 hrs.;
 FERC-725Y.                                                                                     $629,869.
----------------------------------------------------------------------------------------------------------------
         Reductions to FERC-725A (Covering Proposed Retirement of Reliability Standard PRC-001-1.1) \50\
----------------------------------------------------------------------------------------------------------------
GOP; Reporting Req.............           875             1           875  40 hrs.; $2,627.60  35,000 hrs.;
                                                                                                $2,299,150.
GOP; Recordkeeping Req.........           875             1           875  50 hrs.; $1,957.00  43,750 hrs.;
                                                                                                $1,712,375.

[[Page 56191]]

 
TOP; Reporting Req.............           177             1           177  60 hrs.; $3,941.40  10,620 hrs.;
                                                                                                $697,628.
TOP; Recordkeeping Req.........           177             1           177  70 hrs.; $2,739.80  12,390 hrs.;
                                                                                                $484,945.
BA; Reporting Req..............            99             1            99  32 hrs.; $2,102.08  3,168 hrs.;
                                                                                                $208,106.
BA; Recordkeeping Req..........            99             1            99  20 hrs.; $782.80..  1,980 hrs.;
                                                                                                $77,497.
    Reduction Sub-Total          ............  ............  ............  ..................  48,788 hrs.;
     Reporting Reqs. for FERC-                                                                  $3,204,884.
     725A.
                                                                                              ------------------
    Reduction Sub-Total          ............  ............  ............  ..................  58,120 hrs.;
     Recordkeeping Reqs. for                                                                    $2,274,817.
     FERC-725A.
                                                                                              ------------------
    Reduction, Sub-Total for     ............  ............  ............  ..................  106,908 hrs.;
     FERC-725A.                                                                                 $5,479,701
                                                                                                (reduction).
                                                                                              ------------------
        NET TOTAL REDUCTION FOR  ............  ............  ............  ..................  34,823 hrs.;
         PROPOSED CHANGES IN                                                                    $1,670,766
         NOPR IN RM16-22-000.                                                                   (reduction).
----------------------------------------------------------------------------------------------------------------

    Titles: FERC-725G6 (Mandatory Reliability Standard PRC-027-1) and 
FERC-725Y (Mandatory Reliability Standards: Operations Personnel 
Training (PER-005-2 and PER-006-1).
---------------------------------------------------------------------------

    \46\ For each Reliability Standard, the Measure shows the 
acceptable evidence for the associated Reporting Requirement, and 
the Compliance section details the related Recordkeeping 
Requirement.
    \47\ Based on data from the Bureau of Labor Statistics, the 
average hourly cost (wages plus benefits) is $65.69/hour for an 
engineer, and $39.14/hour for a record clerk. The hourly cost for an 
engineer is used for reporting requirements; the hourly cost for a 
record clerk is used for recordkeeping requirements.
    \48\ For display purposes, the cost figures in column 5 have 
been rounded.
    \49\ Some of the reporting requirements are required at least 
every six calendar years. In this table, the Commission assumes that 
respondents might work on some of their elements each year; the 
annual burden estimate shown is one sixth of the burden associated 
with one complete six-year cycle. For example, for each transmission 
owner: (a) the annual reporting burden associated with Requirements 
R1, R2, and R3 is shown as 60 hours per year, and (b) the burden for 
the six-year cycle would be six times that, or a total of 360 hours.
    \50\ The estimates for average annual burden hours per response 
are based on Order No. 693, FERC Stats. & Regs. ] 31,242 at PP 1906, 
1907. The numbers of respondents and estimated hourly costs are 
based on current figures.
---------------------------------------------------------------------------

    Action: Revision to existing collections and proposed new 
information collection.
    OMB Control Nos.: To be determined (FERC-725G6) \51\ and 1902-0279 
(FERC-725Y).
---------------------------------------------------------------------------

    \51\ OMB will assign a Control No. when it issues a decision.
---------------------------------------------------------------------------

    Respondents: Business or other for profit, and not for profit 
institutions.
    Frequency of Responses: Annual recordkeeping and reporting 
requirements, with some reporting requirements being at least once 
every six years.
    Necessity of the Information: Proposed Reliability Standards PRC-
027-1 and PER-006-1 set forth requirements for coordination of 
protection systems and personnel training on specific topics essential 
to reliability. The Commission proposes to approve proposed Reliability 
Standards PRC-027-1 and PER-006-1, which will replace Commission-
approved Reliability Standard PRC-001-1.1(ii). The proposed Reliability 
Standards PRC-027-1 and PER-006-1 improve upon the existing Reliability 
Standard PRC-001-1.1(ii) because the proposed Reliability Standards 
assign responsibilities to entities with more appropriate resources and 
skill sets to conduct studies required to coordinate protection 
systems. The proposed Reliability Standards also provide additional 
clarity to the applicable entities.
    Internal review: The Commission has assured itself, by means of its 
internal review, that there is specific, objective support for the 
burden estimates associated with the information requirements.
    30. Interested persons may obtain information on the reporting 
requirements by contacting the Federal Energy Regulatory Commission, 
Office of the Executive Director, 888 First Street NE., Washington, DC 
20426 [Attention: Ellen Brown, email: [email protected], phone: 
(202) 502-8663, fax: (202) 273-0873].
    31. Comments concerning the information collection proposed in this 
Notice of Proposed Rulemaking and the associated burden estimates 
should be sent to the Commission in this docket 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: 
[email protected]. Please refer to OMB Control Nos. to be 
determined (FERC-725G6) and 1902-0279 (FERC-725Y) in your submittal.

IV. Environmental Analysis

    32. 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.\52\ The 
action proposed here falls within the categorical exclusion in the 
Commission's regulations for rules that are clarifying, corrective or 
procedural, for information gathering, analysis, and dissemination.\53\
---------------------------------------------------------------------------

    \52\ Regulations Implementing the National Environmental Policy 
Act of 1969, Order No. 486, FERC Stats. & Regs. ] 30,783 (1987) 
(cross-referenced at 41 FERC ] 61,284).
    \53\ 18 CFR 380.4(a)(2)(ii).
---------------------------------------------------------------------------

V. Regulatory Flexibility Act

    33. The Regulatory Flexibility Act of 1980 (RFA) generally requires 
a description and analysis of proposed rules that will have significant 
economic impact on a substantial number of small entities.\54\ The 
Small Business Administration (SBA) defines

[[Page 56192]]

which utilities are small businesses based on the number of employees 
that a utility and its affiliates employ.\55\
---------------------------------------------------------------------------

    \54\ 5 U.S.C. 601-612.
    \55\ 13 CFR 121.201, Subsector 221.
---------------------------------------------------------------------------

    34. The proposed Reliability Standard PRC-027-1 (included in FERC-
725G6) will apply to approximately 1,612 entities (334 transmission 
owners, 913 generator owners, and 365 distribution providers) in the 
United States.\56\ Pursuant to SBA regulations, the employment 
threshold for transmission is 500 employees, for generator owners is 
between 250 and 750 employees (depending on the fuel source), and for 
distribution providers is 1,000 employees. We estimate that the annual 
cost for each entity will be $1,048 for each generator owner and 
distribution provider and $5,507 for each transmission owner.
---------------------------------------------------------------------------

    \56\ Many respondents serve multiple roles in the NERC 
compliance registry, so there is likely double counting in the 
estimates.
---------------------------------------------------------------------------

    35. The proposed Reliability Standard PER-006-1 (included in FERC-
725Y) will apply to approximately 875 generator operators in the United 
States. Pursuant to SBA regulations the employment threshold for 
generator operators is between 250 and 750 employees (depending on the 
fuel source). We estimate that the annual cost for each generator 
operator will be $719.
    36. In addition, this Notice of Proposed Rulemaking proposes the 
retirement of Reliability Standard PRC-001-1.1(ii) (included in FERC-
725A). That retirement would decrease the annual estimated cost for 875 
generator operators by $4,585 each, for 177 transmission operators by 
$6,681 each, and for 99 balancing authorities by $2,885 each. For the 
generator operators affected by this retirement and the proposed 
Reliability Standard PER-006-1, the net annual effect would be a 
decrease of $3,866 each. We estimate the net annual cost of this Notice 
of Proposed Rulemaking would vary, by type of entity, from an annual 
decrease of $6,681 (for each transmission operator) to an annual 
increase of $5,507 (for each transmission owner). We view this as a 
minimal economic impact for each entity. Accordingly, we certify that 
the proposed Reliability Standards PRC-027-1 and PER-006-1 and 
retirement of Reliability Standard PRC-001-1.1 (ii) will not have a 
significant economic impact on a substantial number of small entities.

VI. Comment Procedures

    37. 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 29, 2018. Comments must refer to 
Docket No. RM16-22-000, and must include the commenter's name, the 
organization they represent, if applicable, and their address in their 
comments.
    38. 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.
    39. 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.
    40. 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

    41. 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.
    42. 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 of this document, excluding the last three digits, in 
the docket number field.
    43. 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 
[email protected], or the Public Reference Room at (202) 502-
8371, TTY (202) 502-8659. Email the Public Reference Room at 
[email protected].

    By direction of the Commission.

    Issued November 16, 2017.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2017-25586 Filed 11-27-17; 8:45 am]
 BILLING CODE 6717-01-P


