[Federal Register Volume 85, Number 211 (Friday, October 30, 2020)]
[Proposed Rules]
[Pages 68809-68816]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-23297]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

18 CFR Part 40

[Docket No. RM19-20-000]


WECC Regional Reliability Standard BAL-002-WECC-3 (Contingency 
Reserve)

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 regional Reliability Standard BAL-002-WECC-3 (Contingency 
Reserve) submitted jointly by the North American Electric Reliability 
Corporation (NERC), the Commission-certified Electric Reliability 
Organization, and the Western Electricity Coordinating Council (WECC). 
In addition, the Commission proposes to direct NERC and WECC to submit 
an informational filing.

DATES: Comments are due December 29, 2020.

ADDRESSES: Comments, identified by docket number RM19-20, 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 via United States Postal Service 
(USPS) 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: 
Susan Morris (Technical Information), Office of Electric Reliability, 
Division of Operations and Planning Standards, Federal Energy 
Regulatory Commission, 888 First Street NE, Washington, DC 20426, 
Telephone: (202) 502-6803, Susan.Morris@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. Pursuant to section 215(d)(2) of the Federal Power Act (FPA), 
the Commission proposes to approve regional Reliability Standard BAL-
002-WECC-3 (Contingency Reserve). The North American Electric 
Reliability Corporation (NERC), the Commission-certified Electric 
Reliability Organization (ERO), and Western Electricity Coordinating 
Council (WECC) jointly submitted the proposed regional Reliability 
Standard to the Commission for approval.
    2. Proposed regional Reliability Standard BAL-002-WECC-3 applies to 
balancing authorities and reserve sharing groups in the WECC Region, 
and it specifies the quantity and types of contingency reserve required 
to ensure reliability under normal and abnormal conditions.\1\ The 
principal difference between the currently-effective regional 
Reliability Standard BAL-002-WECC-2a and the proposed version is the 
elimination of Requirement R2 from the currently-effective version. As 
discussed in the joint petition, Requirement R2 is redundant in the 
light of the implementation of the continent-wide Reliability Standard 
BAL-003-1.1 (Frequency Response and Frequency Bias Setting). Given the 
requirements of the continent-wide Reliability Standard BAL-003-1.1 and 
the results of field tests conducted by NERC and WECC assessing the 
potential impacts of the retirement of Reliability Standard BAL-002-
WECC-2a Requirement R2 on contingency reserves in the Western 
Interconnection, the Commission proposes to approve regional 
Reliability Standard BAL-002-WECC-3 and retire the currently-effective 
version of the regional Reliability Standard.
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    \1\ Reserve sharing group is defined in the Glossary of Terms 
Used in NERC Reliability Standards (NERC Glossary) as, ``[a] group 
whose members consist of two or more Balancing Authorities that 
collectively maintain, allocate, and supply operating reserves 
required for each Balancing Authority's use in recovering from 
contingencies within the group. . . .''
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    3. In addition, although the Commission proposes to approve 
regional Reliability Standard BAL-002-WECC-3, the Commission believes 
it appropriate in this case to monitor the potential impacts of 
retiring Requirement R2 on the adequacy of contingency reserves in the 
Western Interconnection. Therefore, the Commission proposes to direct 
NERC and WECC to submit an informational filing 27 months following 
implementation of regional Reliability Standard BAL-002-WECC-3 that 
addresses the adequacy of contingency reserves in the Western 
Interconnection.

[[Page 68810]]

I. Background

A. Section 215 and Regional Reliability Standards

    4. Section 215 of the FPA requires a Commission-certified ERO to 
develop mandatory and enforceable Reliability Standards that are 
subject to Commission review and approval.\2\ Once approved, the 
Reliability Standards may be enforced by NERC, subject to Commission 
oversight, or by the Commission independently.\3\
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    \2\ 16 U.S.C. 824o.
    \3\ 16 U.S.C. 824o(e).
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    5. A Regional Entity may develop a regional Reliability Standard 
for Commission approval to be effective in that region only.\4\ In 
Order No. 672, the Commission stated that:
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    \4\ 16 U.S.C. 824o(e)(4). A Regional Entity is an entity that 
has been approved by the Commission to enforce Reliability Standards 
under delegated authority from the ERO. See 16 U.S.C. 824o(a)(7) and 
(e)(4). On April 19, 2007, the Commission accepted delegation 
agreements between NERC and eight Regional Entities, including WECC. 
North American Electric Reliability Council., 119 FERC ] 61,060, 
order on reh'g, 120 FERC ] 61,260 (2007).

    As a general matter, we will accept the following two types of 
regional differences, provided they are otherwise just, reasonable, 
not unduly discriminatory or preferential and in the public 
interest, as required under the statute: (1) A regional difference 
that is more stringent than the continent-wide Reliability Standard, 
including a regional difference that addresses matters that the 
continent-wide Reliability Standard does not; and (2) a regional 
Reliability Standard that is necessitated by a physical difference 
in the Bulk-Power System.\5\
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    \5\ Rules Concerning Certification of the Electric Reliability 
Organization; and Procedures for the Establishment, Approval and 
Enforcement of Electric Reliability Standards, Order No. 672, 114 
FERC ] 61,104, at P 291, order on reh'g, Order No. 672-A, 114 FERC ] 
61,328 (2006).

    While a Regional Entity may propose regional Reliability Standards 
that address specific, unique regional conditions and circumstances, 
such regional Reliability Standards can be retired if those 
justifications are no longer relevant. Accordingly, the Commission may 
approve retirement of a more stringent regional requirement ``if the 
Regional Entity demonstrates that the continent-wide Reliability 
Standard is sufficient to ensure the reliability of that region.'' \6\
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    \6\ Version One Regional Reliability Standard for Resource and 
Demand Balancing, Order No. 740, 133 FERC ] 61,063, at P 30 (2010).
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B. Regional Reliability Standard BAL-002-WECC-2

    6. On November 21, 2013, the Commission approved regional 
Reliability Standard BAL-002-WECC-2 specifying the quantity and types 
of contingency reserve required to ensure reliability under normal and 
abnormal conditions.\7\ Regional Reliability Standard BAL-002-WECC-2 
was more stringent than the continent-wide Reliability Standard BAL-
002-1 because the regional Reliability Standard required applicable 
entities to restore contingency reserve within 60 minutes following the 
Disturbance Recovery Period while the continent-wide Reliability 
Standard only required restoration of contingency reserve within 90 
minutes.\8\ Requirement R2 of the regional Reliability Standard 
provides that balancing authorities and reserve sharing groups in the 
WECC Region ``shall maintain at least half of its minimum amount of 
Contingency Reserve identified in Requirement R1, as Operating 
Reserve--Spinning.'' In addition, the method for calculating minimum 
contingency reserve in the regional Reliability Standard was more 
stringent than Requirement R3.1 in Reliability Standard BAL-002-1 
because it required minimum contingency reserve levels that will be at 
least equal to the Reliability Standard minimum (i.e., equal to the 
most severe single contingency) and more often will be greater.\9\
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    \7\ Regional Reliability Standard BAL-002-WECC-2--Contingency 
Reserve, Order No. 789, 145 FERC ] 61,141 (2013). On January 24, 
2017, by delegated letter order, the Commission approved regional 
Reliability Standard BAL-002-WECC-2a, which added an interpretation 
to Requirement R2. North American Electric Reliability Corporation, 
Docket. No. RD17-3-000 (Jan. 24, 2017) (delegated order).
    \8\ Reliability Standard BAL-002-3, approved on September 25, 
2018, is the current version of the continent-wide Reliability 
Standard.
    \9\ Order No. 789, 145 FERC ] 61,141 at P 26.
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C. NERC Reliability Standard BAL-003-1

    7. On January 16, 2014, the Commission approved continent-wide 
Reliability Standard BAL-003-1 (Frequency Response and Frequency Bias 
Setting).\10\ The Commission explained that Reliability Standard BAL-
003-1 defines the amount of frequency response needed from balancing 
authorities to maintain Interconnection frequency within predefined 
bounds and includes requirements for the measurement and provision of 
frequency response. In particular, Order No. 794 determined that 
Reliability Standard BAL-003-1 ``establishes a minimum Frequency 
Response Obligation for each balancing authority; provides a uniform 
calculation of frequency response; establishes Frequency Bias Settings 
that are closer to actual balancing authority frequency response; and 
encourages coordinated automatic generation control operation.'' \11\
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    \10\ Frequency Response and Frequency Bias Setting Reliability 
Standard, Order No. 794, 146 FERC ] 61,024 (2014). Reliability 
Standard BAL-003-1.1 was subsequently approved by delegated letter 
order on November 13, 2015 and contained non-substantive changes 
over the prior version, Reliability Standard BAL-003-1. North 
American Electric Reliability Corp., Docket No. RD15-6-000 (Nov. 13, 
2015) (delegated order).
    \11\ Order No. 794, 146 FERC ] 61,024 at P 22.
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D. NERC and WECC Joint Petition

    8. On September 6, 2019, NERC and WECC submitted a joint petition 
seeking approval of proposed regional Reliability Standard BAL-002-
WECC-3, the associated violation risk factors and violation severity 
levels, effective date, and implementation plan. The joint petition 
also requests retirement of the currently-effective WECC regional 
Reliability Standard BAL-002-WECC-2a.
    9. In the joint petition, NERC and WECC explain that principal 
modification in the proposed regional Reliability Standard is the 
retirement of Requirement R2 in currently-effective regional 
Reliability Standard BAL-002-WECC-2a. NERC and WECC maintain that the 
regional 50% minimum operating reserve--spinning requirement in 
Requirement R2 was carried forward from the Reliability Management 
System of WECC's predecessor, the Western Systems Coordinating Council.
    10. NERC and WECC contend that continent-wide Reliability Standard 
BAL-003-1.1 ``helps ensure that sufficient Frequency Response is 
provided to maintain Interconnection frequency in support of the 
reliable operation of the Interconnection,'' and therefore renders 
regional Reliability Standard BAL-002-WECC-2a, Requirement R2 
``redundant and no longer needed for reliability in the Western 
Interconnection.'' \12\ NERC and WECC assert that Reliability Standard 
BAL-003-1.1 ``addresses the same frequency response components covered 
in currently effective Regional Reliability Standard BAL-002-WECC-2a 
Requirement R2 but in a results-based manner.'' \13\
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    \12\ Joint Petition at 4.
    \13\ Id. at 13.
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    11. In particular, NERC and WECC state that Reliability Standard 
BAL-003-1.1, Requirement R1 requires that balancing authorities (or 
groups of balancing authorities known as frequency response sharing 
groups) ``achieve an annual Frequency Response Measure that is equal to 
or more negative than its Frequency Response Obligation to ensure that 
it is providing sufficient Frequency Response.'' \14\

[[Page 68811]]

Moreover, NERC and WECC explain that retention of the regional 50% 
minimum operating reserve--spinning requirement, alongside the 
continent-wide frequency response requirement, could lead to confusion 
and the procurement of more spinning reserves than necessary for 
entities to meet their frequency response obligation, thereby 
increasing costs without providing additional reliability benefits.\15\
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    \14\ Id. at 4.
    \15\ Id. at 12-13.
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    12. NERC and WECC also state that to evaluate the potential 
reliability impacts of retiring Requirement R2, WECC conducted a field 
test from May 1, 2017 through April 30, 2018, obtaining data from each 
balancing authority and each reserve sharing group.\16\ NERC and WECC 
explain that the field test measured the effect of retiring Requirement 
R2 using two metrics: Disturbance control standard (DCS) performance 
and frequency response in the Western Interconnection.\17\ The first 
metric measured, for each reportable DCS event,\18\ whether an entity 
was unable to meet the DCS recovery period. The second metric monitored 
system performance for any loss of resources greater than 700 MW and 
for any adverse effects on frequency response.\19\
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    \16\ Id. at 13. A report containing the results of the field 
test is appended to the joint petition as Exhibit C. Joint Petition, 
Exhibit C (Field Test Results, WECC-0115 BAL-002-WECC-2a Request to 
Retire Requirement R2).
    \17\ Disturbance control standard is defined in the NERC 
Glossary as, ``[t]he reliability standard that sets the time limit 
following a Disturbance within which a Balancing Authority must 
return its Area Control Error to within a specified range.'' See 
also Joint Petition, Exhibit C at 5.
    \18\ We understand the reference to ``reportable DCS event'' in 
the petition corresponds to the NERC Glossary term ``reportable 
balancing contingency event'' that appears in Reliability Standard 
BAL-002-3. The NERC Glossary defines reportable balancing 
contingency event as: ``[a]ny Balancing Contingency Event occurring 
within a one-minute interval of an initial sudden decline in ACE 
based on EMS scan rate data that results in a loss of MW output less 
than or equal to the Most Severe Single Contingency, and greater 
than or equal to the lesser amount of: (i) 80% of the Most Severe 
Single Contingency, or (ii) the amount listed below for the 
applicable Interconnection. Prior to any given calendar quarter, the 
80% threshold may be reduced by the responsible entity upon written 
notification to the Regional Entity. (Eastern Interconnection--900 
MW, Western Interconnection--500 MW, ERCOT--800 MW, and Quebec--500 
MW).''
    \19\ Joint Petition at 13-14.
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    13. NERC and WECC assert that ``analysis of the data demonstrates 
that all 66 DCS events occurring during the field test period had a 
100% pass rate, showing no degradation to DCS performance. Entities 
carried and deployed enough reserves for post disturbance Area Control 
Area recovery.'' \20\ NERC and WECC also note that the 2018 NERC State 
of Reliability Report indicates that frequency response performance 
``did not degrade in the Western Interconnection during the field test 
period.'' \21\
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    \20\ Id. at 14.
    \21\ Id. at 15.
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    14. Aside from eliminating Requirement R2, NERC and WECC assert 
that proposed regional Reliability Standard BAL-002-WECC-3 retains the 
other existing requirements because they are needed to maintain 
reliability and ``continue[ ] to represent a more stringent set of 
requirements for entities in the Western Interconnection than those 
found in the continent-wide disturbance control standard, Reliability 
Standard BAL-002-3.'' \22\
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    \22\ Id. at 10.
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E. Data Request and Response

    15. On February 18, 2020, the Director of the Office of Electric 
Reliability issued a data request to NERC and WECC seeking: (1) Data 
for the remainder of the field test term not provided in the joint 
petition (i.e., from May 1, 2018 to September 30, 2019); and (2) 
supporting data for NERC frequency response metric (Metric M-4) as it 
pertains to the Western Interconnection during the field test period 
(i.e., from May 1, 2017 to September 30, 2019).
    16. On May 18, 2020, NERC and WECC submitted data in response to 
the February 18 data request.

II. Discussion

    17. Pursuant to FPA section 215(d)(2), the Commission proposes to 
approve WECC regional Reliability Standard BAL-002-WECC-3 as just, 
reasonable, not unduly discriminatory or preferential, and in the 
public interest. For applicable entities in the WECC Region, proposed 
regional Reliability Standard BAL-002-WECC-3 eliminates the requirement 
in the currently-effective version that at least half of the minimum 
amount of contingency reserve shall be Operating Reserve--Spinning that 
meets certain reserve characteristics. The justification set forth in 
the joint petition taken together with the field test results support 
NERC and WECC's position that the continent-wide Reliability Standard 
BAL-003-1.1 renders the existing 50% Operating Reserve--Spinning 
obligation redundant. Additionally, proposed regional Reliability 
Standard BAL-002-WECC-3, even without Requirement R2, will continue to 
provide protections beyond those contained in the continent-wide 
disturbance control Reliability Standard BAL-002-3.
    18. While we propose to approve WECC regional Reliability Standard 
BAL-002-WECC-3, unique aspects of contingency reserves in the Western 
Interconnection raise concerns about deliverability of contingency 
reserves within reserve sharing groups. Thirty-four balancing 
authorities are registered with WECC of which 32 are members of one of 
the two reserve sharing groups within WECC. The Southwest Reserve 
Sharing Group (SRSG) geographic area covers the southwest United States 
including Arizona, New Mexico, southern Nevada, parts of southern 
California including the Imperial Valley, and El Paso, Texas. The 
Northwest Power Pool (NWPP) reserve sharing group geographic area 
covers two Canadian provinces and all the states in the Western 
Interconnection except Arizona, New Mexico southern Nevada, and part of 
California. Each reserve sharing group includes member balancing 
authorities that have hydroelectric resources. These hydroelectric 
resources represent a significant share of the reserve sharing group 
contingency reserves. These resources may or may not be deliverable to 
all member balancing authorities due to transmission constraints or 
limits on the hydro system.\23\
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    \23\ The WECC operating committee raised similar issues in a 
report regarding the Northwest price spike event that occurred the 
week of March 1-4, 2019. See also, https://www.wecc.org/Reliability/PricingEvent_Paper_Final.pdf at 13: ``Reserves are calculated based 
on unit capacity and do not necessarily consider fuel availability. 
Limits on the hydro system and wind availability . . . could reduce 
actual reserve levels below the calculated and reported levels. 
Fuel-limited resources may be overcounted toward reserves as the 
full capacity of the unit may be counted without regard to the 
availability of fuel.''
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    19. We believe it is important to monitor the reliability impacts 
that the retirement of Requirement R2 may have on contingency reserves 
in the Western Interconnection. Therefore, as detailed below, the 
Commission proposes to direct that NERC and WECC submit an 
informational filing 27 months following implementation of regional 
Reliability Standard BAL-002-WECC-3. We further propose to direct that 
NERC and WECC make the Commission immediately aware of any adverse 
impacts resulting from the retirement of Requirement R2, if they become 
apparent prior to the end of the reporting period, and any corrective 
actions taken or being considered.
    20. We propose to direct that NERC and WECC submit an informational 
filing 27 months following implementation of regional Reliability 
Standard BAL-002-WECC-3 that addresses the adequacy of contingency

[[Page 68812]]

reserves in the Western Interconnection. Specifically, the report 
should provide, for an additional 24 month period after implementation 
of the standard, the following categories of data (similar to the data 
categories identified in the February 18, 2020 data request): (1) For 
any reportable DCS event, the date, time and required amount of 
contingency reserves at the time of the event, the actual amount of 
Operating Reserves--Spinning at the time of the event, and the actual 
DCS performance; (2) for events involving a loss of 700 MW or greater, 
whether it is a reportable DCS event or not, the date and time of the 
event, the name of the resource(s), and the total MW; (3) the amount of 
spinning reserve above or below 50% during non-event times on an hourly 
basis for 24 months following implementation; and (4) supporting data 
for NERC's frequency response metric (Metric M-4) as it pertains to the 
Western Interconnection.\24\
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    \24\ The informational filing report can be drafted in a similar 
manner as the field test report provided in the petition including 
all of the requested data.
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    21. In addition to the data categories identified in the February 
18 data request, we propose to direct that NERC and WECC provide: (1) 
The DCS performance--as described in request (1) in the paragraph 
above--on a balancing authority basis; and (2) the hourly amount of 
contingency reserve and the fraction of that contingency reserve that 
is classified as spinning for each hour by balancing authority (not 
reserve sharing group). We believe that this data is necessary to 
assess the amount of contingency reserves held by each balancing 
authority within a reserve sharing group since the contingency reserve 
data provided for a reserve sharing group are the aggregated sum of the 
contingency reserves of the participating balancing authorities.

III. Information Collection Statement

    22. The FERC-725E information collection requirements contained in 
this Notice of Proposed Rulemaking are subject to review by the Office 
of Management and Budget (OMB) under section 3507(d) of the Paperwork 
Reduction Act of 1995 (PRA).\25\ OMB's regulations require approval of 
certain information collection requirements imposed by agency 
rules.\26\ 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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    \25\ 44 U.S.C. 3507(d).
    \26\ 5 CFR 1320.11.
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    23. We solicit comments on the Commission's need for this 
information, whether the information will have practical utility, the 
accuracy of the burden estimates, ways to enhance the quality, utility, 
and clarity of the information to be collected or retained, and any 
suggested methods for minimizing respondents' burden, including the use 
of automated information techniques. Specifically, the Commission asks 
that any revised burden or cost estimates submitted by commenters be 
supported by sufficient detail to understand how the estimates are 
generated.
    24. Public Reporting Burden: The burden and cost estimates below 
are based on the need for applicable entities to revise documentation, 
already required by the current WECC regional Reliability Standard BAL-
002-WECC-2a,\27\ to reflect the retirement of Requirement R2 in the 
proposed WECC regional Reliability Standard BAL-002-WECC-3. Our 
estimates are based on the NERC Compliance Registry as of September 3, 
2020, which indicates that 34 balancing authorities, 2 reserve sharing 
groups, 2 reliability coordinators, 265 generator owners, 256 generator 
operators, 78 transmission owners and 47 transmission operators are 
registered within WECC.
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    \27\ BAL-002-WECC-2 is included in the OMB-approved inventory 
for FERC-725E. On November 9, 2016, NERC and WECC submitted a joint 
petition for approval of an interpretation of BAL-002-WECC-2, to be 
designated BAL-002-WECC-2a. BAL-002-WECC-2a was approved by order in 
Docket No. RD17-3-000 on January 24, 2017. The Order determined: 
``The proposed interpretation provides clarification regarding the 
types of resources that may be used to satisfy Contingency Reserve 
requirements in regional Reliability Standard BAL-002-WECC-2.'' BAL-
002-WECC-2a did not trigger the Paperwork Reduction Act and did not 
affect the burden estimate.
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    25. In addition to the changes identified in this Notice of 
Proposed Rulemaking, the Commission is adjusting burden estimates for 
the other WECC regional Reliability Standards in the FERC-725E 
information collection. These adjustments are warranted based on 
updates to the number of applicable registered entities that have 
changed due to normal industry fluctuations (e.g., companies merging or 
splitting, going into or leaving the industry, or filling more or fewer 
roles in the NERC Compliance Registry).
    26. There are several regional Reliability Standards in the WECC 
region. These regional Reliability Standards generally require entities 
to document compliance with substantive requirements, retain 
documentation, and submit reports to WECC. The following standards will 
be continuing without change.
     BAL-004-WECC-3 (Automatic Time Error Correction) requires 
balancing authorities to document that time error corrections and 
primary inadvertent interchange payback were conducted according to the 
requirements in the standard.
     FAC-501-WECC-2 (Transmission Maintenance) requires 
transmission owners with certain transmission paths to have a 
transmission maintenance and inspection plan and to document 
maintenance and inspection activities according to the plan.
     VAR-501-WECC-3.1 (Power System Stabilizer [PSS]) \28\ 
requires generator owners and operators to ensure the Western 
Interconnection is operated in a coordinated manner by establishing the 
performance criteria for WECC power system stabilizers.
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    \28\ VAR-501-WECC-3.1 was approved by order in Docket No. RD17-
7-000 on September 26, 2017. The August 18, 2017 petition requested 
Commission approval of errata to mandatory and enforceable regional 
Reliability VAR-501-WECC-3 (Power System Stabilizer). Because the 
reporting burden for VAR-501-WECC-3.1 did not increase for entities 
that operate within the Western Interconnection, FERC submitted the 
order to OMB for information only. The burden related to VAR-501-
WECC-3.1 does not differ from the burden of VAR-501-WECC-3, which is 
included in the OMB-approved inventory. VAR-501-WECC-3.1 is being 
included in this document and the Commission's submittal to OMB as 
part of FERC-725E.
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    27. The associated reporting and recordkeeping requirements 
included in the regional standards above are not being revised, and the 
Commission will be submitting a request to OMB to extend these 
requirements for three years. The Commission's request to OMB will also 
reflect the following:
     Implement the regional Reliability Standard BAL-002-WECC-3 
(addressed in this Notice of Proposed Rulemaking, Docket No. RM19-20). 
and
     Adjustments to the burden estimates due to changes in the 
NERC Compliance Registry for regional Reliability Standards BAL-002-
WECC-3 (Contingency Reserve) and IRO-006-WECC-3 (Qualified Path 
Unscheduled Flow (USF) Relief).\29\
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    \29\ IRO-006-WECC-3 was approved by order in Docket No. RD19-4-
000 on May 10, 2019. The March 6, 2019 petition states that WECC 
revised the regional Reliability Standard to clarify the purpose 
statement, replace certain defined terms, account for multiple 
reliability coordinators in the Western Interconnection, and conform 
the regional Reliability Standard to the current drafting 
conventions and template. Because the reporting burden for IRO-006-
WECC-3 did not increase for entities that operate within the Western 
Interconnection, FERC submitted the order to OMB for information 
only. The burden related to IRO-006-WECC-3 does not differ from the 
burden of IRO-006-WECC-2, which is included in the OMB-approved 
inventory. IRO-006-WECC-3 is being included in this document and the 
Commission's submittal to OMB as part of FERC-725E.

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[[Page 68813]]

    28. Changes Due to Docket No. RM19-20. The Commission estimates the 
reduction in the annual public reporting burden for the FERC-725E (due 
to the retirement of BAL-002-WECC-2a, Requirement R2) as follows:

             FERC--725E--Mandatory Reliability Standards for the Western Electric Coordinating Council, Reductions Due to Docket No. RM19-20
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                                                        Annual  number of                                                            Total annual burden
    Information collection            Number of           responses per        Total number of      Average burden hours  & cost       hours  & total
    requirements and entity          respondents           respondent             responses               \30\ per response              annual cost
                                (1).................  (2).................  (1) * (2) = (3).....  (4).............................  (3) * (4) = (5)
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Balancing Authorities Years 1   0 (no change).......  0 (no change).......  0 (no change).......  0 hrs.; $0 (no change)..........  0 hrs.; $0 (no
 and 2 \31\.                                                                                                                         change).
Balancing Authorities Year 3    34..................  1...................  34..................  1 hr.; $83.67 (reduction).......  34 hrs.; $2,844.78
 and Ongoing.                                                                                                                        (reduction).
                               -------------------------------------------------------------------------------------------------------------------------
    Sub-Total, Reduction (Due   ....................  ....................  ....................  ................................  34 hrs.; $2,844.78
     to Docket No. RM19-20) in                                                                                                       (reduction).
     Year 3 and Ongoing.
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    29. Adjustments Due to normal industry fluctuations. The Commission 
estimates the changes in the annual public reporting burden for the 
FERC-725E (due to the number of applicable registered entities) as 
follows: \32\
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    \30\ The hourly cost (for salary plus benefits) uses the figures 
from the Bureau of Labor Statistics (BLS) for three positions 
involved in the reporting and recordkeeping requirements. These 
figures include salary (based on BLS data for May 2019,  http://bls.gov/oes/current/naics2_22.htm) and benefits (based on BLS data 
for December 2019; issued March 19, 2020, http://www.bls.gov/news.release/ecec.nr0.htm) and are Manager (Code 11-0000 $97.15/
hour), Electrical Engineer (Code 17-2071 $70.19/hour), and File 
Clerk (Code 43-4071 $34.79/hour). The hourly cost for the reporting 
requirements ($83.67) is an average of the cost of a manager and 
engineer. The hourly cost for recordkeeping requirements uses the 
cost of a file clerk.
    \31\ The reduction in burden is zero for the first two years due 
to the directive in this document of Proposed Rulemaking to continue 
to report hourly contingency reserve data for 24 months.
    \32\ The number of applicable entities is based on the NERC 
Compliance Registry as of September 3, 2020.

       FERC--725E--Mandatory Reliability Standards for the Western Electric Coordinating Council, Adjustments Due to Normal Industry Fluctuations
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                  Annual  number
Information collection  requirements    Number of  respondents     of  responses   Total number     Average burden hours  &    Total annual burden hours
             and entity                                           per respondent   of responses     cost \30\ per response        & total annual cost
                                      (1).......................             (2)     (1) * (2) =  (4).......................  (3) * (4) = (5)
                                                                                             (3)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Reliability Coordinators (IRO-006-    1 (increase)..............               1               1  1 hr.; $83.67 (increase)..  1 hr.; $83.67 (increase).
 WECC-3) Reporting Requirement.
                                     -------------------------------------------------------------------------------------------------------------------
Reliability Coordinators (IRO-006-    1 (increase)..............               1               1  1 hr.; $34.79 (increase)..  1 hr.; $34.79 (increase).
 WECC-3) Record Keeping Requirement.
Reserve Sharing Groups (BAL-002-WECC- 1 (reduction).............               1               1  1 hr.; $83.67 (reduction).  1 hr.; $83.67 (reduction).
 3) Reporting Requirement.
                                     -------------------------------------------------------------------------------------------------------------------
    Sub-Total, (Net Due to            ..........................  ..............  ..............  ..........................  1 hr.; $34.79 (net
     Adjustments).                                                                                                             change).
--------------------------------------------------------------------------------------------------------------------------------------------------------

    30. Estimate of Continuing Annual Burden for Renewal: \33\ The 
Commission estimates the annual public reporting burden and cost as 
follows for FERC-725E. (This information will be submitted to OMB for 
approval.) These estimates reflect:
---------------------------------------------------------------------------

    \33\ The Commission is also removing 1746 one-time burden hours 
associated with the requirements in Docket No. RD17-5 for regional 
Reliability Standard VAR-501-WECC-3 (Power System Stabilizer [PSS]). 
The one-time burden has been completed and will now be 
administratively removed on submittal to OMB. Those hours are not 
included in the table.
---------------------------------------------------------------------------

     Reliability Standards in FERC-725E which continue and 
remain unchanged (BAL-004-WECC-3, FAC-501-WECC-2, and VAR-002-WECC-
3.1);
     Implement the regional Reliability Standard BAL-002-WECC-3 
(addressed in this Notice of Proposed Rulemaking, Docket No. RM19-20-
000); and
     Adjustments to the burden estimates for regional 
Reliability Standards BAL-002-WECC-3 (Contingency Reserve) and IRO-006-
WECC-3 (Qualified Path Unscheduled Flow (USF) Relief).

[[Page 68814]]



                                FERC--725E--Mandatory Reliability Standards for the Western Electric Coordinating Council
                                                [New and continuing information collection requirements]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                   Number of    Annual  number                    Average burden  hrs. &
            Entity                respondents    of  responses  Annual  number    cost \30\  per response    Total annual  burden  hours     Cost per
                                     \34\       per respondent   of  responses              ($)               & total  annual cost ($)    respondent ($)
                                           (1)             (2)     (1) * (2) =  (4).......................  (3) * (4) = (5).............     (5) / (1) =
                                                                           (3)                                                                       (6)
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                 Reporting Requirements
--------------------------------------------------------------------------------------------------------------------------------------------------------
Balancing Authorities Years 1               34               1              34  21 hrs.; $1,757.07........  714 hrs.; $59,740.38........       $1,757.07
 and 2 (BAL-002-WECC-3; BAL-
 004-WECC-3; IRO-006-WECC-3).
Balancing Authorities Year 3                34               1              34  20 hrs.; $1,673.40........  680 hrs.; $56,895.60........       $1,673.40
 and Ongoing (BAL-002-WECC-3;
 BAL-004-WECC-3; IRO-006-WECC-
 3).
Reserve Sharing Groups (BAL-                 2               1               2  1 hr.; $83.67.............  2 hrs.; $167.34.............          $83.67
 002-WECC-3).
Reliability Coordinators (IRO-               2               1               2  1 hr.; $83.67.............  2 hrs.; $167.34.............          $83.67
 006-WECC-3).
Transmission Owners that                     5               1               5  40 hrs.; $3,346.80........  200 hrs.; $16,734.00........       $3,346.80
 operate qualified transfer
 paths (FAC-501-WECC-2).
Generator Owners and/or                    291               2             582  1 hr.; $83.67.............  582 hrs.; $48,695.94........         $167.34
 Operators (VAR-501-WECC-3.1).
                               -------------------------------------------------------------------------------------------------------------------------
    Sub-Total for Reporting     ..............  ..............             625  ..........................  1,500 hrs.; $125,505.00.....  ..............
     Requirements in Years 1
     and 2.
    Sub-Total for Reporting     ..............  ..............             625  ..........................  1,466 hrs.; $122,660.22.....  ..............
     Requirements in Year 3 &
     Ongoing.
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               Recordkeeping Requirements
--------------------------------------------------------------------------------------------------------------------------------------------------------
Balancing Authorities (BAL-002-             34               1              34  3.1 hrs.; $107.85.........  105.4 hrs.; $3,666.87.......         $107.85
 WECC-3; BAL-004-WECC-3; IRO-
          006-WECC-3)
Reliability Coordinator (IRO-                2               1               2  1 hr.; $34.79.............  2 hrs.; $69.58..............          $34.79
 006-WECC-3).
Transmission Owner that                      5               1               5  6 hrs.; $208.74...........  30 hrs.; $1043.70...........         $208.74
 operate qualified transfer
 paths (FAC-501-WECC-2).
Generator Owners and/or                    291               2             582  0.5 hrs.; $17.40..........  291 hrs.; $10,123.89........          $34.79
 Operators (VAR-501-WECC-3.1).
                               -------------------------------------------------------------------------------------------------------------------------
    Sub-Total for               ..............  ..............             623  ..........................  428.4 hrs.; $14,904.04......  ..............
     Recordkeeping
     Requirements.
                               -------------------------------------------------------------------------------------------------------------------------
        Total for FERC-725E,    ..............  ..............            1248  ..........................  1,928.4 hrs.; $140,409.04...  ..............
         in Yr. 1 and Yr. 2.
        Total for FERC-725E,    ..............  ..............            1248  ..........................  1,894.4 hrs.; $137,564.26...  ..............
         in Yr. 3 & Ongoing.
--------------------------------------------------------------------------------------------------------------------------------------------------------

    31. Interested persons may obtain information on the reporting 
requirements by contacting Ellen Brown, Office of the Executive 
Director, Federal Energy Regulatory Commission, 888 First Street NE, 
Washington, DC 20426, via email (DataClearance@ferc.gov) or telephone 
((202) 502-8663).
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    \34\ The number of respondents is derived from the NERC 
Compliance Registry as of September 3, 2020.

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

[[Page 68815]]

    32. The Commission solicits comments on the Commission's 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.
    33. Please send comments concerning the collection of information 
and the associated burden estimates to: Office of Information and 
Regulatory Affairs, Office of Management and Budget, 725 17th Street 
NW, Washington, DC 20503 [Attention: Desk Officer for the Federal 
Energy Regulatory Commission]. Due to security concerns, comments 
should be sent electronically to the following email address: 
oira_submission@omb.eop.gov. Comments submitted to OMB should refer to 
OMB Control Nos. 1902-0246.
    34. Please submit a copy of your comments on the information 
collections to the Commission via the eFiling link on the Commission's 
website at http://www.ferc.gov. If you are not able to file comments 
electronically, please send a copy of your comments to: Federal Energy 
Regulatory Commission, Secretary of the Commission, 888 First Street 
NE, Washington, DC 20426. Comments on the information collection that 
are sent to FERC should refer to RM19-20-000.
    Title: FERC-725E, Mandatory Reliability Standards-WECC (Western 
Electric Coordinating Council).
    Action: Three-year approval of the FERC-725E information collection 
requirements, as modified by Docket No. RM19-20-000 and due to normal 
industry fluctuations.
    OMB Control No: 1902-0246 (FERC-725E).
    Respondents: Business or other for-profit, and not-for-profit 
institutions.
    Frequency of Responses: One-time.
    Necessity of the Information: The proposed regional Reliability 
Standard BAL-002-WECC-3, if adopted, would implement the Congressional 
mandate of the Energy Policy Act of 2005 to develop mandatory and 
enforceable Reliability Standards to better ensure the reliability of 
the nation's Bulk-Power System. Specifically, the proposal ensures that 
balancing authorities and reserve sharing groups in the WECC Region 
have the quantity and types of contingency reserve required to ensure 
reliability under normal and abnormal conditions.
    Internal review: The Commission has reviewed the proposed regional 
Reliability Standard BAL-002-WECC-3 and made a determination that its 
action is necessary to implement section 215 of the FPA. 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.

IV. Environmental Analysis

    35. 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.\35\ 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.\36\ The actions proposed here 
fall within this categorical exclusion in the Commission's regulations.
---------------------------------------------------------------------------

    \35\ Regulations Implementing the National Environmental Policy 
Act of 1969, Order No. 486, 52 FR 47897 (Dec. 17, 1987), FERC Stats. 
& Regs. ] 30,783 (1987) (cross-referenced at 41 FERC ] 61,284).
    \36\ 18 CFR 380.4(a)(2)(ii).
---------------------------------------------------------------------------

V. Regulatory Flexibility Act

    36. The Regulatory Flexibility Act of 1980 (RFA) \37\ generally 
requires a description and analysis of proposed rules that will have 
significant economic impact on a substantial number of small entities. 
The Small Business Administration's (SBA) Office of Size Standards 
develops the numerical definition of a small entity.\38\ These 
standards are provided in the SBA regulations at 13 CFR 121.201.\39\
---------------------------------------------------------------------------

    \37\ 5 U.S.C. 601-612.
    \38\ 13 CFR 121.101.
    \39\ 13 CFR 121.201. See also U.S. Small Business 
Administration, Table of Small Business Size Standards Matched to 
North American Industry Classification System Codes (effective Feb. 
26, 2016), https://www.sba.gov/sites/default/files/files/Size_Standards_Table.pdf.
---------------------------------------------------------------------------

    37. Under SBA's size standards,\40\ balancing authorities, reserve 
sharing groups, generator operators, generator owners, transmission 
owners, and transmission operators all fall under the category of 
(NAICS code 221111-Hydroelectric Power Generation (500) and NAICS code 
221118-Other Electric Power Generation (250)), with a total size 
threshold of 750 employees (including the entity and its 
associates).\41\
---------------------------------------------------------------------------

    \40\ 13 CFR 121.201
    \41\ The threshold for the number of employees indicates the 
maximum allowed for a concern and its affiliates to be considered 
small.
---------------------------------------------------------------------------

    38. This proposed rule, if adopted, would apply to registered 
balancing authorities and reserved sharing groups in the NERC 
Compliance Registry with data submitted to the Energy Information 
Administration on Form EIA-861 indicating that, of the 36 entities, 34 
are registered balancing authorities and two are reserve sharing 
groups, two may qualify as small entities.\42\
---------------------------------------------------------------------------

    \42\ The RFA definition of ``small entity'' refers to the 
definition provided in the Small Business Act (SBA), which defines a 
``small business concern'' as a business that is independently owned 
and operated and that is not dominant in its field of operation. See 
15 U.S.C. 632. According to the Small Business Administration, an 
electric utility is defined as ``small'' if, including its 
affiliates, the number of employees indicates the maximum allowed 
for a concern and its affiliates to be considered small.
---------------------------------------------------------------------------

    39. Using the list from the NERC Compliance Registry (dated 
September 3, 2020), we estimate that approximately 22% of those 
entities are small entities.
    40. The Commission estimates that, on average, each of the two 
affected small entities will have no further ongoing costs after year 
three. These figures are based on information collection costs plus 
additional costs for compliance.
    41. The Commission does not consider this to be a significant 
economic impact for small entities because it should not represent a 
significant percentage of the operating budget. Accordingly, the 
Commission certifies that this proposed rulemaking will not have a 
significant economic impact on a substantial number of small entities. 
The Commission seeks comment on this certification.

VI. Comment Procedures

    42. The Commission invites interested persons to submit comments on 
the matters and issues proposed in this document to be adopted, 
including any related matters or alternative proposals that commenters 
may wish to discuss. Comments are due December 29, 2020. Comments must 
refer to Docket No. RM19-20-000, and must include the commenter's name, 
the organization they represent, if applicable, and their address in 
their comments.
    43. The Commission encourages comments to be filed electronically 
via the eFiling link on the Commission's website at http://www.ferc.gov. The Commission accepts most standard word processing 
formats. Documents created electronically using word processing 
software should be filed in native applications or print-to-PDF format 
and not in a scanned format. Commenters filing electronically do not 
need to make a paper filing.
    44. Commenters that are not able to file comments electronically 
must send

[[Page 68816]]

an original of their comments to: Federal Energy Regulatory Commission, 
Secretary of the Commission, 888 First Street NE, Washington, DC 20426.
    45. All comments will be placed in the Commission's public files 
and may be viewed, printed, or downloaded remotely as described in the 
Document Availability section below. Commenters on this proposal are 
not required to serve copies of their comments on other commenters.

VII. Document Availability

    46. In addition to publishing the full text of this document in the 
Federal Register, the Commission provides all interested persons an 
opportunity to view and/or print the contents of this document via the 
internet through the Commission's Home Page (http://www.ferc.gov) and 
in the Commission's Public Reference Room during normal business hours 
(8:30 a.m. to 5:00 p.m. Eastern time) at 888 First Street NE, Room 2A, 
Washington DC 20426.
    47. From the Commission's Home Page on the internet, this 
information is available on eLibrary. The full text of this document is 
available on eLibrary in PDF and Microsoft Word format for viewing, 
printing, and/or downloading. To access this document in eLibrary, type 
the docket number excluding the last three digits of this document in 
the docket number field.
    48. User assistance is available for eLibrary and the Commission's 
website 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.

    Issued: October 15, 2020.
Kimberly D. Bose,
Secretary.
[FR Doc. 2020-23297 Filed 10-29-20; 8:45 am]
BILLING CODE 6717-01-P


