[Federal Register Volume 75, Number 226 (Wednesday, November 24, 2010)]
[Proposed Rules]
[Pages 71625-71632]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-29569]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

18 CFR Part 40

[Docket No. RM10-16-000]


System Restoration Reliability Standards

November 18, 2010.
AGENCY: Federal Energy Regulatory Commission, DOE.

ACTION: Notice of proposed rulemaking.

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SUMMARY: Under section 215 of the Federal Power Act (FPA), the Federal 
Energy Regulatory Commission (Commission) proposes to approve 
Reliability Standards EOP-001-1 (Emergency Operations Planning), EOP-
005-2 (System Restoration from Blackstart Resources), and EOP-006-2 
(System Restoration Coordination) submitted to the Commission by the 
North American Electric Reliability Corporation, the Electric 
Reliability Organization (ERO) certified by the Commission. In 
addition, the Commission seeks comment from the ERO and other 
interested parties regarding specific concerns. The Commission may 
determine that, after considering such comments, it is appropriate to 
direct the ERO, under section 215(d)(5) of the FPA, to develop 
additional modifications to proposed EOP-005-2 and EOP-006-2. The 
proposed Reliability Standards require that plans, facilities and 
personnel are prepared to enable system restoration using designated 
blackstart resources.

DATES: Comments are due January 24, 2011.

ADDRESSES: You may submit comments, identified by Docket No. RM10-16-
000 and in accordance with the requirements posted on the Commission's 
Web site, http://www.ferc.gov. Comments may be submitted by any of the 
following methods:
    <bullet> Agency Web Site: Documents created electronically using 
word processing software should be filed in native applications or 
print-to-PDF format, and not in a scanned format, at http://www.ferc.gov/docs-filing/efiling.asp.
    <bullet> Mail/Hand Delivery: Commenters unable to file comments 
electronically must mail or hand deliver their comments to: Federal 
Energy Regulatory Commission, Secretary of the Commission, 888 First 
Street, NE., Washington, DC 20426. These requirements can be found on 
the Commission's Web site, see, e.g., the ``Quick Reference Guide for 
Paper Submissions,'' available at http://www.ferc.gov/docs-filing/efiling.asp or via phone from FERC Online Support at 202-502-6652 or 
toll-free at 1-866-208-3676.

FOR FURTHER INFORMATION CONTACT:

David O'Connor (Technical Information), Office of Electric Reliability, 
Division of Reliability Standards, Federal Energy Regulatory 
Commission, 888 First Street, NE., Washington, DC 20426, (202) 502-
6695.
Nick Henery (Technical Information), Office of Electric Reliability, 
Division of Reliability Standards, Federal Energy Regulatory 
Commission, 888 First Street, NE. Washington, DC 20426, (202) 502-8636.
Terence Burke (Legal Information), Office of the General Counsel, 
Federal Energy Regulatory Commission, 888 First Street, NE., 
Washington, DC 20426, (202) 502-6498.
Jonathan First (Legal Information), Office of the General Counsel, 
Federal Energy Regulatory Commission, 888 First Street, NE., 
Washington, DC 20426, (202) 502-8529.

SUPPLEMENTARY INFORMATION: 

Notice of Proposed Rulemaking

    1. Under section 215 of the Federal Power Act (FPA),\1\ the 
Commission proposes to approve three Reliability Standards, EOP-001-1 
(Emergency Operations Planning), EOP-005-2 (System Restoration from 
Blackstart Resources), and EOP-006-2 (System Restoration Coordination) 
developed by the North American Electric Reliability Corporation 
(NERC), the Commission-certified Electric Reliability Organization 
(ERO), as well as the definition of the term ``Blackstart Resource'' to 
be added to the NERC Glossary of Terms. The proposed Reliability 
Standards were drafted to ensure plans, facilities and personnel are 
prepared to enable system restoration from blackstart resources in 
order that reliability is maintained during system restoration. The 
Commission also seeks comment from the ERO and other interested 
entities regarding the Commission's specific concerns discussed below. 
The Commission may determine that, after considering such comments, it 
is appropriate to direct the ERO, under section 215(d)(5) of the FPA, 
to develop additional modifications to proposed EOP-005-2 and EOP-006-
2. The Commission also proposes to approve

[[Page 71626]]

the retirement of the currently effective Reliability Standards EOP-
001-0 (Emergency Operations Planning), EOP-005-1 (System Restoration 
Plans), EOP-006-1 (Reliability Coordination--System Restoration), and 
EOP-009-0 (Documentation of Blackstart Generating Unit Test Results) as 
well as the definition of ``Blackstart Capability Plan'' from the NERC 
Glossary of Terms, which are superseded by the proposed Reliability 
Standards EOP-001-1, EOP-005-2 and EOP-006-2.
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    \1\ 16 U.S.C. 824o (2006).
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    2. ``Blackstart'' capability refers to the ability of a generating 
unit or station to start operating and delivering electric power 
without assistance from the electric system. Blackstart units are 
essential to restart generation and restore power to the grid in the 
event of an outage. As discussed below, NERC proposes to define 
``Blackstart Resource'' as ``a generating unit(s) and its associated 
set of equipment which has the ability to be started without support 
from the System or is designed to remain energized without connection 
to the remainder of the System, with the ability to energize a bus. * * 
* '' The proposed EOP Reliability Standards addressed in this 
rulemaking were developed by NERC to ensure that applicable entities 
prepare plans, facilities and personnel to enable system restoration 
from blackstart resources in order that reliability is maintained 
during restoration.
    3. In Order No. 693, the Commission determined that it would not 
take action on certain proposed Reliability Standards that require 
supplemental information from a Regional Entity. Such Reliability 
Standards refer to regional criteria or procedures that have not been 
submitted to the Commission for approval and, as such, are referred to 
as ``fill-in-the-blank'' standards.\2\ Pending Reliability Standard 
EOP-007-0 is one such fill-in-the-blank standard. The proposed 
Reliability Standards provide a national approach to address the 
Commission's concerns regarding pending EOP-007-0, as set forth in 
Order No. 693. Thus, in addition to the retirement of certain currently 
effective EOP Reliability Standards, we also propose to approve NERC's 
to withdrawal of pending Reliability Standard EOP-007-0.
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    \2\ Mandatory Reliability Standards for the Bulk-Power System, 
Order No. 693, 72 FR 16416 at P 297 (Apr. 4, 2007), FERC Stats. & 
Regs. ] 31,242, order on reh'g, Order No. 693-A, 120 FERC ] 61,053 
(2007).
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I. Background

A. Section 215 of the FPA

    4. Section 215 of the FPA requires a Commission-certified ERO to 
develop mandatory and enforceable Reliability Standards, which are 
subject to Commission review and approval. If approved, the Reliability 
Standards are enforced by the ERO, subject to Commission oversight, or 
by the Commission independently.
    5. In July 2006, the Commission certified NERC as the ERO.\3\ 
Concurrent with its 2006 ERO Application, NERC submitted to the 
Commission a petition seeking approval of 107 proposed Reliability 
Standards, including nine Emergency Preparedness and Operations (EOP) 
Reliability Standards. The EOP group of Reliability Standards addresses 
preparations for emergencies, necessary actions during emergencies and 
system restoration and reporting following disturbances.
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    \3\  North American Electric Reliability Corp., 116 FERC ] 
61,062 (ERO Certification Order), order on reh'g & compliance, 117 
FERC ] 61,126 (2006), aff'd sub nom. Alcoa, Inc. v. FERC, 564 F.3d 
1342 (D.C. Cir. 2009).
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    6. On March 16, 2007, the Commission issued Order No. 693, 
approving 83 of the 107 Reliability Standards filed by NERC,\4\ 
including the Reliability Standards: EOP-001-0, EOP-005-1, EOP-006-1 
and EOP-009-0.\5\ The Commission neither approved nor remanded EOP-007-
0 because it applied only to regional reliability organizations, but 
Order No. 693 did provide guidance for the ERO's further consideration 
of the Reliability Standard.\6\ In addition, under section 215(d)(5) of 
the FPA, the Commission directed NERC to develop modifications to the 
EOP Reliability Standards to address certain issues identified by the 
Commission. At issue in the immediate proceeding are two new EOP 
standards, EOP-005-2 and EOP-006-2 that would replace the currently 
effective Reliability Standards EOP-005-1, EOP-006-1, and EOP-009-0 and 
necessitate a conforming change in EOP-001-0.
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    \4\ Order No. 693, FERC Stats. & Regs. ] 31,242 at P 304-1899.
    \5\ Id. P 542-676.
    \6\ Id. P 644.
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B. Currently Effective EOP Reliability Standards

1. Reliability Standard EOP-005-1
    7. Currently effective Reliability Standard EOP-005-1 requires 
transmission operators, balancing authorities, and reliability 
coordinators to have a restoration plan, test the plan, train operating 
personnel in the restoration plan and to have the ability to restore 
the Interconnection using the plans following a blackout. In Order No. 
693, the Commission directed the ERO to develop, through the 
Reliability Standard Development Process, a modification to EOP-005-1 
that (i) identifies time frames for training and review of restoration 
plan requirements to simulate contingencies and prepare operators for 
anticipated and unforeseen events and (ii) gathers data from 
simulations and drills of system restoration on the time taken to 
restore power to nuclear power plants and report that information to 
the Commission.\7\ The Commission also directed the ERO to consider 
various commenters suggestions in future revisions of the Reliability 
Standard.\8\
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    \7\ Id. P 630.
    \8\ Id. P 628.
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2. Reliability Standard EOP-006-1
    8. In Order No. 693, the Commission also approved Reliability 
Standard EOP-006-1 addressing reliability coordination and system 
restoration. The Reliability Standard sets requirements for reliability 
coordinators during system restoration and requires that reliability 
coordinators have a coordinating role in system restoration to ensure 
reliability is maintained during system restoration. Under section 215 
of the FPA, the Commission directed the ERO to develop a modification 
to EOP-006-1 to ensure that the reliability coordinator is involved in 
the development and approval of system restoration plans.\9\
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    \9\ Id. P 638.
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3. Reliability Standard EOP-007-0
    9. ``Pending'' Reliability Standard EOP-007-0 deals with 
establishing, maintaining and documenting regional blackstart 
capability plans. In Order No. 693, the Commission did not act on EOP-
007-0 because it applies only to regional reliability organizations and 
as such was not acted on pending NERC's providing additional 
information.\10\ The Commission directed the ERO to consider various 
commenters suggestions relating to assigning compliance obligations 
directly to the entities that provide the pertinent data instead of to 
the Regional Entity, placing responsibility for the regional blackstart 
plan with the reliability coordinator rather than the Regional Entity, 
recognizing that nuclear units have no blackstart capability, revising 
the definition of a blackstart unit, and committing arrangements for

[[Page 71627]]

coordinating blackstart capability to contracts.\11\
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    \10\ Id. P 297 and 644.
    \11\ Id. P 642-643, 647.
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4. Reliability Standard EOP-009-0
    10. Currently effective Reliability Standard EOP-009-0 deals with 
implementing and documenting testing of blackstart generating units. In 
Order No. 693, the Commission approved EOP-009-0. In addition, the 
Commission directed the ERO to consider suggestions for improvements 
raised during the comment period. One commenter stated the Reliability 
Standard should provide details on what constitutes a blackstart test 
and another stated NERC should consolidate the Reliability Standard 
with EOP-007-0.\12\
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    \12\ Id. P 674, 676.
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II. NERC Petition for Proposed EOP Reliability Standards

    11. In a December 31, 2009 filing (NERC Petition), NERC requests 
Commission approval of its proposed definition of the term ``Blackstart 
Resource'' and proposed Reliability Standards EOP-001-1 (Emergency 
Operating Plan),\13\ EOP-005-2 (System Restoration from Blackstart 
Resources) and EOP-006-2 (System Restoration Coordination). NERC also 
seeks to concurrently retire four currently effective Reliability 
Standards: EOP-001-0, EOP-005-1, EOP-006-1, and EOP-009-0 as well as 
the definition of ``Blackstart Capability Plan'' and withdraw pending 
Reliability Standard EOP-007-0.
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    \13\ Concurrent with its filing in this Docket, NERC filed a 
petition in Docket No. RM10-15-000 seeking approval of certain 
Interconnection Reliability Operating Limit (IRO) Reliability 
Standards. As part of its IRO filing, NERC proposed to retire 
Requirement R2 of EOP-001-0. Each petition proposes unique changes 
to EOP-001-0 reflecting the distinct issues addressed by the 
respective Reliability Standards drafting teams. NERC indicated in 
both petitions that it could not anticipate the sequence in which 
the Commission would act and therefore included two sets of proposed 
amendments to EOP-001-0 in each petition. The Commission will 
clarify upon issuance of Final Rules in each proceeding which 
revised version of EOP-001-0 it is addressing in its determination.
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    12. NERC states that the proposed Reliability Standards ``represent 
significant revision and improvement from the current set of 
enforceable standards'' and address the Commission's directives in 
Order No. 693 related to the EOP standards.\14\ NERC explains that, 
among other enhancements, ``[t]he proposed revisions now clearly 
delineate the responsibilities of the Reliability Coordinator and 
Transmission Operator in the restoration process and restoration 
planning.'' \15\ NERC describes the proposed Reliability Standards as 
providing ``specific requirements for what must be in a restoration 
plan, how and when it needs to be updated and approved, what needs to 
be provided to operators and what training is necessary for personnel 
involved in restoration processes.'' \16\ NERC requests that the 
Commission approve (1) the proposed Reliability Standards, (2) 
concurrent retirement of the currently effective EOP Reliability 
Standards, and (3) the revisions to the NERC Glossary of Terms. With 
regard to implementation, NERC proposes that the proposed EOP 
Reliability Standards, new definitions and retirements of effective 
standards be made effective twenty-four months after the first day of 
the first calendar quarter following applicable regulatory approval. 
Below, we describe each of the proposed EOP Reliability Standards.
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    \14\ NERC Petition at 4.
    \15\ Id. 5.
    \16\ Id.
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A. Blackstart Resource

    13. NERC requests approval of the term ``Blackstart Resource'' and 
the concurrent retirement of the term ``Blackstart Capability Plan.'' 
The proposed definition of ``Blackstart Resource'' is:

    A generating unit(s) and its associated set of equipment which 
has the ability to be started without support from the System or is 
designed to remain energized without connection to the remainder of 
the System, with the ability to energize a bus, meeting the 
Transmission Operator's restoration plan needs for real and reactive 
power capability, frequency and voltage control, and that has been 
included in the Transmission Operator's restoration plan.

The term ``Blackstart Capacity Plan'' is currently used solely in EOP-
007-0 and EOP-009-0, both of which NERC intends to replace with 
proposed Reliability Standards EOP-005-2 and EOP-006-2.

B. Reliability Standard EOP-001-1

    14. Proposed Reliability Standard EOP-001-1 contains seven 
requirements for the stated purpose of requiring each transmission 
operator and balancing authority to develop, maintain and implement a 
set of plans to mitigate operating emergencies and to coordinate these 
plans with other transmission operators, balancing authorities and the 
reliability coordinator.\17\ It modifies EOP-001-0 by deleting 
currently effective Requirement R3.4, which requires transmission 
operators and balancing authorities to develop, maintain and implement 
a set of plans for system restoration. According to NERC, the deletion 
is proposed because the new EOP-005-2 and EOP-006-2 incorporate and 
expand upon this requirement.
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    \17\ Reliability Standard EOP-001-1, Section A.3. (Purpose).
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C. Reliability Standard EOP-005-2

    15. Proposed Reliability Standard EOP-005-2 contains eighteen 
requirements for the stated purpose of ensuring that plans, facilities 
and personnel are prepared to enable system restoration from Blackstart 
Resources, and to ensure reliability is maintained during restoration 
and priority is placed on restoring the Interconnection.\18\ The 
proposed Reliability Standard applies to transmission operators, 
generation operators, and transmission owners, and distribution 
providers identified in the transmission operator's restoration plan. 
Requirement R1 requires each transmission operator to have a 
reliability coordinator-approved restoration plan utilizing Blackstart 
Resources and details the scope and elements of such a plan. 
Requirement R2 instructs each transmission operator to provide entities 
that have a role in the restoration plan with a description of their 
roles and tasks. Requirements R3 through R6 address annual plan 
reviews, updating practices, location of plans and plan verification. 
Following a disturbance, Requirements R7 and R8 provide guidance on 
following the plan or making needed adjustments and coordinating when 
re-synchronizing two systems together. Requirement R9 describes testing 
information the transmission operator must have to verify the 
Blackstart Resources meet required expectations. Requirements R10 to 
R12 cover system restoration training requirements for system operators 
and field switching personnel. Blackstart Resource agreements between 
the transmission operator and generator operator or mutually agreed 
upon procedures or protocols are addressed in Requirement R13. Duties 
of a generator owner with a Blackstart Resource are provided in 
Requirements R14 through R18, which address operating procedures, 
change notification, testing for each Blackstart Resource and training 
of operating personnel on Blackstart Resources. NERC has requested that 
EOP-005-1 be retired upon the effectiveness of EOP-005-2.
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    \18\ Reliability Standard EOP-005-2, Section A.4. (Purpose).
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D. Reliability Standard EOP-006-2

    16. Proposed Reliability Standard EOP-006-2 contains ten 
requirements for the stated purpose of ensuring that

[[Page 71628]]

the reliability coordinator establishes plans and prepares personnel to 
enable effective coordination of the system restoration process, to 
maintain reliability during restoration and to place priority on 
restoring the Interconnection.\19\ Requirement R1 requires reliability 
coordinators to have restoration plans that utilize Blackstart 
Resources and specifies the scope and elements of such plans. 
Requirement R2 covers distribution of the reliability coordinator's 
restoration plan. Requirements R3 through R5 provide for review of the 
reliability coordinator's restoration plan and the plans of each 
neighboring reliability coordinator and each transmission operator 
located in the reliability coordinator's area. Any conflicts between 
reliability coordinators' plans are to be resolved within thirty days, 
and transmission operators' plans shall be approved or disapproved, 
with stated reasons, within thirty days. Requirement R6 requires that 
the reliability coordinator must maintain copies of restoration plans 
in the reliability coordinator's primary and backup control room. 
Requirements R7 and R8 describe the roles of reliability coordinators 
to coordinate restoration efforts and authorize re-synchronizing of 
``island'' areas. Requirements R9 and R10 address training and 
participation in annual drills, exercises and simulations. NERC has 
requested with acceptance of EOP-006-2 that EOP-006-1 be retired.
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    \19\ Reliability Standard EOP-006-2, Section A.3. (Purpose).
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III. Discussion

    17. We believe that the proposed glossary term ``Blackstart 
Resource'' and Reliability Standards EOP-001-1, EOP-005-2, and EOP-006-
2 comply with the relevant directives set forth in Order No. 693. We 
also believe that the proposed EOP Reliability Standards represent an 
improvement in blackstart restoration requirements, as represented by 
NERC. Accordingly, under section 215(d)(2) of the FPA, the Commission 
proposes to approve the new term and proposed Reliability Standards as 
just, reasonable, not unduly discriminatory or preferential and in the 
public interest. In addition, the Commission seeks comment from the ERO 
and other interested parties regarding specific concerns and may 
determine, after considering such comments, that it is appropriate to 
direct the ERO, under section 215(d)(5) of the FPA, to develop 
additional modifications to proposed Reliability Standards EOP-005-2 
and EOP-006-2. Below, we discuss each proposed EOP Reliability Standard 
and relevant concerns.

A. EOP-001-1 Emergency Operation Planning

    18. The Commission proposes to approve EOP-001-1 as requested by 
NERC.\20\ Current Requirement R3.4 of Reliability Standard EOP-001-0 
requires each transmission operator and balancing authority to develop, 
maintain and implement system restoration plans. The removal of that 
Requirement from EOP-001-0 is appropriate because NERC proposes to 
address system restoration plans in its new Reliability Standards EOP-
005-2 and EOP-006-2. The Order No. 693 directives applicable to EOP-
001-0 were not addressed in the NERC Petition since the proposed 
standards are narrowly focused on system restoration that is a part, 
and not the sole subject, of the EOP standards. We note that all of the 
Order No. 693 directives relating to EOP-001-0 are still applicable to 
EOP-001-1 and will need to be addressed by NERC in another filing.\21\
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    \20\ The version of EOP-001-1 that the Commission proposes to 
approve is the version contained in Exhibit A in the NERC Petition.
    \21\ See Order No. 693, FERC Stats. & Regs. ] 31,242 at P 548, 
554, 555, 561, 562 and 566.
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B. EOP-005-2 System Restoration From Blackstart Resources

    19. The Commission proposes to approve proposed Reliability 
Standard EOP-005-2. The Reliability Standard effectively addresses the 
Commission's directive in Order No. 693 to develop time frames for 
training and review of restoration plan requirements to simulate 
contingencies and prepare operators for anticipated and unforeseen 
events. Requirements R3 and R4 set forth time frames for review of 
restoration plans. Frequency of testing Blackstart Resources is 
addressed in Requirement R9, and Requirement R6 requires each 
transmission operator to verify every five years through analysis of 
actual events, steady state and dynamic simulations, or testing that 
its restoration plan accomplishes its intended function. Periodic 
drills and training are the most effective method of demonstrating 
restoration plans are current and appropriate personnel are prepared, 
and proposed Requirements R10, R11 and R17 address training 
requirements for system operators, field switching personnel and 
generator operators with Blackstart Resources.
    20. Proposed Requirement R11 of EOP-005-2 provides that applicable 
entities ``shall provide a minimum of two hours of System restoration 
every two calendar years to their field switching personnel identified 
as performing unique tasks associated with the Transmission Operator's 
restoration plan that are outside of their normal tasks.'' NERC's 
Petition indicates that, in the development process, three stakeholders 
commented that the use of the term ``unique tasks'' is vague and 
requested a better definition and examples.\22\ The Commission is also 
concerned that the applicable entities may not understand what the term 
``unique tasks'' means, and we request comment on what is intended by 
that term. Also, given that there a variety of means by which the ERO, 
if necessary, can provide greater clarity regarding the term ``unique 
tasks,'' we request comment on whether guidance should be provided to 
the transmission operators, transmission owners and distribution 
providers who are responsible for providing training, and if so, how 
this guidance should be provided. In addition, we seek comment as to 
whether those tasks should be identified in each transmission 
operator's restoration plan.
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    \22\ See NERC Petition, Exh. E (Record of Development of 
Proposed Reliability Standards) at 1429, 1500, and 1748 (as 
identified in the PDF version available on eLibrary on the FERC's 
Home Page (http://www.ferc.gov)).
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    21. Requirement R5 of currently effective EOP-005-1 addresses 
periodic testing of telecommunication facilities needed to implement 
restoration plans. This requirement, however, is not carried over to 
proposed EOP-005-2. We recognize that currently effective communication 
Reliability Standard COM-001-1.1 requires that reliability 
coordinators, transmission operators and balancing authorities manage, 
alarm, test and/or actively monitor vital telecommunication facilities, 
with special attention given to emergency facilities and equipment. 
Consistent with that requirement, the Commission proposes to require 
that the ERO develop a modification to EOP-005-2 that addresses this 
concern, for example, by specifying that such testing of 
telecommunication facilities be identified in the restoration plan and 
be part of any restoration drill, exercise or simulation. By placing 
the duty to test telecommunications facilities in the restoration plan, 
entities will ensure restoration-specific telecommunications equipment, 
phone lists and protocols are tested by restoration personnel as part 
of their ongoing restoration preparedness. In addition, recommendation 
26 of the U.S.-Canada report \23\ on the August 14, 2003

[[Page 71629]]

blackout recognizes that effective communication protocols during 
alerts and emergencies are essential to reliability. Consistent with 
the Blackout Report, applicable entities should have standing hotline 
networks or functional equivalents to receive timely and accurate 
information and should regularly test such communication networks.
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    \23\ U.S.-Canada Power System Outage Task Force, Final Report on 
the August 14, 2003 Blackout in the United States and Canada: Causes 
and Recommendations at 161 (April 2004) (Blackout Report), available 
at http://www.ferc.gov/industries/electric/indus-act/blackout.asp.
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    22. Given the importance of communication to the restoration 
process, however, the Commission further believes that testing should 
be done more frequently than during annual drills, exercises or 
simulations (as is contained in the currently effective Requirement R5 
of EOP-005-1). The Commission is concerned that in an emergency event, 
communication devices must be readily available and functioning 
properly.\24\ For example, wireless devices may be missing or non-
functional and emergency contact information may be out of date. A 
relatively unintrusive, periodic test or drill of communications may 
provide greater assurance that communications equipment is available 
for responding in an emergency. The Commission invites comment on this 
issue.
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    \24\ Information on the relationship between communications and 
electricity is available from Public Safety & Homeland Security 
Bureau of the Federal Communications Commission. See http://www.fcc.gov/pshs/.
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C. EOP-006-2 System Restoration Coordination

    23. Proposed Reliability Standard EOP-006-2, is intended to ensure 
that plans are established and personnel are prepared to enable 
effective coordination of the system restoration process to ensure 
reliability is maintained during restoration. The Commission proposes 
to approve EOP-006-2 as it addresses the Commission's directive in 
Order No. 693 to ensure the reliability coordinator is involved in the 
development and approval of system restoration plans.
    24. Under proposed Reliability Standard EOP-005-2, Requirement R1.4 
requires the transmission operator to indentify each Blackstart 
Resource and its characteristics. Currently effective Reliability 
Standard EOP-007-0 similarly requires the Regional Entity to maintain a 
database of Blackstart Resources, but these requirements have no 
counterpart in EOP-006-2. The Commission is concerned that the absence 
of a counterpart to such a requirement in EOP-006-2 could deny the 
Reliability Coordinator a potentially useful tool in maintaining 
reliability. Since the reliability coordinator is responsible for 
overall system awareness, the Commission invites comments as to why the 
current EOP-007-0 requirement was not carried forward into proposed 
Reliability Standard EOP-006-2 and whether it would be beneficial to 
include a provision in EOP-006-2 that would require the reliability 
coordinator to maintain a database of each Blackstart Resource within 
its area.
    25. While proposed EOP-005-2 Requirement R6 requires each 
transmission operator to verify through analysis of actual events, 
simulations or testing that its restoration plan accomplishes its 
intended function, there is no similar requirement in proposed EOP-006-
2 regarding the reliability coordinator's restoration plan. The 
Commission is concerned that the absence of a comparable verification 
requirement may have a detrimental effect on the quality of Reliability 
Coordinators' planning. Accordingly we seek comment on whether the same 
or similar requirement (verification through actual events, steady 
state and dynamic simulations or testing) should apply to reliability 
coordinators.
    26. Pursuant to proposed EOP-006-2 Requirements R5 and R5.1, the 
reliability coordinators must review the restoration plans required of 
transmission operators by EOP-005-2 and must approve or disapprove the 
plans within 30 days of receipt. We are concerned that no clear 
guidance is provided on how a transmission operator should handle a 
situation where the reliability coordinator disapproves a transmission 
operator's plan. Although the reliability coordinator is the final 
authority, should there be a give and take with the transmission 
operator whose restoration plan contains an element that the 
reliability coordinator believes is incompatible with another 
restoration plan? If neighboring transmission operators have 
conflicting plans, how will the reliability coordinator determine which 
plan needs to change? We invite comment on how a transmission operator 
should proceed when a transmission operator's plan is rejected by a 
reliability coordinator.

D. Withdrawal of EOP-007-0 and Retirement of EOP-009-0

    27. The Commission proposes to allow NERC to withdraw pending 
Reliability Standards EOP-007-0 and to retire EOP-009-0 because, as 
explained by NERC, the requirements contained in those standards are 
now included in proposed Reliability Standards EOP-005-2 and EOP-006-2.

E. Proposed Data Reporting Requirement

    28. Given the importance of having effective blackstart and 
restoration plans and well-trained personnel in place to address system 
restoration events, the Commission proposes that the ERO collect data 
on the performance of system restoration exercises conducted by 
transmission operators and reliability coordinators. Results from 
restoration exercises are typically maintained as evidence of 
compliance but generally not shared with other entities or available 
from a single source and thus are not available for others to learn 
from. Accordingly, the collection of this data will assist the ERO and 
Commission in identifying the effectiveness of restoration plans, 
establishing best practices among transmission operators and 
reliability coordinators, and determining the effects on personnel 
performance. The ERO could, for example, use this information to 
develop and disseminate ``lessons learned'' regarding black start 
capability.
    29. Thus, under section 39.2(d) of the Commission's regulations, we 
propose to direct the ERO to gather data and establish a database that 
can be accessed by transmission operators, reliability coordinators and 
the Commission regarding transmission operator and reliability 
coordinator system restoration drills, exercises and simulations. In 
particular, we propose that the database should include: (1) The 
duration of each drill, exercise and/or simulation; (2) the amount of 
load considered lost at the beginning of the drill, exercise and/or 
simulation; (3) the amount of load restored at the conclusion of the 
event; (4) whether the drill, exercise and/or simulation was table top, 
walk through simulation or computer simulation; (5) which entities 
participated in the drill, exercise and/or simulation; and (6) whether 
Blackstart Resources were used. Reliability coordinators, transmission 
operators and the ERO will be able to use this data to identify the 
effectiveness of restoration plans and to help identify improvements 
that may be necessary or that could enhance restoration. The Commission 
seeks comment on the proposed data collection including the benefits of 
the information to be provided in the proposed collection, the types of 
information proposed to be collected, and any potential burden of the 
proposed collection.

[[Page 71630]]

F. Violation Risk Factors/Violation Security Levels

    30. To determine a base penalty amount for a violation of a 
Requirement within a Reliability Standard, NERC must first determine an 
initial range for the base penalty amount. To do so, NERC assigns a 
violation risk factor to each Requirement and sub-Requirement of a 
Reliability Standard that relates to the expected or potential impact 
of a violation of the Requirement on the reliability of the Bulk-Power 
System. The Commission has established guidelines for evaluating the 
validity of each violation risk factor assignment.\25\
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    \25\ See North American Electric Reliability Corp., 119 FERC ] 
61,145, order on reh'g, 120 FERC ] 61,145, at P 8-13 (2007) 
(Violation Risk Factor Rehearing Order). The guidelines are: (1) 
Consistency with the conclusions of the Blackout Report; (2) 
consistency within a Reliability Standard; (3) consistency among 
Reliability Standards; (4) consistency with NERC's definition of the 
violation risk factor level; and (5) treatment of requirements that 
co-mingle more than one obligation.
---------------------------------------------------------------------------

    31. NERC also will assign each Requirement and sub-Requirement one 
of four violation severity levels--low, moderate, high, and severe--as 
measurements for the degree to which the Requirement was violated in a 
specific circumstance. On June 19, 2008, the Commission issued an order 
establishing four guidelines for the development of violation severity 
levels.\26\
---------------------------------------------------------------------------

    \26\ North American Electric Reliability Corp., 123 FERC ] 
61,284, at P 20-35 (Violation Severity Level Order), order on reh'g 
& compliance, 125 FERC ] 61,212 (2008). The guidelines provide that 
VSL assignments should: (1) Not lower the current level of 
compliance; (2) ensure uniformity and consistency in the 
determination of penalties; (3) be consistent with the corresponding 
requirement; and (4) be based on a single violation.
---------------------------------------------------------------------------

    32. With respect to proposed Reliability Standards EOP-005-2 and 
EOP-006-2, NERC proposes to assign violation risk factors only to the 
main Requirements and did not propose violation risk factors for any of 
the sub-Requirements.\27\ NERC noted that such practice is consistent 
with NERC's August 10, 2009 Informational Filing Regarding the 
Assignment of violation risk factors and violation severity levels.\28\ 
With respect to proposed Reliability Standard EOP-001-1, NERC proposes 
to carry forward the violation risk factors and violation severity 
levels currently assigned to the existing Reliability Standard EOP-001-
0.
---------------------------------------------------------------------------

    \27\ We note that in Version Two Facilities Design, Connections 
and Maintenance Reliability Standards, Order No. 722, 126 FERC ] 
61,255, at P 45 (2009), the ERO proposed to develop violation risk 
factors and violation severity levels for Requirements but not sub-
requirements. The Commission denied the proposal as ``premature'' 
and, instead, encouraged the ERO to ``develop a new and 
comprehensive approach that would better facilitate the assignment 
of violation severity levels and violation risk factors.'' As 
directed, on March 5, 2010, NERC submitted a comprehensive approach 
that is currently pending with the Commission in Docket No. RR08-4-
005.
    \28\ NERC Petition at 22.
---------------------------------------------------------------------------

    33. On May 5, 2010, NERC incorporated by reference into Docket No. 
RR08-4-005,\29\ its August 10, 2009 information filing in which NERC 
proposes assigning violation risk factors and violation severity levels 
only to the main Requirements in each Reliability Standard, and not to 
the sub-Requirements. Because the violation risk factors and violation 
severity levels for proposed Reliability Standards EOP-001-1, EOP-005-
2, and EOP-006-2 are affected by the NERC's pending petition, we 
propose to defer discussion on the proposed violation risk factors and 
violation severity levels assigned to EOP-001-1, EOP-005-2, and EOP-
006-2 until after we act on NERC's petition in Docket No. RR08-4-005.
---------------------------------------------------------------------------

    \29\ Docket No. RR08-4-005 comprises NERC's March 5, 2010 
Violation Severity Level Compliance Filing submitted in response to 
Order No. 722. See Order No. 722, 126 FERC ] 61,255 at P 45.
---------------------------------------------------------------------------

G. Summary

    34. We propose to approve proposed Reliability Standards EOP-001-1, 
EOP-005-2 and EOP-006-2 as well as the definition of the term 
``Blackstart Resource'' as just, reasonable, not unduly discriminatory 
or preferential, and in the public interest. We also seek comment from 
the ERO and other interested entities regarding the Commission's 
specific concerns discussed above. The Commission may determine after 
considering such comments that it is appropriate to direct the ERO, 
under section 215(d)(5) of the FPA, to develop additional modifications 
to proposed EOP-005-2 and EOP-006-2. We also propose to approve the 
retirement of the currently effective Reliability Standards EOP-001-0, 
EOP-005-1, EOP-006-1, and EOP-009-0 as well as the definition of 
``Blackstart Capability Plan'' which are superseded by the proposed 
Reliability Standards EOP-001-1, EOP-005-2, and EOP-006-2, and we also 
propose to allow NERC to withdraw the pending Reliability Standard EOP-
007-0.

IV. Information Collection Statement

    35. The Office of Management and Budget (OMB) regulations require 
approval of certain information collection requirements imposed by 
agency rules.\30\ 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 this rule will not be penalized 
for failing to respond to these collections of information unless the 
collections of information display a valid OMB control number. The 
Paperwork Reduction Act \31\ requires each federal agency to seek and 
obtain OMB approval before undertaking a collection of information 
directed to ten or more persons, or continuing a collection for which 
OMB approval and validity of the control number are about to 
expire.\32\
---------------------------------------------------------------------------

    \30\ 5 CFR 1320.11.
    \31\ 44 U.S.C. 3501-20.
    \32\ 44 U.S.C. 3502(3)(A)(i), 44 U.S.C. 3507(a)(3).
---------------------------------------------------------------------------

    36. The Commission is submitting these reporting and recordkeeping 
requirements to OMB for its review and approval under section 3507(d) 
of the Paperwork Reduction Act. Comments are solicited on the 
Commission's need for this information, whether the information will 
have practical utility, the accuracy of provided burden estimates, ways 
to enhance the quality, utility, and clarity of the information to be 
collected, and any suggested methods for minimizing the respondent's 
burden, including the use of automated information techniques.
    37. This Notice of Proposed Rulemaking (NOPR), proposes to approve 
three new Reliability Standards, EOP-001-1, EOP-005-2 and EOP-006-2 
governing system restoration from blackstart, which standards will 
replace currently effective Reliability Standards EOP-001-0, EOP-005-1, 
EOP-006-1, and EOP-009-0 as well as pending Reliability Standard EOP-
007-0, all of which the Commission addressed in Order No. 693. Rather 
than creating entirely new blackstart requirements, the proposed 
Reliability Standards EOP-005-2 and EOP-006-2 instead consolidate and 
upgrade the overall quality of the existing Reliability Standards 
governing blackstart planning, testing and training and ensure enhanced 
coordination of the Bulk-Power System restoration process. Thus, this 
proposed rulemaking does not impose entirely new burdens on the 
effected entities. For example, the currently effective restoration 
Reliability Standards require transmission operators to create, 
maintain and test restoration plans and train personnel in those plans. 
Similarly, reliability coordinators are currently required to a have a 
role in coordinating system restoration and in focusing on restoration 
of the Interconnection, and generation owners and operators are 
currently required to test and report the results of the start up and 
operation of blackstart generating units. Accordingly, the requirements 
imposed by proposed

[[Page 71631]]

Reliability Standards EOP-005-2 and EOP-006-2 are more specific but not 
necessarily more expansive than currently effective EOP Reliability 
Standards addressing restoration requirements. However, the 
Commission's proposal that the ERO gather and report data on the 
performance of system restoration exercises does enlarge the duties 
placed on the affected entities.
    38. Public Reporting Burden: Our estimate below regarding the 
number of respondents is based on the NERC compliance registry as of 
September 28, 2010. According to the registry, there are 26 reliability 
coordinators and 176 transmission operators that would be involved in 
providing information. However, under NERC's compliance registration 
program, entities may be registered for multiple functions, so there is 
some double counting involved in these numbers. Proposed EOP-006-2 
requires the reliability coordinator to conduct two system restoration 
drills, exercises or simulations per calendar year involving 
transmission operators and generation operators. Depending on the scope 
of the drill, exercise or simulation, certain transmission operators or 
generation operators may not be required to provide data to the 
reliability coordinator in any given year. Proposed reliability 
Standard EOP-005-2 requires generator operators with Blackstart 
Resources who have not already done so to document in writing both the 
terms of their blackstart arrangements with their transmission operator 
and their procedures for energizing a bus. The registry indicates there 
are 773 generator operators, but we estimate of these the requirements 
will apply to 230. Lastly, EOP-005-2 requires transmission owners and 
distribution providers whose field switching personnel have unique 
tasks under a restoration plan to provide two hours of training every 
two years. The registry shows a net 678 entities that might be required 
to carry out such training as a result of these Reliability Standards. 
Given these parameters, the Commission estimates that the Public 
Reporting burden for the requirements contained in this NOPR is as 
follows:

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                         Number of
           Data collection               Number of        annual                Hours per respondent                       Total annual hours
                                        respondents      responses
--------------------------------------------------------------------------------------------------------------------------------------------------------
FERC-725A:
    Reliability coordinators                      26               1  Reporting: 8............................  Reporting: 208.
     reporting data to NERC on                                        Recordkeeping: 8........................  Recordkeeping: 208.
     annual basis.
    Transmission operators reporting             176               1  Compliance: 116.........................  Compliance: 20,416.
     data to their reliability                                        Recordkeeping: 16.......................  Recordkeeping: 2,816.
     coordinator and reducing
     blackstart arrangements to
     writing.
    Generator operator system                    230               1  80......................................  18,400.
     restoration responsibilities
     including testing and
     maintaining records.
    Transmission owner and                       678               1  8.......................................  5,424.
     distribution provider training
     and recordkeeping.
                                     -------------------------------------------------------------------------------------------------------------------
        Total.......................  ..............  ..............  ........................................  47,472.
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Information Collection Costs: The Commission seeks comments on the 
costs to comply with these requirements and recordkeeping burden 
associated with the proposed Reliability Standards.
    <bullet> Total Annual hours for Collection: (Reporting/Compliance + 
recordkeeping) = hours.
    <bullet> Reporting/Compliance = 44,448 hours @ $132/hour = 
$5,867,136.
    <bullet> Recordkeeping = 3,024 hours @ $17/hour = $51,408.
    <bullet> Total Cost = $5,918,544.
    <bullet> Title: Mandatory Reliability Standards for the Bulk-Power 
System.
    <bullet> Action: Proposed Collection of Information.
    <bullet> OMB Control No: 1902-0244.
    <bullet> Respondents: Business or other for profit, and/or not for 
profit institutions.
    <bullet> Frequency of Responses: Annually.
    <bullet> Necessity of the Information: This proposed rule would 
approve revised Reliability Standards that modify the existing 
requirement for system restoration from a blackstart. The proposed 
Reliability Standards require some entities to commit agreements or 
understandings to writing and/or draft written procedures. Other 
entities may have to produce and maintain training materials. A 
proposed directive to those Reliability Standards would require 
entities to report annually to the ERO who will in turn report to the 
Commission regarding transmission operator and reliability coordinator 
system restoration drills, exercises and simulations.
    <bullet> Internal review: The Commission has reviewed the 
requirements pertaining to the proposed Reliability Standards for the 
Bulk-Power System and determined that the proposed requirements are 
necessary to meet the statutory provisions of the Energy Policy Act of 
2005. These requirements conform to the Commission's plan for efficient 
information collection, communication and management within the energy 
industry. The Commission has assured itself, by means of internal 
review, that there is specific, objective support for the burden 
estimates associated with the information requirements.
    39. Interested persons may obtain information on the reporting 
requirements by contacting: Federal Energy Regulatory Commission, 888 
First Street, NE., Washington, DC 20426 [Attention: Ellen Brown, Office 
of the Executive Director, Phone: (202) 502-8663, fax: (202) 273-0873, 
e-mail: <a href="/cdn-cgi/l/email-protection#3773564356745b52564556595452775152455419505841"><span class="__cf_email__" data-cfemail="094d687d684a656c687b68676a6c496f6c7b6a276e667f">[email protected]</span></a>]. Comments on the requirements of this 
order may also be sent to the Office of Information and Regulatory 
Affairs, Office of Management and Budget, Washington, DC 20503 
[Attention: Desk Officer for the Federal Energy Regulatory Commission]. 
For security reasons, comments should be sent by e-mail to OMB at 
<a href="/cdn-cgi/l/email-protection#234c4a51427c5056414e4a50504a4c4d634c4e410d464c530d444c55"><span class="__cf_email__" data-cfemail="aac5c3d8cbf5d9dfc8c7c3d9d9c3c5c4eac5c7c884cfc5da84cdc5dc">[email protected]</span></a>. Please reference 1902-0244 and the docket 
number of this proposed rulemaking in your submission.

V. Environmental Analysis

    40. 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.\33\ The 
actions proposed here fall within the categorical exclusion in the 
Commission's regulations for rules that are clarifying, corrective or 
procedural, for information

[[Page 71632]]

gathering, analysis, and dissemination.\34\ Accordingly, neither an 
environmental impact statement nor environmental assessment is 
required.
---------------------------------------------------------------------------

    \33\ Regulations Implementing the National Environmental Policy 
Act, Order No. 486, 52 FR 47897 (Dec. 17, 1987), FERC Stats. & Regs. 
] 30,783 (1987).
    \34\ 18 CFR 380.4(a)(5).
---------------------------------------------------------------------------

VI. Regulatory Flexibility Act Analysis

    41. The Regulatory Flexibility Act of 1980 (RFA) \35\ generally 
requires a description and analysis of final rules that will have 
significant economic impact on a substantial number of small entities. 
Many of the entities, i.e., reliability coordinators, transmission 
operators, generation operators, transmission owners and distribution 
providers identified in the transmission operator's restoration plan, 
to which the requirements of this rule would apply do not fall within 
the definition of small entities,\36\ but most transmission owners and 
most distribution providers would be deemed small entities. The 
proposed Reliability Standards clarify the elements of restoration 
plans and training requirements and give reliability coordinators a 
greater role in review and approval of plans, but the proposed 
Reliability Standards reflect primarily a continuation of existing 
system restoration requirements currently applicable to reliability 
coordinators, transmission operators and generation operators.
---------------------------------------------------------------------------

    \35\ 5 U.S.C. 601-12.
    \36\ 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 SBA, a small electric utility is 
defined as one that has a total electric output of less than four 
million MWh in the preceding year.
---------------------------------------------------------------------------

    42. Based on available information regarding NERC's compliance 
registry, and our best assessment of the application of the proposed 
Reliability Standards, approximately 1,110 entities will be responsible 
for compliance with proposed Reliability Standards EOP-005-2 and EOP-
006-2, of which approximately 678 are transmission owners and 
distribution providers not already subject to the existing system 
restoration Reliability Standards. Of the 678 transmission owners and 
distribution providers, only that subset whose field switching 
personnel are identified in the restoration plan as having unique tasks 
will be subject to a new requirement under the proposed standards, 
i.e., providing two hours of system restoration training every two 
calendar years to such personnel. The Commission estimates that this 
requirement will impose a cost of perhaps $1,056 per year on 
transmission owners and distribution providers, and indeed for some 
entities there will be no additional cost because field personnel are 
already being trained in restoration tasks and therefore should not 
present significant operating costs. Based on the foregoing, the 
Commission certifies that this proposed Reliability Standard will not 
have a significant impact on a substantial number of small entities.
    43. Based on this understanding, the Commission certifies that this 
rule will not have a significant economic impact on a substantial 
number of small entities. Accordingly, no regulatory flexibility 
analysis is required.

VII. Comment Procedures

    44. 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 24, 2011. Comments must refer to 
Docket No. RM10-16-000, and must include the commenter's name, the 
organization they represent, if applicable, and their address in their 
comments.
    45. Commenters may submit comments, identified by Docket No. RM10-
16-000 and in accordance with the requirements posted on the 
Commission's Web site, http://www.ferc.gov. Comments may be submitted 
by any of the following methods:
    <bullet> Agency Web Site: Documents created electronically using 
word processing software should be filed in native applications or 
print-to-PDF format, and not in a scanned format, at http://www.ferc.gov/docs-filing/efiling.asp.
    <bullet> Mail/Hand Delivery: Commenters unable to file comments 
electronically must mail or hand deliver their comments to: Federal 
Energy Regulatory Commission, Secretary of the Commission, 888 First 
Street, NE., Washington, DC 20426. These requirements can be found on 
the Commission's Web site, see, e.g., the ``Quick Reference Guide for 
Paper Submissions,'' available at http://www.ferc.gov/docs-filing/efiling.asp or via phone from FERC Online Support at 202-502-6652 or 
toll-free at 1-866-208-3676.
    46. 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.

VIII. Document Availability

    47. 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 FERC's Home Page (http://www.ferc.gov) and in FERC's 
Public Reference Room during normal business hours (8:30 a.m. to 5 p.m. 
Eastern time) at 888 First Street, NE., Room 2A, Washington, DC 20426.
    48. From FERC'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.
    49. User assistance is available for eLibrary and the FERC's Web 
site during normal business hours from FERC Online Support at 202-502-
6652 (toll free at 1-866-208-3676) or e-mail at 
<a href="/cdn-cgi/l/email-protection#f79192859498999b9e999284828787988583b791928594d9909881"><span class="__cf_email__" data-cfemail="583e3d2a3b37363431363d2b2d2828372a2c183e3d2a3b763f372e">[email protected]</span></a>, or the Public Reference Room at (202) 502-
8371, TTY (202)502-8659. E-mail the Public Reference Room at 
<a href="/cdn-cgi/l/email-protection#86f6f3e4eaefe5a8f4e3e0e3f4e3e8e5e3f4e9e9ebc6e0e3f4e5a8e1e9f0"><span class="__cf_email__" data-cfemail="304045525c59531e4255565542555e5355425f5f5d70565542531e575f46">[email protected]</span></a>.

    By direction of the Commission.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2010-29569 Filed 11-23-10; 8:45 am]
BILLING CODE 6717-01-P


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