Federal Register / Vol. 75, No. 245 / Wednesday, December 22, 2010 / Proposed Rules 80397 

1 16 U.S.C. 824o (2006). 

2North American Electric Reliability Corp., 116 

FERC ¶ 61,062, order on reh’g & compliance, 117 

FERC ¶ 61,126 (2006), aff’d sub nom. Alcoa, Inc. 

v. FERC, 564 F.3d 1342 (D.C. Cir. 2009). 

DEPARTMENT OF ENERGY 

Federal Energy Regulatory 

Commission 

18 CFR Part 40 

[Docket No. RM09–9–000] 

Version One Regional Reliability 

Standards for Facilities Design, 

Connections, and Maintenance; 

Protection and Control; and Voltage 

and Reactive 

December 17, 2010. 

AGENCY: Federal Energy Regulatory 

Commission, DOE. 

ACTION: Notice of proposed rulemaking. 

SUMMARY: Under section 215 of the 

Federal Power Act, the Commission 

proposes to approve four revised 

regional Reliability Standards 

developed by the Western Electricity 

Coordinating Council and approved by 

the North American Electric Reliability 

Corporation, which the Commission has 

certified as the Electric Reliability 

Organization responsible for developing 

and enforcing mandatory Reliability 

Standards. These regional Reliability 

Standards have been designated by 

WECC as FAC–501–WECC–1— 

Transmission Maintenance, PRC–004– 

WECC–1—Protection System and 

Remedial Action Scheme Misoperation, 

VAR–002–WECC–1—Automatic Voltage 

Regulators, and VAR–501–WECC–1— 

Power System Stabilizer. Proposed 

FAC–501–WECC–1 addresses 

transmission maintenance for specified 

transmission paths in the Western 

Interconnection. Proposed PRC–004– 

WECC–1 addresses the analysis of 

misoperations that occur on 

transmission and generation protection 

systems and remedial action schemes in 

the Western Interconnection. Proposed 

VAR–002–WECC–1 is meant to ensure 

that automatic voltage regulators remain 

in service on synchronous generators 

and condensers in the Western 

Interconnection. Proposed VAR–501– 

WECC–1 is meant to ensure that power 

system stabilizers remain in service on 

synchronous generators in the Western 

Interconnection. In addition, under 

section 215(d)(5) of the Federal Power 

Act, the Commission proposes to direct 

the Western Electricity Coordinating 

Council, working through its standards 

development process, to develop 

modifications to these to regional 

Reliability Standards to address specific 

issues, as discussed below. 

DATES: Comments are due February 22, 

2011. 

ADDRESSES: You may submit comments, 

identified by docket number 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: 

• 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. 

• Mail/Hand Delivery: Commenters 

unable to file comments electronically 

must mail or hand-deliver an original 

copy of 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: 

A. Cory Lankford (Legal Information) 

Office of the General Counsel, Federal 

Energy Regulatory Commission, 888 

First Street, NE., Washington, DC 

20426, (202) 502–6711. 

Nick Henery (Technical Information), 

Office of Electric Reliability, Federal 

Energy Regulatory Commission, 888 

First Street, NE., Washington, DC 

20426, (202) 502–8636. 

Danny Johnson (Technical Information), 

Office of Electric Reliability, Federal 

Energy Regulatory Commission, 888 

First Street, NE., Washington, DC 

20426, (202) 502–8892. 

Scott Sells (Technical Information), 

Office of Electric Reliability, Federal 

Energy Regulatory Commission, 888 

First Street, NE., Washington, DC 

20426, (202) 502–6664. 

SUPPLEMENTARY INFORMATION: 

Table of Contents 

Paragraph 

Nos. 

I. Background .......................................................................................................................................................................................... 3 

A. Mandatory Reliability Standards ............................................................................................................................................... 3 

B. Western Electricity Coordinating Council ................................................................................................................................. 6 

II. Proposed Regional Reliability Standards ......................................................................................................................................... 8 

III. Discussion ......................................................................................................................................................................................... 10 

A. FAC–501–WECC–1—Transmission Maintenance .................................................................................................................... 11 

B. PRC–004–WECC–1—Protection System and Remedial Action Scheme Misoperation .......................................................... 25 

C. VAR–002–WECC–1—Automatic Voltage Regulators ................................................................................................................ 42 

D. VAR–501–WECC–1—Power System Stabilizer ......................................................................................................................... 65 

IV. Information Collection Statement ................................................................................................................................................... 88 

V. Environmental Analysis .................................................................................................................................................................... 92 

VI. Regulatory Flexibility Act Certification .......................................................................................................................................... 93 

VII. Comment Procedures ...................................................................................................................................................................... 94 

VIII. Document Availability ................................................................................................................................................................... 98 

1. Under section 215 of the Federal 

Power Act (FPA),1 the Commission 

proposes to approve four revised 

regional Reliability Standards 

developed by the Western Electricity 

Coordinating Council (WECC) and 

approved by the North American 

Electric Reliability Corporation (NERC), 

which the Commission has certified as 

the Electric Reliability Organization 

(ERO) responsible for developing and 

enforcing mandatory Reliability 

Standards.2 These regional Reliability 

Standards have been designated by 

WECC as FAC–501–WECC–1— 

Transmission Maintenance, PRC–004– 

WECC–1—Protection System and 

Remedial Action Scheme Misoperation, 

VAR–002–WECC–1—Automatic Voltage 

Regulators, and VAR–501–WECC–1— 

Power System Stabilizer. Proposed 

FAC–501–WECC–1 addresses 

transmission maintenance for specified 

transmission paths in the Western 


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3 16 U.S.C. 824o(e)(3). 

4 16 U.S.C. 824o(e)(4). 

5 16 U.S.C. 824o(a)(7) and (e)(4). 

6 18 CFR 39.5 (2010). 

7 16 U.S.C. 824o(d)(2). 

8Rules Concerning Certification of the Electric 

Reliability Organization; Procedures for the 

Establishment, Approval, and Enforcement of 

Electric Reliability Standards, Order No. 672, 71 FR 

8662 (Feb. 17, 2006), FERC Stats. & Regs. ¶ 31,204, 

at P 290, order on reh’g, Order No. 672–A, 71 FR 

19814 (Apr. 18, 2006), FERC Stats. & Regs. ¶ 31,212 

(2006). 

9 Id. P 291. 

10North American Electric Reliability Corp., 119 

FERC ¶ 61,060, at P 432 (2007). 

11North American Electric Reliability Corp., 119 

FERC ¶ 61,260 (2007). 

12 Id. 

13See 18 CFR 39.5(a) (requiring the ERO to 

submit regional Reliability Standards on behalf of 

a Regional Entity). 

14The proposed regional Reliability Standards are 

not attached to the NOPR. They are, however, 

available on the Commission’s eLibrary document 

retrieval system in Docket No. RM09–9–000 and are 

posted on the ERO’s Web site, available at http:// 

www.nerc.com. 

Interconnection. Proposed PRC–004– 

WECC–1 addresses the analysis of 

misoperations that occur on 

transmission and generation protection 

systems and remedial action schemes in 

the Western Interconnection. Proposed 

VAR–002–WECC–1 is meant to ensure 

that automatic voltage regulators remain 

in service on synchronous generators 

and condensers in the Western 

Interconnection. Proposed VAR–501– 

WECC–1 is meant to ensure that power 

system stabilizers remain in service on 

synchronous generators in the Western 

Interconnection. Under section 

215(d)(5) of the Federal Power Act, the 

Commission proposes to direct WECC, 

through its standard development 

process, to develop modifications to 

these regional Reliability Standards to 

address specific issues, as discussed 

below. 

2. Related, the Commission also seeks 

comment on whether it should direct 

the ERO to develop modifications to the 

NERC Reliability Standards addressing 

the use of automatic voltage regulators 

and power system stabilizers. The 

Commission’s concerns regarding the 

NERC Reliability Standard are 

introduced here as they correspond with 

certain elements of the WECC standards 

that are the subject of the immediate 

proceeding. However, any proposal to 

direct the development of modifications 

to the NERC Reliability Standards 

would be addressed in a separate 

proceeding. 

I. Background 

A. Mandatory Reliability Standards 

3. 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. Once 

approved, the Reliability Standards may 

be enforced by the ERO, subject to 

Commission oversight, or by the 

Commission independently.3

4. Reliability Standards that the ERO 

proposes to the Commission may 

include Reliability Standards that are 

proposed to the ERO by a Regional 

Entity to be effective in that region.4 A 

Regional Entity is an entity that has 

been approved by the Commission to 

enforce Reliability Standards under 

delegated authority from the ERO.5

When the ERO reviews a regional 

Reliability Standard that would be 

applicable on an interconnection-wide 

basis and that has been proposed by a 

Regional Entity organized on an 

interconnection-wide basis, the ERO 

must rebuttably presume that the 

regional Reliability Standard is just, 

reasonable, not unduly discriminatory 

or preferential, and in the public 

interest.6 In turn, the Commission must 

give ‘‘due weight’’ to the technical 

expertise of the ERO and of a Regional 

Entity organized on an interconnectionwide basis.7

5. In Order No. 672, the Commission 

urged uniformity of Reliability 

Standards, but recognized a potential 

need for regional differences.8

Accordingly, the Commission stated 

that: 

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.9

B. Western Electricity Coordinating 

Council 

6. On April 19, 2007, the Commission 

accepted delegation agreements between 

NERC and each of eight Regional 

Entities.10 In its order, the Commission 

accepted WECC as a Regional Entity 

organized on an Interconnection-wide 

basis. As a Regional Entity, WECC 

oversees transmission system reliability 

in the Western Interconnection. The 

WECC region encompasses nearly 

1.8 million square miles, including 14 

western U.S. states, the Canadian 

provinces of Alberta and British 

Columbia, and the northern portion of 

Baja California in Mexico. 

7. In June 2007, the Commission 

approved eight regional Reliability 

Standards for WECC including the 

currently-effective WECC PRC–STD– 

001–1, PRC–STD–003–1, PRC–STD– 

005–1, VAR–STD–002a–1, and VAR– 

STD–002b–1.11 The Commission 

directed WECC to develop certain 

modifications to WECC PRC–STD–001– 

1, PRC–STD–003–1, PRC–STD–005–1, 

VAR–STD–002a–1, and VAR–STD– 

002b–1, as identified by NERC in its 

filing letter for the current standards.12

For example, the Commission 

determined that: (1) Regional definitions 

should conform to definitions set forth 

in the NERC Glossary of Terms Used in 

Reliability Standards (NERC Glossary), 

unless a specific deviation has been 

justified; and (2) documents that are 

referenced in the Reliability Standard 

should be attached to the Reliability 

Standard. The Commission also found 

that it is important that regional 

Reliability Standards and NERC 

Reliability Standards achieve a 

reasonable level of consistency in their 

structure so that there is a common 

understanding of the elements. 

II. Proposed Regional Reliability 

Standards 

8. On March 25, 2009, NERC 

submitted a petition (NERC Petition) to 

the Commission seeking approval of 

four WECC regional Reliability 

Standards.13 The four proposed WECC 

regional Reliability Standards are 

designated as FAC–501–WECC–1, PRC– 

004–WECC–1, VAR–002–WECC–1, and 

VAR–501–WECC–1.14 In its petition, 

NERC explains that the four proposed 

regional Reliability Standards are meant 

to replace certain currently approved 

regional Reliability Standards: 

• FAC–501–WECC–1 is intended to 

replace the current approved PRC–STD– 

005–1; 

• PRC–004–WECC–1 is intended to 

replace WECC PRC–STD–001–1 and 

PRC–STD–003–1; 

• VAR–002–WECC–1 is intended to 

replace WECC VAR–STD–002a–1; and 

• VAR–501–WECC–1 is intended to 

replace WECC VAR–STD–002b–1. 

NERC states that the NERC board of 

trustees approved the proposed regional 

Reliability Standards on October 29, 

2008, on the condition that WECC 

address certain shortcomings raised 

during the comment periods in the next 

revision of the Reliability Standards. 

9. NERC requests an effective date for 

FAC–501–WECC–1, VAR–002–WECC– 

1, and VAR–501–WECC–1 of the first 

day of the first quarter after Commission 

approval. For PRC–004–WECC–1, NERC 

requests an effective date of the first day 

of the second quarter after approval by 

the Commission. 


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15North American Electric Reliability Corp., 119 

FERC ¶ 61,260 at P 95. 

16The maintenance categories to be included in 

the transmission maintenance and inspection plan 

are included in Attachment 1 of FAC–501–WECC– 

1—‘‘Transmission Line and Station Maintenance 

Details.’’ 

17NERC Petition at 11, 14. 

III. Discussion 

10. As discussed below, the 

Commission proposes to approve FAC– 

501–WECC–1, PRC–004–WECC–1, 

VAR–002–WECC–1, and VAR–501– 

WECC–1 as just, reasonable, not unduly 

discriminatory or preferential, and in 

the public interest. In addition, under 

section 215(d)(5) of the FPA and section 

39.5(f) of our regulations, the 

Commission proposes to direct WECC to 

develop certain modifications to further 

clarify the requirements of the proposed 

WECC regional Reliability Standards. 

A. FAC–501–WECC–1—Transmission 

Maintenance 

11. NERC PRC–005–1 applies to all 

transmission and generator owners as 

well as distribution providers that own 

a transmission protection system. The 

Reliability Standard is meant to ensure 

that all transmission and generation 

protection systems affecting the 

reliability of the Bulk-Power System are 

maintained and tested. 

12. On June 8, 2007, the Commission 

approved a WECC regional Reliability 

Standard that corresponds to the NERC 

Reliability Standard PRC–005–1.15

WECC PRC–STD–005–1 applies to 

transmission owners and operators 

identified in an attached table titled 

‘‘Major WECC Transfer Paths in the Bulk 

Electric System’’ (WECC Transfer Path 

Table) and to owners of remedial action 

schemes identified in the ‘‘Major WECC 

Remedial Action Schemes’’ table (WECC 

Remedial Action Schemes Table). 

WECC PRC–STD–005–1 requires each 

transmission owner and operator of the 

specified transmission paths to perform 

maintenance and inspection on those 

paths as described by its transmission 

maintenance and inspection plan. The 

regional Reliability Standard identifies 

specific contents that each applicable 

transmission owner and transmission 

operator must include in its 

transmission maintenance and 

inspection plan. For example, a plan 

must include the scheduled interval for 

time-based maintenance, describe 

maintenance and inspection methods, 

provide relevant checklists or forms, 

and provide criteria for assessing the 

condition of a facility. Each applicable 

entity must retain all pertinent 

maintenance and inspection records for 

at least five years. Further each 

applicable entity must annually certify 

to WECC staff that it has developed, 

documented, and implemented a 

transmission maintenance and 

inspection plan. 

WECC and NERC Proposal 

13. NERC states that proposed FAC– 

501–WECC–1 is intended to replace 

approved WECC PRC–STD–005–1. The 

proposed regional Reliability Standard 

would apply to transmission owners 

that maintain transmission paths listed 

in the WECC Transfer Path Table, which 

is no longer an attachment to the 

Reliability Standard but is maintained 

on the WECC Web site. Proposed FAC– 

501–WECC–1 contains three main 

provisions. Requirement R1 provides 

that each transmission owner must have 

a transmission, maintenance, and 

inspection plan, and each transmission 

owner must annually review and update 

as required their transmission 

maintenance and inspection plan. 

Requirement R2 states that each 

transmission owner must include 

specified maintenance categories 16

when developing their transmission 

maintenance and inspection plan. 

Requirement 3 states that each 

transmission owner must implement 

and follow their transmission 

maintenance and inspection plan. 

14. NERC recommends approval of 

FAC–501–WECC–1, stating that the 

proposed regional Reliability Standard 

addresses matters that the NERC 

Reliability Standard does not. 

Specifically, according to NERC, FAC– 

501–WECC–1 requires, for specified 

transmission paths, a highly detailed 

maintenance and inspection plan for all 

transmission and substation equipment 

components, beyond the relay and 

communication system maintenance 

and testing required by the 

corresponding NERC Reliability 

Standard.17

NOPR Proposal 

15. The Commission proposes to 

approve FAC–501–WECC–1 as just, 

reasonable, not unduly discriminatory 

or preferential, and in the public 

interest. As explained by NERC, 

proposed FAC–501–WECC–1 appears to 

be more stringent, by virtue of its 

requirement for a highly detailed 

maintenance and inspection plan, 

compared to the corresponding NERC 

Reliability Standard. 

16. Further, in approving the 

currently-effective WECC PRC–STD– 

005–1, the Commission directed WECC 

to make certain modifications to the 

regional Reliability Standard. To 

address these directives, the proposed 

regional Reliability Standard no longer 

references any WECC Forms, and text 

regarding the Compliance Monitoring 

Period has been removed. The proposed 

regional Reliability Standard no longer 

refers to a regional definition of 

Disturbance, which conflicted with the 

definition of Disturbance in the NERC 

Glossary. Since the term is not included 

in any of the proposed regional 

Reliability Standards, the Commission 

proposes to direct the ERO to remove 

this regional definition from the NERC 

Glossary of terms upon Commission 

approval of FAC–501–WECC–1. The 

proposed regional Reliability Standard 

also removes the Sanctions Table and 

includes Violation Risk Factors, 

Violation Severity Levels, Measures, 

and Time Horizons, as directed by the 

Commission. These revisions appear 

generally consistent with the 

Commission’s directives, and signify 

meaningful improvement. Accordingly, 

we propose to approve FAC–501– 

WECC–1. We also propose to approve 

NERC’s petition to retire currentlyeffective WECC PRC–STD–005–1. 

17. While we propose to approve 

FAC–501–WECC–1, we have several 

concerns regarding the requirements of 

the proposed regional Reliability 

Standard that were not adequately 

addressed in the NERC petition. Below, 

we discuss our concerns and, in the 

absence of a satisfactory explanation 

from WECC, NERC and other 

commenters, under section 215(d)(5) of 

the FPA and section 39.5(f) of our 

regulations, we propose to direct that 

the Regional Entity develop 

modifications to the regional Reliability 

Standard, as discussed below. 

WECC Transfer Path Table 

18. First, we have a concern regarding 

the applicability of the proposed 

regional Reliability Standard. As 

mentioned above, WECC PRC–STD– 

005–1 is applicable to transmission 

owners or operators that maintain 

transmission paths listed in the WECC 

Transfer Path Table, which is attached 

to the regional Reliability Standard. The 

attachment identifies 40 major 

transmission paths in the Western 

Interconnection. By contrast, FAC–501– 

WECC–1 removes the attachment and, 

instead, directs transmission owners to 

the most current WECC Transfer Path 

Table, which is available on the WECC 

Web site. The table currently posted on 

the WECC Web site identifies the same 

40 major paths as the attachment to the 

approved regional Reliability 


srobinson on DSKHWCL6B1PROD with PROPOSALS
80400 Federal Register / Vol. 75, No. 245 / Wednesday, December 22, 2010 / Proposed Rules 

18See Major WECC Transfer Paths table available 

at http://www.wecc.biz/Standards/Approved%20

Standards/Supporting%20Tables/Table%20

Major%20Paths%204-28-08.pdf. It appears that the 

list of major transfer paths is relatively stable as the 

list has not changed for at least the past three years. 

19A System Operating Limit is defined in the 

NERC Glossary as ‘‘the value (such as MW, MVar, 

Amperes, Frequency or Volts) that satisfies the most 

limiting of the prescribed operating criteria for a 

specified system configuration to ensure operation 

within acceptable reliability criteria.’’ See NERC 

Glossary, available at http://www.nerc.com/docs/

standards/rs/Glossary_of_Terms_2010April20.pdf. 

20See W. Elec. Coordinating Council Reg’l 

Reliability Standard Regarding Automatic Time 

Error Corr., Order No. 723, 74 FR 25442 (May 28, 

2009), 127 FERC ¶ 61,176, at P 38–40 (2009). 

21WECC Reliability Standard PRC–STD–005–1, 

Requirement R1. 

22Proposed WECC Reliability Standard, FAC– 

501–WECC–1, Requirement R1, emphasis added. 

Standard.18 However, the Commission 

is concerned that, by referencing the 

WECC Transfer Path Table posted on 

the WECC Web site, the applicability of 

FAC–501–WECC–1 could change 

without review and approval by the 

ERO and the Commission, as required to 

make effective a modification to a 

Reliability Standard. 

19. The possibility for the 

applicability of the Reliability Standard 

to change at any time could create 

confusion for entities that need to 

comply as well as any compliance 

enforcement staff trying to determine 

which entities are responsible for 

complying with the Reliability 

Standard. Under section 215(d)(5) of the 

FPA, we propose to direct that WECC 

develop a modification to the Reliability 

Standard to address our concern. For 

example, WECC could include its 

criterion for identifying and modifying 

major transmission paths listed in the 

WECC Transfer Path Table and make an 

informational filing each time it makes 

a modification to the table. Another 

option would be for WECC to file its 

criterion with the Commission and post 

revised transfer path tables and 

referenced catalogs on its Web site 

before they become effective with 

concurrent notification to NERC and the 

Commission. Alternatively, the Regional 

Entity could include the WECC Transfer 

Path Table as an attachment to the 

modified Reliability Standard. In this 

way, the Commission would be able to 

verify that the Regional Entity is 

applying the requirements of the 

regional Reliability Standard in a just 

and reasonable manner. 

System Operating Limits (SOL) 

20. Second, the Commission is 

concerned about WECC’s use of the term 

System Operating limit, as it is defined 

in the NERC Glossary.19 Currently, 

WECC determines transfer capability 

based on a ‘‘rated system path’’ 

methodology and the table of Major 

WECC Transfer Paths and associated 

catalog identify the facilities that make 

up each rated system path. For at least 

ten years, WECC has used the defined 

term Operating Transfer Capability 

limits, and not System Operating Limit, 

to describe transmission limitations. 

WECC TOP–STD–007–0 defines 

Operating Transfer Capability limits as: 

* * * the maximum amount of actual 

power that can be transferred over direct or 

parallel transmission elements comprising: 

• An interconnection from one 

Transmission Operator area to another 

Transmission Operator area; or 

• A transfer path within a Transmission 

Operator area. 

The net schedule over an interconnection 

or transfer path within a Transmission 

Operator area shall not exceed the [operating 

transfer capability], regardless of the 

prevailing actual power flow on the 

interconnection or transfer path. 

Unlike a System Operating Limit, the 

definition of Operating Transfer 

Capability limits is limited to direct or 

parallel transmission elements between 

or within specific transmission 

operators. Moreover, the rating of a 

System Operating Limit, which is based 

on an operating criteria that is either 

thermally (based on facility ratings) or 

stability-based (based on transient 

stability, voltage stability, or system 

voltage limits) is the first element to 

calculate in order to determine the 

Operating Transfer Capability limit 

rating. 

21. Based on the above, it appears that 

a System Operating Limit is not the 

same as an Operating Transfer 

Capability limit. Yet, WECC and NERC 

believe that the terms can be used 

interchangeably and that WECC revised 

the regional Reliability Standard to refer 

to System Operating Limits to conform 

its terminology to the NERC Glossary. 

While we believe using NERC Glossary 

terminology is generally preferable,20

we are concerned that, in this instance, 

the use of a regional definition might be 

most appropriate. 

22. Specifically, the Commission is 

concerned that the introduction of the 

NERC Glossary definition of System 

Operating Limit in Requirement R1 of 

the proposed regional Reliability 

Standard could create confusion 

regarding which transmission owners 

are required to maintain a transmission 

maintenance and inspection plan. 

Requirement R1 of the approved WECC 

Reliability Standard requires 

transmission owners to inspect and 

maintain ‘‘all bulk power transmission 

elements (i.e., lines, stations and rights 

of way) included as part of the 

transmission facilities (or required to 

maintain transfer capability) impacting 

each of the transmission paths listed 

* * *.’’ 21 By contrast, Requirement R1 

of WECC’s proposed regional Reliability 

Standard would require transmission 

owners to maintain a transmission 

maintenance and inspection plan 

detailing their inspection and 

maintenance requirements that ‘‘apply 

to all transmission facilities necessary 

for System Operating Limits associated 

with each of the transmission paths 

identified in the WECC Transfer Path 

Table.’’ 22 Facilities that are System 

Operating Limits associated with 

transmission paths identified in the 

WECC Transfer Path Table are not 

necessarily on paths identified in the 

WECC Transfer Path Table. 

23. Thus, under the proposed 

language, Requirement R1 could apply 

to more transmission facilities than 

identified in the WECC Transfer Path 

Table. For example, a System Operating 

Limit for a rated path in the WECC 

Transfer Path Table could be defined by 

a facility on a path that is not identified 

in the WECC Transfer Path Table but 

which is associated with an identified 

path. Under these circumstances, it is 

unclear whether Requirement R1 would 

require maintenance on these facilities 

that are not identified in the WECC 

Transfer Path Table. If so, the 

requirement might need to apply to 

transmission owners that do not own 

any paths identified in the WECC 

Transfer Path Table. Accordingly, the 

Commission seeks comment as to 

whether, under Requirement R1, a 

transmission owner that owns a major 

path would be responsible for 

maintaining and inspecting 

transmission facilities owned by another 

entity if such facilities are ‘‘necessary for 

[System Operating Limits] associated 

with’’ the major path. 

Summary 

24. In summary, the Commission 

proposes to approve FAC–501–WECC– 

1. The Commission also proposes to 

approve NERC’s petition to retire 

currently-effective WECC PRC–STD– 

005–1. In addition, the Commission 

requests comment on two issues 

discussed above regarding the (1) Major 

WECC Transfer Path table, and (2) use 

of the term System Operating Limits. 


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23See NERC Petition at 11, 19–20. 

24See proposed regional Reliability Standard 

PRC–004–WECC–1, Section 4 (Applicability). 

B. PRC–004–WECC–1—Protection 

System and Remedial Action Scheme 

Misoperation 

Background—Currently-Effective PRC– 

STD–001–1 and PRC–STD–003–1 

25. Currently-effective WECC PRC– 

STD–001–1 applies to transmission 

operators or transmission owners of 40 

specified transmission paths. The 

regional Reliability Standard requires 

these entities to certify to WECC that all 

(1) protective relay applications and (2) 

protective relay settings and logic are 

appropriate for the specified 

transmission paths. It also requires that 

these entities, once every three years, 

certify that information is updated and 

accurate. 

26. WECC PRC–STD–001–1 

corresponds with NERC PRC–001–1, 

which addresses protection systems, 

requires transmission operators and 

generator operators to notify appropriate 

entities of relay or equipment failures 

and to coordinate when installing new 

or modified protection systems. 

27. Currently-effective WECC PRC– 

STD–003–1 applies to transmission 

operators and owners of the same 40 

specified transmission paths as 

Reliability Standard PRC–STD–001–1. 

WECC PRC–STD–003–1 requires 

applicable transmission operators and 

owners to ensure all transmission and 

generation protection system 

misoperations affecting the reliability of 

the bulk electric system are analyzed 

and mitigated. 

28. WECC PRC–STD–003–1 

corresponds to NERC PRC–003–1, 

which also relates to protection system 

misoperations. 

WECC and NERC Proposal 

29. NERC states that proposed PRC– 

004–WECC–1 is intended to replace two 

currently-effective WECC Reliability 

Standards, PRC–STD–001–1 and PRC– 

STD–003–1. NERC recommends 

approval of PRC–004–WECC–1, 

explaining that it is more stringent than 

the corresponding NERC PRC–004–1. 

Specifically, NERC explains that PRC– 

004–WECC–1 requires that all 

transmission and generation protection 

system and remedial action scheme 

misoperations on major WECC transfer 

paths be analyzed and mitigated within 

a specific timeframe. In contrast, NERC 

PRC–003–1 requires Regional Entities to 

establish procedures for review, 

analysis, reporting, and mitigation of 

transmission and generation Protection 

System Misoperations, but it does not 

specifically address the owners of the 

transmission and generation facilities. 

NERC also explains that NERC PRC– 

004–1 has requirements for protection 

system misoperations, but does not 

provide for the additional requirements 

included in PRC–004–WECC–1.23

30. Proposed PRC–004–WECC–1 

contains three main provisions. 

Requirement R1 provides that ‘‘System 

Operators and System Protection 

Personnel’’ of transmission owners and 

generator owners must analyze all 

protection system and remedial action 

scheme operations. Requirements R1.1 

and R1.2 identify time limits for the 

review and analysis of transmission 

element tripping, remedial action 

scheme operations and protection 

systems. Requirement R2 and the 

associated sub-requirements identify 

actions expected to be performed by 

transmission owners and generator 

owners for each protection system or 

remedial action scheme misoperation, 

including identifying timelines for 

removing the equipment that failed from 

service. Requirement R3 states that 

transmission owners and generator 

owners are to submit incident reports 

for any misoperation or repair of 

equipment that misoperated. 

31. Like the approved regional 

Reliability Standard, the proposed 

regional Reliability Standard is 

applicable to transmission owners and 

transmission operators, but it also is 

applicable to the generator owners that 

own facilities listed in the WECC 

Transfer Path Table and the WECC 

Remedial Action Schemes Table, which 

are available on WECC’s Web site.24 In 

addition, WECC proposes four new 

regional definitions for Functionally 

Equivalent Protection System, 

Functionally Equivalent Remedial 

Action Scheme, Security-Based 

Misoperation and Dependability Based 

Misoperation. 

NOPR Proposal 

32. The Commission proposes to 

approve PRC–004–WECC–1 as just, 

reasonable, not unduly discriminatory 

or preferential, and in the public 

interest. The Commission also proposes 

to approve NERC’s petition to withdraw 

currently-effective WECC PRC–STD– 

001–1 and WECC PRC–STD–003–1. As 

NERC explains above, it appears that the 

proposed PRC–004–WECC–1 is more 

stringent than the corresponding NERC 

PRC–004–1. Moreover, the proposed 

PRC–004–WECC–1 addresses 

Commission directives to develop 

modifications to the currently-effective 

regional Reliability Standards. 

33. Specifically, in approving the 

currently-effective WECC PRC–STD– 

001–1 and WECC PRC–STD–003–1, the 

Commission directed WECC to make 

certain modifications in developing 

replacement Reliability Standards. To 

address these directives, in the 

proposed Standard, WECC no longer 

references any WECC forms, and the 

text regarding the compliance 

monitoring period has been removed 

from the proposed Standard. In 

addition, the proposed regional 

Reliability Standard no longer 

references the regional definition of 

Disturbance, which did not match the 

NERC definition of Disturbance in the 

NERC Glossary. The proposed regional 

Reliability Standard also would remove 

the definition for Business Day. Since 

these terms are not included in any of 

the existing or proposed regional 

Reliability Standards, the Commission 

proposes to direct the ERO to remove 

these regional definitions from the 

NERC Glossary, upon approval of the 

PRC–004–WECC–1. The proposed 

regional Reliability Standard also 

removes the sanctions table and 

includes violation risk factors, violation 

severity levels, measures and time 

horizons. The Commission commends 

WECC for addressing these directives. 

34. Nevertheless, the Commission has 

concerns regarding several provisions of 

the proposed regional Reliability 

Standard, and seeks additional 

comments, as discussed below. 

WECC Transfer Path Table 

35. Similar to the discussion above 

regarding proposed FAC–501–WECC–1, 

we are concerned regarding the removal 

of the list of major transmission paths 

from proposed PRC–004–WECC–1 and 

the replacement with a link to the 

WECC Web site. Currently-effective 

WECC PRC–STD–003–1 is applicable to 

transmission owners or operators that 

maintain transmission paths listed in an 

attachment to the Reliability Standard. 

The attachment identifies 40 major 

transmission paths in the Western 

Interconnection. By contrast, the 

proposed PRC–004–WECC–1 removes 

attachment A and, instead, directs 

transmission owners to the most current 

WECC Transfer Path Table, which is 

available on the WECC Web site. 

Although the table posted on the WECC 

Web site lists the same 40 major paths 

as the attachment to the approved 

regional Reliability Standard, the 

Commission is concerned that by 

referencing the WECC Transfer Path 

Table posted on the WECC Web site, 

WECC could modify the document 

without Commission and industry 

notice and opportunity to respond. 

36. The possibility for the 

applicability of the Reliability Standard 


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25See NERC Glossary definitions for Protection 

System and Remedial Action Scheme. 

26NERC Glossary definition of Special Protection 

System (Remedial Action Scheme), available at 

http://www.nerc.com/docs/standards/rs/ 

Glossary_of_Terms_2010April20.pdf. 

27Order No. 723, 74 FR 25,442 at P 37–40. 

28See Proposed Reliability Standard PRC–004– 

WECC–1, proposed definition of Functionally 

Equivalent Protection System. 

to change at any time could create 

confusion for entities that need to 

comply as well as any compliance 

enforcement staff trying to determine 

which entities are responsible for 

complying with the Reliability 

Standard. Accordingly, the Commission 

seeks comment on how NERC and 

WECC intend to develop and provide 

notice of proposed changes to the WECC 

Transfer Path Table. We also seek 

comment on how NERC and WECC will 

ensure that changes to the applicability 

of the Reliability Standard will not 

undermine its effectiveness. We propose 

to direct WECC to develop a 

modification to the Reliability Standard 

to address our concern. For example, 

WECC could include its criterion for 

identifying and modifying major 

transmission paths listed in the WECC 

Transfer Path Table and make an 

informational filing each time it makes 

a modification to the table. Another 

option would be for WECC to file its 

criterion with the Commission and post 

revised transfer path tables and 

referenced catalogs on its Web site 

before they become effective with 

concurrent notification to NERC and the 

Commission. Alternatively, the Regional 

Entity could include the WECC Transfer 

Path Table as an attachment to the 

modified Reliability Standard. In this 

way, the Commission would be able to 

verify that the Regional Entity is 

applying the requirements of the 

regional Reliability Standard in a just 

and reasonable manner. 

Proposed Regional Definitions 

37. The proposed regional Reliability 

Standard includes four new regional 

definitions meant to apply only in 

WECC. Two of the proposed definitions 

(Functionally Equivalent Protection 

System and Functionally Equivalent 

Remedial Action Scheme) have added 

‘‘functionally equivalent’’ to terms that 

already exist in the NERC Glossary.25

The NERC Glossary definition of 

Protection System lists the types of 

equipment that can be used as 

protection systems (i.e. protective 

relays, associated communication 

systems, voltage and current sensing 

devices, station batteries and DC control 

circuitry). By contrast, the proposed 

WECC definition of Functionally 

Equivalent Protection System is not 

limited to any specific components or 

operating characteristics but, instead, 

defines Functionally Equivalent 

Protection Systems based on what they 

can do: ‘‘[e]ach Protection System can 

detect the same faults within the zone 

of protection and provide the clearing 

times and coordination needed to 

comply with all Reliability Standards.’’ 

In addition, the NERC Glossary defines 

Remedial Action Scheme, or Special 

Protection System, as ‘‘[a]n automatic 

protection system designed to detect 

abnormal or predetermined system 

conditions, and take corrective actions 

other than and/or in addition to the 

isolation of faulted components to 

maintain system reliability.’’ 26 By 

contrast, WECC proposes to define 

Functionally Equivalent RAS as ‘‘[a] 

Remedial Action Scheme that provides 

the same performance as follows: Each 

[Remedial Action Scheme] can detect 

the same conditions and provide 

mitigation to comply with all Reliability 

Standards. Each [Remedial Action 

Scheme] may have different 

components and operating 

characteristics.’’ 

38. The Commission has expressed 

concern about the unnecessary 

proliferation of glossary terms and has 

directed the ERO to be vigilant in 

assuring that a regional definition is 

consistent with both NERC Glossary 

terms and other approved Regional 

Entity glossary terms.27 In the instant 

proceeding, we are concerned that the 

proposed definitions of Functionally 

Equivalent Protection System and 

Functionally Equivalent RAS do not add 

any further clarity to the NERC Glossary 

terms. Accordingly, we seek an 

explanation from WECC and other 

interested commenters regarding 

whether these new terms are more 

inclusive than the corresponding NERC 

Glossary definitions and, if so, how. 

39. WECC proposes to define 

Functionally Equivalent Protection 

System as ‘‘[a] Protection System that 

provides performance as follows: Each 

Protection System can detect the same 

faults within the zone of protection 

* * *.’’ 28 It is unclear what the phrase 

‘‘detect the same faults’’ means within 

this definition. For example, this phrase 

could refer to the ability of one 

protection system to act as a back-up for 

another protection system. 

Alternatively, this phrase could imply 

that a protection system should be able 

to detect a fault within in a different 

sub-area of the same zone of protection. 

Accordingly, we seek comment on the 

meaning of the phrase ‘‘the same faults’’ 

within the definition. 

40. In addition, the current NERC 

Glossary definition of Misoperation 

includes: (1) Failure of a protection 

system to operate; (2) protection system 

operation for a fault outside of the 

planned zone of protection; and (3) 

unintentional operation of a protection 

system. Instead of using this NERC 

Glossary definition, WECC has 

developed two new terms: SecurityBased Misoperations and DependabilityBased Misoperations. The proposed 

WECC definitions address: (1) Incorrect 

operation of a protection system 

(Security-Based Misoperation); and (2) 

absence of a protection system to 

operate (Dependability-Based 

Misoperation). The bifurcation of the 

term Misoperation may be confusing 

because at least some of the 

requirements for each type of 

misoperation appear to overlap. We seek 

an explanation from WECC and other 

interested commenters regarding why 

these two new regional terms are 

necessary or desirable within the 

context of the proposed regional 

Reliability Standard, and how they will 

enhance reliability. 

Summary 

41. The Commission proposes to 

approve PRC–004–WECC–1 as just, 

reasonable, not unduly discriminatory 

or preferential, and in the public 

interest. The Commission also proposes 

to approve NERC’s petition to withdraw 

currently-effective WECC PRC–STD– 

001–1 and WECC PRC–STD–003–1. In 

addition, the Commission requests 

comment on three issues discussed 

above regarding (1) the Major WECC 

Transfer Path table; (2) whether the 

proposed regional terms, Functionally 

Equivalent Protection System and 

Functionally Equivalent RAS, are more 

inclusive than the corresponding NERC 

Glossary definitions; and, (3) the 

necessity of the proposed regional 

terms, Security-Based Misoperations 

and Dependability-Based Misoperations. 

C. VAR–002–WECC–1—Automatic 

Voltage Regulators 

Background 

42. Applicable to all generator 

operators and generator owners, NERC 

VAR–002–1.1b is meant to ensure that 

generators provide reactive and voltage 

control necessary to ensure voltage 

levels, reactive flows, and reactive 

resources are maintained within 

applicable facility ratings to protect 

equipment and the reliable operation of 

the Interconnection. Unless exempted 

by the transmission operator, each 


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29NERC defines ‘‘facility rating’’ as the maximum 

or minimum voltage, current, frequency, or real or 

reactive power flow through a facility that does not 

violate the applicable equipment rating of any 

equipment comprising the facility. 

30North American Electric Reliability Corp., 119 

FERC ¶ 61,260 at P 116. 

31NERC Petition at 34. 

32The levels of non-compliance assigned to the 

currently-effective regional Reliability Standard 

specify that there shall be a level 1 non-compliance 

if automatic voltage regulators are in service less 

than 98 percent but at least 96 percent or more of 

all hours during which the synchronous generating 

unit is on line for each calendar quarter. 

33Specifically, WECC explains ‘‘[t]he two percent 

allowance provides for time to start up generating 

facilities when the [automatic voltage regulators] 

are not yet in voltage control mode. It also allows 

for evaluation when the Generator Operators 

respond to unforeseen events.’’ WECC further 

explains ‘‘[p]eaking units often operate, for short 

periods, at low megawatt levels (below where 

manufactures recommend placing the [automatic 

voltage regulators] in-service). The exclusion below 

the five percent threshold during a calendar quarter 

permits the continued practice of allowing the 

operation of peaking units without penalty for 

having an out-of-service [automatic voltage control 

regulators] per the manufacturer recommendations.’’ 

NERC Petition at 34–35. 

34 Id. 

35 Id. at 34–35. 

36 Id. at 35. 

generator operator must maintain the 

generator voltage or reactive power 

output (within applicable facility 

ratings) 29 as directed by the 

transmission operator. Thus, the NERC 

Reliability Standard does not require 

generator operators to operate in 

automatic voltage control mode when 

they are operating outside of their 

facility rating, e.g., generators that are 

starting-up or generators used to serve 

peak load that typically run at low 

megawatt levels. 

43. On June 8, 2007, the Commission 

approved WECC VAR–STD–002a-1, 

which applies to generator operators of 

synchronous generating units equipped 

with automatic voltage regulators in the 

Western Interconnection. The stated 

purpose of the regional Reliability 

Standard is to ensure that automatic 

voltage control equipment on 

synchronous generators shall be kept in 

service at all times, except in specified 

circumstances, and that outages of such 

equipment must be coordinated. It 

requires that generator operators must 

normally operate automatic voltage 

control equipment in voltage control 

mode and set to respond effectively to 

voltage deviations. Nevertheless, the 

levels of non-compliance associated 

with the approved regional Reliability 

Standard permit generator operators to 

operate without automatic voltage 

control equipment for two percent of the 

operating hours in a calendar year 

without penalty. The Commission 

approved the current regional 

Reliability Standard as more stringent 

than the NERC Reliability Standard 

because the WECC regional Reliability 

Standard requires synchronous 

generators to have their automatic 

voltage regulators in service at all times 

with exceptions limited to specific 

circumstances. In contrast, the NERC 

Reliability Standard does not specify a 

list of exceptions, which could mean 

that transmission operators may, upon 

request of the generator operators, 

permit outages of automatic voltage 

regulators for a broader range of 

reasons.30

WECC and NERC Proposal 

44. NERC requests approval of VAR– 

002–WECC–1 (Automatic Voltage 

Regulators) and requests the concurrent 

retirement of WECC VAR–STD–002a–1. 

Proposed VAR–002–WECC–1 would be 

applicable to all generator operators and 

transmission operators that operate 

synchronous condensers. It would only 

apply to synchronous generators and 

synchronous condensers that are 

connected to the bulk electric system. 

45. Proposed VAR–002–WECC–1 

contains two requirements. Requirement 

R1 provides that each generator operator 

and transmission operator shall have 

automatic voltage regulators in service 

and in automatic voltage control mode 

for synchronous generators and 

synchronous condensers during 98 

percent of all operating hours unless 

exempted by the transmission operator. 

Sub-requirements R1.1 through R1.10 

detail the type of exemptions that the 

transmission operator may grant to the 

generator operator to excuse the 

generator from operating the automatic 

voltage regulator in automatic voltage 

control mode. Requirement R2 states 

that each generator operator and 

transmission operator must have 

documentation identifying the number 

of hours excluded for each subrequirement R1.1 through R1.10. 

46. WECC also proposes to replace the 

sanctions table with violation risk 

factors, violation severity levels, 

measures and time horizons. Finally, 

WECC proposes a new glossary term, 

Commercial Operation, to be applicable 

only in the Western Interconnection. 

47. During the standards development 

process, NERC expressed concern that 

proposed Requirement R1 was less 

stringent than the current NERC 

Reliability Standard.31 WECC 

responded that, although Requirement 

R1 appears to decrease the number of 

operating hours that a generator 

operator and transmission operator must 

keep automatic voltage regulators in 

service and in automatic voltage control 

mode from 100 percent to 98 percent, 

the 98 percent requirement is a 

translation of the limits set in the levels 

of non-compliance associated with the 

current regional Reliability Standard.32

In addition, WECC explained that the 

two percent allowance provides more 

time to start up generating facilities 

when the automatic voltage regulators 

are not yet in voltage control mode and 

allows for evaluation when a generator 

operator responds to an unforeseen 

event.33 WECC also pointed out that 

NERC VAR–002–1a does not place any 

restrictions on the length of time or 

range of acceptable reasons for operating 

in modes other than automatic voltage 

control mode. By contrast, WECC 

pointed out that the proposed VAR– 

002–WECC–1 limits the range of 

acceptable reasons and time for 

operating a generator without the 

automatic voltage regulator in service 

and controlling voltage.34

48. NERC also notes that, during the 

Reliability Standards development 

process, it expressed concern regarding 

sub-requirement R1.1, which includes 

an exemption for units operating less 

than five percent of all hours during a 

calendar quarter. NERC explains that it 

raised a concern that the proposed subrequirement ‘‘excludes the hours 

attributed to the synchronous generator 

or condenser that operates for less than 

five percent of all hours during any 

calendar quarter.’’ 35 WECC responded 

by explaining that there is no change in 

the basic five percent threshold between 

the existing regional Reliability 

Standard and the proposed regional 

Reliability Standard. WECC further 

explained that peaking units often 

operate, for short periods, at low 

megawatt levels (below where 

manufacturers recommend placing the 

automatic voltage regulators in-service). 

WECC states that the exclusion below 

the five percent threshold during a 

calendar quarter permits the continued 

practice of allowing the operation of 

peaking units without penalty for 

having an out-of-service automatic 

voltage regulator per the manufacturer’s 

recommendations.36

49. NERC states that, whereas NERC 

VAR–002–1a requires only that a 

generator operator notify its 

transmission operator when it either 

removes or operates the automatic 

voltage regulator in a condition other 

than automatic voltage control mode 

and does not limit the amount of time 

for such operations, the proposed WECC 

regional Reliability Standard sets only 

very limited circumstances for when a 

generator’s automatic voltage regulator 

should be operated in a mode other than 


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37 Id. at 29. 

38See id. at 31. 

39Proposed regional Reliability Standard VAR– 

002–WECC–1, Requirement R1. 

40See NERC Petition at 29. 

41NERC Petition at 34–35. 

42Order on Reliability Standard Interpretation, 

132 FERC ¶ 61,220, at P 27 (2010) (VAR 

Interpretation Order). 

the automatic voltage control mode and 

further limits the cumulative timeframe 

for doing so. Thus, NERC represents that 

the proposed regional Reliability 

Standard is more stringent than the 

NERC Reliability Standard.37

NOPR Proposal 

50. The Commission proposes to 

approve VAR–002–WECC–1 as just, 

reasonable, not unduly discriminatory 

or preferential, and in the public 

interest. Further, the Commission 

proposes the concurrent retirement of 

currently-effective WECC VAR–STD– 

002a–1. As represented by NERC, it 

appears that proposed VAR–002– 

WECC–1 is more stringent than the 

corresponding NERC Reliability 

Standard. 

51. Moreover, in approving the 

currently-effective WECC VAR–STD– 

002a–1, the Commission directed WECC 

to make certain modifications in 

developing a replacement Reliability 

Standard. To address these directives, 

WECC has added violation risk factors, 

violation severity levels, measures and 

time horizons, and has removed the 

sanctions table. WECC also has rewritten Requirement WR1 so that it does 

not include more than one main topic, 

removed language suggested to move to 

the Additional Compliance Information 

section, and removed the reference to 

Form A.5 to address recommendations 

made by NERC to modify WECC VAR– 

STD–002a–1.38 Thus, it appears that 

proposed VAR–002–WECC–1 maintains 

stringencies above the corresponding 

NERC Reliability Standard while 

providing additional clarity and 

conformity. Thus, the Commission 

proposes to approve the regional 

Reliability Standard. 

52. In addition, the Commission seeks 

comments on several issues posed by 

the WECC proposal, as discussed below. 

Automatic Voltage Regulators 

53. Requirement R1 of proposed 

VAR–002–WECC–1 provides that 

‘‘Generator Operators and Transmission 

Operators shall have [automatic voltage 

regulators] in service and in automatic 

voltage control mode 98% of all 

operating hours for synchronous 

generators or synchronous 

condensers.’’ 39 Requirement R1 then 

identifies ten circumstances in which a 

generator operator or transmission 

operator is excused from this 

requirement. By specifying the 

circumstances in which a generator 

operator or transmission operator is 

excused from operating in automatic 

voltage regulator mode, the proposed 

requirement appears to be more 

stringent than the requirement in NERC 

VAR–002–1.1b. 

54. The Commission believes that, 

where installed, automatic voltage 

regulators should be in-service at all 

times except in circumstances when the 

generator is operating at an output level 

that is not within the design parameters 

of the automatic voltage regulator or 

operations of the automatic voltage 

regulator would result in instability. 

Automatic voltage regulators are 

intended to assist in maintaining the 

reliability of the Bulk-Power System by 

controlling system voltages. In addition, 

System Operating Limits for 

transmission paths in the bulk electric 

system in the Western Interconnection 

assume that automatic voltage regulators 

are in service to control voltage to 

support the transfer capability.40 When 

automatic voltage regulators are out of 

service, the time required to 

appropriately respond to disturbances 

that cause voltage deviations would 

increase due to the time required to take 

manual action. If not corrected in 

sufficient time, these voltage deviations 

could lead to instability, uncontrolled 

separation and cascading outages. 

55. Although the proposed regional 

Reliability Standard would limit the 

circumstances in which a transmission 

operator or generator operator is 

excused from keeping automatic voltage 

regulators in automatic voltage control 

mode, it also provides a blanket 

exemption for two percent of all 

operating hours. In its petition, NERC 

explains that this exemption would 

accommodate generating facilities when 

they are starting up and when the 

automatic voltage regulators are not yet 

in voltage control mode. NERC also 

explains that this exemption allows for 

evaluation when the generator operators 

respond to unforeseen events.41 These 

limitations identified by NERC in its 

petition are not explicit in the 

requirements of the proposed regional 

Reliability Standard. 

56. We are concerned that the 

proposed provision is written more 

broadly than necessary. We believe it is 

appropriate to exempt automatic voltage 

regulators from being in-service during 

times when the generator is operating 

outside of applicable facility ratings. 

However, as proposed, Requirement R1 

would provide generators with a blanket 

exemption—equal to two percent of all 

operating hours—from the requirement 

to maintain automatic voltage regulators 

in-service. We seek comment on 

whether the Commission should direct 

WECC to develop a modification to the 

proposed regional Reliability Standard 

to address our concern. For example, 

consistent with NERC’s explanation, 

NERC could develop a modification 

replacing the blanket two percent 

exemption with a list of specific 

exemptions that would accommodate 

generating units that are starting up or 

responding to unforeseen events and are 

operating outside of applicable facility 

ratings. 

57. The purpose of NERC VAR–002– 

1.1b is to ensure appropriate reactive 

and voltage control are provided to 

maintain voltage levels, reactive flows, 

and reactive resources are within 

applicable facility ratings for Reliable 

Operation. Requirement R1 of VAR– 

002–1.1b states that the ‘‘Generator 

Operator shall operate each generator 

connected to the interconnected 

transmission system in the automatic 

voltage control mode (automatic voltage 

regulator in service and controlling 

voltage) unless the Generator Operator 

has notified the Transmission Operator.’’ 

Requirement R2 continues that ‘‘[u]nless 

exempted by the Transmission 

Operator, each Generator Operator shall 

maintain the generator voltage or 

Reactive Power output (within 

applicable Facility Ratings) as directed 

by the Transmission Operator.’’ Based 

on the same rationale articulated 

regarding the two percent exemption in 

the regional Reliability Standard, we 

have a concern regarding the 

corresponding NERC Reliability 

Standard. In particular, we seek 

comment on whether it would provide 

additional support for Bulk-Power 

System reliability to propose to direct 

the ERO to develop a modification to 

NERC VAR–002–1.1b. Specifically to 

clarify that, if a generator has an 

automatic voltage regulator installed, it 

must be in-service and controlling 

voltage at all times, equipment and 

facility ratings permitting, unless 

exempted by the transmission operator. 

We believe that such a modification 

could be consistent with Commission 

precedent.42 The Commission’s 

concerns regarding the NERC Reliability 

Standard are introduced here as they 

correspond with certain elements of the 

WECC standards that are the subject of 

the immediate proceeding. However, 

any proposal to direct the development 

of modifications to the NERC Reliability 


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43NERC Petition at 34–35. 

44 Id. at 35. 

45NERC Petition at Exhibit C, ‘‘Consideration of 

Comments for VAR–002–WECC–1—Automatic 

Voltage Regulator Comments were due January 2, 

2008.’’ 

Standards would be addressed in a 

separate proceeding. 

Exclusion of Synchronous Generators 

that Operate for Less Than Five Percent 

of All Hours During a Calendar Quarter 

58. Requirement R1.1 of proposed 

VAR–002–WECC–1 would allow 

exclusion of any synchronous generator 

or synchronous condenser that ‘‘operates 

for less than five percent of all hours 

during any calendar quarter’’ from 

operating with automatic voltage 

regulator in service and in automatic 

voltage control mode. During the 

Reliability Standard development 

process of the proposed regional 

Reliability Standard, NERC expressed 

concern regarding the exclusion of these 

hours.43 WECC responded by explaining 

that the ‘‘exclusion below the five 

percent threshold during a calendar 

quarter permits the continued practice 

of allowing the operation of peaking 

units without penalty for having an outof-service [automatic voltage regulator] 

per the manufacturer recommendations’’ 

since ‘‘[p]eaking units often operate, for 

short periods, at low megawatt levels 

(below where manufacture[r]s 

recommend placing the [automatic 

voltage regulators] in-service).’’ 44 Thus, 

it appears that WECC developed the five 

percent threshold provision to account 

for out-of-service automatic voltage 

regulators per the manufacturer 

recommendations regarding automatic 

voltage regulator design limitations. 

59. We are concerned, however, that 

the provision is written more broadly 

than necessary. It appears inefficient to 

allow an exemption for any 

synchronous generator or synchronous 

condenser that ‘‘operates for less than 

five percent of all hours during any 

calendar quarter’’ in order to address 

concerns about operation limits based 

on manufacture recommendations, and 

could potentially exempt other 

generator operators and transmission 

operators. The Commission seeks 

comment on whether it is necessary or 

desirable to direct WECC to develop a 

modification through its Reliability 

Standards development process that 

addresses this concern. For example, 

one reasonable solution would be to 

develop a replacement requirement that 

directly addresses the need for an 

exemption for peaking units operating 

automatic voltage regulators when 

necessary to satisfy manufacturer 

recommendations regarding the 

operation of an automatic voltage 

regulator. 

Automatic Voltage Regulator 

Replacement 

60. Proposed sub-requirement R1.6 

lengthens the automatic voltage 

regulator replacement timeline due to 

component failure from 15 months to 24 

months ‘‘to accommodate design and 

procurement especially for nuclear 

units.’’ 45 The ERO supported the 

extension of the outage time frame for 

the automatic voltage regulators. The 

Commission, giving due weight to 

WECC and the ERO, proposes to accept 

the Reliability Standard with the 

modification to this provision. 

61. We are concerned that allowing an 

additional nine months of nonoperation of automatic voltage regulator 

is not necessary for many, if not most, 

units. The additional replacement time 

could lead to a decrease in generation 

that can react in automatic voltage 

regulator mode. In the event of a 

contingency, this could have an impact 

on bulk electric system reliability. We 

believe that it may be appropriate to 

direct WECC to develop a modification 

to this provision to address our concern. 

For example, WECC could allow fifteen 

months for replacement with an 

opportunity to seek an extension up to 

nine months where justified. 

Alternatively, WECC could retain a 

fifteen month replacement period for 

non-nuclear generator units, and a 

twenty-four month replacement period 

for nuclear generator units. The 

Commission seeks comment from 

WECC, NERC and other interested 

commenters regarding the historical 

replacement period for nuclear and nonnuclear units, and the appropriateness 

of the Commission proposal. For 

example, comments could include 

documentation and timeline summary 

of previous ‘‘design and procurement’’ 

for automatic voltage regulator 

component failures demonstrating that 

automatic voltage regulator outages 

frequently last more than 15 months in 

order to support extending the 

replacement period. 

Responding to Voltage Deviations 

62. The current regional Reliability 

Standard provides that ‘‘[a]ll 

synchronous generators with automatic 

voltage control equipment shall 

normally be operated in voltage control 

mode and set to respond effectively to 

voltage deviations.’’ The proposed 

regional Reliability Standard removes 

this requirement but the NERC Petition 

does not provide any explanation why, 

or potential impact of, removing the 

provision. 

63. We seek further explanation from 

WECC, NERC, and public comment, on 

the impact of removing this provision 

from the currently-effective WECC 

regional Reliability Standard. We are 

concerned that, by removing the 

requirement for automatic voltage 

regulators to respond effectively to 

voltage deviations, the proposed 

regional Reliability Standard would not 

require entities to assess the 

performance of the automatic voltage 

regulators to ensure they are 

appropriately responding to voltage 

deviations to support reliability of the 

Bulk-Power System. 

Summary 

64. The Commission proposes to 

approve VAR–002–WECC–1 as just, 

reasonable, not unduly discriminatory 

or preferential, and in the public 

interest. Further, the Commission 

proposes the concurrent retirement of 

currently-effective WECC VAR–STD– 

002a–1. In addition, the Commission 

requests comment on issues discussed 

above regarding whether the 

Commission should direct WECC to 

develop modifications to the proposed 

regional Reliability Standard that 

would: (1) Replace the blanket two 

percent exemption with a list of specific 

exemptions; and (2) more narrowly 

tailor the exemption for any 

synchronous generator or synchronous 

conductor that operates less than five 

percent of all operating hours during 

any calendar quarter. The Commission 

also seeks comment on the historical 

replacement period for nuclear and nonnuclear units and whether the 

Commission should direct WECC to 

modify the regional Reliability Standard 

to limit the acceptable duration of 

automatic voltage regulator outages. 

Finally, the Commission seeks comment 

on the impact of removing the 

requirement that all generators with 

automatic voltage control equipment be 

operated in automatic voltage control 

mode and set to respond to voltage 

deviations. 

D. VAR–501–WECC–1—Power System 

Stabilizer 

Background 

65. Currently-effective WECC VAR– 

STD–002b–1 applies to generator 

operators with generators equipped with 

power system stabilizers. The current 

regional Reliability Standard requires 

that generator operators keep power 

system stabilizers in service at all times, 

except in specified circumstances. 

Further, currently-effective WECC VAR– 


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46See North American Electric Reliability Corp., 

119 FERC ¶ 61,260 at P 122. 

47NERC Petition at 36. 

48North American Electric Reliability Corp., 119 

FERC ¶ 61,260 at P 123. 

49Pursuant to WECC’s proposal, ‘‘Commercial 

Operation’’ is defined as ‘‘* * * receiving all 

approvals necessary for operation after completion 

of initial start-up testing.’’ Requirement R1.1 of 

VAR–501–WECC–1 excludes a unit from 

compliance when ‘‘the synchronous generator has 

not achieved Commercial Operation.’’ 

50NERC Petition at 40. 

51 Id. 

52The levels of non-compliance assigned to the 

currently-effective regional Reliability Standard 

specify that there shall be a level 1 non-compliance 

if power system stabilizers are in service less than 

98 percent but at least 96 percent or more of all 

hours during which the synchronous generating 

unit is on line for each calendar quarter. 

53See North American Electric Reliability Corp., 

119 FERC ¶ 61,260 at P 123. 

STD–002b–1 requires that power system 

stabilizers are properly tuned in 

accordance with WECC Criterion, 

referenced in the standard. This regional 

Reliability Standard does not have a 

corresponding NERC Reliability 

Standard. The Commission approved 

the current regional Reliability Standard 

because it addresses matters that are not 

addressed by a NERC Reliability 

Standard.46

WECC and NERC Proposal 

66. NERC requests approval of VAR– 

501–WECC–1 and asks for the 

concurrent retirement of the current 

WECC VAR–STD–002b–1. Proposed 

VAR–501–WECC–1 would apply to 

generator operators. Its purpose is to 

ensure that power system stabilizer on 

synchronous generators are kept in 

service. 

67. Proposed VAR–501–WECC–1 

contains two requirements. Requirement 

R1 provides that each generator operator 

with a synchronous generator equipped 

with a power system stabilizer must 

have the power system stabilizer in 

service during 98 percent of all 

operating hours. NERC explains that a 

power system stabilizer is part of the 

excitation control system of a generator 

used to increase power transfer levels by 

improving power system dynamic 

performance. Sub-requirements R1.1 

through R1.12 set forth exceptions to the 

operating requirement in Requirement 

R1. Requirement R2 states that each 

generator operator must have 

documentation identifying the number 

of hours excluded for each subrequirement R1.1 through R1.12. 

68. In the Petition, NERC and WECC 

explain that the purpose of VAR–501– 

WECC–1 is to ensure that power system 

stabilizers on synchronous generators 

are kept in service. NERC and WECC 

state that the corresponding NERC 

VAR–002–1.1b requires only that a 

generator operator notify its 

transmission operator when it removes 

the power system stabilizer from service 

and does not limit the amount of time 

for operating generators without power 

system stabilizers in service.47 NERC 

and WECC explain that, in contrast, 

proposed VAR–501–WECC–1 requires 

power system stabilizers to be in service 

except for specific conditions and for a 

cumulative time limit per quarter. Thus, 

according to NERC and WECC, the 

proposed regional Reliability Standard 

is more stringent than the corresponding 

NERC Reliability Standard. 

69. In addition, the Petition explains 

that the proposed regional Reliability 

Standard includes modifications to 

address the Commission’s directives in 

the June 2007 order that accepted 

WECC’s currently-effective standards.48

In particular, WECC proposes to replace 

the current sanctions table with 

violation risk factors, violation severity 

levels, measures and time horizons. 

Proposed VAR–501–WECC–1 removes 

the definition of ‘‘disturbance’’ and 

makes certain directed formatting 

revisions. WECC also proposes a new 

glossary term, Commercial Operation, to 

be applicable only in the Western 

Interconnection.49

70. In the Petition, NERC notes that, 

during the Reliability Standards 

development process, NERC expressed 

concern that the proposed regional 

Reliability Standard appears less 

stringent than the current regional 

Reliability Standard because it would 

reduce the number of hours that 

generator operators must keep power 

system stabilizers in service from 100 

percent to 98 percent of all operating 

hours.50 WECC responded to NERC’s 

concerns by explaining that the 

requirement had not been modified but 

rather was a translation of the existing 

levels of non-compliance into the 

requirements of the proposed regional 

Reliability Standard.51 WECC further 

explained that the levels of noncompliance for the current regional 

Reliability Standard allow generator 

operators to operate without power 

system stabilizers in service for two 

percent of all operating hours without 

penalty.52

71. NERC also notes that, during the 

regional Reliability Standards 

development process, NERC expressed 

concern that sub-requirement R1.1 of 

the proposed regional Reliability 

Standard excludes the hours for power 

system stabilizer operation attributed to 

the synchronous generator that operates 

for less than five percent of all hours 

during any calendar quarter. WECC 

responded that there is no change in the 

basic five percent threshold between the 

current and the proposed regional 

Reliability Standards. WECC further 

explained that peaking units often 

operate, for short periods, at low 

megawatt levels where manufacturers 

do not recommend using a power 

system stabilizer. WECC stated that the 

exclusion below the five percent 

threshold during a calendar quarter 

permits the continued practice of 

allowing the operation of peaking units 

without penalty for having an out-ofservice power system stabilizer per the 

manufacturer recommendations. 

NOPR Proposal 

72. The Commission proposes to 

approve VAR–501–WECC–1 as just, 

reasonable, not unduly discriminatory 

or preferential, and in the public 

interest. The Commission also proposes 

to approve NERC’s proposed retirement 

of currently-effective WECC VAR–STD– 

002b–1. 

73. As explained by NERC and WECC, 

proposed VAR–501–WECC–1 is more 

stringent than the corresponding NERC 

VAR–002–1.1b. Unlike the NERC 

Reliability Standard, proposed VAR– 

501–WECC–1 requires power system 

stabilizers to be in service except for 

specific conditions and for a cumulative 

time limit per quarter. Further, the 

proposed regional Reliability Standard 

reflects modifications to address the 

Commission’s concerns in the June 2007 

order.53 As discussed above, WECC has 

added violation risk factors, violation 

severity levels, measures and time 

horizons and has removed the reliability 

management system sanctions table. 

WECC also made formatting changes, 

removed the definition for 

‘‘Disturbance,’’ and included a definition 

of ‘‘Commercial Operation.’’ 

Accordingly, the Commission proposes 

to approve proposed VAR–501–WECC– 

1 because it appears to be more stringent 

than the requirements of the applicable 

NERC Reliability Standards while 

providing additional clarity and 

conformity over the current regional 

Reliability Standard. 

74. In addition to the modifications 

that address the Commission’s earlier 

directives, WECC’s proposal includes 

further modifications about which the 

Commission seeks comment. 

75. The language of proposed VAR– 

501–WECC–1 is similar to the proposed 

VAR–002–WECC–1, addressed above. 

As a result, the Commission discusses 

below several similar issues as 

discussed above regarding VAR–002– 

WECC–1. In particular, the same items 


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54Proposed regional Reliability Standard VAR– 

501–WECC–1, Requirement R1. 

55 Id. at 35. 

56 Id. at 40. 

57 Id. 

discussed above regarding the 

requirement that generator operators 

meet the requirements of the proposed 

regional Reliability Standard only 98 

percent of the time, and the exclusion 

of hours for generators that operate less 

than five percent of all hours during a 

calendar quarter, apply to this proposed 

regional Reliability Standard as well. 

In-Service Requirement 

76. As proposed, Requirement R1 of 

VAR–501–WECC–1 provides that 

‘‘Generator Operators shall have [power 

system stabilizers] in service 98 

[percent] of all operating hours for 

synchronous generators equipped with 

[power system stabilizers].’’ 54

Requirement R1 also sets forth twelve 

circumstances in which a generator 

operator is excused from this 

requirement. By specifying the 

circumstances in which a generator 

operator is excused from keeping its 

power system stabilizer in service, the 

proposed requirement appears to be 

more stringent than the currentlyeffective requirement in NERC VAR– 

002–1.1b, which requires only that a 

generator operator notify its 

transmission operator when there is a 

change in status of its power system 

stabilizer. 

77. The Commission believes that, 

where installed, power system 

stabilizers should be in-service at all 

times, equipment and facility ratings 

permitting, unless exempted by the 

transmission operator. Power system 

stabilizers are designed to ensure that 

the generator provides the proper 

damping to maintain system stability 

when generation and transmission 

outages occur.55 As NERC explains, in 

the Western Interconnection System, 

Operating Limits for transmission paths 

in the bulk electric system assume that 

power system stabilizers are in service 

to enhance system damping. When 

power system stabilizers are out of 

service, generators may not be able to 

dampen oscillations occurring on the 

system, which could lead to instability, 

uncontrolled separation and cascading 

outages. 

78. Although the proposed regional 

Reliability Standard would limit the 

circumstances in which a generator 

operator is excused from keeping power 

system stabilizers in-service, it also 

provides a blanket exemption for two 

percent of all operating hours. Similar to 

our discussion above on VAR–002– 

WECC–1, we believe that an exemption 

might be appropriate to accommodate 

generating facilities when they are 

starting up or operating outside of their 

facility ratings. However, proposed 

regional Reliability Standard provides 

no limitation as to when generating 

units may use the two percent 

exemption. 

79. We are concerned that the 

proposed provision is written more 

broadly than necessary. We believe it is 

appropriate to exempt power system 

stabilizers from being in-service during 

times when the generator is operating 

outside of applicable facility ratings. 

However, as proposed, Requirement R1 

would provide a blanket exemption for 

generators to maintain power system 

stabilizers in-service for two percent of 

all operating hours without 

qualification. We seek comment on 

whether the Commission should direct 

WECC to develop a modification to the 

proposed regional Reliability Standard 

that would address our concern. For 

example, WECC could develop a 

modification to replace the blanket two 

percent exemption with a more specific 

exemption that would accommodate 

generating units that are starting up or 

are operating outside of applicable 

facility ratings. 

80. Requirement R3 and R3.1 of VAR– 

002–1.1b require a generator operator to 

inform the transmission operator as 

soon as possible, but within 30 minutes, 

whenever there is a change in status or 

capability, and the expected duration of 

this change, of any reactive power 

resource including power system 

stabilizers. Based on similar concerns 

articulated above regarding the regional 

Reliability Standard, we have concerns 

about the NERC Reliability Standard 

and whether it adequately addresses 

power system stabilizer in-service 

obligations. In particular, we seek 

comment on whether it would be 

appropriate to propose to direct the ERO 

to develop a modification to NERC 

VAR–002–1.1b to clarify that, if a 

generator has a power system stabilizer 

installed, it must be in-service at all 

times, equipment and facility ratings 

permitting, unless exempted by the 

transmission operator. The 

Commission’s concerns regarding the 

NERC Reliability Standard are 

introduced here as they correspond with 

certain elements of the WECC standards 

that are the subject of the immediate 

proceeding. However, any proposal to 

direct the development of modifications 

to the NERC Reliability Standards 

would be addressed in a separate 

proceeding. 

Exclusion of Synchronous Generators 

That Operate for Less Than Five Percent 

of All Hours During a Calendar Quarter 

81. Requirement R1.1 of proposed 

VAR–501–WECC–1 would allow 

exclusion of any synchronous generator 

that operates for less than five percent 

of all hours during any calendar quarter 

from operating with power system 

stabilizer in service. During the 

Reliability Standard development 

process of the proposed regional 

Reliability Standard, NERC expressed 

concern regarding the exclusion of these 

hours.56 WECC responded by explaining 

that the ‘‘exclusion below the five 

percent threshold during a calendar 

quarter permits the continued practice 

of allowing the operation of peaking 

units without penalty for having an outof-service power system stabilizer per 

the manufacturer recommendations’’ 

since ‘‘[p]eaking units often operate, for 

short periods, at low megawatt levels 

(below where manufacture[r]s 

recommend placing the [power system 

stabilizer] in-service).’’ 57 Thus, it 

appears that WECC developed the five 

percent threshold provision to account 

for out-of-service power system 

stabilizer per the manufacturer 

recommendations. 

82. We seek comment on whether the 

proposed provision is written more 

broadly than necessary. Comments 

should address why it is appropriate to 

allow an exemption for any 

synchronous generator that ‘‘operates for 

less than five percent of all hours during 

any calendar quarter’’ to address 

concerns about limitations based on 

manufacturer recommendations, and 

could potentially exempt other 

generator operators. Based on the 

comments received, the Commission 

may propose to direct WECC to develop 

a modification through its Reliability 

Standards development process that 

addresses this concern. It appears that 

one reasonable solution would be to 

develop a replacement requirement that 

directly addresses the need for an 

exemption for peaking units that may 

not operate with power system 

stabilizers to satisfy manufacturer 

recommendations. 

Power System Stabilizer Replacement 

83. Proposed sub-requirement R1.10 

lengthens the power system stabilizer 

replacement timeline due to component 

failure from 15 months to 24 months ‘‘to 

accommodate design and procurement 


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58NERC Petition at Exhibit C, ‘‘Consideration of 

Comments for VAR–501–WECC–1—Power System 

Stabilizer Comments were due January 2, 2008.’’ 59 Id. Requirement WR1 of the currently-effective 

regional Reliability Standard provides: ‘‘Power 

System Stabilizers on generators shall be kept in 

service at all times, unless one of the exemptions 

listed in Section C (Measures) applies, and shall be 

properly tuned in accordance with WECC 

requirements.’’ 

especially for nuclear units.’’ 58 The 

Commission notes that no other 

evidence was provided in the record to 

support the extension of the outage time 

frame for the power system stabilizers 

from 15 months to 24 months. The 

Commission proposes to accept the 

Reliability Standard with this 

modification. 

84. However, since the rationale 

provided for the increased replacement 

period is based on the needs of nuclear 

power generators, we are concerned 

whether the additional nine months is 

necessary for many, if not most, units. 

The additional replacement time could 

lead to a decrease in generation units 

operating with the power system 

stabilizers. In the event of a 

contingency, this could have an impact 

on bulk electric system reliability. 

Accordingly, the Commission seeks 

comment from WECC, NERC and other 

interested commenters regarding the 

historical replacement period for 

nuclear and non-nuclear units, and the 

appropriateness of the Commission 

proposal. For example, comments could 

include documentation and timeline 

summary of previous ‘‘design and 

procurement’’ for power system 

stabilizer component failures 

demonstrating that power system 

stabilizer outages frequently last more 

than 15 months in order to support 

extending the replacement period. 

Power System Stabilizer Tuning 

85. The current regional Reliability 

Standard requires all generators with 

power system stabilizers to be properly 

tuned in accordance with the WECC 

requirements.59 The proposed regional 

Reliability Standard removes the tuning 

requirement without explanation or 

analysis of the potential impact of 

removing the provision. The 

Commission believes that, if the power 

system stabilizer is in service, it must be 

properly tuned to enhance system 

damping and maintain system stability. 

The Commission, therefore, seeks 

further explanation from WECC and 

NERC, and public comment on, the 

impact of removing the tuning 

requirement. 

86. This highlights another concern. 

Currently, no NERC Reliability Standard 

addresses power system stabilizer 

tuning. As explained above, a properly 

tuned power system stabilizer is 

necessary to enhance system damping. 

If a power system stabilizer is installed, 

periodic review of the power system 

stabilizer tuning is a significant 

component of maintaining system 

stability to ensure that system changes 

have not impacted the performance of 

the power system stabilizer in 

supporting system stability. 

Accordingly, the Commission seeks 

comment on whether it should propose 

to direct the ERO to develop a 

continent-wide Reliability Standard to 

address this concern. In particular, we 

seek comment on directing the ERO to 

develop a Reliability Standard with the 

purpose of ensuring that, if a power 

system stabilizer is installed, the power 

system stabilizer must be properly 

tuned for operation. Such a Reliability 

Standard would not require installation 

of a power system stabilizer, but would 

ensure that power system stabilizer that 

are in service would need to be tuned 

prior to service and the settings must be 

reviewed periodically to ensure the 

power system stabilizer operates 

properly to support the reliability of the 

Bulk-Power System. The Commission’s 

concerns regarding the NERC Reliability 

Standard are introduced here as they 

correspond with certain elements of the 

WECC standards that are the subject of 

the immediate proceeding. However, 

any proposal to direct the development 

of modifications to the NERC Reliability 

Standards would be addressed in a 

separate proceeding. 

Summary 

87. The Commission proposes to 

approve VAR–501–WECC–1 as just, 

reasonable, not unduly discriminatory 

or preferential, and in the public 

interest. Further, the Commission 

proposes the concurrent retirement of 

currently-effective WECC VAR–STD– 

002b–1. In addition, the Commission 

requests comment on issues discussed 

above regarding whether the 

Commission should direct WECC to 

develop modifications to the proposed 

regional Reliability Standard that 

would: (1) Replace the blanket two 

percent exemption with a list of specific 

exemptions; and (2) more narrowly 

tailor the exemption for any 

synchronous generator or synchronous 

conductor that operates less than five 

percent of all operating hours during 

any calendar quarter. The Commission 

also seeks comment on the historical 

replacement period for nuclear and nonnuclear units and whether the 

Commission should direct WECC to 

modify the regional Reliability Standard 

to limit the acceptable duration of 

power system stabilizer outages. Finally, 

the Commission seeks comment on 

whether it should propose to direct the 

ERO to develop a continent-wide 

Reliability Standard that ensures that, if 

a power system stabilizer is installed, 

the power system stabilizer must be 

properly tuned for operation. 

IV. Information Collection Statement 

88. The Office of Management and 

Budget (OMB) regulations require that 

OMB approve certain reporting and 

recordkeeping (collections of 

information) imposed by an agency. The 

information contained here is also 

subject to review under section 3507(d) 

of the Paperwork Reduction Act of 1995. 

As stated above, the Commission 

previously approved the current 

regional Reliability Standards that are 

proposed for replacement in this 

rulemaking. In the event that the 

Commission, after receiving comments, 

determines to adopt the four proposed 

Reliability Standards, they would not 

substantially change the entities’ current 

reporting burdens under the five 

currently effective, approved Reliability 

Standards. 

89. The four proposed WECC regional 

Reliability Standards (and the five 

currently approved regional Reliability 

Standards they are intended to replace) 

are designated as: FAC–501–WECC–1 

(Transmission Maintenance; to replace 

approved PRC–STD–005–1); PRC–004– 

WECC–1 (Protection System and 

Remedial Action Scheme Misoperation; 

to replace approved WECC PRC–STD– 

001–1 and PRC–STD–003–1); VAR– 

002–WECC–1 (Automatic Voltage 

Regulators; to replace approved WECC 

VAR–STD–002a–1); and VAR–501– 

WECC–1 (Power System Stabilizer; to 

replace approved WECC VAR–STD– 

002b–1). The proposed standards do not 

modify or otherwise affect the burdens 

related to the collection of information 

already in place. Thus, the proposed 

replacement Reliability Standards will 

neither increase the reporting burden 

nor impose any additional information 

collection requirements. 

Burden Estimate: The Commission 

does not foresee any additional impact 

on the reporting burden for small 

businesses, because the proposed 

modifications do not increase the 

existing burdens. However, we will 

submit this proposed rule to OMB for 

review. 

Title: Version One Regional 

Reliability Standard for Facilities 

Design, Connections, and Maintenance; 

Protection and Control; and Voltage and 

Reactive. 

Action: Proposed Collection FERC– 

725E. 

OMB Control No.: 1902–0246. 


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60Regulations Implementing the National 

Environmental Policy Act of 1969, Order No. 486, 

FERC Stats. & Regs. ¶ 30,783 (1987). 

61 18 CFR 380.4(a)(2)(ii). 

62 5 U.S.C. 601–612. 

63 13 CFR 121.101. 

64 13 CFR 121.201, Sector 22, Utilities & n. 1. 

Respondents: Businesses or other forprofit institutions; not-for-profit 

institutions. 

Frequency of Responses: On occasion. 

Necessity of the Information: This 

proposed rule proposes to approve four 

requested replacements (to five existing 

approved regional Reliability 

Standards). The proposed regional 

Reliability Standards help ensure the 

reliable operation of the Western 

Interconnection. 

Internal Review: The Commission 

proposes to approve FAC–501–WECC– 

1, PRC–004–WECC–1, VAR–002– 

WECC–1, and VAR–501–WECC–1 as 

just, reasonable, not unduly 

discriminatory or preferential, and in 

the public interest. In addition, under 

section 215(d)(5) of the FPA and section 

39.5(f) of our regulations, the 

Commission proposes to direct the ERO 

to develop certain modifications to 

further clarify the requirements of the 

proposed WECC regional Reliability 

Standards. 

90. Interested persons may obtain 

information on the reporting 

requirements by contacting the 

following: Federal Energy Regulatory 

Commission, 888 First Street, NE., 

Washington, DC 20426 [Attention: Ellen 

Brown, Office of the Executive Director, 

e-mail: DataClearance@ferc.gov, Phone: 

(202) 502–8663, fax: (202) 273–0873]. 

91. For submitting comments 

concerning the collection(s) of 

information and the associated burden 

estimate(s), please send your comments 

to the Commission and to the Office of 

Management and Budget, Office of 

Information and Regulatory Affairs, 

Washington, DC 20503 [Attention: Desk 

Officer for the Federal Energy 

Regulatory Commission, phone (202) 

395–4638, fax: (202) 395–7285]. For 

security reasons, comments to OMB 

should be submitted by e-mail to: 

oira_submission@omb.eop.gov. 

Comments submitted to OMB should 

include Docket Number RM09–14 and 

OMB Control Number 1902–0246. 

V. Environmental Analysis 

92. 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.60 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.61 The 

actions proposed herein fall within this 

categorical exclusion in the 

Commission’s regulations. 

VI. Regulatory Flexibility Act 

Certification 

93. The Regulatory Flexibility Act of 

1980 (RFA) 62 generally requires a 

description and analysis of final rules 

that will have significant economic 

impact on a substantial number of small 

entities. The RFA mandates 

consideration of regulatory alternatives 

that accomplish the stated objectives of 

a proposed rule and that minimize any 

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 

business.63 The SBA has established a 

size standard for electric utilities, 

stating that a firm is small if, including 

its affiliates, it is primarily engaged in 

the transmission, generation and/or 

distribution of electric energy for sale 

and its total electric output for the 

preceding twelve months did not exceed 

four million megawatt hours.64 The RFA 

is not implicated by this proposed rule 

because the modification discussed 

herein will not have a significant 

economic impact on a substantial 

number of small entities. Moreover, the 

proposed Reliability Standards reflect a 

continuation of existing requirements 

for these reliability entities. 

Accordingly, no regulatory flexibility 

analysis is required. 

VII. Comment Procedures 

94. 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 February 22, 2011. 

Comments must refer to Docket No. 

RM09–9–000, and must include the 

commenter’s name, the organization 

they represent, if applicable, and their 

address in their comments. 

95. The Commission encourages 

comments to be filed electronically via 

the eFiling link on the Commission’s 

Web site at http://www.ferc.gov. The 

Commission accepts most standard 

word processing formats. Documents 

created electronically using word 

processing software should be filed in 

native applications or print-to-PDF 

format and not in a scanned format. 

Commenters filing electronically do not 

need to make a paper filing. 

96. Commenters unable to file 

comments electronically must mail or 

hand-deliver an original copy of 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. 

97. 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 

98. 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. 

99. 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. 

100. 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 

ferconlinesupport@ferc.gov, or the 

Public Reference Room at (202) 502– 

8371, TTY (202) 502–8659. E-mail the 

Public Reference Room at 

public.referenceroom@ferc.gov. 

By direction of the Commission. 

Kimberly D. Bose, 

Secretary. 

[FR Doc. 2010–32157 Filed 12–21–10; 8:45 am] 

BILLING CODE 6717–01–P 


srobinson on DSKHWCL6B1PROD with PROPOSALS