150 FERC ¶ 61,109

UNITED STATES OF AMERICA

FEDERAL ENERGY REGULATORY COMMISSION

18 CFR Part 40

[Docket No. RM14-12-000; Order No. 804]

Demand and Energy Data Reliability Standard

(Issued February 19, 2015)

AGENCY: Federal Energy Regulatory Commission.

ACTION: Final rule.

SUMMARY: The Commission approves Demand and Energy Data Reliability Standard 

MOD-031-1 developed by the North American Electric Reliability Corporation (NERC), 

which the Commission has certified as the Electric Reliability Organization responsible 

for developing and enforcing mandatory Reliability Standards. In addition, the 

Commission directs NERC to develop a clarifying modification to the Reliability 

Standard.

EFFECTIVE DATE: This rule will become effective [Insert date 60 days after 

publication in the FEDERAL REGISTER].

FOR FURTHER INFORMATION CONTACT:

Susan Morris (Technical Information)

Office of Electric Reliability, Division of Reliability Standards and Security

Federal Energy Regulatory Commission 

888 First Street, NE 

Washington, DC 20426 

Telephone: (202) 502-6803

Susan.Morris@ferc.gov
Docket No. RM14

-12-000- 2 -

Robert T. Stroh (Legal Information)

Office of the General Counsel

Federal Energy Regulatory Commission

888 First Street, NE

Washington, DC 20426

Telephone: (202) 502-8473

Robert.Stroh@ferc.gov

SUPPLEMENTARY INFORMATION

:
150 FERC ¶ 61,109

UNITED STATES OF AMERICA

FEDERAL ENERGY REGULATORY COMMISSION

Before Commissioners: Cheryl A. LaFleur, Chairman;

 Philip D. Moeller, Tony Clark,

 Norman C. Bay, and Colette D. Honorable.

Demand and Energy Data Reliability Standard Docket No. RM14-12-000

ORDER NO. 804

FINAL RULE

(Issued February 19, 2015)

1. Pursuant to section 215(d) of the Federal Power Act (FPA),1 the Commission 

approves Reliability Standard MOD-031-1 (Demand and Energy Data) developed by the 

North American Electric Reliability Corporation (NERC), the Commission-certified 

Electric Reliability Organization (ERO). Reliability Standard MOD-031-1 provides 

authority for planners and operators to collect demand, energy and related data to support 

reliability studies and assessments. In addition, the Commission approves NERC’s

proposed definitions for the terms Demand Side Management and Total Internal Demand. 

The Commission also approves the associated implementation plan, violation risk factors 

and violation severity levels, and NERC’s proposed retirement of the currently-effective 

 1

 16 U.S.C. 824o(d) (2012). 
Docket No. RM14-12-000 - 2 -

Reliability Standards MOD-016-1.1, MOD-017-0.1, MOD-018-0, MOD-019-0.1, and 

MOD-021-1 (Existing MOD C Standards). 

2. Further, pursuant to section 215(d)(5) of the FPA, the Commission directs NERC 

to (1) develop a modification to Reliability Standard MOD-031-1 to clarify certain 

obligations to provide data to the Regional Entity and (2) consider the compliance 

obligations of an applicable entity upon receipt of a data request that seeks confidential 

information.

I. Background

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 are enforced by the ERO, 

subject to Commission oversight, or by the Commission independently. In 2006, NERC

submitted the initial version of Reliability Standards MOD-016-1.1, MOD-017-0.1, 

MOD-018-0, MOD-019-0.1, MOD-020-0, and MOD-021-1. The Existing MOD C 

Standards were designed to help ensure that historical and forecasted demand and energy 

data are available for past event validation and future system assessment. In particular, 

the Existing MOD C Standards, along with Reliability Standard MOD-020-0, require the 

collection of actual and forecast demand data necessary to analyze the resource needs to 

serve peak demand while maintaining a sufficient margin to address operating events. In 

Order No. 693, the Commission approved the Existing MOD C Standards and Reliability 
Docket No. RM14-12-000 - 3 -

Standard MOD-020-0.

2

 In addition, the Commission directed NERC to develop certain 

modifications to the standards. 

II. NERC Petition and NOPR

4. In its petition, NERC stated that Reliability Standard MOD-031-1 will provide

planners and operators access to actual and forecast demand and energy data, as well as 

other related information, needed to perform resource adequacy studies.3

 NERC 

explained that the proposed Reliability Standard also supports the continued development 

of the reliability assessments prepared by NERC. NERC stated that the proposed 

Reliability Standard improves the Existing MOD C Standards by: (1) streamlining them

to clarify data collection requirements; (2) including transmission planners as applicable 

entities that must report demand and energy data; (3) requiring applicable entities to 

report weather normalized annual peak hour actual demand data from the previous year 

to allow for meaningful comparison with forecasted values; and (4) requiring applicable 

entities to provide an explanation of how their forecasts compare to actual prior year 

data.

4

 2

 Mandatory Reliability Standards for the Bulk-Power System, Order No. 693, 

FERC Stats. & Regs. ¶ 31,242, at PP 1223, 1235, order on reh’g, Order No. 693-A, 

120 FERC ¶ 61,053 (2007). 

3

 NERC Petition at 3. The proposed MOD Reliability Standard is not attached to 

the Final Rule. The complete text of the Reliability Standard is available on the 

Commission’s eLibrary document retrieval system in Docket No. RM14-12 and is posted 

on the ERO’s web site, available at: http://www.nerc.com.

4

 NERC Petition at 4.
Docket No. RM14-12-000 - 4 -

5. Reliability Standard MOD-031-1 contains four requirements. Requirement R1

provides that each planning coordinator or balancing authority that identifies a need for 

the collection of demand and energy data must develop and issue a data request for such 

data to the relevant entities in its area. The requirement mandates that the data request 

identify: (i) the entities responsible for providing the data; (ii) the data to be provided by 

each entity; and (iii) the schedule for providing the data. Requirement R2 obligates the 

entities identified in a Requirement R1 data request to provide the requested data to their 

planning coordinator or balancing authority. Requirement R3 requires that the planning 

coordinator or the balancing authority provide the data collected under Requirement R2 

to their Regional Entity, if requested, to facilitate NERC’s development of reliability 

assessments. Requirement R4 requires entities to share their demand and energy data 

with any applicable entity that demonstrates a reliability need for such data.5

6. On September 18, 2014, the Commission issued a Notice of Proposed Rulemaking 

(NOPR) proposing to approve Reliability Standard MOD-031-1 as just, reasonable, not 

unduly discriminatory or preferential, and in the public interest. The Commission also

requested comments on the collection of demand and energy data. Specifically, the 

Commission sought comments on: (1) the Commission’s understanding that while a 

planning coordinator or balancing authority may collect demand and energy forecast data 

under a tariff or other arrangement, the planning coordinator or balancing authority 

 5

 Id. at 5.
Docket No. RM14-12-000 - 5 -

always retains the option to seek the necessary data through a Requirement R1 data 

request if, for example, the data are not forthcoming through other means; and 

(2) whether a planning coordinator or balancing authority that receives data through 

alternative mechanisms remains obligated to provide such data (i.e., within the scope of 

Requirement R1) to a Regional Entity upon request, as set forth in Requirement R3. 

Comments 

7. Comments on the NOPR were submitted by NERC, Edison Electric Institute 

(EEI), ISO New England, Inc. (ISO New England), International Transmission Company 

d/b/a ITCTransmission, Michigan Electric Transmission Company, LLC, ITC Midwest 

LLC, and ITC Great Plains, LLC (collectively, “ITC Companies”), PacifiCorp, and Idaho 

Power Company (Idaho Power). 

8. NERC, EEI, ISO New England support the Commission’s proposed approval of 

MOD-031-1, and ITC Companies “does not object” to the standard. NERC and other 

commenters provide responses to the Commission’s questions regarding the collection of 

demand and energy data, as discussed below.

9. NERC, EEI, Idaho Power, and ISO New England confirm the Commission’s

understanding that the planning coordinator or balancing authority retains the option to 

seek the necessary data through a Requirement R1 data request. NERC states that the 

Reliability Standard provides planning coordinators and balancing authorities the 

authority to issue data requests to compel applicable entities to provide the demand and 

energy data necessary to conduct reliability assessments. According to NERC, the 

Reliability Standard does not require planning coordinators and balancing authorities to 
Docket No. RM14-12-000 - 6 -

issue such data requests if they have alternative means of obtaining or developing that 

data but planning coordinators and balancing authorities may always use the authority 

provided by the Reliability Standard as a backstop to ensure they obtain complete and 

accurate data. 

10. With respect to the issue of whether a planning coordinator or balancing authority 

that receives data through alternative mechanisms remains obligated to provide such data 

to a Regional Entity upon request, NERC states that the intent of Requirement R3 was to 

require all planning coordinators and balancing authorities to provide the necessary 

demand and energy data to their respective Regional Entities to support the ERO

development of seasonal and long-term reliability assessments. NERC commits to 

modifying the language of Requirement R3 in its standard development process to clarify 

that planning coordinators and balancing authorities must provide their demand and 

energy data to their Regional Entity, upon request, whether that data is collected pursuant 

to the proposed Reliability Standard or through alternative arrangements. 

11. With regard to the Commission’s question about the obligations of a planning 

coordinator or balancing authority to share data gathered or obtained through alternative 

mechanisms, EEI comments that there is no obligation to require a planning coordinator 

or balancing authority to share such data in a similar manner as required by Requirement 

R3. EEI adds that it is not aware of any reason that might motivate independent system

operators (ISOs) or regional transmission organizations (RTOs) (in their role as planning 

coordinators or balancing authorities) to withhold such information from the Regional 

Entity. PacifiCorp agrees with EEI on this issue and favors a finding that Requirement 
Docket No. RM14-12-000 - 7 -

R3 should not apply if the planning coordinator or balancing authority receives data 

through alternative means. 

12. In contrast, Idaho Power and ISO New England assert that a planning coordinator 

or balancing authority that receives data within the scope of Requirement R1 through 

alternative mechanisms (as opposed to a data request) remains obligated to provide the 

data to a Regional Entity upon request pursuant to Requirement R3.

13. EEI also requests that the Commission clarify potential conflicts between a

transmission provider’s obligation to provide data under Reliability Standard MOD-031-

1 and its confidentiality obligations under the Open Access Transmission Tariff (OATT) 

or other confidentiality or nondisclosure restrictions. ITC Companies raises a concern 

with the inclusion of transmission planners as entities from whom the types of data 

specified may be requested because, according to ITC Companies, many transmission 

planners have delegated the collection of data to the ISO or RTO in which they are 

located.

III. Discussion

14. Pursuant to section 215(d)(2) of the FPA, the Commission approves Reliability 

Standard MOD-031-1 as just, reasonable, not unduly discriminatory or preferential, and 

in the public interest. We also approve the new and modified glossary definitions, 

implementation plan, associated violation risk factors and violation severity levels as well 

as the retirement of the Existing MOD C Standards. Reliability Standard MOD-031-1 

should continue to provide planners and operators access to complete and accurate 

demand and energy data to allow such entities to conduct their own resource adequacy 
Docket No. RM14-12-000 - 8 -

analyses to serve peak demand. As noted above, NERC, EEI, and ISO New England 

support approval of MOD-031-1, and no commenters oppose approval. ITC Companies 

“does not object” to the standard and “concurs with the Commission that MOD-031-1 

will meaningfully enhance the ability of transmission planners and operators to conduct 

resource adequacy analyses and plan for peak load conditions.”6

 

15. We also find that the Reliability Standard should provide for consistent 

documentation and information sharing practices for demand and energy data, and 

promotes efficient planning practices across the industry and supports the identification 

of needed system reinforcements. Further, the Commission finds that Reliability 

Standard MOD-031-1 improves the Existing MOD C Standards by providing applicable 

entities the authority to collect demand and energy data, and related information, to 

support reliability assessments and also includes transmission planners as applicable 

entities that must report demand and energy data. 

16. Further, as discussed below, we direct NERC to (1) develop a modification to 

Reliability Standard MOD-031-1 to clarify certain obligations to provide data to the 

Regional Entity and (2) consider the compliance obligations of an applicable entity upon 

receipt of a data request that seeks confidential information.

 6 ITC Comments at 2.
Docket No. RM14-12-000 - 9 -

A. Demand and Energy Data Issues Raised in the NOPR

17. As discussed above, the Commission sought comment in the NOPR on several 

questions in connection with the collection of demand and energy data. With regard to 

the responsive comments on the NOPR question regarding the collection of data through 

mechanisms other than data requests, the Commission accepts the explanation provided 

by NERC and other commenters that, while a planning coordinator or balancing authority 

may collect demand and energy forecast data under a tariff or other arrangement, the 

planning coordinator or balancing authority always retains the option to seek the 

necessary data through a Requirement R1 data request if, for example, the data are not 

forthcoming through other means. 

18. Further, the Commission raised a concern in the NOPR regarding whether a 

planning coordinator or balancing authority that receives data “through alternative 

mechanisms” remains obligated to provide such data (i.e., within the scope of 

Requirement R1) to a Regional Entity upon request, as set forth in Requirement R3. We 

accept NERC’s explanation that the “intent of Requirement R3 was to require all 

planning coordinators and balancing authorities to provide the necessary demand and 

energy data to their respective Regional Entities to support the [ERO]’s development of 

seasonal and long-term reliability assessments,” although “a strict reading” of 

Requirement R3 “indicates that it applies only to data collected pursuant to a data request 
Docket No. RM14-12-000 - 10 -

issued under this Reliability Standard.”7

 NERC has the statutory responsibility to

conduct periodic assessments of the reliability and adequacy of the Bulk-Power System, 

and we believe that it is incumbent on users, owners and operators subject to compliance 

with section 215 of the FPA to provide the necessary data to support such assessments.8

 

Accordingly, pursuant to section 215(d)(5) of the FPA and consistent with NERC’s 

comments,9 we direct NERC to develop a modification to MOD-031-1 through the 

standards development process to clarify that planning coordinators and balancing 

authorities must provide demand and energy data upon request of a Regional Entity, as

necessary to support NERC’s development of seasonal and long-term reliability 

assessments.

B. Other Issues

19. EEI seeks Commission clarification of a “potential conflict” between a 

transmission provider’s obligation to provide data under MOD-031-1 and the 

transmission provider’s confidentiality obligations under an OATT or other 

confidentiality restrictions.10 Under MOD-031-1, Requirement R2, an applicable entity 

must provide data requested by its planning coordinator or balancing authority in 

 7 NERC Comments at 2-3. See also EEI Comments at 3.

8 16 U.S.C. 824o(g).

9 See NERC Comments at 3.

10 See EEI Comments at 3-4 (citing Article 22.1.10 of the pro forma large 

generation interconnection agreement).
Docket No. RM14-12-000 - 11 -

accordance with the Requirement R1 data request provision. EEI notes that, under 

Requirement R4, an entity has 45 days to respond to a written request for data. Further, 

under Requirement 4.1, if an entity does not provide requested data because, inter alia, 

“providing the data would conflict with the Applicable Entity’s confidentiality, 

regulatory or security requirements, the Applicable Entity shall, within 30 calendar days 

of the written request, provide a written response to the requesting entity specifying the 

data that is not being provided and on what basis.” According to EEI, it is unclear “at 

what point a transmission provider’s obligation to ‘cooperate’ with the other Party in the 

formation of a confidentiality agreement or protective order ends, and its obligation as an 

Applicable Entity to disclose the requested information under either Requirements R1 or 

R4 begins.”11 

20. Requirement R1 specifies the planning coordinator or balancing authority shall 

issue a “data request to applicable entities in its area.” Applicable entities that are subject 

to providing data pursuant to Requirement R2 are transmission planners, balancing 

authorities, load-serving entities, and distribution providers. The transmission providers 

discussed by EEI may, in fact, be registered as one or more of the NERC functional 

entities that make up the applicable entities list in MOD-031-1. Requirement R4 includes 

provisions for an applicable entity to follow if a conflict arises. On this basis, the 

Reliability Standard appears to be clear. However, EEI’s concern that MOD-031-1 is not 

 11 EEI Comments at 5.
Docket No. RM14-12-000 - 12 -

clear regarding the compliance obligations of an applicable entity when required to 

provide data to a balancing authority or planning coordinator pursuant to a data request 

under the standard may have merit. Further, it may be possible in some circumstances, 

depending on the terms of the confidentiality provision at play, to provide data pursuant 

to a non-disclosure agreement. Therefore, rather than attempting to provide the 

clarification requested by EEI, the Commission directs NERC to consider EEI’s concern 

regarding the compliance obligations of an applicable entity upon receipt of a data 

request that seeks confidential information in the standard development process when it 

addresses the directive to clarify that planning coordinators and balancing authorities 

must provide demand and energy data upon request of a Regional Entity.

12

21. ITC Companies raises a concern with the inclusion of transmission planners as 

listed entities from whom the types of data specified may be requested because, 

according to ITC Companies, many transmission planners have delegated the collection 

of data to the ISO or RTO in which they are located. ITC Companies requests that the 

Commission recognize that agreements governing the reporting of demand and energy 

data such as those existing between ITC's operating subsidiaries and the ISOs/RTOs in 

which each operates are common, and thus provide that a transmission planner having 

such an arrangement with an ISO/RTO will be in compliance with data requests it 

receives under the Requirements R1 and R4. While the language of particular 

 12 See Order No. 693 FERC Stats. & Regs. ¶ 31,242, at P 188. 
Docket No. RM14-12-000 - 13 -

agreements is beyond the scope of the immediate proceeding, we agree with ITC 

Companies that Requirement R1 provides the flexibility to collect energy data through 

alternative mechanisms.13 

IV. Information Collection Statement

22. The Paperwork Reduction Act (PRA)14 requires each federal agency to seek and 

obtain Office of Management and Budget (OMB) approval before undertaking a 

collection of information directed to ten or more persons or contained in a rule of general 

applicability. OMB regulations require approval of certain information collection 

requirements imposed by agency rules.15 Upon approval of a collection(s) of 

information, OMB will assign an OMB control number and an expiration date. 

Respondents subject to the filing requirements of an agency rule will not be penalized for 

failing to respond to these collections of information unless the collections of information 

display a valid OMB control number.

23. Through issuance of this Final Rule, the Commission approves Reliability 

Standard MOD-031-1. As stated above, the Existing MOD C Standards were approved 

by the Commission in Order No. 693. All information collection estimates associated 

with the collection of demand and energy data and subsequent retention were assessed in 

 13 See NERC Petition at 22, 23.

14 44 U.S.C. 3501-3520.

15 See 5 CFR 1320.10.
Docket No. RM14-12-000 - 14 -

Order No. 693 and will not be repeated here. The Reliability Standard expands the actual 

data to be submitted in two areas: (1) weather normalized annual peak hour actual 

demand for the prior calendar year if this demand varies due to weather-related 

conditions (e.g., temperature, humidity or wind speed); and (2) summaries detailed in 

Requirement R1, Subparts 1.5.4 and 1.5.5. The additional data and summaries will 

increase reporting and preparation time for some applicable entities. Most entities 

already normalize their actual demand data based on weather. However, some entities 

may have a one-time cost of determining the method to “weather normalize” the actual 

demand data. Accordingly, the information collection costs will consist of an annual cost 

for all applicable entities and, for a small percentage, additional costs will occur during 

the first year of implementation.

Public Reporting Burden: Reliability Standard MOD-031-1 requires each “Applicable 

Entity” to provide the data requested by its planning coordinator or balancing authority in 

accordance with the data request issued pursuant to Requirement R1.16 Our estimate 

below regarding the number of respondents is based on the NERC Compliance Registry 

as of July 31, 2014. According to the NERC Compliance Registry, NERC has registered 

478 distribution providers, 469 load-serving entities, 179 transmission planners and 107 

balancing authorities. However, under NERC’s compliance registration program, entities 

 16 Requirement R1, Subpart 1.1 refers to “Applicable Entities” as the list of 

transmission planners, balancing authorities, load-serving entities and distribution 

providers that are required to provide the data.
Docket No. RM14-12-000 - 15 -

may be registered for multiple functions, so these numbers incorporate some double 

counting. The total number of unique entities that may be identified as a data provider

(e.g. applicable entity) in accordance with Reliability Standard MOD-031-1 will be 

approximately 561 entities registered in the United States as a distribution provider, loadserving entity, transmission planner and/or balancing authority.17 The Commission 

estimates the annual reporting burden and cost as follows:

RM14-12-000 Final Rule

Number and 

Type of 

Respondents

(1)

Annual 

Number of 

Responses 

per 

Respondent 

(2)

Total 

Number 

of 

Responses

(1)*(2)=(3)

Avg. 

Burden & 

Cost Per 

Response 

(4)

Total 

Annual 

Burden 

Hours & 

Total 

Annual 

Cost

(3)*(4)=(5)

Cost per 

Respondent18

(5)÷(1)

 17 This estimate assumes all of the unique entities will be identified to provide 

demand and energy data.

18 The estimated hourly costs (salary plus benefits) are based on Bureau of Labor 

Statistics (BLS) information (available at

http://bls.gov/oes/current/naics3_221000.htm#17-0000) for an electrical engineer 

($59.62/hour). 
Docket No. RM14-12-000 - 16 -

(One-time) 

Determine 

method to 

weather 

normalize 

annual peak 

hour actual 

demand.

2819

(DP, LSE, 

TP and/or 

BA)

20 1 28

240 hrs. & 

$14,309 

6,720 hours 

& $400,646 $14,309

(On-going) 

Develop 

summary in 

accordance 

w/

Requirement 

R1, Subparts 

1.5.4 and 

1.5.5.

561

(DP, LSE, 

TP and/or 

BA) 1 561

8 hrs. &

$477 

4,488 hours 

&

$267,575 $477

TOTAL

589

11,208 hours 

&

$668,221

Title: FERC-725L, Mandatory Reliability Standards for the Bulk-Power System: MOD 

Reliability Standards.

Action: Final rule.

OMB Control No: 1902-0261

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

 19 This value represents the number of entities that have not already determined a 

method to weather normalize annual peak actual demand data. We estimate 

approximately 5 percent of the applicable entities fall into this category.

20 DP = distribution provider, LSE = load-serving entity, TP = transmission 

planner and BA = balancing authority, are functions the applicable entities perform in 

conjunction or individually. We estimate the total number of unique entities performing 

one or more of these functions to be 561.
Docket No. RM14-12-000 - 17 -

Frequency of Responses: One-time and ongoing.

Necessity of the Information: Reliability Standard MOD-031-1 implements the 

Congressional mandate of the Energy Policy Act of 2005 to develop mandatory and 

enforceable Reliability Standards to better ensure the reliability of the nation’s BulkPower System. Specifically, the purpose of the Reliability Standard is to provide 

authority for applicable entities to collect demand, energy and related data to support 

reliability studies and assessments and to enumerate the responsibilities and obligations 

of requestors and respondents of that data. 

Internal Review: The Commission has reviewed the requirements pertaining to the 

Reliability Standard for the Bulk-Power System and determined that the approved

requirements are necessary to meet the statutory provisions of the Energy Policy Act of 

2005. These requirements conform to the Commission’s plan for efficient information 

collection, communication and management within the energy industry. The 

Commission has assured itself, by means of internal review, that there is specific, 

objective support for the burden estimates associated with the information requirements. 

Interested persons may obtain information on the reporting requirements by contacting: 

Federal Energy Regulatory Commission, 888 First Street, NE, Washington, DC 20426 

[Attention: Ellen Brown, Office of the Executive Director, e-mail: 

DataClearance@ferc.gov, Phone: (202) 502-8663, fax: (202) 273-0873]. Comments on 

the requirements of this rule may also be sent to the Office of Information and Regulatory 

Affairs, Office of Management and Budget, Washington, DC 20503 [Attention: Desk 

Officer for the Federal Energy Regulatory Commission]. For security reasons, comments 
Docket No. RM14-12-000 - 18 -

should be sent by e-mail to OMB at oira_submission@omb.eop.gov. Comments 

submitted to OMB should refer to FERC-725L and OMB Control No. 1902-0261.

V. Regulatory Flexibility Act Certification

24. The Regulatory Flexibility Act of 1980 (RFA)21 generally requires a description 

and analysis of final rules that will have significant economic impact on a substantial 

number of small entities.

25. The Small Business Administration (SBA) revised its size standard (effective 

January 22, 2014) for electric utilities from a standard based on megawatt hours to a 

standard based on the number of employees, including affiliates.22 Under SBA’s new 

size standards, transmission owners and transmission operators likely come under the 

following category and associated size threshold: Electric bulk power transmission and 

control, at 500 employees.23 The Reliability Standard applies to 561 entities. 

Comparison of the applicable entities with the Commission’s small business data 

indicates that approximately 249 are small entities.

24 Of these, the Commission estimates

 21 5 U.S.C. 601-612.

22 SBA Final Rule on “Small Business Size Standards: Utilities,” 78 FR 77,343 

(Dec. 23, 2013).

23 13 CFR 121.201, Sector 22, Utilities. 

24 The Small Business Administration sets the threshold for what constitutes a 

small business. Public utilities may fall under one of several different categories, each 

with a size threshold based on the company’s number of employees, including affiliates, 

the parent company, and subsidiaries. The possible categories for the applicable entities 

have a size threshold ranging from 250 employees to 1,000 employees. For the analysis 

(continued...)
Docket No. RM14-12-000 - 19 -

that approximately five percent, or twelve of these small entities expect to be affected by 

the new requirements of the proposed Reliability Standard. The Commission estimates

that the small entities that will be affected by Reliability Standard MOD-031-1 will incur 

one-time compliance costs ranging up to $14,309 (i.e. the cost of determining the method 

of weather normalizing annual peak hour actual demand), plus the annual development of 

summary narratives in accordance with Requirement R1, Subparts 1.5.4 and 1.5.5,

resulting in costs of $477. 

26. Accordingly, the Commission certifies that the Reliability Standard will not have a 

significant economic impact on a substantial number of small entities.

VI. Environmental Analysis

27. 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.25 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 

 

in this proposed rule, we are using the 1,000 employee threshold for each applicable 

entity type.

25 Regulations Implementing the National Environmental Policy Act of 1969, 

Order No. 486, 52 FR 47897 (Dec. 17, 1987), FERC Stats. & Regs., Regulations 

Preambles 1986-1990 ¶ 30,783 (1987).
Docket No. RM14-12-000 - 20 -

not substantially change the effect of the regulations being amended.26 The actions 

proposed herein fall within this categorical exclusion in the Commission’s regulations.

VII. Document Availability

28. In addition to publishing the full text of this document in the Federal Register, the 

Commission provides all interested persons an opportunity to view and/or print the 

contents of this document via the Internet through the Commission's Home Page 

(http://www.ferc.gov) and in the Commission's Public Reference Room during normal 

business hours (8:30 a.m. to 5:00 p.m. Eastern time) at 888 First Street, NE, Room 2A, 

Washington, DC 20426.

29. From the Commission's Home Page on the Internet, this information is available 

on eLibrary. The full text of this document is available on eLibrary in PDF and 

Microsoft Word format for viewing, printing, and/or downloading. To access this 

document in eLibrary, type the docket number excluding the last three digits of this 

document in the docket number field.

30. User assistance is available for eLibrary and the Commission’s website during 

normal business hours from the Commission’s Online Support at 202-502-6652 (toll free 

at 1-866-208-3676) or email at ferconlinesupport@ferc.gov, or the Public Reference 

Room at (202) 502-8371, TTY (202) 502-8659. E-mail the Public Reference Room 

at public.referenceroom@ferc.gov.

 26 18 CFR 380.4(a)(2)(ii).
Docket No. RM14-12-000 - 21 -

VIII. Effective Date and Congressional Notification 

31. These regulations are effective [INSERT DATE 60 days after publication in the 

FEDERAL REGISTER]. The Commission has determined, with the concurrence of the 

Administrator of the Office of Information and Regulatory Affairs of OMB, that this rule 

is not “major rule” as defined in section 351 of the Small Business Regulatory 

Enforcement Fairness Act of 1996. 

By the Commission.

( S E A L )

Nathaniel J. Davis, Sr.,

Deputy Secretary.