144 FERC ¶ 61,221

UNITED STATES OF AMERICA

FEDERAL ENERGY REGULATORY COMMISSION

18 CFR Part 40

[Docket No. RM12-16-000; Order No. 785]

Generator Requirements at the Transmission Interface 

(Issued September 19, 2013)

AGENCY: Federal Energy Regulatory Commission.

ACTION: Final rule.

SUMMARY: Pursuant to section 215 of the Federal Power Act, the Federal Energy 

Regulatory Commission (Commission) approves modifications to four existing 

Reliability Standards submitted by the North American Electric Reliability Corporation 

(NERC), the Commission certified Electric Reliability Organization. Specifically, the 

Commission approves Reliability Standards FAC-001-1 (Facility Connection 

Requirements), FAC-003-3 (Transmission Vegetation Management), PRC-004-2.1a 

(Analysis and Mitigation of Transmission and Generation Protection System 

Misoperations), and PRC-005-1.1b (Transmission and Generation Protection System 

Maintenance and Testing). The modifications improve reliability either by extending 

applicability of the Reliability Standard to certain generator interconnection facilities, or 

by clarifying that the existing Reliability Standard is and remains applicable to generator 

interconnection facilities. The Commission also approves the related Violation Risk 

Factors and Violation Severity Levels, as well as the implementation plan and effective 

dates proposed by NERC. 
Docket No. RM12-16-000 ii

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

(202) 502-6803

susan.morris@ferc.gov

Julie Greenisen (Legal Information)

Office of the General Counsel

Federal Energy Regulatory Commission

888 First Street, NE

Washington, DC 20426

(202) 502-6362

julie.greenisen@ferc.gov

SUPPLEMENTARY INFORMATION: 
144 FERC ¶ 61,221

UNITED STATES OF AMERICA

FEDERAL ENERGY REGULATORY COMMISSION

Generator Requirements at the 

Transmission Interface 

Docket No. RM12-16-000

ORDER NO. 785

FINAL RULE

(Issued September 19, 2013)

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

approves modifications to four existing Reliability Standards submitted by the North 

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

Reliability Organization. Specifically, the Commission approves Reliability Standards 

FAC-001-1 (Facility Connection Requirements), FAC-003-3 (Transmission Vegetation 

Management), PRC-004-2.1a (Analysis and Mitigation of Transmission and Generation 

Protection System Misoperations), and PRC-005-1.1b (Transmission and Generation 

Protection System Maintenance and Testing). The modifications to these standards 

improve reliability either by extending their applicability to certain generator 

interconnection facilities, or by clarifying that the existing Reliability Standard is and 

remains applicable to generator interconnection facilities. The Commission also 

approves the related Violation Risk Factors and Violation Severity Levels, as well as the 

implementation plan and effective dates proposed by NERC. 

 1 16 U.S.C. 824o (2006). 
Docket No. RM12-16-000 - 2 -

I. Background

A. Regulatory Background - Section 215 of the FPA

2. Section 215 of the FPA requires a Commission-certified Electric Reliability 

Organization (ERO) to develop mandatory and enforceable Reliability Standards, which 

are subject to Commission review and approval.2

 Once approved, the Reliability 

Standards may be enforced either by the ERO (subject to Commission oversight), or by 

the Commission independently.3

3. In 2006, the Commission established a process to select and certify an ERO4 and, 

subsequently, certified NERC as the ERO.5

 In 2007, in Order No. 693, the Commission 

approved 83 Reliability Standards submitted by NERC, including initial versions of 

Reliability Standards FAC-001, FAC-003, PRC-004, and PRC-005.6

 Further, in Order 

No. 693, the Commission approved NERC’s compliance registry process, including 

NERC’s Statement of Compliance Registry Criteria (Registry Criteria), which describes 

 2 Id. 824o(c) and (d). 

3 See id. 824o(e).

4 Rules Concerning Certification of the Electric Reliability Organization; and 

Procedures for the Establishment, Approval and Enforcement of Electric Reliability 

Standards, Order No. 672, FERC Stats. & Regs. ¶ 31,204, order on reh’g, Order 

No. 672-A, FERC Stats. & Regs. ¶ 31,212 (2006). 

5 North American Electric Reliability Corp., 116 FERC ¶ 61,062, order on reh’g 

and compliance, 117 FERC ¶ 61,126 (2006), aff’d sub nom. Alcoa, Inc. v. FERC, 

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

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

FERC Stats. & Regs. ¶ 31,242 (2007) (Order No. 693), order on reh’g, Order No. 693-A, 

120 FERC ¶ 61,053 (2007).
Docket No. RM12-16-000 - 3 -

how NERC and the Regional Entities7 will identify the entities that should be registered 

for compliance with mandatory Reliability Standards.8

 While that process allows a 

Regional Entity to register an entity over its objection, NERC’s Rules of Procedure 

provide a mechanism for NERC review of the Regional Entity’s registration decision 

and, ultimately, for appeal to the Commission if NERC upholds the Regional Entity’s 

decision.9

B. Related Commission Orders and Genesis of Project 2010-07 

4. In several fact-specific cases on appeal from a NERC registration determination, 

the Commission has addressed the need to apply Reliability Standard requirements that 

are generally applicable to a registered transmission owner or transmission operator to the 

owner or operator of a generator interconnection facility or tie-line. In New Harquahala 

Generating Co., LLC, 123 FERC ¶ 61,173 (2008) (Harquahala), the Commission upheld 

NERC’s registration of New Harquahala Generating Company (Harquahala) as a 

transmission owner and transmission operator, agreeing that Harquahala’s 26-mile, 

500 kV generator tie-line was “material to the reliability of the bulk power system.”10 

The Commission went into some detail concerning the impact on the transmission 

 7 NERC is authorized to delegate certain authority to regional entities as 

prescribed by FPA section 215(e)(4). See 16 U.S.C. 824o(e)(4). 

8 Order No. 693, FERC Stats. & Regs. ¶ 31,242 at PP 92-95. The Commission has 

approved subsequent amendments to the Registry Criteria. See, e.g., North American 

Electric Reliability Corp., 122 FERC ¶ 61,101 (2008). 

9 Rules of Procedure of the North American Electric Reliability Corporation, Rule 

501.1.3.4.

10 Harquahala, 123 FERC ¶ 61,173 at P 44.
Docket No. RM12-16-000 - 4 -

network of an event on Harquahala’s facilities,11 and noted that it was affirming the 

Western Electricity Coordinating Council’s (WECC’s) and NERC’s findings “based on 

the specific facts of this case.”12 Similarly, in Cedar Creek Wind Energy, LLC, 

135 FERC ¶ 61,241 (2011) (Cedar Creek), the Commission upheld the registration of 

two wind farm owners, Milford Wind Corridor Phase I, LLC (Milford) and Cedar Creek 

Wind Energy, LLC (Cedar Creek), as transmission owners and transmission operators, 

again based on the specific tie-line facilities involved.13 

5. In both Harquahala and Cedar Creek, the Commission found that there would be 

a reliability risk if certain Reliability Standards generally applicable to transmission 

owners and operators were not also applied to Harquahala, Cedar Creek and Milford, and 

cited to specific Reliability Standards and requirements that should apply to those 

entities. However, the Commission recognized that it may not be appropriate to require 

these entities to comply with all Reliability Standards otherwise applicable to 

transmission owners and operators, and in each case ordered NERC to negotiate with the 

generating company to develop a list of transmission owner and transmission operator 

Reliability Standard requirements applicable to that individual entity.14 

 11 See id. PP 45-55.

12 Id. P 44. 

13 Cedar Creek Wind Energy, LLC, 135 FERC ¶ 61,241 (Cedar Creek), order on 

reh’g and clarification, 137 FERC ¶ 61,141 (2011), order on compliance filing, 

139 FERC ¶ 61,214 (2012) (Cedar Creek Compliance Order).

14 See Harquahala, 123 FERC ¶ 61,173 at PP 56-57; Cedar Creek, 135 FERC

¶ 61,241 at PP 88-89. 
Docket No. RM12-16-000 - 5 -

On December 21, 2011, NERC submitted its compliance filing to the Cedar Creek order 

identifying which standards should apply to the registered entities subject to that order. 

In accepting NERC’s filing, the Commission noted that the Cedar Creek order did not 

preclude NERC from pursuing a generic approach through the standards development 

process to determine which Reliability Standards should apply to generators.15 

6. After the Harquahala decision, NERC announced the formation of an Ad Hoc 

Group for Generator Requirements at the Transmission Interface (Ad Hoc Group) to 

address concerns about perceived reliability gaps associated with generator 

interconnection facilities.16 The Ad Hoc Group issued a report (Ad Hoc Group Report) 

suggesting a fairly broad approach to address these perceived gaps, including proposed 

changes to standard applicability and requirement language, as well as the introduction of 

two new terms for the Glossary of Terms Used in NERC Reliability Standards (NERC 

Glossary or Glossary).

17 NERC initiated Project 2010-07 on January 15, 2010, following 

the issuance of a standard authorization request as developed by the Ad Hoc Group.18

C. Revised Reliability Standards and NERC Petition 

7. On July 30, 2012, NERC filed a petition (NERC Petition or Petition) seeking 

Commission approval of proposed Reliability Standards FAC-001-1, FAC-003-3, PRC-

 15 Cedar Creek Compliance Order, 139 FERC ¶ 61,214 at P 19.

16 See NERC Petition at 11. 

17 Id.; see also Final Report of the Ad Hoc Group for Generator Requirements at 

the Transmission Interface (Nov. 16, 2009), available at: www.nerc.com/files/GOTO_Final_Report_Complete_2009Nov16.pdf. 

18 NERC Petition at 11, 28. 
Docket No. RM12-16-000 - 6 -

004-2.1a, and PRC-005-1.1b. The FAC-001 and FAC-003 standards currently in effect 

are applicable only to transmission owners and operators, and NERC is proposing to 

extend their applicability to certain generator interconnection facilities. By contrast, the 

current version of PRC-004 and PRC-005 do apply to generator owners as well as 

transmission owners. Accordingly, NERC asserted that the proposed modifications in 

Reliability Standards PRC-004-2.1a and PRC-005-1.1b are designed merely to clarify 

that their requirements extend not only to protection systems associated with the 

generating facility or station itself, but also to any protection systems associated with the 

generator interconnection facilities. 

8. In its Petition, NERC maintained that the changes proposed for these four 

Reliability Standards will address the reliability gap for generator interconnection 

facilities “for the vast majority of Generator Owners and Generator Operators.”19 NERC 

also explained that the proposed modifications to these standards will result in the 

application of certain Reliability Standards to generator owners without the need to 

register them as transmission owners or transmission operators only as a result of the 

generator interconnection facilities.20 NERC stated that these are the only standards that 

need to be applied to generator owners and generator operators to ensure appropriate 

coverage of generator interconnection facilities “[e]xcept as necessary on a fact-specific 

 19 Id. at 5. 

20 Id. at 12. 
Docket No. RM12-16-000 - 7 -

basis.”21 NERC specifically acknowledged that some generator interconnection facilities 

may require a more expansive approach: 

The drafting team acknowledges that some Facilities used 

solely to connect generators to the transmission system are 

more complex and may therefore require individual 

assessment. The reliability gaps associated with such 

Facilities should not be addressed simply through application 

of all standards applicable to Transmission Owners and 

Transmission Operators, but instead through an assessment of 

the impact of such a Facility on neighboring transmission 

Facilities. Such assessment should then be used to determine 

exactly which Reliability Standards and requirements should 

apply to that Facility and whether additional entity 

registration is warranted. This assessment should, at a 

minimum, be based upon the output of transmission planning 

and operating studies used by the Reliability Coordinator, 

Transmission Operator and Transmission Planner in 

complying with applicable Reliability Standards (specifically, 

IRO, TOP and TPL).22

9. With respect to implementation, NERC requested an effective date of one year 

following the first quarter after regulatory approvals for FAC-001-1, and for FAC-003-3 

 21 Id. at 5. NERC noted in its Petition that the standard drafting team reviewed 

and assessed the Reliability Standards as identified in the Ad Hoc Group’s Report, as 

well as the Reliability Standards identified in Cedar Creek. According to NERC, the 

Project 2010-07 standard drafting team reviewed 34 Reliability Standards and 102 

requirements to determine what requirements should be extended to generator owners 

and generator operators that own or operate generator interconnection facilities, many of 

which had also been addressed in the Ad Hoc Group’s Report. Id. at 11. However, the 

Project 2010-07 standard drafting team ultimately chose a different approach than that 

proposed in the Ad Hoc Group Report. The standard drafting team elected not to include 

clarifying language about a Reliability Standard’s applicability to generator 

interconnection facilities in most standards otherwise applicable to generator owners or 

generator operators, and to instead focus on modifying certain Reliability Standards not 

currently applicable to generating entities. Id. at 11-12. 

22 Id. at 12-13.
Docket No. RM12-16-000 - 8 -

Requirement R3. For the remaining requirements of FAC-003-3, NERC requested an 

effective date of two years following the first calendar quarter after regulatory approvals. 

NERC requested that PRC-004-2.1a and PRC-005-1.1b become effective upon receiving 

required regulatory approvals. 

D. Notice of Proposed Rulemaking

10. On April 18, 2013, the Commission issued a Notice of Proposed Rulemaking 

proposing to approve Reliability Standards FAC-001-1, FAC-003-3, PRC-004-2.1a and 

PRC-005-1.1b.23 The Commission explained that the modifications to FAC-001 and 

FAC-003 would enhance reliability by extending certain requirements to appropriate 

generator interconnection facilities.24 In addition, the Commission found that the 

clarifications proposed in PRC-004-2.1a and PRC-005-1.1b would mitigate the 

possibility that the standards’ requirements could be interpreted to exclude the generator 

interconnection facilities.25

11. In addition to the proposal to approve the four revised Reliability Standards and to 

accept NERC’s overall approach to registration of generator owners and operators going 

forward, the Commission sought comment in the NOPR in two areas. First, the 

Commission sought further comment on its understanding of the meaning of the term 

“generator interconnection facility,” as used in the proposed standards. The Commission 

 23 Generator Requirements at the Transmission Interface, Notice of Proposed 

Rulemaking, 143 FERC ¶ 61,049 (2013) (NOPR). 

24 Id. PP 19-20.

25 Id. P 21. 
Docket No. RM12-16-000 - 9 -

indicated that it understood the term to refer to “generator interconnection tie-lines and 

their associated facilities extending from the secondary (high) side of a generator owner’s 

step-up transformer(s) to the point of interconnection with the host transmission 

owner.”26 

12. Second, the Commission stated that “our proposal to approve the revised 

Reliability Standards is based on the understanding that additional Reliability Standards 

or individual requirements may need to be applied to generator interconnection facilities 

as NERC acknowledges in its Petition, based on ‘individual assessments.’”27 The 

Commission sought further information and comment on the particular circumstances 

that could trigger an “individual assessment” of generation interconnection facilities.

13. Finally, the NOPR proposed to approve the Violation Risk Factors and Violation 

Severity Levels, as well as the implementation plan and effective dates for each modified 

Reliability Standard as proposed by NERC.28

14. Comments were due regarding the NOPR on June 24, 2013. In addition to the 

comments filed by NERC, the Commission received twelve sets of substantive comments

(identified in the Appendix to the Final Rule). In addition, on July 9, 2013, NERC filed 

reply comments in response to certain arguments raised by other commenters. 

 26 Id. P 22 (footnotes omitted). 

27 Id. P 24. 

28 Id. P 25.
Docket No. RM12-16-000 - 10 -

II. Discussion 

15. Pursuant to Section 215(d) of the FPA, we approve Reliability Standards FAC001-1, FAC-003-3, PRC-004-2.1a and PRC-005-1.1b, including the associated 

implementation plan, as just, reasonable, not unduly discriminatory or preferential, and in 

the public interest. As discussed in Section A below, we believe the revised Reliability 

Standards will enhance reliability by extending certain obligations to generator owners 

and operators and by clarifying certain existing obligations for protective relay systems 

on generator interconnection facilities. We also discuss the following: (1) use of the 

term generator interconnection facilities; (2) criteria and process for conducting 

individual assessments; and (3) sufficiency of NERC’s proposed revisions. 

A. Reliability Standards to be Applied to Generator Owners and 

Generator Operators 

NOPR Proposal

16. In the NOPR, the Commission proposed to approve the four revised Reliability 

Standards as proposed in NERC’s petition, but noted that “this NOPR addresses the four 

Reliability Standards for which NERC seeks approval and makes no proposal about . . . 

other Reliability Standards and requirements that NERC identified in its Petition for 

informational purposes.”29 The Commission also recognized that “while certain facilities 

may be adequately addressed through a generic evaluation, other facilities may, as NERC 

indicates, require ‘individual assessment’ to properly determine which Reliability 

 29 NOPR, 143 FERC ¶ 61,049 at P 23. 
Docket No. RM12-16-000 - 11 -

Standards apply to a facility.”30 Accordingly, the Commission’s proposed approval of 

the four revised Reliability Standards was “based on the understanding that additional 

Reliability Standards or individual requirements may need to be applied to generator 

interconnection facilities . . . based on ‘individual assessments.’”31

Comments

17. NERC and all other entities filing comments support the approval of the revised 

Reliability Standards, with many noting their strong support for NERC’s package of 

revisions as a whole. EPSA/ELCON views the revised Reliability Standards and 

NERC’s modified approach to registration as a “substantial improvement in addressing 

reliability concerns with respect to generator interconnection Facilities.”

32 APPA 

similarly supports approval of NERC’s petition, claiming that such approval “will ensure 

reliability, clarify roles and responsibilities in the area of bulk electric system reliability 

for both generators and their host transmission owner/operators, and lessen ambiguity 

regarding registration questions for existing generators.”33 

18. BP Wind Energy strongly supports the NOPR’s proposed approval of the revised 

Reliability Standards, asserting that the NOPR’s approach is “a tailored approach that 

addresses perceived generator interconnection reliability gap issues from a practical 

perspective without resulting in unnecessary increased costs and burdens on generator 

 30 Id. P 24. 

31 Id. 

32 EPSA/ELCON Comments at 8. 

33 APPA Comments at 2.
Docket No. RM12-16-000 - 12 -

owners and generator operators . . . .”34 Likewise, ITC supports approval of each of the 

revised standards, and notes that “[a]pplying these standards to the facilities as the NOPR 

proposes will not only improve reliability, but will also level the playing field between 

transmission owners and owners of facilities which are similar in terms of operation and 

potential system impact.”35

Commission Determination 

19. We approve each of the four revised Reliability Standards as proposed by NERC, 

as discussed further below. We agree with NERC that the changes proposed for these 

four Reliability Standards will address the reliability gap for generator interconnection 

facilities for the majority of generator owners and generator operators. Closing these 

gaps is an important reliability benefit. We also confirm our understanding that

additional Reliability Standards or individual requirements may need to be applied on a 

case-by-case basis to generator interconnection facilities in certain circumstances, but 

that for the majority of generator owners and operators, NERC will not pursue 

registration of generator owners and operators as transmission owners or transmission 

operators due solely to their ownership or operation of generator interconnection 

facilities. 

 34 BP Wind Energy Comments at 5.

35 ITC Comments at 5-6; see also CDWR Comments at 5 (supporting approval of 

the four modified Reliability Standards); PPL Comments at 3.
Docket No. RM12-16-000 - 13 -

1. Approval of Reliability Standard FAC-001-1

NOPR Proposal 

20. In the NOPR, the Commission proposed to approve changes to the existing FAC001 Reliability Standard, which requires transmission owners to document, maintain, and 

publish facility connection requirements that comply with NERC, regional, and 

individual criteria for generation facilities, transmission facilities, and end-user facilities. 

The proposed modification would extend the standard’s obligations to any generator 

owner that has executed an “[a]greement to evaluate the reliability impact of 

interconnecting a third party Facility to the Generator Owner’s existing Facility . . . used 

to interconnect to the interconnected Transmission systems.”36 The Commission 

proposed to approve this modification, finding it would enhance reliability by extending 

obligations to develop and make available facility connection requirements as 

appropriate, i.e., in the relatively uncommon situation where an agreement stemming 

from an interconnection request has been executed.37

 36 NOPR, 143 FERC ¶ 61,049 at P 9 (citing to NERC Petition at Ex. B (Proposed 

FAC-001-1, Requirement R1)). The NOPR noted NERC’s characterization of the 

circumstances the modification was designed to address as being the “rare” circumstance 

where a generator owner is required by a regulatory body to interconnect a third party 

generator to its tie-line. While NERC recognized that the arrangement could result in the 

generator owner ultimately being registered as a transmission owner or operator, the 

modification to FAC-001-1 would provide “appropriate reliability coverage until any 

additional registration is required,” while ensuring that “the standard does not impact any 

Generator Owner that never executes an [a]greement as described in the standard.” See 

id. P 10. 

37 Id. P 19. 
Docket No. RM12-16-000 - 14 -

Comments

21. None of the commenters object to the revisions reflected in FAC-001-1. ITC 

explicitly supports the revision, asserting that the proposed changes are “critical to avoid 

any potential gap in reliability standards prior to a generator owner’s registration as a new 

functional entity.” 38 ITC further notes that the information required under Requirement 

R3.1 enhances ITC’s ability to maintain safe and reliable transmission service, and will 

be useful in its and other ISOs’/RTOs’ transmission planning processes as it will allow 

them to account for any third party interconnections and their impacts on the overall 

transmission system. 

22. Similarly, AWEA supports the modifications reflected in FAC-001-1 due to its 

limited application to generator owners and operators that have executed an agreement to 

evaluate the impacts of interconnection, which AWEA argues is “appropriately 

balanced.”39 However, AWEA expresses concern about the uncertainties as to when a 

generator owner must offer interconnection or transmission service to third parties, and 

therefore (1) asks NERC to ensure that FAC-001-1 is not applied to generators that are 

not required to accept interconnection requests; and (2) asks the Commission to clarify 

that the standard only applies when a generator is required to accept an interconnection 

request, and not merely upon receipt of such a request. 

 38 ITC Comments at 6. 

39 AWEA Comments at 5.
Docket No. RM12-16-000 - 15 -

Commission Determination

23. We approve proposed Reliability Standard FAC-001-1, as it will enhance 

reliability by expanding the obligation to develop and make available facility connection 

requirements to generators who have executed an agreement to interconnect with a third 

party, which will assist in the transmission planning process. With respect to AWEA’s 

request for clarification, we do not believe the standard itself is unclear as to when it will 

apply to a generator owner or operator, but note that a mere request for interconnection 

would not immediately trigger the application of the standard to a generator owner or 

operator receiving such a request. Instead, FAC-001-1 would apply as soon as an 

agreement to evaluate the reliability impact of an interconnection is executed, whether 

the generator owner is required to do so by regulatory order or has entered into such an 

agreement without such a regulatory mandate. 

2. Approval of Reliability Standard FAC-003-3

NOPR Proposal 

24. In the NOPR, the Commission proposed to approve the modifications in 

Reliability Standard FAC-003-3, which would extend the FAC-003-2 vegetation 

management requirements to certain generator interconnection facilities, indicating that 

the proposal addresses a potential reliability gap in the currently-effective standard. 

Comments

25. None of the commenters object to the approval of Reliability Standard FAC-003-

3, and several commenters explicitly state their support for it. ITC states that the 

extension of the vegetation management standards to generator interconnection facilities 
Docket No. RM12-16-000 - 16 -

that meet the proposed criteria “will help avoid future vegetation-related events,” and 

notes that the types of generator interconnection facilities that will be subject to the 

vegetation management requirements under FAC-003-3 are “functionally similar to 

transmission facilities with respect to the significant impact that failure or misoperations 

of such tie line facilities could potentially have on the bulk electric system.”40 AWEA 

supports the limitations on applicability reflected in the proposed standard as a 

“reasonable and balanced approach,” asserting that application of the vegetation 

management requirements of FAC-003-3 to all generator interconnection facilities would 

be excessive, especially for interconnection facilities of limited length, and points out that 

generator owners and operators have “every incentive” to maintain the facilities in order 

to deliver energy.

41

Commission Determination

26. We approve Reliability Standard FAC-003-3. Consistent with the NOPR, we find 

that the modifications to FAC-003 address a potential reliability gap in the current set of 

Reliability Standards, since they do not include a requirement for generator owners to 

perform vegetation management on their tie-lines or to maintain minimum levels of 

clearance between vegetation and significant overhead generator interconnection 

facilities. Further, we conclude that the proposed limits on applicability reflected in 

FAC-003-3 are reasonable, as it is common for generator interconnection facilities of 

 40 ITC Comments at 7. 

41 AWEA Comments at 6. 
Docket No. RM12-16-000 - 17 -

relatively short span (i.e., less than one mile) to cross only areas with limited or no 

vegetation.

42 

27. Further, we adopt our proposed guidance that the exemption for overhead lines 

with a clear line of sight from the generator to the point of interconnection should be 

“interpreted narrowly,” meaning there should be “no obstructions . . . that prevent 

personnel from identifying potential reliability hazards over the full length of the line.”

43 

3. Approval of Reliability Standards PRC-004-2.1a and PRC-005-

1.1b 

NOPR Proposal 

28. In the NOPR, the Commission proposed to approve the clarifying language NERC 

proposed for PRC-004 and PRC-005. 

Comments

29. None of the commenters object to the changes to Reliability Standards PRC-004 

and PRC-005, and several expressly support the changes. AWEA states that the 

proposed modifications provide greater certainty to generator owners and operators 

regarding their responsibilities under the standards.44 Similarly, ITC believes the changes 

will avoid future misunderstandings as to rights and responsibilities.45

 42 See NOPR, 143 FERC ¶ 61,049 at P 20.

43 Id.

44 AWEA Comments at 6-7. 

45 ITC Comments at 7. 
Docket No. RM12-16-000 - 18 -

Commission Determination

30. We approve Reliability Standards PRC-004-2.1a and PRC-005-1.1b. We agree 

with NERC that the changes mitigate the possibility that entities could interpret the 

standards to exclude generator interconnection facilities.46 

B. Definition of Generator Interconnection Facility 

NOPR Proposal

31. While proposing to approve the use of the term “generator interconnection 

facility” as proposed in the revised Reliability Standards, the Commission indicated in 

the NOPR that further clarification of that term may be warranted. The Commission 

stated its understanding of the term to refer to “generator interconnection tie-lines and 

their associated facilities extending from the secondary (high) side of a generator owner’s 

step-up transformer(s) to the point of interconnection with the host transmission 

owner.”47 The Commission sought comment on its understanding of the term, as well as 

its understanding that a generator owner or operator’s compliance obligations with 

respect to the generator interconnection facilities extend to the point of interconnection 

with the host transmission owner.48

Comments

32. NERC agrees with the Commission’s understanding of the term “generator 

interconnection facility” as well as its understanding of the extent of the generator owner 

 46 See NOPR, 143 FERC ¶ 61,049 at P 21.

47 Id. P 22 (footnotes omitted). 

48 Id. 
Docket No. RM12-16-000 - 19 -

or operator’s obligations with respect to those facilities.49 EPSA/ELCON also agree that 

the Commission’s understanding of the term is consistent with that used during the 

standard development process (i.e., Project 2010-07), and with common industry practice 

and understanding.50

33. However, a number of commenters argue that the Commission’s understanding of 

the term generator interconnection facility requires further refinement or modification, 

and several of these commenters ask the Commission to adopt a formal definition of the 

term, either within the context of the relevant Reliability Standard or as a defined 

Glossary term. AWEA and E.ON Renewables ask the Commission to clarify that a 

generator owner/operator’s compliance obligations extend only to the point where there 

is a change in ownership to another transmission owner, “whether those facilities are 

classified as interconnection, or transmission facilities.”51 E.ON Renewables states that 

this proposed refinement will ensure that the obligations of the generator owner or 

operator extend only to the facilities it owns or operates, and is consistent with the 

concept of point of change of ownership as commonly reflected in generator 

interconnection agreements.52 BP Wind Energy argues for a similar clarification, but 

 49 NERC Comments at 3-4.

50 EPSA/ELCON Comments at 4. 

51 AWEA Comments at 9; see also E.ON Renewables at 3 (proposing that the term 

as clarified should include facilities “to the point of interconnection where there is a 

change in ownership with the host transmission owner’s interconnection or transmission 

facilities, as applicable”). 

52 E.ON Renewables Comments at 3-4. 
Docket No. RM12-16-000 - 20 -

asserts that the term as clarified should also be memorialized either in the NERC 

Glossary or in each relevant standard.53

34. BPA also contends that the term “generator interconnection facility” should be 

formally defined, but seeks a more substantial modification to the Commission’s 

understanding of the term. BPA is concerned that in situations where the host 

transmission owner owns the tie-line and other interconnection facilities down to the 

high-side of the step-up transformer, the generator owner would not own a “generator 

interconnection facility” at all as the Commission would define the term.54 

35. Alameda raises a concern with respect to the Commission’s understanding of the 

term “generator interconnection facility,” asserting that it fails to address the situation 

where a generator interconnection facility is not owned by the generator owner or 

operator of the facility, but by a third party. Alameda suggests that the term should 

encompass generator interconnection tie-lines and associated facilities owned by entities 

other than the generator owner/operator of the relevant generating resource, and argues 

that these entities, like the generator owner or generator operator, should not be required 

to register as a transmission owner or operator solely because of its interconnection 

facilities.55

 53 BP Wind Energy Comments at 10-11. 

54 BPA Comments at 3-4.

55 Alameda Comments at 6. 
Docket No. RM12-16-000 - 21 -

36. NERC responds to the comments of AWEA and E.ON Renewables, inter alia, by 

asserting that their requested modification is unnecessary, since generator owners and 

operators are responsible only for the facilities they own or operate (or for which they 

volunteer to be responsible) under NERC’s Reliability Standards framework.56 In 

response to comments seeking adoption of a formal definition of the term “generator 

interconnection facility,” NERC states that the standard drafting team considered and 

rejected that approach. NERC notes nonetheless that interested parties are free to initiate 

the development of a defined term pursuant to the procedures outlined in its standard 

processes manual.57 

Commission Determination

37. We affirm our understanding that the term “generator interconnection facility” 

refers to “generator interconnection tie-lines and their associated facilities extending from 

the secondary (high) side of a generator owner’s step-up transformer(s) to the point of 

interconnection with the host transmission owner.”58 We are not persuaded by the

commenters that further refinement of this understanding is warranted. 

38. Further, we agree with NERC that a generator owner or operator would not have 

compliance obligations associated with facilities it does not own or operate (unless it 

 56 NERC Reply Comments at 4-5. 

57 NERC Reply Comments at 5-6. 

58 NOPR, 143 FERC ¶ 61,049 at P 22 (footnotes omitted). 
Docket No. RM12-16-000 - 22 -

volunteers to undertake such obligations).

59 While we do not agree that a modification of 

the term is necessary to address AWEA and E.ON Renewables’ concerns, we confirm 

that our intent is to ensure that a generator owner or operator’s obligations with respect to 

generator interconnection facilities extend to the point of change of ownership from the 

generator owner/operator to the next interconnected registered entity, which may not 

occur at the point of interconnection between the tie-line as a whole and the larger, 

interconnected transmission grid. 

39. Nor are we persuaded that BPA’s suggested modification is necessary to cover a 

potential reliability gap. In the situation described by BPA, the Reliability Standards and 

requirements normally applicable to generator interconnection facilities would apply due 

to the owner’s status as a registered transmission owner, and any facilities below the high 

side of the step-up transformer should be covered as part of the Reliability Standards and 

requirements generally applicable to generator owners and operators. 

40. Finally, we reject Alameda’s requested modification to the term “generator 

interconnection facility” in order to address the circumstance where a third entity owns or 

operates all or a portion of the interconnection facilities between the generating resource 

and the interconnected transmission system. In such cases, we agree that it may be more 

appropriate for the entity to be subject to the Reliability Standards applicable to generator 

owners and operators (including the four standards at issue here) rather than to the full 

panoply of standards applicable to transmission owners and operators, but we will not 

 59 See NERC Reply Comments at 4-5.
Docket No. RM12-16-000 - 23 -

make such a blanket finding here. Rather, NERC and the Regional Entities can consider 

the appropriate registry status for an entity in this position on a case-by-case basis. 

Further, any categorical change to applicability of specific Reliability Standards should 

be addressed in the Reliability Standards development process. 

C. Individual Assessments

NOPR Proposal

41. In the NOPR, the Commission proposed to accept NERC’s approach to the 

registration of generator owners and operators going forward, whereby most generator

owners and operators would not, solely as a result of their interconnection facilities, be 

registered as transmission owners and operators, and would only be subject to the

Reliability Standards and requirements applicable to generator owners and operators 

(including the four revised standards at issue in this proceeding). The Commission 

explicitly based its approval of this approach on its “understanding that additional 

Reliability Standards or individual requirements may need to be applied to generator 

interconnection facilities . . . based on ‘individual assessments.’”60 The Commission 

sought comment on several aspects of NERC’s expectations for these individual 

assessments, as follows: 

[W]e seek comment as to what circumstances could trigger 

such an individual assessment. We also seek comment on 

how NERC envisions the individual assessments will be 

performed as part of the transmission planning and operating 

studies NERC mentions in the Petition, when the individual 

assessments will occur, what percentage of generator 

 60 NOPR, 143 FERC ¶ 61,049 at P 24. 
Docket No. RM12-16-000 - 24 -

interconnection facilities are “complex” and thereby likely to 

trigger such an individual assessment (including the number 

of existing generator interconnection facilities that will be 

required to adhere to additional transmission owner or 

transmission operator Reliability Standards), and how the 

results of the individual assessments will be coordinated 

among the interested parties.

61

Comments 

42. NERC comments that “several events” could trigger an individual assessment, 

including: (1) NERC gaining new information, for example, from NERC’s analysis of an 

event or off-normal occurrence on the system, which NERC would pursue through 

development of a new or revised standard if of a general nature; (2) NERC gaining 

additional information specific to an individual generator owner or operator, which 

might lead NERC and the Regional Entity to pursue additional registration; and 

(3) through review of an element as part of the bulk electric system definition exception 

process.

62 NERC adds that “the existing processes and roles and responsibilities of 

NERC and the regions should ensure that ‘complex’ generator interconnection facilities 

will be identified and appropriately addressed on a case-specific basis.”63

43. With respect to the prevalence of such individual assessments going forward, 

NERC states that it “expects that widespread registration of Generator Owner or 

Generator Operators as Transmission Owners and Transmission Operators should not be 

 61 Id. 

62 NERC Comments at 5-6. PPL concurs with NERC’s identified triggering 

events, and supports NERC’s proposed approach for individual assessments. PPL 

Comments at 4-5. 

63 NERC Comments at 6.
Docket No. RM12-16-000 - 25 -

necessary in the future.”64 NERC further states that, with the approval of the four 

modified Reliability Standards, it “believes it has addressed the reliability concerns that 

caused NERC to pursue registration of certain Generator Owners and Generator 

Operators as Transmission Owners and Transmission Operators (thereby subjecting them 

to some additional Requirements).”65 

44. EPSA/ELCON agrees with NERC’s general approach, i.e., identification of the set 

of standards and requirements that need to be applied to generator owners and operators

in general to close any reliability gap, with the expectation that “only a limited narrow 

subset of generators could potentially be ‘complex’ and thereby subject to further 

assessment for either application of limited TO or TOP Reliability Standards and specific 

limited requirements therein.”

66 To the extent that individual circumstances warrant 

additional registration as a transmission owner or transmission operator, EPSA/ELCON 

argues for development of a specific process for that assessment, which should be used 

only as a last resort. EPSA/ELCON argues for the development of a process, utilizing 

industry input and modeled after the bulk electric system exception process, which will 

allow independent assessment of the perceived reliability gap by a technical review 

panel. Dominion and APPA support EPSA/ELCON’s proposed approach in developing a 

 64 Id. at 5. 

65 Id. at 6-7. 

66 EPSA/ELCON Comments at 5. 
Docket No. RM12-16-000 - 26 -

process required for individual assessment,67 although Dominion adds that the process 

“should involve an assessment by the entity’s Balancing Authority, Reliability 

Coordinator, Transmission Operator, and Transmission Provider.”68

45. E.ON Renewables comments that NERC’s description of the circumstances that 

might trigger an individual assessment is vague.

69 E.ON Renewables and AWEA argue 

that NERC should be required to identify the specific criteria to be used to establish a 

facility as “complex,” with examples and an explanation of the reliability gap associated 

with that example, as well an explanation of how assessments will be performed. E.ON

Renewables argues that these criteria and processes should be identified on the record in 

this or another proceeding, and be subject to industry comment. Finally, E.ON

Renewables asks the Commission to find, in this proceeding, that (1) generator 

interconnection facilities that connect to the transmission system at a single point of 

interconnection are not “complex,” and (2) the only additional requirements that can be 

applied to the owner or operator of “complex” generator interconnection facilities are 

those needed to close the identified reliability gap, rather than “classification as a TO or 

TOP and the attendant registry and compliance associated with a TO and TOP.”70

 67 Dominion Comments at 3; APPA Comments at 2-3 (commenting that “it is 

difficult to identify in advance the factors and considerations that may come into play as 

part of a specific complex generator interconnection”). 

68 Dominion Comments at 3-4. 

69 E.ON Renewables Comments at 4. 

70 Id. at 5-6. See also AWEA Comments at 7-8.
Docket No. RM12-16-000 - 27 -

46. BP Wind Energy makes similar arguments regarding the need for the 

establishment of “clear and defined parameters regarding individual assessments, set 

forth either in the NERC registry or other Commission-approved rule, procedure or 

document.”71 BP Wind Energy asserts that generator owners and operators should be 

involved in the development of the parameters and process.

47. TDU Systems states it does not object to individual assessment of “truly complex 

generator interconnection facilities,” but argues that such assessments must be narrowly 

tailored to ensure that the vast majority of generator owners and operators are not subject 

to such an assessment.72 Despite TDU Systems’ recognition that individual assessments 

may be warranted in some cases, it asks the Commission to “confirm” that an entity 

owning or operating generator interconnection facilities and no other transmission 

facilities need not be registered as a transmission owner or transmission operator going 

forward (i.e., after approval of the four Reliability Standards at issue in this 

proceeding).73 

48. In its Response, NERC states that a process for conducting individual assessments 

is unnecessary at this time because there are existing mechanisms under the NERC Rules 

 71 BP Wind Energy Comments at 8. 

72 TDU Systems at 6-7. 

73 Id. at 4-5.
Docket No. RM12-16-000 - 28 -

of Procedure to deal with any registration changes that may be warranted.

74 Accordingly, 

NERC further maintains that the development of such a process is premature.75 

49. In responding to the requests for further clarification or “confirmation” that 

generator owners and operators will not be subject to registration as a transmission owner 

or operator based solely on their interconnection facilities, NERC reiterates that it “will 

generally no longer pursue registration of Generator Owners and Generator Operators as 

Transmission Owners and Transmission Operators.”76 However, NERC asserts that it 

“cannot guarantee that it will never be necessary to register a Generator Owner or 

Generator Operator as a Transmission Owner or Transmission Operator as such a 

statement would be inconsistent with NERC’s obligations as the Electric Reliability 

Organization.”77

Commission Determination 

50. We find NERC’s proposed approach to determining whether an individual 

assessment, or whether additional Reliability Standards need to be more broadly applied,

to be reasonable. Given NERC’s expectation that “the number of such facilities is low,” 

it seems unnecessary at this time to require a new process tailored to such individual 

 74 NERC Response at 2-3. 

75 NERC notes that it will be reviewing its registration process in 2014. NERC 

Response at 3 & n.7.

76 Id. at 3 (quoting NERC Comments at 7). 

77 Id. 
Docket No. RM12-16-000 - 29 -

assessments.78 Should greater transparency and consistency across the regions become 

necessary, there are existing mechanisms under the NERC Rules of Procedure to deal 

with any changes to the registration criteria that may be warranted.

79 

51. We reject E.ON Renewable’s request for a finding that generator interconnection 

facilities that connect to the transmission system at a single point of interconnection are 

categorically not “complex.” We believe it is inappropriate to make a blanket finding as 

to any specific configuration, and note that we upheld NERC’s registration of Harquahala 

as a transmission owner although the generator interconnection facilities in that case 

connected to the transmission system at a single point. 

52. We also reject TDU Systems’ and other commenters’ request to “clarify” that 

generator owners and operators will no longer be asked to register as transmission owners 

or operators under any circumstances. Quite the contrary, as we stated in the NOPR, our 

proposed approval of the revised Reliability Standards was “based on the understanding 

that additional Reliability Standards or individual requirements may need to be applied to 

the generator interconnection facilities . . . based on ‘individual assessments.’”80 We 

leave open the possibility that in some cases, the interconnection facilities may be so 

extensive that the entity should not only be registered as a transmission owner or 

operator, but should be subject to all of the Reliability Standards and requirements 

 78 NERC Comments at 6. 

79 See NERC Rules of Procedure §§ 500 and 1400; see also NERC Response at 3. 

80 NOPR, 143 FERC ¶ 61,049 at P 24. 
Docket No. RM12-16-000 - 30 -

applicable to such an entity. In other cases, it may be appropriate to waive a significant 

portion of the standards or requirements generally applicable to transmission owners and 

operators, even if the entity is technically registered as a transmission owner or operator. 

53. However, consistent with our prior decisions in Harquahala and Cedar Creek, we 

clarify that for the anticipated small number of generator owners and operators owning 

facilities deemed to be “complex” and therefore potentially subject to additional 

Reliability Standards, NERC should evaluate, in consultation with the Regional Entity, 

which Reliability Standards should apply to the particular entity based on the specific 

facts and circumstances. We further clarify that the generator owner or operator should 

only be obligated to comply with those Reliability Standards and requirements necessary 

to close the identified reliability gap.

81 To the extent that disputes remain about the 

appropriate application of Reliability Standards and requirements, we note that generator 

owners and operators continue to have the right to bring any such dispute to the 

Commission. 

D. Impact on Current Registrations and Registration Process 

NOPR Proposal

54. In the NOPR, the Commission noted NERC’s position that acceptance of its 

proposed revisions would “not have the effect of de-registering any entity from the 

 81 See NERC Comments at 6.
Docket No. RM12-16-000 - 31 -

NERC Compliance Registry.”82 The Commission also recognized that the Petition was 

not intended to overturn any previous orders, citing to Cedar Creek and Harquahala.83 

Comments

55. TDU Systems asks for clarification regarding the process by which entities 

currently registered as a transmission owner or operator may seek de-registration.84 In 

particular, TDU Systems seeks clarification that a request for de-registration under 

NERC’s Rules of Procedure will not be treated as an appeal of an existing registration 

listing, i.e., it will not be subject to the 21 day deadline for filing an appeal from an initial 

registration decision. In the alternative, TDU Systems asks the Commission to direct 

NERC to explain the process that should be used for de-registration of an entity currently 

registered as a transmission owner or operator. BP Wind Energy also seeks clarification 

that entities are free to seek a change in their registry status as a transmission owner or 

operator, or to modify the requirements with which they are required to comply.

85 

56. In its response, NERC reiterates that this proceeding will not have the effect of deregistering any entity from the NERC Compliance Registry, and states that any changes 

to registration will be governed by its Rules of Procedure.86 

 82 NOPR, 143 FERC ¶ 61,049 at P 17.

83 Id. n.37. 

84 TDU Systems at 5-6. 

85 BP Wind Energy Comments at 9-10. 

86 NERC Response at 2-3.
Docket No. RM12-16-000 - 32 -

Commission Determination

57. We confirm that this final rule does not have the effect of de-registering any entity 

from the NERC Compliance Registry. However, we grant the requested clarification that 

this order does not alter an entity’s right to seek a change in its registration status under 

NERC’s Rules of Procedure. 

III. Information Collection Statement

58. The Office of Management and Budget (OMB) regulations require that OMB 

approve certain reporting and recordkeeping requirements (collections of information) 

imposed by an agency.87 Upon approval of a collection of information, OMB will assign 

an OMB control number and expiration date. Respondents subject to the filing or 

recordkeeping requirements of this rule will not be penalized for failing to respond to 

these collections of information unless the collections of information display a valid 

OMB control number. 

59. The Commission is submitting these reporting and recordkeeping requirements to 

OMB for its review and approval under section 3507(d) of the Paperwork Reduction Act 

(PRA). The Commission solicited comments on the need for this information, whether 

the information will have practical utility, the accuracy of the provided burden estimate, 

ways to enhance the quality, utility, and clarity of the information to be collected, and any 

suggested methods for minimizing the respondent’s burden, including the use of 

 87 5 CFR 1320.11 (2013).
Docket No. RM12-16-000 - 33 -

automated information techniques. The Commission did not receive any comments on 

the reporting burden estimate. 

60. This Final Rule approves Reliability Standards FAC-001-1, FAC-003-3, PRC004-2.1a, and PRC-005-1.1b, which would replace currently effective Reliability 

Standards FAC-001-0, FAC-003-1,88 PRC-004-2a, and PRC-005-1b. The modifications 

included in PRC-004-2.1a and PRC-005-1.1b are clarifications of existing requirements, 

do not extend those existing requirements to any new entity or to additional facilities, and 

do not affect the existing burden related to those standards.89

61. The modifications reflected in FAC-001-1 extend the obligation to document, 

maintain, and publish interconnection requirements to any generator owner that has an 

executed agreement with a third party to evaluate the reliability impact of a requested or 

required interconnection. NERC states, and we agree, that the number of affected 

generator owners is likely to be extremely small.90 Moreover, it is likely that any 

increase in an entity’s recordkeeping and reporting requirements would occur through a 

change in that entity’s NERC registration status in any case, i.e., NERC would likely be 

 88 As of the date of issuance of this Final Rule, the currently effective standard is 

FAC-003-1. While a revised version of that standard, FAC-003-2, was approved in 

Docket No. RM12-4-000, it has yet to go into effect. 

The information collection requirements of Reliability Standard FAC-003-2 were 

approved by the OMB on May 29, 2013, under FERC-725A (OMB Control No. 1902-

0244). 

89 The information collection requirements and related burden (both unchanged in 

this Final Rule) of Reliability Standards PRC-004-2a and PRC-005-1b are covered under 

FERC-725A(OMB Control No. 1902-0244). 

90 See NERC Petition at 20.
Docket No. RM12-16-000 - 34 -

considering registration of the entity as a transmission owner, with the corresponding 

responsibilities. Accordingly, the Commission views the potential increase in 

recordkeeping and reporting burden from revised standard FAC-001-1 as minimal, but 

has provided an estimate of that burden in the table set out below.

62. The modifications reflected in FAC-003-3 extend NERC’s vegetation 

management requirements to certain generator interconnection facilities, including 

requirements to create and maintain records related to the generator owner’s vegetation 

management work plan and performance of inspections. Generator owners typically 

already maintain the vegetation surrounding the right-of-way for the generator 

interconnection facility that connects the generating station switchyard to the point of 

interconnection with a transmission owner’s facility. However, the proposed 

requirements outlined in FAC-003-3 may exceed a generator owner’s current vegetation 

management program, particularly with respect to recordkeeping and reporting. 

63. Public Reporting Burden: The burden and cost estimates below are based on the 

increase in the reporting and recordkeeping burden imposed by the proposed Reliability 

Standards. Our estimate of the number of respondents affected is based on the NERC 

Compliance Registry as of July 30, 2013. According to the Compliance Registry, NERC 

has registered 881 generator owners within the United States, and we estimate that 

approximately 10 percent (or 88) of these generator owners have interconnection 

facilities that meet the proposed requirements for applicability of the new standard (i.e.,

having overhead lines that are greater than 200 kV or are part of an IROL or WECC 
Docket No. RM12-16-000 - 35 -

Transfer Path, and that are either longer than one mile or without a clear sightline to the 

point of interconnection with the host transmission system). 

64. The burden estimates reflect the changes in the standards and the number of 

affected entities (e.g., the generator owner’s one-time burden to develop, or review and 

modify, an existing vegetation management program, and the on-going, relatively minor 

burden of preparing quarterly reports of relevant outages). Estimates for the proposed 

additional burden imposed by the Final Rule in RM12-16 follow.91

FERC-725M Number of 

Respondents 92

(1)

Number of 

Responses 

per 

Respondent

(2)

Average 

Burden 

Hours 

Per 

Response

(3)

Total 

Annual 

Burden 

Hours

(1)x(2)x(3)

Total 

Annual 

Cost93

FAC-003-3 (Transmission Vegetation Management)

 91 The NOPR used the identifier FERC-725A (OMB Control No. 1902-0244). 

However, for administrative purposes and to submit the information collection 

requirements to OMB timely, the requirements were labeled FERC-725M (OMB Control 

No. 1902-0263) in the submittal to OMB associated with the NOPR. We are using 

FERC-725M in this Final Rule and in the associated submittal to OMB. 

92 GO = Generator Owner; RE = Regional Entity. The respondents are generator 

owners, unless otherwise indicated.

93 The estimates for cost per hour are derived as follows:

• $52/hour, the average of the salary plus benefits for an engineer and a forester, 

from Bureau of Labor and Statistics at 

http://bls.gov/oes/current/naics3_221000.htm

• $70/hour, the average of the salary plus benefits for a manager and an 

engineer, from Bureau of Labor and Statistics at 

http://bls.gov/oes/current/naics3_221000.htm

• $28/hour, based on a Commission staff study of record retention burden cost.
Docket No. RM12-16-000 - 36 -

Strategies, 

documentation, 

processes, & 

procedures (M3)

88 1 32 2,816

(one-time)

$146,432

one-time 

[@$52/hr.]

Quarterly 

Reporting 

(Compliance 1.4)

9694 4 0.25 96 $6,720 

[@$70/hr.]

Annual Veg. 

Inspect. Doc. 

(M6); annual 

veg. work plan 

(M7); evidence 

of mgt. of veg. 

(M1 & M2), 

confirmed veg. 

condition (M4) 

& corrective 

action (M5)

88 1 2 176 $12,320

[@$70/hr.]

Record Retention 

(Compliance 1.2)

88 1 1 88 $2,464

[@$28/hr.]

FAC-001-1 (Facility Connection Requirements)

Facility 

connection reqs. 

(R2, R3, M2, & 

M3)

5 1 16 80 (onetime)$5,600 

(one-time) 

[@$70/hr.]

Record 

Retention95

5 1 1 5 $140 

[@$28/hr.]

Total in First 

Year

3,261 $173,676

 94 Number of respondents includes 88 generator owners, who may be subject to 

the recordkeeping and reporting burdens of FAC-003 for the first time, and 8 Regional 

Entities, who may have a slight increase in recordkeeping and reporting requirements due 

to the increase in entities covered by the vegetation management standard.

95 Regional Entities may have a de minimis increase in burden due to the increase 

in the number of entities potentially subject to the revised standard; that burden has been 

rolled into the estimated Average Burden Hours per Response. 
Docket No. RM12-16-000 - 37 -

Title: Mandatory Reliability Standards for the Bulk-Power System

Action: Proposed revisions to FERC-725M 

OMB Control No.: 1902-0263 

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

Frequency of Responses: One-time, annual, and quarterly.

Necessity of the Information: The revisions to the four Reliability Standards noted above 

are part of the implementation of the Congressional mandate of the Energy Policy Act of 

2005, to develop mandatory and enforceable Reliability Standards to better ensure the 

reliability of the nation’s Bulk-Power System. 

Internal Review: The Commission has reviewed the revisions to the four Reliability 

Standards and made a determination that its action is necessary to implement section 215 

of the FPA. The Commission has assured itself, by means of its internal review, that 

there is specific, objective support for the burden estimate associated with the 

information requirements. 

65. 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].

66. For submitting comments concerning the collection of information and the 

associated burden estimates, 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 
Docket No. RM12-16-000 - 38 -

Commission, phone: (202) 395-4718, 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 RM12-16, FERC-725M

and OMB Control Number 1902-0263.

IV. Regulatory Flexibility Act Certification

67. The Regulatory Flexibility Act of 1980 (RFA)96 generally requires a description 

and analysis of proposed 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’s) Office of Size Standards develops the numerical definition of a 

small business.97 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.98 

68. Reliability Standards FAC-001-1, FAC-003-3, PRC-004-2.1a, and PRC-005-1.1b 

will help to ensure that generator interconnection facilities are properly maintained and 

operated. The number of small business entities affected is expected to be small, because 

FAC-001-1 will apply only to the small subset of generator owners that have executed an 

 96 5 U.S.C. 601-612 (2006).

97 13 CFR 121.101 (2013).

98 13 CFR 121.201, Sector 22, Utilities & n.1. 
Docket No. RM12-16-000 - 39 -

agreement to interconnect with a third party, and FAC-003-3 will only affect generator 

owners with overhead transmission lines that: (1) are operated at 200 kV or higher, or, 

are elements of an IROL or of a Major WECC Transfer Path, and (2) are longer than one 

mile or lacking in clear sightlines to the point of interconnection with the host 

transmission system.99 Comparison of the NERC Compliance Registry with data 

submitted to the Energy Information Administration on Form EIA-861 indicates that, of 

the 881 generator owners in the United States registered by NERC, 49 qualify as small 

businesses.100 Of these, only five entities (about ten percent of the small entities) are 

expected to have qualifying interconnection facilities. 

69. For the number of small generator owners that do have applicable facilities, the 

primary cost increase is expected to be in documentation, recordkeeping, and reporting 

burdens as discussed above. In addition, we estimate that for each of the estimated five 

small generator owners there will be an additional cost for the two hours to perform the 

annual inspection of the lines (at $47.00 per hour,

101 or an additional $94.00 per owner

annually). Therefore, the estimated cost in the first year for the increased data collection 

and retention for these entities is approximately $3,144.00 per entity ($3,050.00 for the 

 99 Some of the standards may also affect Regional Entities; however, they do not 

qualify as small entities. 

100 See NERC Compliance Registry as of July 30, 2013; U.S. Energy Information 

Administration Form EIA-861 – Annual Electric Power Industry Report, Preliminary 

Data for 2012 (released August 15, 2013). 

101 This wage figure is taken from the Bureau of Labor and Statistics at 

http://bls.gov/oes/current/naics3.221000.htm.
Docket No. RM12-16-000 - 40 -

one-time and recurring reporting and record retention requirements from the table above 

plus $94.00 for the annual inspection of the line). In subsequent years, after completion 

of the one-time recordkeeping or reporting requirements, the cost will be reduced. Based 

on the above, the Commission does not consider the costs associated with NERC’s 

revisions to the four Reliability Standards to constitute a significant economic impact for 

small entities, because it should not represent a significant percentage of an affected 

small entity’s operating budget. Accordingly, the Commission certifies that the revised 

requirements set forth in the four Reliability Standards will not have a significant 

economic impact on a substantial number of small entities, and no regulatory flexibility 

analysis is required. 

V. Environmental Analysis

70. 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.102 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.103 The actions proposed here fall within this categorical exclusion in the 

Commission’s regulations. 

 102 Regulations Implementing the National Environmental Policy Act of 1969, 

Order No. 486, FERC Stats. & Regs., Regulations Preambles 1986-1990 ¶ 30,783 (1987).

103 18 CFR 380.4(a)(2)(ii).
Docket No. RM12-16-000 - 41 -

VI. Document Availability

71. 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.

72. 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.

73. 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.

VII. Effective Date and Congressional Notification

74. 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 a “major rule” as defined in section 351 of the Small Business Regulatory 
Docket No. RM12-16-000 - 42 -

Enforcement Fairness Act of 1996. The Commission will submit this Final Rule to both 

houses of Congress and the Government Accountability Office. 

By direction of the Commission. 

( S E A L )

Nathaniel J. Davis, Sr.,

Deputy Secretary.
Docket No. RM12-16-000 - 43 -

Note: The Appendix will not appear in the Code of Federal Regulations.

Appendix

Commenters

American Public Power Association (APPA)

American Wind Energy Association (AWEA)

Bonneville Power Administration (BPA)

BP Wind Energy North America, Inc. (BP Wind Energy)

City of Alameda, California (Alameda)

California Department of Water Resources State Water Project (CDWR)

Dominion Resources Services, Inc. (Dominion)

Electric Power Supply Association and Electricity Consumers Resource Council 

(EPSA/ELCON)

E.ON Climate & Renewables North America, LLC (E.ON Renewables)

International Transmission Company d/b/a ITC Transmission, Michigan Electric 

Transmission Company, LLC, ITC Midwest LLC and ITC Great Plains LLC (ITC)

Louisville Gas and Electric Company, Kentucky Utilities Corporation, Lower 

Mount Bethel Energy, LLC, PPL Brunner Island, LLC, PPL Electric Utilities 

Corporation, PPL EnergyPlus, LLC, PPL Holtwood, LLC, PPL Ironwood, LLC, 

PPL Martins Creek, LLC, PPL Montana, LLC, PPL Montour, LLC, and PPL 

Susquehanna, LLC (PPL)

North American Electric Reliability Corporation (NERC) 

Transmission Dependent Utility Systems (TDU Systems)