130 FERC ¶ 61,201 

UNITED STATES OF AMERICA 

FEDERAL ENERGY REGULATORY COMMISSION 

18 CFR Part 40 

Docket No. RM09-13-000 

Time Error Correction Reliability Standard 

(March 18, 2010) 

AGENCY: Federal Energy Regulatory Commission. 

ACTION: Notice of Proposed Rulemaking 

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

proposes to remand the proposed revised Time Error Correction Reliability Standard 

developed by the North American Electric Reliability Corporation (NERC) in order for 

NERC to develop several modifications to the proposed Reliability Standard. The 

proposed action ensures that any modifications to Reliability Standards will be just, 

reasonable, not unduly discriminatory or preferential, and in the public interest. 

DATES: Comments are due [insert date that is 30 days after publication in the

FEDERAL REGISTER]. 

ADDRESSES: Interested persons may submit comments, identified by Docket No. 

RM09-13-000, by any of the following methods: 

 eFiling: Comments may be filed electronically via the eFiling link on the 

Commission's web site at www.ferc.gov. Documents created electronically using 

word processing software should be filed in the native application or print-to-PDF 

format and not in a scanned format. The Commission accepts most standard word 
Docket No. RM09-13-000 - 2 - 

processing formats and commenters may attach additional files with supporting 

information in certain other file formats. Attachments that exist only in paper 

form may be scanned. Commenters filing electronically should not make a paper 

filing. Service of rulemaking comments is not required. 

 Mail/Hand Delivery: Commenters that are not able to file comments 

electronically must mail or hand deliver an original and 14 copies of their 

comments to: Federal Energy Regulatory Commission, Secretary of the 

Commission, 888 First Street, NE, Washington, DC 20426. 

FOR FURTHER INFORMATION CONTACT: 

Mindi Sauter (Legal Information) 

Office of the General Counsel 

Federal Energy Regulatory Commission 

888 First Street, N.E. 

Washington, D.C. 20426 

(202) 502-6830 

Scott Sells (Technical Information) 

Office of Electric Reliability 

Division of Reliability Standards 

Federal Energy Regulatory Commission 

888 First Street, N.E. 

Washington, D.C. 20426 

(202) 502-6664 

SUPPLEMENTARY INFORMATION:
130 FERC ¶ 61,201 

UNITED STATES OF AMERICA 

FEDERAL ENERGY REGULATORY COMMISSION 

Time Error Correction Reliability Standard Docket No. RM09-13-000 

NOTICE OF PROPOSED RULEMAKING 

(March 18, 2010) 

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

 the Commission 

proposes to remand the Time Error Correction Reliability Standard (BAL-004-1) 

developed by the North American Electric Reliability Corporation (NERC) in order for 

NERC to develop several modifications to the proposed Reliability Standard, as 

discussed below.2

 

I. Background

A. EPAct 2005 and Mandatory Reliability Standards

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. Specifically, the Commission may 

approve, by rule or order, a proposed Reliability Standard or modification to a Reliability 

 1

 16 U.S.C. 824o. 

2

 The Commission is not proposing any new or modified text to its regulations. 

Rather, as provided in 18 CFR Part 40, a proposed Reliability Standard will not become 

effective until approved by the Commission, and the Electric Reliability Organization 

must post on its website each effective Reliability Standard. 
Docket No. RM09-13-000 - 2 - 

Standard if it determines that the Standard is just, reasonable, not unduly discriminatory 

or preferential, and in the public interest.3

 Once approved, the Reliability Standards may 

be enforced by the ERO, subject to Commission oversight, or by the Commission 

independently.4

 

3. Pursuant to section 215 of the FPA, the Commission established a process to select 

and certify an ERO5

 and, subsequently, certified NERC as the ERO.6 On April 4, 2006, 

NERC submitted a petition seeking approval of 107 proposed Reliability Standards, 

including BAL-004-0.7

 On March 16, 2007, the Commission issued Order No. 693 

approving 83 of these 107 Reliability Standards, including BAL-004-0, and directing 

other actions related to 56 of the approved Reliability Standards. 

1. Time Error Correction Generally

4. Time Error occurs when a synchronous Interconnection operates at a frequency 

(number of cycles per second) that is different from the Interconnection’s Scheduled 

 3

 18 U.S.C. 824o(d)(2). 

4 Id. 824o(e)(3). 

5 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). 

6 North American Electric Reliability Corp., 116 FERC ¶ 61,062 (ERO 

Certification Order), order on reh’g & compliance, 117 FERC ¶ 61,126 (2006), aff’d sub 

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

7 See Petition of the North American Electric Reliability Council and North 

American Electric Reliability Corporation for Approval of Reliability Standards, April 4, 

2006 at 28-29, Docket No. RM06-16-000. 
Docket No. RM09-13-000 - 3 - 

Frequency. Interconnections control to 60 Hz (60 cycles per second), however, the 

control is imperfect and over time will result in the average frequency being either above 

60 Hz or below 60 Hz. This discrepancy between actual frequency and Scheduled 

Frequency results from an imbalance between generation and interchange and load and 

losses, which also results in Inadvertent Interchange.8

 Time Error Correction is the 

procedure Reliability Coordinators and Balancing Authorities follow to reduce Time 

Error and regulate the average frequency closer to 60 Hz. The Time Error Correction 

Reliability Standard sets forth the process that Reliability Coordinators and Balancing 

Authorities follow to offset their Scheduled Frequency to reliably correct for the 

accumulated Time Error. The efficiency of Time Error Corrections is determined by the 

participation of all Balancing Authorities within the Interconnection. Coordination and 

oversight by all Balancing Authorities and Reliability Coordinators is necessary to ensure 

that Time Error Corrections are performed reliably. 

2. NERC’s Proposed Time Error Correction Reliability Standard

Revisions

5. On March 16, 2007, the Commission issued Order No. 693, which, among other 

things, approved the currently effective Time Error Correction Reliability Standard, 

 8

 Inadvertent Interchange occurs when unplanned energy transfers cross Balancing 

Authority boundaries, typically where a Balancing Authority experiences an operational 

problem that prevents its net actual interchange of energy from matching its net 

scheduled interchange with other Balancing Authorities within the Interconnection. 
Docket No. RM09-13-000 - 4 - 

BAL-004-0.9

 On March 11, 2009, NERC filed a petition for Commission approval of the 

revised Time Error Correction Reliability Standard, designated BAL-004-1. The petition 

states that the proposed Reliability Standard would supersede the existing Reliability 

Standard, and is intended to ensure that Interconnection Time Monitors will continue to 

volunteer for that role during an interim time period during which NERC and the industry 

will consider significant changes in how to manage Time Error Correction. NERC states 

that a potential more permanent solution already is incorporated in the scope of its 

ongoing Project 2007-05 – Balancing Authority Controls. 

6. The Time Error Correction Reliability Standard applies to Reliability Coordinators 

and Balancing Authorities. NERC states that, while in NERC’s view Time Error itself is 

not a reliability issue, correcting for Time Error can affect reliability, and therefore the 

methods used for Time Error Correction must be carried out by the Balancing Authorities 

and Reliability Coordinators within each Interconnection in accordance with NERC 

Reliability Standards. 

7. NERC indicates that designating an Interconnection Time Monitor is primarily an 

issue for the Eastern Interconnection. The Midwest ISO currently performs this function 

for the Eastern Interconnection. In the Western Interconnection, the Western Electricity 

Coordinating Council (WECC) uses automatic Time Error Correction, although periodic 

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

FERC Stats. & Regs. ¶ 31,242, order on reh’g, Order No. 693-A, 120 FERC ¶ 61,053 

(2007). 
Docket No. RM09-13-000 - 5 - 

manual corrections still are required and are coordinated by WECC.10 The Electric 

Reliability Council of Texas performs Time Error Correction functions for the Texas 

Interconnection. 

8. NERC states that BAL-004-1 ensures that Time Error Corrections are conducted 

in a manner that does not adversely affect the reliability of the Interconnection. 

3. Time Error Correction Reliability Standard Requirements

9. NERC’s petition summarizes the proposed changes to the Time Error Correction 

Reliability Standard’s compliance Requirements, as described below.11 

10. Requirement R1: Requirement R1 currently states that only a Reliability 

Coordinator is eligible to serve as an Interconnection Time Monitor, and that the NERC 

Operating Committee shall designate a single Reliability Coordinator in each 

Interconnection to serve as Interconnection Time Monitor. The proposed changes would 

remove the requirement that the NERC Operating Committee designate Interconnection 

Time Monitors. NERC indicates that the change would vest authority for designating 

 10 Under Regional Reliability Standard BAL-004-WECC-01 (Automatic Time 

Error Correction), Balancing Authorities within WECC generally are required to 

continuously automatically correct for their contribution to Time Error using automatic 

generation control systems. However, certain operational events may lead to suspension 

of automatic Time Error Correction, requiring manual Time Error Corrections to be 

completed at another time, under WECC’s direction. See, Western Electricity 

Coordinating Council Regional Reliability Standard Regarding Automatic Time Error 

Correction, Order No. 723, 127 FERC ¶ 61,176 (2009) (approving WECC Automatic 

Time Error Correction regional Reliability Standard). 

11 A redline showing the changes NERC proposed to the Time Error Correction 

Reliability Standard is attached to this order as Appendix A. 
Docket No. RM09-13-000 - 6 - 

Interconnection Time Monitors with the NERC Board of Trustees, based on NERC 

Operating Committee review and recommendation. NERC states that, once the proposed 

standard is approved, the NERC Board of Trustees will formally designate 

Interconnection Time Monitors. 

11. Requirement R2: NERC proposes to remove the current Requirement R2 in its 

entirety; the current Requirement R2 states that the Interconnection Time Monitor will 

monitor Time Error and shall initiate or terminate corrective action orders in accordance 

with the North American Energy Standards Board (NAESB) Time Error Correction 

Procedure. NERC asserts that NERC Reliability Standards should not compel an entity 

to comply with NAESB business practices. 

12. Requirement R3:12 Requirement R3 instructs Balancing Authorities to 

participate in a Time Error Correction when directed by the Reliability Coordinator 

serving as the Interconnection Time Monitor. The text of that Requirement would remain 

the same. 

13. Requirement R4:13 Requirement R4 states that any Reliability Coordinator, 

either on its own accord or at the request of a Balancing Authority within its footprint, 

may request that the Interconnection Time Monitor terminate a Time Error Correction for 

reliability reasons. The text of that Requirement also would remain the same. 

 12 With the elimination of current Requirement R2, the current Requirement R3 

would become Requirement R2. 

13 Similarly, the current Requirement R4 would become Requirement R3. 
Docket No. RM09-13-000 - 7 - 

14. Reference Document: NERC states that its Operating Committee has approved a 

“Time Monitoring Reference Document,” which details a process for identifying the 

Reliability Coordinator that will serve as the Interconnection Time Monitor for each 

Interconnection and outlines the responsibilities of Reliability Coordinators serving as 

Interconnection Time Monitors. NERC included the Reference Document in its filing; 

however, NERC indicates that the document is presented for informational purposes 

only, and that NERC is not requesting Commission approval of the Reference Document. 

4. Time Error Correction Reliability Standard Development

15. The NERC Operating Committee submitted a Standard Authorization Request 

(SAR) to the NERC Standards Committee on July 11, 2007, proposing changes to 

BAL-004-0. The Operating Committee requested that the Standards Committee use the 

“Urgent Action” process in addressing the proposed revisions. At its September 11, 2007 

meeting, the Standards Committee determined to post the SAR and proposed standard 

changes using the Urgent Action process, stating that the potential loss of a willing 

Reliability Coordinator to serve as the Interconnection Time Monitor justified use of the 

Urgent Access process. 

16. NERC conducted an initial ballot in October 2007, the results of which included 

ten negative ballots, including seven with comments. All seven commenters were 

concerned that the proposed revisions left unclear what entity will assume the 

responsibility for serving as the Time Monitor for each Interconnection. Three 

commenters also indicated that the revisions did not state responsibility for directing 

implementation of a Time Error Correction. Two commenters suggested that the 
Docket No. RM09-13-000 - 8 - 

Reliability Standards should include a requirement to comply with NAESB business 

practices because those practices also are FERC-approved. One commenter suggested 

revising Requirement R2 to omit the reference to the NAESB business practice, and one 

commenter objected to use of the Urgent Action process. 

17. In response to these comments, the NERC Operating Committee indicated that it 

was working on a documented process for identifying the entity that would serve as the 

Interconnection Time Monitor for each Interconnection and for reviewing the 

Interconnection Time Monitors’ performance on a forward-going basis, as it has done for 

many years. 

18. NERC posted its response to the comments on November 8, 2007, and 

subsequently conducted a recirculation ballot, as required under NERC’s Rules of 

Procedure. The revised standard passed with 97.45 percent of the 157 ballot pool 

participants voting, resulting in a weighted segment approval of 94.10 percent. 

19. The NERC Board of Trustees approved the revised Reliability Standard on 

March 26, 2008, and NERC filed its petition on March 11, 2009. NERC requests that 

BAL-004-1 become effective on the first day of the first quarter after applicable 

regulatory approval or, in those jurisdictions where regulatory approval is not required, 

upon Board of Trustees approval. 

II. Discussion

20. The Commission proposes to remand the proposed Reliability Standard, 

BAL-004-1, in order for NERC to develop several modifications, as discussed below. 
Docket No. RM09-13-000 - 9 - 

A. Requirement R1

21. NERC proposes to revise Requirement R1 to remove from the Reliability Standard 

the requirement that the NERC Operating Committee designate one Reliability 

Coordinator as the Interconnection Time Monitor in each Interconnection, arguing that 

the NERC Operating Committee is not a user, owner or operator of the Bulk-Power 

System and it is not appropriate for that Committee alone to assign requirements to users, 

owners or operators of the Bulk-Power System without NERC Board of Trustees’ 

approval. NERC further argues that it is not appropriate for a stakeholder-based 

committee to designate a particular entity for a position that will be accountable for 

complying with a Reliability Standard Requirement. 

Commission Analysis

22. With regard to Requirement R1, the Commission is concerned that the Time 

Monitor selection process is contained in a guidance document that is not subject to 

Commission review and may be changed without notice. Commission review of 

proposed changes, and appropriate notice of such proposed changes, is necessary to 

ensure that the changes are just, reasonable, not unduly discriminatory or preferential, 

and in the public interest. Thus, the Commission proposes, on remand, to direct NERC to 

describe the Interconnection Time Monitor designation process within a Commissionapproved document, such as NERC’s Rules of Procedure or within the Reliability 

Standard itself. 
Docket No. RM09-13-000 - 10 - 

B. Requirement R2

23. The revised Reliability Standard also proposes to delete Requirement R2 in its 

entirety. Requirement R2 includes the requirement that Interconnection Time Monitors 

monitor Time Error and initiate or terminate corrective action in accordance with the 

NAESB Time Error Correction Procedure. NERC states that now that the “Version 0 

Reliability Standards” are mandatory and enforceable, much of the process to implement 

Time Error Corrections has become a NAESB procedure, because Time Error Correction 

itself is not a reliability issue. NERC explains that the fact that an Interconnection Time 

Monitor chooses to act and initiate a Time Error Correction based on the NAESB 

procedure has no reliability relevance and that NERC Reliability Standards should not 

compel an entity to comply with NAESB business practices, and that eliminating 

Requirement R2 accomplishes this. NERC adds that there are no current concerns with 

the performance of the volunteer Interconnection Time Monitors, and that the NERC 

Operating Committee will continue to address Interconnection Time Monitor 

performance in the future should the Commission approve the proposed Reliability 

Standard. NERC concludes that approving the proposed Reliability Standard would 

maintain the status quo and serve the best interests of reliability. 

Commission Analysis

24. In Order No. 672, the Commission identified a number of criteria it will use in 

determining whether a proposed Reliability Standard or a proposed revision to a 

Reliability Standard is just, reasonable, not unduly discriminatory or preferential, and in 
Docket No. RM09-13-000 - 11 - 

the public interest.14 One of these criteria is that a proposed Reliability Standard must be 

clear and unambiguous as to what is required and who is required to comply.15 The 

Commission believes the proposal to remove Requirement R2 in its entirety does not 

satisfy this criterion, and therefore proposes to remand the proposed Reliability Standard. 

Removing Requirement R2 makes the Reliability Standard incomplete and ambiguous, 

since it would not explain the circumstances under which a Time Error Correction needs 

to be initiated or ended, indicate that Time Error Correction must be performed, or 

identify the entity that has the obligation and authority to initiate a Time Error 

Correction. 

25. The Commission therefore proposes to remand the proposed Reliability Standard 

and, further proposes that, on remand, NERC should modify its proposed changes to 

Requirement R2 to (1) indicate that the Time Monitor, designated according to a process 

described in a Commission-approved document as discussed above, is responsible for 

initiating or terminating a Time Error Correction in a reliable manner; and (2) explain the 

circumstances under which the Time Monitor should start or end a Time Error 

Correction. The Commission is not persuaded by NERC’s argument that much of the 

process to implement Time Error Corrections is now just a voluntary NAESB procedure, 

 14 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). 

15 Id. P 325. 
Docket No. RM09-13-000 - 12 - 

because Time Error Correction itself is not a reliability issue. In Order No. 693, we 

disagreed with arguments that Time Error Correction is really more a NAESB business 

practice. Rather, we stated that the Time Error Correction Reliability Standard is 

intended to ensure that Time Error Corrections are performed in a manner that does not 

adversely affect reliability, and the technical details, including the means to carry out the 

procedure, are a reliability issue.16 

26. We also are not persuaded by NERC’s argument that, because the Interconnection 

Time Monitors are performing well, we should approve removal of technical details from 

the Reliability Standard. The Reliability Standard should include technical details 

regarding what is required from all participants involved with Time Error Corrections to 

avoid confusion regarding each participant’s expectations and obligations. While the 

Commission does not oppose NERC’s proposal to remove the clause in Requirement R2 

directing the Time Monitor to proceed in accordance with the NAESB Time Error 

Correction Procedure, as noted above, the proposed Reliability Standard is incomplete 

and ambiguous as it does not include pertinent technical details regarding the Time Error 

Correction process. Additionally, when an issue has both reliability and business aspects, 

the Commission has directed NERC and NAESB to work together to coordinate their 

 16 Order No. 693, FERC Stats. & Regs. ¶ 31,242 at P 383. 
Docket No. RM09-13-000 - 13 - 

efforts in order to provide a workable Reliability Standard that addresses the reliability 

issue.17 The Commission expects that to occur here. 

27. NERC has stated that in its view Time Error itself is not a reliability risk, and the 

purpose of the Time Error Correction Reliability Standard is not to account for Time 

Error, but to ensure Time Error Corrections are implemented in a reliable manner. Any 

time the Balancing Authorities within an Interconnection undertake an actual 

modification to their generation dispatch to correct for Time Error, it must be coordinated 

and monitored by a Reliability Coordinator to ensure that each Balancing Authority 

schedules the same frequency and preclude negative impacts on reliable operation, 

allowing the Reliability Coordinator to maintain a wide area view of other activities, 

planned or unplanned, occurring on the system at the time. Any Reliability Coordinator 

can qualify to perform the Interconnection Time Monitor function, and each 

 17 See, e.g., Modification of Interchange and Transmission Loading Relief 

Reliability Standards and Electric Reliability Organization Interpretation of Specific 

Requirements of Four Reliability Standards, 123 FERC ¶ 61,064, at P 49 (2008) (“The 

Commission has long supported the coordination of business practices and Reliability 

Standards. As early as May 2002, the Commission urged the industry expeditiously to 

establish the procedures for ensuring coordination between NAESB and NERC.”); 

Preventing Undue Discrimination and Preference in Transmission Service, Order No. 

890-A, FERC Stats. & Regs. ¶ 31,261, at P 56 (2007), order on reh’g, Order No. 890-B, 

123 FERC ¶ 61,299 (2008) (“The Commission affirms the decision in Order No. 890 to 

rely on the NERC reliability standards development process, and the NAESB business 

practices development process, to achieve a more coherent and uniform determination of 

ATC. We disagree that this conflicts with the Commission’s obligations under section 

215 of the FPA.”); Electricity Market Design and Structure, 99 FERC ¶ 61,171, at P 22 

(2002), order on reh’g, 101 FERC ¶ 61,297 (2002) (“We also consider coordination 

between business practice standards and reliability standards to be critical to the efficient 

operation of the market.). 
Docket No. RM09-13-000 - 14 - 

Interconnection requires one Time Monitor, which is responsible for determining when to 

implement Time Error Corrections, and for coordinating their execution. The 

requirement to appoint a single Time Monitor for each Interconnection ensures that a 

Time Error Correction is well coordinated and communication runs smoothly. If more 

than one Time Monitor were assigned to each Interconnection, there would be a risk of 

uncoordinated Time Error Corrections, resulting in inefficient Time Error Corrections 

and inadvertent power flows (which could lead to congestion issues on the Bulk-Power 

System (potentially reaching or exceeding System Operating Limits or Interconnection 

reliability Operating Limits)) or failure to terminate a Time Error Correction quickly (due 

to unclear lines of authority, communication issues, or confusion when requested by a 

Reliability Coordinator or Balancing Authority) if necessary to preserve system 

reliability. 

28. The current, previously-approved Reliability Standard ensures that Time Error 

Corrections are implemented in a reliable manner by requiring one designated Reliability 

Coordinator to serve as Time Monitor for each Interconnection and to perform the 

function of calling for Time Error Corrections, taking into account system conditions, and 

to halt Time Error Corrections if system conditions warrant, as well as requiring 

Balancing Authorities to participate and follow the specified procedures. The current 

Reliability Standard also allows any Reliability Coordinator or Balancing Authority to 

call for termination of a Time Error Correction for reliability considerations. 

29. The greater reliability risk associated with Time Error Correction appears to lie in 

executing a Time Error Correction rather than in monitoring for Time Error. 
Docket No. RM09-13-000 - 15 - 

Accordingly, any penalties arising from the Time Error Correction Reliability Standard 

should appropriately consider and differentiate between the differing levels of reliability 

risk arising from differing actions required from Interconnection Time Monitors and 

should shield the Interconnection Time Monitors from liability beyond their control such 

as when a Balancing Authority fails to respond appropriately to directives from the 

Interconnection Time Monitors. 

30. Thus, NERC should consider developing compliance evaluation measures that 

assess the reliability risk associated with each action, and tie any penalty to each action. 

Requirement R2 might be divided into sub-requirements in order to facilitate 

development of such compliance evaluation measures. 

31. The Commission further reminds NERC that, in Order No. 693, we directed the 

Electric Reliability Organization to develop additional Measures and add Levels of NonCompliance to assure that the requirements in the current Requirement R3 are achieved.18

32. The Commission seeks comments on the proposals discussed above. 

III. Information Collection Statement

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

approve certain reporting and recordkeeping (collections of information) imposed by an 

agency.19 The information contained here is also subject to review under section 3507(d) 

 18 Order No. 693, FERC Stats. & Regs. ¶ 31,242 at P 384. 

19 5 CFR 1320.11. 
Docket No. RM09-13-000 - 16 - 

of the Paperwork Reduction Act of 1995.20 As stated above, the Commission previously 

approved, in Order No. 693, the Reliability Standard that is the subject of the current 

rulemaking. In the first instance, the Commission is proposing to remand the proposed 

revisions to BAL-004-1, thus the reporting burden would not change. In the event that 

the Commission, after receiving comments, determines to adopt the proposed revisions to 

the Reliability Standard, they are minor; therefore, they would not add to or increase 

entities’ current reporting burden. Thus, the current proposal would not materially affect 

the burden estimates relating to the currently effective version of the Reliability Standard 

presented in Order No. 693.21

34. For example, the proposed modifications to BAL-004-1 do not modify or 

otherwise affect the collection of information already in place. Moreover, the proposed 

removal of business practice-related requirements from Reliability Standard BAL-004-1 

likely will decrease, not increase, the reporting burden associated with the current, 

Commission-approved version of the Reliability Standard. 

35. Thus, the proposed modifications to the current Reliability Standard effected by 

this proposed rule will not increase the reporting burden nor impose any additional 

information collection requirements. 

36. The Commission does not foresee any additional impact on the reporting burden 

for small businesses, because the proposed modifications are minor and do not increase 

 20 44 U.S.C. 3507(d). 

21 See Order No. 693, FERC Stats. & Regs. ¶ 31,242 at P 1905-07. 
Docket No. RM09-13-000 - 17 - 

the existing burden. However, we will submit this proposed rule to OMB for 

informational purposes. 

Title: Modification of Time Error Correction Reliability Standard. 

Action: Proposed Collection. 

OMB Control No.: 1902-0244. 

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

Frequency of Responses: On Occasion. 

Necessity of the Information: This proposed rule proposes to remand modifications to a 

Reliability Standard pertaining to Time Error Corrections. 

Internal Review: The Commission has reviewed the proposed Reliability Standard and 

made a determination that its action is necessary to implement section 215 of the FPA. 

These requirements, if modified as discussed above should conform to the Commission’s 

expectation for Time Error Correction as well as procedures within the energy industry. 

37. Interested persons may obtain information on the reporting requirements by 

contacting the following: Federal Energy Regulatory Commission, 888 First Street, N.E. 

Washington, D.C. 20426 [Attention: Michael Miller, Office of the Executive Director, 

Phone: (202) 502-8415, fax: (202) 273-0873, e-mail: michael.miller@ferc.gov]. 

38. For submitting comments concerning the collection(s) of information and the 

associated burden estimate(s), please send your comments to the contact listed above and 

to the Office of Information and Regulatory Affairs, Office of Information and 

Regulatory Affairs, Washington, D.C. 20503 [Attention: Desk Officer for the 
Docket No. RM09-13-000 - 18 - 

Federal Energy Regulatory Commission, phone (202) 395-4650, fax: (202) 395-7285, 

e-mail: oira_submission@omb.eop.gov]. 

IV. Environmental Analysis

39. 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.22 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.23 The actions proposed herein fall within this categorical exclusion in the 

Commission’s regulations.

V. Regulatory Flexibility Act Analysis

40. The Regulatory Flexibility Act of 1980 (RFA)24 generally requires a descriptio

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

number of small entities. Agencies are not required to provide such an analysis 

would not have such an effect. The RFA mandates consideration of regulatory 

alternatives that accomplish the stated objectives of a proposed rule and that minimize 

n 

if a rule 

 22 Regulations Implementing the National Environmental Policy Act of 1969, 

Order No. 486, FERC Stats. & Regs. ¶ 30,783 (1987). 

23 18 CFR 380.4(a)(2)(ii). 

24 5 U.S.C. 601-12. 
Docket No. RM09-13-000 - 19 - 

any significant economic impact on a substantial number of small entities. The Small 

Business Administration’s Office of Size Standards develops the numerical defini

a small business. (

tion of 

See 13 CFR 121.201.) For electric utilities, 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 

ory 

 NERC 

 the imposition of financial penalties and other enforcement actions for 

dwest 

,600 miles of transmission lines and serves 15 states and one Canadian 

, 

d that connects 40,000 miles of transmission 

lines and more than 550 generation units. 

months did not exceed four million megawatt hours. 

41. NERC and the entities that act as Interconnection Time Monitors, and thus would 

be affected by the proposed Reliability Standard, do not fall within the RFA’s definition 

of small entity. NERC is the Commission-certified Electric Reliability Organization for 

the continental United States, and is responsible for developing and enforcing mandat

Reliability Standards for the United States. NERC enforces compliance with

Reliability Standards through a rigorous program of monitoring, audits and 

investigations, and

non-compliance.

42. The Midwest Independent Transmission System Operator, Inc. (Midwest ISO) is 

a non-profit organization with over 131,000 megawatts of installed generation. Mi

ISO has 93

province. 

43. The Electric Reliability Council of Texas (ERCOT) manages the flow of electric 

power to 22 million Texas customers. As the independent system operator for the region

ERCOT schedules power on an electric gri
Docket No. RM09-13-000 - 20 - 

44. The Western Electricity Coordinating Council (WECC) is responsible for 

coordinating and promoting bulk electric system reliability in the Western 

Interconnection. WECC’s service territory extends from Canada to Mexico. It includes 

the provinces of Alberta and British Columbia, the northern portion of Baja California, 

Mexico, and all or portions of the 14 Western states between. 

45. In any event, the RFA is not implicated by this proposed rule because by 

remanding the proposed Reliability Standard the Commission is maintaining the status 

quo until future revisions to the Reliability Standard are filed with and approved by the 

Commission. 

VI. Comment Procedures

46. The Commission invites interested persons to submit comments on the matters and 

issues proposed in this notice to be remanded, including any related matters or alternative 

proposals that commenters may wish to discuss. Comments are due [insert date that is 30 

days from publication in the FEDERAL REGISTER]. Comments must refer to Docket 

No. RM09-13-000, and must include the commenter’s name, the organization they 

represent, if applicable, and their address in their comments. 

47. The Commission encourages comments to be filed electronically via the eFiling 

link on the Commission's web site at http://www.ferc.gov. The Commission accepts 

most standard word processing formats. Documents created electronically using word 

processing software should be filed in native applications or print-to-PDF format and not 

in a scanned format. Commenters filing electronically do not need to make a paper 

filing. 
Docket No. RM09-13-000 - 21 - 

48. Commenters that are not able to file comments electronically must send an 

original and 14 copies of their comments to: Federal Energy Regulatory Commission, 

Secretary of the Commission, 888 First Street NE, Washington, DC 20426. 

49. All comments will be placed in the Commission’s public files and may be viewed, 

printed, or downloaded remotely as described in the Document Availability section 

below. Commenters on this proposal are not required to serve copies of their comments 

on other commenters. 

VII. Document Availability

50. 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. 

51. 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. 

52. User assistance is available for eLibrary and the Commission’s web site during 

normal business hours from FERC Online Support at (202) 502-6652 (toll free at (866) 

208-3676) or email at ferconlinesupport@ferc.gov, or the Public Reference Room at 
Docket No. RM09-13-000 - 22 - 

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

public.referenceroom@ferc.gov. 

By direction of the Commission. 

Nathaniel J. Davis, Sr., 

Deputy Secretary. 
Docket No. RM09-13-000 - 23 - 

APPENDIX A

Proposed Changes to Reliability Standard BAL-004-0 

Standard BAL-004-0 1 — Time Error Correction 

A. Introduction 

1. Title: Time Error Correction 

2. Number: BAL-004-01 

3. Purpose: 

The purpose of this standard is to ensure that Time Error Corrections are conducted in a 

manner that does not adversely affect the reliability of the Interconnection. 

4. Applicability: 

4.1. Reliability Coordinators 

4.2. Balancing Authorities 

5. Proposed Effective Date: April 1, 2005 First day of first quarter after applicable regulatory 

approval or, in those jurisdictions where regulatory approval is not required, upon Board of 

Trustees approval. 

B. Requirements 

R1. Only a Reliability Coordinator shall be eligible to act as Interconnection Time Monitor. A 

single Reliability Coordinator in each Interconnection shall be designated by the NERC

Operating Committee to serve as Interconnection Time Monitor. 

R2.The Interconnection Time Monitor shall monitor Time Error and shall initiate or terminate 

corrective action orders in accordance with the NAESB Time Error Correction Procedure. 

R3.R2. Each Balancing Authority, when requested, shall participate in a Time Error Correction 

by one of the following methods: 

R3.1.R2.1. The Balancing Authority shall offset its frequency schedule by 0.02 Hertz, 

leaving the Frequency Bias Setting normal; or 

R3.2.R2.2. The Balancing Authority shall offset its Net Interchange Schedule (MW) by an 

amount equal to the computed bias contribution during a 0.02 Hertz Frequency 

Deviation (i.e., 20% of the Frequency Bias Setting). 

R4.R3. Any Reliability Coordinator in an Interconnection shall have the authority to request the 

Interconnection Time Monitor to terminate a Time Error Correction in progress, or a 

scheduled Time Error Correction that has not begun, for reliability considerations. 

R4.1.R3.1. Balancing Authorities that have reliability concerns with the execution of a Time 

Error Correction shall notify their Reliability Coordinator and request the termination 

of a Time Error Correction in progress. 

C. Measures 

Not specified. 
Docket No. RM09-13-000 - 24 - 

D. Compliance 

Not specified. 

E. Regional Differences 

None identified. 

Draft 1: September 13, 2007Adopted by NERC Board of Trustees: February 8, 2005 Effective Date: April 1, 

2005