125 FERC ¶ 61,065 

UNITED STATES OF AMERICA 

FEDERAL ENERGY REGULATORY COMMISSION 

18 CFR Part 40 

Docket No. RM08-3-000; Order No. 716 

Mandatory Reliability Standard for Nuclear Plant Interface Coordination 

(Issued October 16, 2008) 

AGENCY: Federal Energy Regulatory Commission. 

ACTION: Final Rule. 

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

approves the Nuclear Plant Interface Coordination Reliability Standard developed by the 

North American Electric Reliability Corporation (NERC). In addition, pursuant to 

section 215(d)(5) of the FPA, the Commission directs NERC to develop a modification to 

the Reliability Standard to address a specific concern. The Reliability Standard requires a 

nuclear plant generator operator and its suppliers of back-up power and related 

transmission and/or distribution services to coordinate concerning nuclear licensing 

requirements for safe nuclear plant operation and shutdown and system operating limits. 

The Commission also approves four related definitions for addition to the NERC 

Glossary of Terms, and directs various changes to proposed violation risk factors, which 

measure the potential impact of violations of the Reliability Standard on the reliability of 

the Bulk-Power System. 

EFFECTIVE DATES: The Final Rule will become effective [insert date that is 30 days 

from the date that the Final Rule is published in the FEDERAL REGISTER]. 
Docket No. RM08-3-000 - 2 - 

FOR FURTHER INFORMATION CONTACT: 

Robert Snow (Technical Information) 

Office of Electric Reliability 

Division of Reliability Standards 

Federal Energy Regulatory Commission 

888 First Street, N.E. 

Washington, D.C. 20426 

(202) 502-6716 

Michael Gandolfo (Technical Information) 

Office of Electric Reliability 

Division of Reliability Standards 

Federal Energy Regulatory Commission 

888 First Street, N.E. 

Washington, D.C. 20426 

(202) 502-6817 

Richard M. Wartchow (Legal Information) 

Office of the General Counsel 

Federal Energy Regulatory Commission 

888 First Street, N.E. 

Washington, D.C. 20426 

(202) 502-8744 

Christy Walsh (Legal Information) 

Office of the General Counsel 

Federal Energy Regulatory Commission 

888 First Street, N.E. 

Washington, D.C. 20426 

(202) 502-6523 

SUPPLEMENTARY INFORMATION:
125 FERC ¶ 61,065 

UNITED STATES OF AMERICA 

FEDERAL ENERGY REGULATORY COMMISSION 

Mandatory Reliability Standard for Nuclear Plant 

 Interface Coordination 

Docket No. RM08-3-000 

ORDER NO. 716 

FINAL RULE 

(Issued October 16, 2008) 

TABLE OF CONTENTS

 Paragraph Numbers

I. Background .................................................................................................................... 2.

A. Proposed Reliability Standard NUC-001-1.............................................................. 2.

B. Proposed NERC Glossary Definitions .................................................................... 9.

C. Notice of Proposed Rulemaking............................................................................. 10.

D. Procedural Matters ................................................................................................. 12.

II. Discussion................................................................................................................... 13.

A. Approval of NUC-001-1 ....................................................................................... 14.

B. Applicability .......................................................................................................... 20.

1. Notification of Parties to Interface Agreements ................................................ 22.

2. Transmission Entities and Agreements on NPIRs ............................................. 32.

3. Dispute Resolution ............................................................................................. 74.

C. Form of Agreements............................................................................................... 83.

D. Enforcement and Conflicts with Other Regulations .............................................. 89.

E. Scope of Agreements ............................................................................................. 95.

1. Commission Questions ....................................................................................... 98.

2. Other Scope Related Issues .............................................................................. 105.

F. Coordination ......................................................................................................... 117.

1. Coordination Among Transmission Entities .................................................... 119.

2. Addressing System Changes ............................................................................ 128.

G. Violation Risk Factors.......................................................................................... 132.

1. General Violation Risk Factor Issues ............................................................... 137.

2. Requirement-Specific Issues ............................................................................ 151.

H. Violation Severity Levels..................................................................................... 188.

III. Information Collection Statement ........................................................................... 193.
Docket No. RM08-3-000 ii 

IV. Environmental Analysis .......................................................................................... 203.

V. Regulatory Flexibility Act Analysis......................................................................... 204.

VI. Document Availability ............................................................................................ 207.

Appendix A: List of Comments to Notice of Proposed Rulemaking 
UNITED STATES OF AMERICA 

FEDERAL ENERGY REGULATORY COMMISSION 

Before Commissioners: Joseph T. Kelliher, Chairman; 

 Suedeen G. Kelly, Marc Spitzer, 

 Philip D. Moeller, and Jon Wellinghoff. 

Mandatory Reliability Standard for Nuclear Plant 

Interface Coordination 

Docket No. RM08-3-000 

ORDER NO. 716 

FINAL RULE 

(Issued October 16, 2008) 

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

 the Commission 

approves the Nuclear Plant Interface Coordination Reliability Standard (NUC-001-1) 

developed by the North American Electric Reliability Corporation (NERC), the 

Commission-certified Electric Reliability Organization (ERO). In addition, pursuant to 

section 215(d)(5) of the FPA, the Commission directs NERC to develop a modification to 

the Reliability Standard to address a specific concern.2

 The Reliability Standard requires 

a nuclear plant generator operator and its suppliers of back-up power and transmission 

and/or distribution services to coordinate concerning nuclear licensing requirements for 

safe nuclear plant operation and shutdown and system operating limits (SOLs).3

 The 

 1

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

2

 16 U.S.C. 824o(d)(5). 

3

 NERC proposes to define nuclear plant generator operator as any generator 

operator or generator owner that is a nuclear plant licensee responsible for operation of a 

nuclear facility licensed to produce commercial power. See the discussion of NERC’s 

(continued...) 
Docket No. RM08-3-000 - 2 - 

Commission also approves four related definitions for addition to the NERC Glossary of 

Terms,4

 and directs various changes to proposed violation risk factors, which measure the 

potential impact of violations of the Reliability Standard on the reliability of the BulkPower System.5

 

I. Background

A. Proposed Reliability Standard NUC-001-1

2. On November 19, 2007, NERC filed its petition for Commission approval of the 

Nuclear Plant Interface Coordination Reliability Standard, designated NUC-001-1 

(November 19, 2007 Petition).6

 NERC supplemented the filing on December 11, 2007 

(December 11, 2007 Supplement) to propose four related NERC Glossary terms: 

 

proposed Glossary terms below. The Reliability Standard itself defines those suppliers 

who provide such generation, transmission and distribution services pursuant to 

agreements under NUC-001-1 as “transmission entities,” as discussed below. 

4

 See, e.g., Mandatory Reliability Standards for the Bulk-Power System, Order 

No. 693, RM06-16-000, 72 FR 16416, FERC Stats. & Regs. ¶ 31,242, at P 1893 (Apr. 4, 

2007), order on reh’g, Order No. 693-A, 120 FERC ¶ 61,053 (2007) (approving the 

NERC Glossary of Terms Used in Reliability Standards (as revised) (Glossary) originally 

filed April 4, 2006). 

5

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

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

effective until approved by the Commission, and the ERO must post on its website each 

effective Reliability Standard. 

6

 NUC-001-1 is attached in Appendix A to the March 20 Notice of Proposed 

Rulemaking (NOPR) in this proceeding, and is available on the Commission’s eLibrary 

document retrieval system in Docket No. RM08-3-000 and also on NERC’s website, 

http://www.nerc.com. See 18 CFR Part 40, Mandatory Reliability Standard for Nuclear 

Plant Interface Coordination, NOPR, Docket No. RM08-3-000, 73 FR 16,586 (March 28, 

2008), FERC Stats. and Regs. ¶ 32,629 (2008). 
Docket No. RM08-3-000 - 3 - 

“Nuclear Plant Generator Operator,” “Nuclear Plant Off-site Power Supply (Off-site 

Power),” “Nuclear Plant Licensing Requirements (NPLRs),” and “Nuclear Plant Interface 

Requirements (NPIRs).” In the November 19, 2007 Petition, NERC stated that the 

proposed Reliability Standard addresses the coordination of interface requirements for 

two domains: (i) Bulk-Power System planning and operations and (ii) nuclear power 

plant licensing requirements for off-site power necessary to enable safe nuclear plant 

operation and shutdown. 

3. Reliability Standard NUC-001-1 applies to nuclear plant generator operators and 

“transmission entities.” To account for the variations in nuclear plant design and grid 

interconnection characteristics, the Reliability Standard defines transmission entities as 

“all entities that are responsible for providing services related to Nuclear Plant Interface 

Requirements (NPIRs)” and lists eleven types of functional entities that could provide 

services related to NPIRs.7

 

4. In the November 19, 2007 Petition, NERC explained that nuclear plant generator 

operators and transmission entities operate according to separate, established reliability 

and safety procedures. To provide for coordination of these separate procedures, the 

ERO developed NUC-001-1 to require a nuclear plant generator operator to coordinate 

operations and planning with its transmission entities by developing procedures that 

 7

 The list of functional entities consists of transmission operators, transmission 

owners, transmission planners, transmission service providers, balancing authorities, 

reliability coordinators, planning authorities, distribution providers, load-serving entities, 

generator owners and generator operators. Applicability issues are addressed in a 

separate section, below. 
Docket No. RM08-3-000 - 4 - 

reflect nuclear plant licensing requirements and SOLs,8

 including interconnection 

reliability operating limits (IROLs), affecting nuclear plant operations.9

 The Reliability 

Standard requires nuclear plant generator operators and transmission entities to develop 

expectations and procedures for coordinating operations to meet the nuclear plant 

licensing requirements, as well as SOLs and IROLs, and to develop agreements or 

arrangements, which may include mutually agreed upon procedures or protocols, 

reflecting those expectations and procedures. These agreements or arrangements are 

known as interface agreements. The resulting operations and planning requirements 

developed in the agreements to address the nuclear plant licensing requirements, SOLs 

and IROLs are called nuclear plant interface requirements or NPIRs.10 NERC stated that 

Requirements R3 through R8, which state that the interface agreement parties will 

address the NPIRs in planning, operations, and facility upgrade and outage coordination, 

provide additional specificity on these expectations. 

 8

 The NERC Glossary defines system operating limit or SOL as “the value . . . that 

satisfies the most limiting of the prescribed operating criteria for a specified system 

configuration to ensure operation within acceptable reliability criteria. . . .” 

9

 The NERC Glossary defines IROL as a “system operating limit that, if violated, 

could lead to instability, uncontrolled separation, or Cascading Outages that adversely 

impact the reliability of the bulk electric system.” 

10 See NUC-001-1, Requirement R2 and the proposed NERC Glossary term, 

Nuclear Plant Interface Requirements (NPIR). 
Docket No. RM08-3-000 - 5 - 

5. In the November 19, 2007 Petition, NERC noted that nuclear plant generator 

operators must already fulfill nuclear licensing requirements for off-site power.11 NERC 

stated that, while various forms of agreements exist to meet the nuclear power plant 

general design criterion for off-site power, NUC-001-1 places a new, mandatory and 

enforceable obligation under section 215 of the FPA on both nuclear plant generator 

operators and transmission entities. NUC-001-1 requires these entities to inform one 

another of limits and requirements on their systems and to enter into agreements to 

coordinate and operate their systems to address nuclear plant licensing requirements and 

related system limits. 

6. The nuclear plant licensing requirements addressed in the Reliability Standard 

include requirements for off-site power to enable safe operation and shutdown during an 

electric system or plant event and requirements for avoiding nuclear safety issues as a 

result of changes in electric system conditions during a disturbance, transient, or normal 

conditions. NERC cited general design criterion 17 for nuclear power plants, which 

requires nuclear plant generator operators to obtain off-site electric power that will 

provide sufficient capacity to permit safety systems to function, assure that reactor 

coolant design limits are not exceeded, prevent core cooling, and maintain containment 

integrity and other vital functions. 

 11 The Nuclear Regulatory Commission (NRC), which regulates facilities that are 

associated with reactor safety or emergency response at a nuclear generation plant, has 

regulatory requirements for offsite power systems, as provided in the NRC regulations, 

10 CFR Part 50, Appendix A — General Design Criteria for Nuclear Power Plants, 

criterion 17. 
Docket No. RM08-3-000 - 6 - 

7. NERC stated that NUC-001-1, in combination with the nuclear license general 

design criteria requirements, achieves the vital public interest of assuring safe nuclear 

power generation. According to NERC, the Reliability Standard is beneficial to nuclear 

plant generator operators because it will assist them in meeting nuclear plant licensing 

requirements to safely produce nuclear power. It is also beneficial to Bulk-Power System 

users, due to the significant support that nuclear power plants provide to the Reliable 

Operation of the Bulk-Power System. 

8. NERC requested that NUC-001-1 take effect in areas subject to the Commission’s 

jurisdiction on the first day of the first full calendar quarter falling 15 months after 

Commission approval. 

B. Proposed NERC Glossary Definitions 

9. In the December 11, 2007 Supplement, NERC proposed to add the following four 

terms to the NERC Glossary: 

Nuclear Plant Generator Operator: Any Generator Operator or Generator 

Owner that is a [n]uclear [p]lant [l]icensee responsible for operation of a 

nuclear facility licensed to produce commercial power. 

Nuclear Plant Off-site Power Supply or Off-site Power: The electric power 

supply provided from the electric system to the nuclear power plant 

distribution system as required per the nuclear power plant license. 

Nuclear Plant Licensing Requirements (NPLRs): Requirements included in 

the design basis of the nuclear plant and statutorily mandated for the 

operation of the plant, including nuclear power plant licensing requirements 

for: 1) Off-site power supply to enable safe shutdown of the plant during 

an electric system or plant event; and 2) Avoiding preventable challenges to 

nuclear safety as a result of an electric system disturbance, transient, or 

condition. 

Nuclear Plant Interface Requirements (NPIRs): The requirements, based 
Docket No. RM08-3-000 - 7 - 

on NPLRs and Bulk Electric System requirements, that have been mutually 

agreed to by the Nuclear Plant Generator Operator and the applicable 

Transmission Entities. 

C. Notice of Proposed Rulemaking

10. On March 20, 2008, the Commission issued a Notice of Proposed Rulemaking 

(NOPR), which proposed to approve Reliability Standard NUC-001-1 as mandatory and 

enforceable. In the NOPR, the Commission also raised a number of concerns and asked 

for clarification from the ERO and comments from the public. The Commission 

proposed to approve the NERC definitions and proposed revisions to the violation risk 

factors for NUC-001-1. 

11. As described more fully below, the ERO and other interested parties provided 

comments in response to the NOPR. These comments are summarized and addressed in 

the discussion portion of this Final Rule. 

D. Procedural Matters

12. The NOPR required that comments be filed within 30 days after publication in the 

Federal Register, or April 28, 2008. On April 16, 2008, the Commission granted a 

motion filed by EEI and NEI extending the comment date to May 13, 2008. 

Approximately 23 entities filed comments, including several late-filed comments. The 

Commission accepts these late filed comments. Appendix A provides a list of the 

commenters. 

II. Discussion

13. In this Final Rule, the Commission approves Reliability Standard, NUC-001-1, 

effective as proposed by the ERO. In addition, pursuant to section 215(d)(5) of the FPA, 
Docket No. RM08-3-000 - 8 - 

the Commission directs the ERO to develop a modification to one provision, 

Requirement R9.3.5, to clarify the impact of the Requirement on two important operating 

procedures, in response to comments received. This Final Rule largely accepts the 

explanations and clarifications provided in the ERO’s comments and addresses the 

positions raised by NERC and the other commenters on the specific issues raised in the 

NOPR. As proposed in the NOPR, this Final Rule does not take any action on the 

regional difference, because it applies outside of the United States and is not applicable to 

any facilities within the Commission’s jurisdiction.12 The Final Rule directs 

modifications to the violation risk factors for the Reliability Standard, as discussed 

below. Finally, the Final Rule approves the additional Glossary terms. 

A. Approval of NUC-001-1 

14. NERC and other commenters generally support the NOPR proposal to approve 

Reliability Standard NUC-001-1.13 EEI, Ameren, Dominion, and Ontario IESO and 

Hydro One state that they support approval of the Reliability Standard as improving 

coordination between nuclear plant generator operators and transmission entities. 

15. In contrast, CenterPoint Energy asserts that NUC-001-1 is flawed and 

unnecessary, arguing that it deals with contractual matters that should be addressed 

 12 NERC proposes to adopt as a regional difference for Canada a separate 

definition of nuclear plant licensing requirements that does not reference regulatory 

requirements for off-site power supply for safe plant shutdown because Canada does not 

have regulatory standards for off-site power comparable to those established by the NRC. 

13 See, e.g., Constellation, Detroit Edison, Dominion, EEI, Entergy, Exelon, 

Ontario IESO and Hydro One, Midwest ISO, and Ontario Power comments. 
Docket No. RM08-3-000 - 9 - 

through a tariff or standard agreement, not a Reliability Standard, to ensure that nuclear 

plant generator operators do not receive unreasonable competitive advantages over other 

competitors.14 CenterPoint Energy also states that the Commission should mitigate 

potential market power and transparency concerns created by the Reliability Standard in 

regions where an independent transmission operator is not the entity that performs 

interconnected operations with the nuclear plant generator operators.15 CenterPoint 

Energy is concerned that a requirement in a NPIR could result in a change in 

transmission operations and cause significant reliability or market disruptions. 

According to CenterPoint Energy, this could be mitigated by a requirement that nuclear 

plant generator operators retain documentation “whenever a nuclear plant operator 

effectively alters transmission operating decisions of the independent operator due to 

alleged NPIR concerns.”16 

16. National Grid emphasizes that NUC-001-1 is intended to address technical aspects 

of the interface between transmission entities and nuclear plant generator operators as 

opposed to the commercial aspects. According to National Grid, the proposed Reliability 

Standard obliges all responsible entities to work together on creating NPIRs suitable to 

each nuclear power plant, whether the service provided to the nuclear power plant is 

subject to federal or state jurisdiction. According to National Grid, execution of an 

 14 CenterPoint Energy comments at 1. 

15 Id. at 3. 

16 Id. at 4. 
Docket No. RM08-3-000 - 10 - 

interface agreement and subsequent compliance with NPIRs should not change the 

jurisdictional status of the services provided. National Grid also requests that the 

Commission direct the ERO and its Regional Entities to ensure that nuclear plant 

generator operators look to the proper transmission entities for the provision of NPIRrelated services and that they bear incremental costs of NPIR compliance. 

Commission Determination 

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

Standard NUC-001-1 as mandatory and enforceable. The Commission finds that 

coordination of nuclear licensing requirements and grid operating limits through 

auditable interface agreements will ensure that an important resource is operated safely 

and reliably, while minimizing grid disturbances from separation of nuclear power plants 

from the grid, due to the loss or degradation of auxiliary power supply. Further, the 

Commission disagrees with CenterPoint Energy that the Reliability Standard is flawed 

and unnecessary. Nuclear power plants represent an important power resource and 

provide reliability support throughout the Bulk-Power System. Unlike other large units, 

nuclear power plants are subject to separate regulatory oversight that mandates stringent 

operating and auxiliary power requirements, which, if not met, require the plant to 

separate from the grid. We find that NUC-001-1 is an appropriate means to ensure that 

the particular requirements faced by nuclear power plants are met, maximizing the 

reliability support to be provided while minimizing the potential for grid disruption 

caused by separation. 
Docket No. RM08-3-000 - 11 - 

18. CenterPoint Energy provides no evidence to support its claims that assertions by 

nuclear plant generator operators concerning NPIRs could be used to affect grid or 

market operations. We note that the NRC oversees a nuclear power plant’s development 

of and compliance with its licensing requirements related to facilities that are associated 

with reactor safety or emergency response through its regulatory proceedings. NUC-001-

1 supplements NRC oversight of nuclear plant facilities by providing oversight of the 

transmission entities that operate facilities on the Bulk-Power System providing off-site 

power supply and delivery service to meet nuclear plant licensing requirements. 

19. Neither National Grid nor CenterPoint Energy has provided any information on 

how the NPIRs could result in undue negative impact on competition. Because all 

jurisdictional tariffs have requirements for the provision of non-discriminatory service, 

the Commission does not anticipate that transmission entities would agree to NPIRs that 

do not provide for comparable service. While comparable service includes appropriate 

cost allocations, that subject is outside of the scope of this proceeding.17 In regard to 

National Grid’s non-cost-related comments, National Grid has not suggested any way in 

which the Reliability Standard could change the jurisdictional status of service provided 

to a nuclear plant generator operator, and therefore, we do not see a need to address this 

concern here. 

 17 See NERC November 19, 2007 Petition, Exhibit B, Record of Proposed 

Reliability Standard Development, “Consideration of Comments, Draft 2 SAR on 

Nuclear Plant Offsite Power Reliability, May 23, 2005” at 3 of 25 (agreeing that the 

Nuclear Reliability Standard does not address cost recovery issues). 
Docket No. RM08-3-000 - 12 - 

B. Applicability 

20. Reliability Standard NUC-001-1 applies to nuclear plant generator operators and 

transmission entities, such as off-site power suppliers and entities that provide 

distribution and transmission services that affect plant operations. NERC states that the 

Reliability Standard meets the criteria that it apply to users, owners and operators of the 

Bulk-Power System because it will apply to transmission entities, which are responsible 

for providing NPIR-related services. Therefore, these entities are subject to the 

Reliability Standard and may be registered pursuant to the NERC compliance registry 

process. 

21. The Commission approves the applicability provisions of NUC-001-1 as 

appropriately identifying the applicable entities, while providing the flexibility to 

accommodate differing design criteria, grid configurations and services procured by the 

various nuclear power plants addressed. The Commission finds appropriate the ERO’s 

use of the term transmission entities in NUC-001-1 to refer to the subset of registered 

entities that provide services to nuclear plant generator operators. Similarly, the term 

nuclear plant generator operators refers to the subset of generator owners and generator 

operators that are NRC licensees. While the Commission prefers that Reliability 

Standards apply to all entities within a functional category defined in the Registry 

Criteria, it has approved appropriate limitations incorporated into an applicability 
Docket No. RM08-3-000 - 13 - 

provision.18 We address the specific questions raised by the Commission in the NOPR, 

as well as responses and comments, on an issue-by-issue basis below. 

1. Notification of Parties to Interface Agreements 

22. Requirement R1 of NUC-001-1 provides: “[t]he Nuclear Plant Generator 

Operator shall provide the proposed NPIRs in writing to the applicable transmission 

entities and shall verify receipt.” In the NOPR, the Commission indicates its 

understanding that Requirement R1 means that if a nuclear plant generator operator fails 

to provide all appropriate NPIRs to an applicable transmission entity, the operator will 

not be in compliance with the Reliability Standard.19 Further, the Commission observed 

that a nuclear plant generator operator will know, as a result of the NRC licensing 

process, which applicable entities to contact and what services are needed to meet NRC 

requirements. 

a. Comments 

23. NERC and Entergy agree that it is unlikely that a nuclear plant generator operator 

would fail to obtain appropriate services and identify and contact transmission entities. 

They concur that a nuclear plant generator operator will know the applicable services it 

needs through the NRC licensing process. NERC explains that, as an NRC licensing 

 18 See, e.g., MOD-010-0 (limiting applicability to members of NERC functional 

classes specified in the MOD-011-0, Requirement R1); and PRC-007-0 (limiting 

applicability to members of functional classes owning and operating an underfrequency 

load shedding program). 

19 NOPR at P 21. 
Docket No. RM08-3-000 - 14 - 

requirement, the nuclear plant generator operator would have previously coordinated with 

transmission entities. 

24. Entergy describes the NRC licensing process and explains that a nuclear plant 

generator operator will know the capability of its offsite power supplier to supply the 

power required during operations as well as situations that could result in a loss of offsite power. Entergy concludes that “it is very unlikely” that a nuclear plant generator 

operator would fail to contact the entities necessary to receive the appropriate services. 

25. NEI agrees with the Commission’s observation that nuclear plant generator 

operators are capable of identifying and contacting the appropriate transmission entities. 

However, NEI opposes any proposal to expand this notification requirement into an 

affirmative requirement that nuclear plant generator operators must “obtain appropriate 

services” from transmission entities. NEI requests that the Commission clarify that this is 

a notification requirement, not a requirement to obtain services (that, according to NEI, 

should not be included in the Reliability Standard). 

26. According to NEI, the obligations of the nuclear plant generator operator to 

provide notice to transmission entities should be limited to those entities known or 

reasonably knowable by the nuclear plant generator operator, since the identity of some 

transmission entities could be proprietary. NEI argues that transmission entities that have 

been notified by the nuclear plant generator operator that they are responsible for 

providing services relating to NPIRs should then have the obligation to provide further 

notice to other applicable transmission entities that provide services to the first 

transmission entities. 
Docket No. RM08-3-000 - 15 - 

27. ATC proposes replacing the phrase “proposed NPIRs” with a reference to nuclear 

plant licensing requirements including an explicit recognition of a transmission entity’s 

ability to propose transmission system operating limits to be addressed as NPIRs in the 

interface agreement. According to ATC, this will remedy the current conundrum, where 

a nuclear power plant is obligated to “propose NPIRs,” while NPIRs are defined as 

having been agreed to by both parties. 

b. Commission Determination 

28. The Commission accepts NERC’s proposal to require nuclear plant generator 

operators to identify entities that provide services related to off-site power supply or 

delivery. With NERC’s and other industry representatives’ assurances, the Commission 

is satisfied that the appropriate transmission entities can be identified based on the 

nuclear plant generator operators’ historical compliance with NRC licensing 

requirements to obtain off-site power and develop solutions with grid operators to avoid 

service interruptions from foreseeable grid disturbances. 

29. The Commission does not share the concern expressed by commenters that 

Requirement R1 imposes an affirmative obligation on a nuclear plant generator operator 

to obtain appropriate services. Requirement R1 obligates a nuclear plant generator 

operator to provide proposed NPIRs in writing to transmission entities. The nuclear plant 

generator operator is already obligated to obtain service to meet NPIRs that are based on 

nuclear plant licensing requirements enforced by the NRC. We note that Requirement R2 

does contain an affirmative obligation that the nuclear plant generator operator and 

transmission entities develop and execute an interface agreement to implement NPIRs. 
Docket No. RM08-3-000 - 16 - 

With this understanding, we find that the nuclear plant generator operators’ role in 

providing notice of proposed NPIRs to all applicable transmission entities is appropriate. 

A nuclear plant generator operator may be found in noncompliance for failing to provide 

notice to an entity responsible for providing services relating to its off-site power-related 

licensing requirements. 

30. NERC and industry representatives clarify that the entities that the nuclear plant 

generator operator is to provide with proposed NPIRs are known to the nuclear plant 

generator operator based on the nuclear plant generator operator’s historic need to obtain 

service to meet their license requirements. The Commission does not share NEI’s 

concern that the nuclear plant generator operator may not know upstream utilities that 

provide service to the primary service providers. We note that Requirement R1 obligates 

a nuclear plant generator operator to contact entities that provide services to meet NPIRs, 

which are based on nuclear licensing requirements for off-site power supply and avoiding 

foreseeable grid disruptions. Any upstream service providers that provide services 

related to NPIRs must be identified by the nuclear plant generator operator in the NPIRs. 

Otherwise there is no obligation to identify non-primary service providers. 

31. As for ATC’s concern with the use of the phrase “proposed NPIRs” as opposed to 

a reference to nuclear plant licensing requirements that will form the basis for NPIRs, the 

Commission finds the current Requirements are sufficiently clear and flexible to 
Docket No. RM08-3-000 - 17 - 

accommodate counterproposals by transmission entities to address system limits during 

interface agreement development.20 

2. Transmission Entities and Agreements on NPIRs 

32. NUC-001-1 applies to nuclear plant generator operators and transmission entities. 

The Applicability section of the Reliability Standard (i) defines transmission entities as 

“all entities that are responsible for providing services related to Nuclear Plant Interface 

Requirements (NPIRs),” and (ii) lists 11 types of entities, identified in the NERC registry 

criteria based on the NERC Functional Model,21 that may serve as transmission entities. 

33. NERC explained in its November 19, 2007 Petition: 

Because the relationship of each nuclear plant generator operator with its 

provider of transmission-related services is unique, it will be important 

and necessary for the registration process to identify on a plant-by-plant 

basis the specific transmission entities required to identify NPIRs and 

develop the requisite agreement. Once the agreement becomes final, all 

applicable nuclear plant generator operator and transmission entities for 

each agreement will be identified by name and specific function. The 

respective Regional Entity will then be responsible for ensuring that each 

nuclear plant generator operator and transmission entities identified in the 

agreement(s) is registered on the NERC Compliance Registry for the 

 20 The Commission notes that ATC originally suggested the language “proposed 

NPIRs” as an alternative to the original draft language “current” NPIRs. NERC 

November 19, 2007 Petition, Exhibit B, “Consideration of Comments on 1st Draft of 

Nuclear Plant Off-site Power Coordination Standard,” at 15 of 69 (Aug. 15, 2006). 

21 NERC Statement of Compliance Registry Criteria (Revision 3), filed with its 

Supplemental Information Filing, Docket No. RM06-16-000 (Feb. 6, 2007), approved in 

Order No. 693 at P 92-96; NERC Functional Model, Version 3 (approved by NERC 

Board of Trustees, Feb. 13, 2007). 
Docket No. RM08-3-000 - 18 - 

applicable function(s). NERC will work with the Regional Entities to 

ensure that all nuclear plant generator operator and transmission entities 

included in the agreements that result from the NPIRs are listed in the 

Compliance Registry for this specific reliability standard.22 

a. NOPR Proposals 

34. In the NOPR, the Commission proposed to accept the identification and 

registration process described by NERC in the November 19, 2007 Petition with the 

understanding that NERC will use its authority under the compliance registry process to 

register all users, owners, and operators of the Bulk-Power System that provide 

transmission or generating services relating to off-site power supply or delivery.23 

Further, the Commission requested clarification from the ERO, as well as public 

comment, on three issues: (i) how NERC’s plan to identify transmission entities on a 

“plant-by-plant basis” in the compliance registration process relates to the definition of 

bulk electric system; (ii) whether NUC-001-1 is enforceable against a transmission entity 

upon execution of an interface agreement or some earlier time; and (iii) how the 

Reliability Standard will be implemented for an entity that both operates a nuclear power 

plant and is responsible to provide services related to NPIRs. 

 22 NERC November 19, 2007 Petition at 12-13. 

23 See id. at 12. 
Docket No. RM08-3-000 - 19 - 

i. Identification of Entities Subject to NUC-001-1 through the 

 Compliance Registry 

(1) NOPR

35. As mentioned above, the Commission proposed in the NOPR to accept NERC’s 

Applicability approach for NUC-001-1 with the understanding that NERC would use its 

authority under the compliance registry process to register all users, owners and operators 

of the Bulk-Power System that provide transmission or generating services relating to 

off-site power supply or delivery.24 Further, the NOPR noted that certain auxiliary power 

suppliers and transmission service providers may serve nuclear power plants through 

facilities that fall outside the definition of bulk electric system. The NOPR stated that: 

The Commission understands that NERC and the Regional Entities will 

register these and other service providers that provide interconnection 

and/or auxiliary power facilities vital to nuclear plant operation through 

NERC’s authority to register an owner or operator of an otherwise exempt 

facility that is needed for Bulk-Power System reliability, on a facility-byfacility basis. Once registered, the transmission entity providing such 

services to a nuclear generating plant may be subject to other Reliability 

Standards applicable to the functional class within the NERC functional 

model for which the transmission entity has been registered, as deemed 

appropriate through the registration process. With this understanding, the 

Commission proposes to accept the scope of the definition of transmission 

entities as appropriate.25 

(2) Comments

36. NERC states that it concurs with the Commission’s understanding that NERC will 

use its authority under the compliance registry process to register all users, owners and 

 24 NOPR at P 25-26. 

25 Id. P 26 (footnotes omitted). 
Docket No. RM08-3-000 - 20 - 

operators of the Bulk-Power System that provide transmission or generating services 

relating to off-site power supply or delivery. NERC will register the owner of an 

otherwise exempt facility on a facility-by-facility basis. Further, NERC agrees that, once 

registered, the transmission entity may be subject to other Reliability Standards 

applicable to the functional class within the NERC Functional Model, as deemed 

appropriate through the registration process, with an exception for low-voltage facilities, 

as discussed in section II(B)(2)(b) below. 

37. EEI generally agrees with the Commission’s conclusion that, once registered, a 

transmission entity providing services to a nuclear generating plant may be subject to 

other Reliability Standards applicable to the function for which the transmission entity 

has been registered. EEI also supports NERC’s interpretation that identification as a 

transmission entity under NUC-001-1 Requirements should not change a party’s 

obligations under other Reliability Standards. 

38. NEI suggests that entities that are not currently subject to NERC registration, 

jurisdiction, and enforcement authority should be able to sign an interface agreement 

without submitting to NERC jurisdiction. NEI states that such an entity may be bound to 

comply with the interface agreement, but should not automatically be subject to all other 

NERC Reliability Standards and enforcement authority. NEI predicts that subjecting 

entities to NERC jurisdiction and enforcement authority will dissuade parties from 

signing interface agreements, contrary to the intent of this Reliability Standard. The 

applicability of the other Reliability Standards should be determined by the governing 

statute and regulations, and the terms of the other Reliability Standards, and should not be 
Docket No. RM08-3-000 - 21 - 

incorporated through this Reliability Standard. According to NEI, the Regional Entity 

registration process, not the execution of an interface agreement, determines whether an 

entity is subject to NUC-001-1. NEI asks the Commission to clarify that entities that sign 

an interface agreement are not automatically subject to NERC jurisdiction for Reliability 

Standards beyond NUC-001-1. 

39. Southern suggests that it may not be appropriate to apply certain Reliability 

Standards requirements to nuclear plant generator operators, in particular those relating to 

“functions of supplying energy and Interconnected Operations Services.” On the other 

hand, entities registered as a generator owner or generator operator may fulfill the 

requirements set forth in NERC’s definitions of these terms, but may not be licensed by 

the NRC and may not be “responsible for operation of a nuclear facility.” Southern asks 

the Commission to direct NERC to review the application of its registration requirements 

to nuclear plant generator operators. 

40. Several commenters object to the use of the term transmission entities. Wisconsin 

Electric suggests that NUC-001-1 does not follow the NERC Functional Model, due to 

use of the term transmission entities. TVA makes a similar objection to the term nuclear 

plant generator operator, which does not appear in the NERC functional model, and 

suggests use of the term generator operators of nuclear plants with the Applicability 

section only listing generator operator. Southern suggests that, under the definition of 

nuclear plant generator operator, there may be licensees that do not meet the definition of 

a generator operator or generator owner, as nuclear plant generator operator is defined. 

According to Southern, some NRC licensees may be responsible for operating nuclear 
Docket No. RM08-3-000 - 22 - 

facilities but may not meet NERC’s definitions of a generator owner or generator 

operator. 

41. Constellation agrees that the nuclear plant generator operator must take the lead in 

identifying transmission entities, but urges the Commission to implement a dispute 

resolution process to assist the nuclear plant generator operators. Constellation is 

concerned that, under NUC-001-1, the nuclear plant generator operator will have the 

primary burden of ensuring that the parties enter into NPIR agreements; however, 

Constellation also argues that a transmission entity must be appropriately identified and 

have entered into an NPIR agreement before it is formally included in the NERC 

Compliance Registry. 

(3) Commission Determination

42. The Commission accepts NERC’s approach to determining applicable entities. 

The Commission agrees with the ERO that the identification of transmission entities, 

which may fit any one of 11 functional categories described in the NERC Functional 

Model, provides the ERO with needed breadth and flexibility in identifying and 

registering all users, owners and operators of the Bulk-Power System that provide 

services related to NPIRs. 

43. Further, the ERO makes clear that, in implementation, it plans to register an owner 

or operator of an otherwise exempt facility that is needed for Bulk-Power System 

reliability, on a facility-by-facility basis. Once registered, a transmission entity may be 

subject to other applicable Reliability Standards, as deemed appropriate through the 

registration process. The Commission agrees that it is appropriate that a registered 
Docket No. RM08-3-000 - 23 - 

transmission entity comply with other applicable Reliability Standards for the functional 

category for which it is registered. This approach will support Bulk-Power System 

reliability and better assure that a transmission entity is capable of satisfying 

responsibilities set forth in an interface agreement. 

44. NEI requests clarification that entities that sign an interface agreement are not 

automatically subject to ERO jurisdiction for Reliability Standards beyond NUC-001-1. 

As discussed above, the Commission agrees with the ERO that Reliability Standards 

beyond NUC-001-1 should apply to a newly-registered transmission entity, for the 

functional category for which it is registered. Further, we observe that the ERO indicates 

that it will make this determination “as deemed appropriate through the registration 

process.” We understand this to mean that the ERO has reserved some flexibility in 

determining which Reliability Standards are to be applied to a newly-registered 

transmission entity, and the ERO may consider individual circumstances in the process. 

The Commission agrees with NEI that the applicability of particular Reliability Standards 

beyond NUC-001-1 should not be decided in this proceeding. Rather, we leave it to the 

ERO to make such determinations in the first instance in the registration process. 

45. Southern comments that it may not be appropriate to require nuclear plant 

generator operators to comply with certain Reliability Standards that apply to generator 

owners and generator operators. The Commission, however, is not convinced that a 

blanket waiver is warranted. Rather, similar to our explanation immediately above, the 

ERO may consider the individual circumstances of a generator owner or generator 

operator and determine whether, for example, a registered entity is needed for Bulk-
Docket No. RM08-3-000 - 24 - 

Power System reliability and operates facilities that are addressed in a particular 

Reliability Standard. 

46. Southern has not provided any specific examples of nuclear plant licensees that 

would not meet NERC’s definition of nuclear plant generator operator. The Commission 

addresses NERC’s registry determinations in appropriate proceedings on appeal. A 

registry proceeding may address whether a generator owner or operator meets the NERC 

registry criteria or should otherwise be registered based on a finding that the facility is 

material to Bulk-Power System reliability. We also reject the concerns raised by 

Wisconsin Electric and TVA that the terms transmission entity and nuclear plant 

generator operator do not appear in the NERC Functional Model. While the NERC 

Functional Model is a useful guidance document, “the Applicability section of a 

particular Reliability Standard should be the ultimate determinant of applicability of each 

Reliability Standard.”26 Moreover, the ERO’s definition of transmission entity is linked 

to the functional categories set forth in the NERC Functional Model.27 Likewise, the 

nuclear plant generator operator can simply be viewed as a sub-category of the generator 

operator function. 

 26 Order No. 693 at P 127. 

27 See Reliability Standard NUC-001-1, Section A.4.2 
Docket No. RM08-3-000 - 25 - 

 b. Applicability to Small Entities and Low Voltage Facilities

i. NOPR

47. In the NOPR, the Commission noted that some nuclear power plants may obtain 

auxiliary power through lower voltage facilities that are not included in a Regional 

Entity’s definition of bulk electric system and that other nuclear power plants may retain 

alternate sources of auxiliary power provided through lower voltage facilities operated by 

a small utility or cooperative that is not included in a Regional Entity’s definition of bulk 

electric system.28 The Commission sought clarification from NERC on how it would 

register such entities and how this relates to the definition of bulk electric system. 

 ii. Comments

48. NERC clarifies that “for lower voltage facilities that provide such services to a 

Nuclear Power Plant, the registration of those entities and the applicability of the NERC 

Reliability Standards therein to that functional class of entities will be limited to those 

facilities identified by the Nuclear Plant Generator Operator in its NPIRs.”29 

49. Constellation anticipates that some transmission entities, in particular those that 

are not previously registered, may be reluctant to enter into nuclear interface agreements. 

Constellation is concerned that small generators that are currently exempt from 

registration may be unwilling to continue to provide services or enter into new 

agreements for services if provision of such services causes them to be registered by 

 28 NOPR at P 26. 

29 NERC comments at 8. 
Docket No. RM08-3-000 - 26 - 

NERC. Constellation cites the cost burdens and risk of penalties as having a chilling 

effect on these entities’ willingness to continue to provide their discrete services to 

nuclear power plants. Constellation suggests that the curtailment of such services could 

impair the ability of nuclear plant generator operators to meet their license requirements. 

To address these concerns, Constellation requests that the Commission direct NERC to 

evaluate these risks and to propose mechanisms to ensure that small entities will not be 

deterred from providing services. 

50. Entergy explains that under the NRC license requirements, a nuclear power plant 

is required to have two sources of off-site power. For one of Entergy’s plants, one of 

those sources relies, at certain times, on reactive power support from a small hydropower 

facility that generates power at a distribution level voltage, and Entergy and the facility 

have entered into an agreement for that reactive power support. According to Entergy, 

this facility is not currently registered or part of the bulk electric system. Entergy 

expresses concern that if this entity becomes subject to NUC-001-1, it may cancel its 

current service agreement with Entergy because the risk of potential penalties and future 

compliance costs could be too high, thus jeopardizing Entergy’s NRC license. Therefore, 

Entergy asks the Commission to clarify that if an entity does not currently qualify for 

inclusion on the NERC Compliance Registry, provision of NPIR-related services will not 

subject that entity to registration. 

iii. Commission Determination

51. The Commission accepts NERC’s clarification that registration of lower voltage 

facilities and the applicability of NUC-001-1 will be limited to those facilities identified 
Docket No. RM08-3-000 - 27 - 

by the nuclear plant generator operator in its NPIRs.30 We would expect that any NPIRs 

agreed to between a nuclear plant generator operator and transmission entity would 

include all facilities needed to transmit offsite power and auxiliary power to the nuclear 

facility. The Commission remains sensitive to the need for NERC to register operators of 

lower-voltage facilities used to deliver off-site power.31 The NOPR stated the 

Commission’s understanding that NERC would register entities operating facilities not 

currently identified in the Regional Entities’ definition of bulk electric system that are 

needed for Bulk-Power System reliability, through NERC's authority to register an owner 

or operator of an otherwise exempt facility that is needed for Bulk-Power System 

reliability, on a facility-by-facility basis.32 We note that it is in the best interest of the 

nuclear plant generator operator to have any such facility identified in the NPIRs. 

52. We find that NERC’s approach should mitigate the concerns of commenters who 

speculate that small entities may wish to cease providing services rather than become 

subject to other Reliability Standards applicable to the functional class in which they 

would be registered. In this manner, application of the Reliability Standard to smaller 

entities operating lower voltage facilities that were not previously registered is limited to 

 30 This approach for lower voltage facilities is consistent with our determination in 

prior proceedings that the ERO may register an entity that falls below the minimum 

registry criteria on a facility-by-facility basis. See Order No. 693-A at P 38. 

31 See NOPR at P 22 and 26. 

32 Id. P 26 (citing Order No. 693-A at P 38; NERC Statement of Compliance 

Registry, Revision 3.1 at 8). 
Docket No. RM08-3-000 - 28 - 

the facilities used to provide services to the nuclear plant generator operator. 

Commenters’ other concerns largely address smaller entities’ potential reluctance to 

continue providing service – that is, so long as these entities are users, owners or 

operators of the Bulk-Power System they may be registered by NERC and subject to the 

Reliability Standard. An entity that has failed to execute an interface agreement will be 

found in violation of the Reliability Standard. 

53. We believe that limited registration of smaller entities, in combination with 

NERC’s use of the registry process and tying enforceability to the receipt of a proposed 

NPIR (rather than execution of a formal agreement), should limit the majority of 

concerns raised by commenters on behalf of small entities. Entergy’s concern with 

obtaining reactive power is mitigated by the fact that the Commission’s policies 

recognize alternate sources for ancillary services — reactive power is a required ancillary 

service to be provided by transmission providers — and the Commission’s policies also 

provide for merchant ancillary service sales where appropriate. However, these issues 

are best resolved in appropriate registration proceedings. 

54. The Commission notes that in addition to smaller, previously unregistered entities, 

larger currently-registered entities may also provide service over lower voltage facilities 

that may be material to the reliability of the Bulk-Power System. These entities’ lowervoltage facilities highlight a potential gap in applicability, because it could be argued that 

those facilities are not currently subject to the Reliability Standards since they may fall 

outside a Regional Entity’s definition of the bulk electric system. This potential gap is 

illustrated where a larger entity essentially provides a transmission service, but the 
Docket No. RM08-3-000 - 29 - 

applicability of NUC-001-1 and other Reliability Standards is uncertain, because service 

is provided over lower voltage facilities. We direct the ERO to review the impact on the 

Bulk-Power System for registration purposes of any entity providing service related to 

NPIRs over a lower-voltage facility similar to other facilities used to provide service, 

regardless of whether such service is provided by a currently-registered entity or a 

previously unregistered entity.33 

c. Critical Facilities

i. NOPR

55. In the NOPR, the Commission asked whether NERC would, in registering entities 

not otherwise registered, consider lower voltage facilities needed to serve NPIRs to be 

critical facilities. 

ii. Comments

56. NERC responded that it does not currently have an approved NERC Glossary 

definition for “critical facility” per Order No. 693’s directive.34 Consequently NERC 

states it will refrain from using the term in its response and until such time as the 

 33 The Commission notes, however, that the NUC-001-1 drafting team has 

described such cases of distribution level supply as “the exception, not the rule.” See

NERC Nuclear Reliability Standard drafting team, Consideration of Comments on 2nd 

Draft of Nuclear Off-site Power Supply Standard, at 54 (Feb. 7, 2007), filed in 

November 19, 2007 Petition, Exhibit B, Record of Development of Proposed Reliability 

Standard. 

34 Section III.d.2 of the NERC compliance registry states that the functions 

transmission owner and transmission operator shall include an entity “that owns/operates 

a transmission element below 100 kV associated with a facility that is included on a 

critical facilities list that is defined by the Regional Entity.” 
Docket No. RM08-3-000 - 30 - 

definition is developed and approved. However, NERC notes that a nuclear power plant 

would be unable to operate without transmission services from lower voltage facilities 

supplying off-site power, and the absence of such services would result in the real and 

reactive output of the plant being unavailable to the system. NERC states that the 

determination of whether a plant is material to the reliability of the Bulk-Power System is 

determined at the Regional Entity level, but notes that nuclear power plants typically 

provide both real and reactive power to the transmission grid. 

57. SCE&G states that it finds the Commission’s reference in the NOPR to “critical 

facilities” to be troubling, since NUC-001-1 should not affect the characterization of a 

facility as critical and such determination should be made by NERC. According to 

SCE&G, the existing NERC definition of “critical asset,” combined with the 

methodology in Reliability Standard CIP-002-1 is the correct method to determine if a 

facility is “critical” to the bulk electric system. SCE&G also maintains that NUC-001-1 

does not affect the characterization of a critical facility, which is determined instead by 

the NERC definition of critical asset and the methodology provided in CIP-002-1. 

 iii. Commission Determination

58. The Commission notes that the term “critical facility” under Order No. 693 is a 

facility not otherwise included in a Regional Entity’s definition of the bulk electric 

system but that has been identified by the Regional Entity as being critical to the system 

reliability.35 This is different from the definition of “critical asset” under CIP-002-1. The 

 35 Order No. 693 at P 77. 
Docket No. RM08-3-000 - 31 - 

Commission accepts NERC’s explanation of whether it would consider lower voltage 

facilities needed to serve NPIRs to be critical facilities when it registers new entities and 

notes that the definition of the term “critical facility” will be resolved in a future 

proceeding. 

d. Timing of NUC-001-1 Enforceability to Transmission 

 Entities

 i. NOPR

59. In the NOPR, the Commission sought comment on its understanding that NUC001-1 would become applicable to, and enforceable against, a transmission entity only 

when the transmission entity executed an interface agreement. In other words, the 

provider of NPIR-related service would become a transmission entity, as that term is 

defined by NUC-001-1, subject to NUC-001-1 and other Reliability Standards, upon 

execution of the interface agreement. 

 ii. Comments

60. In response to the Commission’s question on timing, NERC clarified that the 

interface agreement with a nuclear plant generator operator is not the mechanism that 

determines whether an entity is a transmission entity subject to NUC-001-1. Instead, a 

nuclear plant generator operator initiates the identification by proposing an NPIR to an 

applicable transmission entity, and, at this point, the identified transmission entity is 
Docket No. RM08-3-000 - 32 - 

placed on the Compliance Registry and becomes subject to the requirements of NUC001-1, not when the agreement required in Requirement R2 is established.36 

61. Several commenters support approaches similar to the NERC position.37 These 

commenters generally agree that NUC-001-1 applies to a transmission entity once it has 

been notified of an NPIR by the nuclear plant generator operator. EEI, for instance, 

states its understanding that the NUC-001-1 drafting team and NERC staff intended that a 

nuclear plant generator operator would identify the transmission entities for each nuclear 

power plant under NUC-001-1, whether or not they had already entered into an 

agreement. NEI recommends that a potential transmission entity should be deemed a 

transmission entity subject to the requirements of NUC-001-1 once it becomes registered 

as a transmission entity under NUC-001-1 and receives proposed NPIRs from the nuclear 

plant generator operator pursuant to Requirement R1. NEI states that transmission entity 

status should continue unless and until NERC determines otherwise, based on a full and 

fair analysis of the facts and evidence presented by the affected parties.38 

62. EEI states that, for a newly identified entity that is not on the Compliance 

Registry, the Regional Entities should examine whether an entity is properly classified as 

a transmission entity before registering the entity and thus requiring it to comply with the 

Reliability Standard. Entergy concurs that the NERC registration process, rather than the 

 36 NERC comments at 11. 

37 See EEI, Exelon, Detroit Edison, and NEI comments. 

38 See also Detroit Edison comments. 
Docket No. RM08-3-000 - 33 - 

execution of an interface agreement, determines whether an entity is subject to 

NUC-001-1. 

63. The commenters supporting the NERC clarification generally state that holding 

that NUC-001-1 is only applicable to a transmission entity after it executes an interface 

agreement would be inequitable because, in the event of disagreement, the nuclear plant 

generator operator could be held in violation, while the transmission owner would not.39 

NEI states that the need to prompt all potential transmission entities to conform to NUC001-1 is particularly important where potential transmission entities have no corporate 

affiliation with the nuclear plant generator operator, because such an entity may wish to 

avoid executing an interface agreement to avoid exposure to NUC-001-1. 

64. EEI notes that, in some cases, the failure to agree may be the result of good-faith 

differences between the parties such that sanctions should not be imposed, except as a 

last resort. NEI also suggests that no enforcement action, other than arbitration through a 

Regional Entity, should be taken in the absence of agreement, but asks the Commission 

to clarify that while the Reliability Standard may not be enforceable by NERC or the 

Commission without an agreement, the contractual service commitments may be 

enforceable by other means. Constellation requests clarification that only Requirement 

R1 is enforceable against the nuclear plant generator operator until the NPIR agreement 

is executed, because the other requirements involve implementation of an agreement, 

which the nuclear plant generator operator cannot do unilaterally. 

 39 See EEI, Exelon, and NEI comments; see also Constellation comments at 8. 
Docket No. RM08-3-000 - 34 - 

65. NEI emphasizes that licensing requirements should already be known to affected 

transmission entities and argues that existing procedures must remain in effect both prior 

to and after the effective date of the agreement under NUC-001-1. According to NEI, 

registration based on notification by the nuclear plant generator operator is appropriate 

because nuclear plant generator operators are in the best position to interpret nuclear 

plant licensing requirements and system needs affecting operations. According to NEI, 

NUC-001-1 should be enforceable against the transmission service providers whose 

commitments to provide services formed part of the basis for the original plant license 

regardless of whether an interface agreement has been executed. NEI suggests that 

Requirement R3 should be applicable regardless of the parties’ compliance efforts to 

date. 

66. According to NEI, the NRC requires each nuclear license applicant to perform 

stability studies for the transmission grid that delivers offsite power to the nuclear power 

plant and demonstrate that the loss of the largest operating unit on the grid would not 

result in loss of grid stability or affect the delivery of offsite power to the nuclear power 

plant.40 NEI also notes that the types of studies performed and the conclusions are 

documented in the safety analysis report for each nuclear power plant. NEI suggests that 

nuclear plant licensees and transmission service providers are already obliged to provide 

 40 NEI comments at 4 (citing Chapter 8 of the NRC Standard Review Plan 

(NUREG 0800)). 
Docket No. RM08-3-000 - 35 - 

assurances with respect to the capability and stability of offsite power sources for the 

nuclear plant. 

67. In contrast, ConEdison, SCE&G, and ISO/RTO Council argue that NUC-001-1 

should not be enforceable against transmission entities until an interface agreement is 

executed. According to ISO/RTO Council, representatives of NERC’s functional classes 

become transmission entities by agreeing to meet an NPIR through an interface 

agreement. SCE&G questions whether it is appropriate to define as a transmission entity 

any entity that enters into an interface agreement with a nuclear plant generator operator. 

It asks the Commission to clarify the standards which will apply to every entity entering 

into an interface agreement. 

iii. Commission Determination

68. Based on the ERO’s and others’ comments, the Commission does not adopt the 

understanding put forth in the NOPR. NERC and others have made clear that NUC-001-

1 was intended to apply to transmission entities following receipt of notification from the 

nuclear plant generator operator, rather than after execution of the interface agreement. 

The applicability of NUC-001-1 is determined by the function performed by the entity — 

that is, an entity that provides services relating to a nuclear plant generator operator’s 

nuclear plant licensing requirements is subject to NUC-001-1 on the latter of the effective 

date of the Reliability Standard or when a proposed NPIR is provided by the nuclear 

plant generator operator. This is consistent with other Reliability Standards where an 

entity is subject to a Reliability Standard based on the factual determination of whether it 
Docket No. RM08-3-000 - 36 - 

operates certain facilities or provides a certain service, not based on the consent of the 

entity. 

69. We believe that this interpretation resolves the concerns of commenters who 

predict that entities supplying services to enable nuclear plant generator operators to meet 

nuclear plant licensing requirements would balk at executing an interface agreement if 

they become subject to NUC-001-1. This should not occur since transmission entities 

will be identified as providing services relating to NPIRs by a nuclear plant generator 

operator and will become subject to NUC-001-1 when they receive notice, not when they 

finalize an agreement. 

e. Applicability in Integrated Systems

i. NOPR

70. In the NOPR, the Commission voiced its concerns regarding the implementation 

of NUC-001-1 in a situation where a single entity is both the nuclear plant generator 

operator and the transmission entity, such as a vertically-integrated utility. We sought 

comment on whether an agreement or arrangement would be required in such a case and, 

if so, what type of arrangement was required to comply with the Reliability Standard. 

iii. Comments

71. In response, NERC states that NUC-001-1 may accommodate various industry 

structures and situations, including an integrated utility structure. According to NERC, 

NUC-001-1 requires appropriate agreements or arrangements to ensure that mutually 

agreed upon NPIRs are established. Because the necessary agreement or arrangement 

can include “mutually agreed upon procedures or protocols” per Footnote 1 of 
Docket No. RM08-3-000 - 37 - 

Requirement R2, they need not necessarily be in the form of a formally executed 

agreement between officers of separate companies. NERC notes that compliance 

measures M3 through M8 ensure that auditable documentation of such arrangements 

exist. NERC concludes that these requirements may be met by a single entity. 

72. Most commenters addressing the issue concur that a formal signed contract 

between the departments of an integrated utility is not necessary.41 However, Detroit 

Edison and Midwest ISO state that department or business unit representatives should 

execute an interface agreement or other evidence of participation to comply with NUC001-1. Thus, these commenters propose that compliance could be demonstrated through 

agreements featuring varying degrees of formality. NEI argues instead that an integrated 

entity could set forth in writing the procedures to be followed by each unit as consistent 

with Requirement R2 and such internal documentation would be provided in an audit. 

SCE&G states that compliance may be achieved through internal coordination between 

the generation and transmission components of an integrated utility and, where 

appropriate, a formal agreement between an integrated utility and outside entities. 

iii. Commission Determination 

73. The Commission accepts NERC’s clarification that NUC-001-1 applies to nuclear 

plant generator operators and transmission entities where both parties are in a single 

integrated system. NERC clarified that a formal agreement is not necessary to have an 

agreement, procedures, or protocols in place that will comply with Requirement R2. 

 41 See EEI, Entergy, Southern, NEI, and SCE&G comments. 
Docket No. RM08-3-000 - 38 - 

Based on this clarification and industry comments, we accept NERC’s conclusion that the 

Requirements of NUC-001-1 can be met by a single entity that is both the nuclear plant 

generator operator and the transmission entity. The Commission directs the ERO, in 

enforcing NUC-001-1, to require that an integrated entity provides documentation of its 

arrangements, including appropriate procedures and protocols, ensuring that its business 

units perform the functions under NUC-001-1 that would otherwise be met by separate 

entities. This will ensure that an integrated entity’s compliance with NUC-001-1 is 

auditable in a manner comparable to other entities that are subject to the Reliability 

Standard. 

3. Dispute Resolution 

a. NOPR Proposal

74. In the NOPR, the Commission sought input on circumstances involving an off-site 

power supplier or other transmission entity that disagrees with a nuclear plant generator 

operator that it needs to execute an interface agreement. The Commission asked how 

NERC should resolve the impasse and whether NERC should propose to register the 

entity (if it was not already registered) without an executed interface agreement. 

b. Comments

75. NERC states that, if a transmission entity and nuclear plant generator operator fail 

to agree to an NPIR, it may require mediation or arbitration of the dispute as part of a 

mitigation or remedial action strategy. If a nuclear plant generator operator and a 

transmission entity fail to reach agreement, NERC clarifies that it proposes to find each 

entity in non-compliance with Requirement R2. According to NERC, the nuclear plant 
Docket No. RM08-3-000 - 39 - 

generator operator and transmission entity would be subject to penalties, sanctions, 

mitigation, and remedial actions until agreement is reached. NERC notes that its 

March 4, 2008 submission of violation severity levels identified the failure to reach an 

agreement under Requirement R2 as a Severe violation severity level. 

76. Several commenters support use of a dispute resolution process before NERC or a 

Regional Entity in the case of disagreement over NPIRs.42 Dominion, ISO/RTO Council 

and Midwest ISO call for a formal dispute resolution process to resolve issues if parties 

cannot reach agreement. Constellation expresses concern that the nuclear plant generator 

operator would have the primary burden of ensuring the parties enter into NPIR 

agreements, based on the understanding reflected in the NOPR, and states that an early 

intervention process is essential for NERC and the Commission to provide assistance to 

parties facing difficulty reaching agreement. Constellation also asks that the Commission 

require NERC to establish and file within 60 days a proposed dispute resolution process 

to assist parties in reaching agreement. ISO/RTO Council requests the Commission to 

define a clear process with definitive criteria for resolving disputes between nuclear plant 

generator operators and transmission entities over the scope of the NPIRs. 

77. Midwest ISO and National Grid express additional concerns over disagreement on 

individual NPIRs. Midwest ISO states that it is unclear what will occur if a named 

transmission entity disagrees that it has the role identified by the nuclear plant generator 

operator or if there is disagreement regarding the necessity for, or impacts of, the 

 42 See ISO/RTO Council, Ontario Power, Midwest ISO, and NEI comments. 
Docket No. RM08-3-000 - 40 - 

proposed NPIRs. Midwest ISO anticipates disputes among the various transmission 

entities and nuclear plant generator operators about which tariff, service agreement, or 

operating agreement provisions may be relied on to meet NUC-001-1 requirements. 

78. Midwest ISO cites differing views as to the exact definition of NPIRs among 

nuclear plant generator operators and other stakeholders and therefore requests that the 

definition of NPIRs be clarified. National Grid states that disagreement should not 

forestall implementation of non-controversial NPIRs, but that it is nevertheless unclear 

whether NPIRs proposed by one side or the other shall have any force or effect while 

subject to a dispute resolution procedure. 

79. NEI proposes that, if the parties were to fail to reach agreement on an interface 

agreement within 30 days, the Regional Entity could provide a dispute resolution 

mechanism. According to NEI, NERC could provide for subsequent appeals. However, 

NEI states that failure to enter into an interface agreement should not be considered a 

violation or failure to comply, as long as the parties are negotiating in good faith and 

following NERC’s proposed dispute resolution and appeal processes. 

c. Commission Determination

80. The Commission accepts the ERO’s explanation of its registration and compliance 

options when parties fail to come to an agreement. Should parties fail to come to an 

agreement and thus find themselves in violation of the requirement that they have such an 

agreement in place, NERC states that it may require mediation or arbitration as a 

remedial action. We agree that ordering such dispute resolution processes may be an 

appropriate response in some instances in which there is no immediate risk to grid 
Docket No. RM08-3-000 - 41 - 

reliability and support NERC requiring the use of arbitration or mediation on a voluntary 

basis where appropriate.43 

81. National Grid’s concerns are speculative. However, if the parties cannot agree on 

proposed NPIRs, then NERC may require mediation or arbitration as a remedial action. 

We do not see the need at this time for NERC to develop formal arbitration procedures to 

govern all dispute resolution proceedings. The ERO has the discretion to adopt such 

procedures as are appropriate to the circumstances, in the event that the parties do not 

themselves propose acceptable procedures.44 

82. We anticipate that Midwest ISO’s concerns regarding NPIR negotiations should 

be resolved by the parties themselves. Given that the parties have already been able to 

agree to the services needed to meet NRC licensing requirements, the same parties should 

be able to successfully identify the services provided, confirm that they address NRC 

criteria for off-site power and system limits, and document such services in an auditable 

format consistent with the NUC-001-1 Requirements. 

 43 Where there is an immediate reliability risk, we direct the ERO to take 

appropriate action to address the risk. 

44 Should NERC require the parties to engage in dispute resolution procedures as a 

remedial action or in lieu of, or along with, other sanctions upon a finding that the parties 

are in violation of the Reliability Standard, NERC must notify the Commission as it 

would for any imposition of a remedy to a violation. See NERC Rules of Procedure, 

section 408.1. 
Docket No. RM08-3-000 - 42 - 

C. Form of Agreements

1. Comments 

83. Several commenters request clarification that existing arrangements may be relied 

on to meet NUC-001-1 requirements to have an interface agreement in place to address 

NPIRs.45 These commenters suggest that nuclear plant generator operators and 

transmission entities may rely on existing interface agreements and thus that NUC-001-1 

does not require execution of a new agreement, and may incorporate by reference matters 

covered in other agreements or tariff provisions. 

84. The ISO/RTO Council, in particular, asks the Commission to clarify that any 

entity designated as a transmission entity will be allowed to rely on existing tariffs and 

contracts to satisfy the mandates of Requirements R2 and R9 and will not be required to 

execute entirely new agreements that merely duplicate tariff and contractual 

arrangements that already are in place, allowing nuclear power plants to maintain 

compliance with existing NRC license criteria. ISO/RTO Council states: 

To the extent that an RTO or ISO — or indeed any other transmission 

operator— provides these services to generators, the services generally are 

reflected in existing tariffs and agreements between specific transmission 

operators and generators. For example, in New York, generators and 

[NYISO] execute a service agreement under the NYISO’s Market 

Administration and Control Area Services Tariff (“Services Tariff”), 

which governs, among other things, the NYISO’s “provision of Control 

Area Services ... including services related to ensuring the reliable 

operation of the NYS Power System.” The service agreement requires the 

NYISO and its counterparties, including generators, to follow NYISO 

tariffs and procedures. The Services Tariff requires the NYISO to 

 45 See Constellation, Dominion, and ISO/RTO Council comments. 
Docket No. RM08-3-000 - 43 - 

“develop, and modify as appropriate, procedures for the ... reliable 

operation of the NYCA in accordance with the terms and conditions of the 

Tariff.” These procedures are set forth in detail in the NYISO manuals, 

and already cover the core elements of the agreements mandated pursuant 

to R9 of NUC-001-1. The technical requirements outlined in R9.2, 

including identification of system parameters and configurations and 

applicable limits, largely are reflected in the NYISO’s Transmission and 

Dispatch Manual. The requirements outlined in R9.3 with respect to 

operations and maintenance coordination largely are reflected in the 

NYISO’s Outage Scheduling manual. These manuals define the NYISO’s 

obligations to specific generators, including nuclear generators, pursuant 

to the terms of the Services Tariff.46 

85. According to ISO/RTO Council, new service agreements between transmission 

operators and nuclear plant generator operators under NUC-001-1 should also be 

incorporated into the applicable transmission operator tariffs or manuals. International 

Transmission requests clarification on whether parties will be expected already to have a 

signed agreement which meets the requirements of NUC-001-1 in place on the date on 

which the Reliability Standard becomes effective. Constellation requests confirmation 

that multi-party agreements will be accommodated. 

86. EEI also requests that the Commission clarify that nuclear plant generator 

operators and transmission entities, affiliated and unaffiliated, do not need to enter into 

new agreements if an existing agreement between the parties is sufficient for compliance 

with NUC-001-1. National Grid states that NERC should provide additional guidance on 

what responsible entities must do to comply with the Reliability Standard within fifteen 

 46 ISO/RTO Council comments at 4-5. 
Docket No. RM08-3-000 - 44 - 

months of regulatory approval. National Grid characterizes NERC’s position as 

proposing that parties establish an “overall coordination platform” to meet the NPIRs. 

2. Commission Determination 

87. Based on NERC’s statement that parties may rely on less formal procedures and 

protocols, the Commission finds that NUC-001-1 does not dictate any particular format 

for the interface agreement. Nuclear plant generator operators and transmission entities 

may rely on pre-existing arrangements so long as the parties can document the fact that 

they have agreed that the pre-existing arrangements address all of the NPIRs, cover all 

required facilities and otherwise fulfill the requirements of NUC-001-1.47 This includes 

multi-party agreements. 

88. In response to ISO/RTO Council’s request, we clarify that, as with any 

transmission entity, a regional service provider may rely on existing tariff provisions. 

However, the Commission understands that, in a region served by a regional service 

provider such as a regional transmission organization (RTO) or independent system 

operator (ISO), the regional authority will be required to meet NPIRs that require service 

over its system. Within the geographical boundaries of their service territory, potential 

transmission entities may also provide service over lower voltage facilities that are not 

covered by the RTO or ISO tariff. In such a case, we direct the ERO to assess whether 

 47 Nuclear plant generator operators and transmission entities that choose to rely 

on generally-applicable tariffs should make provision to ensure that the tariff terms and 

conditions continue to meet the parties’ needs should the tariff or nuclear licensing 

requirements change, and document such an arrangement. 
Docket No. RM08-3-000 - 45 - 

the entity providing service over the lower voltage facilities is also subject to NUC-001-

1, as discussed in section II(B)(2)(b), above, concerning Transmission Entities and 

Agreements on NPIRs. If such an entity is providing service that is not covered by the 

tariff, the nuclear plant generator operator would need to take steps to identify these 

entities as providing services related to an NPIR and thereby ensure compliance with 

NUC-001-1 on these lower-voltage facilities pursuant to our discussion in section 

II(B)(2)(b) above. 

D. Enforcement and Conflicts with Other Regulations

1. Comments 

89. Comments regarding the enforcement of NUC-001-1 addressed both potential 

conflicts with the Commission’s standards of conduct rules, and potential conflicts with 

NRC requirements. 

90. EEI requests clarification that the communications required to comply with NUC001-1 are permitted under the Commission’s standards of conduct rules. The 

Commission previously clarified that transmission providers may communicate with 

affiliated nuclear power plants regarding certain matters related to the safety and 

reliability of the transmission system and of the nuclear power plants in order to comply 

with requirements of the NRC. EEI asks the Commission to clarify that their provisions 

apply equally to unaffiliated entities that must comply with NUC-001-1 and that a 

transmission entity is not subject to enforcement under the standards of conduct, 
Docket No. RM08-3-000 - 46 - 

applicable tariff or other authority for providing information in compliance with NUC001-1.48 

91. NEI states that while the NUC-001-1 requirements are structured to help identify 

potential conflicts and coordinate their resolution through changes to the NPIRs, 

unforeseen situations could arise that are not adequately covered in the NPIRs and 

interface agreements under NUC-001-1. NEI argues that penalties should not be imposed 

if a nuclear plant generator operator fails to comply with a NUC-001-1 interface 

agreement or other Reliability Standard because the nuclear plant generator operator 

complied instead with NRC requirements. NEI recommends that NUC-001-1 be revised 

to recognize the primary obligation of nuclear plant generator operators to protect public 

health and safety through compliance with NRC regulations and the nuclear plant license, 

and proposes revised language.49 

92. Similarly, Duke states that while it does not object to NUC-001-1, the 

Commission should clearly define the boundary between NRC nuclear safety 

requirements and Commission grid reliability requirements. According to Duke, because 

 48 EEI comments at 9. 

49 NEI proposes that an additional paragraph be added to NUC-001-1 to address 

this potential conflict between the Commission and the NRC: “FERC recognizes the 

necessity of nuclear plant generator operators to protect the public health and safety 

through compliance with NRC regulations and license obligations. A nuclear power 

generator operator’s compliance with NPIRs is excused if necessary to comply with NRC 

regulations or license obligations. Notwithstanding any other provisions of FERC rules 

or regulations, any penalty that might be imposed arising from compliance by a nuclear 

plant generator operator arising from compliance with NRC regulations or license 

obligations shall not be imposed.” NEI comments at 11. 
Docket No. RM08-3-000 - 47 - 

NRC licensing criteria address health and safety issues, those criteria should take 

precedence and a nuclear plant generator operator should not be penalized for noncompliance with a conflicting interface agreement or other Reliability Standard 

provision. Duke cites unforeseen circumstances as well as specific examples where NRC 

safety criteria may take precedence.50 Also, Constellation requests assurance that, when 

there are overlapping requirements, registered entities will be subject to a single penalty 

only. 

2. Commission Determination 

93. In response to EEI’s request for clarification that communications required to 

comply with this Reliability Standard are permitted under the Commission’s standards of 

conduct regulations, the Commission notes that it is addressing this subject through its 

rulemaking on standards of conduct in Docket No. RM07-1-000.51 A number of 

commenters in that docket sought clarification as to whether communications involving 

the Reliability Standards are exempt from standards of conduct prohibitions. The Final 

 50 Duke proposed the following examples: (a) the inability of a nuclear generator 

to exceed its license power limits to respond to underfrequency events, (b) specific 

license requirements for support from the grid, such as priority off site power after a 

blackout, and (c) license-required separation in response to degraded grid voltage or 

frequency conditions. 

51 Standards of Conduct for Transmission Providers, Notice of Proposed 

Rulemaking, Docket No. RM07-1-000, 73 FR 16228 (Mar. 27, 2008), FERC Stats. and 

Regs. ¶ 32,630 (2008). Revisions to the Standards of Conduct for Transmission 

Providers, Final Rule, Docket No. RM07-1-000, 125 FERC ¶ 61,062 (2008). 
Docket No. RM08-3-000 - 48 - 

Rule to adopt revised standards of conduct, issued by the Commission, addresses the 

subject of exemptions. 

94. Comments suggesting that mitigating circumstances may warrant waiver of 

penalties are beyond the scope of this proceeding and should be addressed in an 

appropriate enforcement proceeding. The Commission understands that the NPIRs are 

specifically identified to enable a nuclear plant generator operator to meet its NRC 

licensing requirements at all times. As such, there should be no question of priority of 

the NRC criteria and NUC-001-1 Requirements. As to Duke’s examples, all of the 

existing Reliability Standards have a sound engineering basis and do not require 

exceeding defined power limits, identify priorities, and account for known interactions 

such as separation of any generating facility due to degraded grid voltage or frequency. 

E. Scope of Agreements 

1. NOPR 

95. The NOPR noted that the Requirements of NUC-001-1 specify various contractual 

terms, including certain studies and procedures, to be addressed through interface 

agreements but do not describe specific substantive terms to be included in the 

agreements. In response, the NOPR expressed concern whether NUC-001-1 established 

an appropriate scope for the interface agreements. In its November 19, 2007 Petition, 

NERC stated that the NUC-001-1 drafting team adopted a consensus approach to 

coordinating nuclear power plant and transmission grid operations.52 According to 

 52 November 19, 2007 Petition at 26. 
Docket No. RM08-3-000 - 49 - 

NERC, the consensus approach provides a platform for coordination at the interface that 

allows both nuclear plant generator operators and transmission entities to respect their 

main system drivers. Therefore, according to NERC, the NUC-001-1 drafting team 

adopted the interface agreement as a model for coordination and placed the obligation on 

nuclear plant generator operators and transmission entities to coordinate operational 

requirements by consensus. 

96. In recognition of the successful working model of existing interface agreements, 

the NOPR proposed to accept NUC-001-1 and find appropriate the proposed level of 

detail defining substantive provisions to be included in interface agreements. 

2. Commission Determination

97. The Commission generally finds the scope of the Nuclear Reliability Standard 

requirements adequate to address the development and implementation of interface 

agreements between nuclear plant generator operators and transmission entities, subject 

to the discussion of particular issues below. 

a. Commission Questions

 i. Interim Revisions

 (1) NOPR

98. The NOPR proposed to approve the provisions for updating interface agreements, 

but requested comment on whether NUC-001-1 adequately provides for revisions to 

reflect interim changes. 
Docket No. RM08-3-000 - 50 - 

 (2) Comments 

99. In response to the NOPR’s inquiry whether NUC-001-1 includes sufficient 

provision for updates outside of the three-year review process, NERC states that it 

believes that the combination of Requirements R7, R8, R9.3.4, R9.4, and R9.4.1 

adequately provides for the updating of NPIRs outside the three-year review window as 

circumstances warrant. Entergy concurs, asserting that NUC-001 adequately provides for 

interim updates to interface agreements. Southern states that it is feasible for interface 

agreements “to provide for negotiation and amendments to address emerging 

transmission and generating system limits and revised nuclear plant licensing 

requirements prior to, or contemporaneously with, implementing operations solutions”53

to address permanent, but not temporary, changes. Southern indicates that amendment of 

the agreement would not be practical in temporary situations because an “emerging” 

system limit will be resolved within a relatively short period of time. 

 (3) Commission Determination

100. Based on the comments received, the Commission finds that NUC-001-1 makes 

adequate provision for interim updates. While not all system changes can be anticipated, 

the Commission expects that significant changes to the parties’ operating relationship 

would be formalized and documented in an auditable format as interim changes in an 

addendum or revisions to the agreement, as appropriate. 

 53 Southern comments at 8-9. 
Docket No. RM08-3-000 - 51 - 

b. Amendments to Operational Procedures

 i. NOPR

101. The NOPR noted the Commission’s preference that new operational procedures be 

reflected in the interface agreements prior to being implemented upon nuclear power 

plant start-up or reauthorization, or shortly thereafter. The Commission requested 

comment whether interface agreements could provide for negotiation and amendments to 

address emerging transmission and generating system limits and revised nuclear plant 

licensing requirements prior to, or contemporaneously with, implementing operations 

solutions. 

 ii. Comments

102. NEI states that NRC regulations include extensive requirements and processes for 

changes to nuclear power plants and their operations. Thus, NEI opposes a requirement 

to revise the interface agreement prior to making changes to a nuclear power plant or its 

operations. NEI suggests that implementation details to address changes in the grid 

configuration would be addressed in procedures, and should not require revisions to an 

interface agreement, while Requirements R7 and R8 require parties to review design 

changes to determine their impact on NPIRs. 

103. Entergy responded that NPIRs are amended on a flexible time horizon under each 

individual interface agreement, and that this approach provides both entities with the 

flexibility to respond to emerging issues. 
Docket No. RM08-3-000 - 52 - 

 iii. Commission Determination

104. Based on the comments received, the Commission finds that NUC-001-1 makes 

adequate provision for updates to address changing transmission and generator limits or 

revised nuclear plant licensing requirements before operating solutions are implemented. 

 3. Other Scope Related Issues

 a. Requirement R9.3.5

105. Commenters raise concerns regarding Requirement R9.3.5, which were not 

anticipated in the NOPR. According to NEI, Requirement R9.3.5 mixes two separate 

events incorporated in nuclear power plant design and license conditions: (i) coping 

times for station blackouts and (ii) restoration of off-site power.54 NEI explains that 

station blackouts include a loss of off-site power and select emergency alternating current 

(AC) power sources (generally on-site). In the case of such an event, NEI explains that 

the nuclear plant generator operator has responsibility to restore the emergency AC 

power sources within the demonstrated coping time. NEI states, however, that a 

transmission entity should assign off-site power restoration priority independent of 

coping time and that NERC should clarify Requirement R9.3.5 references to station 

blackout and off-site power restoration priority. Specifically, NEI recommends 

 54 Requirement R9 establishes a minimum set of elements to be addressed in 

interface agreements. Requirement R9.3.5 states that the operations and maintenance 

coordination elements should include “Provision to consider nuclear plant coping times 

required by the nuclear plant licensing requirements and their relation to the coordination 

of grid and nuclear plant restoration following a nuclear plant loss of off-site power.” 

See also TVA comments, Enclosure at 1. 
Docket No. RM08-3-000 - 53 - 

appending the requirement with the phrase “to ensure restoration of Off-site Power is 

afforded priority reflecting that reliance on emergency AC power sources is not 

preferred.”55

106. Southern states that the phrase “coping times” in Requirement R9.3.5 is 

ambiguous because the term has various meanings in the nuclear context and does not 

necessarily equate to a specific time period. Southern proposes the following alternative 

language for NERC consideration: “Provision to consider the [nuclear plant licensing 

requirements] related to the coordination of grid and nuclear plant restoration following a 

nuclear plant loss of Off-site Power.”56

i. Commission Determination

107. Based on the industry comments received, it appears that the references in 

Requirement R9.3.5 to coping times for station blackouts and restoration of off-site 

power are ambiguous — insofar as commenters suggest that the relationship between the 

two issues is not clear, and thus, is not adequately addressed as presented in Requirement 

R9.3.5. Therefore, we direct the ERO to modify Requirement 9.3.5 to clarify references 

to coping times and off-site power restoration to address the concerns raised in the 

comments through its Reliability Standards development process. This approach permits 

a full vetting of new suggestions raised by commenters in NOPR comments and 

encourages interested entities to participate in the ERO Reliability Standards 

 55 NEI comments at 11-12. 

56 Southern comments at 8. 
Docket No. RM08-3-000 - 54 - 

development process rather than wait to express their views until a proposed new or 

modified Reliability Standard is filed with the Commission.57 We agree with 

commenters that the provision is inartfully drafted and needs to be clarified; however, 

there does not appear to be any reason that parties to an interface agreement should not 

coordinate concerning both issues as an interim measure. The Commission directs 

NERC to develop a modification to Requirement R9.3.5, as discussed above. In addition, 

to ensure the matter is addressed expeditiously, we direct NERC to submit a timeline for 

developing and filing the modification as a compliance filing to be made within 30 days 

of the date of this Final Rule. 

 b. Personnel Training

108. International Transmission requests clarification whether Requirement R9.4.5 

regarding personnel training applies to the transmission entity, the nuclear plant generator 

operator or both, and whether this requirement can be satisfied by existing training 

programs related to SOLs or IROLs. Midwest ISO requests that the Commission require 

the ERO to modify Requirement R9.3.6 to clearly provide that it only requires each entity 

to train its own operating personnel on the content of the applicable agreements, 

procedures and other documents related to NUC-001-1. 

i. Commission Determination

109. The Commission clarifies that employees of nuclear plant generator operators and 

transmission entities should receive the training necessary to execute the terms of the 

 57 Order No. 693 at P 188. 
Docket No. RM08-3-000 - 55 - 

interface agreement, and such training should be specified in the interface agreement 

between the parties. In addition, employees operating facilities used to provide services 

to meet NPIRs should be properly trained to Reliability Standard training requirements 

that apply to those facilities or the function served by the employees. 

c. Planning

110. Midwest ISO proposes that the type of planning mandated by Requirement R9.2.3 

should be more specifically defined. According to Midwest ISO, adherence to NUC-001-

1 requires near real-time planning to support the NPIRs. Midwest ISO notes that other 

NERC Reliability Standards require mid-term and long-term planning. 

 i. Commission Determination

111. The Commission declines to address Midwest ISO’s request to clarify the 

planning required under Requirement R9.2.3. Because NPIRs are based on NRC 

licensing requirements, the scope of planning mandated by Requirement R9.2.3 will 

largely be determined by the nuclear plant licensing requirements. As such, the 

determination is beyond the scope of this proceeding and is best resolved in the interface 

agreement development process between parties who are familiar with the facilities 

involved. In general, the Commission believes that the NPIRs needed to ensure the 

operation of nuclear power plants must be included in the planning process for all time 

frames as appropriate. 

d. Requests for Limits on Scope of Interface Agreements 

112. Several commenters request limits to the scope of nuclear plant licensing 

requirements and SOLs that may become the subject of NPIRs addressed in an interface 
Docket No. RM08-3-000 - 56 - 

agreement. CenterPoint Energy objects to Requirements R3 through R9 insofar as they 

do not limit the types information or actions that are to be requested and provided. 

Dominion states that NUC-001-1 should not duplicate requirements that are already 

stipulated in other Commission-approved Reliability Standards. 

113. Southern is concerned that the stated purpose of NUC-001-1, together with certain 

of its provisions, may impose operational requirements on a nuclear plant generator 

operator beyond those established in NRC licensing requirements.58 According to 

Southern, the development and implementation of interface arrangements and any 

supplemental procedures should be left to the discretion and judgment of transmission 

entities and nuclear plant generator operators, operating within their respective regulatory 

frameworks. Southern recommends that the Commission direct NERC to amend the 

proposed Nuclear Reliability Standard, as appropriate, to avoid conflicts with NRC 

licensing requirements, and clarify that nothing in NUC-001-1 or the NOPR is intended 

to create any such conflict. 

114. ConEdison also notes that transmission entities that provide services under the 

agreement should receive fair compensation. According to ConEdison, the requirements 

contained in the NOPR would require the various transmission entities provide additional 

services or a heightened level of services already provided to the nuclear plant generator 

operator. 

 58 See also National Grid comments. 
Docket No. RM08-3-000 - 57 - 

i. Commission Determination 

115. The Commission declines to direct the clarification proposed in the comments. 

We believe that these concerns expressed by the commenters are unfounded. Because 

NPIRs are based on NRC licensing requirements, the scope of procedures to be 

developed will largely be limited to procedures needed to address the nuclear plant 

licensing requirements. In addition, by agreement of the nuclear plant generator operator 

and transmission entities, parties will develop protocols and may make system 

improvements to address system limits that present preventable challenges to off-site 

power supply caused by grid disturbances. Thus, the basis for the NPIRs, and the terms 

of the interface agreements, is limited to what is needed to ensure reliable operation or 

safe shutdown of the nuclear power plant. Because the procedures embodied in NPIRs 

are developed by agreement of the parties, we do not share Southern’s concern that 

additional operating requirements could be imposed on a nuclear plant generator 

operator. 

116. As previously discussed, ConEdison's and others’ arguments that transmission 

entities should receive compensation if they provide services relating to NPIRs are 

beyond the scope of this proceeding. These matters are appropriately left to the parties to 

the interface agreements to resolve. 

F. Coordination

117. Requirements R7 and R8 require communication between nuclear plant generator 

operators and transmission entities regarding significant changes in design, configuration, 

operation, or limits of their facilities: 
Docket No. RM08-3-000 - 58 - 

Requirement R7: Per the Agreements developed in accordance with this 

standard, the Nuclear Plant Generator Operator shall inform the applicable 

Transmission Entities of actual or proposed changes to nuclear plant 

design, configuration, operations, limits, protection systems, or capabilities 

that may impact the ability of the electric system to meet the NPIRs. 

Requirement R8: Per the Agreements developed in accordance with this 

standard, the applicable Transmission Entities shall inform the Nuclear 

Plant Generator Operator of actual or proposed changes to electric system 

design, configuration, operations, limits, protection systems, or capabilities 

that may impact the ability of the electric system to meet the NPIRs. 

118. In addition, Requirement R6 obligates interface agreement parties to coordinate 

outages and maintenance activities; Requirement R9.3.6 requires coordination of physical 

and cyber-security protections; and Requirement R9.3.7 requires coordination of special 

protection systems and load shedding. Thus, these Requirements provide for 

communication between a nuclear plant generator operator and its individual 

transmission entities, as well as the reverse for communication from the transmission 

entities to the nuclear plant generator operator. 

1. Coordination Among Transmission Entities

a. NOPR Proposal

119. The NOPR expressed concern that NUC-001-1 Requirements do not explicitly 

provide for communication and coordination among the various transmission entities that 

is necessary to facilitate the provision of generation and transmission services to support 

the nuclear power plant operations. The NOPR stated the Commission’s understanding 

that, historically, control area operators provided the necessary coordination and 

communication with neighboring entities, including RTO-type grid operators and other 

interconnected utilities and load serving entities, when necessary. The NOPR stated the 
Docket No. RM08-3-000 - 59 - 

Commission’s expectation that the parties to nuclear plant interface agreements would 

continue to provide for coordination among transmission entities, pursuant to the 

Requirements of NUC-001-1, in particular the Requirement R9.3.1 obligation to provide 

for coordination of interface facilities in the interface agreement. Interface agreement 

parties may continue to designate former integrated control area operators when 

appropriate or may revise their approach, reflecting changes under restructuring to grid 

operations when necessary, consistent with coordination responsibilities provided for in 

existing Reliability Standards. Based on such an understanding, the NOPR proposed to 

accept the coordination provisions as requiring all appropriate coordination among 

transmission entities and requested comment. 

b. Comments

120. NEI states that NUC-001-1 includes adequate coordination provisions, in 

particular through Requirement R9.4, together with the other Reliability Standards. NEI 

notes that transmission service providers have historically provided coordination and 

NUC-001-1 will not impose new burdens. Detroit Edison agrees that transmission 

entities should coordinate as necessary to ensure full compliance with NUC-001-1. 

According to Entergy, the proposed Nuclear Reliability Standard, in conjunction with 

other Reliability Standards, ensures that all necessary parties are involved in the interface 

agreements. 

121. International Transmission notes that current practice under existing coordination 

agreements is to communicate when the transmission system is one event away from 

violating a SOL or IROL so that each party is advised of the possible effects on the other 
Docket No. RM08-3-000 - 60 - 

of responsive actions and the risks of a contingency. International Transmission states 

that clarification is needed on whether implementation of communication protocols 

established in the interface agreement will constitute compliance with NUC-001-1. 

International Transmission is concerned that the occurrence of a contingency would be 

treated as a violation of the NPIRs or NUC-001-1. 

122. Southern is concerned that the NOPR’s general description of certain coordination 

provisions59 may be interpreted as requiring a nuclear plant generator operator to actually 

coordinate responses on the transmission system. According to Southern, the nuclear 

plant generator operator does not typically operate the system and, therefore, it would not 

be appropriate to require the nuclear plant generator operator to be responsible for 

coordination of responses on the transmission system. Southern states that such an 

interpretation would be inappropriate because it would go beyond the purpose of NUC001-1 and the responsibilities of the respective parties. According to Southern, a 

transmission provider will respond to the issues listed because it actually operates the 

system. Therefore, the Commission should clarify that the standard does not require 

nuclear plant generator operators to coordinate responses on the transmission system. 

123. NEI similarly objects to the Requirements that require interface agreements to 

provide for coordination of operational and maintenance issues. According to NEI, 

coordinating responses goes beyond the purpose of NUC-001-1 and the responsibilities 

of the respective parties. NEI suggests that rather than coordinating responses to unusual 

 59 NOPR at P 14. 
Docket No. RM08-3-000 - 61 - 

circumstances, it is more accurate to state that an interface agreement must include 

elements to address the operations and maintenance coordination of unusual conditions. 

c. Commission Determination

124. The Commission confirms its understanding that coordination under the 

Reliability Standard includes coordination among transmission entities. No party 

objected to the Commission’s interpretation that the coordination required under 

Requirement R9.3.1 includes designating an entity to coordinate among various 

transmission entities providing unbundled services, and that such a role had been 

previously filled by former control area operators. Therefore, we adopt that proposal. 

125. International Transmission’s request for clarification whether a contingency may 

be considered a violation of an NPIR raises issues concerning what level of service is 

adequate to meet the NPIRs addressed in an interface agreement. Furthermore, 

International Transmission has not stated how communication protocols, as presented in 

NUC-001-1, would imply that the occurrence of a contingency would violate NUC-001-

1. Such issues are best resolved by those parties during the development of the 

agreement. 

126. As for Southern’s objection to the parties to an interface agreement coordinating 

responses to system events, we see nothing objectionable to the requirement that the 

parties to an interface agreement have procedures and protocols in place to respond to 

changing system conditions, consistent with nuclear license requirements and SOL 

procedures, as well as the remaining Reliability Standards. Nothing in the Reliability 
Docket No. RM08-3-000 - 62 - 

Standard or the NOPR description suggests that the nuclear plant generator operator is to 

be the party to coordinate transmission system responses. 

127. Similarly, with respect to NEI’s concern that the parties to an interface agreement 

be required to coordinate operational and maintenance issues where necessary, we 

conclude that a generator and a transmission system operator may agree to coordinate 

maintenance schedules in order to address system conditions, so long as the agreement is 

consistent, in this case, with the generator’s license requirements, the Reliability 

Standards, and the standards of conduct.60 

2. Addressing System Changes

128. Requirements R7 and R8 require parties to inform each other of design, 

configuration, operations, limits, protection systems, or capabilities that that may impact 

their ability to meet NPIRs. 

a. Comments

129. Entergy asks the Commission to clarify the level of proposed change that would 

trigger a Requirement R7 and R8 information exchange. According to Entergy, 

proposals to change a plant’s “design, configuration, operations, limits, protection 

systems, or capabilities” are evaluated routinely, due to the multitude of complex systems 

within a nuclear power plant, and the long lifetimes of such facilities. Entergy points out 

 60 Standards of Conduct for Transmission Providers, Notice of Proposed 

Rulemaking, Docket No. RM07-1-000, 73 FR 16228 (Mar. 27, 2008), FERC Stats. and 

Regs. ¶ 32,630 (2008). Revisions to the Standards of Conduct for Transmission 

Providers, Final Rule, Docket No. RM07-1-000, 125 FERC ¶ 61,062 (2008). 
Docket No. RM08-3-000 - 63 - 

that the NRC has extensive general design criteria and requirements for changes.61 

Entergy notes that proposals may never be approved, scheduled, or implemented and 

suggests that transmission system and facility proposals may be subject to similar 

concerns. 

130. Entergy notes the limitations in the Requirements that the proposed changes to be 

reported are those that “may impact the ability of the electric system to meet the NPIRs,” 

but claims that the description lacks clarity. Entergy suggests that nuclear plant generator 

operators and transmission entities will not be able to implement the Requirements 

without a determination of what changes to communicate and questions whether every 

discussion about a possible design change, technological improvement, or sale of 

facilities must be communicated. Entergy proposes that the Commission bypass 

agreement of the parties to an interface agreement and establish a limitation to include 

proposed changes that are formally approved, scheduled for implementation, and could 

significantly impact the ability of the Bulk-Power System to meet the NPIRs. 

b. Commission Determination 

131. The Commission declines to direct the clarification requested by Entergy. The 

Commission disagrees that the requirement to communicate changes that “may impact 

the ability of the electric system to meet the NPIRs” is not a clear requirement. It is an 

example of “what” is required, not “how” it should be performed which should be 

included in the agreements. The Commission believes that there are many plant-specific 

 61 See 10 CFR Part 50, Appendix B and 10 CFR 50.59. 
Docket No. RM08-3-000 - 64 - 

issues and does not expect they will be individually addressed in the Reliability Standard. 

However, it is clear what is required and the compliance audits will check that the entities 

have sufficiently covered them in their agreements. 

G. Violation Risk Factors

132. As part of its compliance and enforcement program, NERC must assign a lower, 

medium or high violation risk factor to each Requirement of each mandatory Reliability 

Standard to associate a violation of the Requirement with its potential impact on the 

reliability of the Bulk-Power System. Violation risk factors are defined as follows: 

High Risk Requirement: (a) is a requirement that, if violated, could directly 

cause or contribute to Bulk-Power System instability, separation, or a 

cascading sequence of failures, or could place the Bulk-Power System at an 

unacceptable risk of instability, separation, or cascading failures; or (b) is a 

requirement in a planning time frame that, if violated, could, under 

emergency, abnormal, or restorative conditions anticipated by the 

preparations, directly cause or contribute to Bulk-Power System instability, 

separation, or a cascading sequence of failures, or could place the BulkPower System at an unacceptable risk of instability, separation, or 

cascading failures, or could hinder restoration to a normal condition. 

Medium Risk Requirement: (a) is a requirement that, if violated, could 

directly affect the electrical state or the capability of the Bulk-Power 

System, or the ability to effectively monitor and control the Bulk-Power 

System, but is unlikely to lead to Bulk-Power System instability, 

separation, or cascading failures; or (b) is a requirement in a planning time 

frame that, if violated, could, under emergency, abnormal, or restorative 

conditions anticipated by the preparations, directly affect the electrical state 

or capability of the Bulk-Power System, or the ability to effectively 

monitor, control, or restore the Bulk-Power System, but is unlikely, under 

emergency, abnormal, or restoration conditions anticipated by the 

preparations, to lead to Bulk-Power System instability, separation, or 

cascading failures, nor to hinder restoration to a normal condition. 

Lower Risk Requirement: is administrative in nature and (a) is a 

requirement that, if violated, would not be expected to affect the electrical 

state or capability of the Bulk-Power System, or the ability to effectively 
Docket No. RM08-3-000 - 65 - 

monitor and control the Bulk-Power System; or (b) is a requirement in a 

planning time frame that, if violated, would not, under the emergency, 

abnormal, or restorative conditions anticipated by the preparations, be 

expected to affect the electrical state or capability of the Bulk-Power 

System, or the ability to effectively monitor, control, or restore the BulkPower System.62 

133. In its November 19, 2007 Petition, NERC identified and proposed violation risk 

factors for each Requirement of Reliability Standard NUC-001.63 The NOPR reviewed 

NERC’s proposal consistent with the terms proposed in the Violation Risk Factor Order, 

in which the Commission addressed violation risk factors filed by NERC for Version 0 

and Version 1 Reliability Standards.64 

NOPR Proposal

134. In the NOPR, the Commission disagreed with NERC’s suggestion that NUC-001-

1 Requirements were primarily administrative in nature and proposed to direct the ERO 

to raise violation risk factors for several Requirements. The NOPR stated the 

Commission’s general view that a Reliability Standard to ensure safe and reliable nuclear 

power plant operation and shutdown merits medium or high violation risk factors, rather 

than lower, due to the reliability benefits of nuclear power and the impact of separating a 

plant from the grid. 

 62 North American Electric Reliability Corp., 119 FERC ¶ 61,145, at P 9 

(Violation Risk Factor Order), order on reh’g, 120 FERC ¶ 61,145 (2007) (Violation Risk 

Factor Rehearing Order). 

63 NERC proposes a lower violation risk factor for Requirements R1, R2 and R9 

and a medium violation risk factor for Requirements R3 through R8. 

64 See Violation Risk Factor Order at P 19-36 (discussing five guidelines to 

evaluate the validity of each violation risk factor assignment). 
Docket No. RM08-3-000 - 66 - 

135. The NOPR noted that NUC-001-1 Requirements co-mingle administrative tasks 

with more critical requirements to ensure safe nuclear power plant operation and 

shutdown. These Requirements also provide for the safe and reliable operation of the 

grid, response to potential emergency conditions and implementation of procedures to 

address changing and emergency conditions. The NOPR sought comment on the 

Commission’s proposals to raise violation risk factors for NUC-001-1, Requirements R2 

(from lower to medium), R4, R5, R7, and R8 (medium to high), and R9 (lower to 

medium). 

136. The NOPR also stated the Commission’s understanding that NERC would apply 

the violation risk factor for the main Requirement to any violation of a sub-Requirement, 

unless separate violation risk factors are assigned to the Requirement and the subRequirement. 

1. General Violation Risk Factor Issues

a. Comments 

137. NERC and other commenters object to what they characterize as the general basis 

described in the NOPR for justifying changes to violation risk factors.65 They object to 

the Commission’s reliance on cited reliability benefits of nuclear power and the impact of 

separating a plant from the grid to justify raising the risk factors. NERC and EEI state 

that, despite the unique characteristics of nuclear power generation the reliability benefits 

 65 See generally Ameren, ATC, Detroit Edison, EEI, Entergy, Exelon, ISO/RTO 

Council, Ontario Power, Southern, and SCE&G comments. 
Docket No. RM08-3-000 - 67 - 

of nuclear power and the impact of separation from the grid are not different from the 

reliability impacts of a large output fossil generating facility. EEI further states that these 

reliability concerns are addressed in other Reliability Standards that apply to all 

generators, regardless of fuel type. 

138. Duke echoes these concerns, stating that violation risk factors (and violation 

severity levels) should establish penalty ranges that are proportionate to the potential 

impact of violations on the Bulk-Power System (medium or lower), but should not 

expose nuclear plant generator operators and transmission entities to extreme penalties 

simply because nuclear power plants are large units. 

139. Ameren maintains that NUC-001-1 is administrative in nature, not operational and 

the Commission should not revise the violation risk factors. 

140. Detroit Edison argues that the Commission’s proposal to increase the violation 

risk factors undermines the integrity and value of the NERC Reliability Standards 

development process and states that the Commission has not justified its departure from 

the determinations reached through that process.66 EEI similarly believes that any 

proposal to change violation risk factors or other aspects of Reliability Standards must be 

considered through NERC’s ANSI-approved Reliability Standards development 

process.67

 66 See also Ontario IESO and Hydro One, and SCE&G comments. 

67 Southern supports the EEI comments on violation risk factors. Ameren, Exelon, 

and Ontario Power support directing revisions through the Reliability Standards 

development process. 
Docket No. RM08-3-000 - 68 - 

141. Constellation requests assurance that when there are overlapping requirements, 

registered entities will be subject to a single penalty only. 

142. Finally, EEI comments that any proposal to change violation risk factors or other 

aspects of Reliability Standards must be considered through NERC’s Reliability Standard 

development process. It points out that the Commission adopted this approach in Order 

No. 706, stating that “where a directive for modification appears to be determinative of 

the outcome, the Commission provided guidance to the ERO standards development 

process but permitted consideration of an equivalent alternative approach that adequately 

addresses the Commission’s underlying goal or concern “as efficiently or effectively as 

the Commission proposal.”68 

b. Commission Determination 

143. The Commission declines to adopt the procedures proposed by the commenters. 

The Commission has previously determined that violation risk factors are not a part of the 

Reliability Standards.69 NERC has had an opportunity to fully vet the NUC-001-1 

violation risk factors through the Reliability Standards development process. The 

Commission believes that, for those violation risk factors that do not comport with the 

Commission’s previously-articulated guidelines for analyzing violation risk factor 

designations, there is little benefit in once again allowing the Reliability Standards 

 68 EEI comments at 8. 

69 Violation Risk Factor Rehearing Order, 120 FERC ¶ 61,145 at P 11-16, citing

North American Reliability Corp., 118 FERC ¶ 61,030, at P 91, order on clarification and 

reh'g, 119 FERC ¶ 61,046 (2007). 
Docket No. RM08-3-000 - 69 - 

development process to reconsider a designation based on the Commission’s concerns. 

Therefore, we will not allow NERC to reconsider the violation risk factor designations in 

this instance but, rather, direct below that NERC make specific modifications to its 

designations. NERC must submit a compliance filing with the revised violation risk 

factors no later than 90 days before the date the relevant Reliability Standard becomes 

enforceable. 

144. That being said, NERC may choose the procedural vehicle to change the violation 

risk factors consistent with the Commission’s directives. NERC may use the Reliability 

Standards development process, so long as it meets Commission-imposed deadlines.70 In 

this instance, the Commission sees no vital reason to direct the ERO to use section 1403 

of its Rules of Procedure to revise the violation risk factors discussed below, so long as 

the revised violation risk factors address the Commission’s concerns and are filed no less 

than 90 days before the effective date of the relevant Reliability Standard. 

145. Coordinating operations and planning between the nuclear power plant and its 

transmission entities serves two purposes; safety of the nuclear power plant and reliability 

of the Bulk-Power System. With regard to safety, the Blackout Report highlighted the 

importance of coordinated operations and planning between the Bulk-Power System and 

nuclear power plants, stating “[a]s the design and operation of the electricity grid is taken 

into account when evaluating the safety analysis of nuclear power plants, changes to the 

 70See North American Electric Reliability Corp., 118 FERC ¶ 61,030, at P 91, 

order on compliance, 119 FERC ¶ 61,046, at P 33 (2007).
Docket No. RM08-3-000 - 70 - 

electricity grid must be evaluated for the impact on plant safety.”71 With regard to 

reliability, since the NPIR supports many of the requirements necessary for the nuclear 

power plant to operate connected to the bulk electric system, not having an NPIR could 

result in the long-term outage of one or all nuclear power plants at a particular site to 

which the NPIR is applicable. This is relevant because the bulk electric system is not 

required to be planned to have multiple nuclear power plants out of service during peak 

load periods. As a result, the Commission disagrees with commenters that object to its 

reliance on the impact of a nuclear power plant separating from the grid to justify 

elevating violation risk factors for requirements of the Reliability Standard. While the 

Commission recognizes that the power produced from nuclear and non-nuclear power 

plants is the same, the conditions under which nuclear power plants can safely operate are 

inherently different than non-nuclear power plants because a nuclear power plant must 

meet all licensing requirements established by the NRC to remain connected to the grid. 

146. The Commission is concerned that a lack of coordination of operations and 

planning between a nuclear power plant and its transmission entities with respect to the 

interface capabilities and requirements has the potential to result in both the unanticipated 

separation and the long term outage of one or all nuclear power plants at a site from the 

Bulk-Power System. The former has the potential to place the Bulk-Power System at risk 

for cascading outages while the latter may result in inadequate system capabilities to 

 71 See U.S.-Canada Power System Outage Task Force, Final Report on the 

August 14, 2003 Blackout in the United States and Canada: Causes and 

Recommendations, at 129 (April 2004) (Blackout Report). 
Docket No. RM08-3-000 - 71 - 

meet the projected firm load in either the planning or operating horizon. For example, 

once disconnected, before a nuclear power plant can reconnect to the Bulk-Power 

System, not only must Bulk-Power System conditions be suitable, but the nuclear power 

plant must also complete certain activities relevant to ensuring the safety of the plant to 

resume power production. Since nuclear power plants are typically designed as base load 

plants, the Commission is concerned that while the Bulk-Power System may typically be 

able to withstand the disconnection of a nuclear power plant for a reasonable period until 

such time Bulk-Power System conditions allow for reconnection and the nuclear power 

plant is permitted to reconnect, a prolonged disconnection of a nuclear power plant 

because its NPIRs are not satisfied may not be sustainable without affecting system 

capabilities, thus putting the Bulk-Power System at risk for instability, separation, or 

cascading outages. 

147. The Commission also disagrees with arguments that elevated violation risk factors 

for Requirements of the Reliability Standard are not justified because the reliability 

concern of instability, separation, or cascading outages are already addressed in other 

Reliability Standards. The Commission agrees with commenters that, as required by 

other Reliability Standards, the Bulk-Power System is planned and operated such that 

there will not be any interruptions of firm transmission service after one event, such as 

the loss of a generator, nuclear fueled or otherwise.72 However, the Commission has 

 72 See Order No. 693 at P 1794 (“[b]ased on the record before us, we believe that 

the transmission planning Reliability Standard should not allow an entity to plan for the 

loss of non-consequential load in the event of a single contingency”). The Commission 

(continued...) 
Docket No. RM08-3-000 - 72 - 

previously determined that it is not appropriate to mitigate perceived content issues 

among Reliability Standards, as suggested by commenters in this instance as the 

duplication of reliability objectives, through the violation risk factor assignment.73 A 

violation risk factor represents the potential reliability risk a violation of a requirement 

presents to the Bulk-Power System. This assessed reliability risk is independent of, and 

not contingent upon, compliance with other Reliability Standard requirements. The 

Commission recognizes the complementary nature of some Reliability Standard 

Requirements and the fact that some requirements may share the same reliability 

objective. In fact, the Commission expects the assignment of a violation risk factor 

corresponding to requirements that address similar reliability goals in different Reliability 

Standards to be treated comparably.74

148. Commenters also argue that elevated violation risk factors are not justified 

because the proposed Reliability Standard is administrative in nature, not operational. 

The Commission disagrees. While the Commission recognized in the NOPR that many 

of the requirements of the Nuclear Reliability Standard are administrative in nature, these 

same requirements provide for the development of procedures to ensure the safe and 

 

recognized that load directly connected to a fault would be removed from service. See 

also TPL-001-000, Table 1, “Transmission Planning Standards – Normal and Emergency 

Conditions.” 

73 North American Electric Reliability Corp., 121 FERC ¶ 61,179, at P 16 (2007) 

(Order on Violation Risk Factor Compliance Filing). 

74 Violation Risk Factor Order, 119 FERC ¶ 61,145 at P 25. 
Docket No. RM08-3-000 - 73 - 

reliable operation of the grid, and responses to potential emergency conditions.75 As 

such, we disagree with arguments that the proposed standard focuses on nuclear safety 

through the administrative requirement of establishing agreements and not grid 

reliability. 

149. Constellation’s request for assurance that, when there are overlapping 

requirements, registered entities will be subject to a single penalty is a compliance issue 

and is thus best addressed on a case-by-case basis in the context of a compliance 

proceeding. We note that each instance of non-compliance with a Requirement is a 

separate violation. This is consistent with the FPA which establishes the statutory 

maximum penalty amount of $ 1 million on a per day, per violation basis as reflected in 

the order certifying NERC as the ERO.76 However, the Commission approved NERC’s 

Sanction Guidelines that allow NERC, in the context of a compliance proceeding, to use 

its discretion in the determination of monetary penalties for a violation of a Requirement 

of a Reliability Standard.77 

 75 NOPR at P 51. 

76 16 U.S.C. 825o-1(b) (2006). See also North American Electric Reliability 

Corp., 116 FERC ¶ 61,062, at P 412 (Certification Order), order on reh’g and 

compliance, 117 FERC ¶ 61,126 (2006). 

77 Section 3.10 of the NERC Sanction Guidelines states in part, “NERC or the 

regional entity can determine and levy a separate penalty or sanction, or direct remedial 

action, upon a violator for each individual violator for each individual violation. 

However, in instances of multiple violations related to a single act or common incidence 

of noncompliance, NERC or the regional entity will generally determine and issue a 

single aggregate penalty, sanction, or remedial action directive bearing reasonable 

relationship to the aggregate of the related violations.” 
Docket No. RM08-3-000 - 74 - 

150. EEI’s argument that Order No. 706 requires changes to the violation risk factors to 

be considered through the Reliability Standards development process is flawed. The 

passages in Order No. 706 cited by EEI concern modification of the Reliability Standard 

itself. As the Commission has repeatedly held, the violation risk factors are not a part of 

the Reliability Standards. In fact, in Order No. 706, we stated that “we will not allow 

NERC to reconsider the violation risk factor designations in this instance but, rather, 

direct below that NERC make specific modifications to its designations.”78 However, 

similar to our action in this order, Order No. 706 allowed NERC to choose the procedural 

vehicle to change the violation risk factors, so long as it meets Commission-imposed 

deadlines.79 

2. Requirement-Specific Issues

a. Requirement R2

 i. NOPR

151. The NOPR proposed to direct the ERO to raise the violation risk factor for 

Requirement R2 from lower to medium. The NOPR justified this proposal because the 

Requirement co-mingles the administrative element of having an executed agreement in 

place with the operational element of determining how the parties to the interface 

agreement will address nuclear plant licensing requirements and SOLs in order to provide 

 78 Mandatory Reliability Standards for Critical Infrastructure Protection, Docket 

No. RM06-22-000; Order No. 706, 73 FR 7368 (Feb. 7, 2008), 122 FERC ¶ 61,040, at 

P 757, order on reh'g, Order No. 706-A, 123 FERC ¶ 61,174 (2008). 

79 Id. 
Docket No. RM08-3-000 - 75 - 

for safe nuclear plant operation and shutdown. Thus, the operational requirements 

established will include requirements for off-site power to enable safe operation and 

shutdown during an electric system or plant event. Therefore, the NOPR noted that a 

violation of Requirement R2 “could, under emergency, abnormal, or restorative 

conditions anticipated by the preparations, directly affect the electrical state or capability 

of the Bulk-Power System” and found that a medium violation risk factor is appropriate. 

iii. Comments 

152. Ontario IESO and Hydro One and SCE&G disagree with the Commission that 

Requirement R2 has a direct impact on the electrical state or capability of the Bulk-Power 

System. They argue that, in the absence of an agreement, each party would continue to 

operate its own system in accordance with all applicable Reliability Standards.80 Entergy 

and NEI argue that Requirement R2 is an administrative requirement, and state that 

violations can be quickly detected and corrected and will not directly affect the BulkPower System. Entergy also points out that Requirement R2 takes place in the planning 

timeframe and concludes that a lower violation risk factor is more appropriate. 

iii. Commission Determination 

153. The Commission adopts the NOPR proposal. As the Commission identified in the 

NOPR, Requirement R2 co-mingles the administrative element of having an executed 

agreement in place with the operational element of determining how the parties to the 

 80 Detroit Edison states that it agrees with Ontario IESO and Hydro One on 

specific violation risk factor issues, and Ontario Power and SCE&G also disagree with 

the Commission’s proposals. 
Docket No. RM08-3-000 - 76 - 

interface will address nuclear plant licensing requirements and SOLs. Consistent with 

violation risk factor guideline five, the Commission expects the assigned violation risk 

factor to reflect the highest reliability risk objective of the requirement.81 A failure to 

establish operational and implementation elements of the NPIRs, the higher reliability 

risk objective of the requirement, has the potential under emergency, abnormal, or 

restorative conditions to directly affect the electrical state or capability of the Bulk-Power 

System. 

154. Arguments that elevating a violation risk factor is not justified because 

Requirement R2 is an administrative requirement that takes place in the planning time 

frame, thus violations are quickly detected and corrected are fundamentally flawed.82 

NERC contemplates in its definitions of the violation risk factor levels, the reliability risk 

a requirement violation presents in both the operating and planning time frames. 

Consistent with NERC’s definition, a violation risk factor represents the potential 

reliability risk a violation of a requirement presents to the Bulk-Power System, regardless 

of the time frame. 

155. With regard to comments from Ontario IESO and Hydro One and SCE&G, as 

explained previously in this Final Rule, it is not appropriate to assign a requirement’s 

violation risk factor based on compliance with other Reliability Standards. 

 81 Violation Risk Factor Order, 119 FERC ¶ 61,145 at P 32. 

82 See NEI comments at 8, and Entergy comments at 15. 
Docket No. RM08-3-000 - 77 - 

156. Accordingly, the Commission directs the ERO to revise the violation risk factor 

assignment for Requirement R2 from lower to medium no later then 90 days before the 

effective date of the Reliability Standard. 

b. Requirements R4.2 and R4.3

i. NOPR

157. The NOPR proposed to direct the ERO to raise the violation risk factors for subRequirements R4.2 and R4.3 to high. Sub-Requirements R4.2 and R4.3 require a 

transmission entity to incorporate NPIRs into operating analyses, operate to meet the 

NPIRs and inform the nuclear plant generator operator when the ability to assess 

performance to meet the NPIRs is lost. 

158. The NOPR states that sub-Requirement R4.2 obligates a transmission entity to 

operate its electric system to meet NPIRs established in an interface agreement. 

Furthermore, NPIRs are described as forming the basis for nuclear plant generator 

operators and transmission entities to “coordinate planning, assessment, analysis, and 

operation of the bulk power system to ensure safe nuclear plant operations and 

shutdowns.” Therefore, the NOPR noted that, under emergency, abnormal, or restorative 

conditions, a violation of Requirement R4.2 could directly cause or contribute to BulkPower System instability, separation, or a cascading sequence of failures, or could place 
Docket No. RM08-3-000 - 78 - 

the Bulk-Power System at an unacceptable risk of instability, separation, or cascading 

failures,83 and proposed a high violation risk factor for Requirement R4.2. 

159. The NOPR noted that Requirement R4.3 obligates a transmission entity to inform 

the nuclear plant generator operator when the ability to monitor the system and verify 

NPIRs is lost. The NOPR noted that a nuclear plant generator operator that is not aware 

that a transmission entity can no longer guarantee that NPIRs are met to respond to, 

would suffer an impaired ability to anticipate, emergencies and changing system 

conditions. Because such an event could increase the likelihood that the plant is 

separated from the transmission system and cause significant degradation in Bulk-Power 

System reliability, characterized by instability, uncontrolled islanding and cascading, the 

NOPR proposed to direct the ERO to raise the violation risk factor for Requirement R4.3 

from medium to high, and requested comment. 

ii. Comments 

160. Several commenters object to the proposal to raise the violation risk factor of 

Requirement R4.2 and R4.3.84 NEI characterizes Requirement R4.2 as requiring 

transmission entities to operate their electrical systems to meet the NPIRs incorporated in 

 83 See also NERC November 19, 2007 Petition at 20 (“The proposed reliability 

standard also acknowledges that the obligation to public safety relative to nuclear plant 

operation establishes a unique set of requirements that other generating facilities are not 

subjected to. In order to protect the common good, the applicable transmission entities 

must respect these unique requirements that maintain and/or restore offsite power 

adequate to supply minimum nuclear safety requirements.”). 

84 See ConEdison, Detroit Edison, Entergy, Ontario IESO and Hydro One, 

Midwest ISO, NEI, Ontario Power, and SCE&G comments. 
Docket No. RM08-3-000 - 79 - 

the interface agreements and describes Requirement R4.3 as requiring transmission 

entities which lose the ability to monitor their systems to maintain compliance with 

NPIRs to communicate this information to the affected nuclear plant generator operators. 

NEI, ConEdison, and Entergy state that the Commission’s concerns regarding the loss of 

a single generator are addressed in other NERC Reliability Standards that minimize the 

risk of system instability, separation, or cascading loss if a generator were to go offline. 

161. NEI states that transmission planning and operations Reliability Standards require 

the transmission system to be able to withstand threats from the loss of a single generator. 

According to NEI, entities having the responsibility to meet the Requirements of these 

other Reliability Standards already incorporate the limitations of nuclear generating 

plants into their studies and analyses and address the loss of a given generator and limit 

the effect of the loss on the grid. NEI states that NUC-001-1 deals only with the 

important interaction and communication between the nuclear plant generator operator 

and transmission entities to ensure that the NPIRs are met, while the operation of the 

Bulk-Power System and requirements to prevent instability, separation, or cascading 

failures are adequately addressed by other Reliability Standards. 

162. Ontario IESO and Hydro One characterize the consequences of a violation of 

Requirement R4.2 or R4.3 as affecting a nuclear plant generator operator’s license 

requirements and may result in a shut down, but argue that such a result, while significant 

to the generator, would not cause significant degradation in Bulk-Power System. Ontario 

IESO and Hydro One state that the shut down of a power plant is a controlled process, 
Docket No. RM08-3-000 - 80 - 

not a contingency, and conclude that reliability impacts such as instability, uncontrolled 

islanding and cascading would not result. 

163. Midwest ISO disagrees with the Commission’s assessment that a high violation 

risk factor is necessary for Requirement R4.2. In most cases, if the reliability coordinator 

and transmission operator are in a condition in which the bulk electric system cannot 

support the off-site power requirements of a nuclear plant, the nuclear plant is not at risk 

of tripping. Normally, in its licensing requirements, the plant is required after a period of 

time (usually two to eight hours) to begin a controlled shutdown of the reactor in this 

situation. 

iii. Commission Determination 

164. The Commission confirms its findings proposed in the NOPR and directs the ERO 

to revise the violation risk factor for Requirements R4.2 and R4.3 from medium to high. 

We disagree with the characterization that Requirements R4.2 and R4.3 deal only with 

the “important interaction and communication between the nuclear plant [generator] 

operator and transition entities to ensure that the NPIRs are met.”85 As discussed in the 

NOPR, these requirements are directly relevant to ensuring the continued operation of a 

nuclear power plant on the Bulk-Power System. A failure of the transmission entity to 

operate as needed to provide the NPIR or inform the nuclear plant generator operator 

when its ability to assess the operation of the electric system is lost, puts the Bulk-Power 

System at risk of cascading outages. We note that most nuclear plant sites operate more 

 85 NEI comments at 8. 
Docket No. RM08-3-000 - 81 - 

than one nuclear power plant. If a transmission entity loses its ability to assess the 

operation of the electric system affecting its NPIRs, it will, in most cases, impact more 

than one nuclear power plant where the result would be the shutdown, controlled or 

otherwise, of the applicable nuclear plant site. As a result, there could be significant loss 

of firm transmission service if not cascading. 

165. The Commission is also not persuaded by the argument that elevated violation risk 

factors are not justified because the shutdown of a nuclear power plant is a controlled 

process and not a contingency. NERC defines a contingency as, “the unexpected failure 

or outage of a system component, such as a generator, transmission line, circuit breaker, 

switch or other electrical element.” Although the shut down of a nuclear power plant is 

described as a “controlled” process because of the methodical and orderly operation of 

safety systems to disconnect the plant from the Bulk-Power System, the shut down is 

initiated because Bulk-Power System conditions are unsuitable for the continued 

operation of the nuclear power plant on the Bulk-Power System. If the shutdown, albeit 

controlled, of a nuclear power plant is unexpected in the course of the operation of the 

Bulk-Power System, it is, nonetheless, a contingency that must be accommodated in real 

time operations without the loss of firm service. 

166. Further, not continuously providing specific NPIRs may result in the additional 

loss of one or more nuclear power plants during single or multiple contingencies. The 

Commission is concerned that an initial system event near, but unrelated to, one or more 

nuclear power plants that degrades system conditions beyond the nuclear power plant’s 

license requirements could result in the disconnection of one or more nuclear power 
Docket No. RM08-3-000 - 82 - 

plants from the Bulk-Power System. In this case, the outages of multiple nuclear power 

plants would be the result of one contingency and would be considered by the 

Commission to be a single event. However, the reliability impact to the bulk electric 

system due to this single event may not be addressed in operations planning and long 

term planning, thus putting the Bulk-Power System at risk of cascading outages. Thus, 

not achieving the NPIRs could put the Bulk-Power System in danger of instability, 

separation or a cascading sequence of failures. 

167. For the reasons discussed previously in this Final Rule, the Commission reiterates 

that it is not appropriate to assess a requirement’s violation risk factor assignment based 

on compliance with other Reliability Standard requirements. 

168. Therefore, consistent with the definition of a high violation risk factor, for the 

reasons discussed above, the Commission directs the ERO to revise the violation risk 

factor assignment for Requirements R4.2 and R4.3 from medium to high no later then 90 

days before the effective date of the Reliability Standard. 

c. Requirement R5

i. NOPR

169. The NOPR proposed to direct the ERO to raise the violation risk factor for 

Requirement R5 from medium to high. The NOPR noted that Requirement R5 obligates 

a nuclear plant generator operator to operate its system consistent with the interface 

agreement developed under NUC-001-1, and that the separation of a typically large 

nuclear power plant from the grid may significantly affect grid operations. Because 

nuclear power plant service interruptions could be initiated by incidents occurring on the 
Docket No. RM08-3-000 - 83 - 

nuclear power plant system, including incidents stemming from a failure to meet 

interface agreement terms, a violation of Requirement R5 could directly affect the 

reliability of the system. That possibility suggested that the violation risk factor for 

Requirement R5 should be raised from medium to high. 

ii. Comments 

170. Several commenters object to the proposal to raise the Requirement R5 violation 

risk factor from medium to high.86 NEI characterizes Requirement R5 as ensuring that 

the nuclear plant generator operator understands and implements the interface 

agreements, and coordinates with the applicable transmission entities to ensure nuclear 

plant safe operation and shutdown. According to NEI, the nuclear industry consensus is 

that operation of the Bulk-Power System to prevent instability, separation, or cascading 

failures is adequately addressed by other Reliability Standards. According to NEI, the 

NOPR overstates the significance of the separation of a nuclear plant from the BulkPower System, because all Bulk-Power Systems are designed and operated to handle the 

loss of the largest generator on the grid as an N-1 contingency, including a large nuclear 

power plant, which may not be the largest generator on the grid. Hence, the separation of 

a nuclear power plant should not be assumed to result in a loss of Bulk-Power System 

stability. NEI states that transmission grids must be able to withstand the loss of a single 

 86 See Detroit Edison, Ontario IESO and Hydro One, Entergy, Ontario Power, and 

SCE&G comments. 
Docket No. RM08-3-000 - 84 - 

generating unit, including nuclear power plants and other facilities.87 Thus, according to 

NEI the tripping of a large nuclear unit should not directly cause Bulk-Power System 

instability, separation or a cascading sequence of failures or place the Bulk-Power 

System at an unacceptable risk of instability, separation, or cascading failures. Should a 

nuclear generating unit separate from the grid and the resultant “post-trip” voltage be 

insufficient to meet the nuclear offsite power requirements for the site, it would not result 

in the automatic separation of the remaining nuclear units. Any subsequent shutdown of 

the nuclear units should not introduce grid or nuclear system transients because the 

shutdown would be an operator controlled, orderly process to ensure compliance with the 

requirements of the license. 

171. Ontario IESO and Hydro One concede that failure to meet this requirement may 

significantly affect grid control and operation, but suggest that the reliability of the power 

grid will not be affected in a way that will cause instability, uncontrolled islanding and 

cascading because the separation of the plant would be coordinated and implemented in a 

controlled manner. Entergy states that the purpose of NUC-001-1 is to ensure the safe 

operation of nuclear power plants by requiring plant operators and transmission entities to 

 87 NEI cites the NERC “Category B” stability criteria which it describes as the 

most restrictive criteria. See TPL-001-000, Table 1, “Transmission Planning Standards.” 

NEI also cites what it characterizes as more stringent regional criteria that require that the 

common mode simultaneous outage of two generator units (nuclear or otherwise) 

connected to the same switchyard shall not result in cascading, though not addressed by 

the initiating events in NERC “Category C.” 
Docket No. RM08-3-000 - 85 - 

coordinate to meet NPIRs and that other Reliability Standards provide for operation of 

the Bulk-Power System to prevent instability, separation, or cascading failures. 

iii. Commission Determination 

172. The Commission adopts the NOPR proposal. Commenters argue that elevating 

the violation risk factor assignment for Requirement R5 is not justified because: (1) the 

Commission overstates the significance of separation of a nuclear plant from the BulkPower System; (2) the reliability concerns associated with instability, separation, or 

cascading outages are already addressed in other Reliability Standards, and (3) the 

shutdown of a nuclear power plant is a controlled process and not a contingency. 

173. Each of these arguments has been previously addressed in this Final Rule. 

Accordingly, the Commission directs the ERO to revise the violation risk factor 

assignment for Requirement R5 from medium to high no later then 90 days before the 

effective date of the Reliability Standard. 

d. Requirements R7 and R8

i. NOPR

174. The NOPR proposed to direct the ERO to raise the violation risk factors for 

Requirements R7 and R8 from medium to high, and sought comment. Requirements R7 

and R8 obligate a nuclear plant generator operator and its transmission entities to inform 

each other of actual or proposed changes to their facilities that affect their ability to meet 

NPIRs. Because the information to be exchanged, such as “limits” and “protection 

systems,” affects the ability of a plant to remain connected to the Bulk-Power System, the 

NOPR stated that a failure to provide information could result in a nuclear plant 
Docket No. RM08-3-000 - 86 - 

disconnecting from the Bulk-Power System, and place the Bulk-Power System at risk for 

cascading outages. To account for such a risk, the NOPR proposed to direct the ERO to 

raise the violation risk factors for Requirements R7 and R8 from medium to high. 

ii. Comments

175. NEI states the violation risk factors for Requirements R7 and R8 should not be 

changed. NEI states Requirements R7 and R8 require nuclear plant generator operators 

and their transmission entities to communicate with each other regarding any changes to 

their facilities that could affect their capacity to meet their NPIR obligations. Since 

violations of these requirements are not likely to lead to Bulk-Power System instability, 

separation, or cascading failures, the violation risk factors for Requirements R7 and R8 

should not be changed. Entergy also argues that Requirements R7 and R8 should have a 

medium violation risk factor, since a failure of communication to be avoided under the 

Requirements is not likely to lead to significant events such as Bulk- Power System 

instability, separation, or cascading failures, but only over the parties ability to monitor 

and oversee the Bulk-Power System or cause other unspecified problems. 

176. Ontario IESO and Hydro One also suggest that the violation risk factors of 

Requirements R7 and R8 be assigned to medium, not high.88 They agree that failure to 

meet these requirements may significantly affect grid control and operation, but not the 

reliability of the power grid characterized by instability, uncontrolled islanding and 

cascading. Finally, ConEdison believes that the violation risk factor for Requirement R8 

 88 See also Detroit Edison, Ontario Power, and SCE&G comments. 
Docket No. RM08-3-000 - 87 - 

should not be changed because transmission planners and operators do not analyze 

generation from nuclear power plants differently than other generators or the 

requirements are largely administrative. 

iii. Commission Determination 

177. The Commission adopts the NOPR proposal. As discussed in the NOPR and in 

additional detail above, if transmission entities and nuclear plant generator operators do 

not provide or otherwise communicate information concerning system changes to each 

other, their planning and operating analyses may not include the true consequences of a 

single contingency. As a result, unanticipated events that could result in the 

disconnection of one or more nuclear power plants from the Bulk-Power System, in 

addition to the consequences of the initiating event, could place the Bulk-Power System 

at risk for cascading outages. 

178. Arguments that elevating the violation risk factor assignment for Requirements R7 

and R8 is not justified because the shutdown of a nuclear power plant is a controlled 

process and transmission planners and operators do not analyze nuclear power plants 

differently than other generation have been previously addressed in this Final Rule. 

179. Accordingly, consistent with the definition of a high violation risk factor, and for 

the reasons discussed above, the Commission directs the ERO to revise the violation risk 

factor assignment for Requirements R7 and R8 from medium to high no later then 90 

days before the effective date of the Reliability Standard. 
Docket No. RM08-3-000 - 88 - 

e. Requirement R9 

i. NOPR

180. The NOPR proposed to direct the ERO to raise the violation risk factor for 

Requirement R9 from lower to medium, and sought comment. Requirement R9 describes 

specific administrative, technical, operations, maintenance, coordination, 

communications, and training elements that a nuclear plant generator operator and its 

transmission entities must include in their interface agreement. The NOPR stated that 

Requirement R9 is similar to Requirement R2, in that it co-mingles an administrative 

element of incorporating the various elements into the interface agreement with the 

operational element of determining how the parties to the interface agreement will 

address the administrative, technical, operations, maintenance, coordination, 

communications, and training issues in order to provide for safe nuclear power plant 

operation and shutdown. The NOPR stated that a violation of Requirement R9 could 

result in an inability to resolve system conditions in an emergency because the necessary 

operational or emergency planning elements may not be in place. Therefore, the NOPR 

noted that a violation of Requirement R9 “could, under emergency, abnormal, or 

restorative conditions anticipated by the preparations, directly affect the electrical state or 

capability of the Bulk-Power System.” In response, the NOPR proposed to find that a 

medium violation risk factor is appropriate for Requirement R9, but stated that if the 

ERO wishes to assign a lower violation risk factor to the purely administrative subRequirements of Requirement R9, it could propose appropriate differentiation in its 

comments. 
Docket No. RM08-3-000 - 89 - 

ii. Comments 

181. Commenters object to raising this violation risk factor because Requirement R9 is 

a planning requirement that is administrative in nature. Because generation from nuclear 

power plants is not analyzed differently than other generation by transmission planners 

and operators their operations do not justify higher risk factors. 

182. NEI states the violation risk factor for Requirement R9 should not be changed. 

Requirement R9 sets forth the specific administrative, technical, operations, maintenance, 

coordination, communications, and training elements that a nuclear plant generator 

operator and its transmission entities must incorporate in the interface agreement. It 

argues that, while the implementation of these elements is substantive, Requirement R9 is 

an administrative requirement to include the specified provisions. Violations of this 

requirement can be readily identified and corrected; therefore, violations should not 

directly affect the Bulk-Power System. 

183. Entergy characterizes Requirement R9 as addressing the various elements that 

parties must address in an interface agreement and supporting the terms in Requirements 

R3 through 8. Entergy states that Requirement R9 is administrative in nature, occurs in 

the planning time frame and violations could be easily corrected without affecting the 

reliability of the Bulk-Power System. 

iii. Commission Determination 

184. Consistent with the NOPR, the Commission directs the ERO to revise the 

violation risk factor assignment for Requirement R9 from lower to medium. The 

Commission disagrees with commenters that a lower violation risk factor is appropriate 
Docket No. RM08-3-000 - 90 - 

because Requirement R9 is an administrative requirement to include the specified 

provisions. While the Commission recognized in the NOPR that many of the 

requirements of the proposed Reliability Standard are administrative in nature, these 

same requirements provide for the development of procedures to ensure the safe and 

reliable operation of the grid, and responses to potential emergency conditions. 

185. Further, as identified in the NOPR, Requirement R9 co-mingles the administrative 

element of incorporating the various elements into the interface agreement with the 

operational elements of determining how the parties to the interface agreement will 

address the administrative, technical, operations, maintenance, coordination, 

communications, and training issues for safe nuclear power plant operation and 

shutdown. Consistent with violation risk factor Guideline 5, the Commission expects the 

assigned violation risk factor to reflect the highest reliability risk objective of the 

requirement. A violation of the highest reliability risk objectives of Requirement R9, 

under emergency, abnormal, or restorative conditions has the potential to affect the 

electrical state or capability of the Bulk-Power System. 

186. As discussed previously in this Final Rule, arguments that elevating the violation 

risk factor assigned to Requirement R9 are not justified because the subject requirement 

takes place in the planning time frame, thus violations are quickly detected and corrected, 

are fundamentally flawed. 

187. Therefore, consistent with the definition of a medium violation risk factor, and for 

the reasons discussed above, the Commission directs the ERO to revise the violation risk 
Docket No. RM08-3-000 - 91 - 

factor assignment for Requirement R9 from lower to medium no later then 90 days before 

the effective date of the Reliability Standard. 

H. Violation Severity Levels

188. For each Requirement of a Reliability Standard, NERC states that it will also 

define up to four violation severity levels – lower, moderate, high and severe – as 

measurements of the degree to which the Requirement was violated. For a specific 

violation of a particular Requirement, NERC or the Regional Entity will establish the 

initial value range for the base penalty amount by finding the intersection of the 

applicable violation risk factor and violation severity level in the Base Penalty Amount 

Table in Appendix A of the Sanction Guidelines.89 

1. NOPR

189. The NOPR noted that NERC’s November 19, 2007 Petition proposed violation 

severity levels that apply generally to all violations of the Requirements of NUC-001-1, 

rather than to specific Requirements and sub-Requirements, but that NERC had 

submitted proposed new violation severity levels for each Requirement and subRequirement of NUC-001-1 in Docket No. RR08-4-000.90 

 89 See North American Electric Reliability Corp., 119 FERC ¶ 61,248, at P 74 

(2007) (directing NERC to develop up to four violation severity levels (lower, moderate, 

high, and severe) as measurements of the degree of a violation for each requirement and 

sub-requirement of a Reliability Standard). 

90 The updated NUC-001-1 violation severity levels are provided in NERC’s 

March 4, 2008 filing of revised Exhibit A, containing the NERC violation severity level 

matrix, in Docket No. RR08-4-000. 
Docket No. RM08-3-000 - 92 - 

190. The NOPR stated the Commission’s intention to address issues relating to NUC001-1 violation severity levels in the Docket No. RR08-4-000 proceeding, but approve 

the proposed undifferentiated violation severity levels on an interim basis, in case the 

revised violation severity levels are not approved before the NUC-001-1 effective date. 

Because the initial violation severity levels for NUC-001-1 resemble previously proposed 

levels of non-compliance by grouping Requirements in NUC-001-1 rather than 

distinguishing on a per-Requirement and sub-Requirement basis, the NOPR proposed to 

treat the proposed, undifferentiated violation severity levels for NUC-001-1 consistent 

with the treatment adopted for levels of non-compliance, until the Requirement and subRequirement-specific violation severity levels are approved.91 

2. Comments 

191. NERC concurs with the Commission’s approach to violation severity levels. 

3. Commission Determination 

192. The Commission takes no action on the violation severity levels in this Final Rule. 

The June 19, 2008 Order on violation severity levels directed the ERO to assess the 

violation severity levels for proposed NUC-001-1 in accordance with the Commission’s 

guidelines set forth in that order.92 As such, NERC has been directed to re-submit 

violation severity levels for NUC-001-1, including appropriate revisions based on the 

 91 See North American Electric Reliability Corp., 119 FERC ¶ 61,248 at P 78-80. 

92 North American Electric Reliability Corp., 123 FERC ¶ 61,284, at P 14 (2008) 

(Violation Severity Level Order). 
Docket No. RM08-3-000 - 93 - 

application of the Commission’s guidelines, as part of NERC’s six-month compliance 

filing directed in the Violation Severity Level Order.93 

III. Information Collection Statement

193. The Office of Management and Budget (OMB) regulations require approval of 

certain information collection requirements imposed by agency rules.94 Upon approval of 

a collection(s) of information, OMB will assign an OMB control number and an 

expiration date. Respondents subject to the filing requirements of this Final Rule will not 

be penalized for failing to respond to these collections of information unless the 

collections of information display a valid OMB control number. The Paperwork 

Reduction Act (PRA)95 requires each federal agency to seek and obtain OMB approval 

before undertaking a collection of information directed to 10 or more persons, or 

continuing a collection for which OMB approval and validity of the control number are 

about to expire.96 The PRA defines the phrase “collection of information” to be the 

“obtaining, causing to be obtained, soliciting, or requiring the disclosure to third parties 

or the public, of facts or opinions by or for an agency, regardless of form or format, 

calling for either— 

 93 The Commission notes that NERC has sought rehearing of the Violation 

Severity Level Order concerning the scope and timing of the compliance filing in Docket 

No. RR08-4-001. 

94 5 CFR 1320.11. 

95 44 U.S.C. 3501-20. 

96 44 U.S.C. 3502(3)(A)(i), 44 U.S.C. 3507(a)(3). 
Docket No. RM08-3-000 - 94 - 

(i) answers to identical questions posed to, or identical reporting or 

recordkeeping requirements imposed on ten or more persons, other than 

agencies, instrumentalities, or employees of the United States; or (ii) 

answers to questions posed to agencies, instrumentalities, or employees of 

the United States which are to be used for general statistical purposes.”97 

194. This Final Rule approves the new Reliability Standard developed by NERC as the 

ERO. In addition, the Final Rule directs the ERO to develop a modification to one 

Requirement through its Reliability Standards development process. Section 215 of the 

FPA authorizes the ERO to develop and enforce Reliability Standards that provide for an 

adequate level of reliability of the Bulk-Power System. Pursuant to the statute, the ERO 

must submit each Reliability Standard that it proposes to be made effective to the 

Commission for approval.98 

195. Reliability Standard NUC-001-1 does not require responsible entities to file 

information with the Commission. Nor, with the exception of a three year selfcertification of compliance, does the Reliability Standard require responsible entities to 

file information with the ERO or Regional Entities. However, the Reliability Standard 

does require responsible entities to develop and maintain certain information for a 

specified period of time, subject to inspection by the ERO or Regional Entities. 

196. Reliability Standard NUC-001-1 requires nuclear plant generator operators and 

entities that provide generation, transmission and distribution services relating to off-site 

power (these entities are defined as “transmission entities”) to enter into interface 

 97 44 U.S.C. 3502(3)(A). 

98 See 16 U.S.C. 824o(d). 
Docket No. RM08-3-000 - 95 - 

agreements with nuclear plant generator operators that will govern certain 

communication, training, operational and planning elements for use in addressing 

generation and transmission system limits and nuclear licensing requirements. The 

Commission understands that most entities subject to this Reliability Standard already 

have such agreements in place. The responsible entities are also required to retain 

evidence that they executed such an agreement and incorporated its terms into systems 

planning and operations. Further, each nuclear plant generator operator and transmission 

entity must self-certify its compliance to the compliance monitor once every three years. 

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

OMB for its review and approval under section 3507(d) of the PRA. In the NOPR, the 

Commission sought comments on the Commission’s need for this information, whether 

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

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

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

automated information techniques. 

198. Our estimate below regarding the number of respondents is based on the NERC 

compliance registry as of April 2007 and NERC’s November 19, 2007 Petition that is the 

subject of this proceeding. In its Petition, NERC states that 104 nuclear power plants are 

subject to the proposed Reliability Standard. These plants are run by approximately 30 

different utilities and are located on 65 different sites. Each plant must contract with 

transmission entities to obtain off-site power, and coordinate distribution and 

transmission services for such power. 
Docket No. RM08-3-000 - 96 - 

199. The Nuclear Reliability Standard identifies 11 categories of functional entities that 

could be a transmission entity when providing covered services, including transmission 

operators, transmission owners, transmission planners, transmission service providers, 

balancing authorities, reliability coordinators, planning authorities, distribution providers, 

load-serving entities, generator owners and generator operators. NERC’s compliance 

registry indicates that there is a significant amount of overlap among the entities that 

perform these functions. Therefore, in some instances, a single entity may be registered 

under several of these functions. The November 19, 2007 Petition includes NERC 

drafting team comments which report, “In many cases, agreements are not two-party 

[agreements] – they are often multi-party agreements involving RTO/ISO Protocols, 

transmission and generation owners and others.”99 Therefore, this analysis attempts to 

account for the overlap of services to be provided by entities responsible for the various 

roles identified in the Reliability Standard, as well as the fact that certain plants may need 

to coordinate with multiple entities. 

200. Under NUC-001-1, the 104 nuclear power plants must coordinate with off-site 

power suppliers and related transmission and/or distribution service providers. NUC001-1 drafting team reports in its responses to SAR comments, “Nuclear plant generators 

and most nuclear offsite power supplies interconnect with the bulk electric system at 

 99 NERC Nuclear Reliability Standard drafting team, “Consideration of 

Comments, Draft 2 – SAR on Nuclear Plant Offsite Power Reliability” at 2 (May 23, 

2005), filed in November 19, 2007 Petition, Exh. B, Record of Development of Proposed 

Reliability Standard. 
Docket No. RM08-3-000 - 97 - 

transmission system voltage levels. While backup station service for some plants may be 

provided via distribution lines, these cases are the exception, not the rule.”100 Assuming 

conservatively, that not more than half of the nuclear power plants call for multi-party 

coordination and those that do involve all the types of parties listed by the drafting team, 

the Commission estimates that 52 nuclear power plants will execute bi-lateral interface 

agreements and 52 nuclear power plants will execute multi-lateral interface agreements 

with approximately four other parties. Thus, the Commission estimates that the 104 

nuclear power plants will enter into agreements with an additional 260 parties to bilateral 

and multi-party agreements, providing 364 as the total number of entities required to 

comply with the information “reporting” or development requirements of the Nuclear 

Reliability Standard.101 

 100 NERC Nuclear Reliability Standard drafting team, “Consideration of 

Comments on 2nd Draft of Nuclear Off-site Power Supply Standard” at 54 (Feb. 7, 

2007), filed in November 19, 2007 Petition, Exh. B, Record of Development of Proposed 

Reliability Standard. 

101 Because it is assumed that each plant operator must ensure that appropriate 

agreements are in place for each plant, this analysis assesses the workload by measuring 

the work for 104 plants, rather than for the 30 nuclear plant operators. 
Docket No. RM08-3-000 - 98 - 

201. Burden Estimate: The Public Reporting burden for the requirements contained in 

the Final Rule is as follows: 

Data Collection No. of 

Respondents 

No. of 

Responses 

Hours Per 

Respondent 

Total Annual 

Hours 

FERC-725F

Reporting: 

80 

Reporting: 

8,320 

Nuclear Plant 

Owners or 

Operators 

104 1 

Recordkeeping: 

40 

Recordkeeping: 

4,160 

Reporting: 

80 

Reporting: 

10,400 

Investor-Owned 

Utilities 

130 1 

Recordkeeping: 

40 

Recordkeeping: 

5,200 

Reporting: 

80 

Reporting: 

10,400 

Large 

Municipals, 

Cooperatives 

and other 

agencies 

130 1 

Recordkeeping: 

40 

Recordkeeping: 

5,200 

Total 364 43,680 

Total Hours: (Reporting 29,120 hours + Recordkeeping 14,560 hours) = 43,680 hours. 

(FTE=Full Time Equivalent or 2,080 hours) 

Total Annual hours for Collection: Reporting + Recordkeeping = 43,680 hours. 

Information Collection Costs: The Commission finds the average annualized cost to be 

the total annual hours (Reporting) 29,120 times $120 = $3,494,400. 

Recordkeeping = @ $40/hour = $ 582,400, with labor calculated as file/record 

clerk @ $17 an hour + supervisory @ $23 an hour. 

Total costs = $4,076,800. 
Docket No. RM08-3-000 - 99 - 

The Commission believes that this estimate may be conservative because most if not all 

of the applicable entities currently have agreements in place to provide for coordination 

between a nuclear plant generator operator and its local transmission, distribution and 

off-site power suppliers. Furthermore, multiple plants are located on certain sites, and 

one entity may operate multiple plants, providing for potential economies in updating, 

drafting and executing the interface agreements. 

Title: FERC-725F, Mandatory Reliability Standard for Nuclear Plant Interface 

Coordination 

Action: Final Rule. 

OMB Control No: [To be determined.]

Respondents: Business or other for profit, and/or not for profit institutions. 

Frequency of Responses: One time to initially comply with the rule, and then on 

occasion as needed to revise or modify. In addition, annual and three-year selfcertification requirements will apply. 

Necessity of the Information: NUC-001-1, implements the Congressional mandate of the 

Energy Policy Act of 2005 to develop mandatory and enforceable Reliability Standards to 

better ensure the reliability of the nation’s Bulk-Power System. Specifically, the Nuclear 

Reliability Standard will ensure that system operating limits or SOLs used in the 

reliability planning and operation of the Bulk-Power System are coordinated with nuclear 

licensing requirements in order to ensure the safe operation and shut down of nuclear 

power plants. 
Docket No. RM08-3-000 - 100 - 

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

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

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

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

information collection, communication and management within the energy industry. The 

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

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

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

contacting: 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]. Comments on 

the requirements of the Final Rule may also be sent to the Office of Information and 

Regulatory Affairs, Office of Management and Budget, Washington, D.C. 20503 

[Attention: Desk Officer for the Federal Energy Regulatory Commission], e-mail: 

oira_submission@omb.eop.gov. 

IV. Environmental Analysis

203. 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 

 102 Order No. 486, Regulations Implementing the National Environmental Policy 

Act, 52 FR 47897 (Dec. 17, 1987), FERC Stats. and Regs. ¶ 30,783 (1987). 
Docket No. RM08-3-000 - 101 - 

actions from this requirement as not having a significant effect on the human 

environment. The actions proposed here fall within the categorical exclusion in the 

Commission's regulations for rules that are clarifying, corrective or procedural, for 

information gathering, analysis, and dissemination.103 Accordingly, neither an 

environmental impact statement nor environmental assessment is required. 

V. Regulatory Flexibility Act Analysis

204. The Regulatory Flexibility Act of 1980 (RFA)104 generally requires a description 

and analysis of Final Rules that will have significant economic impact on a substantial 

number of small entities. Most of the entities, i.e., planning authorities, reliability 

coordinators, transmission planners and transmission operators, to which the 

requirements of this rule would apply do not fall within the definition of small entities.105 

205. As indicated above, based on available information regarding NERC’s compliance 

registry, approximately 364 entities, including owners and operators of 104 nuclear 

power plants, will be responsible for compliance with the new Reliability Standard. It is 

estimated that one-third of the responsible entities, about 130 entities, would be 

municipal and cooperative organizations. In addition to generator owners and operators 

 103 18 CFR 380.4(a)(5). 

104 5 U.S.C. 601-12. 

105 The RFA definition of “small entity” refers to the definition provided in the 

Small Business Act, which defines a “small business concern” as a business that is 

independently owned and operated and that is not dominant in its field of operation. See

15 U.S.C. 632 (2006). According to the SBA, a small electric utility is defined as one 

that has a total electric output of less than four million MWh in the preceding year. 
Docket No. RM08-3-000 - 102 - 

and distribution service providers, the Nuclear Reliability Standard applies to planning 

authorities, transmission planners, transmission operators and reliability coordinators, 

which tend to be larger entities. Thus, the Commission believes that only a portion, 

approximately 30 to 40 of the municipal and cooperative organizations to which the 

Reliability Standard applies, qualify as small entities.106 The Commission does not 

consider this a substantial number of all municipal and cooperative organizations. 

Moreover, as discussed above, the Nuclear Reliability Standard will not be a burden on 

the industry since most if not all of the applicable entities currently coordinate operations 

and planning with nuclear plant generator operators and the Nuclear Reliability Standard 

will simply provide a common framework for agreements governing such coordination 

and many of the entities already have agreements in place to meet prior NRC 

requirements. 

206. Based on this understanding, the Commission certifies that this Final Rule will not 

have a significant economic impact on a substantial number of small entities. 

Accordingly, no regulatory flexibility analysis is required. 

 106 According to the DOE’s Energy Information Administration (EIA), there were 

3,284 electric utility companies in the United States in 2005, and 3,029 of these electric 

utilities qualify as small entities under the SBA definition. Among these 3,284 electric 

utility companies are: (1) 883 cooperatives of which 852 are small entity cooperatives; 

(2) 1,862 municipal utilities, of which 1842 are small entity municipal utilities; (3) 127 

political subdivisions, of which 114 are small entity political subdivisions; and (4) 219 

privately owned utilities, of which 104 could be considered small entity private utilities. 

See Energy Information Administration Database, Form EIA-861, Dept. of Energy 

(2005), available at http://www.eia.doe.gov/cneaf/electricity/page/eia861.html. 
Docket No. RM08-3-000 - 103 - 

VI. Document Availability

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

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

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

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

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

Washington, D.C. 20426. 

208. From FERC's Home Page on the Internet, this information is available on 

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

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

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

docket number field. 

209. User assistance is available for eLibrary and the FERC’s website 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 (202) 

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

public.referenceroom@ferc.gov. 

By the Commission. 

( S E A L ) 

Kimberly D. Bose, 

Secretary. 
Appendix A: RM08-3-000, Nuclear Reliability Standard - 104 - 

Note: This Appendix will not appear in the Federal Register. 

Comments on Notice of Proposed Rulemaking 

ABBREVIATION ENTITY 

Ameren Ameren Service Co. 

ATC+

 American Transmission Company LLC 

CenterPoint Energy CenterPoint Energy Houston Electric, LLC 

ConEdison Consolidated Edison of New York, Inc. 

Constellation Constellation Energy Group, Inc. 

Detroit Edison Detroit Edison Company 

Dominion Dominion Resources, Inc. 

Duke Duke Energy Corporation 

EEI Edison Electric Institute 

Entergy Entergy Services, Inc. 

Exelon Exelon Corporation 

ISO/RTO Council ISO/RTO Council 

International Transmission International Transmission Co., Michigan 

Electric Transmission Co., LLC and ITC 

Midwest 

Midwest ISO Midwest Independent Transmission System 

Operator, Inc. 

National Grid+

 National Grid USA 

NERC North American Electric Reliability Corp. 

NEI+

 Nuclear Energy Institute 

Ontario IESO and Hydro One Independent Electricity System Operator of 

Ontario and Hydro One Networks Inc. 

Ontario Power Ontario Power Generation Inc. 

SCE&G South Carolina Electric and Gas Company 

Southern Southern Company Services, Inc. 

TVA Tennessee Valley Authority 

Wisconsin Electric Wisconsin Electric Power Company 

+ Comments filed out-of-time