UNITED STATES OF AMERICA 

FEDERAL ENERGY REGULATORY COMMISSION 

18 CFR Part 358 

(Docket No. RM01-10-005) 

Standards of Conduct for Transmission Providers 

(Issued May 18, 2006) 

AGENCY: Federal Energy Regulatory Commission 

ACTION: Order on Request for Additional Clarification 

SUMMARY: The Federal Energy Regulatory Commission (Commission) is issuing this 

Order to clarify that, in the event of a grid disturbance, a Transmission Provider may 

communicate to an affiliated nuclear power plant specific information about transmission 

system conditions on a real-time basis. 

EFFECTIVE DATE: The Order on Request for Additional Clarification will become 

effective [insert date of publication in the FEDERAL REGISTER]. 

FOR FURTHER INFORMATION CONTACT: 

Mary Kipp 

Office of Enforcement 

Federal Energy Regulatory Commission 

888 First Street, NE 

Washington, D.C. 20426 

(202) 502-8228 

mary.kipp@ferc.gov 

SUPPLEMENTARY INFORMATION: 
UNITED STATES OF AMERICA 

FEDERAL ENERGY REGULATORY COMMISSION 

Before Commissioners: Joseph T. Kelliher, Chairman; 

 Nora Mead Brownell, and Suedeen G. Kelly. 

Standards of Conduct for Transmission Providers Docket No. RM01-10-005 

ORDER ON REQUEST FOR ADDITIONAL CLARIFICATION 

(Issued May 18, 2006) 

1. In this order, the Commission addresses the request seeking clarification of the 

Commission’s February 16, 2006 “Interpretive Order Relating to the Standards of 

Conduct” (Interpretive Order). 1 The Interpretive Order clarified that, subject to the noconduit rule, Transmission Providers may communicate with affiliated nuclear power 

plants regarding certain matters related to the safety and reliability of the transmission 

system, in order to comply with requirements of the Nuclear Regulatory Commission 

(NRC). For the reasons discussed herein, we grant the request for additional clarification. 

2. On March 20, 2006, Exelon Corporation (“Exelon”) filed comments and a request 

for clarification of the Interpretive Order. Specifically, Exelon requests that the 

Commission clarify that a Transmission Provider can provide its affiliated nuclear power 

plants (“NPPs”) with specific information concerning the location and nature of grid 

disturbances that potentially threaten the grid’s ability to provide power to a plant’s 

safety systems. On March 21, 2006, the Nuclear Energy Institute (“NEI”) filed 

 

1

 Interpretive Order Relating to the Standards of Conduct, 71 FR 9446 (Feb. 24, 

2006), FERC Stats. & Regs. ¶ 31,206 (2006). 
Docket No. RM01-10-005 2 

comments in support of Exelon’s position. In this order, the Commission clarifies that, in 

the event of a grid disturbance, a Transmission Provider may communicate to an 

affiliated NPP specific information about transmission system conditions on a real-time 

basis, including: (i) a technical description of the grid disturbance, along with its specific 

location on the system; (ii) the grid elements, whether lines, substations, or other 

elements, that may be affected by the disturbance, and their specific locations on the 

system; (iii) the projected duration of the disturbance; and (iv) steps being taken by the 

Transmission Provider to resolve the disturbance. This order benefits customers because 

it clarifies that Transmission Providers and NPPs may share information necessary to 

maintain the safety and reliability of the transmission grid while ensuring that there is no 

undue preference or services. 

I. Background

3. On November 25, 2003, the Commission issued a Final Rule adopting Standards 

of Conduct for Transmission Providers (Order No. 2004).2

 Under Order No. 2004, the 

Standards of Conduct govern the relationships between Transmission Providers and all of 

their Marketing Affiliates and Energy Affiliates. The Standards of Conduct also contain 

various information-sharing prohibitions to help ensure that Transmission Providers do 

 2

 Standards of Conduct for Transmission Providers, Order No. 2004, FERC Stats. 

& Regs., Regulations Preambles ¶ 31,155 (2003), order on reh’g, Order No. 2004-A, III 

FERC Stats. & Regs. ¶ 31,161 (2004), 107 FERC ¶ 61,032 (2004), order on reh’g, Order 

No. 2004-B, III FERC Stats. & Regs. ¶ 31,166 (2004), 108 FERC ¶ 61,118 (2004), order 

on reh’g, Order No. 2004-C, 109 FERC ¶ 61,325 (2004), order on reh’g, Order No. 2004-

D, 110 FERC ¶ 61,320 (2005), appeal docketed sub nom., National Gas Fuel Supply 

Corporation v. FERC, No. 04-1183 (D.C. Cir. June 9, 2004). 
Docket No. RM01-10-005 3 

not use their access to information about transmission to unfairly benefit their own or 

their affiliates’ sales to the detriment of competitive markets. Absent one of the 

exceptions articulated in section 358.5 of the Commission’s regulations, if a 

Transmission Provider discloses transmission information to its Marketing or Energy 

Affiliate, the Transmission Provider is required to immediately post that information on 

its OASIS or Internet website. 

4. On February 16, 2006, the Commission issued the Interpretive Order. The 

Interpretive Order clarified that sections 358.5(a) and (b) of the Commission’s 

regulations, 18 C.F.R. § 358.5(a) and (b) (2005), do not prohibit a Transmission Provider 

and its affiliated NPP from engaging in necessary communications related to the safety 

and reliability of the transmission system or the NPP, including information relating to 

the loss of or potential loss of transmission lines that provide off-site power to the NPP.3

 

The Commission issued the Interpretive Order to clarify that Transmission Providers may 

communicate with affiliated and non-affiliated NPPs to enable the NPPs to comply with 

the requirements of the NRC as described in the NRC’s February 1, 2006 Generic Letter 

2006-002, Grid Reliability and the Impact on Plant Risk and the Operability of Offsite 

Power (the “Generic Letter”).4

 The Commission also reemphasized that, although such 

communications are permitted, the NPP operator is prohibited from being a conduit for 

 

3

 Interpretive Order at P 1. 

4

 Id. referencing Nuclear Regulatory Commission’s Generic Letter 2006-002, 

Grid Reliability and the Impact on Plant Risk and the Operability of Offsite Power. 

February 1, 2006. OMB Control No.: 3150-0011. 
Docket No. RM01-10-005 4 

sharing this information with employees of other Marketing or Energy Affiliates. 

18 C.F.R. § 358.5(b)(7) (2005). 5 

5. Although no public notice or comment on the Interpretive Order was required 

pursuant to section 4(b)(A) of the Administrative Procedure Act, 5 U.S.C. § 533(b)(A) 

(2000), which exempts from such notice or comment “interpretive rules, general 

statements of policy or rules of agency organization, procedure or practice,” the 

Commission invited all interested persons to submit written comments.6

 Comments were 

due March 20, 2006. Reply comments were due on April 19, 2006. The Generic Letter 

and the Interpretive Order were also discussed at the first ever joint meeting of the 

Commission and the NRC held on April 24, 2006. 

6. Exelon filed timely comments in which it expresses agreement with the 

Commission that the clarifications set forth in the Interpretive Order will enhance safe 

operations at nuclear facilities. Exelon also requests that the Commission make 

additional clarifications. NEI filed comments in support of Exelon’s position. No other 

comments or reply comments were filed. 

7. Exelon argues that, while the Interpretive Order expressly held that Transmission 

Providers may communicate information on grid disturbances and the duration of power 

unavailability, the Interpretive Order only implicitly approved disclosure of the location 

and nature of the disturbance. Exelon asserts that such information clearly encompasses 

 

5

 Interpretive Order at P 6. 

6

 Id. at P 10. 
Docket No. RM01-10-005 5 

the “necessary communications related to safety or reliability that the Standards of 

Conduct are not intended to impede.” Thus, Exelon asks that the Commission further 

clarify that, subject to the no-conduit rule, a Transmission Provider may provide its 

affiliated NPPs with specific information concerning the location and nature of grid 

disturbances that potentially threaten the grid’s ability to provide power to a plant’s 

safety systems. 

8. Exelon asserts that grid conditions may not only interfere with NPP access to 

offsite power, but may also require the Transmission Provider to ask the NPP to take 

some action, such as reducing output or operating switchyard equipment. In addition, 

Exelon points out that grid conditions may involve actual system emergencies or 

transmission element outages that create contingencies. Finally, Exelon states that grid 

conditions that may impact an NPP may occur on transmission system elements directly 

connected to the NPP, on more remote elements on the Transmission Provider’s system, 

or even on elements in the system of another Transmission Provider. Exelon argues that 

under any and all such conditions, the NPP needs to know whether an affiliated 

Transmission Provider may disclose to an NPP specific information about transmission 

system conditions on a real-time basis, including: (i) a technical description of the grid 

disturbance, along with its specific location on the system; (ii) the grid elements, whether 

lines, substations, or other elements, that may be affected by the disturbance, and their 

specific locations on the system; (iii) the projected duration of the disturbance; and (iv) 

steps being taken by the Transmission Provider to resolve the disturbance. 
Docket No. RM01-10-005 6 

II. Commission Decision

9. In the Interpretive Order the Commission recognized that, in addition to permitting 

communications necessary to operate and maintain the transmission system, the 

Transmission Provider and its interconnected NPP must engage in certain limited 

communications to operate and maintain the interconnection and the safety and reliability 

of the NPP. 7 Consequently, the Commission clarified that permitted communications 

may include, inter alia, information on grid disturbances and the duration of power 

unavailability in order for the NPP to plan for off-site power in the event of a grid-related 

loss of power or station blackout, as required by the NRC.8

 

10. The Commission did not intend to restrict to generalized information the types of 

communications that comprise “information on grid disturbances and the duration of 

power unavailability” as used in the Interpretive Order. Rather, the Commission intends 

that, subject to the no conduit rule, Transmission Providers and their affiliated NPPs may 

communicate as necessary to preserve the safety and reliability of the grid, the 

interconnection, and the NPP. The Commission agrees with Exelon that it may be 

necessary for the Transmission Provider and the NPP to discuss specific technical 

information. 

11. Accordingly, the Commission specifically clarifies that “information on grid 

disturbances and the duration of power unavailability” as used in the Interpretive Order 

 7

 Id. at P 7. 

8

 Id. 
Docket No. RM01-10-005 7 

encompasses specific information about transmission system conditions on a real-time 

basis, including: (i) a technical description of the grid disturbance, along with its specific 

location on the system; (ii) the grid elements, whether lines, substations, or other 

elements, that may be affected by the disturbance, and their specific locations on the 

system; (iii) the projected duration of the disturbance; and (iv) steps being taken by the 

Transmission Provider to resolve the disturbance. 

III. Document Availability 

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

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

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

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

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

Washington, D.C. 20426. 

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

the Commission’s document management system, 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. 

14. User assistance is available for eLibrary and the Commission's website during 

normal business hours. For assistance, please contact FERC Online Support at 

1-866-208-3676 (toll free) or (202) 502-8222 (e-mail at 
Docket No. RM01-10-005 8 

FERCOnlineSupport@FERC.gov), or the Public Reference Room at (202) 502-8371, 

TTY (202) 502-8659 (e-mail at public.referenceroom@ferc.gov ). 

By the Commission. 

( S E A L ) 

Magalie R. Salas, 

Secretary.