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Reliability and Market Interface Principles 

Reliability Principles 

NERC Organization Standards are based on certain Reliability Principles that define the 

foundation of reliability for North American bulk electric systems. Each Organization Standard 

shall enable or support one or more of the Reliability Principles, thereby ensuring that each 

standard serves a purpose in support of reliability of the North American bulk electric systems. 

Each Organization Standard shall also be consistent with all of the Reliability Principles, thereby 

ensuring that no standard undermines reliability through an unintended consequence. 

Reliability Principle 1 — Interconnected bulk electric systems shall be planned and operated in 

a coordinated manner to perform reliably under normal and abnormal conditions as defined in 

the NERC Standards. 

Reliability Principle 2 — The frequency and voltage of interconnected bulk electric systems 

shall be controlled within defined limits through the balancing of real and reactive power supply 

and demand. 

Reliability Principle 3 — Information necessary for the planning and operation of 

interconnected bulk electric systems shall be made available to those entities responsible for 

planning and operating the systems reliably. 

Reliability Principle 4 — Plans for emergency operation and system restoration of 

interconnected bulk electric systems shall be developed, coordinated, maintained and 

implemented. 

Reliability Principle 5 — Facilities for communication, monitoring, and control shall be 

provided, used, and maintained for the reliability of interconnected bulk electric systems. 

Reliability Principle 6 — Personnel responsible for planning and operating interconnected bulk 

electric systems shall be trained, qualified, and have the responsibility and authority to 

implement actions. 

Reliability Principle 7 — The security of the interconnected bulk electric systems shall be 

assessed, monitored, and maintained on a wide-area basis. 

Market Interface Principles 

Recognizing that bulk electric system reliability and electricity markets are inseparable and 

mutually interdependent, all Organization Standards shall be consistent with the Market Interface 

Principles. Consideration of the Market Interface Principles is intended to assure Organization 

Standards are written such that they achieve their reliability objective without causing undue 

restrictions or adverse impacts on competitive electricity markets. 
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Market Interface Principle 1 — The planning and operation of bulk electric systems shall 

recognize that reliability is an essential requirement of a robust North American economy. 

Market Interface Principle 2 — An Organization Standard shall not give any market 

participant an unfair competitive advantage. 

Market Interface Principle 3 — An Organization Standard shall neither mandate nor prohibit 

any specific market structure. 

Market Interface Principle 4 — An Organization Standard shall not preclude market solutions 

to achieving compliance with that standard. 

Market Interface Principle 5 — An Organization Standard shall not require the public 

disclosure of commercially sensitive information. All market participants shall have equal 

opportunity to access commercially non-sensitive information that is required for compliance 

with reliability standards.