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[Federal Register Volume 77, Number 29 (Monday, February 13, 2012)]
[Rules and Regulations]
[Pages 7526-7531]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-3272]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

18 CFR Part 40

[Docket No. RM10-5-000; Order No. 758]

Interpretation of Protection System Reliability Standard

AGENCY: Federal Energy Regulatory Commission.

ACTION: Final rule.

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SUMMARY: On November 17, 2009, the North American Electric Reliability 
Corporation (NERC) submitted a petition (Petition) requesting approval 
of NERC's interpretation of Requirement R1 of Commission-approved 
Reliability Standard PRC-005-1 (Transmission and Generation Protection 
System Maintenance and Testing). On December 16, 2010, the Commission 
issued a Notice of Proposed Rulemaking (NOPR). In the NOPR, the 
Commission proposed to accept the NERC proposed interpretation of 
Requirement R1 of Reliability Standard PRC-005-1, and proposed to 
direct NERC to develop modifications to the PRC-005-1 Reliability 
Standard through its Reliability Standards development process to 
address gaps in the Protection System maintenance and testing standard 
that were highlighted by the proposed interpretation. As a result of 
the comments received in response to the NOPR, in this order the 
Commission adopts the NOPR proposal to accept NERC's proposed 
interpretation. In addition, as discussed below, the Commission 
accepts, in part, NERC's commitment to address the concerns in the 
Protection System maintenance and testing standard that were identified 
by the NOPR within the Reliability Standards development process, and 
directs, in part, that the concerns identified by the NOPR with regard 
to reclosing relays be addressed within the reinitiated PRC-005 
revisions.

DATES: Effective Date: This rule will become effective March 14, 2012.

FOR FURTHER INFORMATION CONTACT: 

Ron LeComte (Legal Information), Office of General Counsel, Federal 
Energy Regulatory Commission, 888 First Street NE., Washington, DC 
20426, (202) 502-8405, [email protected].
Danny Johnson (Technical Information), Office of Electric Reliability, 
Federal Energy Regulatory Commission, 888 First Street NE., Washington, 
DC 20426, (202) 502-8892, [email protected].

SUPPLEMENTARY INFORMATION:
Before Commissioners: Jon Wellinghoff, Chairman; Philip D. Moeller, 
John R. Norris, and Cheryl A. LaFleur.

Final Rule (Issued February 3, 2012.)

    1. On November 17, 2009, NERC submitted the Petition requesting 
approval of NERC's interpretation of Requirement R1 of Commission-
approved Reliability Standard PRC-005-1 (Transmission and Generation 
Protection System Maintenance and Testing). NERC developed the 
interpretation in response to a request for interpretation submitted to 
NERC by the Regional Entities Compliance Monitoring Processes Working 
Group (Working Group).\1\ In a December 16, 2010 Notice of Proposed 
Rulemaking (NOPR),\2\ the Commission proposed to accept the NERC 
proposed interpretation of Requirement R1 of Reliability Standard PRC-
005-1, and proposed to direct NERC to develop modifications to the PRC-
005-1 Reliability Standard through its Reliability Standards 
development process to address gaps in the Protection System 
maintenance and testing standard highlighted by the proposed 
interpretation. As a result of the comments received in response to the 
NOPR, in this order the Commission adopts the NOPR proposal to accept 
NERC's proposed interpretation. In addition, the Commission accepts, in 
part, NERC's commitments to address the concerns in the Protection 
System maintenance and testing standard that were identified by the 
NOPR within the Reliability Standards development process, and directs, 
in part, that the concerns identified by the NOPR with regard to 
reclosing relays be addressed within the reinitiated PRC-005 revisions.
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    \1\ The Working Group is a subcommittee of the Regional Entity 
Management Group which consists of the executive management of the 
eight Regional Entities.
    \2\ Interpretation of Protection System Reliability Standard, 
Notice of Proposed Rule Making, 75 FR 81,152 (Dec. 27, 2010), FERC 
Stats. & Regs. ] 32,669 (2010).
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I. Background

    2. Section 215 of the Federal Power Act (FPA) requires a 
Commission-certified Electric Reliability Organization (ERO) to develop 
mandatory and enforceable Reliability Standards, which are subject to 
Commission review and approval.\3\ Specifically, the Commission may 
approve, by rule or order, a proposed Reliability Standard or 
modification to a Reliability Standard if it determines that the 
Standard is just, reasonable, not unduly discriminatory or 
preferential, and in the public interest.\4\ Once approved, the 
Reliability Standards may be enforced by the ERO, subject to Commission 
oversight, or by the Commission independently.\5\
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    \3\ 16 U.S.C. 824 (2006).
    \4\ Id. 824o(d)(2).
    \5\ Id. 824o(e)(3).
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    3. Pursuant to section 215 of the FPA, the Commission established a 
process to select and certify an ERO,\6\ and subsequently certified 
NERC.\7\ On April 4, 2006, NERC submitted to the Commission a petition 
seeking approval of 107 proposed Reliability Standards. On March 16, 
2007, the Commission issued a Final Rule, Order No. 693,\8\ approving 
83 of the 107 Reliability Standards, including Reliability

[[Page 7527]]

Standard PRC-005-1. In addition, pursuant to section 215(d)(5) of the 
FPA,\9\ the Commission directed NERC to develop modifications to 56 of 
the 83 approved Reliability Standards, including PRC-005-0.\10\
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    \6\ Rules Concerning Certification of the Electric Reliability 
Organization; and Procedures for the Establishment, Approval, and 
Enforcement of Electric Reliability Standards, Order No. 672, FERC 
Stats. & Regs. ] 31,204, order on reh'g, Order No. 672-A, FERC 
Stats. & Regs. ] 31,212 (2006).
    \7\ North American Electric Reliability Corp., 116 FERC 
 61,062, order on reh'g & compliance, 117 FERC ] 61,126 
(2006), aff'd sub nom. Alcoa, Inc. v. FERC, 564 F.3d 1342 (D.C. Cir. 
2009).
    \8\ Mandatory Reliability Standards for the Bulk-Power System, 
Order No. 693, FERC Stats. & Regs. ] 31,242, order on reh'g, Order 
No. 693-A, 120 FERC ] 61,053 (2007).
    \9\ 16 U.S.C. 824o(d)(5).
    \10\ Order No. 693, FERC Stats. & Regs. ] 31,242 at P 1475.
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    4. NERC's Rules of Procedure provide that a person that is 
``directly and materially affected'' by Bulk-Power System reliability 
may request an interpretation of a Reliability Standard.\11\ In 
response, the ERO will assemble a team with relevant expertise to 
address the requested interpretation and also form a ballot pool. 
NERC's Rules of Procedure provide that, within 45 days, the team will 
draft an interpretation of the Reliability Standard and submit it to 
the ballot pool. If approved by the ballot pool and subsequently by the 
NERC Board of Trustees (Board), the interpretation is appended to the 
Reliability Standard and filed with the applicable regulatory 
authorities for approval.
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    \11\ NERC Rules of Procedure, Appendix 3A, Reliability Standards 
Development Procedure, Version 6.1, at 26-27 (2007).
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II. Reliability Standard PRC-005-1

    5. The purpose of PRC-005-1 is to ``ensure all transmission and 
generation Protection Systems affecting the reliability of the Bulk 
Electric System (BES) are maintained and tested.'' In particular, 
Requirement R1, requires that:
    R1. Each Transmission Owner and any Distribution Provider that owns 
a transmission Protection System and each Generator Owner that owns a 
generation Protection System shall have a Protection System maintenance 
and testing program for Protection Systems that affect the reliability 
of the BES. The program shall include:
    R1.1. Maintenance and testing intervals and their basis.
    R1.2. Summary of maintenance and testing procedures.
    6. NERC currently defines ``Protection System'' as follows: 
``Protective relays, associated communication systems, voltage and 
current sensing devices, station batteries and DC control circuitry.'' 
\12\
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    \12\ In Docket No. RD11-13-000, NERC has proposed to revise the 
definition of Protection System effective on the first day of the 
first calendar quarter twelve months from approval. The Commission 
is approving this revision in an order issued concurrently with this 
order. See North American Electric Reliability Corp., 138 FERC ] 
61,095 (2012).
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III. NERC Proposed Interpretation

    7. In the NERC Petition, NERC explains that it received a request 
from the Working Group for an interpretation of Reliability Standard 
PRC-005-1, Requirement R1, addressing five specific questions. 
Specifically, the Working Group questions and NERC proposed 
interpretations include:
    Request 1: ``Does R1 require a maintenance and testing program for 
the battery chargers for the `station batteries' that are considered 
part of the Protection System?''
    Response: ``While battery chargers are vital for ensuring `station 
batteries' are available to support Protection System functions, they 
are not identified within the definition of `Protection Systems.' 
Therefore, PRC-005-1 does not currently require maintenance and testing 
of battery chargers.'' \13\
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    \13\ The revised definition of Protection System accepted in 
Docket No. RD11-13-000 includes battery chargers as an element of 
the Protection System and, as a result of that change, battery 
chargers must be maintained and tested. Thus, the modified 
definition of Protection System approved in Docket No. RD11-13-000, 
when effective, shall supersede the interpretation of Requirement R1 
of Reliability Standard PRC-005-1 approved in this order.
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    Request 2: ``Does R1 require a maintenance and testing program for 
auxiliary relays and sensing devices? If so, what types of auxiliary 
relays and sensing devices? (i.e., transformer sudden pressure 
relays).''
    Response: ``The existing definition of `Protection System' does not 
include auxiliary relays; therefore, maintenance and testing of such 
devices is not explicitly required. Maintenance and testing of such 
devices is addressed to the degree that an entity's maintenance and 
testing program for DC control circuits involves maintenance and 
testing of imbedded auxiliary relays. Maintenance and testing of 
devices that respond to quantities other than electrical quantities 
(for example, sudden pressure relays) are not included within 
Requirement R1.''
    Request 3: ``Does R1 require maintenance and testing of 
transmission line re-closing relays?''
    Response: ``No. `Protective Relays' refer to devices that detect 
and take action for abnormal conditions. Automatic restoration of 
transmission lines is not a `protective' function.''
    Request 4: ``Does R1 require a maintenance and testing program for 
the DC circuitry that is just the circuitry with relays and devices 
that control actions on breakers, etc., or does R1 require a program 
for the entire circuit from the battery charger to the relays to 
circuit breakers and all associated wiring?''
    Response: ``PRC-005-1 requires that entities (1) address DC control 
circuitry within their program, (2) have a basis for the way they 
address this item, and (3) execute the program. Specific additional 
requirements relative to the scope and/or methods are not 
established.''
    Request 5: ``For R1, what are examples of `associated 
communications systems' that are part of `Protection Systems' that 
require a maintenance and testing program?''
    Response: `` `Associated communication systems' refer to 
communication systems used to convey essential Protection System 
tripping logic, sometimes referred to as pilot relaying or 
teleprotection. Examples include the following:

--Communications equipment involved in power-line-carrier relaying;
--Communications equipment involved in various types of permissive 
protection system applications;
--Direct transfer-trip systems;
--Digital communication systems * * *.''
    8. In its Petition requesting that the Commission accept the 
proposed interpretation, NERC recognized that greater clarity to the 
requirement language in PRC-005-1a is necessary to provide a complete 
framework for maintenance and testing of equipment necessary to ensure 
the reliability of the Bulk Power System. In its Petition, NERC also 
stated that this activity is already underway in the scope of Project 
2007-17--Protection System Maintenance and Testing, coupled with the 
revised definition of Protection System.

IV. Commission NOPR

    9. In the NOPR, the Commission proposed to accept the NERC proposed 
interpretation of Requirement R1 of Reliability Standard PRC-005-1. In 
addition, the Commission proposed to direct NERC to develop 
modifications to the PRC-005-1 Reliability Standard through its 
Reliability Standards development process to address gaps in the 
Protection System maintenance and testing standard that were 
highlighted by the proposed interpretation. The specific modifications 
are discussed below.

V. Comments

    10. Comments on the Commission's proposed interpretation were 
received by the NERC, Edison Electric Institute (EEI), ISO/RTO Council 
(IRC), American Public Power Association (APPA), National Rural 
Electric Cooperative Association (NRECA), Transmission Access Policy 
Study Group (TAPS), Cities of Anaheim and Riverside, California (Joint 
Cities), Northwest

[[Page 7528]]

Commenters,\14\ International Transmission Company (ITC), PSEG 
Companies,\15\ and MidAmerican Energy Holdings Company (MidAmerican), 
Constellation/CENG,\16\ and Manitoba Hydro (Manitoba). In general, 
commenters support NERC's proposed interpretation, and oppose the 
further directives in the NOPR. Commenters also state that 
modifications to the Reliability Standards should be addressed within 
the NERC standards development process and that certain of the 
modifications are currently being addressed.
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    \14\ Lincoln People's Utility District, Columbia River People's 
Utility District, Inland Power and Light Company, Northwest Public 
Power Association, Northwest Requirements Utilities, Pacific 
Northwest Generating Cooperative, Public Power Council, Public 
Utility District No. 1 of Snohomish County, and Tillamook People's 
Utility District.
    \15\ Public Service Electric and Gas Company, PSEG Fossil LLC, 
and PSEG Nuclear LLC.
    \16\ Constellation Energy Group, Inc., Baltimore Gas & Electric 
Company, Constellation Energy Commodities Group, Inc., Constellation 
Energy Control and Dispatch, LLC, Constellation NewEnergy, Inc., and 
Constellation Power Source Generation, Inc. (together, 
Constellation) and Constellation Energy Nuclear Group, LLC (CENG).
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VI. Discussion

    11. As a result of the comments received in response to the 
proposal, the Commission adopts the NOPR proposal to accept NERC's 
proposed interpretation. As discussed below, \17\ the Commission 
accepts, in part, NERC's commitments to address the concerns in the 
Protection System maintenance and testing standard that were identified 
by the NOPR within the Reliability Standards development process, and 
directs, in part, that the concerns identified by the NOPR with regard 
to reclosing relays be addressed within the reinitiated PRC-005 
revisions.
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    \17\ See infra, P 15, P 18, P 20.
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A. Maintenance and Testing of Auxiliary and Non-Electrical Sensing 
Relays

    12. In the NOPR, the Commission noted a concern that the proposed 
interpretation may not include all components that serve in some 
protective capacity.\18\ The Commission's concerns included the 
proposed interpretation's exclusion of auxiliary and non-electrical 
sensing relays. The Commission proposed to direct NERC to develop a 
modification to the Reliability Standard to include any component or 
device that is designed to detect defective lines or apparatuses or 
other power system conditions of an abnormal or dangerous nature, 
including devices designed to sense or take action against any abnormal 
system condition that will affect reliable operation, and to initiate 
appropriate control circuit actions.
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    \18\ NOPR at P 11-14.
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    13. In their comments NERC, EEI, Joint Cities, Manitoba, NRECA, 
ITC, MidAmerican, and PSEG expressed varying levels of disagreement 
with the NOPR's proposed directive. The disagreements are based on a 
concern that the proposed directive will create an increase in scope 
that will capture many items not used in BES protection. NERC is 
concerned the scope of this proposed directive is so broad that any 
device that is installed on the Bulk-Power System to monitor conditions 
in any fashion may be included.\19\ NERC states that many of these 
devices are advisory in nature and should not be reflected within NERC 
Reliability Standards if they do not serve a necessary reliability 
purpose.\20\ NERC does not believe it is necessary for the Commission 
to issue a directive to address this issue. Instead, NERC proposes to 
develop, either independently or in association with other technical 
organizations such as IEEE, one or more technical documents which:
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    \19\ NERC February 25, 2011 Comments at 7.
    \20\ Id.
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    1. Describe the devices and functions (to include sudden pressure 
relays which trip for fault conditions) that should address FERC's 
concern; and
    2. Propose minimum maintenance activities for such devices and 
maximum maintenance intervals, including the technical basis for 
each.\21\
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    \21\ Id.
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    14. NERC states that these technical documents will address those 
protective relays that are necessary for the reliable operation of the 
Bulk-Power System and will allow for differentiation between protective 
relays that detect faults from other devices that monitor the health of 
the individual equipment and are advisory in nature (e.g., oil 
temperature). Following development of the above-referenced 
document(s), NERC states that it will ``propose a new or revised 
standard (e.g. PRC-005) using the NERC Reliability Standards 
development process to include maintenance of such devices, including 
establishment of minimum maintenance activities and maximum maintenance 
intervals.'' \22\ Accordingly, NERC proposes to ``add this issue to the 
Reliability Standards issues database for inclusion in the list of 
issues to address the next time the PRC-005 standard is revised.'' \23\
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    \22\ Id.
    \23\ Id.
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    15. The Commission accepts NERC's proposal, and directs NERC to 
file, within sixty days of publication of this Final Rule, a schedule 
for informational purposes regarding the development of the technical 
documents referenced above, including the identification of devices 
that are designed to sense or take action against any abnormal system 
condition that will affect reliable operation. NERC shall include in 
the informational filing a schedule for the development of the changes 
to the standard that NERC stated it would propose as a result of the 
above-referenced documents.\24\ NERC should update its schedule when it 
files its annual work plan.
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    \24\ Id. at 7, 8.
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B. Reclosing Relays

    16. In the NOPR, the Commission noted that while a reclosing relay 
is not identified as a specific component of the Protection System, if 
it either is used in coordination with a Protection System to achieve 
or meet system performance requirements established in other 
Commission-approved Reliability Standards, or can exacerbate fault 
conditions when not properly maintained and coordinated, then excluding 
the maintenance and testing of these reclosing relays will result in a 
gap in the maintenance and testing of relays affecting the reliability 
of the Bulk-Power System.\25\ Accordingly, the Commission proposed that 
NERC modify the Reliability Standard to include the maintenance and 
testing of reclosing relays affecting the reliability of the Bulk-Power 
System.
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    \25\ NOPR at P 15.
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    17. NERC, EEI, IRC, ITC MidAmerican, NRECA, and PSEG opposed the 
NOPR's directive to include reclosing relays. In general, commenters 
state that reclosing relays used for stability purposes are already 
included in maintenance and testing programs, and that reclosing relays 
that are primarily used to minimize customer outages times and maximize 
availability of system components should not be included. PSEG and 
MidAmerican contend that the NERC standards development process should 
be utilized to determine the maintenance and testing of those reclosing 
relays that affect the reliability of the Bulk-Power System.
    18. ISO/RTO contends that the primary purpose of reclosing relays 
is to allow more expeditious restoration of lost components of the 
system, not to maintain the reliability of the Bulk-Power System. 
Therefore, ISO/RTO maintains that automatic reclosing

[[Page 7529]]

relays should not be subject to the NERC Reliability Standard for relay 
maintenance and testing. MidAmerican states that there are only limited 
circumstances when a reclosing relay can actually affect the 
reliability of the Bulk-Power System. MidAmerican contends that it 
would be overbroad for the Commission to direct a modification to the 
standard that encompasses all reclosing relays that can ``exacerbate 
fault conditions when not properly maintained and coordinated,'' as 
this would improperly include many types of reclosing relays that do 
not necessarily affect the reliability of the Bulk-Power System.
    19. ITC agrees with the Commission's proposal that reclosing relays 
that are required for system stability should be maintained and tested 
under Requirement R1 of PRC-005-1. However, ITC contends that since 
most bulk electric system automatic reclosing relay systems are applied 
to minimize customer outage times and to maximize availability of 
system components, only some ``high speed'' reclosing relays will 
affect the reliability of the Bulk-Power System. Therefore, ITC 
proposes that the Commission should direct NERC to draft specific 
requirements or selection criteria that should be used in identifying 
the types of re-closing relays for maintenance and testing under 
Requirement R1 of PRC-005-1.\26\
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    \26\ ITC Comments at 7.
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    20. While NRECA notes that reclosing relays operate to restore, not 
protect a system, NRECA also notes that there are reclosing schemes 
that directly affect and are required for automatic stability control 
of the system, but that such schemes are already covered under Special 
Protection Schemes that are subject to reliability standards. NRECA, 
notes that some transmission operators do not allow reclosing relays on 
the bulk power system to remove the possibility of reclosing in on a 
permanent fault, thus avoiding further potential damage to the bulk 
power system.\27\
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    \27\ NRECA Comments at 13-14.
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    21. Similarly, NERC comments that in most cases reclosing relays 
cannot be relied on to meet system performance requirements because of 
the need to consider the impact of auto-reclosing into a permanent 
fault; however, NERC states that applications that may exist in which 
automatic restoration is used to meet system performance requirements 
following temporary faults. NERC comments that where reclosing relays 
are applied to meet performance requirements in approved NERC 
Reliability Standards, or where automatic restoration of service is 
fundamental to derivation of an Interconnection Reliability Operating 
Limit (IROL), it is reasonable to require maintenance and testing of 
auto-reclosing relays.\28\ However, NERC does not believe it is 
necessary for the Commission to issue a directive.\29\ NERC states that 
the proposed revisions to Reliability Standard PRC-005-1 that are under 
development include maintenance of reclosing devices that are part of 
Special Protection Systems.\30\ NERC proposes ``to add the remaining 
concerns relating to this issue to the Reliability Standards issues 
database for inclusion in the list of issues to address the next time 
Reliability Standard PRC-005 is revised.'' \31\
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    \28\ NERC February 25, 2011 Comments at 9.
    \29\ TAPs urges the Commission to use its authority pursuant to 
section 215(d)(5) in circumstances where there is a clear need for 
such a directive.
    \30\ Id.
    \31\ Id.
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    22. As NERC and other commenters point out, reclosing relays are 
used in a broad range of applications; e.g., meet system performance 
requirements in approved Reliability Standards, derivation of IROLs, 
maintain system stability, minimize customer outage times, to maximize 
availability of system components, etc. While commenters acknowledge 
that reclosing relays have several applications, commenters also appear 
to be divided on which applications, if any, should be included in a 
maintenance and testing program.
    23. The NOPR raised a concern that excluding the maintenance and 
testing of reclosing relays that can exacerbate fault conditions when 
not properly maintained and coordinated will result in a gap affecting 
Bulk-Power System reliability.\32\ We agree with MidAmerican that while 
there are only limited circumstances when a reclosing relay can 
actually affect the reliability of the Bulk-Power System, there are 
some reclosing relays, e.g., whose failure to operate or that 
misoperate during an event due to lack of maintenance and testing, may 
negatively impact the reliability of the Bulk-Power System.\33\ We 
agree with NERC that where reclosing relays are applied to meet 
performance requirements in approved NERC Reliability Standards, or 
where automatic restoration of service is fundamental to derivation of 
an Interconnection Reliability Operating Limit (IROL), it is reasonable 
to require maintenance and testing of auto-reclosing relays.
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    \32\ NOPR at P 15, noting one such outage resulting in the loss 
of over 4,000 MW of generation and multiple 765 kV lines.
    \33\ MidAmerican Comments at 6.
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    24. In the NOPR we stated that a misoperating or miscoordinated 
reclosing relay may result in the reclosure of a Bulk-Power System 
element back onto a fault or that a misoperating or miscoordinated 
reclosing relay may fail to operate after a fault has been cleared, 
thus failing to restore the element to service. As a result, the 
reliability of the Bulk-Power System would be affected. In addition, 
misoperated or miscoordinated relays may result in damage to the Bulk-
Power System. For example, a misoperation or miscoordination of a 
reclosing relay causing the reclosing of Bulk-Power System facilities 
into a permanent fault can subject generators to excessive shaft 
torques and winding stresses and expose circuit breakers to systems 
conditions less than optimal for correct operation, potentially 
damaging the circuit breaker.\34\
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    \34\ NERC System Protection and Control Subcommittee, 
``Advantages and Disadvantages of EHV Automatic Reclosing, 
``December 9, 2009, p. 14.
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    25. While some commenters argue that reclosing relays do not affect 
the reliability of the Bulk-Power System, the record supports our 
concern. For example, we note NERC's concern regarding the ``* * * need 
to consider the impact of autoreclosing into a permanent fault.'' We 
also note NRECA's comments that ``* * * some transmission operators do 
not allow reclosing on the bulk electric system facilities to remove 
the opportunity of closing in on a permanent fault'' and ``* * * by its 
[automatic reclosing] use a utility understands the potential for 
further damage that may occur by reclosing.'' \35\ Because the 
misoperation or miscommunication of reclosing relays can exacerbate 
fault conditions, we find that reclosing relays that may affect the 
reliability of the Bulk-Power System should be maintained and 
tested.\36\
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    \35\ NRECA Comments at 13.
    \36\ As NERC notes, there may be applications of reclosing 
relays where the misoperation or miscommunication may does not have 
a detrimental effect on the reliability of the Bulk-Power System.
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    26. For the reasons discussed above, we conclude that it is 
important to maintain and test reclosing relays that may affect the 
reliability of the Bulk-Power System. We agree with ITC that specific 
requirements or selection criteria should be used to identify reclosing 
relays that affect the reliability of the Bulk-Power System. As 
MidAmerican suggests, the standard should be modified, through the

[[Page 7530]]

Reliability Standards development process, to provide the Transmission 
Owner, Generator Owner, and Distribution Provider with the discretion 
to include in a Protection System maintenance and testing program only 
those reclosing relays that the entity identifies as having an affect 
on the reliability of the Bulk-Power System.
    27. We note that the original project to revise Reliability 
Standard PRC-005 failed a recirculation ballot in July of 2011. The 
project was subsequently reinitiated to continue the efforts to develop 
Reliability Standard PRC-005-2. Given that the project to draft 
proposed revisions to Reliability Standard PRC-005-1 continues in this 
reinitiated effort, and the importance of maintaining and testing 
reclosing relays, we direct NERC to include maintenance and testing of 
reclosing relays that can affect the reliable operation of the Bulk-
Power System, as discussed above, within these reinitiated efforts to 
revise Reliability Standard PRC-005.\37\
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    \37\ On December 13, 2011, NERC submitted its Standards 
Development Plan for 2012-2014. NERC estimates that Project 2007-17 
will be completed in the second quarter of 2012. By July 30, 2012, 
NERC should submit to the Commission either the completed project 
which addresses the remaining issues consistent with this order, or 
an informational filing that provides a schedule for how NERC will 
address such issues in the Project 2007-17 reinitiated efforts.
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C. DC Control Circuitry and Components

    28. In the NOPR, the Commission explained its understanding that a 
maintenance and testing program for DC control circuitry would include 
all components of DC control circuitry necessary for ensuring Reliable 
Operation of the Bulk-Power System, and that not establishing the 
specific requirements of such a maintenance and testing program results 
in a gap in the maintenance and testing of Protection System 
components.\38\
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    \38\ NOPR at P 16.
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    29. Joint Cities, MidAmerican, and NRECA expressed concern that the 
NOPR's directive is too broad and unnecessarily burdensome. NERC agrees 
that maintenance and testing should be required for all DC control 
circuitry.\39\ NERC further stated that draft standard PRC-005-2 being 
developed in Project 2007-17 ``includes extensive, specific maintenance 
activities (with maximum maintenance intervals) related to the DC 
control circuits.'' \40\ The Commission accepts NERC's commitment to 
include the development of specific requirements of such a maintenance 
and testing program described above in Project 2007-17.\41\
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    \39\ NERC February 25, 2011 Comments at 10.
    \40\ Id.
    \41\ As previously noted, NERC estimates that Project 2007-17 
will be completed by the second quarter of 2012. By July 30, 2012, 
NERC should submit to the Commission either the completed project 
which addresses the remaining issues consistent with this order, or 
an informational filing that provides a schedule for how NERC will 
address such issues in the Project 2007-17 reinitiated efforts.
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VII. Information Collection Statement

    30. The Office of Management and Budget (OMB) regulations require 
that OMB approve certain reporting and recordkeeping (collections of 
information) imposed by an agency.\42\ The Commission submits reporting 
and recording keeping requirements to OMB under section 3507 of the 
Paperwork Reduction Act of 1995.\43\
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    \42\ 5 CFR 1320.
    \43\ 44 U.S.C. 3507.
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    31. As stated above, the Commission previously approved, in Order 
No. 693, the Reliability Standard that is the subject of the current 
Final Rule. This Final Rule accepts an interpretation of the currently 
approved Reliability Standard. The interpretation of the current 
Reliability Standard at issue in this final rule is not expected to 
change the reporting burden or the information collection requirements. 
The informational filing required of NERC is part of currently active 
collection FERC-725 and does not require additional approval by OMB.
    32. We will submit this final rule to OMB for informational 
purposes only.

VIII. Environmental Analysis

    33. 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.\44\ The 
Commission has categorically excluded certain actions from this 
requirement as not having a significant effect on the human 
environment. Included in the exclusion are rules that are clarifying, 
corrective, or procedural or that do not substantially change the 
effect of the regulations being amended.\45\ The actions proposed 
herein fall within this categorical exclusion in the Commission's 
regulations.
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    \44\ Regulations Implementing the National Environmental Policy 
Act of 1969, Order No. 486, FERC Stats. & Regs. ] 30,783 (1987).
    \45\ 18 CFR 380.4(a)(2)(ii).
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IX. Regulatory Flexibility Act

    34. The Regulatory Flexibility Act of 1980 (RFA) generally requires 
a description and analysis of final rules that will have significant 
economic impact on a substantial number of small entities.\46\ The RFA 
mandates consideration of regulatory alternatives that accomplish the 
stated objectives of a proposed rule and that minimize any significant 
economic impact on a substantial number of small entities. The Small 
Business Administration's (SBA) Office of Size Standards develops the 
numerical definition of a small business.\47\ The SBA has established a 
size standard for electric utilities, stating that a firm is small if, 
including its affiliates, it is primarily engaged in the transmission, 
generation and/or distribution of electric energy for sale and its 
total electric output for the preceding twelve months did not exceed 
four million megawatt hours.\48\ The RFA is not implicated by this 
Final Rule because the interpretation accepted herein does not modify 
the existing burden or reporting requirements. Because this Final Rule 
accepts an interpretation of the currently approved Reliability 
Standard, the Commission certifies that this Final Rule will not have a 
significant economic impact on a substantial number of small entities.
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    \46\ 5 U.S.C. 601-612.
    \47\ 13 CFR 121.201.
    \48\ Id. n.1.
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X. Document Availability

    35. 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 p.m. 
Eastern time) at 888 First Street NE., Room 2A, Washington, DC 20426.
    36. 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.
    37. User assistance is available for eLibrary and the FERC's Web 
site during normal business hours from FERC Online Support at 202-502-
6652 (toll free at 1-866-208-3676) or email at 
[email protected], or the Public Reference Room at (202) 502-
8371, TTY (202) 502-8659. Email the Public Reference Room at 
[email protected].

[[Page 7531]]

XI. Effective Date and Congressional Notification

    38. This Final Rule is effective March 14, 2012. The Commission has 
determined, with the concurrence of the Administrator of the Office of 
Information and Regulatory Affairs of OMB that this rule is not a 
``major rule'' as defined in section 351 of the Small Business 
Regulatory Enforcement Fairness Act of 1996.

List of Subjects in 18 CFR Part 40

    Applicability, Mandatory reliability standards, Availability of 
reliability standards.

    By the Commission.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2012-3272 Filed 2-10-12; 8:45 am]
BILLING CODE 6717-01-P
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