[Federal Register Volume 80, Number 17 (Tuesday, January 27, 2015)]
[Rules and Regulations]
[Pages 4195-4201]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-01424]



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Rules and Regulations
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Federal Register / Vol. 80, No. 17 / Tuesday, January 27, 2015 / 
Rules and Regulations

[[Page 4195]]



DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

18 CFR Part 40

[Docket No. RM14-8-000; Order No. 803]


Protection System Maintenance Reliability Standard

AGENCY: Federal Energy Regulatory Commission, Energy.

ACTION: Final rule.

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SUMMARY: Pursuant to the Federal Power Act, the Commission approves a 
revised Reliability Standard, PRC-005-3 (Protection System and 
Automatic Reclosing Maintenance), submitted by the North American 
Electric Reliability Corporation (NERC). In addition, the Commission 
approves one new definition and six revised definitions referenced in 
the Reliability Standard, the assigned violation risk factors and 
violation severity levels, and NERC's implementation plan. Consistent 
with Order No. 758, the Reliability Standard requires applicable 
entities to test and maintain certain autoreclosing relays as part of a 
protection system maintenance program. However, to ensure that proper 
maintenance and testing is done for all parts of a reclosing relay 
scheme that can affect the reliable operation of the Bulk-Power System, 
the Commission directs that NERC develop a modification to the 
Reliability Standard to include maintenance and testing of supervisory 
relays.

DATES: This rule will become effective March 30, 2015.

FOR FURTHER INFORMATION CONTACT: 
Tom Bradish (Technical Information), Office of Electric Reliability, 
Federal Energy Regulatory Commission, 888 First Street NE., Washington, 
DC 20426, (301) 665-1391, <a href="/cdn-cgi/l/email-protection#25714a480b675744414c564d65434057460b424a53"><span class="__cf_email__" data-cfemail="88dce7e5a6cafae9ece1fbe0c8eeedfaeba6efe7fe">[email protected]</span></a>.
Julie Greenisen (Legal Information), Office of the General Counsel, 
Federal Energy Regulatory Commission, 888 First Street NE., Washington, 
DC 20426, (202) 502-6362, <a href="/cdn-cgi/l/email-protection#8ee4fbe2e7eba0e9fcebebe0e7fdebe0cee8ebfceda0e9e1f8"><span class="__cf_email__" data-cfemail="7218071e1b175c150017171c1b01171c32141700115c151d04">[email protected]</span></a>.

SUPPLEMENTARY INFORMATION:
    1. Pursuant to section 215 of the Federal Power Act (FPA),\1\ the 
Commission approves a revised Reliability Standard, PRC-005-3 
(Protection System and Automatic Reclosing Maintenance), submitted by 
the North American Electric Reliability Corporation (NERC). In 
addition, the Commission approves one new definition and six revised 
definitions referenced in the Reliability Standard, the assigned 
violation risk factors and violation severity levels, and NERC's 
implementation plan. Consistent with Order No. 758,\2\ the revised 
Reliability Standard requires applicable entities to test and maintain 
certain autoreclosing relays as part of a protection system maintenance 
program. However, to ensure that proper maintenance and testing is done 
for all parts of a reclosing relay scheme that can affect the reliable 
operation of the Bulk-Power System, the Commission directs that NERC 
develop a modification to the Reliability Standard to include 
maintenance and testing of supervisory relays, as discussed below.\3\
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    \1\ 16 U.S.C. 824o (2012).
    \2\ Interpretation of Protection System Reliability Standard, 
Order No. 758, 138 FERC ] 61,094, clarification denied, 139 FERC ] 
61,227 (2012).
    \3\ Supervisory devices, as applied to autoreclosing relays, 
essentially ``supervise'' the actions of an autoreclosing scheme, 
i.e., allow autoreclosing for desirable conditions or block 
autoreclosing for undesirable conditions.
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I. Background

A. Regulatory Background

    2. Section 215 of the FPA requires a Commission-certified Electric 
Reliability Organization (ERO) to develop mandatory and enforceable 
Reliability Standards, subject to Commission review and approval.\4\ 
Once approved, the Reliability Standards may be enforced by the ERO 
subject to Commission oversight, or by the Commission independently.\5\ 
In 2006, the Commission certified NERC as the ERO.\6\
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    \4\ 16 U.S.C. 824o(c) and (d).
    \5\ See id. at 824o(e).
    \6\ North American Electric Reliability Corp., 116 FERC ] 
61,062, order on reh'g and compliance, 117 FERC ] 61,126 (2006), 
order on compliance, 118 FERC ] 61,030, order on compliance, 118 
FERC ] 61,190, order on reh'g, 119 FERC ] 61,046 (2007), rev. denied 
sub nom. Alcoa, Inc. v. FERC, 564 F.3d 1342 (D.C. Cir. 2009).
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    3. In 2007, in Order No. 693, the Commission approved an initial 
set of Reliability Standards submitted by NERC, including initial 
versions of four protection system and load-shedding-related 
maintenance standards: PRC-005-1, PRC-008-0, PRC-011-0, and PRC-017-
0.\7\ In addition, the Commission directed that NERC develop a revision 
to PRC-005-1 to incorporate a maximum time interval during which to 
conduct maintenance and testing of protection systems, and to consider 
combining into one standard the various maintenance and testing 
requirements for all of the maintenance and testing-related Reliability 
Standards for protection systems, underfrequency load shedding (UFLS) 
equipment and undervoltage load shedding (UVLS) equipment.
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    \7\ Mandatory Reliability Standards for the Bulk-Power System, 
Order No. 693, FERC Stats. & Regs. ] 31,242 at PP 1474, 1492, 1497, 
and 1514, order on reh'g, Order No. 693-A, 120 FERC ] 61,053 (2007).
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    4. The Commission issued Order No. 758 in February 2012, in 
response to NERC's request for approval of its interpretation of 
Requirement R1 of the then-current version of the protection system 
maintenance standard, PRC-005-1. The Commission accepted NERC's 
proposed interpretation of PRC-005-1, which identified the types of 
protection system equipment to which the Reliability Standard applied. 
In addition, the Commission directed NERC to develop modifications to 
the standard to address gaps highlighted by the proposed 
interpretation, including the need to address reclosing relays that may 
affect the reliability of the Bulk-Power System.\8\
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    \8\ See Order No. 758, 138 FERC ] 61,094 at PP 7, 23-24.
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    5. Prior to issuance of Order No. 758, NERC had begun developing 
revisions to its initial maintenance standards for protection systems 
and underfrequency and undervoltage load shedding equipment in response 
to the Order No. 693 directives. Those revisions, reflected in a 
consolidated Reliability Standard, PRC-005-2, were approved

[[Page 4196]]

by the Commission on December 24, 2013 in Order No. 793.\9\
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    \9\ Protection System Maintenance Reliability Standard, Order 
No. 793, 145 FERC ] 61,253 (2013).
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B. NERC Petition and Proposed Standard PRC-005-3

    6. On February 14, 2014, NERC submitted a petition seeking approval 
of proposed Reliability Standard PRC-005-3. In its petition, NERC 
maintained that the standard promotes reliability by making certain 
reclosing relays subject to a mandatory maintenance program, including 
adding detailed tables of minimum maintenance activities and maximum 
maintenance intervals for the reclosing relays. NERC explained that the 
purpose of PRC-005-3 is to ``document and implement programs for the 
maintenance of all Protection Systems and Automatic Reclosing affecting 
the reliability of the Bulk Electric System so that they are kept in 
working order.'' \10\
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    \10\ NERC Petition at 8.
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    7. NERC explained that the subset of reclosing applications 
included in proposed PRC-005-3 is based on the findings of a technical 
study performed, in response to Order No. 758, by NERC's System 
Analysis and Modeling Subcommittee (SAMS) and System Protection and 
Control Subcommittee (SPCS). The resulting study (the Joint Committee 
Report), attached to NERC's petition as Exhibit D, examined both the 
scope of reclosing relays that could affect the reliable operation of 
the Bulk-Power System and appropriate maintenance intervals and 
activities for those relays.
    8. In its petition, NERC explained that reclosing relays are 
``utilized on transmission systems to restore elements to service 
following automatic circuit breaker tripping,'' and are ``typically 
installed to lessen the burden on Transmission operators of manually 
restoring transmission lines.'' \11\ NERC explained that ``while more 
efficient restoration of transmission lines following temporary faults 
does provide an inherent reliability benefit, certain applications of 
reclosing relays can result in undesired relay operation or operation 
not consistent with relay design, leading to adverse reliability 
impacts.'' \12\ After examining these potential reliability impacts, 
the Joint Committee Report recommended that the revised standard 
should:
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    \11\ Id. at 9 (citations to Joint Committee Report omitted).
    \12\ Id.

    (1) Explicitly address maintenance and testing of reclosing 
relays applied as an integral part of a Special Protection System; 
and (2) include maintenance and testing of reclosing relays at or in 
proximity to generating plants at which the total installed capacity 
is greater than the capacity of the largest generating unit within 
the Balancing Authority Area.\13\
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    \13\ Id. at 10.

In addition, NERC explained that the Joint Committee Report recommended 
that ``proximity'' to these large generators be defined as 
``substations one bus away if the substation is within 10 miles of the 
plant.'' \14\
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    \14\ Id. NERC staff conducted its own analysis of this 
definition of ``proximity,'' ``to verify that the 10-mile threshold 
provides adequate margin to ensure maintenance and testing of all 
reclosing relays where failure could result in generating station 
instability.'' Id. at 20. See Protection System Maintenance 
Reliability Standard, Notice of Proposed Rulemaking, 79 FR 43987 at 
43989 (July 29, 2013), 148 FERC ] 61,041, at PP 11-14 (2014) for 
additional background on the Joint Committee Report and NERC staff 
analysis.
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    9. The Joint Committee Report recommendations are reflected in the 
applicability section of PRC-005-3, which identifies, inter alia, the 
following facilities:

    4.2.6.1 Automatic Reclosing applied on terminals of Elements 
connected to the BES bus located at generating plant substations 
where the total installed gross generating plant capacity is greater 
than the gross capacity of the largest BES generating unit within 
the Balancing Authority Area.
    4.2.6.2 Automatic Reclosing applied on the terminals of all BES 
Elements at substations one bus away from generating plants 
specified in Section 4.2.6.1 when the substation is less than 10 
circuit-miles from the generating plant substation.
    4.2.6.3 Automatic Reclosing applied as an integral part of an 
SPS specified in Section 4.2.4.\15\
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    \15\ NERC Petition, Ex. A at 1-2.

    10. Further, NERC proposed modifications to the language of 
Requirements R1, R3, and R4 of PRC-005-2 to reflect the inclusion of 
automatic reclosing relays. NERC also proposed to include a new 
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definition as part of the revised standard, as follows:

Automatic Reclosing--Includes the following Components:
    <bullet> Reclosing relay
    <bullet> Control circuitry associated with the reclosing relay.

NERC stated that the definition is intended for use within PRC-005-3 
only, and would not be incorporated into the NERC Glossary of Terms. In 
addition, NERC proposed modifications to four defined terms referenced 
in PRC-005-2, Protection System Maintenance Plan, Component Type, 
Component, and Countable Event, to reflect the inclusion of automatic 
reclosing components. Finally, NERC proposed to revise the definitions 
of Unresolved Maintenance Issue and Segment, also currently referenced 
in PRC-005-2, to capitalize the reference to the defined term 
``Component.''
    11. NERC's implementation plan for PRC-005-3 incorporates the 
phased-in implementation period approved for PRC-005-2, with the 
addition of compliance dates for the new requirements for automatic 
reclosing components. NERC explained that retirement of the legacy 
Reliability Standards (PRC-005-1b, PRC-008-0, PRC-011-0, and PRC-017-0) 
will continue to ``key off'' the regulatory approval date for PRC-005-
2, although PRC-005-2 itself will be retired in the United States 
immediately prior to the effective date of PRC-005-3, on the first day 
of the first calendar quarter twelve months following regulatory 
approval.\16\ According to NERC, applicable entities will continue to 
calculate compliance dates for Protection System Components by counting 
forward from the Commission approval date of PRC-005-2, and for 
Automatic Reclosing Components by counting forward from the effective 
date of Commission approval of PRC-005-3. Finally, for newly-identified 
Automatic Reclosing Components (e.g., resulting from the addition or 
retirement of generating units), compliance would be required by the 
end of the third calendar year following identification of those 
Components.
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    \16\ See id. at 22-24.
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    12. NERC stated that the violation risk factors proposed in PRC-
005-3 track those in the currently approved standard PRC-005-2, and 
that the violation severity levels now include the additional component 
(Automatic Reclosing) in a manner consistent with the approach taken 
for PRC-005-2.\17\
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    \17\ On June 4, 2014, NERC submitted two additional filings: (1) 
Proposed revisions to a violation severity level assigned to 
Requirement R1 of PRC-005, consistent with a Commission directive in 
Order No. 793; and (2) an errata to NERC's petition to reflect 
proper capitalization of defined terms as used in the proposed 
standard.
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C. Notice of Proposed Rulemaking

    13. On July 17, 2014, the Commission issued a Notice of Proposed 
Rulemaking (NOPR) proposing to approve Reliability Standard PRC-005-
3.\18\ While the NOPR acknowledged that NERC had provided technical 
support for the proposed thresholds for identifying applicable 
reclosing relays, the Commission noted that it ``nonetheless [had] 
concerns whether the thresholds are too narrow.'' \19\ Based on those 
concerns, the Commission proposed to require NERC to submit a report

[[Page 4197]]

examining the effectiveness of the revised standard in identifying 
reclosing relay schemes that could affect the reliable operation of the 
Bulk-Power System based on ``(1) actual operations data, and (2) 
simulated system conditions from planning assessments.'' \20\
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    \18\ Protection System Maintenance Reliability Standard, 148 
FERC ] 61,041 (2014).
    \19\ Id. P 22.
    \20\ Id. P 23.
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    14. With regard to actual operations data, the NOPR proposed that 
NERC enhance the granularity of its existing misoperations database 
``to gather relevant information regarding events that involve 
autoreclosing relays, such as distance from the fault, whether the 
relay reclosed into the fault, and whether that reclosure caused or 
exacerbated an event.'' \21\ With regard to simulated system 
conditions, the NOPR suggested that the contingency analyses generated 
as part of planning assessments required under Reliability Standard 
TPL-001-4 could provide an appropriate benchmark for assessing PRC-005-
3's applicability thresholds for reclosing relays.\22\
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    \21\ Id.
    \22\ See id. PP 24-27.
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    15. The NOPR also proposed to direct modification of PRC-005-3 to 
include supervisory devices associated with applicable reclosing relay 
schemes. The Commission raised concerns that the failure of supervisory 
devices could raise reliability concerns under certain conditions, such 
as when static system angles are greater than designed and allow 
autoreclosing into a fault. Finally, the NOPR requested that commenters 
address the data retention obligations as proposed in PRC-005-3, which 
require applicable entities to retain maintenance records for a minimum 
of two maintenance cycles (up to 24 years).
    16. Comments on the NOPR were filed by NERC; the Edison Electric 
Institute (EEI); International Transmission Company (ITC); Associated 
Electric Cooperative, Inc., Basin Electric Power Cooperative, Inc. and 
Tri-State Generation and Transmission Association, Inc. (together G&T 
Cooperatives); and Idaho Power Company (Idaho Power).

II. Discussion

    17. Pursuant to section 215(d)(2) of the FPA, we adopt our NOPR 
proposal and approve Reliability Standard PRC-005-3, including the 
associated definitions, violation risk factors and violation severity 
levels, and implementation plan (including the proposed retirement of 
identified ``legacy'' standards), as just, reasonable, not unduly 
discriminatory or preferential and in the public interest. As discussed 
above, NERC, EEI, ITC, and G&T Cooperatives support approval, 
commenting that the modifications to PRC-005-3 ``address a known 
reliability gap'' and address the directive in Order No. 758.\23\ We 
agree with NERC and the commenters, and conclude that Reliability 
Standard PRC-005-3 will enhance reliability by reducing the risk of 
autoreclosing relay misoperations through the imposition of minimum 
maintenance activities and maximum maintenance intervals for these 
relays. We further determine that PRC-005-3 adequately addresses the 
Commission directive from Order No. 758 with respect to the inclusion 
of reclosing relays in an adequate protection system maintenance 
program. In addition, as discussed below, we direct NERC to develop one 
modification to PRC-005-3 pertaining to the inclusion of supervisory 
relays for applicable reclosing relay schemes, and we clarify that 
NERC's proposal set forth in its NOPR comments is an appropriate 
approach to satisfy this directive.
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    \23\ EEI Comments at 2. See also ITC Comments at 4; G&T 
Cooperatives Comments at 2 (supporting approval of the Reliability 
Standard).
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    18. Below, we discuss the following matters: (A) Proposed reporting 
on the effectiveness of PRC-005-3; (B) supervisory devices; and (C) 
requested clarification on the applicability provisions of PRC-005-3.

A. Proposed Reporting on Effectiveness of PRC-005-3

NOPR
    19. As noted above, the Commission proposed in the NOPR to direct 
NERC to submit a report, two years after the effective date of PRC-005-
3, addressing the effectiveness of PRC-005-3 in identifying reclosing 
relay schemes that could impact the reliable operation of the Bulk-
Power System. The Commission suggested that NERC submit such a report 
to address the Commission's on-going concerns whether the standard's 
applicability thresholds reasonably identify those types of reclosing 
relays that can affect the reliability of the Bulk-Power System. The 
NOPR proposed two means of evaluating the standard's scope, based on 
(1) actual operations data and (2) simulated system conditions, such as 
contingency analyses required as part of the requirements of 
Reliability Standard TPL-001-4. The NOPR sought comment on the value of 
these means to evaluate PRC-005-3.
Comments
    20. NERC objects to additional reporting of any kind, contending 
that it adequately supported the applicability thresholds in PRC-005-3 
through the analysis provided in the Joint Committee Report. NERC 
argues that the Commission did not adequately justify the need for 
additional reporting or analysis, and did not provide a sufficiently 
detailed description of its concerns to allow the industry to 
``meaningfully comment'' on the Commission's reporting proposals.\24\ 
NERC also objects to the specific reporting benchmarks proposed in the 
NOPR, arguing that the planning assessment information generated by 
TPL-001-4 would not provide a meaningful benchmark for analyzing the 
scope of PRC-005-3. According to NERC, the simulations of autoreclosing 
in these planning assessments would not provide information relevant to 
the Commission's concerns with PRC-005-3 because they only assess the 
impact of (1) a successful autoreclosing, which is the ``desired 
outcome,'' and (2) an unsuccessful autoreclosing into a fault, which 
NERC claims ``will not provide information regarding the potential 
impact of an autoreclosing failure that may result in premature 
reclosing into a fault.'' \25\
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    \24\ NERC Comments at 12.
    \25\ Id. at 14.
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    21. EEI supports the Commission's proposed directive to require 
NERC to evaluate the effectiveness of PRC-005-3 through the submission 
of a report. However, EEI maintains that the Commission should ``allow 
NERC, with industry input and support, the latitude to develop'' the 
methods and processes for such an evaluation.\26\ EEI contends that 
this approach would appropriately give due weight to the technical 
expertise of NERC, in recognition of the requirements of FPA section 
215.
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    \26\ EEI Comments at 3.
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    22. EEI also asks the Commission to refrain from requiring changes 
to NERC's existing Misoperations Database, stating that such a 
directive could ``inadvertently change the purpose and intent of this 
system.'' \27\ According to EEI, the Misoperations Database ``is 
currently used to track misoperations, categorize the misoperation type 
and assign cause,'' and ``was not intended to assess impact.'' \28\ 
Moreover, EEI does not support the use of the contingency analyses 
required by TPL-001-4 to assess the scope of reclosing relays 
encompassed by PRC-005-3, because the two standards were developed for 
different purposes and should not necessarily be expected to align. 
Finally,

[[Page 4198]]

EEI notes that considerable study has already been conducted to address 
the Commission's identified concerns on the potential impact of 
reclosing relay misoperations, and asks that the Commission ``allow 
those recommendations to be applied, vetted, and studied before setting 
a new set of criteria which may not be necessary to ensure BES 
reliability.'' \29\
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    \27\ Id. at 4.
    \28\ Id.
    \29\ Id. at 5.
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    23. Idaho Power agrees with NERC and EEI that the misoperations 
database enhanced reporting requirement as proposed in the NOPR is of 
little value, and notes that the only autoreclosing relays that should 
be subject to additional scrutiny are those relatively few reclosing 
relays needed to ensure reliability.
    24. By contrast, ITC does not generally oppose the proposed 
directive on gathering additional misoperations data related to 
reclosing relays, but asks for clarification about certain information 
NERC would be required to collect. Specifically, ITC asks that the 
Commission recognize that an entity may not be able to report the 
distance from the fault without some allowable margin of specificity.
Commission Determination
    25. Based on the comments received on this issue, we are persuaded 
not to require NERC to submit a report on the effectiveness of PRC-005-
3 in identifying reclosing relay schemes that can have an impact on the 
reliable operation of the Bulk-Power System, as we had proposed in the 
NOPR. Instead, we direct NERC to obtain, maintain, and make available 
to the Commission upon request, one year following the effective date 
of the standard and on an annual basis thereafter, data sufficient to 
analyze the effectiveness of PRC-005-3, whether it be through NERC's 
Event Analysis process or other means. Specifically, NERC is to collect 
relevant information regarding Bulk-Power System events that involve 
high speed autoreclosing relays. Such information would include the 
operations of autoreclosing relays and their supervisory 
functionalities (e.g., time delays, synchronism check, voltages, etc.) 
that caused or exacerbated the events, and any unintended consequences 
of the events. The Commission encourages NERC and FERC staff to 
collaborate on the specific data to be collected, which could include, 
but is not limited to, the approximate distance from the fault and the 
generation loss associated with the event. Further, the Commission is 
also interested in knowing if those autoreclosing relays identified as 
causing or exacerbating an event operated as designed, and if PRC-005-3 
is applicable to the autoreclosing relays that were involved. We expect 
NERC to share all appropriate data as needed to evaluate autoreclosing 
relay performance, in accordance with our general expectation that NERC 
will ``cooperate with and share all appropriate data and information 
with Commission staff'' as needed ``to ensure that the ERO Enterprise 
and the Commission are both able to effectively perform their duties 
under section 215 of the FPA.'' \30\
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    \30\ Order on the Electric Reliability Organization's Five-Year 
Performance Assessment, 149 FERC ] 61,141 at P 38 (2014).
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    26. Given our decision in this Final Rule, we need not address the 
various arguments regarding the use of simulated contingency analyses 
as a benchmark for determining whether PRC-005-3 encompasses an 
adequate set of reclosing relays, and need not address ITC's request 
for clarification about the data points potentially required under our 
proposed revisions to NERC's misoperations database.

B. Supervisory Devices

NOPR
    27. The NOPR proposed to require modification of PRC-005-3 to 
include maintenance and testing of supervisory devices associated with 
autoreclosing relay schemes otherwise covered by the standard, such as 
sync-check and voltage relays that may be critical to the operation of 
an autoreclosing scheme.\31\ In doing so, the Commission noted that 
requiring the inclusion of supervisory devices within the scope of PRC-
005-3 is consistent with Commission orders on NERC's Transmission Relay 
Loadability Reliability Standard.\32\ In addition, the Commission noted 
that NERC had failed to explain how a failure of a sync-check relay for 
undesirable conditions, such as when static system angles are greater 
than designed, would not allow autoreclosing, thus leading to the 
reliability concerns identified in Order No. 758.\33\
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    \31\ NOPR, 148 FERC ] 61,041 at P 28.
    \32\ Id. P 29 (citing Transmission Relay Loadability Reliability 
Standard, Order No. 733, 130 FERC ] 61,221 (2010)).
    \33\ Id. P 30.
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Comments
    28. NERC states that it would support modification of PRC-005-3 to 
include certain supervisory devices to address the Commission's 
concerns as stated in the NOPR. Specifically, NERC suggests modifying 
the Reliability Standard to include ``maintenance of supervision 
functions for which a failure can result in autoreclosing into a fault 
and potentially cause generating or plant instability.'' \34\ 
Accordingly, NERC states that it ``would support the addition of 
voltage supervision, and where used, supervisory inputs associated with 
selective autoreclosing in the coverage of PRC-005.'' \35\ While 
asserting that ``synchronism check failures do not have the potential 
to affect reliable operation of the Bulk-Power System,'' NERC also 
acknowledges that ``including synchronism check supervision, as 
suggested by the Commission, would provide a reliability benefit.'' 
\36\ Thus, NERC states that it supports the addition of synchronism 
check supervision to the Reliability Standard's coverage.
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    \34\ NERC Comments at 4.
    \35\ Id.
    \36\ Id. at 5.
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    29. Idaho Power generally supports the inclusion of supervisory 
devices as part of PRC-005-3, based on its position that ``any 
component required for the successful operation of the reclosing system 
at the identified critical location should be tested and maintained.'' 
\37\
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    \37\ Idaho Power Comments at 3-4.
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    30. Other commenters support modification of PRC-005-3 to include 
supervisory devices with certain limitations. EEI asks that the 
Commission limit the directive ``to only those supervisory relays, 
which are directly associated with automatic reclosing schemes that 
would be covered by the proposed Reliability Standard.'' \38\ G&T 
Cooperatives ask that the Commission limit any directive on supervisory 
devices to ``those supervisory sync-check relays that can reclose on 
another transmission line,'' arguing that these are the only 
supervisory devices where failure could lead to a reliability 
concern.\39\
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    \38\ EEI Comments at 5.
    \39\ G&T Cooperatives Comments at 4.
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Commission Determination
    31. For the reasons stated in the NOPR and based on the commenters' 
general support, we adopt our NOPR proposal and direct that, pursuant 
to section 215(d)(5) of the FPA, NERC develop modifications to PRC-005-
3 to include supervisory devices associated with autoreclosing relay 
schemes to which the Reliability Standard applies. Further, we clarify 
that NERC's proposal regarding the scope of supervisory devices is an 
acceptable approach to satisfy the Commission directive. Specifically, 
NERC proposed in its NOPR comments, and we find

[[Page 4199]]

acceptable, that the scope of the supervisory devices to be encompassed 
in the Reliability Standard are those providing voltage supervision, 
supervisory inputs associated with selective autoreclosing, and sync-
check relays that are part of a reclosing scheme covered by PRC-005-3.

C. Requested Clarification on Applicability Sections

Comments
    32. ITC requests that the Commission clarify, or direct NERC to 
clarify, two applicability provisions. First, ITC asks for 
clarification that ``the largest BES generating unit within the 
Balancing Authority Area'' under Applicability section 4.2.6.1 would be 
determined using the NERC-defined term ``Balancing Authority,'' and not 
the MISO-defined term ``Local Balancing Authority.'' In addition, ITC 
requests that the Commission provide guidance on how to measure the 
gross capacity of multi-unit generating plants that are connected to 
electrically-isolated buses under section 4.2.6.2.
Commission Determination
    33. We decline to provide the requested clarifications. Rather, we 
expect that an applicable entity will consult with the relevant 
Balancing Authority and/or Regional Entity, as appropriate, with 
questions concerning identification of the largest generating unit 
within the Balancing Authority Area, or the determination of gross 
generating plant capacity under the applicability sections of 
Reliability Standard PRC-005-3.

III. Information Collection Statement

    34. The following collection of information contained in this rule 
is subject to review by the Office of Management and Budget (OMB) under 
section 3507(d) of the Paperwork Reduction Act of 1995.\40\ OMB's 
regulations require approval of certain information collection 
requirements imposed by agency rules.\41\ 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 a 
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.
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    \40\ 44 U.S.C. 3507(d) (2006).
    \41\ 5 CFR 1320.11.
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    35. The Commission solicited comments on the need for and purpose 
of the information contained in Reliability Standard PRC-005-3 and the 
corresponding burden to implement the standard. The Commission received 
one comment on the reporting and information collection estimates. 
Specifically, EEI recommends that the Commission revise the cost 
estimate associated with the increase in information collection burdens 
expected under the proposed standard. EEI states that the NOPR 
underestimated the cost burden because it failed to take into account 
the extent to which compliance ``will require significant coordination 
with other entities, the modification of existing maintenance programs, 
identification of affected plants as well as all affected 
substations.'' \42\
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    \42\ EEI Comments at 6.
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    36. The Final Rule approves Reliability Standard PRC-005-3 
(Protection System and Automatic Reclosing Maintenance), which will 
replace PRC-005-2 (Protection System Maintenance). We decline to alter 
the burden estimate as calculated in the NOPR, as the only party to 
comment on the estimate (EEI) failed to point out any specific, 
quantifiable errors in the NOPR's estimate or otherwise offered an 
alternative quantification.
    37. Further, in the NOPR, the Commission requested comment on the 
data retention requirements, explaining that PRC-005-3 requires 
applicable entities to maintain documentation of covered maintenance 
activities performed since the last audit, or of the two most recent 
maintenance cycles if the maintenance interval exceeds the normal audit 
cycle. Because the longest maintenance interval for certain components 
under PRC-005-3 is twelve years, an entity could be required to retain 
records for up to 24 years.
    38. EEI, Idaho Power, and G&T Cooperatives oppose continuation of 
the data retention requirement, claiming that it is unnecessary and 
burdensome to retain maintenance records for 24 years, and noting that 
the record retention period far exceeds the normal audit cycle. 
Likewise, NERC avers that there is no ``substantial need'' to maintain 
the records for two full cycles. Further, NERC states that another 
version of the standard is being developed (version 4) that will reduce 
the data retention requirement so that records must only be maintained 
for the length of the audit cycle if the maintenance interval is 
shorter than the audit cycle, or for the length of the maintenance 
interval if not.
    39. We generally agree with NERC and other commenters that the 
current data retention requirement, with a maximum retention period of 
24 years, is unnecessarily long and burdensome. However, since the 
issuance of the NOPR and subsequent comments, NERC has submitted a 
petition for approval of the version 4 standard, PRC-005-4, which 
includes a modified document retention requirement.\43\ Rather than 
ruling in the immediate docket, we will address the data retention 
issue in the context of NERC's version 4 standard. As a result, there 
is no need to make corresponding adjustments to the NOPR's burden 
estimate as part of this Final Rule.
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    \43\ See December 18, 2014, NERC Petition for Approval of 
Proposed Reliability Standard PRC-005-4, Docket No. RM15-9-000. 
Nothing in this Final Rule prejudges the outcome in the separate 
proceeding addressing the Version 4 standard.
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    40. The approved Reliability Standard expands the applicability of 
the existing standard to include reclosing schemes that meet certain 
criteria, imposing mandatory minimum maintenance activities and maximum 
maintenance intervals for the various reclosing scheme components. 
Because the specific requirements were designed to reflect common 
industry practice, entities are not expected generally to experience a 
meaningful change in actual maintenance and documentation practices. 
However, applicable entities will have to perform a one-time review of 
their reclosing schemes to determine which ones fall under PRC-005-3, 
and, if they have applicable reclosing schemes, review current 
reclosing scheme maintenance programs to ensure that they meet the 
requirements of PRC-005-3. Accordingly, all information collection 
costs are expected to be limited to the first year of implementation of 
the revised standard.
    41. Public Reporting Burden: Our estimate below regarding the 
number of respondents is based on an analysis of the generating plants 
within the footprint of the PJM Interconnection, LLC (PJM) that meet 
the inclusion criteria of the proposed standard. There are an estimated 
23 generating plants in PJM that meet these criteria. These generating 
plants represent approximately 47,000 MWs of the approximately 184,000 
MWs within PJM. Based on 2012 data, total installed capacity in the 
continental United States is 1,153,000 MWs.\44\ Applying the PJM ratio 
to this total results in an estimated 144 plant sites nationwide to 
which PRC-005-3 would be applicable. We also assume that a substation 
will be located within 10 miles of each plant site, resulting in an 
estimated total

[[Page 4200]]

number of entities that meet the inclusion criteria of 288.\45\ 
Finally, we assume that all generator owners and transmission owners 
must review their existing plant and substation sites to determine 
applicability under the proposed standard.
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    \44\ See http://search.usa.gov/search?utf8=%E2%9C%93&affiliate=eia.doe.gov&query=generation+capacity+all+states&search=Submit and http://www.eia.gov/electricity/annual/html/epa_08_07_a.html.
    \45\ This estimate conservatively assumes that the proximate 
substation would be owned by a different entity than the generating 
plant.
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    42. Affected entities must perform a one-time review of their 
existing reclosing scheme maintenance program to ensure that it 
contains at a minimum the activities listed in Table 4 in Reliability 
Standard PRC-005-3, and that the activities are performed within the 
applicable maximum interval listed in Table 4. If the existing 
reclosing scheme maintenance program does not meet the criteria in 
Reliability Standard PRC-005-3, the entity will have to make certain 
adjustments to the program.

                                      RM14-8-000 (Mandatory Reliability Standards: Reliability Standard PRC-005-3)
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                          Annual  number                      Average      Total annual
                                                             Number of     of  responses   Total number     burden and     burden hours      Cost per
                                                            respondents         per        of responses      cost per        and total    respondent ($)
                                                                            respondent                     response \46\    annual cost
                                                                (1)             (2)         (1) * (2) =         (4)         (3) * (4) =      (5) / (1)
                                                                                                (3)                             (5)
--------------------------------------------------------------------------------------------------------------------------------------------------------
One-time review of existing plant and substation sites          \47\ 937               1             937               2           1,874            $146
 to determine which ones fall under PRC-005-3...........                                                            $146        $136,802
One-time review and adjustment of existing program......        \48\ 288               1             288               8           2,304             584
                                                                                                                    $584        $168,192
                                                         -----------------------------------------------------------------------------------------------
    Total...............................................  ..............  ..............           1,225  ..............           4,178  ..............
                                                                                                                                $304,994
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Title: FERC-725P, Mandatory Reliability Standards: Reliability 
Standard PRC-005-3.
    Action: Final rule.
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    \46\ The estimates for cost per response are derived using the 
following formula: Average Burden Hours per Response * $73 per Hour 
= Average Cost per Response. The hourly cost figure comes from the 
average of the salary plus benefits for a manager and an engineer 
(rounded to the nearest dollar). The figures are taken from the 
Bureau of Labor Statistics at (http://bls.gov/oes/current/naics3_221000.htm).
    \47\ This figure reflects the generator owners and transmission 
owners identified in the NERC Compliance Registry as of May 28, 
2014.
    \48\ This figure is a subset of GOs and TOs, as discussed in P 
41 and n. 44.
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    OMB Control No: 1902-0269.
    Respondents: Business or other for-profit and not-for-profit 
institutions.
    Frequency of Responses: One time.
    Necessity of the Information: The approved Reliability Standard 
PRC-005-3 will implement 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 standard will ensure that transmission and generation 
protection systems and reclosing relays affecting the reliability of 
the bulk electric system are maintained and tested.
    43. Internal review: The Commission has reviewed revised 
Reliability Standard PRC-005-3 and made a determination that approval 
of this standard is necessary to implement section 215 of the FPA. The 
Commission has assured itself, by means of its internal review, that 
there is specific, objective support for the burden estimates 
associated with the information requirements.
    44. Interested persons may obtain information on the reporting 
requirements by contacting the Federal Energy Regulatory Commission, 
Office of the Executive Director, 888 First Street NE., Washington, DC 
20426 [Attention: Ellen Brown, email: <a href="/cdn-cgi/l/email-protection#2b6f4a5f4a68474e4a594a45484e6b4d4e5948054c445d"><span class="__cf_email__" data-cfemail="90d4f1e4f1d3fcf5f1e2f1fef3f5d0f6f5e2f3bef7ffe6">[email protected]</span></a>, phone: 
(202) 502-8663, fax: (202) 273-0873].
    45. Comments concerning the information collections approved in 
this Final Rule and the associated burden estimates should be sent to 
the Commission in this docket and may also be sent to the Office of 
Management and Budget, Office of Information and Regulatory Affairs 
[Attention: Desk Officer for the Federal Energy Regulatory Commission]. 
For security reasons, comments should be sent by email to OMB at the 
following email address: <a href="/cdn-cgi/l/email-protection#07686e7566587472656a6e74746e686947686a652962687729606871"><span class="__cf_email__" data-cfemail="a3cccad1c2fcd0d6c1cecad0d0cacccde3cccec18dc6ccd38dc4ccd5">[email protected]</span></a>. Comments 
submitted to OMB should reference the collection number (FERC-725P) and 
OMB Control No. 1902-0269.

IV. Regulatory Flexibility Act Analysis

    46. The Regulatory Flexibility Act of 1980 (RFA) \49\ generally 
requires a description and analysis of final rules that will have 
significant economic impact on a substantial number of small entities. 
As shown in the information collection section, an estimated 288 
entities are expected to have applicable reclosing relays under the 
revised Reliability Standard. The proposed Reliability Standard 
requires applicable entities to test and maintain certain autoreclosing 
relays as part of a protection system maintenance program. More 
specifically, affected entities must perform a one-time review of their 
existing reclosing scheme maintenance program to ensure that it 
contains at a minimum the activities listed in Table 4 in Reliability 
Standard PRC-005-3. Comparison of the applicable entities with the 
Commission's small business data indicates that approximately 197 are 
small entities \50\ or 68.24 percent of the respondents affected by 
this Final Rule.
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    \49\ 5 U.S.C. 601-12.
    \50\ The Small Business Administration sets the threshold for 
what constitutes a small business. Public utilities may fall under 
one of several different categories, each with a size threshold 
based on the company's number of employees, including affiliates, 
the parent company, and subsidiaries. For the analysis in this Final 
Rule, we are using a 500 employee threshold for each affected 
entity. Each entity is classified as Electric Bulk Power 
Transmission and Control (NAICS code 221121).
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    47. As discussed above, we estimate that Reliability Standard PRC-
005-3 will apply to 144 generating plant sites and 144 substations that 
are located within 10 miles of the plant site. We therefore estimate 
that 288 entities will have applicable reclosing relays subject to the 
revised Reliability Standard's requirements, conservatively assuming

[[Page 4201]]

that the proximate substation would be owned by a different entity than 
the generating plant. In addition, we estimate that all generator 
owners and transmission owners will initially review plant and 
substation sites to determine applicability with the proposed standard.
    48. On average, each small entity affected may have a one-time cost 
of $730 per site, representing a one-time review of the program for 
each entity, consisting of 10 man-hours at $73/hour as explained above 
in the information collection statement. We do not consider this cost 
to be a significant economic impact for small entities. The Commission 
certifies that Reliability Standard PRC-005-3 will not have a 
significant economic impact on a substantial number of small entities. 
Accordingly, no regulatory flexibility analysis is required.

V. Environmental Analysis

    49. 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.\51\ 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.\52\ The actions taken herein 
fall within this categorical exclusion in the Commission's regulations.
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    \51\ Regulations Implementing the National Environmental Policy 
Act of 1969, Order No. 486, FERC Stats. & Regs. ] 30,783 (1987).
    \52\ 18 CFR 380.4(a)(2)(ii).
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VI. Document Availability

    50. In addition to publishing the full text of this document in the 
Federal Register, the Commission provides all interested persons an 
opportunity to view and/or print the contents of this document via the 
Internet through the Commission's Home Page (http://www.ferc.gov) and 
in the Commission's Public Reference Room during normal business hours 
(8:30 a.m. to 5:00 p.m. Eastern time) at 888 First Street NE., Room 2A, 
Washington, DC 20426.
    51. From the Commission's Home Page on the Internet, this 
information is available on eLibrary. The full text of this document is 
available on eLibrary in PDF and Microsoft Word format for viewing, 
printing, and/or downloading. To access this document in eLibrary, type 
the docket number excluding the last three digits of this document in 
the docket number field.
    52. User assistance is available for eLibrary and the Commission's 
Web site during normal business hours from the Commission's Online 
Support at 202-502-6652 (toll free at 1-866-208-3676) or email at 
<a href="/cdn-cgi/l/email-protection#076162756468696b6e696274727777687573476162756429606871"><span class="__cf_email__" data-cfemail="2d4b485f4e4243414443485e585d5d425f596d4b485f4e034a425b">[email protected]</span></a>, or the Public Reference Room at (202) 502-
8371, TTY (202) 502-8659. Email the Public Reference Room at 
<a href="/cdn-cgi/l/email-protection#176762757b7e74396572717265727974726578787a577172657439707861"><span class="__cf_email__" data-cfemail="9bebeef9f7f2f8b5e9fefdfee9fef5f8fee9f4f4f6dbfdfee9f8b5fcf4ed">[email protected]</span></a>.

VII. Effective Date and Congressional Notification

    53. This Final Rule is effective March 30, 2015.
    54. 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.\53\ 
The Commission will submit the Final Rule to both houses of Congress 
and to the General Accountability Office.
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    \53\ See 5 U.S.C. 804(2).

    By direction of the Commission. Commissioner Honorable is voting 
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present.

    Issued: January 22, 2015.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2015-01424 Filed 1-26-15; 8:45 am]
BILLING CODE 6717-01-P


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