Federal Register / Vol. 82, No. 185 / Tuesday, September 26, 2017 / Rules and Regulations 44723 

1 16 U.S.C. 824(o). 

2Balancing Authority Control, Inadvertent 

Interchange, and Facility Interconnection 

Reliability Standards, Notice of Proposed 

Rulemaking, 81 FR 66,555 (Sept. 28, 2016), 156 

FERC ¶ 61,210 (2016) (NOPR). 

3See Response of the North American Electric 

Corporation to Data Request, Docket No. RM16–13– 

000 (April 7, 2017). 

4 16 U.S.C. 824o(d)(2). 

5 Id. 824o(e). 

6Rules 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). 

7North American Electric Reliability Corp., 116 

FERC ¶ 61,062, order on reh’g and 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 BulkPower System, Order No. 693, FERC Stats. & Regs. 

¶ 31,242 at PP 420, 439, and 680, order on reh’g, 

Order No. 693–A, 120 FERC ¶ 61,053 (2007). 

then clockwise along a 3.5 NM arc 

centered at latitude 32°51′53′′ N., 

longitude 114°23′35′′ W.; to latitude 

32°49′30′′ N., longitude 114°26′38′′ W.; 

to latitude 32°49′51′′ N., longitude 

114°26′38′′ W.; to latitude 32°50′08′′ N., 

longitude 114°26′3′′ W.; to latitude 

32°50′17′′ N., longitude 114°26′19′′ W.; 

to latitude 32°50′31′′ N., longitude 

114°26′17′′ W.; to latitude 32°50′42′′ N., 

longitude 114°26′9′′ W.; to latitude 

32°51′11′′ N., longitude 114°26′34′′ W.; 

to the point of beginning. 

Designated altitudes: Surface to and 

including 1,700 feet MSL. 

Time of Designation: Intermittent, 

0600–1800 local time, Monday– 

Saturday; other times by NOTAM. 

Controlling Agency: Yuma Approach 

Control, MCAS Yuma, AZ. 

Using Agency: U.S. Army, 

Commanding Officer, Yuma Proving 

Ground, Yuma, AZ. 

Issued in Washington, DC, on September 

20, 2017. 

Rodger A. Dean Jr., 

Manager, Airspace Policy Group. 

[FR Doc. 2017–20590 Filed 9–25–17; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF ENERGY 

Federal Energy Regulatory 

Commission 

18 CFR Part 40 

[Docket No. RM16–13–000; Order No. 836] 

Balancing Authority Control, 

Inadvertent Interchange, and Facility 

Interconnection Reliability Standards 

AGENCY: Federal Energy Regulatory 

Commission. 

ACTION: Final rule. 

SUMMARY: The Federal Energy 

Regulatory Commission (Commission) 

approves Reliability Standards BAL– 

005–1 (Balancing Authority Control) 

and FAC–001–3 (Facility 

Interconnection Requirements), 

submitted by the North American 

Electric Reliability Corporation, as well 

as the retirement of Reliability 

Standards BAL–005–0.2b (Automatic 

Generation Control), FAC–001–2 

(Facility Interconnection Requirements), 

and BAL–006–2 (Inadvertent 

Interchange). 

DATES: This rule will become effective 

November 27, 2017. 

FOR FURTHER INFORMATION CONTACT: 

Syed Ahmad (Technical Information), 

Office of Electric Reliability, Division 

of Reliability Standards, Federal 

Energy Regulatory Commission, 888 

First Street NE., Washington, DC 

20426, Telephone: (202) 502–8718, 

Syed.Ahmad@ferc.gov 

Julie Greenisen (Legal Information), 

Office of the General Counsel, Federal 

Energy Regulatory Commission, 888 

First Street NE., Washington, DC 

20426, Telephone: (202) 502–6362, 

Julie.Greenisen@ferc.gov. 

SUPPLEMENTARY INFORMATION: 

ORDER NO. 836 

FINAL RULE 

1. Pursuant to section 215 of the 

Federal Power Act (FPA),1 the 

Commission approves Reliability 

Standards BAL–005–1 (Balancing 

Authority Control) and FAC–001–3 

(Facility Interconnection Requirements), 

submitted by the North American 

Electric Reliability Corporation (NERC), 

as well as the retirement of Reliability 

Standards BAL–005–0.2b (Automatic 

Generation Control), FAC–001–2 

(Facility Interconnection Requirements), 

and BAL–006–2 (Inadvertent 

Interchange). The Commission also 

approves the associated implementation 

plans, violation risk factors, and 

violation severity levels for Reliability 

Standards BAL–005–1 and FAC–001–3. 

Finally, the Commission approves three 

revised definitions for the glossary of 

terms used in NERC’s Reliability 

Standards (NERC Glossary). 

2. The Commission determines that 

Reliability Standards BAL–005–1 and 

FAC–001–3 will enhance the reliability 

of the Bulk-Power System, as compared 

to currently-effective Reliability 

Standards BAL–005–0.2b and FAC– 

001–2, by clarifying and consolidating 

existing requirements related to 

frequency control. In addition, the 

Commission determines that the revised 

Reliability Standards support more 

accurate and comprehensive calculation 

of Reporting Area Control Error 

(Reporting ACE), by requiring timely 

reporting of an inability to calculate 

Reporting ACE and by requiring 

balancing authorities to maintain 

minimum levels of annual availability 

of 99.5 percent for each balancing 

authority’s system for calculating 

Reporting ACE. Based on the 

information received in the comments 

on the Notice of Proposed Rulemaking 

in this proceeding,2 as well as in 

response to a subsequent data request 

issued to NERC,3 the Commission has 

determined that it will not, at this time, 

direct NERC to restore existing 

requirements in Requirement R15 of 

Reliability Standard BAL–005–0.2b 

related to maintaining and testing 

backup power supplies at primary 

control centers and other critical 

locations. We also approve NERC’s 

request to retire Reliability Standard 

BAL–006–2, BAL–005–0.2b and FAC– 

001–2 upon the effective date of 

Reliability Standard BAL–005–1. 

I. Background 

A. Mandatory Reliability Standards and 

Order No. 693 

3. Section 215 of the FPA requires a 

Commission-certified Electric 

Reliability Organization (ERO) to 

develop mandatory and enforceable 

Reliability Standards that are subject to 

Commission review and approval. 

Specifically, the Commission may 

approve, by rule or order, a proposed 

Reliability Standard or modification to a 

Reliability Standard if it determines that 

the Reliability Standard is just, 

reasonable, not unduly discriminatory 

or preferential and in the public 

interest.4 Once approved, the Reliability 

Standards may be enforced by NERC, 

subject to Commission oversight, or by 

the Commission independently.5

4. Pursuant to section 215 of the FPA, 

the Commission established a process to 

select and certify an ERO,6 and 

subsequently certified NERC as the 

ERO.7 On March 16, 2007, the 

Commission issued Order No. 693, 

approving 83 of the initial 107 

Reliability Standards filed by NERC, 

including Reliability Standards BAL– 

005–0 (Automatic Generation Control), 

FAC–001–0 (Facility Interconnection 

Requirements), and BAL–006–1 

(Inadvertent Interchange).8 In addition 

to approving Reliability Standards BAL– 

005–0 and BAL–006–1, the Commission 

directed NERC to develop modifications 

to those Reliability Standards through 


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9 Id. P 420. 

10See Modification of Interchange and 

Transmission Loading Relief Reliability Standards; 

and Electric Reliability Organization Interpretation 

of Specific Requirements of Four Reliability 

Standards, Order No. 713, 124 FERC ¶ 61,071 

(2008); North American Electric Reliability Corp., 

Docket No. RD09–2–000 (May 13, 2009) (delegated 

letter order); North American Electric Reliability 

Corp., Docket No. RD12–4–000 (Sept. 13, 2012) 

(delegated letter order). 

11Order No. 693, FERC Stats. & Regs. ¶ 31,242 at 

P 428. 

12 Id. 

13See North American Electric Reliability Corp., 

134 FERC ¶ 61,007 (2011). 

14NERC states that Reporting ACE ‘‘represents a 

Balancing Authority Area’s (BAA’s) Area Control 

Error (ACE) measured in megawatts (MW) as the 

difference between the BAA’s Actual and 

Scheduled Net Interchange, plus its Frequency Bias 

Setting obligation and meter error corrections. 

Reporting ACE helps Responsible Entities provide 

reliable frequency control by indicating the current 

state of the entity’s contribution to Reliability.’’ 

NERC Petition at 3. 

15North American Electric Reliability Corp., 

Docket No. RD16–7–000 (June 23, 2016) (delegated 

letter order). 

16NERC Petition at 2 (referencing Project 2010– 

14.2.1 Phase 2 of Balancing Authority Reliabilitybased Controls). 

17 Id. at 3 (citing North American Electric. 

Reliability Corp., 138 FERC ¶ 61,193 at P 81, order 

on reh’g and clarification, 139 FERC ¶ 61,168 

(2012); Petition of the North American Electric 

Reliability Corporation for Approval of Retirement 

of Requirements in Reliability Standards, Docket 

No. RM13–8–000, at Exhibit A (‘‘Paragraph 81 

Criteria’’) (filed Feb. 28, 2013); North American 

Electric Reliability Corp. Order No. 788, 145 FERC 

¶ 61,147 (2013)). 

18 Id. 

the NERC standards development 

process. 

5. With respect to Reliability Standard 

BAL–005–0, the Commission directed 

NERC to develop a modification that: 

(1) develops a process to calculate the 

minimum regulating reserve a balancing 

authority must have at any given time 

taking into account expected load and 

generation variation and transactions 

being ramped into or out of the 

balancing authority; (2) changes the title 

of the Reliability Standard to be neutral 

as to the source of regulating reserves 

and to allow the inclusion of technically 

qualified DSM and direct control load 

management; (3) clarifies Requirement 

R5 of this Reliability Standard to specify 

the required type of transmission or 

backup plans when receiving regulation 

from outside the balancing authority 

when using non-firm service; and (4) 

includes Levels of Non-Compliance and 

a Measure that provides for a 

verification process over the minimum 

required automatic generation control or 

regulating reserves a balancing authority 

must maintain.9

Subsequently, the Commission 

approved one interpretation of 

Reliability Standard BAL–005–0 and 

two errata filings.10 The currentlyeffective version of the Reliability 

Standard is BAL–005–0.2b. 

6. With respect to Reliability Standard 

BAL–006–1, the Commission directed 

NERC to develop a modification ‘‘that 

adds Measures concerning the 

accumulation of large inadvertent 

imbalances and Levels of NonCompliance.’’ 11 The Commission 

explained the need for such a 

modification as follows: 

While we agree that inadvertent 

imbalances do not normally affect the 

real-time operations of the Bulk-Power 

System and pose no immediate threat to 

reliability, we are concerned that large 

imbalances represent dependence by 

some balancing authorities on their 

neighbors and are an indication of less 

than desirable balancing of generation 

with load. The Commission also notes 

that the stated purpose of this 

Reliability Standard is to define a 

process for monitoring balancing 

authorities to ensure that, over the long 

term, balancing authorities do not 

excessively depend on other balancing 

authorities in the Interconnection for 

meeting their demand or interchange 

obligations.12

Since then, the Commission has 

approved one revision to Reliability 

Standard BAL–006–1 to remove the 

regional waiver of certain requirements 

for the Midcontinent ISO, following the 

Midcontinent ISO’s transition to a single 

balancing authority model.13 The 

currently-effective version of the 

Reliability Standard is BAL–006–2. 

B. NERC Petition 

7. On April 20, 2016, NERC filed a 

petition seeking approval of Reliability 

Standards BAL–005–1 (Balancing 

Authority Control) and FAC–001–3 

(Facility Interconnection Requirements), 

nine new or revised definitions 

associated with the Reliability 

Standards, and retirement of currentlyeffective Reliability Standards BAL– 

005–0.2b (Automatic Generation 

Control), FAC–001–2 (Facility 

Interconnection Requirements), and 

BAL–006–2 (Inadvertent Interchange). 

8. In its petition, NERC requested that 

the two modified Reliability Standards 

and the revised definitions of Automatic 

Generation Control, Pseudo-Tie, and 

Balancing Authority become effective 

on the first day of the first calendar 

quarter twelve months from the effective 

date of the applicable governmental 

authority’s approval of NERC’s petition. 

NERC also requested that the retirement 

of Reliability Standard BAL–006–2 

become effective upon the latter of the 

effective date of proposed Reliability 

Standard BAL–005–1 and the NERC 

Operating Committee’s approval of an 

Inadvertent Interchange Guideline 

document. 

9. For the six remaining definitions 

(Reporting ACE 14 and its component 

definitions: Actual Frequency, Actual 

Net Interchange, Scheduled Net 

Interchange, Interchange Meter Error, 

and Automatic Time Error Correction), 

NERC initially requested an effective 

date of July 1, 2016, to coincide with the 

effective date for Reliability Standard 

BAL–001–2. However, NERC 

subsequently withdrew its request for 

approval of the six Reporting ACErelated definitions from the instant 

docket, and filed for expedited approval 

of the six definitions in a separate 

docket. The six definitions were 

approved by delegated letter order on 

June 23, 2016, and are no longer at issue 

in the instant proceeding.15

10. NERC explained in its petition 

that Reliability Standards BAL–005–1 

and FAC–001–3, and the proposed 

retirement of Reliability Standard BAL– 

006–2, came about as part of the second 

phase of NERC’s project to ‘‘clarify, 

consolidate, streamline, and enhance 

the Reliability Standards addressing 

frequency control.’’ 16 NERC indicated 

in its petition that the standard drafting 

team developed the proposed revisions 

after reviewing applicable Commission 

directives, ‘‘Paragraph 81’’ criteria, and 

the recommendations of the periodic 

review team that examined Reliability 

Standards BAL–005–0.2b and BAL– 

006–2.17

11. NERC described the revisions to 

Reliability Standard BAL–005–0.2b as 

clarifying and refining the current 

requirements ‘‘for accurate, consistent, 

and complete’’ reporting of Reporting 

ACE, which is a key frequency control 

and reliability indicator.18 These 

revisions include relocating some of the 

current requirements of Reliability 

Standard BAL–005–0.2b, which relate to 

confirming that facilities are within a 

balancing authority’s metered boundary, 

into Reliability Standard FAC–001–3. In 

addition, NERC proposed to relocate 

Requirement R3 of currently-effective 

Reliability Standard BAL–006–2 into 

Reliability Standard BAL–005–1, 

explaining that the requirement relates 

to ensuring that balancing authorities 

use consistent data sources to calculate 

Reporting ACE, and therefore more 

properly belongs in Reliability Standard 

BAL–005. 

12. NERC explained that the revised 

Reliability Standards ‘‘represent 

substantial improvements over existing 

Reliability Standards by helping to 

support more accurate and 

comprehensive calculation of Reporting 


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19 Id. at 12. 20 Id. at 13. 21 Id. at 23. 22 Id. at 16. 23 Id. at 19. 24 Id. at 13 (referencing Order No. 693, FERC 

Stats. & Regs. ¶ 31,242 at P 404, and noting that the 

Commission’s directive related to resourceneutrality for regulating reserves is now moot, as 

Requirement R2 of Reliability Standard BAL–005– 

0.2b, which required entities to maintain regulating 

reserves, has been retired). 25 Id. at n.39. 

26 Id. at 17; see also North American Elec. 

Reliability Corp., 121 FERC ¶ 61,179, at P 58 (2007). 

27NERC Petition at 18. 

28 Id. at 25–26. 

29 Id. at 27. 

30The Inadvertent Interchange Guideline 

document was subsequently approved by the NERC 

Operating Committee, on December 13, 2016. See 

NERC, Reliability Guideline: Inadvertent 

Interchange (Dec. 13, 2016, http://www.nerc.com/ 

comm/OC/Reliability%20Guideline%20DL/ 

Reliability_Guideline_Inadvertent_Interchange.pdf. 

31As NERC notes in its Supplemental Filing, 

NERC stated in its initial petition that 

‘‘Requirements R2, R7 and R15 . . . are redundant, 

ineffective, and should be retired based on 

Commission-approved Paragraph 81 Criteria.’’ 

NERC Supplemental Filing at 1 (quoting NERC 

Petition at 15). 

ACE and satisfying all remaining 

Commission directives for Reliability 

Standards BAL–005 and BAL–006.’’ 19

Further, NERC maintained that 

Reliability Standard BAL–005–1 is an 

improvement over the currentlyeffective version, BAL–005–0.2b, 

because it ‘‘consolidates unnecessary or 

repetitive Requirements and moves 

certain metrics for calculating Reporting 

ACE to the revised, proposed definition 

of Reporting ACE.’’ 20 Among other 

things, NERC proposed to move 

requirements applicable to generator 

operators and transmission operators in 

currently-effective Reliability Standard 

BAL–005–0.2b, into a more appropriate 

Reliability Standard, explaining that 

‘‘[a]s the purpose of FAC–001–3 is more 

commensurate with interconnection 

responsibilities, interconnection 

procedures contained in currently 

effective BAL–005–0.2b should be 

included in proposed Reliability 

Standard FAC–001–3.’’ 21

13. In addition, NERC asserted that 

Reliability Standard BAL–005–1 

improves on the currently-effective 

version of the Reliability Standard 

because proposed Requirement R2 

clarifies the performance expectations 

for notification to reliability 

coordinators when a balancing authority 

is unable to calculate Reporting ACE for 

30 minutes or more,22 and Requirement 

R5 ‘‘introduces a new obligation . . . to 

assure the availability of a BA’s system 

used to calculate Reporting ACE,’’ 

requiring a minimum availability of 99.5 

percent in each calendar year.23

14. NERC stated that the package of 

revisions reflected in its petition 

addresses the outstanding directives 

related to Reliability Standards BAL– 

005 and BAL–006 from Order No. 693. 

Specifically, NERC stated that the title 

of Reliability Standard BAL–005–1 has 

been modified from Automatic 

Generation Control to Balancing 

Authority Control ‘‘to reflect the 

connection to Reporting ACE and 

resource-neutral requirements.’’ 24 In 

addition, NERC indicated that it has 

revised the definition of Automatic 

Generation Control to ensure a resourceneutral process for controlling demand 

and resources.25

15. NERC also stated that the 

requirements of Reliability Standard 

BAL–005–1 all have a ‘‘medium’’ 

violation risk factor, thereby addressing 

the Commission’s directive to revise the 

violation risk factor for Reliability 

Standard BAL–005–0, Requirement R17 

to ‘‘medium.’’ 26 Similarly, NERC 

asserted that it met the directive to 

consider Xcel and FirstEnergy’s 

comments about the scope of 

Requirement R17, which set minimum 

accuracy requirements for time error 

and frequency devices, by retiring part 

of the currently-effective requirement 

and moving the minimum accuracy 

requirements into Requirement R3 of 

Reliability Standard BAL–005–1. NERC 

maintained that this response has 

‘‘streamlined obligations to use specific 

frequency metering equipment that is 

necessary for operation of [automatic 

generation control (AGC)] and accurate 

calculation of Reporting ACE, as this 

ensures that costs associated with 

implementation are commensurate with 

reliability benefit.’’ 27

16. NERC proposed to move 

Requirement R3 from currently-effective 

Reliability BAL–006–2 into Reliability 

Standard BAL–005–1, but NERC 

proposed to retire the rest of the 

requirements of Reliability Standard 

BAL–006–2 (Requirements R1, R2, R4, 

and R5). NERC stated that the standard 

drafting team determined that, aside 

from Requirement R3, each of the 

requirements in Reliability Standard 

BAL–006–2 are ‘‘energy accounting 

standards’’ and/or are ‘‘administrative’’ 

in nature, and should accordingly be 

retired.28

17. NERC acknowledged that the 

Commission previously directed it to 

develop measures concerning the 

accumulation of large inadvertent 

imbalances, based on the Commission’s 

concern that large imbalances may 

indicate an underlying problem. NERC 

explained, however, that the 

requirements of Reliability Standard 

BAL–001–2, which require balancing 

authorities to maintain clock-minute 

ACE within the Balancing Authority 

ACE Limit, as well as the requirements 

of Reliability Standard BAL–003–1 and 

proposed Reliability Standard BAL– 

002–2, which require entities to restore 

Reporting ACE within predefined 

bounds, prevent any excessive 

dependency on other entities. As NERC 

explained in its petition: 

Because entities are supporting 

frequency through this coordinated 

suite of reliability standards, entities 

will not excessively depend on other 

entities in the Interconnection such that 

the purely economic issue that was 

addressed by BAL–006–2 becomes a 

reliability issue for a NERC Reliability 

Standard.29

18. In order to address ‘‘any 

remaining or potential concerns with 

retirement of BAL–006–2,’’ NERC 

proposed that the retirement become 

effective only upon the Operating 

Committee’s approval of an Inadvertent 

Interchange Guideline document.30

NERC stated that the Inadvertent 

Interchange Guideline document was 

based on a white paper developed by 

the standard drafting team for 

Reliability Standards BAL–005 and 

BAL–006, and maintained that it 

provides an in-depth justification for 

why a NERC Reliability Standard is not 

necessary for inadvertent interchange. 

19. With respect to the three proposed 

definitions that remain at issue in this 

proceeding, NERC explained that: (1) 

‘‘Automatic Generation Control’’ has 

been revised to set forth a resourceneutral process for controlling demand 

and resources; (2) ‘‘Pseudo-Tie’’ has 

been updated to reflect the use of the 

term ‘‘Reporting ACE;’’ and (3) 

‘‘Balancing Authority’’ has been revised 

to more accurately describe a balancing 

authority’s resource demand function. 

C. NERC Supplemental Filing 

20. On June 14, 2016, NERC 

submitted supplemental information in 

support of its April 20, 2016 petition 

(Supplemental Filing), to provide 

additional explanation and support for 

the retirement of Requirement R15 in 

currently-effective Reliability Standard 

BAL–005–0.2b.31 In its Supplemental 

Filing, NERC maintained that 

Requirement R15 should be retired 

because the objectives of that 

requirement (i.e., to ensure the 

continued operation of AGC and certain 

data recording equipment during the 

loss of normal power supply) are being 

addressed through other Reliability 

Standards and requirements. 

Specifically, NERC maintained that 


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32NERC Supplemental Filing at 2. 

33 Id. at 4. 

34NOPR, 156 FERC ¶ 61,210 at PP 26–33. 

35 Id. P 25. 

36The Appendix lists the entities that submitted 

comments and the shortened names used 

throughout this Final Rule to describe those 

entities. 

37 Data Request in Response to Petition Seeking 

Approval of Reliability Standards BAL–005–1 and 

FAC–001–3, Docket No. RM16–13–000 (March 7, 

2017) (March 7 Data Request). 

38As discussed above, NERC requested that the 

retirement of Reliability Standard BAL–006–2 

become effective upon the latter of the effective date 

of proposed Reliability Standard BAL–005–1 and 

the NERC Operating Committee’s approval of the 

Inadvertent Interchange Guideline document. 

Because the NERC Operating Committee has now 

approved the guideline document, we approve the 

retirement of BAL–006–2 as of the date BAL–005– 

1 goes into effect. 

39NERC Comments at 4. 

40Trade Associations Comments at 4. 

Reliability Standard EOP–008–1 

requires a balancing authority to have a 

backup control center facility and an 

operating plan that allows it to meet its 

functional obligations with regard to the 

reliable operation of the bulk electric 

system in the event that its primary 

control center functionality is lost.32

21. In addition, NERC maintained that 

the proposed performance requirements 

of Requirement R3 of Reliability BAL– 

005–1, which would require balancing 

authorities to ‘‘use frequency metering 

equipment for the calculation of 

Reporting ACE that is available a 

minimum of 99.95% of each calendar 

year,’’ will help to ensure that balancing 

authorities can continuously operate the 

equipment necessary for the calculation 

of Reporting ACE, effectively 

eliminating the need for Requirement 

R15.33

D. Notice of Proposed Rulemaking and 

Data Request 

22. On September 22, 2016, the 

Commission issued a notice of Proposed 

Rulemaking proposing to approve 

Reliability Standards BAL–005–1 and 

FAC–001–3, as replacements for the 

existing versions of those standards, and 

to approve the retirement of Reliability 

Standard BAL–006–2 on the latter of the 

effective date of BAL–005–1 or the 

NERC Operating Committee’s approval 

of an Inadvertent Interchange Guideline. 

In the NOPR, the Commission raised 

several questions about the impact of 

eliminating Requirement R15 from 

currently-effective Reliability Standard 

BAL–005–0.2b, which requires 

responsible entities to maintain and 

periodically test backup power supplies 

at primary control centers and other 

critical locations.34 The Commission 

indicated that, depending on the 

information received in comments in 

response to its questions, it may decide 

to issue a directive to restore the 

substance of Requirement R15 as part of 

a final rule.35

23. Five sets of comments were filed 

in response to the NOPR.36

Subsequently, the Commission staff 

issued a data request to NERC seeking 

additional information about the current 

practices of a representative sample of 

entities concerning the use of backup 

power supplies.37 Specifically, the 

Commission sought further information 

from a sample of existing balancing 

authorities, reliability coordinators, and 

transmission operators related to the 

kinds of backup power supply they 

maintain at control centers and other 

critical locations, including current 

testing practices for those backup power 

supplies. NERC submitted its response 

to the data request on April 7, 2017. 

II. Discussion 

24. Pursuant to FPA section 215(d)(2), 

the Commission approves Reliability 

Standards BAL–005–1 and FAC–001–3 

as just, reasonable, not unduly 

discriminatory or preferential, and in 

the public interest. Reliability Standard 

BAL–005–1 and FAC–001–3 will 

enhance reliability as compared to 

currently-effective Reliability Standards 

BAL–005–0.2b and FAC–001–2, because 

the Reliability Standards clarify and 

consolidate existing requirements 

related to frequency control. In addition, 

Reliability Standard BAL–005–1 

supports more accurate and 

comprehensive calculation of Reporting 

ACE by requiring timely reporting of an 

inability to calculate Reporting ACE 

(Requirement R2) and by requiring 

minimum levels of availability and 

accuracy for each balancing authority’s 

system for calculating Reporting ACE 

(Requirement R5). 

25. We also approve the violation risk 

factors and violation severity levels 

associated with Reliability Standards 

BAL–005–1 and FAC–001–3; the 

revisions to the definitions of Automatic 

Generation Control, Pseudo-Tie, and 

Balancing Authority as proposed by 

NERC; the retirement of Reliability 

Standards BAL–005–0.2b, FAC–001–2, 

and BAL–006–2 in accordance with 

NERC’s implementation plan; 38 and 

NERC’s implementation plans for 

proposed Reliability Standards BAL– 

005–1 and FAC–001–3. 

26. As discussed below, the 

Commission determines not to direct 

NERC to restore the requirement, 

currently found in Requirement R15 of 

Reliability Standard BAL–005–0.2b, to 

maintain and test backup power 

supplies at primary control centers and 

other critical locations at this time. 

A. Reliability Standards BAL–005–1 and 

FAC–001–3 NOPR 

27. In the NOPR, the Commission 

proposed to approve Reliability 

Standards BAL–005–1 and FAC–001–3. 

The Commission noted that the 

modified Reliability Standards would 

clarify and consolidate existing 

requirements related to frequency 

control, and that Reliability Standard 

BAL–005–1 would support more 

accurate and comprehensive calculation 

of Reporting ACE. 

Comments 

28. NERC, Trade Associations, and 

BPA submitted comments in support of 

the Commission’s proposal to approve 

Reliability Standards BAL–005–1 and 

FAC–001–3. NERC maintains, as it did 

in its petition and supplemental filing, 

that the modified Reliability Standards 

not only address all remaining 

directives related to BAL–005 and BAL– 

006, but also ‘‘substantially improve 

existing frequency control requirements 

and support stronger frequency control 

performance.’’ 39 Similarly, Trade 

Associations argue that the Reliability 

Standards will support more accurate 

and comprehensive calculation of 

Reporting ACE, as the Commission 

recognized in the NOPR.40

Commission Determination 

29. We approve Reliability Standards 

BAL–005–1 and FAC–001–3. As 

proposed in the NOPR, the Commission 

determines that the modified Reliability 

Standards will, overall, enhance 

reliability by clarifying and 

consolidating existing requirements 

related to frequency control. 

Specifically, the Reliability Standards 

will support more accurate and 

comprehensive calculation of Reporting 

ACE by requiring timely reporting of an 

inability to calculate Reporting ACE and 

by requiring balancing authorities to 

maintain minimum levels of annual 

availability of 99.5 percent for each 

balancing authority’s system for 

calculating Reporting ACE. 

B. Retirement of Reliability Standard 

BAL–005–0.2b, Requirement R15 NOPR 

30. The NOPR observed that 

Reliability Standard BAL–005–1 does 

not include a requirement comparable 

to currently-effective Requirement R15 

of Reliability Standard BAL–005–0.2b, 

which states as follows: 

The Balancing Authority shall provide 

adequate and reliable backup power supplies 

and shall periodically test these supplies at 

the Balancing Authority’s control center and 


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Federal Register / Vol. 82, No. 185 / Tuesday, September 26, 2017 / Rules and Regulations 44727 

41See NOPR, 156 ¶ 61,210 at P 26. 

42 Id. at 30. 

43 Id. P 31. 

44 Id. P 30. 

45 Id. P 32. 

46 Id. P 33. 

47NERC Comments at 8–9. 

48Trade Associations Comments at 8; see also 

BPA Comments at 4. 

49NERC Comments at 5; Trade Associations 

Comments at 7–9. 

50NERC Comments at 6; see also Trade 

Associations Comments at 8 (asserting that 

Reliability Standard BAL–005–1’s required 

minimum performance level for calculating ACE 

‘‘provides real performance measures that far 

exceed’’ the current requirements of BAL–005–0.2b, 

and that ‘‘entities will not be able to ensure that 

they can achieve this level of performance without 

having critical backups,’’ including reliable backup 

power). 

51 Id. at 6 (responding to NOPR Question 5). 

52 Id. at 8–9 (responding to NOPR Question 6). 

53 Id. at 10. 

54Trade Associations Comments at 6–7. 

55 Id. at 7 (citing Standards Independent Expert 

Review Project; Chapter 5; Conclusions; at 18). 

other critical locations to ensure continuous 

operation of AGC and vital data recording 

equipment during loss of the normal power 

supply.41

31. The NOPR recognized that the 

approach taken in Reliability Standard 

BAL–005–1, when combined with the 

requirements of other Reliability 

Standards requiring entities to meet 

their functional obligations in the event 

of the loss of a primary control center, 

was intended to be a more performancebased approach to ensuring reliable 

operation of the bulk electric system.42

However, the Commission expressed 

concern that the objectives of 

Requirement R15 would not be fully 

met by the other Reliability Standards 

and requirements NERC had identified, 

and in particular pointed out the 

following potential gap: 

Requirement R15 of currently-effective 

Reliability Standard BAL–005–0.2b helps to 

ensure continued operability of balancing 

authorities’ primary control centers, despite 

the loss of normal power supply, without 

evacuation to or activation of backup control 

centers. Thus, this provision appears to 

provide additional robustness in the primary 

control center and mitigates the risk of 

problems occurring in the transition to a 

secondary control center.43

The NOPR also pointed out that 

balancing authorities currently appear 

to be the only type of functional entity 

explicitly required to have and to test 

adequate and reliable backup supply at 

critical locations, and that there is no 

provision parallel to Requirement R15 

for reliability coordinators or 

transmission operators.44

32. The NOPR requested comments 

from NERC and others on the retirement 

of Requirement R15 of Reliability 

Standard BAL–005–0.2b, specifically 

asking for comment on the benefits and 

potential burden of retaining 

Requirement R15, and an explanation as 

to why there is no parallel to 

Requirement R15 for reliability 

coordinators and transmission 

operators, including whether any reason 

exists to distinguish between balancing 

authorities and other entities that may 

operate a control center or critical 

facility.45 In addition, the Commission 

asked commenters to respond to six 

specific questions regarding the impact 

of retiring Requirement R15; current 

practices with respect to backup power 

supply at control centers; and the scope 

of other requirements identified by 

NERC as fulfilling the same objectives as 

current Requirement R15.46

Comments 

33. NERC, Trade Associations, and 

BPA maintain that Requirement R15 

should be retired without further 

directive from the Commission, as the 

results-based requirements of Reliability 

Standard BAL–005–1 represent a more 

comprehensive and superior approach. 

NERC asserts that Reliability Standard 

EOP–008–1’s results-based or 

functionality-based approach is 

preferable overall,47 while Trade 

Associations and other commenters 

point out that the performance levels 

required in Reliability Standard BAL– 

005–1, Requirements R3 and R5, cannot 

be achieved without having critical 

backup systems, including a backup 

power supply that is routinely 

maintained and tested.48

34. NERC contends that the existing 

requirements of R15 focus on only one 

factor contributing to reliable control 

center performance (i.e., backup power 

supplies), while Reliability Standard 

BAL–005–1 includes two performance 

obligations ‘‘that subsume requirement 

R15.’’ 49 Specifically, NERC points out 

that Requirement R3 requires balancing 

authorities to use frequency metering 

equipment for calculation of Reporting 

ACE that is available at least 99.95 

percent annually, with minimum 

accuracy of 0.001 Hz, and Requirement 

R5 requires that each system used by a 

balancing authority to calculate 

Reporting ACE also be available at least 

99.5 percent annually. NERC states that 

these performance obligations, which 

provide no exceptions and include other 

critical elements such as data 

acquisition and communications, 

frequency metering, and ACE 

calculation systems, contrast with 

existing Requirement R15, which 

focuses on only one component (power 

supply) that contributes to 

performance.50 In addition, NERC 

maintains that new Requirement R3 

‘‘will ensure virtual ‘continuous 

operation of AGC and vital data 

recording equipment during loss of the 

normal power supply,’ ’’ thereby 

effectively replacing Requirement 

R15.51

35. NERC also maintains, as it did in 

its petition, that Requirement R15 

should be retired, as it is redundant 

with broader obligations imposed on 

balancing authorities, reliability 

coordinators, and transmission 

operators in Reliability Standard EOP– 

008–1. NERC contends that applicable 

entities cannot comply with Reliability 

Standard EOP–008–1 without 

addressing power sources, although 

NERC acknowledges that backup power 

supply may not always be necessary to 

support the required backup 

functionality for control center 

functions. NERC further points out that 

the functionality obligations under 

Requirement R1 of Reliability Standard 

EOP–008–1 include the obligation to 

address operation of vital equipment 

necessary for the collection of data to 

calculate Reporting ACE, assuming 

frequency metering equipment does not 

meet the minimum performance 

requirement under new Requirement R3 

of BAL–005–1.52 Overall, NERC 

maintains that Requirements R1 and R7 

of Reliability Standard EOP–008–1 ‘‘are 

broader and clearer than Requirement 

R15, by requiring [applicable entities] to 

have in place and test Operating Plans 

that address all elements (including any 

power sources) necessary for backup 

functionality.’’ 53

36. Trade Associations maintain, on a 

more general level, that overlyprescriptive requirements can be 

burdensome and often ineffective. Trade 

Associations assert that in determining 

whether there is adequate justification 

for the retirement of Requirement R15, 

the Commission should assess ‘‘whether 

[the new and remaining] requirements 

have sufficient rigor to ensure [bulk 

electric system] reliability through the 

continuous efforts to design, build and 

maintain systems to achieve the desired 

level of performance.’’ 54 Trade 

Associations note that NERC’s 

Independent Expert Review Panel 

concluded that results-based Reliability 

Standards would improve overall 

reliability.55 Moreover, Trade 

Associations contend that the absence of 

a recommendation by the Independent 

Expert Review Panel to retire 

Requirement R15 as part of its 2013 

report has no bearing on the question of 


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44728 Federal Register / Vol. 82, No. 185 / Tuesday, September 26, 2017 / Rules and Regulations 

56 Id. at 7. 57NERC notes, for example, that Reliability 

Standard EOP–008–1, Requirement R1 requires 

entities to address power and backup power as part 

of their emergency plans, but acknowledges that it 

does not necessarily require backup power at either 

the primary or secondary control center. See also 

Trade Associations at 12; BPA at 3 (stating that 

without R15, BPA ‘‘does not believe there is an 

enforceable requirement to have a backup power 

supply to support frequency metering equipment’’). 

58NERC Comments at 8–9 (responding to NOPR 

Question 6). 59Trade Associations Comments at 16. 60BPA Comments at 3; Idaho Power Comments at 

3. 61Trade Associations Comments at 14. 

62 Id. at 14. 

63 Idaho Power Comments at 2. 

64Trade Associations Comments at 9–11. 

65See Appelbaum Comments at 4. 

66 Id. 

67 Id. at 5. 

68NERC Response to Data Request at 3. 

retirement now, given the 

improvements and enhancements 

associated with Reliability BAL–005–1. 

Finally, Trade Associations raise a 

concern that the Commission may be 

misconstruing Reliability Standard 

BAL–005–0.2b to address a reliability 

concern beyond that intended for BAL– 

005. Trade Associations maintain that 

the BAL–005 Reliability Standards 

‘‘were written for the express purpose of 

ensuring [balancing authorities] can 

reliably and effectively calculate 

Reporting ACE in order to maintain 

resource and demand balance within 

their area of responsibility.’’ 56

37. As to what obligations would still 

exist under Reliability Standard EOP– 

008–1 if the backup power supply 

obligation in Requirement R15 was 

retired, NERC, Trade Associations, and 

all other commenters addressing the 

question acknowledge that EOP–008–1 

does not require applicable entities to 

have backup power supply at the 

primary or the secondary control 

center.57 However, NERC asserts that 

backup functionality obligations under 

Requirement R1 of Reliability Standard 

EOP–008–1 ‘‘include the obligation to 

address operation of vital equipment 

necessary for the collection of data to 

calculate Reporting ACE if frequency 

metering equipment does not meet the 

minimum performance requirements 

under proposed R3 of BAL–005–1.’’ 58

By contrast, the Trade Associations 

acknowledge that Reliability Standard 

EOP–008–1 does not ensure continuous 

operation of AGC and vital data 

recording equipment during the loss of 

normal power supply.59

38. With respect to the NOPR’s 

questions on current practices regarding 

backup power supply, BPA and Idaho 

Power indicate that they have backup 

power supply at all of their primary and 

secondary control centers.60 Trade 

Associations state that most companies 

have many layers of backup to ensure 

continued control center functionality, 

which may include backup power, 

backup generators and uninterrupted 

power supply.61 In response to the 

NOPR’s questions about the definition 

of ‘‘critical location’’ as currently used 

in Reliability Standard BAL–005–0.2b, 

Trade Associations state that the ‘‘other 

critical locations’’ referenced in current 

requirement R15 could refer to 

frequency metering equipment 

(including equipment outside the 

control center), ancillary computer 

rooms with energy management systems 

(EMS) and EMS backups, and other data 

systems needed for ACE calculation.62

39. With respect to the benefits and 

burdens of having backup power supply 

at certain locations, Idaho Power 

acknowledges the benefits of having 

backup power supply at primary control 

centers and other critical locations 

(including the benefit of ensuring 

compliance with other reliability 

requirements), and it states that the 

potential impact to reliability is no 

different for reliability coordinators or 

transmission operators.63 Trade 

Associations maintain, however, that 

there is no need for additional 

requirements for reliability coordinators 

and transmission operators related to 

backup power supply, because other 

Reliability Standards require or 

encourage certain levels of reliability 

and functionality at these locations, as 

evidenced by the historical lack of 

problems with loss of EMS or loss of 

power supply at control centers.64

40. Appelbaum primarily discusses 

the importance of backup power 

supplies in the context of 

communications networks. Appelbaum 

points to a report issued by the Federal 

Communications Commission in 

response to the June 2012 ‘‘derecho’’ 

event on communications networks and 

services in Virginia. The report found 

that communications were disrupted in 

large part during that event because of 

avoidable planning and system failures, 

including the lack of functional backup 

power, notably in central offices. 

Appelbaum contends, based on the 

derecho event, that the need to properly 

plan and design backup power is a 

critical component of reliability, and 

asks that the findings of the derecho 

event be considered when the 

Commission assesses the functional 

approach of Reliability Standard EOP– 

008–1.65 Appelbaum points out that 

‘‘there is no specific mention of the 

performance requirements of the backup 

power supply, the required design, or 

reference to an Industry Standard’’ in 

Reliability Standard EOP–008–1, which 

‘‘creates a degree of ambiguity that can 

be exploited to avoid installing a 

sufficient level of redundancy in power 

supplies.’’ 66 Appelbaum further states 

the requirement for backup power 

design and testing should extend to 

reliability coordinators, transmission 

operators, and balancing authorities.67

In sum, Appelbaum’s comments stress 

the overall need to impose specific 

requirements, not merely functional 

obligations, related to backup power 

supply for critical systems. 

Response to Data Request 

41. In response to the Commission’s 

March 7 Data Request requesting 

information on specific backup supply 

practices from a sampling of registered 

entities, NERC indicated that it 

collected data from nine entities, all 

registered as a balancing authority, 

reliability coordinator, transmission 

operator, or some combination of those 

functional categories. NERC indicated 

that the sample reflected some diversity 

as to size and type of entity and, 

therefore, the information ‘‘should be 

reflective of current practices 

throughout the industry.’’ 68

42. NERC’s response indicates that all 

surveyed entities have backup power 

supplies at their primary and backup 

control centers. A number of entities 

responded that these backup supplies 

were installed prior to the effective date 

of NERC’s mandatory Reliability 

Standards, and that they would not 

change their practices if the 

Commission approved the retirement of 

Requirement R15 of Reliability Standard 

BAL–005–0.2b. NERC reported that the 

surveyed entities have backup power 

supply at a number of other critical 

locations, which include data centers, 

corporate facilities, and operations 

centers (e.g., those housing cyber and 

physical security operations). NERC 

indicated that the surveyed entities have 

two types of backup power supplies at 

their control centers: backup generators 

and uninterruptible power supplies. 

According to NERC, each of the 

surveyed entities reported that it 

regularly tests its backup power 

supplies in accordance with written 

procedures, the majority doing monthly 

run testing. NERC reported that some 

entities also perform switchover or 

transfer testing on a monthly basis, 

while others perform such testing at 

longer intervals. 


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69 44 U.S.C. 3501–3520. 

70 5 CFR 1320.11. 

71Reliability Standard FAC–001–3 replaces and 

strengthens currently-effective Reliability Standard 

FAC–001–2 by moving currently-effective 

Requirement R1 of Reliability Standard BAL–005– 

0.2b to Reliability Standard FAC–001–3, requiring 

that transmission owner and generator owner 

interconnection requirements include procedures 

for confirming that new or materially modified 

facilities connecting to the bulk electric system are 

within a balancing authority’s metered boundaries. 

NERC explains that these interconnection 

requirements should be relocated to Reliability 

Standard FAC–001–3, as FAC–001–3 establishes 

facility interconnection requirements. 

Commission Determination 

43. We approve the retirement of 

Reliability Standard BAL–005–0.2b, 

including Requirement R15, upon the 

effective date of Reliability Standard 

BAL–005–1. Based on the NOPR 

comments, we determine not to direct 

NERC to develop modifications to the 

Reliability Standards to restore the 

substance of Requirement R15 at this 

time. We conclude that the performance 

obligations of Reliability Standards 

BAL–005–1 and EOP–008–1 will ensure 

the continued operation of AGC and 

certain data recording equipment during 

the loss of normal power supply. 

Moreover, based on the responses to the 

March 7 Data Request, we are satisfied 

that backup power supplies at primary 

and secondary control centers and other 

critical locations will likely continue to 

be used even after the retirement of 

Reliability Standard BAL–005–0.2b, 

Requirement R15. Should that practice 

change to the detriment of Bulk-Power 

System reliability after the revised 

Reliability Standards go into effect, the 

Commission may revisit this issue. 

III. Information Collection Statement 

44. The Paperwork Reduction Act 

(PRA) 69 requires each federal agency to 

seek and obtain Office of Management 

and Budget (OMB) approval before 

undertaking a collection of information 

directed to ten or more persons, or 

contained in a rule of general 

applicability. The OMB regulations 

require that OMB approve certain 

reporting and recordkeeping (collections 

of information) imposed by an agency.70

Upon approval of a collection(s) of 

information, OMB will assign an OMB 

control number and expiration date. 

Respondents subject to the filing 

requirements of this 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. 

45. This Final Rule approves revisions 

to Reliability Standards BAL–005, 

associated with FERC–725R, and FAC– 

001, associated with FERC–725D. These 

revisions streamline and clarify the 

current requirements related to the 

calculation of Reporting ACE, a key 

frequency control and reliability 

indicator factor, including consolidating 

the seventeen requirements of currentlyeffective Reliability Standard BAL–005– 

0.2b, associated with FERC–725R, into 

seven requirements in Reliability 

Standard BAL–005–1; relocation of 

certain requirements related to 

interconnection requirements for 

transmission owners and generation 

owners into Reliability Standard FAC– 

001–3; relocation of Requirement R3 in 

currently-effective Reliability Standard 

BAL–006–2 into Reliability Standard 

BAL–005–1; and relocation of certain 

metrics and calculations required for 

calculating Reporting ACE into the 

NERC definition of Reporting ACE and 

its component definitions. 

46. The revisions to Reliability 

Standards BAL–005 and FAC–001 will 

not result in an increase in the recordkeeping and reporting requirements 

imposed on balancing authorities, other 

than the one-time cost of administering 

the change to the revised Reliability 

Standards. All other recordkeeping and 

reporting obligations imposed on 

balancing authorities under the 

modified requirements essentially track 

those that already exist under currentlyeffective Reliability Standards BAL– 

005–0.2b and FAC–001–2. The 

modifications to Reliability Standard 

FAC–001–3 will result in a limited 

increase in the record-keeping and 

reporting requirements imposed on 

those transmission owners and 

generator owners that are not also 

transmission operators and generator 

operators (an estimated 161 entities in 

the United States), as shown in the chart 

below.71 Many of the modifications to 

the Reliability Standards reflected in 

this Final Rule were developed to help 

clarify and streamline existing 

requirements related to calculation of 

Reporting ACE, and they are expected to 

reduce these entities’ overall burden 

with respect to recordkeeping, 

reporting, and compliance. Moreover, 

the Final Rule approves the retirement 

of the majority of the requirements in 

Reliability Standard BAL–006–2, further 

reducing the overall record-keeping and 

reporting requirements for balancing 

authorities. Accordingly, the 

Commission estimates that the overall 

change in the record-keeping and 

reporting requirements as a result of this 

Final Rule will be de minimis on a perentity basis. 

47. Public Reporting Burden: The 

changes reflected in Reliability Standard 

BAL–005–1 are not expected to result in 

an increase in the annual recordkeeping and reporting requirements on 

applicable entities (balancing 

authorities). However, balancing 

authorities will have to perform a onetime review of the modified Reliability 

Standard to ensure that their 

compliance practices (including recordkeeping) are consistent with the revised 

requirements. The relocation of 

Requirement R1 of Reliability Standard 

BAL–005–0.2b into Reliability Standard 

FAC–001–3 will result in an increase in 

the number of entities subject to the 

requirement, as the requirement will be 

applicable to transmission owners and 

generator owners rather than 

transmission operators and generator 

operators. However, this limited 

increase in annual record-keeping and 

reporting burden, along with the onetime burden of administering the change 

from Reliability Standard BAL–005– 

0.2b to BAL–005–1, is expected to be 

offset to some extent by the decrease in 

record-keeping and reporting burden 

associated with the retirement of 

Reliability Standard BAL–006–2. 

Data collection Number of 

respondents 72

Number of 

responses per 

respondent 

Total 

number of 

responses 

Average 

burden hours 

and cost per 

response 73

Annual 

burden hours 

and total 

annual 

cost 74

FERC–725A, 725D & 725R1 

(modifications in RM16–13–000) 

(1) (2) (1) × (2) = (3) (4) (3) × (4) = (5) 

BAL–005–1 (FERC–725R1) ........................ BA .............................

99 ..............................

1 (one-time) ................

.....................................

99 

........................

1 

$64.29 

99 

$6,364.71 

FAC–001–3 R3 (FERC–725D) .................... GO/TO ......................

161 75 ........................

1 (annual) ...................

.....................................

161 

........................

1 

$102.04 

161 

$16,428.44 


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72The estimated number of respondents is based 

on the NERC compliance registry as of April 7, 

2017. According to the NERC compliance registry, 

there are 64 U.S. balancing authorities (BA) in the 

Eastern Interconnection, 34 balancing authorities in 

the Western Interconnection and one balancing 

authority in the Electric Reliability Council of Texas 

(ERCOT). 

73The burden hours and cost are based on the 

hourly cost for an engineer for BAL–005–1, the 

average of the hourly cost for an engineer and 

clerical staff for FAC–001–3, and the hourly cost for 

clerical staff for changes associated with the 

retirement of BAL–006–2. The estimates for cost per 

hour are based on 2015 wage figures and derived 

as follows: 

$64.29/hour, the average salary plus benefits per 

engineer (from Bureau of Labor Statistics at https:// 

www.bls.gov/oes/current/naics2_22.htm); 

$37.75/hour, the average salary plus benefits per 

information and record clerks (from Bureau of 

Labor Statistics at https://www.bls.gov/oes/current/ 

naics2_22.htm). 

74Solely for purposes of determining the overall 

annual cost of the record-keeping and reporting 

changes reflected in this Final Rule, the one-time 

cost associated with administering the change to 

Reliability Standard BAL–005–1 is being treated as 

an annual cost. 

75Per the NERC compliance registry, in the 

United States there are 54 generator owners (GO) 

that are not also generator operators and 107 

transmission owners (TO) that are not also 

transmission operators, for a total of 161 new 

entities in the United States subject to Reliability 

Standard FAC–001–3, Requirement R3. 

76Regulations Implementing the National 

Environmental Policy Act of 1969, Order No. 486, 

FERC Stats. & Regs., Regulations Preambles 1986– 

1990 ¶ 30,783 (1987). 

77 18 CFR 380.4(a)(2)(ii). 78 5 U.S.C. 601–612. 

79 13 CFR 121.201, Sector 22 (Utilities), NAICS 

code 221121 (Electric Bulk Power Transmission and 

Control). 

Data collection Number of 

respondents 72

Number of 

responses per 

respondent 

Total 

number of 

responses 

Average 

burden hours 

and cost per 

response 73

Annual 

burden hours 

and total 

annual 

cost 74

FERC–725A, 725D & 725R1 

(modifications in RM16–13–000) 

(1) (2) (1) × (2) = (3) (4) (3) × (4) = (5) 

Retirement of current standard BAL–006– 

02 (FERC–725A).

BA .............................

99 ..............................

¥1 (annual) ................

.....................................

¥99 

........................

¥1 

¥$37.75 

¥99 

¥$3,737.25 

Total ...................................................... ................................... ..................................... ........................ ........................ 260 

$19,055.90 

Title: FERC–725A, Mandatory 

Reliability Standards for the Bulk-Power 

System; FERC–725D, Mandatory 

Reliability Standards: FAC Reliability 

Standards; FERC–725R1, Mandatory 

Reliability Standards: BAL Reliability 

Standards 

Action: Revision to existing 

collections. 

OMB Control No: 1902–0244 (FERC– 

725A); 1902–0247 (FERC–725D); TBD 

(FERC–725R1). 

Respondents: Business or other forprofit and not-for-profit institutions. 

Frequency of Responses: On-going. 

Necessity of the Information: The 

Commission has reviewed the 

requirements of Reliability Standards 

BAL–005–1 and FAC–001–3 and has 

made a determination that the 

requirements of these Reliability 

Standards are necessary to implement 

section 215 of the FPA. 

Internal Review: The Commission 

reviewed the revised Reliability 

Standards and made a determination 

that its action 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. 

48. Interested persons may obtain 

information on the reporting 

requirements by contacting the 

following: Federal Energy Regulatory 

Commission, 888 First Street NE., 

Washington, DC 20426 [Attention: Ellen 

Brown, Office of the Executive Director, 

e-mail: DataClearance@ferc.gov, phone: 

(202) 502–8663, fax: (202) 273–0873]. 

49. For submitting comments 

concerning the collection(s) of 

information and the associated burden 

estimate(s), please send your comments 

to the Commission and to the Office of 

Management and Budget, Office of 

Information and Regulatory Affairs, 

Washington, DC 20503 [Attention: Desk 

Officer for the Federal Energy 

Regulatory Commission, phone: (202) 

395–4638, fax: (202) 395–7285]. For 

security reasons, comments to OMB 

should be submitted by e-mail to: oira_

submission@omb.eop.gov. Comments 

submitted to OMB should include 

FERC–725A, FERC–725D, and FERC– 

725R1 and Docket Number RM16–13– 

000. 

IV. Environmental Analysis 

50. 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.76 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.77 The 

actions taken here fall within this 

categorical exclusion in the 

Commission’s regulations. 

V. Regulatory Flexibility Act 

Certification 

51. The Regulatory Flexibility Act of 

1980 (RFA) 78 generally requires a 

description and analysis of proposed 

rules that will have significant 

economic impact on a substantial 

number of small entities. The RFA does 

not mandate any particular outcome in 

a rulemaking. It only requires 

consideration of alternatives that are 

less burdensome to small entities and an 

agency explanation of why alternatives 

were rejected. The Small Business 

Administration (SBA) revised its size 

standard effective January 22, 2014 for 

electric utilities from a standard based 

on megawatt hours to a standard based 

on the number of employees, including 

affiliates. Under SBA’s size standards, 

some balancing authorities, generation 

owners, and transmission owners will 

fall under the following category and 

associated size threshold: Electric bulk 

power transmission and control, at 500 

employees.79

52. As stated in the NOPR, the 

Commission estimates a very limited, 

one-time increase in recordkeeping and 

reporting burden on balancing 

authorities due to the changes in the 

revised Reliability Standards, with no 

other increase in the cost of compliance. 

Approximately 24 of the 99 balancing 

authorities are expected to meet the 

SBA’s definition for a small entity. In 

addition, approximately 161 entities 

will be subject annually to new recordkeeping and reporting requirements 

under revised Reliability Standard 

FAC–001–3, with no other increase in 

the cost of compliance. 


Pmangrum on DSK3GDR082PROD with RULES
Federal Register / Vol. 82, No. 185 / Tuesday, September 26, 2017 / Rules and Regulations 44731 

80U.S. Small Business Administration, A Guide 

for Government Agencies How to Comply with the 

Regulatory Flexibility Act, at 18 (May 2012), https:// www.sba.gov/sites/default/files/advocacy/rfaguide_

0512_0.pdf. 

53. Even assuming that the one-time 

cost of compliance for administering the 

change from Reliability Standard BAL– 

005–0.2b to BAL–005–1 is an annual 

cost, and assuming that all of the 

entities affected by the revisions to both 

BAL–005 and FAC–001 qualify as small 

entities, the estimated total annual cost 

to the industry as a whole is minimal 

($19,055.90), and the average cost per 

affected entity is $118.36. 

54. According to SBA guidance, the 

determination of significance of impact 

‘‘should be seen as relative to the size 

of the business, the size of the 

competitor’s business, and the impact 

the regulation has on larger 

competitors.’’ 80 The Commission does 

not consider the estimated burden to be 

a significant economic impact. As a 

result, the Commission certifies that the 

revised Reliability Standards will not 

have a significant economic impact on 

a substantial number of small entities. 

VI. Document Availability 

55. 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. 

56. 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 of this 

document, excluding the last three 

digits, in the docket number field. 

57. 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 e-mail at ferconlinesupport@ferc.gov, 

or the Public Reference Room at (202) 

502–8371, TTY (202) 502–8659. Email 

the Public Reference Room at 

public.referenceroom@ferc.gov. 

VII. Effective Date and Congressional 

Notification 

These regulations are effective 

November 27, 2017. 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. 

By the Commission. 

Issued: September 20, 2017 

Nathaniel J. Davis, Sr., 

Deputy Secretary. 

Appendix 

List of Commenters 

Abbreviation Commenter 

NERC .................................................................................................. North American Electric Reliability Corporation. 

Trade Associations .............................................................................. Edison Electric Institute, American Public Power Association, and Large 

Public Power Council. 

BPA ..................................................................................................... Bonneville Power Administration. 

Idaho Power ........................................................................................ Idaho Power Company. 

Appelbaum .......................................................................................... Jonathan Appelbaum. 

[FR Doc. 2017–20554 Filed 9–25–17; 8:45 am] 

BILLING CODE 6717–01–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 117 

[Docket No. USCG–2017–0474] 

RIN 1625–AA09 

Drawbridge Operation Regulation; 

Willamette River, Portland, OR 

AGENCY: Coast Guard, DHS. 

ACTION: Temporary interim rule with 

request for comments. 

SUMMARY: The Coast Guard is modifying 

the operating schedule that governs the 

Morrison Bridge across the Willamette 

River, mile 12.8, at Portland, Oregon. 

The temporary interim rule is necessary 

to accommodate Multnomah County’s 

(bridge owner) unexpected extension of 

time required to replace the bridge 

decking. This temporary rule is 

necessary due to the amount of days 

requested by the bridge owner. The 

active deviation expires at the 180th 

day, and the Coast Guard does not 

approve back-to-back deviations. 

DATES: This temporary interim rule is 

effective from 7 p.m. on September 27, 

2017, through 7 p.m. on November 12, 

2017. 

Comments and related material must 

reach the Coast Guard on or before 

October 26, 2017. 

ADDRESSES: You may submit comments 

or view documents mentioned in this 

preamble as being available in the 

docket, go to http://

www.regulations.gov, type USCG–2017– 

0474 in the ‘‘SEARCH’’ box and click 

‘‘SEARCH.’’ Click on Open Docket 

Folder on the line associated with this 

rulemaking. 

See the ‘‘Public Participation and 

Request for Comments’’ portion of the 

SUPPLEMENTARY INFORMATION section 

below for instructions on submitting 

comments. 

FOR FURTHER INFORMATION CONTACT: If 

you have questions on this interim rule, 

call or email Mr. Steven Fischer, Bridge 

Administrator, Thirteenth Coast Guard 

District; telephone 206–220–7282, email 

d13-pf-d13bridges@uscg.mil. 

SUPPLEMENTARY INFORMATION:

I. Table of Abbreviations 

CFR Code of Federal Regulations 

DHS Department of Homeland Security 

FR Federal Register 

OMB Office of Management and Budget 

NPRM Notice of Proposed Rulemaking 

§ Section 

U.S.C. United States Code 

II. Background Information and 

Regulatory History 

On June 23, 2016, we published a 

temporary deviation entitled 

Drawbridge Operation Regulation; 

Willamette River, Portland, OR, in the 

Federal Register (81 FR 40813), where 

we did not request comments. However, 

we conducted a public outreach in May 

2016 and did not receive any objections. 

No complaints have been submitted 


Pmangrum on DSK3GDR082PROD with RULES