Document ID: FERC-2010-1890-0001
Agency: ferc
Document Type: Proposed Rule
Title: Interpretation of Protection System Reliability Standard
Posted Date: 2010-12-27T05:00Z

[Federal Register Volume 75, Number 247 (Monday, December 27, 2010)]
[Proposed Rules]
[Pages 81152-81157]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-32356]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

18 CFR Part 40

[Docket No. RM10-5-000]

Interpretation of Protection System Reliability Standard

December 16, 2010.
AGENCY: Federal Energy Regulatory Commission, Energy.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The North American Electric Reliability Corporation (NERC) has 
submitted a petition (Petition) requesting approval of NERC's 
interpretation of Requirement R1 of Commission-approved Reliability 
Standard PRC-005-1 (Transmission and Generation Protection System 
Maintenance and Testing). The Commission proposes to accept the NERC 
proposed interpretation of Requirement R1 of Reliability Standard PRC-
005-1, and proposes to direct NERC to develop modifications to the PRC-
005-1 Reliability Standard, as discussed below, through its Reliability 
Standards development process to address gaps in the Protection System 
maintenance and testing standard, highlighted by the proposed 
interpretation.

DATES: Comments are due February 25, 2011.

ADDRESSES: You may submit comments, identified by docket number and in 
accordance with the requirements posted on the Commission's Web site, 
http://www.ferc.gov. Comments may be submitted by any of the following 
methods:
     Agency Web Site: Documents created electronically using 
word processing software should be filed in native applications or 
print-to-PDF format and not in a scanned format, at http://www.ferc.gov.doc-filing/efiling.asp.
     Mail/Hand Delivery: Commenters unable to file comments 
electronically must mail or hand deliver an original of their comments 
to: Federal Energy Regulatory Commission, Secretary of the Commission, 
888 First Street, NE., Washington, DC 20426.

FOR FURTHER INFORMATION CONTACT: Ron LeComte (Legal Information), 
Office of the General Counsel, 888 First Street, NE., Washington, DC 
20426. 202-502-8405. Ron.lecomte@ferc.gov.
    Danny Johnson (Technical Information), Office of Electric 
Reliability, Division of Reliability Standards, 888 First Street, NE., 
Washington, DC 20426. 202-502-8892. Danny.johnson@ferc.gov.

SUPPLEMENTARY INFORMATION: 

    NERC submitted the Petition requesting approval of NERC's 
interpretation of Requirement R1 of Commission-approved Reliability 
Standard PRC-005-1 (Transmission and Generation Protection System 
Maintenance and Testing). NERC developed the interpretation in response 
to a request for interpretation submitted to NERC by the Regional 
Entities Compliance Monitoring Processes Working Group (Working 
Group).\1\ The Commission proposes to accept the NERC proposed 
interpretation of Requirement R1 of Reliability Standard

[[Page 81153]]

PRC-005-1, and proposes to direct NERC to develop modifications to the 
PRC-005-1 Reliability Standard, as discussed below, through its 
Reliability Standards development process to address gaps in the 
Protection System maintenance and testing standard highlighted by the 
proposed interpretation, as discussed below. The Commission seeks 
comments on its proposal.
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    \1\ The Working Group is a subcommittee of the Regional Entity 
Management Group which consists of the executive management of the 
eight Regional Entities.
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I. Background

    2. Section 215 of the Federal Power Act (FPA) requires a 
Commission-certified Electric Reliability Organization (ERO) to develop 
mandatory and enforceable Reliability Standards, which are subject to 
Commission review and approval.\2\ Specifically, the Commission may 
approve, by rule or order, a proposed Reliability Standard or 
modification to a Reliability Standard if it determines that the 
Standard is just, reasonable, not unduly discriminatory or 
preferential, and in the public interest.\3\ Once approved, the 
Reliability Standards may be enforced by the ERO, subject to Commission 
oversight, or by the Commission independently.\4\
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    \2\ 16 U.S.C. 824.
    \3\ Id. 824o(d)(2).
    \4\ Id. 824o(e)(3).
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    3. Pursuant to section 215 of the FPA, the Commission established a 
process to select and certify an ERO,\5\ and subsequently certified 
NERC.\6\ On April 4, 2006, NERC submitted to the Commission a petition 
seeking approval of 107 proposed Reliability Standards. On March 16, 
2007, the Commission issued a Final Rule, Order No. 693,\7\ approving 
83 of the 107 Reliability Standards, including Reliability Standard 
PRC-005-1. In addition, pursuant to section 215(d)(5) of the FPA,\8\ 
the Commission directed NERC to develop modifications to 56 of the 83 
approved Reliability Standards, including PRC-005-0.\9\
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    \5\ Rules Concerning Certification of the Electric Reliability 
Organization; and Procedures for the Establishment, Approval, and 
Enforcement of Electric Reliability Standards, Order No. 672, FERC 
Stats. & Regs. ] 31,204, order on reh'g, Order No. 672-A, FERC 
Stats. & Regs. ] 31,212 (2006).
    \6\ North American Electric Reliability Corp., 116 FERC 
 61,062, order on reh'g & compliance, 117 FERC ] 61,126 
(2006), aff'd sub nom. Alcoa, Inc. v. FERC, 564 F.3d 1342 (DC Cir. 
2009).
    \7\ Mandatory Reliability Standards for the Bulk-Power System, 
Order No. 693, FERC Stats. & Regs. ] 31,242, order on reh'g, Order 
No. 693-A, 120 FERC ] 61,053 (2007).
    \8\ 16 U.S.C. 824o(d)(5).
    \9\ Order No. 693, FERC Stats. & Regs. ] 31,242 at P 1475.
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    4. NERC's Rules of Procedure provide that a person that is 
``directly and materially affected'' by Bulk-Power System reliability 
may request an interpretation of a Reliability Standard.\10\ In 
response, the ERO will assemble a team with relevant expertise to 
address the requested interpretation and also form a ballot pool. 
NERC's Rules of Procedure provide that, within 45 days, the team will 
draft an interpretation of the reliability standard and submit it to 
the ballot pool. If approved by the ballot pool and subsequently by the 
NERC Board of Trustees (Board), the interpretation is appended to the 
Reliability Standard and filed with the applicable regulatory 
authorities for approval.
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    \10\ NERC Rules of Procedure, Appendix 3A, Reliability Standards 
Development Procedure, Version 6.1, at 26-27 (2007).
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II. Reliability Standard PRC-005-1

    5. The purpose of PRC-005-1 is to ``ensure all transmission and 
generation Protection Systems affecting the reliability of the Bulk 
Electric System (BES) are maintained and tested.'' In particular, 
Requirement R1, requires that:
    R1. Each Transmission Owner and any Distribution Provider that owns 
a transmission Protection System and each Generator Owner that owns a 
generation Protection System shall have a Protection System maintenance 
and testing program for Protection Systems that affect the reliability 
of the BES. The program shall include:
    R1.1. Maintenance and testing intervals and their basis.
    R1.2. Summary of maintenance and testing procedures.
    6. NERC defines ``Protection System'' as follows: ``Protective 
relays, associated communication systems, voltage and current sensing 
devices, station batteries and DC control circuitry.'' \11\
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    \11\ See NERC Glossary of Terms Used in Reliability Standards at 
http://www.nerc.com/docs/standards/rs/Glossary_of_Terms_2010April20.pdf.
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III. NERC Proposed Interpretation

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

--Communications equipment involved in power-line-carrier relaying;
--Communications equipment involved in various types of permissive 
protection system applications;
--Direct transfer-trip systems;
--Digital communication systems. * * * ''

[[Page 81154]]

    8. In support of its request for approval, NERC states that it 
believes that this interpretation both fairly represents the language 
of the Reliability Standard and clarifies what components should be 
included in the maintenance and testing programs specified in the 
requirement. NERC states that this interpretation supports the 
reliability of the Bulk-Power System by providing greater clarity 
regarding the components that make up a Protection System as defined in 
the NERC Glossary of Terms.
    9. NERC states that an interpretation of a Reliability Standard 
requirement cannot expand the intent or meaning of the requirement.\12\ 
As such, NERC states that any modifications to the language in the 
requirements must be processed through the NERC Reliability Standards 
Development Procedure, Version 6.1. With this in mind, NERC further 
states that it must clarify the requirement language in PRC-005-1a to 
provide a complete framework for maintenance and testing of equipment 
necessary to ensure the reliability of the Bulk Power System. NERC 
states that this activity is already underway in the scope of Project 
2007-17--Protection System Maintenance and Testing.\13\
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    \12\ NERC Request for Approval of Interpretation at 8.
    \13\ NERC Project 2007-17, Protection System Maintenance and 
Testing proposes to revise the definition of Protection System as 
``protective relays which respond to electrical quantities, 
communication systems necessary for correct operation of protective 
functions, voltage and current sensing devices providing inputs to 
protective relays, station dc supply associated with protective 
functions (including station batteries, battery chargers, and non-
battery-based dc supply), and control circuitry associated with 
protective functions through the trip coils(s) of the circuit 
breakers or other interrupting devices.''
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IV. Discussion

    10. The Commission proposes to accept NERC's proposed 
interpretation of Reliability Standard PRC-005-1 Requirement R1. As 
discussed above, NERC's Glossary defines ``Protection System'' as: 
``Protective relays, associated communication systems, voltage and 
current sensing devices, station batteries and DC control circuitry.'' 
NERC's proposed interpretation essentially identifies what equipment is 
considered to be a ``protective relay,'' ``associated communication 
system,'' ``sensing device,'' or ``station battery.'' None of these 
terms or phrases within the NERC definition of ``Protection System'' 
are further defined any where else. NERC's interpretation provides 
further meaning to these phrases, is not inconsistent with the language 
of the Reliability Standard and, therefore, appears reasonable. 
Further, the interpretation should assist in providing a consistent 
understanding of what constitutes a ``Protection System'' for those 
entities that must comply with Reliability Standard PRC-005-1. 
Accordingly, we proposed to approve NERC's interpretation.
    11. However, we are concerned that the proposed interpretation 
highlights a gap in the required Protection System maintenance and 
testing pursuant to Requirement R1 of PRC-005-1.\14\ In support of our 
concern, we note that the NERC Glossary includes protective relays 
within the definition of Protection System. As discussed below, we 
believe that all components that serve in some protective capacity to 
ensure reliable operation of the Bulk-Power System should be included 
within the definition of ``Protection System'' and should be maintained 
and tested accordingly--not just the limited subset identified in the 
NERC interpretation. We note that NERC's practice prior to mandatory 
and enforceable Reliability Standards included such elements, and we 
believe that that understanding should be restored in either the 
definition or the Reliability Standard. In particular, prior to the 
Version 0 standards, NERC's Compliance Template for NERC Planning 
Standard III.A.M4--System Protection and Control, Transmission 
Protection System, S4 (Protection system maintenance and testing 
programs shall be developed and implemented) stated that 
``[t]ransmission system protection identification [components] shall 
include, but are not limited to; relays, instrument transformers, 
communication systems where appropriate, and batteries'' (emphasis 
added).\15\ The ``but are not limited to'' language was not translated 
into the Version 0 Reliability Standards that were filed for Commission 
approval. In addition to NERC's Glossary definition, the Institute of 
Electronics and Electrical Engineers (IEEE) defines ``protective 
relay'' as a relay whose ``function is to detect defective lines or 
apparatus or other power system conditions of an abnormal or dangerous 
nature and to initiate appropriate control circuit action.'' Therefore, 
to prevent a gap in reliability, any component that detects any 
quantity needed to take an action, or that initiates any control action 
(initial tripping, reclosing, lockout, etc.) affecting the reliability 
of the Bulk-Power System should be included as a component of a 
Protection System. Accordingly, to address our concern, pursuant to 
section 215(d)(5) of the FPA, we propose to direct NERC to develop a 
modification to the Reliability Standard to include any component or 
device that is designed to detect defective lines or apparatuses or 
other power system conditions of an abnormal or dangerous nature and to 
initiate appropriate control circuit actions.
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    \14\ Because the term ``Protection System'' is present in other 
approved Reliability Standards, the interpretation affects other 
Reliability Standards not addressed within the scope of the proposed 
interpretation.
    \15\ The Requirement R1.1 provisions in the development of the 
Version 0 definition of Protection System maintenance and testing 
program requirements included:
    R1.1. Transmission protection system identification shall 
include but are not limited to (emphasis added):
    R1.1.1. Relays.
    R1.1.2. Instrument transformers.
    R1.1.3. Communications systems, where appropriate.
    R1.1.4. Batteries.
    R1.2. Documentation of maintenance and testing intervals and 
their basis.
    R1.3. Summary of testing procedure.
    R1.4. Schedule for system testing.
    R1.5. Schedule for system maintenance.
    R1.6. Date last tested/maintained.
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A. Request 2

    12. In response to Request 2, NERC stated that the existing 
definition of ``Protection System'' ``does not include auxiliary 
relays,'' and that auxiliary relays need only be maintained if an 
entity's maintenance and testing program ``for DC control circuits 
involves maintenance and testing of imbedded auxiliary relays.'' 
Further, the interpretation excludes the maintenance of all devices 
that ``respond to quantities other then electrical quantities'' and, 
specifically, sudden pressure relays. We are concerned that these 
exclusions contradict the purpose statement of PRC-005-1, which 
provides that ``all transmission and generation Protection Systems 
affecting the reliability of the BES are maintained and tested,'' and, 
as discussed below, will result in a gap in the maintenance and testing 
of Protection Systems affecting the reliability of the Bulk-Power 
System.
    13. If auxiliary relays are included within the Protection System, 
in conjunction with other protective relays (e.g., as a contact 
multiplier or interface between dissimilar protective systems), or as 
part of the Protection System scheme (e.g., as the relay that initiates 
a protective action for Bulk-Power System elements), they must be 
maintained and tested to prevent a gap in the reliability affecting the 
Bulk-Power System. This requirement is consistent with NERC's 
recommendation of Protection System components specified for 
performance

[[Page 81155]]

tests based on NERC's historical standards, and experience from system 
events.\16\ Components include protective relays, AC current and 
voltage sources, communication channel, DC control circuitry, auxiliary 
relay, breaker trip coil, and DC source as components of a Protection 
System. This requirement is also consistent with the Commission's 
understanding of the term ``protective relay'' used in the NERC 
Glossary definition of Protection System as including all of the 
individual devices that are either programmed or set to respond to 
specific conditions, provide input as to the status of facilities, 
provide or receive signals from communication channels, and initiate 
actions as required to assure faults, other abnormal conditions, and 
any other automatic action associated with a fault or abnormal action 
intended to assure reliability. Auxiliary relays that are used either 
within the DC control circuitry of a Protection System or in 
conjunction with other Protective System components,\17\ such as those 
used as part of the communication channels to provide or receive 
signals to interface with the DC control circuitry, and are necessary 
for the correct operation of the Protection System, and the failure to 
maintain the auxiliary relay will result in a gap in the maintenance 
and testing of Protection System affecting the reliability of the Bulk-
Power System.
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    \16\ See NERC Protection System Maintenance, A Technical 
Reference, September 13, 2007; NERC Protection System Reliability, 
Redundancy of Protection System Elements, November 2008.
    \17\ Such auxiliary relays may include lockout relays, timer 
relays, breaker status relays, and transfer trip output contacts 
which form the necessary logic and decisions of the Protection 
System that ultimately result in a trip or reclose of a Bulk-Power 
System element through the trip coil(s) of the circuit breaker or 
other interrupting devices.
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    14. As noted previously, we also are concerned that the proposed 
interpretation excludes non-electrical sensing relays. ``Protective 
relays'' are listed as a component in the NERC definition of 
``Protection System.'' Under a plain reading, the term ``protective'' 
describes a relay that serves to protect the Reliable Operation of the 
Bulk-Power System, and thus includes all relays with no stipulation or 
requirements on device inputs. Some protective relays that do not 
respond to electric quantities (e.g., sudden pressure relays) 
nevertheless should be considered as part of the Protection System 
because they can be crucial for ensuring reliable operation. If a 
component is designed to sense or take action against an abnormal 
system condition that will affect the reliable operation of the Bulk-
Power System, excluding that component results in a gap in the 
maintenance and testing of relays affecting the reliability of the 
Bulk-Power System. Accordingly, pursuant to section 215(d)(5) of the 
FPA, we propose that NERC propose a modification to the Reliability 
Standard to address our concern. Specifically, we propose to direct 
NERC to include any device, including auxiliary and backup protection 
devices, that is designed to sense or take action against any abnormal 
system condition that will affect reliable operation.

B. Request 3

    15. In request 3, the Working Group asks whether Requirement R1 
requires maintenance and testing of transmission line re-closing 
relays. Reclosing relays are typically used on the Bulk-Power System to 
address concerns with system stability, system security, or continuity 
of service, and must be maintained to ensure correct operation.\18\ In 
addition, because the operation of such high-speed reclosing relays is 
usually automatic and within one second of the tripping of the Bulk-
Power System element,\19\ the operation of these relays must also be 
coordinated with the initial tripping of the Bulk-Power System element. 
A misoperating or miscoordinated reclosing relay may result in the 
reclosure of a Bulk-Power System element back onto a fault or that a 
misoperating or miscoordinated reclosing relay may fail to operate 
after a fault has been cleared, thus failing to restore the element to 
service. As a result, not only is damage to the Bulk-Power System 
element a concern, but where misoperation and miscoordination is an 
issue, the stability/reliability of the Bulk-Power System is 
threatened. While a reclosing relay is not identified as a specific 
component of the Protection System, if it either is used in 
coordination with a Protection System to achieve or meet system 
performance requirements established in other Commission--approved 
Reliability Standards,\20\ or can exacerbate fault conditions when not 
properly maintained and coordinated,\21\ we are concerned that 
excluding the maintenance and testing of these reclosing relays will 
result in a gap in the maintenance and testing of relays affecting the 
reliability of the Bulk-Power System. Accordingly, pursuant to section 
215(d)(5) of the FPA, we propose that NERC propose a modification to 
the Reliability Standard to include the maintenance and testing of 
reclosing relays affecting the reliability of the Bulk-Power System.
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    \18\ We further note that the operation of reclosing relays are 
also used in the derivation of Interconnection Reliability Operating 
Limits (IROLs) if high speed reclosing is part of the protection 
scheme associated with the transmission lines, which system 
operators use in real-time to maintain reliable operation of the 
Bulk-Power System.
    \19\ High-speed reclosing is generally not used for certain 
Bulk-Power System elements, fault types, and conditions, e.g., 
transformers and underground cables.
    \20\ For example, they may be needed to meet the performance 
requirement of the TPL (transmission planning) Reliability 
Standards.
    \21\ One such outage occurred in ReliabilityFirst resulting in 
the loss of over 4,000 MW of generation and multiple 765 kV lines.
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C. Request 4

    16. In Request 4, the Working Group asks whether maintenance and 
testing of the entire DC control circuitry is required under 
Requirement R1. As discussed above, we understand that maintenance and 
testing of DC control circuitry includes all components of DC control 
circuitry necessary for ensuring Reliable Operation. For a Protection 
System to operate reliably, the DC control circuitry must both have 
appropriate current carrying capability and be insulated sufficiently 
to maintain appropriate voltages within the protection system. We are 
concerned that not establishing the specific requirements relative to 
the scope and/or methods for a maintenance and testing program for the 
DC circuitry results in a gap in the maintenance and testing of 
Protection System components affecting the reliability of the Bulk-
Power System. Accordingly, pursuant to section 215(d)(5) of the FPA, we 
propose to direct NERC to develop a modification to the Reliability 
Standard to address our concern. Specifically, we propose to direct 
NERC to develop a modification to the Reliability Standard that 
explicitly includes maintenance and testing of all DC control circuitry 
that is necessary to ensure proper operation of the Protection System, 
including voltage and continuity.

D. Conclusion

    17. As discussed above, we propose to accept the proposed 
interpretation. However, we are concerned that there are gaps in 
Protection System maintenance and testing, as highlighted by the 
interpretation. To address our concerns, the Commission proposes to 
direct NERC to develop modifications to the PRC-005-1 Reliability 
Standards through its Reliability Standards development process.

[[Page 81156]]

V. Information Collection Statement

    18. The Office of Management and Budget (OMB) regulations require 
that OMB approve certain reporting and recordkeeping (collections of 
information) imposed by an agency.\22\ The information contained here 
is also subject to review under section 3507(d) of the Paperwork 
Reduction Act of 1995.\23\
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    \22\ 5 CFR 1320.11.
    \23\ 44 U.S.C. 3507(d).
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    19. As stated above, the Commission previously approved, in Order 
No. 693, the Reliability Standard that is the subject of the current 
Notice of Proposed Rulemaking (NOPR). This NOPR accepts an 
interpretation of the currently approved Reliability Standard and does 
not change this standard. The interpretation of the current Reliability 
Standard at issue in this rulemaking is not expected to change the 
reporting burden nor impose any additional information collection 
requirements.
    20. For the purposes of reviewing this interpretation, the 
Commission seeks information concerning whether the interim 
interpretation as approved will cause respondents to alter reporting 
frequencies and potentially impose an additional burden.
    21. We will submit this proposed rule to OMB for informational 
purposes.
    Title: Mandatory Reliability Standards for the Bulk-Power System.
    Action: Proposed Collection.
    OMB Control No.: 1902-0244.
    Respondents: Businesses or other for-profit institutions; not-for-
profit institutions.
    Frequency of Responses: On Occasion.
    Necessity of the Information: This proposed rule would approve an 
interpretation of the specific requirements of a Commission-approved 
Reliability Standard. The proposed rule would find the interpretation 
just, reasonable, not unduly discriminatory or preferential, and in the 
public interest.
    22. 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, phone: (202) 502-8663, 
fax: (202) 273-0873, e-mail: data.clearance@ferc.gov]. For submitting 
comments concerning the collection(s) of information and the associated 
burden estimate(s), please send your comments to the contact listed 
above and to the Office of Information and Regulatory Affairs, Office 
of Information and Regulatory Affairs, Washington, DC 20503 [Attention: 
Desk Officer for the Federal Energy Regulatory Commission, phone (202) 
395-7345, fax: (202) 395-7285, e-mail: oira_submission@omb.eop.gov].

VI. Environmental Analysis

    23. 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.\24\ 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.\25\ The actions proposed 
herein fall within this categorical exclusion in the Commission's 
regulations.
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    \24\ Regulations Implementing the National Environmental Policy 
Act, Order No. 486, FERC Stats. & Regs. ] 30,783 (1987).
    \25\ 18 CFR 380.4(a)(2)(ii).
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VII. Regulatory Flexibility Act

    24. The Regulatory Flexibility Act of 1980 (RFA) \26\ generally 
requires a description and analysis of final rules that will have 
significant economic impact on a substantial number of small entities. 
The RFA mandates consideration of regulatory alternatives that 
accomplish the stated objectives of a proposed rule and that minimize 
any significant economic impact on a substantial number of small 
entities. The Small Business Administration's (SBA) Office of Size 
Standards develops the numerical definition of a small business.\27\ 
The SBA has established a size standard for electric utilities, stating 
that a firm is small if, including its affiliates, it is primarily 
engaged in the transmission, generation and/or distribution of electric 
energy for sale and its total electric output for the preceding twelve 
months did not exceed four million megawatt hours.\28\ The RFA is not 
implicated by this NOPR because the interpretation discussed herein is 
being accepted. With no changes to the Reliability Standard as 
approved, the proposal in this NOPR will not have a significant 
economic impact on a substantial number of small entities.
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    \26\ 5 U.S.C. 601-612.
    \27\ 13 CFR 121.201.
    \28\ Id. n.1.
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    25. In Order No. 693, the Commission adopted policies to minimize 
the burden on small entities, including approving the ERO compliance 
registry process to identify those entities responsible for complying 
with mandatory and enforceable Reliability Standards. The ERO registers 
only those distribution providers or load serving entities that have a 
peak load of 25 MW or greater and are directly connected to the bulk 
electric system or are designated as a responsible entity as part of a 
required under-frequency load shedding program or a required under-
voltage load shedding program. Similarly, for generators, the ERO 
registers only individual units of 20 MVA or greater that are directly 
connected to the bulk electric system, generating plants with an 
aggregate rating of 75 MVA or greater, any blackstart unit material to 
a restoration plan, or any generator that is material to the 
reliability of the Bulk-Power System. Further, the ERO will not 
register an entity that meets the above criteria if it has transferred 
responsibility for compliance with mandatory Reliability Standards to a 
joint action agency or other organization. The Commission estimated 
that the Reliability Standards approved in Order No. 693 would apply to 
approximately 682 small entities (excluding entities in Alaska and 
Hawaii), but also pointed out that the ERO's Compliance Registry 
Criteria allow for a joint action agency, generation and transmission 
(G&T) cooperative or similar organization to accept compliance 
responsibility on behalf of its members. Once these organizations 
register with the ERO, the number of small entities registered with the 
ERO will diminish and, thus, significantly reduce the impact on small 
entities.\29\
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    \29\ To be included in the compliance registry, the ERO 
determines whether a specific small entity has a material impact on 
the Bulk-Power System. If these small entities should have such an 
impact then their compliance is justifiable as necessary for Bulk-
Power System reliability.
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    26. Finally, as noted above, this NOPR accepts the interpretation 
of the PRC-005-0 Reliability Standard, which was already approved in 
Order No. 693, and, therefore, does not create an additional regulatory 
impact on small entities.

VIII. Comment Procedures

    27. The Commission invites interested persons to submit comments on 
the matters and issues proposed in this notice to be adopted, including 
any related matters or alternative proposals that commenters may wish 
to discuss. Comments are due February 25, 2011. You may submit 
comments, identified by docket number and in accordance with the 
requirements posted on the Commission's Web site, http://www.ferc.gov. 
Comments may be

[[Page 81157]]

submitted by any of the following methods:
     Agency Web Site: Documents created electronically using 
word processing software should be filed in native applications or 
print-to-PDF format and not in a scanned format, at http://www.ferc.gov/docs-filing/efiling.asp.
     Mail/Hand Delivery: Commenters unable to file comments 
electronically must mail or hand deliver an original copy of their 
comments to: Federal Energy Regulatory Commission, Secretary of the 
Commission, 888 First Street, NE., Washington, DC 20426. These 
requirements can be found on the Commission's Web site, see, e.g., the 
``Quick Reference Guide for Paper Submissions,'' available at http://www.ferc.gov/docs-filing/efiling.asp, or via phone from FERC Online 
Support at 202-502-6652 or toll-free at 1-866-208-3676.
    28. All comments will be placed in the Commission's public files 
and may be viewed, printed, or downloaded remotely as described in the 
Document Availability section below. Commenters on this proposal are 
not required to serve copies of their comments on other commenters.

IX. Document Availability

    29. In addition to publishing the full text of this document in the 
Federal Register, the Commission provides all interested persons an 
opportunity to view and/or print the contents of this document via the 
Internet through FERC's Home Page (http://www.ferc.gov) and in FERC's 
Public Reference Room during normal business hours (8:30 a.m. to 5 p.m. 
Eastern time) at 888 First Street, NE., Room 2A, Washington, DC 20426.
    30. From FERC's Home Page on the Internet, this information is 
available on eLibrary. The full text of this document is available on 
eLibrary in PDF and Microsoft Word format for viewing, printing, and/or 
downloading. To access this document in eLibrary, type the docket 
number excluding the last three digits of this document in the docket 
number field.
    31. User assistance is available for eLibrary and the FERC's Web 
site during normal business hours from FERC Online Support at 202-502-
6652 (toll free at 1-866-208-3676) or e-mail at 
ferconlinesupport@ferc.gov, or the Public Reference Room at (202) 502-
8371, TTY (202) 502-8659. E-mail the Public Reference Room at 
public.referenceroom@ferc.gov.

List of Subjects in 18 CFR Part 40

    Electric power; Electric utilities; Reporting and recordkeeping 
requirements by direction of the Commission.

Kimberly D. Bose,
Secretary.
[FR Doc. 2010-32356 Filed 12-23-10; 8:45 am]
BILLING CODE 6717-01-P