Document ID: FERC-2011-0417-0001
Agency: ferc
Document Type: Rule
Title: System Restoration Reliability Standards
Posted Date: 2011-03-23T04:00Z

[Federal Register Volume 76, Number 56 (Wednesday, March 23, 2011)]
[Rules and Regulations]
[Pages 16277-16285]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-6739]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

18 CFR Part 40

[Docket No. RM10-16-000; Order No. 749]

System Restoration Reliability Standards

AGENCY: Federal Energy Regulatory Commission, DOE.

ACTION: Final rule.

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SUMMARY: Under section 215 of the Federal Power Act, the Commission 
approves three Emergency Operations and Preparedness (EOP) Reliability 
Standards, EOP-001-1 (Emergency Operations Planning), EOP-005-2 (System 
Restoration from Blackstart Resources), and EOP-006-2 (System 
Restoration Coordination) as well as the definition of the term 
``Blackstart Resource'' submitted to the Commission for approval by the 
North American Electric Reliability Corporation (NERC), the Electric 
Reliability Organization certified by the Commission. The approved 
Reliability Standards require transmission operators, generation 
operators, and certain transmission owners and distribution providers 
to ensure that plans, facilities and personnel are prepared to enable 
system restoration from Blackstart Resources and require reliability 
coordinators to establish plans and prepare personnel to enable 
effective coordination of the system restoration process. The 
Commission also approves the NERC's proposal to retire four existing 
EOP Reliability Standards and a definition that are replaced by the 
Standards and definition approved in this Final Rule.

DATES: Effective Date: This rule will become effective May 23,http://www.nerc.com/page.php?cid=2|20 2011.

FOR FURTHER INFORMATION CONTACT:
Terence Burke (Legal Information), Office of the General Counsel, 
Federal Energy Regulatory Commission, 888 First Street, NE., 
Washington, DChttp://www.nerc.com/page.php?cid=2|20 20426, (http://www.nerc.com/page.php?cid=2|202) 502-6498.
David O'Connor (Technical Information), Office of Electric Reliability, 
Division of Reliability Standards, Federal Energy Regulatory

[[Page 16278]]

Commission, 888 First Street, NE., Washington, DChttp://www.nerc.com/page.php?cid=2|20 20426, (http://www.nerc.com/page.php?cid=2|202) 502-
6695.

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

Final Rule

Issued March 17,http://www.nerc.com/page.php?cid=2|20 2011.
    1. Under section 215 of the Federal Power Act (FPA),\1\ the 
Commission approves three Emergency Operations and Preparedness (EOP) 
Reliability Standards, EOP-001-1 (Emergency Operations Planning), EOP-
005-2 (System Restoration from Blackstart Resources), and EOP-006-2 
(System Restoration Coordination) as well as the definition of the term 
``Blackstart Resource'' submitted to the Commission for approval by the 
North American Electric Reliability Corporation (NERC), the Electric 
Reliability Organization (ERO) certified by the Commission. The 
approved Reliability Standards require transmission operators, 
generation operators, and certain transmission owners and distribution 
providers to ensure that plans, facilities, and personnel are prepared 
to enable system restoration from Blackstart Resources and require 
reliability coordinators to establish plans and prepare personnel to 
enable effective coordination of the system restoration process. The 
Commission also approves NERC's proposal to retire four existing EOP 
Reliability Standards and the defined term ``Blackstart Capability 
Plan'' concurrent with the effectiveness of the Standards and the term 
Blackstart Resource approved in this Final Rule. In those jurisdictions 
where regulatory approval is required, Reliability Standard EOP-001-1 
will not become effective until the first day of the first calendar 
quarter three months after regulatory approval is obtained, and EOP-
005-2 and EOP-006-2 approved in this Final Rule will not become 
effective until 24 months after the first day of the first quarter 
after applicable regulatory approval.
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    \1\ 16 U.S.C. 824o.
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    2. ``Blackstart'' capability refers to the ability of a generating 
unit or station to start operating and delivering electric power 
without assistance from the electric system. Blackstart units are 
essential to restart generation and restore power to the grid in the 
event of an outage. As discussed below, NERC proposes to define 
``Blackstart Resource'' as ``a generating unit(s) and its associated 
set of equipment which has the ability to be started without support 
from the System or is designed to remain energized without connection 
to the remainder of the System, with the ability to energize a bus. * * 
*''
    3. In Order No. 693, the Commission determined that it would not 
take action on certain proposed Reliability Standards that required 
supplemental information from a Regional Entity. Such Reliability 
Standards refer to regional criteria or procedures that had not been 
submitted to the Commission for approval and, as such, are referred to 
as ``fill-in-the-blank'' standards.\2\ Pending Reliability Standard 
EOP-007-0 is one such fill-in-the-blank standard. The Reliability 
Standards approved herein provide a standardized, national approach to 
address the Commission's concerns regarding pending EOP-007-0, as set 
forth in Order No. 693. Thus, in addition to the retirement of certain 
currently effective EOP Reliability Standards, we also approve the 
withdrawal of pending Reliability Standard EOP-007-0.
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    \2\ Mandatory Reliability Standards for the Bulk-Power System, 
Order No. 693, 72 FR 16416 (Apr. 4,http://www.nerc.com/page.php?cid=2|20 2007), FERC Stats. & Regs. ] 
31,242, at P 297, order on reh'g, Order No. 693-A, 1http://www.nerc.com/page.php?cid=2|20 FERC ] 61,053 
(http://www.nerc.com/page.php?cid=2|2007).
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I. Background

    4. On March 16,http://www.nerc.com/page.php?cid=2|20 2007, the Commission issued Order No. 693, 
approving 83 of the 107 Reliability Standards filed by NERC,\3\ 
including the Reliability Standards: EOP-001-0, EOP-005-1, EOP-006-1, 
and EOP-009-0.\4\ The Commission neither approved nor remanded EOP-007-
0 because it applied only to regional reliability organizations, but 
Order No. 693 did provide guidance for the ERO's further consideration 
of the Reliability Standard.\5\ In addition, under section 215(d)(5) of 
the FPA, the Commission directed NERC to develop modifications to the 
EOP Reliability Standards to address certain issues identified by the 
Commission. At issue in the immediate proceeding are two new EOP 
standards, EOP-005-2 and EOP-006-2 that would replace the currently 
effective Reliability Standards EOP-005-1, EOP-006-1, and EOP-009-0, 
pending Standard EOP-007-0, and necessitate a conforming change in EOP-
001-0.
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    \3\ Id. P 304-1899.
    \4\ Id. P 542-676.
    \5\ Id. P 644.
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A. Currently Effective EOP Reliability Standards

Reliability Standard EOP-005-1
    5. Currently effective Reliability Standard EOP-005-1 requires 
transmission operators, balancing authorities, and reliability 
coordinators to have a restoration plan, test the plan, train operating 
personnel in the restoration plan, and have the ability to restore the 
Interconnection using the plans following a blackout. In Order No. 693, 
the Commission directed the ERO to develop, through the Reliability 
Standard development process, a modification to EOP-005-1 that 
identifies time frames for training and review of restoration plan 
requirements to simulate contingencies and prepare operators for 
anticipated and unforeseen events.\6\ The Commission also directed the 
ERO to consider various commenters' suggestions in future revisions of 
the Reliability Standard.\7\
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    \6\ Id. P 630.
    \7\ Id. P 628.
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Reliability Standard EOP-006-1
    6. In Order No. 693, the Commission also approved Reliability 
Standard EOP-006-1 addressing reliability coordination and system 
restoration. The Reliability Standard sets requirements for reliability 
coordinators during system restoration and requires that they have a 
coordinating role to ensure reliability is maintained during system 
restoration. Under section 215 of the FPA, the Commission directed the 
ERO to develop a modification to EOP-006-1 to ensure that the 
reliability coordinator is involved in the development and approval of 
system restoration plans.\8\
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    \8\ Id. P 638.
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Pending Reliability Standard EOP-007-0
    7. Pending Reliability Standard EOP-007-0 deals with establishing, 
maintaining and documenting regional blackstart capability plans. In 
Order No. 693, the Commission did not act on EOP-007-0 pending NERC's 
providing additional information.\9\ The Commission, however, directed 
the ERO to consider various commenters' suggestions relating to 
assigning compliance obligations directly to the entities that provide 
the pertinent data rather than to the Regional Entity, placing 
responsibility for the regional blackstart plan with the reliability 
coordinator, recognizing that nuclear units have no blackstart 
capability, revising the definition of a blackstart unit, and 
committing arrangements for coordinating blackstart capability to 
contracts.\10\
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    \9\  Id. P 297, 644.
    \10\ Id. P 642-643, 647.
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Reliability Standard EOP-009-0
    8. Currently effective Reliability Standard EOP-009-0 deals with 
implementing and documenting testing

[[Page 16279]]

of blackstart generating units. In Order No. 693, the Commission 
directed the ERO to consider suggestions for improvements raised during 
the comment period. One commenter stated the Reliability Standard 
should provide details on what constitutes a blackstart test and 
another stated that NERC should consolidate the Reliability Standard 
with EOP-007-0.\11\
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    \11\ Id. P 674, 676.
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B. NERC Petition

    9. In a December 31,http://www.nerc.com/page.php?cid=2|20 2009 filing (NERC Petition),\12\ NERC requests 
Commission approval of its proposed definition of the term ``Blackstart 
Resource'' and proposed Reliability Standards EOP-001-1 (Emergency 
Operating Planning),\13\ EOP-005-2 (System Restoration from Blackstart 
Resources), and EOP-006-2 (System Restoration Coordination). NERC also 
seeks to concurrently retire four currently effective Reliability 
Standards: EOP-001-0, EOP-005-1, EOP-006-1, and EOP-009-0 as well as 
the definition of ``Blackstart Capability Plan'' and withdraw pending 
Reliability Standard EOP-007-0.
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    \12\ North American Electric Reliability Corp., Dec. 31,http://www.nerc.com/page.php?cid=2|20 2009 
Petition for Approval of Three Emergency Preparedness and Operations 
Reliability Standards and One New Glossary Term and for Retirement 
of Five Existing Reliability Standards and One Glossary Term. The 
three Reliability standards are included as Exhibit A to NERC's 
Petition. In addition, under 18 CFR 40.3 of the Commission's 
regulations, all Commission-approved Reliability Standards are 
available on NERC's Web site at http://www.nerc.com/page.php?cid=2|20http://www.nerc.com/page.php?cid=2|20. See 18 CFR 40.3.
    \13\ Concurrent with its filing in this Docket, NERC filed a 
petition in Docket No. RM10-15-000 seeking approval of certain 
Interconnection Reliability Operations and Coordination (IRO) 
Reliability Standards. As part of its IRO filing, NERC proposed to 
retire Requirement R2 of EOP-001-0. Each petition proposes unique 
changes to EOP-001-0 reflecting the distinct issues addressed by the 
respective Reliability Standards drafting teams. In this Final Rule, 
the Commission is addressing Version 2 of EOP-001 contained in 
Exhibit B of the NERC Petition which reflects both the IRO and the 
EOP proposed changes.
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    10. NERC states that the proposed Reliability Standards ``represent 
significant revision and improvement from the current set of 
enforceable standards'' and address the Commission's directives in 
Order No. 693 related to the EOP standards.\14\ NERC explains that, 
among other enhancements, ``[t]he proposed revisions now clearly 
delineate the responsibilities of the Reliability Coordinator and 
Transmission Operator in the restoration process and restoration 
planning.'' \15\ NERC describes the proposed Reliability Standards as 
providing ``specific requirements for what must be in a restoration 
plan, how and when it needs to be updated and approved, what needs to 
be provided to operators and what training is necessary for personnel 
involved in restoration processes.'' \16\
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    \14\ NERC Petition at 4.
    \15\ Id. at 5.
    \16\ Id.
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Proposed Definition of Blackstart Resource
    11. NERC requests approval of the term ``Blackstart Resource'' and 
the concurrent retirement of the term ``Blackstart Capability Plan.'' 
The proposed definition of ``Blackstart Resource'' is:

    A generating unit(s) and its associated set of equipment which 
has the ability to be started without support from the System or is 
designed to remain energized without connection to the remainder of 
the System, with the ability to energize a bus, meeting the 
Transmission Operator's restoration plan needs for real and reactive 
power capability, frequency and voltage control, and that has been 
included in the Transmission Operator's restoration plan.

    The term ``Blackstart Capacity Plan'' is currently used solely in 
EOP-007-0 and EOP-009-0, both of which are replaced with proposed 
Reliability Standards EOP-005-2 and EOP-006-2.
Proposed Reliability Standard EOP-001-1
    12. Proposed Reliability Standard EOP-001-1 contains seven 
requirements for the stated purpose of requiring each transmission 
operator and balancing authority to develop, maintain, and implement a 
set of plans to mitigate operating emergencies and to coordinate these 
plans with other transmission operators, balancing authorities, and the 
reliability coordinator.\17\ It modifies EOP-001-0 by deleting 
Requirement R3.4, which requires transmission operators and balancing 
authorities to develop, maintain and implement restoration plans, 
because proposed Reliability Standards EOP-005-2 and EOP-006-2 
incorporate and expand upon this Requirement.
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    \17\ Reliability Standard EOP-001-1, Section A.3. (Purpose).
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Proposed Reliability Standard EOP-005-2
    13. Proposed Reliability Standard EOP-005-2 contains eighteen 
requirements for the stated purpose of ensuring that plans, facilities, 
and personnel are prepared to enable system restoration from Blackstart 
Resources, and to ensure reliability is maintained during restoration 
and priority is placed on restoring the Interconnection.\18\ The 
proposed Reliability Standard applies to transmission operators, 
generation operators, and transmission owners and distribution 
providers identified in the transmission operator's restoration plan. 
Requirement R1 requires each transmission operator to have a 
reliability coordinator-approved restoration plan utilizing Blackstart 
Resources and details the scope and elements of such a plan. 
Requirement R2 instructs each transmission operator to provide entities 
that have a role in the restoration plan with a description of their 
roles and tasks. Requirements R3 through R6 address annual plan 
reviews, updating practices, location of plans and plan verification. 
Following a disturbance, Requirements R7 and R8 provide guidance on 
following the plan or making needed adjustments and coordinating when 
re-synchronizing two systems together. Requirement R9 describes testing 
information the transmission operator must have to verify the 
Blackstart Resources meet required expectations. Requirements R10 
through R12 cover system restoration training requirements for system 
operators and field switching personnel. Blackstart Resource agreements 
between the transmission operator and generator operator, or mutually 
agreed upon procedures or protocols are addressed in Requirement R13. 
Duties of a generator owner with a Blackstart Resource are provided in 
Requirements R14 through R18, which address operating procedures, 
change notification, testing for each Blackstart Resource and training 
of operating personnel on Blackstart Resources. Proposed Reliability 
Standard EOP-005-2 is intended to supersede all of currently effective 
Reliability Standard EOP-005-1.
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    \18\ Reliability Standard EOP-005-2, Section A.4. (Purpose).
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Proposed Reliability Standard EOP-006-2
    14. Proposed Reliability Standard EOP-006-2 contains ten 
requirements with the stated purpose of ensuring that the reliability 
coordinator establishes plans and prepares personnel to enable 
effective coordination of the system restoration process, to maintain 
reliability during restoration, and to place priority on restoring the 
Interconnection.\19\ Requirement R1 requires reliability coordinators 
to have restoration plans that utilize Blackstart Resources and 
specifies the scope and elements of such plans. Requirement R2

[[Page 16280]]

covers distribution of the reliability coordinator's restoration plan. 
Requirements R3 through R5 provide for review of the reliability 
coordinator's restoration plan and the plans of each neighboring 
reliability coordinator and each transmission operator located in the 
reliability coordinator's area. Any conflicts between neighboring 
reliability coordinators' plans are to be resolved within thirty days, 
and transmission operators' plans shall be approved or disapproved, 
with stated reasons, within thirty days of receipt by the reliability 
coordinator. Requirement R6 requires that the reliability coordinator 
must maintain copies of restoration plans in its primary and backup 
control rooms. Requirements R7 and R8 describe the roles of reliability 
coordinators to coordinate restoration efforts and authorize re-
synchronization of ``island'' areas. Requirements R9 and R10 address 
training and participation in annual drills, exercises and simulations. 
Proposed Reliability Standard EOP-006-2 is intended to supersede all of 
currently effective Reliability Standard EOP-006-1.
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    \19\ Reliability Standard EOP-006-2, Section A.3. (Purpose).
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C. Notice of Proposed Rulemaking

    15. On November 17,http://www.nerc.com/page.php?cid=2|20 2010, the Commission issued its Notice of 
Proposed Rulemaking (NOPR) proposing to approve the three proposed EOP 
Reliability Standards, EOP-001-1, EOP-005-2, and EOP-006-2 and defined 
term Blackstart Resource (and the retirement of the four superseded 
standards, EOP-001-0, EOP-005-1, EOP-006-1, and EOP-009-0, the 
definition of ``Blackstart Capability Plan,'' and the ERO's withdrawal 
of EOP-007-0).\http://www.nerc.com/page.php?cid=2|20\ With respect to proposed Reliability Standard EOP-
005-2, the NOPR proposed to direct NERC to modify the Standard to 
address the Commission's concern regarding the periodic testing of 
telecommunication facilities needed to implement restoration plans. In 
addition, the Commission sought comment on: (i) What is intended by the 
term ``unique tasks'' as used in the context of proposed Requirement 
R11 of EOP-005-2; (ii) whether guidance should be provided regarding 
the term, and if so, how it should be provided; and (iii) whether those 
tasks should be indentified in each transmission operator's restoration 
plan. With respect to proposed Reliability Standard EOP-006-2, the NOPR 
sought comment as to why the Standard does not require reliability 
coordinators to maintain a database of Blackstart Resources as is 
required of Regional Entities under currently effective EOP-007-0 and 
whether such a requirement would be beneficial. The NOPR also sought 
comment on: (i) Whether reliability coordinators should be required to 
verify their restoration planning through actual events, steady state 
and dynamic simulations or testing; and (ii) how a transmission 
operator should proceed when its restoration plan is rejected by a 
reliability coordinator. Lastly, the NOPR proposed that the ERO collect 
data on the performance of system restoration exercises conducted by 
transmission operators and reliability coordinators to assist the ERO 
and Commission in identifying the effectiveness of restoration plans, 
establishing best practices, and determining the effects on personnel 
performance.
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    \http://www.nerc.com/page.php?cid=2|20\ System Restoration Reliability Standards, Notice of 
Proposed Rulemaking, 75 FR 71625 (Nov. 24,http://www.nerc.com/page.php?cid=2|20 2010), FERC Stats. & 
Regs. ] 32,666 (http://www.nerc.com/page.php?cid=2|2010).
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    16. In response to the NOPR, comments were filed by nine interested 
parties.\21\ These comments assisted us in the evaluation of the NERC's 
proposal. In the discussion below, we address the issues raised by 
these comments.
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    \21\ NERC, The Edison Electric Institute (EEI), American Public 
Power Association (APPA), the ISO/RTO Council (IRC), Pacificorp, 
City of Santa Clara, California (Santa Clara), Bonneville Power 
Administration (BPA), and NorthWestern Corporation (NorthWestern) 
filed comments. Wisconsin Electric Power Company filed supporting 
EEI's comments.
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II. Discussion

A. Approval of Proposed Reliability Standards

    17. In the NOPR, the Commission proposed to approve the three EOP 
Reliability Standards and the glossary term filed by NERC in this 
proceeding. None of the nine interested parties filing comments to the 
NOPR objects to such an approval. For the reasons described below, the 
Commission adopts the NOPR proposal and approves Reliability Standards 
EOP-001-1, EOP-005-2, and EOP-006-2 as well as the proposed glossary 
term ``Blackstart Resource'' as just, reasonable, not unduly 
discriminatory or preferential, and in the public interest.\22\ EOP-
005-2 and EOP-006-2 clarify the responsibilities of the reliability 
coordinator and transmission operator in the restoration process and 
restoration planning and address the Commission's directives in Order 
No. 693 related to the EOP Standards. By enhancing the rigor of the 
restoration planning process, the Reliability Standards represent an 
improvement from the current Standards and will improve the reliability 
of the Bulk-Power System. The Commission is not directing any 
modifications to the three new Reliability Standards. Nevertheless, as 
discussed below, commenters raised several issues for consideration, at 
the time these standards are next revisited, which we believe could 
improve these new Reliability Standards. The Commission also approves 
NERC retiring the four currently effective Reliability Standards, EOP-
001-0, EOP-005-1, EOP-006-1, and EOP-009-0 as well as the definition of 
``Blackstart Capability Plan'' and withdrawing pending Reliability 
Standard EOP-007-0 concurrent with the effectiveness of the EOP-001-1, 
EOP-005-2, and EOP-006-2 and the definition of the term ``Blackstart 
Resource.''
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    \22\ 16 U.S.C. 824o(d)(2).
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B. Vagueness of Term ``Unique Tasks''

    18. Requirement R11 of EOP-005-2 requires that a minimum of two 
hours of system restoration training be provided every two years to 
field switching personnel performing ``unique tasks'' associated with 
the transmission operator's restoration plan. In the NOPR, the 
Commission expressed concern that the applicable entities may not 
understand what the term ``unique tasks'' means. We requested comment 
on what is intended by that term and on whether guidance should be 
provided to the transmission operators, transmission owners, and 
distribution providers who are responsible for providing training. In 
addition, the NOPR sought comment as to whether the unique tasks should 
be identified in each transmission operator's restoration plan.
Comment
    19. NERC comments that the term ``unique tasks'' is not intended to 
have any meaning beyond the dictionary definition of the words. 
Everyday tasks of field switching personnel are not considered unique, 
but tasks not included in the person's normal duties (e.g., operation 
of a synchroscope) would be considered unique. NERC and APPA do not 
perceive a reliability benefit in requiring identification of unique 
tasks in restoration plans. NERC acknowledges that it could promote the 
development of guidance to aid entities in complying with Requirement 
R11.http://www.nerc.com/page.php?cid=2|20 20. EEI comments that while it would be difficult to define 
``unique tasks'' in a manner that could be broadly applied to affected 
entities, the standards drafting team believed that the term was 
clearly understood as a practical matter. Companies should be afforded 
discretion to determine how the term is defined within their 
restoration plans, but, to the extent that compliance issues arise, EEI 
would encourage NERC to consider developing compliance

[[Page 16281]]

guidance as needed. IRC also believes the term is generally understood 
by the applicable entities and that it is appropriate for each 
transmission operator's restoration plan to identify the particular 
tasks for which training is required.
    21. APPA states that the diversity of entities and their specific 
approaches to system restoration prevented the standard drafting team 
from developing guidance on the term but agrees that registered 
entities could benefit from a best practices document that provides 
examples of unique tasks.
    22. Santa Clara comments that a one-size-fits-all definition would 
not be helpful, and the affected entities should define unique tasks on 
a case-by-case basis. It agrees that unique tasks should be included 
within the transmission operator's restoration plan. Pacificorp 
comments that training should be provided to field switching personnel 
performing any restoration tasks associated with implementing the 
transmission operator's restoration plan. Addressing each sub-
Requirement of Requirement R1 would provide an appropriate framework 
for a system restoration training program. Pacificorp and NorthWestern 
oppose additional guidance or requirements in the Standard. BPA, on the 
other hand, is unsure what is intended by the term ``unique tasks'' and 
supports a specific definition to avoid any ambiguity.
Commission Determination
    23. Based on NERC's comment that the term ``unique tasks'' is to be 
understood in accordance with the normal meaning of the words and the 
majority of the commenters' assertions that the variety of approaches 
to system restoration precludes greater specificity, we find that the 
term conveys as much precision as circumstances allow. To the extent 
that it would be helpful to the affected entities to specify in a 
transmission operator's restoration plan which tasks are deemed unique, 
the entities are encouraged to do so, but the Commission does not 
require such specificity at this time.
    24. Both EEI and APPA recognize potential benefit in the 
development of further guidance as to the term ``unique tasks,'' and 
BPA is uncertain as to the meaning of the term and consequently unsure 
as to how to demonstrate compliance with its training obligation. NERC, 
in its comments about the term, states that it ``could promote the 
development of a guideline to aid registered entities in complying with 
Requirement R11.''\23\ The Commission notes that this Reliability 
Standard will not become effective for at least 24 months, during which 
time ambiguities in language or differences of opinion among affected 
entities may be resolved in practical ways. Once the Standard is 
effective, if industry determines that ambiguity with the term arises, 
it would be appropriate for NERC to consider its proposal to develop a 
guideline to aid entities in their compliance obligations.
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    \23\ NERC at 4-5.
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C. Telecommunication Facility Testing

    25. Requirement R5 of Reliability Standard EOP-005-1 provides for 
periodic testing of telecommunication facilities needed to implement 
restoration plans, but this Requirement has no counterpart in EOP-005-
2. In the NOPR, the Commission proposed requiring the ERO to develop a 
modification to EOP-005-2 to address the Commission's concern that 
entities involved in system restoration ensure restoration-specific 
telecommunications equipment, phone lists, and protocols are tested as 
part of ongoing restoration preparedness. The Commission further stated 
its concern that, in light of the importance of communication to the 
restoration process, testing should be done more frequently than during 
annual drills, exercises or simulations as is required under 
Reliability Standard EOP-005-1.
Comments
    26. Each of the commenters opposes adding a telecommunications 
requirement to EOP-005-2 on the basis that such a requirement would be 
redundant given Communications Reliability Standard COM-001-1.1, which 
requires testing of routine communication facilities on an on-going 
basis. Several comments noted that duplicative requirements can lead to 
potential confusion.
Commission Determination
    27. Reliability Standard COM-001-1 does not apply to generation 
operators or distribution providers.\24\ Further, we do not accept that 
each entity whose telecommunications facilities will be needed during 
the system restoration process is currently subject to COM-001-1.1 
Requirement R2 which provides that ``[e]ach Reliability Coordinator, 
Transmission Operator and Balancing Authority shall manage, alarm, test 
and/or actively monitor vital telecommunications facilities. Special 
attention shall be given to emergency telecommunications facilities and 
equipment not used for routine communications.''
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    \24\ Order No. 693, FERC Stats. & Regs. ] 31,242 at P 478-493.
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    28. NERC notes in its comments that the Reliability Coordination 
Standard Drafting Team is currently working on Projecthttp://www.nerc.com/page.php?cid=2|20 2006-06 to 
develop a set of revisions to Reliability Standard COM-001-1.1 to 
tighten requirements relating to communication capabilities. The 
Commission believes the objectives of this project in managing, 
alarming, testing and/or actively monitoring vital primary and 
emergency telecommunication facilities will close this gap in the 
Reliability Standard after it is completed and approved. Accordingly, 
consistent with NERC's comments on its current project and concerns not 
to create redundancy in development of Reliability Standards, NERC 
should close the gap in the applicability of the draft COM-001-2 so it 
addresses generation operators and distribution providers.

D. Emergency Operations Planning

    29. Reliability Standard EOP-005-2 requires each transmission 
operator to identify each blackstart resource and its characteristics, 
but this requirement has no counterpart for reliability coordinators in 
EOP-006-2. The Commission expressed concern and invited comment in the 
NOPR on whether the absence of a required list of its Blackstart 
Resources could deny the reliability coordinator a potentially useful 
tool in maintaining reliability.
Comments
    30. NERC notes that the transmission operator, not the reliability 
coordinator, maintains direct contact with the blackstart resources, 
and reliability coordinators have sufficient authority to request 
information needed to identify blackstart resources should such 
information be required. NERC, EEI, IRC, and APPA do not believe a 
requirement to maintain a database of blackstart resources would 
improve reliability. Santa Clara, however, requests that the Commission 
direct NERC to revise Requirement R2 of Reliability Standard EOP-005-2 
to specify that transmission operators provide copies of their 
restoration plans to those entities included in the plan within 60 days 
of the plan's approval by the appropriate reliability coordinator to 
ensure that resources identified in the plan are capable of complying 
with the plan.
Commission Determination
    31. Since a reliability coordinator obtains copies of all its 
constituent transmission operators' restoration plans and has the 
ability to obtain

[[Page 16282]]

information regarding the identity and characteristics of blackstart 
resources from its transmission operators, we agree there is no 
reliability need for it to maintain a duplicative database. With regard 
to Santa Clara's request, we believe that the determination whether 
resources in a restoration plan are capable of complying with the plan 
is made during the transmission operator's development of its plan as 
required by Requirement R1, not once the plan is approved by the 
reliability coordinator. For this reason, we do not see a need to 
direct the modification to Requirement R2 that Santa Clara requests.

E. System Restoration Coordination

    32. Reliability Standard EOP-005-2 requires each transmission 
operator to verify that its restoration plan achieves its intended 
function. There is no similar requirement in EOP-006-2 regarding the 
reliability coordinator's restoration plan. The Commission sought 
comment on whether the same or a similar requirement should apply to 
reliability coordinators. In addition, the Standard also requires 
reliability coordinators to approve, or disapprove with written 
reasons, the restoration plans of each of their constituent 
transmission operators. The Commission invited comment as to how a 
transmission operator should proceed when its restoration plan is 
rejected by a reliability coordinator.
Comments
    33. NERC, EEI, and IRC comment that a reliability coordinator's 
restoration plan is essentially a compilation of the restoration plans 
of its constituent transmission operators. Given that EOP-005-2 
requires transmission operators to verify their restoration plans and 
that EOP-006-2 requires reliability coordinators to conduct system 
restoration drills with their constituent transmission operators and 
generation owners, requiring further verification of the same plans by 
the reliability coordinator would be duplicative and not provide 
additional reliability benefit.
    34. With respect to how a transmission operator should proceed when 
its reliability coordinator rejects its restoration plan, NERC states 
that when a restoration plan is rejected by a reliability coordinator, 
the reliability coordinator is required to supply one or more reasons 
for its rejection, and the transmission operator should then be able to 
re-submit a revised plan. NERC does not believe it is necessary to 
document this process in additional requirements since the dialogue 
between the two entities is no different than the routine coordination 
that normally occurs between the transmission operator and its 
reliability coordinator. EEI, APPA, and IRC agree that there is no need 
for additional procedures to be spelled out.
    35. IRC, BPA, and Santa Clara all comment that the reliability 
coordinator should be the final authority to resolve conflicts. Santa 
Clara nevertheless states that if the transmission operator and 
reliability coordinator cannot resolve their differences because the 
transmission operator believes compliance with the reliability 
coordinator's decision is infeasible, the transmission operator should 
be allowed to appeal either to the Regional Entity or, in the case of 
the Western Interconnect, the dispute should be brought to NERC.
    36. EEI observes that the two-year implementation period for these 
Standards will likely provide sufficient time to resolve any 
differences in order for a reliability coordinator to approve a 
transmission operator's initial restoration plan. Any subsequent 
rejection of a revised restoration plan will not result in a 
reliability gap since the initial plan will remain in place. EEI 
further notes that any rejection of a restoration plan by a reliability 
coordinator will necessarily be based on generic reliability 
engineering criteria readily understood by the transmission operator. 
Pacificorp, on the other hand, notes that the requirement that the 
reliability coordinator give stated reasons for any disapproval of a 
submitted restoration plan does not ensure the reasons will specify the 
circumstances under which a transmission operator should revise its 
plan. Pacificorp states that a reliability coordinator must have formal 
criteria for reviewing, approving and disapproving restoration plans 
and standard procedures for those plans to be revised and resubmitted 
for review. Pacificorp also suggest a modification to Requirement R5 to 
provide that a transmission operator's submitted restoration plan shall 
be deemed approved if the reliability coordinator fails to approve or 
disapprove the plan within the required 30 days.
Commission Determination
    37. We accept the commenters' position that requiring verification 
of the reliability coordinators' restoration plan through a requirement 
in EOP-006-2 would be largely duplicative. As commenters point out, 
Reliability Standard EOP-006-2 requires reliability coordinators to 
conduct system restoration drills including their constituent 
transmission operators and generation owners. Such drills, exercises or 
simulations, together with the verifications carried out by the 
transmission operators of their restoration plans and approval of their 
plans by the reliability coordinators under EOP-005-2, serve as 
verification of the reliability coordinators' plans and as such, should 
serve to identify difficulties in a reliability coordinator's 
restoration plan.
    38. We agree with EEI that the basis on which a reliability 
coordinator rejects a restoration plan will necessarily be based on 
generic engineering criteria easily understood by the transmission 
operator. We also agree with those commenters who reaffirm that the 
ultimate arbiter of coordination and compatibility of transmission 
operators' restoration plans is the reliability coordinator. For these 
reasons, we do not see a need to direct modifications as Pacificorp and 
Santa Clara suggest that could circumvent the reliability coordinator's 
authority concerning the approval or disapproval of a restoration plan. 
However, we agree with Pacificorp that Reliability Standard EOP-006-2, 
which establishes requirements to enable coordinated system restoration 
and ensure reliability is maintained during system restoration, is not 
the appropriate place to include any specific criteria or procedures 
for the review and revision of transmission operators' restoration 
plans. We recognize that documenting such criteria and procedures may 
have utility in facilitating the settlement of disagreements when a 
reliability coordinator rejects a transmission operator's restoration 
plan. Nonetheless, we leave it to the ERO Reliability Standard 
development process to determine whether the merit is sufficient to 
compel the development of such criteria or procedures.

F. Data Reporting

    39. Given the importance of effective blackstart and restoration 
plans and well-trained personnel, the NOPR proposed that the ERO 
collect data on the performance of system restoration exercises and 
make such data available to transmission operators, reliability 
coordinators and the Commission. This data could then be used to 
identify the effectiveness of restoration plans and help identify 
improvements to enhance restoration. The Commission sought comment on 
the proposed data collection.
Comments
    40. NERC notes that formal debriefings are held after each required

[[Page 16283]]

drill and is unclear whether there would be any additional reliability 
benefit arising from the data collection contemplated in the NOPR. EEI 
proposes that companies should be allowed to gather experience on the 
new requirements before undertaking data collection efforts and points 
out that the North American Transmission Forum (NATF) would be an 
appropriate venue for discussions on the efficacy of various training 
experiences. BPA and NorthWestern also cite NATF as an appropriate 
venue to share best practices. BPA views its restoration information as 
extremely sensitive and perceives risk that such information could fall 
into the wrong hands.
    41. NERC, EEI, APPA, Pacificorp, and NorthWestern question the 
reliability benefit of creating such a database compared to the burden 
it would impose on the industry. NERC asks whether developing such a 
database would direct industry resources where they can best serve 
reliability. IRC does not see the value of the proposed data gathering, 
but notes section 1600--Requests for Data or Information of NERC's 
Rules of Procedure \25\ could be an appropriate means of collecting 
data without creating an ongoing requirement.
---------------------------------------------------------------------------

    \25\ North American Electric Reliability Corporation, Rules of 
Procedure 85-87 (http://www.nerc.com/page.php?cid=2|2011), available at http://www.nerc.com/files/NERC_Rules_of_Procedure_ EFFECTIVE_http://www.nerc.com/page.php?cid=2|20 20110101.pdf.
---------------------------------------------------------------------------

Commission Determination
    42. The Commission agrees with NERC that the formal debriefing of 
system restoration drills, exercises and simulations can capture 
lessons learned and identify best practices. But lessons learned in 
such debriefings are not necessarily communicated to all who might 
benefit from them. In addition, the Commission understands that NATF 
may be an appropriate forum to discuss industry activity and best 
practices, but we continue to believe that there would be a reliability 
benefit in the ERO aggregating and disseminating lessons learned 
derived from restoration drills, exercises and simulations. 
Nevertheless, we will allow the industry to develop some experience 
with the new Reliability Standards and then review whether or not to 
pursue this matter under section 39.2(d) of the Commission's 
regulations and the use of Requests for Data or Information under 
section 1600 of NERC's Rules of Procedure or through some other means.

G. Violation Risk Factors/Violation Severity Levels

    43. In the NOPR, the Commission proposed deferring action on the 
proposed violation risk factors (VRF) and violation severity levels 
(VSL) for the proposed Reliability Standards until the Commission acts 
on NERC's pending petition in Docket No. RR08-4-005, in which NERC 
proposes a ``roll-up'' approach for VRF and VSL assignments by which 
NERC would only assign VRF and VSL to the main requirements and not to 
sub-Requirements.\26\ Subsequent to the NOPR, on December 1,http://www.nerc.com/page.php?cid=2|20 2010, NERC 
made a compliance filing to the Commission in Docket No. RR08-04-006 
submitting new VSL to supersede those presented in the NERC Petition.
---------------------------------------------------------------------------

    \26\ Docket No. RR08-4-005 comprises NERC's March 5,http://www.nerc.com/page.php?cid=2|20 2010 
Violation Severity Level Compliance Filing submitted in response to 
Order No. 722 and an August 10,http://www.nerc.com/page.php?cid=2|20 2009 informational filing in which 
NERC proposes assigning VRF and VSL only to the main Requirements in 
each Reliability Standard and not to the sub-requirements.
---------------------------------------------------------------------------

Commission Determination
    44. No comments were received regarding this matter. Accordingly, 
the Commission will defer discussion on the proposed violation risk 
factors and violation severity levels assigned to EOP-005-2 and EOP-
006-2 until after the Commission issues a final order acting on NERC's 
petition in Docket No. RR08-4-005 and Docket No. RR08-4-006.

III. Information Collection Statement

    45. The following collections of information contained in this 
Reliability Standard have been submitted to the Office of Management 
and Budget (OMB) for review under section 3507(d) of the Paperwork 
Reduction Act of 1955.\27\ OMB's regulations require OMB to approve 
certain information collection requirements imposed by agency rule.\28\
---------------------------------------------------------------------------

    \27\ 44 U.S.C. 3507(d).
    \28\ 5 CFR 13http://www.nerc.com/page.php?cid=2|20.11.
---------------------------------------------------------------------------

    46. The Commission solicited comments on the need for and the 
purpose of the information contained in these three Emergency 
Operations and Performance Reliability Standards and the corresponding 
burden to implement them. The commission received comments on its 
proposed data reporting requirement regarding the performance of system 
restoration exercises which we address in this Final Rule. The 
Commission has not directed any modifications to the Requirements in 
the three Reliability Standards being approved. As a result of this 
Final Rule the annual burden will increase by an estimated 47,472 
hours. This is a reduction from the burden estimates provided in the 
NOPR, with respect to reporting data to NERC; however, we have not 
similarly reduced the estimated time expended by reliability 
coordinators on recordkeeping in order to better reflect their enhanced 
involvement in the planning process.
    47. Burden Estimate: The estimated burden and for the requirements 
in this Final Rule follow:

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                         Number of
                                         Number of        annual
      FERC-725A data collection         respondents    responses per     Hours per respondent per  response                Total annual hours
                                                        respondent
                                                 (A)             (B)  (C).....................................  (A x B x C)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Reliability Coordinators data                     26               2  Recordkeeping: 8........................  Recordkeeping: 416.
 retention.
Transmission operators reporting                 176               1  Compliance: 116.........................  Compliance:http://www.nerc.com/page.php?cid=2|20 20,416.
 data to their reliability                                            Recordkeeping: 16.......................  Recordkeeping: 2,816.
 coordinator and reducing blackstart
 arrangements to writing.
Generator operator system                        230               1  80......................................  18,400.
 restoration responsibilities
 including testing and maintaining
 records.
Transmission owner and distribution              678               1  8.......................................  5,424.
 provider training and recordkeeping.
                                     -------------------------------------------------------------------------------------------------------------------
    Total...........................  ..............  ..............  ........................................  47,472 hours.
--------------------------------------------------------------------------------------------------------------------------------------------------------

[[Page 16284]]

     Total Estimated Annual Hours for Collection: (Reporting/
Compliance + recordkeeping) = 47,472 hours.
     Reporting/Compliance = 44,240 hours @ $132/hour = 
$5,839,680.
     Recordkeeping = 3,232 hours @ $17/hour = $54,944.
     Total Cost = $5,894,624.
     Title: Mandatory Reliability Standards for the Bulk-Power 
System.
     Action: FERC 725A, Proposed Modification to FERC-725A.
     OMB Control No: 1902-0244.
     Respondents: Business or other for profit, and/or not for 
profit institutions.
     Frequency of Responses: On occasion.
     Necessity of the Information: This Final Rule would 
approve revised Reliability Standards that modify the existing 
requirement for system restoration from a blackstart. The proposed 
Reliability Standards require some entities to commit agreements or 
understandings to writing and/or to draft written procedures, and 
retain records. Other entities may have to produce and maintain 
training materials.
    48. Interested persons may obtain information on the reporting 
requirements by contacting: Federal Energy Regulatory Commission, 888 
First Street, NE., Washington, DChttp://www.nerc.com/page.php?cid=2|20 20426 [Attention: Ellen Brown, Office 
of the Executive Director, e-mail: DataClearance@ferc.gov, Phone: (http://www.nerc.com/page.php?cid=2|202) 
502-8663, fax: (http://www.nerc.com/page.php?cid=2|202) 273-0873]. Comments on the requirements of this 
order may also be sent to the Office of Information and Regulatory 
Affairs, Office of Management and Budget, Washington, DChttp://www.nerc.com/page.php?cid=2|20 20503 
[Attention: Desk Officer for the Federal Energy Regulatory Commission]. 
For security reasons, comments should be sent by e-mail to OMB at 
oira_submission@omb.eop.gov. Please reference OMB Control Number 1902-
0244 and the docket number of this rulemaking in your submission.

IV. Environmental Analysis

    49. The Commission is required to prepare an Environmental 
Assessment or an Environmental Impact Statement for any action that may 
have a significant adverse effect on the human environment.\29\ The 
action taken in the Final Rule falls within the categorical exclusion 
in the Commission's regulations for rules that are clarifying, 
corrective or procedural, for information gathering, analysis, and 
dissemination.\30\ Accordingly, neither an environmental impact 
statement nor an environmental assessment is required.
---------------------------------------------------------------------------

    \29\ Regulations Implementing the National Environmental Policy 
Act, Order No. 486, 52 FR 47897 (Dec. 17, 1987), FERC Stats. & 
Regs., Regulations Preambles 1986-1990 ] 30,783 (1987).
    \30\ 18 CFR 380.4(a)(5).
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V. Regulatory Flexibility Act

    50. The Regulatory Flexibility Act of 1980 (RFA) \31\ 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.\32\ 
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.\33\
---------------------------------------------------------------------------

    \31\ 5 U.S.C. 601-12.
    \32\ 13 CFR 121.101.
    \33\ 13 CFR 121.http://www.nerc.com/page.php?cid=2|201, Sector 22, Utilities & n. 1.
---------------------------------------------------------------------------

    51. Many of the entities to which the requirements of this rule 
would apply do not fall within the definition of small entities, but 
most transmission owners, and most distribution providers would be 
deemed small entities. The proposed Reliability Standards clarify the 
elements of restoration plans and training requirements and give 
reliability coordinators a greater role in review and approval of 
plans, but the proposed Reliability Standards reflect primarily a 
continuation of existing system restoration requirements currently 
applicable to reliability coordinators, transmission operators and 
generation operators.
    52. Based on available information regarding NERC's compliance 
registry, and our best assessment of the application of the proposed 
Reliability Standards, approximately 1,110 entities will be responsible 
for compliance with proposed Reliability Standards EOP-005-2 and EOP-
006-2, of which approximately 678 are transmission owners and 
distribution providers not already subject to the existing system 
restoration Reliability Standards. Of the 678 transmission owners and 
distribution providers, only that subset whose field switching 
personnel are identified in the restoration plan as having unique tasks 
will be subject to a new requirement under the proposed standards, 
i.e., providing two hours of system restoration training every two 
calendar years to such personnel. The Commission estimates that this 
requirement will impose a cost of perhaps $1,056 per year on 
transmission owners and distribution providers, (and indeed for some 
entities there will be only de minimis additional cost because field 
personnel are already being trained in restoration tasks) and therefore 
should not present significant operating costs.
    53. Based on this understanding, the Commission certifies that this 
rule will not have a significant economic impact on a substantial 
number of small entities. Accordingly, no regulatory flexibility 
analysis is required.

VI. Document Availability

    54. 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, DChttp://www.nerc.com/page.php?cid=2|20 20426.
    55. 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.
    56. User assistance is available for eLibrary and the FERC's Web 
site during normal business hours from FERC Online Support athttp://www.nerc.com/page.php?cid=2|20 202-502-
6652 (toll free at 1-866-http://www.nerc.com/page.php?cid=2|208-3676) or e-mail at 
ferconlinesupport@ferc.gov, or the Public Reference Room at (http://www.nerc.com/page.php?cid=2|202) 502-
8371, TTY (http://www.nerc.com/page.php?cid=2|202) 502-8659. E-mail the Public Reference Room at 
public.referenceroom@ferc.gov.

VII. Effective Date and Congressional Notification

    57. These regulations are effective May 23,http://www.nerc.com/page.php?cid=2|20 2011. The Commission 
notes that although the determinations made in this Final Rule are 
effective May 23,http://www.nerc.com/page.php?cid=2|20 2011 in those jurisdictions where regulatory approval 
is required, Reliability Standard EOP-001-1 will not become effective 
until the first day of the first calendar quarter three months after 
regulatory approval is obtained, and EOP-005-2 and EOP-006-2 approved 
in this Final Rule will not become effective until 24 months

[[Page 16285]]

after the first day of the first quarter after applicable regulatory 
approval. 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.

Kimberly D. Bose,
Secretary.
[FR Doc.http://www.nerc.com/page.php?cid=2|20 2011-6739 Filed 3-22-11; 8:45 am]
BILLING CODE 6717-01-P