Document ID: FERC-2010-1896-0001
Agency: ferc
Document Type: Proposed Rule
Title: Version One Regional ReliabilityStandard for Transmission Operations
Posted Date: 2010-12-27T05:00Z

[Federal Register Volume 75, Number 247 (Monday, December 27, 2010)]
[Proposed Rules]
[Pages 81157-81165]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-32357]

-----------------------------------------------------------------------

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

18 CFR Part 40

[Docket No. RM09-14-000]

Version One Regional Reliability Standard for Transmission 
Operations

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

ACTION: Notice of proposed rulemaking.

-----------------------------------------------------------------------

SUMMARY: Under section 215 of the Federal Power Act (FPA), the Federal 
Energy Regulatory Commission (Commission) proposes to approve TOP-007-
WECC-1 (System Operating Limits) developed by the Western Electric 
Coordinating Council (WECC) and submitted to the Commission for 
approval by the North American Electric Reliability Corporation. The 
revised regional Reliability Standard would replace the approved WECC 
TOP-STD-007-0. While we propose to approve the regional Reliability 
Standard, as discussed in this Notice of Proposed Rulemaking, TOP-007-
WECC-1 raises some concerns about which the Commission requests 
additional information. The Commission also proposes to direct WECC to 
develop certain limited modifications to the regional Reliability 
Standard and the associated violation risk factor and violation 
severity levels as discussed herein.

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/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.

FOR FURTHER INFORMATION CONTACT:

Mindi Sauter (Legal Information), Office of the General Counsel, 
Federal Energy Regulatory Commission, 888 First Street, NE., 
Washington, DC 20426, (202) 502-6830.
E. Nick Henery (Technical Information), Office of Electric Reliability, 
Division of Policy Analysis and Rulemaking, Federal Energy Regulatory 
Commission, 888 First Street, NE., Washington, DC 20426, (202) 502-
8636.
Danny Johnson (Technical Information), Office of Electric Reliability, 
Division of Reliability Standards, Federal Energy Regulatory 
Commission, 888 First Street, NE., Washington, DC 20426, (202) 502-
8892.

SUPPLEMENTARY INFORMATION:

Notice of Proposed Rulemaking

    1. Under section 215 of the Federal Power Act (FPA),\1\ the 
Commission proposes to approve TOP-007-WECC-1 (System Operating Limits) 
developed by the Western Electricity Coordinating Council (WECC) and 
submitted to the Commission for approval by the North American Electric 
Reliability Corporation (NERC), which the Commission has certified as 
the Electric Reliability Organization (ERO) responsible for developing 
and enforcing mandatory Reliability Standards.\2\ The revised regional 
Reliability Standard, designated by WECC as TOP-007-WECC-1,\3\ would 
replace WECC TOP-STD-007-0. While we propose to approve the regional 
Reliability Standard, we are concerned about certain provisions of TOP-
007-WECC-1, about which we request additional information in public

[[Page 81158]]

comment. The Commission also proposes to direct WECC to develop certain 
limited modifications to the regional Reliability Standard and the 
associated violation risk factor and violation severity levels as 
discussed herein.
---------------------------------------------------------------------------

    \1\ 16 U.S.C. 824o.
    \2\ North American Electric Reliability Corp., 116 FERC ] 
61,062, order on reh'g & compliance, 117 FERC ] 61,126 (2006), aff'd 
sub nom. Alcoa, Inc. v. FERC, 564 F.3d 1342 (D.C. Cir. 2009).
    \3\ NERC designates the version number of a Reliability Standard 
as the last digit of the Reliability Standard number. Therefore, 
original Reliability Standards end with ``-0'' and modified version 
one Reliability Standards end with ``-1.''
---------------------------------------------------------------------------

I. Background

A. Mandatory Reliability Standards

    2. Section 215 of the FPA requires a Commission-certified Electric 
Reliability Organization (ERO) to develop mandatory and enforceable 
Reliability Standards, which are subject to Commission review and 
approval. Once approved, the Reliability Standards may be enforced by 
the ERO, subject to Commission oversight, or by the Commission 
independently.\4\
---------------------------------------------------------------------------

    \4\ See 16 U.S.C. 824o(e).
---------------------------------------------------------------------------

    3. Reliability Standards that the ERO proposes to the Commission 
may include Reliability Standards that are proposed to the ERO by a 
Regional Entity to be effective in that region.\5\ In Order No. 672, 
the Commission noted that:
---------------------------------------------------------------------------

    \5\ 16 U.S.C. 824o(e)(4). A Regional Entity is an entity that 
has been approved by the Commission to enforce Reliability Standards 
under delegated authority from the ERO. See 16 U.S.C. 824o(a)(7) and 
(e)(4).

    As a general matter, we will accept the following two types of 
regional differences, provided they are otherwise just, reasonable, 
not unduly discriminatory or preferential and in the public 
interest, as required under the statute: (1) A regional difference 
that is more stringent than the continent-wide Reliability Standard, 
including a regional difference that addresses matters that the 
continent-wide Reliability Standard does not; and (2) a regional 
Reliability Standard that is necessitated by a physical difference 
---------------------------------------------------------------------------
in the Bulk-Power System.

When the ERO reviews a regional Reliability Standard that would be 
applicable on an interconnection-wide basis and that has been proposed 
by a Regional Entity organized on an Interconnection-wide basis, the 
ERO must rebuttably presume that the regional Reliability Standard is 
just, reasonable, not unduly discriminatory or preferential, and in the 
public interest.\6\ In turn, the Commission must give ``due weight'' to 
the technical expertise of the ERO and of a Regional Entity organized 
on an interconnection-wide basis.\7\
---------------------------------------------------------------------------

    \6\ 16 U.S.C. 824o(d)(3).
    \7\ 16 U.S.C. 824o(d)(2).
---------------------------------------------------------------------------

B. WECC Regional Reliability Standards

    4. On April 19, 2007, the Commission accepted delegation agreements 
between NERC and each of eight Regional Entities.\8\ In the order, the 
Commission accepted WECC as a Regional Entity organized on an 
Interconnection-wide basis. As a Regional Entity, WECC oversees Bulk-
Power System reliability in the Western Interconnection. The WECC 
region encompasses nearly 1.8 million square miles, including 14 
western U.S. states, the Canadian provinces of Alberta and British 
Columbia, and the northern portion of Baja California in Mexico.
---------------------------------------------------------------------------

    \8\ North American Electric Reliability Corp., 119 FERC ] 61,060 
(2007).
---------------------------------------------------------------------------

    5. In June 2007, the Commission approved eight regional Reliability 
Standards that apply in the Western Interconnection, including WECC 
TOP-STD-007-0.\9\ Currently effective WECC TOP-STD-007-0 has the stated 
purpose of ensuring that the Western Interconnection's operating 
transfer capability limits requirements are not exceeded. In approving 
the current regional Reliability Standard, the Commission found that it 
was more stringent than the corresponding NERC TOP-007-0. The 
Commission noted that, ``[i]n particular, the imposition of a 20-minute 
limit [maximum for exceeding a stability-limited operating transfer 
capability] is more restrictive than NERC's TOP-007-0 and is a prudent 
means of limiting the risk of blackouts, consistent with sound 
engineering principles.'' \10\
---------------------------------------------------------------------------

    \9\ North American Electric Reliability Corp., 119 FERC ] 61,260 
(2007) (June 2007 Order).
    \10\ Id. P 104.
---------------------------------------------------------------------------

    6. In the June 2007 Order, the Commission also expressed concern 
that WECC-TOP-007-0 may be inconsistent with NERC IRO-005-1 depending 
upon the interpretation of IRO-005-1.\11\ Previously, in Order No. 693, 
the Commission discussed the possibility that NERC IRO-005-1 could be 
interpreted as allowing a system operator to respect interconnection 
reliability operating limits in two different ways.\12\ In the June 
2007 Order, the Commission noted that the wording of WECC-TOP-007-0 
Requirement WR1.b, which provides that ``[t]he interconnected power 
system shall remain stable upon loss of any one single element without 
system cascading that could result in the successive loss of additional 
elements,'' suggests that WECC expects that stability-limited system 
operating limits will be addressed in such a manner that the system is 
two contingencies away from a cascading failure. The Commission noted, 
however, that Measure WM1 of WECC-TOP-007-0 may not be consistent with 
Requirement WR1.b, since it states that ``[a]ctual power flow on all 
transmission paths shall at no time exceed the [operating transfer 
capability] for more than 20 minutes for paths that are stability 
limited, or more than 30 minutes for paths that are thermally limited. 
'' \13\ The Commission further stated that the Measure appears more 
consistent with the less conservative interpretation of the NERC IRO-
005-1 and could allow the power system to be operated one contingency 
away from a cascading outage. Thus, the Commission directed NERC and 
WECC to: (1) Submit a filing within 30 days of the date of the order 
explaining whether Requirement WR1.b is consistent with the second 
interpretation of NERC IRO-005-1 (two contingencies away from cascading 
failure); (2) clarify any inconsistency between Requirement WR1.b and 
corresponding Measure WM1; and (3) ensure that the requirements 
currently set forth in Measures WM1 are set forth in the Standard's 
Requirements and that corresponding Measures simply quantify the 
frequency, duration and magnitude of the violations as determined by 
the Requirements.\14\
---------------------------------------------------------------------------

    \11\ Id. P 105-110.
    \12\ Mandatory Reliability Standards for the Bulk-Power System, 
Order No. 693, FERC Stats. & Regs. ] 31,242, at P 946 (2007), order 
on reh'g, Order No. 693-A, 120 FERC ] 61,053 (2007). The Commission 
explained, ``IRO-005-1 could be interpreted as allowing a system 
operator to respect IROLs in two possible ways: (1) Allowing IROL to 
be exceeded during normal operations, i.e., prior to a contingency, 
provided that corrective actions are taken within 30 minutes or (2) 
exceeding IROL only after a contingency and subsequently returning 
the system to a secure condition as soon as possible, but no longer 
than 30 minutes. Thus, the system can be one contingency away from 
potential cascading failure if operated under the first 
interpretation and two contingencies away from cascading failure 
under the second interpretation.'' Id. at n. 303.
    \13\ North American Electric Reliability Corp., 119 FERC ] 
61,260 at P 107.
    \14\ Id. P 108-109.
---------------------------------------------------------------------------

    7. The Commission also directed WECC to develop modifications to 
WECC-TOP-STD-007-0 to address certain shortcomings identified by NERC 
with regard to such matters as format, aligning WECC regional 
definitions with the NERC Glossary of Terms Used in Reliability 
Standards, and removing compliance and measure references.\15\
---------------------------------------------------------------------------

    \15\ Id. P 55, 110.
---------------------------------------------------------------------------

    8. In response, NERC submitted a compliance filing (Compliance 
Filing) on July 9, 2007.\16\ NERC explained that ``a WECC reliability 
coordinator must take immediate action, initially through the 
transmission operators, and then issues directives, to return the 
system to a secure condition as soon as possible

[[Page 81159]]

after identification of a transfer path exceeding its SOL/IROL'' in 
accordance with WECC procedure RC-003-1, entitled WECC Reliability 
Coordinator Monitoring and Directive Procedure.\17\ NERC continued, 
stating that ``WECC operates its system in such a manner that the 
system is at least two contingencies away from a cascading failure.'' 
NERC further explained that,
---------------------------------------------------------------------------

    \16\ North American Electric Reliability Corp., Compliance 
Filing, Docket No. RR07-11-000 (filed July 9, 2007).
    \17\ Id. at 5.

there is no inconsistency between IRO-005-1 and WECC-TOP-STD-007-0. 
In order to support Requirement WR1.b in the WECC-TOP-STD-007-0 
regional Reliability Standard, the system cannot be operated such 
that a single contingency will cause cascading of the system. This 
is implicit in the identification of the [operating transfer 
capability] limit derivation. If, however, there is a flow that 
exceeds the [operating transfer capability] limit, the transmission 
operator must take (proactive) immediate corrective action within 20 
minutes for stability-limited paths and 30 minutes for thermally 
limited paths to return the system to below the [operating transfer 
capability] limit, thus protecting the system from potential 
cascading for a subsequent contingency.\18\
---------------------------------------------------------------------------

    \18\ Id. at 8.
---------------------------------------------------------------------------

Proposed WECC Regional Reliability Standard TOP-007-WECC-1
    9. On March 25, 2009, NERC submitted a petition to the Commission 
seeking approval of proposed TOP-007-WECC-1 and requesting the 
concurrent retirement of the currently effective TOP-STD-007-0.\19\ 
NERC requests an effective date for the proposed regional Reliability 
Standard of 90 calendar days after receipt of applicable regulatory 
approval.
---------------------------------------------------------------------------

    \19\ North American Reliability Corp., March 25, 2009 Petition 
for Approval of Proposed Western Electric Coordinating Council 
Regional Reliability Standard TOP-007-WECC-1 (NERC Petition). The 
proposed new Reliability Standards and other modified Reliability 
Standards are not codified in the CFR and are not attached to the 
NOPR. They are, however, available on the Commission's eLibrary 
document retrieval system in Docket No. RM09-14-000 and are 
available on the ERO's Web site, http://www.nerc.com.
---------------------------------------------------------------------------

    10. Proposed TOP-007-WECC-1 would apply to transmission operators 
for the transmission paths in the most current table titled ``Major 
WECC Transfer Paths in the Bulk Electric System'' (WECC Transfer Path 
Table) located on the WECC Web site.\20\ NERC states that the primary 
purpose of the regional Reliability Standard is to ensure that actual 
flows and associated scheduled flows on Major WECC Transfer Paths do 
not exceed system operating limits for more than 30 minutes.
---------------------------------------------------------------------------

    \20\ See WECC Transfer Path Table, available at: http://www.wecc.biz/Docs/Documents/Table%20Major%20Paths%204-28-08.doc. The 
Transfer Path Table includes a footnote that provides, ``[f]or an 
explanation of terms, path numbers, and definition for the paths 
refer to WECC's Path Rating Catalog.''
---------------------------------------------------------------------------

    11. NERC states that the proposed regional Reliability Standard 
satisfies the factors, set forth in Order No. 672, that the Commission 
considers when determining whether a proposed Reliability Standard is 
just, reasonable, not unduly discriminatory or preferential and in the 
public interest.\21\ According to NERC, proposed TOP-007-WECC-1 is 
clear and unambiguous regarding what is required and who is required to 
comply with the Standard. NERC states that proposed TOP-007-WECC-1 has 
clear and objective measures for compliance and achieves a reliability 
goal (namely, that operating power flows along major paths are within 
not only interconnection reliability operating limits but also system 
operating limits) effectively and efficiently. NERC also states that 
the requirements proposed in TOP-007-WECC-1 are not covered by a NERC 
Reliability Standard and are intended to be more stringent than or 
cover areas not covered by the continent-wide NERC Reliability Standard 
TOP-007-0. NERC also notes that its public posting of the proposed 
regional Reliability Standard did not elicit any significant technical 
objection.\22\
---------------------------------------------------------------------------

    \21\ 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, at P 323-337 (2006), order on reh'g, Order 
No. 672-A, FERC Stats. & Regs. ] 31,212 (2006).
    \22\ NERC Petition at 9.
---------------------------------------------------------------------------

    12. Proposed TOP-007-WECC-01 contains two requirements and one sub-
requirement, summarized as follows:
    Requirement R1: Requires a transmission operator of a major WECC 
transfer path to take immediate action to return actual flows that are 
in excess of the path's system operating limits to within the system 
operating limits in no longer than 30 minutes.
    Requirement R2: Requires a transmission operator of a major WECC 
transfer path to ensure that the net scheduled interchange across the 
path does not exceed the path's system operating limits, when the 
transmission operator implements its real-time schedules for the next 
hour.
    Sub-requirement R2.1: Requires a transmission operator of a major 
WECC transfer path to adjust the net scheduled interchange across the 
path within 30 minutes so that it does not exceed the path's new system 
operating limit value if the system operating limit decreases within 20 
minutes before the start of the hour.
    13. In the Petition, NERC asserts that the proposed regional 
Reliability Standard covers matters not covered by a NERC Reliability 
Standard and is more stringent than the corresponding continent-wide 
Reliability Standard, TOP-007-0. NERC explains:

    Whereas, NERC Reliability Standard TOP-007-0--Reporting SOL and 
IROL Violations Requirement R2 requires the Transmission Operator to 
return its transmission path flows to within Interconnection 
Reliability Operating Limits (``IROLs'') as soon as possible, but no 
longer than 30 minutes following a contingency or event, TOP-007-
WECC-1 Requirement R1 requires the Transmission Operator of the 
major WECC transfer paths to take immediate action to return the 
actual power flow to within [system operating limits] such that at 
no time shall the power flow exceed the [system operating limits] 
for longer than 30 minutes. There is no NERC requirement to return 
the transmission system to within [system operating limits] within a 
time certain, only a requirement to report to the Reliability 
Coordinator (TOP-007-0 Requirement R1). Depending on the current 
system conditions, the limits for the paths identified in this TOP-
007-WECC-1 standard are [system operating limits]s that would not 
result in cascading outages. TOP-007-WECC-1 specifically applies to 
the major paths in the Western Interconnection regardless of whether 
the limit is defined as an IROL or an [system operating limits]. 
TOP-007-WECC-1 Requirement R2 requires the Transmission Operator of 
the major WECC transfer paths to ensure that Net Scheduled 
Interchange for power flow over an interconnection or transmission 
path does not exceed the path's [system operating limits] when the 
Transmission Operator implements its real-time schedules for the 
next hour. The requirement for maintaining Net Scheduled Interchange 
within a path's [system operating limits] is also not covered in the 
NERC Reliability Standards. This requirement is important to the 
Western Interconnection because scheduling transmission paths beyond 
their limits could adversely affect actual flows on parallel paths 
by creating unscheduled flow that may jeopardize system 
reliability.\23\
---------------------------------------------------------------------------

    \23\ NERC Petition at 11-12 (footnote omitted).
---------------------------------------------------------------------------

    14. NERC also provides, as Exhibit C to the NERC Petition, a Record 
of Development of Proposed Reliability Standard. Included in the 
approximately 100-page development record is a ``mapping document'' 
prepared by the WECC standards drafting team that compares the related 
provisions of the currently-effective regional Reliability Standard to 
the modified Standard and discusses the ``proposed change and impact.'' 
\24\
---------------------------------------------------------------------------

    \24\ See NERC Petition, Exhibit C, Comparison of WECC Standard 
TOP-STD-007-0 to proposed WECC Standard TOP-007-WECC-1, beginning at 
page 86 of the NERC Petition as it appears in the Commission's 
eLibrary pdf document.

---------------------------------------------------------------------------

[[Page 81160]]

II. Discussion

    15. Pursuant to FPA section 215(d)(2), we propose to approve TOP-
007-WECC-1 as just, reasonable, not unduly discriminatory or 
preferential, and in the public interest. As indicated above, the 
proposed TOP-007-WECC-1 appears to cover topics not covered by the 
corresponding NERC Reliability Standard, TOP-007-0, thus meeting a 
criterion for approving a regional difference. Specifically, 
Requirement R1 would require the transmission operator of a major WECC 
transfer path to take immediate action to return the actual power flow 
to within system operating limits such that at no time shall the power 
flow exceed the system operating limits for longer than 30 minutes. 
While the NERC Reliability Standards do have a requirement to report 
exceeding system operating limits to the reliability coordinator, they 
do not have a requirement to return the transmission system to within 
system operating limits within a time certain. Likewise, proposed 
Requirement R2 of the regional Reliability Standard would prohibit the 
transmission operator from having the net scheduled interchange for 
power flow over an interconnection or transmission path above the 
path's system operating limit when the transmission operator implements 
its real-time schedules for the next hour, while there currently is no 
such requirement in a NERC Standard. In addition to these stringencies, 
the proposed regional Reliability Standards addresses modifications 
directed by the Commission in the June 2007 Order. For these reasons, 
the Commission proposes to approve TOP-007-WECC-1.
    16. However, below, we ask WECC, the ERO and other interested 
entities to provide further clarification regarding several aspects of 
the proposed regional Reliability Standard. Our intent in seeking 
comments is to better understand certain aspects of the proposed 
regional Reliability Standard that are not fully explained in the NERC 
Petition. Specifically, we request in comments additional information 
about the following concerns: (1) Whether the proposed regional 
Reliability Standard would allow transmission operators to operate the 
system at a single contingency away from cascading failure for up to 30 
minutes; (2) the change in the time allowed to respond to a stability-
limited system operating limit violation from 20 to 30 minutes; (3) the 
substitution of the term ``system operating limit'' for the term 
``operating transfer capability''; and (4) replacement of the WECC 
Transfer Path Table attachment to the regional Reliability Standard 
with an internet link. The Commission also proposes to direct WECC to 
develop certain limited modifications to the regional Reliability 
Standard and the associated violation risk factor and violation 
severity levels as discussed herein.

A. Operating One Contingency Away From a Cascading Outage

    17. As discussed above, when approving TOP-STD-007-0, the 
Commission noted its concern that Measure WM1 may be interpreted in a 
way that is less stringent than the NERC IRO-005-1, which, in turn, 
could allow the system to be operated one contingency away from a 
potential cascading failure.\25\ NERC explained in its July 2007 
Compliance Filing that, under Requirement WR1.b of TOP-STD-007-0, 
transmission operators must operate the system in a manner that it is 
at least two contingencies away from cascading at all times during 
steady state operating conditions.\26\
---------------------------------------------------------------------------

    \25\ North American Electric Reliability Corp., 119 FERC ] 
61,260 at P 108.
    \26\ Compliance Filing at 4.
---------------------------------------------------------------------------

Proposed Regional Reliability Standard
    18. Requirement R1 of TOP-007-WECC-1 states, ``[w]hen the actual 
power flow exceeds an [system operating limit] for a Transmission path, 
the Transmission Operators shall take immediate action to reduce the 
actual power flow across the path such that at no time shall the power 
flow for the Transmission path exceed the [system operating limit] for 
more than 30 minutes.'' NERC notes that the corresponding NERC 
Reliability Standard, TOP-007-0 does not currently cover this 
requirement, explaining that NERC TOP-007-0 does not require the 
transmission operators to return the transmission system to within 
system operating limits within a time certain. Therefore, the proposed 
TOP-007-WECC-1 appears to meet a criterion for approving a regional 
difference. The proposed TOP-007-WECC-1 does not include the provision 
of current Requirement WR1, which, in TOP-STD-007-0, requires that 
``[t]he interconnected power system shall remain stable upon loss of 
any one single element without system cascading that could result in 
the successive loss of additional elements.'' The mapping document 
included within Exhibit C to the Petition explains that the provision 
was eliminated because ``inclusion would be redundant with similar 
criteria in other NERC standards,'' such as NERC FAC-011 (including 
Regional Differences 1.1 and 1.2), FAC-014, and TOP-004.
Commission Concerns
    19. A plain reading of the proposed regional Reliability Standard's 
Requirement R1 does not explicitly require a transmission operator to 
operate the system in a manner that is two contingencies from a 
cascading outage. Specifically, Requirement R1 appears to allow the 
power flow, during steady state conditions, to exceed a stability-
limited system operating limit for up to 30 minutes, which could mean 
that the system would be one contingency away from a cascading failure 
for that period of time. Although WECC clarified in its July 2007 
Compliance Filing that the WECC transmission grid must be operated such 
that no cascading occurs following a single contingency, the proposed 
Reliability Standard does not re-affirm this understanding. Indeed, the 
proposed regional Reliability Standard could be interpreted as 
affirmatively permitting the power system to be operated one 
contingency away from a cascading outage, which is the same concern the 
Commission raised with respect to the current regional Reliability 
Standard. Our concern is heightened when Requirement R1 is considered 
in conjunction with the NERC TOP-004, Requirement R2, which states that 
``[e]ach Transmission Operator shall operate so that instability, 
uncontrolled separation, or cascading outages will not occur as a 
result of the most severe single contingency.'' Read in this light, the 
proposed revision to the language currently contained in Requirement 
WR1 of TOP-STD-007-0 could result in transmission operators having two 
apparently conflicting sets of operational requirements. Specifically, 
the national Reliability Standard prohibits operating a single 
contingency away from cascading outage while the proposed regional 
Reliability Standard seems to permit such operation. The Commission 
requests comments on this issue.

B. Change in Response Time From 20 to 30 Minutes

    20. TOP-STD-007-0 provides that transmission operators shall return 
actual flows to within the path's operating transfer capability ratings 
in no more than 20 minutes on stability-limited paths, and within 30 
minutes for thermally-limited paths. When NERC filed TOP-STD-007-0 for 
Commission approval, WECC explained that the 20 minute time limit for 
responding to stability-limited operating transfer

[[Page 81161]]

capability exceedances was based on the lessons learned in the two 
major disturbances in 1996.\27\ The Commission notes that in the 
Western Interconnection a significant number of transmission paths are 
voltage or frequency stability limited, in contrast to other regions of 
the Bulk-Power System where transmission paths more often are thermally 
limited.\28\
---------------------------------------------------------------------------

    \27\ See North American Electric Reliability Corp., 119 FERC ] 
61,260 at P 102.
    \28\ A stability limit is determined by a voltage or frequency 
stability constraint, and loading the line above this limit for any 
amount of time could result in instability and cascading outages. A 
thermal limit is determined by how much a line can overheat without 
damaging equipment; lines that are thermally-limited can have short-
term emergency limits that are higher than the normal line rating, 
since heating occurs over a period of time.
---------------------------------------------------------------------------

    21. Transmission operators generally need to respond to 
disturbances that result in a ``stability-limited'' transmission path 
overload in a shorter time frame than a disturbance that results in a 
``thermally-limited'' transmission path overload because the stability-
limited risk is more systemic in nature. The requirement to bring the 
power flow across a stability-limited transmission path to within the 
path's operating transfer capability rating within 20 minutes following 
a disturbance improves reliability by decreasing the likelihood that 
the Bulk-Power System will be operated a single contingency away from a 
cascading outage, thus preventing adverse reliability impacts, as 
following a disturbance.
Proposed Regional Reliability Standard
    22. The proposed revised regional Reliability Standard would 
replace the 20-minute limit for returning actual flows on stability-
limited paths to within system operating limit ratings with a 30-minute 
limit. In its Petition, NERC indicates that the first draft of the 
proposed regional Reliability Standard included the differing time 
limits (20/30 minutes) to return to within system operating limit, but 
that comments indicated that the 10 minute difference was not based on 
any technically sound reasoning and would create an additional 
operational step to determine the cause of the limit before taking 
corrective action. The Petition further indicates that, based on these 
comments, the drafting team modified the proposed regional Reliability 
Standard to have one consistent 30 minute limit for returning actual 
flows to within both thermally and stability-limited system operating 
limits.
    23. In its evaluation of the proposed regional Reliability 
Standard, NERC's general observation was that proposed TOP-007-WECC-1 
was significantly modified from TOP-STD-007-0. Specifically, NERC 
commented to WECC on the technical modification of the requirement that 
the actual power flow on all transmission paths shall at no time exceed 
the operating transfer capability for more than 20 minutes for paths 
that are stability limited or for more than 30 minutes for paths that 
are thermally limited.\29\ NERC stated that it was unclear whether the 
proposed requirement was more stringent than the NERC requirements.\30\
---------------------------------------------------------------------------

    \29\ NERC Petition at 27-28.
    \30\ Id.
---------------------------------------------------------------------------

    24. In response to NERC's evaluation, WECC stated that the 
currently-effective regional Reliability Standard creates confusion 
because system conditions may change the limiting conditions on a path, 
and this resulted in path operators taking ``more drastic actions'' to 
respond to a contingency within 20 minutes, which may put the system at 
greater risk. WECC indicated that the standard drafting team determined 
that changing the Standard from a 20 to 30 minute response time is 
``insignificant in terms of the probability of the next contingency 
occurring.'' \31\
---------------------------------------------------------------------------

    \31\ Id. at 28.
---------------------------------------------------------------------------

    25. NERC's Petition states that NERC TOP-007-0 does not contain a 
requirement that transmission operators reduce actual flows to within 
thermally-limited system operating limits within 30 minutes. Thus, 
according to NERC, the change from 20 to 30 minutes does not constitute 
a lowest common denominator approach, but rather provides clarity and 
eliminates the need to determine the limiting condition when a 
contingency occurs, thereby allowing transmission operators to 
concentrate on resolving the overload condition.
Commission Concerns
    26. The Commission seeks additional information to assess whether 
increasing the time to respond to stability-limited system operating 
limit violations will affect the reliable operation of the Western 
Interconnection. As the Commission previously has noted, we will 
evaluate such proposed changes, including those that may make a 
standard less stringent, on their merit so long as adequate reliability 
is maintained.\32\ In this case, the Commission is proposing to approve 
TOP-007-WECC-1; however, the technical information provided in the 
record to date does not demonstrate to our satisfaction that the 
proposed regional Reliability Standard is sufficient to ensure 
reliability in the WECC region.
---------------------------------------------------------------------------

    \32\ Version One Regional Reliability Standard for Resource and 
Demand Balancing, 133 FERC ] 61,063 at P 30 (2010).
---------------------------------------------------------------------------

    27. Therefore, we request that WECC, NERC and other interested 
entities provide in their comments an explanation and supporting 
technical data demonstrating that changing from a 20 to 30 minute 
response time is ``insignificant in terms of the probability of the 
next contingency occurring.'' \33\ For example, WECC could provide 
historical outage data showing instances where an event caused a 
stability-limited operating transfer limit to be exceeded, the amount 
of time it took the transmission operator to reduce flows and, if the 
transmission operator did not reduce flows within 20 minutes, whether a 
second contingency occurred after the 20 minutes. WECC also could 
provide information or data demonstrating that the WECC region has 
added facilities to reduce the number of stability-limited ``rated 
transfer paths;'' the WECC region has adopted new operational 
procedures or new protection schemes; or statistical operating data 
showing that the 20 minute response time was excessive for the Bulk-
Power System in the West.
---------------------------------------------------------------------------

    \33\ NERC Petition at 28.
---------------------------------------------------------------------------

    28. Additionally, based on the current record provided by NERC, we 
are not persuaded by the explanation that the current Reliability 
Standard's bifurcated response times cause confusion. We understand 
that, in practice, a transmission operator in the Western 
Interconnection can use the WECC Path Rating Catalog \34\ to determine 
if a rated system path is either thermally or stability limited for 
baseline system configurations shown in the Catalog, and will have 
previously determined operating limitations based on previously 
conducted contingency studies. The ``WECC Philosophy of SOL and IROL 
Conditions'' states that WECC's operating philosophy is to only operate 
in conditions that have been studied.\35\ In fact, during the 
Reliability Standard development process, one commenter stated that: 
``[t]oday, we can tell if the 20 or 30 minutes applies based on the 
statements in the Path Rating Catalog, which classify each of the Paths

[[Page 81162]]

as either stability limited or thermally limited.'' \36\
---------------------------------------------------------------------------

    \34\ As mentioned previously, the WECC Path Rating Catalog is 
referenced in a footnote in Table 1 of the currently-effective 
regional Reliability Standard.
    \35\ WECC Philosophy of SOL & IROL Conditions, available at 
http://www.wecc.biz/committees/StandingCommittees/OC/OPS/Lists/Calendar/Attachments/8/WECC%20Philosophy%20of%20SOL-IROL.pdf.
    \36\ NERC Petition, Exhibit C at page 50 of the NERC Petition as 
it appears in the Commission's eLibrary pdf document (Sierra Pacific 
Resources Transmission comments to WECC).
---------------------------------------------------------------------------

C. System Operating Limit Versus Operating Transfer Capability

    29. TOP-STD-007-0 has the stated purpose of ensuring that ``the 
Operating Transfer Capability limits requirements of the Western 
Interconnection are not exceeded.'' The regional Reliability Standard 
defines operating transfer capability as ``the maximum value of the 
most critical system operating parameter(s) which meets: (a) 
Precontingency criteria as determined by equipment loading capability 
and acceptable voltage conditions, (b) transient criteria as determined 
by equipment loading capability and acceptable voltage conditions, (c) 
transient performance criteria, and (d) post-contingency loading and 
voltage criteria.''
    30. The single requirement of TOP-STD-007-0 provides in part:

    Actual power flow and net scheduled power flow over an 
interconnection or transfer path shall be maintained within 
Operating Transfer Capability Limits (``OTC''). The OTC is the 
maximum amount of actual power that can be transferred over direct 
or parallel transmission elements comprising:
     An interconnection from one Transmission Operator area 
to another Transmission Operator area; or
     A transfer path within a Transmission Operator area.
The net schedule over an interconnection or transfer path within a 
Transmission Operator area shall not exceed the OTC, regardless of 
the prevailing actual power flow on the interconnection or transfer 
path.

    31. The NERC Glossary defines ``System Operating Limit'' as ``the 
value (such as MW, MVar, Amperes, Frequency or Volts) that satisfies 
the most limiting of the prescribed operating criteria for a specified 
system configuration to ensure operation within acceptable reliability 
criteria. System Operating Limits are based upon certain operating 
criteria. These include, but are not limited to:
     Facility Ratings (Applicable pre- and post-Contingency 
equipment or facility ratings)
     Transient Stability Ratings (Applicable pre- and post-
Contingency Stability Limits)
     Voltage Stability Ratings (Applicable pre- and post-
Contingency Voltage Stability)
     System Voltage Limits (Applicable pre- and post-
Contingency Voltage Limits).''
NERC Petition
    32. As mentioned above, proposed TOP-007-WECC-1 has the stated 
purpose of ensuring that ``when actual flows on Major WECC Transfer 
Paths exceed system operating limits (SOLs), their associated schedules 
and actual flows are not exceeded for longer than a specified time.'' 
Requirement R1 of the proposed regional Reliability Standard requires 
that, ``when the actual power flow exceeds a [system operating limit] 
for a Transmission path, the transmission operator shall take immediate 
action to reduce the actual power flow across the path.* * *.''
    33. As noted above, the NERC Petition includes, as Exhibit C, a 
Record of Development of Proposed Reliability Standard, which includes 
a mapping document comparing the current regional Standard to the 
proposed Standard. The mapping document explains the drafting team's 
actions and rationale for replacing the term ``operating transfer 
capability limit'' with the term ``system operating limit:''

    Removed definition of OTC and replaced OTC with SOL throughout 
the standard. Reasons included:
    1. Consistency with NERC standards, definitions and language.
    2. WECC Operating Committee adopted the document ``WECC 
Philosophy of SOL & IROL Conditions'' which states that a [sic] WECC 
operates only under SOL conditions. This statement is interpreted as 
declaring that a WECC OTC is an SOL.
    3. Removes ambiguity regarding applicability of other NERC 
standards.\37\
---------------------------------------------------------------------------

    \37\ See NERC Petition, Exhibit C, Comparison of WECC Standard 
TOP-STD-007-0 to proposed WECC Standard TOP-007-WECC-1, beginning at 
page 86 of the NERC Petition as it appears in the Commission's 
eLibrary pdf document.

    34. The WECC Philosophy of SOL and IROL Conditions, adopted by the 
WECC Operating Committee, states that ``the WECC operating philosophy 
is to operate only in conditions that have been studied. Therefore, 
under these normal operating conditions, there are never IROL 
conditions (only SOL).'' \38\
---------------------------------------------------------------------------

    \38\ WECC Philosophy of SOL & IROL Conditions, available at 
http://www.wecc.biz/committees/StandingCommittees/OC/OPS/Lists/Calendar/Attachments/8/WECC%20Philosophy%20of%20SOL-IROL.pdf.
---------------------------------------------------------------------------

Commission Concerns
    35. NERC states that, in addition to addressing the Commission's 
concerns noted in the June 2007 Order, ``WECC made substantial 
technical modifications to the proposed standard TOP-007-WECC-1 on its 
own accord.'' \39\ However, NERC does not effectively discuss the scope 
and substance of these substantial technical modifications. Rather, the 
NERC Petition explains that ``because WECC followed its approved 
process in developing these modifications NERC continues to rebuttably 
presume this standard is just, reasonable, and not unduly 
discriminatory or preferential, and in the public interest.'' \40\ The 
NERC Petition does not explain the shift from ensuring that operating 
transfer capability limits are not exceeded to ensuring that system 
operating limits are not exceeded for longer than a specified time. It 
appears that the mapping document discussed above provides the only 
insight in the record into the shift in focus of the proposed regional 
Reliability Standard from operating transfer capability limits to 
system operating limits.
---------------------------------------------------------------------------

    \39\ NERC Petition at 8.
    \40\ Id.
---------------------------------------------------------------------------

    36. We have concerns regarding whether it is accurate to equate 
operating transfer capability limits and system operating limits. The 
term system operating limit is used in reference to a rated system path 
within the Western Interconnection and refers to the facility or 
element that presents the most limiting of the prescribed operating 
criteria for the rated system path. The most limiting facility or 
element may be either thermally or stability limited. The operating 
transfer capability limit corresponds to the ``maximum amount of actual 
power transferred over direct or parallel transmission elements from 
one transmission operator to another transmission operator.'' While 
these two terms relate to the same amount of power that may be 
transferred from one end of the rated system path to the other, the 
terms measure different things. When power flow on the facilities or 
elements that constitute a system operating limit reaches the system 
operating limit's rating, the amount of power being transmitted across 
the facilities that constitute the rated system path becomes the 
operating transfer capability. This becomes problematic when the most 
limiting operating criteria, i.e., that creates the system operating 
limit, is not located on the rated system path, but rather is located 
on a neighboring non-rated system path facility or element.
    37. Based on the Commission's understanding that there is a 
difference in these terms, we are concerned that the facilities that 
make up the system operating limit may not be part of those facilities 
that make up the rated system path, i.e., direct or parallel 
transmission elements comprising: (1) An interconnection from one 
transmission operator area to another transmission

[[Page 81163]]

operator area; or (2) a transfer path within a transmission operator 
area. When operating transfer capability is replaced by system 
operating limit, this requirement could result in a transmission 
operator being responsible for monitoring the flows on transmission 
system operating limit facilities that may not be on its ``rated system 
path'' as shown in the WECC Transfer Path Table and the referenced Path 
Rating Catalog. The Commission is further concerned that this scenario 
creates the possibility that an entity to which the regional 
Reliability Standard applies would be responsible for operating 
facilities that are not part of the rated path system shown in the WECC 
Transfer Path Table and Catalog. We request comments from NERC, WECC 
and other interested parties regarding these concerns.
    38. Similarly, we seek comment from NERC, WECC and others regarding 
the manner in which a transmission operator would address system 
operating limit facilities that are not part of the rated system path. 
We also request comments regarding the possibility that transmission 
operators may, under the proposed regional Reliability Standard, be 
responsible for facilities that they do not own and which are not on 
the rated system path but comprise the system operating limit. For 
commenters who believe that this is a problem, we also request comments 
regarding how to resolve this potential dilemma.
    39. Additionally, we are concerned that the use of the term system 
operating limit rather than the term operating transfer capability is 
inconsistent with the WECC Path Rating Catalog and would cause 
confusion. Historically, WECC has used the term operating transfer 
capability, and not system operating limit, to describe transmission 
limitations. Here, it appears that NERC and WECC are using the two 
terms interchangeably as equivalents. Thus, we request that WECC, NERC 
and other interested entities provide clarification regarding the 
proper understanding of the two terms

D. Applicability

    40. TOP-STD-007-0 is applicable to transmission owners or operators 
that maintain transmission paths listed in the WECC Transfer Path 
Table, which is included as Attachment A to the Reliability Standard. 
The attachment identifies 40 major transmission paths in the Western 
Interconnection.
Proposed Regional Reliability Standard
    41. Proposed TOP-WECC-007-1 removes Attachment A and, instead, 
directs transmission owners to the most current WECC Transfer Path 
Table, which is available on the WECC Web site. The table currently 
posted on the WECC Web site identifies the same 40 major paths as 
Attachment A to the approved regional Reliability Standard.
    42. The Petition does not explain why WECC moved the WECC Transfer 
Path Table from an attachment to a reference accessed through the WECC 
Web site. However, the mapping document discussed above states that: 
``[a]s an attachment to the standard, revisions to [the WECC Transfer 
Path Table] must be made through the standards process. By making [the 
WECC Transfer Path Table] a changing the [sic] referenced document in 
the WECC library, it opens the possibility of the table being changed 
through a WECC process without the need for changing the standard 
itself (for example, by recommendation of the OTCPC and approval by the 
Board).'' In response to a stakeholder question during the development 
process, WECC indicated its belief that, under the proposed Standard, 
WECC Board approval would be required for changes to the Table, but 
NERC and Commission approvals would not be required.\41\
---------------------------------------------------------------------------

    \41\ NERC Petition, Exhibit C, at page 51, 53 of the NERC 
Petition as it appears in the Commission's eLibrary pdf document 
(reply to questions from Sierra Pacific Resources Transmission and 
Bonneville Power Administration).
---------------------------------------------------------------------------

Commission Concerns
    43. The Commission is concerned that by referencing the WECC 
Transfer Path Table hosted on the WECC Web site, the applicability of 
TOP-007-WECC-1 could change without Commission and industry notice and 
opportunity to respond. Under the currently-effective regional 
Reliability Standard, modifications to the WECC Transfer Path Table 
must be approved by the Commission. Accordingly, the Commission seeks 
comment on how NERC and WECC intend to develop and provide notice of 
proposed changes to the WECC Transfer Path Table. We also seek comment 
on how NERC and WECC will ensure that any resulting changes to the 
applicability of the Reliability Standard will not reduce its 
effectiveness. The Commission also requests comment regarding whether 
the current WECC regional Reliability Standards or related documents 
include the criterion that governs when paths are added or removed from 
the WECC Transfer Path Table and requests further information on the 
scope and application of the criterion.
    44. Additionally, under section 215(d)(5) of the FPA, we propose to 
direct WECC to develop a modification to the Reliability Standard to 
address our concern. For example, WECC could include its criterion for 
identifying and modifying major transmission paths listed in the WECC 
Transfer Path Table and referenced Path Rating Catalog in the 
Reliability Standard, and make an informational filing with the 
Commission and NERC each time it makes a modification to the table or 
referenced catalog. Another option would be for WECC to file its 
criterion with the Commission and post revised transfer path tables and 
referenced catalogs on its Web site before they become effective with 
concurrent notification to NERC and the Commission. Alternatively, WECC 
could include the WECC Transfer Path Table as an attachment to the 
modified Reliability Standard. In this way, the Commission would be 
able to verify that the Regional Entity is applying the requirements of 
the regional Reliability Standard in a just and reasonable manner.

E. Violation Risk Factors

    45. As part of its compliance and enforcement program, NERC must 
assign a ``lower,'' ``medium,'' or ``high'' violation risk factor to 
each requirement of each mandatory Reliability Standard to associate a 
violation of the Requirement with its potential impact on the 
reliability of the Bulk-Power System. In the June 2007 Order approving 
TOP-STD-007-0, the Commission noted that WECC's existing sanctions 
table was inconsistent with NERC's Sanction Guidelines, and directed 
WECC to develop violation risk factors that conform to corresponding 
NERC Reliability Standards.\42\
---------------------------------------------------------------------------

    \42\ North American Electric Reliability Corp., 119 FERC ] 
61,260 at P 54.
---------------------------------------------------------------------------

Proposed Regional Reliability Standard
    46. TOP-007-WECC-1 includes violation risk factors for both of the 
requirements, without a separate violation risk factor for sub-
requirement R2.1.
Commission Concerns
    47. TOP-007-WECC-1 and its continent-wide counterpart, NERC TOP-
007-0, share the same reliability objective: To require transmission 
operators to take corrective action to reduce the amount of power 
flowing on a transmission path when it exceeds system operating limits 
or interconnection reliability operating limit to below the system 
operating limit or interconnection reliability operating limit and 
thereby minimize

[[Page 81164]]

the amount of time the Bulk-Power System is operating one contingency 
away from a cascading outage. In its Petition, NERC does not explain 
why WECC assigned violation risk factors to the proposed Reliability 
Standard that differ from the corresponding continent-wide Reliability 
Standard's violation risk factors.\43\
---------------------------------------------------------------------------

    \43\ See violation risk factors for TOP-007-0.
---------------------------------------------------------------------------

    48. We have noted previously that we expect consistency among 
violation risk factor assignments of Requirements that share the same 
reliability objective.\44\ Therefore, the Commission seeks comment from 
NERC and WECC regarding why the proposed regional Reliability Standard 
contains violation risk factors that are not aligned with those of the 
continent-wide Reliability Standard. The Commission proposes to direct 
WECC to modify the assigned violation risk factor for TOP-007-WECC-01, 
Requirements R1 and R2 from ``medium'' and ``low,'' respectively, to 
``high'' and requests comment on this proposal.
---------------------------------------------------------------------------

    \44\ North American Electric Reliability Corp., 119 FERC ] 
61,145, at P 16, 25 (2007).
---------------------------------------------------------------------------

F. Violation Severity Levels

    49. NERC, in its July 30, 2008 evaluation of WECC's proposed 
Reliability Standard, noted that the violation severity levels in the 
proposed Reliability Standard do not conform to NERC's format.\45\
---------------------------------------------------------------------------

    \45\ NERC Petition at 29.
---------------------------------------------------------------------------

Proposed Regional Reliability Standard
    50. NERC has adopted a standard violation severity level table 
format that is used in its Reliability Standards, which also should be 
used in all regional Reliability Standards. In its evaluation of the 
proposed regional Reliability Standard, NERC noted that violation 
severity levels do not conform to the NERC format. The NERC Petition 
notes that WECC agreed to address the formatting issue during the next 
revision of the regional Reliability Standard.
Commission Proposal
    51. The Commission agrees with NERC's comments, and proposes to 
direct WECC to modify the violation severity levels associated with 
each requirement and sub-requirement of TOP-007-WECC-1, and submit them 
in the approved table format.

III. Information Collection Statement

    52. The Office of Management and Budget (OMB) regulations require 
that OMB approve certain reporting and recordkeeping (collections of 
information) imposed by an agency.\46\ The information contained here 
is also subject to review under section 3507(d) of the Paperwork 
Reduction Act of 1995.\47\ As stated above, the Commission previously 
approved the regional Reliability Standard that is the subject of the 
current rulemaking. In the event that the Commission, after receiving 
comments, determines to adopt the proposed revisions to the Reliability 
Standard, they would not substantially change the entities' current 
reporting burden. Thus, the current proposal would not substantively 
affect the burden estimates relating to the currently effective version 
of the Reliability Standard previously approved.\48\
---------------------------------------------------------------------------

    \46\ 5 CFR 1320.11.
    \47\ 44 U.S.C. 3507(d).
    \48\ North American Electric Reliability Corp., 119 FERC ] 
61,260 at P 125-131.
---------------------------------------------------------------------------

    53. The proposed TOP-007-WECC-1, which would replace TOP-STD-007-0, 
does not modify or otherwise affect the burden related to the 
collection of information already in place. Thus, the proposed 
modifications to the current Reliability Standard will neither increase 
the reporting burden nor impose any additional information collection 
requirements.
    54. The Commission does not foresee any additional impact on the 
reporting burden for small businesses, because the proposed 
modifications do not increase the existing burden. However, we will 
submit this proposed rule to OMB for review.
    Title: Version One Regional Reliability Standard for Transmission 
Operations.
    Action: Proposed Collection FERC-725E.
    OMB Control No.: 1902-0246.
    Respondents: Businesses or other for-profit institutions; not-for-
profit institutions.
    Frequency of Responses: On occasion.
    Necessity of the Information: This proposed rule proposes to 
approve the requested modifications to a regional Reliability Standard 
pertaining to System Operating Limits. The proposed Reliability 
Standard is one of the standards that helps ensure the reliable 
operation of the Western Interconnection.
    Internal Review: The Commission has reviewed the proposed 
Reliability Standard and made a determination that its action is 
necessary to implement section 215 of the FPA. These requirements, if 
accepted, should conform to the Commission's expectation for System 
Operating Limits as well as procedures within the energy industry.
    55. Interested persons may obtain information on the reporting 
requirements by contacting the following: Federal Energy Regulatory 
Commission, 888 First Street, NE., Washington, DC 20426 [Attention: 
Ellen Brown, Office of the Executive Director, e-mail: 
DataClearance@ferc.gov, phone: (202) 502-8663, fax: (202) 273-0873].
    56. For submitting comments concerning the collection(s) of 
information and the associated burden estimate(s), please send your 
comments to the Commission and to the Office of Management and Budget, 
Office of Information and Regulatory Affairs, Washington, DC 20503 
[Attention: Desk Officer for the Federal Energy Regulatory Commission, 
phone: (202) 395-4638, fax: (202) 395-7285]. For security reasons, 
comments to OMB should be submitted by e-mail to: oira_submission@omb.eop.gov. Comments submitted to OMB should include Docket 
Number RM09-14 and OMB Control Number 1902-0246.

IV. Environmental Analysis

    57. 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.\49\ 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.\50\ The actions proposed here 
fall within this categorical exclusion in the Commission's regulations.
---------------------------------------------------------------------------

    \49\ Order No. 486, Regulations Implementing the National 
Environmental Policy Act of 1969, FERC Stats. & Regs., Regulations 
Preambles 1986-1990 ] 30,783 (1987).
    \50\ 18 CFR 380.4(a)(2)(ii).
---------------------------------------------------------------------------

V. Regulatory Flexibility Act Certification

    58. The Regulatory Flexibility Act of 1980 (RFA) \51\ 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

[[Page 81165]]

business.\52\ 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.\53\ The RFA is not implicated by this proposed rule because the 
modification discussed herein will not have a significant economic 
impact on a substantial number of small entities. Moreover, the 
proposed Reliability Standards reflect a continuation of existing 
requirements for these reliability entities. Accordingly, no regulatory 
flexibility analysis is required.
---------------------------------------------------------------------------

    \51\ 5 U.S.C. 601-612.
    \52\ 13 CFR 121.101
    \53\ 13 CFR 121.201, Sector 22, Utilities & n. 1.
---------------------------------------------------------------------------

VI. Comment Procedures

    59. 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. Comments must refer to 
Docket No. RM09-14-000, and must include the commenter's name, the 
organization they represent, if applicable, and their address in their 
comments.
    60. The Commission encourages comments to be filed electronically 
via the eFiling link on the Commission's Web site at http://www.ferc.gov. The Commission accepts most standard word processing 
formats. Documents created electronically using word processing 
software should be filed in native applications or print-to-PDF format 
and not in a scanned format. Commenters filing electronically do not 
need to make a paper filing.
    61. 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.
    62. 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.

VII. Document Availability

    63. In addition to publishing the full text of this document in the 
Federal Register, the Commission provides all interested persons an 
opportunity to view and/or print the contents of this document via the 
Internet through the Commission's Home Page (http://www.ferc.gov) and 
in the Commission's Public Reference Room during normal business hours 
(8:30 a.m. to 5 p.m. Eastern time) at 888 First Street, NE., Room 2A, 
Washington DC 20426.
    64. From the Commission's Home Page on the Internet, this 
information is available on eLibrary. The full text of this document is 
available on eLibrary in PDF and Microsoft Word format for viewing, 
printing, and/or downloading. To access this document in eLibrary, type 
the docket number excluding the last three digits of this document in 
the docket number field.
    65. User assistance is available for eLibrary and the Commission'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. 2010-32357 Filed 12-23-10; 8:45 am]
BILLING CODE 6717-01-P