80 FR 22395 - Real Power Balancing Control Performance Reliability Standard
DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission Federal Register Volume 80, Issue 77 (April 22, 2015)
Federal Energy Regulatory Commission
Federal Register Volume 80, Issue 77 (April 22, 2015)
| Page Range | 22395-22403 | |
| FR Document | 2015-09227 |
[Federal Register Volume 80, Number 77 (Wednesday, April 22, 2015)] [Rules and Regulations] [Pages 22395-22403] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-09227] ----------------------------------------------------------------------- DEPARTMENT OF ENERGY Federal Energy Regulatory Commission 18 CFR Part 40 [Docket No. RM14-10-000; Order No. 810] Real Power Balancing Control Performance Reliability Standard AGENCY: Federal Energy Regulatory Commission, Energy. ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: The Federal Energy Regulatory Commission (Commission) approves Reliability Standard BAL-001-2 (Real Power Balancing Control Performance) and four new definitions submitted by the North American Electric Reliability Corporation (NERC), the Commission-certified Electric Reliability Organization. Reliability Standard BAL-001-2 is designed to ensure that applicable entities maintain system frequency within narrow bounds around a scheduled value, and improves reliability by adding a frequency component to the measurement of a Balancing Authority's Area Control Error. In addition, the Commission directs NERC to submit an informational filing pertaining to the potential impact of the Reliability Standard, and also directs NERC to revise one definition. DATES: This rule is effective June 22, 2015. FOR FURTHER INFORMATION CONTACT: Enakpodia Agbedia (Technical Information), Office of Electric Reliability, Division of Reliability Standards, Federal Energy Regulatory Commission, 888 First Street NE., Washington, DC 20426, Telephone: (202) 502-6750, [email protected]. Mark Bennett (Legal Information), Office of the General Counsel, Federal Energy Regulatory Commission, 888 First Street NE., Washington, DC 20426, Telephone: (202) 502-8524, [email protected]. SUPPLEMENTARY INFORMATION: Order No. 810 Final Rule 1. Pursuant to section 215 of the Federal Power Act (FPA),\1\ the Commission approves Reliability Standard BAL-001-2 (Real Power Balancing Control Performance) submitted by the North American Electric Reliability Corporation (NERC), the Commission-certified Electric Reliability Organization (ERO). Reliability Standard BAL-001-2 applies to balancing authorities and Regulation Reserve Sharing Groups,\2\ and is intended to ensure that Interconnection frequency is maintained within predefined frequency limits. The Commission also finds that Reliability Standard BAL-001-2 addresses the Commission's directive set forth in Order No. 693 pertaining to BAL-002-0.\3\ The Commission approves the retirement of currently-effective Reliability Standard BAL-001-1 immediately prior to the effective date of Reliability Standard BAL-001-2. --------------------------------------------------------------------------- \1\ 16 U.S.C. 824(o). \2\ NERC defines Regulation Reserve Sharing Group as ``[a]group whose members consist of two or more Balancing Authorities that collectively maintain, allocate, and supply the Regulating Reserve required for all member Balancing Authorities to use in meeting applicable regulating standards.'' NERC Petition at 7. \3\ Mandatory Reliability Standards for the Bulk-Power System, Order No. 693, FERC Stats. & Regs. ] 31,242, order on reh'g, Order No. 693-A, 120 FERC ] 61,053 (2007). --------------------------------------------------------------------------- 2. Further, the Commission approves NERC's four proposed definitions, associated violation risk factors and violation severity levels, implementation plan, and effective date. The Commission also directs NERC to submit an informational filing 90 days after the end of the two-year period following implementation that includes an analysis of data on whether experience with the Balancing Authority ACE Limit in the first two years after approval has seen ACE swings and inadvertent interchange \4\ and unscheduled power flows \5\ that could cause system operating limit (SOL) and interconnection reliability operating limit (IROL) exceedances, and further directs NERC to revise one definition. --------------------------------------------------------------------------- \4\ Inadvertent interchange is ``[t]he difference between the Balancing Authority's Net Actual Interchange and Net Scheduled Interchange. (IA -IS ).'' NERC Glossary of Terms Used in Reliability Standards (NERC Glossary) at 42. \5\ Unscheduled power flows generally refers to power flows that result from the law of physics that causes power from a given source to flow over all possible paths to its destination. --------------------------------------------------------------------------- I. Background 3. Section 215 of the FPA requires a Commission-certified ERO to develop mandatory and enforceable Reliability Standards that are subject to Commission review and approval. Specifically, the Commission may approve, by rule or order, a proposed [[Page 22396]] Reliability Standard or modification to a Reliability Standard if it determines that the Reliability Standard is just, reasonable, not unduly discriminatory or preferential and in the public interest.\6\ Once approved, the Reliability Standards may be enforced by NERC, subject to Commission oversight, or by the Commission independently.\7\ --------------------------------------------------------------------------- \6\ 16 U.S.C. 824o(d)(2). \7\ Id. 824o(e). --------------------------------------------------------------------------- 4. Pursuant to section 215 of the FPA, the Commission established a process to select and certify an ERO,\8\ and subsequently certified NERC as the ERO.\9\ Subsequent to the Commission's issuance of Order No. 693, approving 83 of the 107 Reliability Standards filed by NERC, the Commission approved Reliability Standard BAL-001-0 and companion Reliability Standard BAL-002-0.\10\ While approving Reliability Standard BAL-002-0, the Commission directed NERC ``to modify this Reliability Standard to define a significant deviation and a reportable event, taking into account all events that have an impact on frequency, e.g., loss of supply, loss of load and significant scheduling problems, which can cause frequency disturbances and to address how balancing authorities should respond.'' \11\ --------------------------------------------------------------------------- \8\ Rules Concerning Certification of the Electric Reliability Organization; and Procedures for the Establishment, Approval, and Enforcement of Electric Reliability Standards, Order No. 672, FERC Stats. & Regs. ] 31,204, order on reh'g, Order No. 672-A, FERC Stats. & Regs. ] 31,212 (2006). \9\ North American Electric Reliability Corp., 116 FERC ] 61,062, order on reh'g and compliance, 117 FERC ] 61,126 (2006), aff'd sub nom. Alcoa, Inc. v. FERC, 564 F.3d 1342 (D.C. Cir. 2009). \10\ North American Electric Reliability Corporation, Docket No. RD13-11-000 (Oct. 16, 2013) (delegated letter order). \11\ Order No. 693, FERC Stats. & Regs. ] 31,242 at P 355. --------------------------------------------------------------------------- II. NERC Petition and Reliability Standard BAL-001-2 5. On April 2, 2014, NERC filed a petition seeking approval of Reliability Standard BAL-001-2, four new definitions to be added to the NERC Glossary and the associated violation risk factors and violation severity levels, effective date, and implementation plan.\12\ In its petition, NERC explained that balancing generation and load is necessary to ensure that system frequency is maintained within narrow bounds based on a scheduled value. NERC stated that the purpose of Reliability Standard BAL-001-2 is to maintain Interconnection frequency within predefined frequency limits and that the Reliability Standard ``improves reliability by adding a frequency component to the measurement of a Balancing Authority's Area Control Error (ACE) and allows for the formation of Regulation Reserve Sharing Groups.'' \13\ NERC further stated that Reliability Standard BAL-001-2 is just, reasonable, not unduly discriminatory or preferential, and in the public interest because it satisfies the factors set forth in Order No. 672, which the Commission applies when reviewing a proposed Reliability Standard.\14\ Also, NERC asserted that Reliability Standard BAL-001-2 addresses the Commission's Order No. 693 directive pertaining to Reliability Standard BAL-002-0. --------------------------------------------------------------------------- \12\ Reliability Standard BAL-001-2 not attached to this Final Rule. The standard is available on the Commission's eLibrary document retrieval system in Docket No. RM14-10-000 and on the NERC Web site, www.nerc.com. \13\ NERC Petition at 2. \14\ Id. at 6 and Exhibit C (Order No. 672 Criteria) (citing Order No. 672, FERC Stats. & Regs. ] 31,204 at PP 323-335, 444). --------------------------------------------------------------------------- 6. Reliability Standard BAL-001-2 replaces the Control Performance Standard 2 (CPS2) in currently-effective Requirement R2 with a new term: ``Balancing Authority ACE Limit.'' \15\ The Balancing Authority ACE Limit, unique for each balancing authority, contains dynamic limits as a function of Interconnection frequency and provides the basis for a balancing authority's obligation to balance its resources and demand in real-time so that its clock-minute average ACE does not exceed its Balancing Authority ACE Limit for more than 30 consecutive clock- minutes.\16\ --------------------------------------------------------------------------- \15\ Area Control Error (ACE) is the ``instantaneous difference between a Balancing Authority's net actual and scheduled interchange, taking into accounts the effects of Frequency Bias, correction for meter error, and Automatic Time Error Correction (ATEC), if operating in the ATEC mode. ATEC is only applicable to Balancing Authorities in the Western Interconnection.'' NERC Glossary at 7. \16\ NERC Petition at 12. --------------------------------------------------------------------------- 7. Reliability Standard BAL-001-2 has two requirements and two attachments that contain the mathematical equations for calculating the Control Performance Standard 1 (CPS1) in Requirement R1, the Balancing Authority ACE Limit in Requirement R2, and associated measures. NERC stated that the only change to Requirement R1 is to move the equation and explanation of the individual components of CPS1 to Attachment 1. NERC explained that the revisions to Requirement R1 ``are administratively efficient and clarify the intent of the Requirement.'' \17\ NERC further stated that the ``underlying performance aspect'' of Requirement R1 remains the same: ``to measure how well a Balancing Authority is able to control its generation and load management programs, as measured by its ACE, to support its Interconnection's frequency over a rolling one-year period.'' \18\ --------------------------------------------------------------------------- \17\ NERC Petition at 11. \18\ Id. --------------------------------------------------------------------------- 8. Requirement R2 is new and replaces the existing Control Performance Standard 2 requirement. Currently-effective Reliability Standard BAL-001-1, Requirement R2 requires each balancing authority to operate such that for at least 90 percent of the ten-minute periods in a calendar month (using six non-overlapping periods per hour), the average ACE must be within a specific limit, referred to as L10 . 9. Requirement R2 of Reliability Standard BAL-001-2 states: Balancing Authority shall operate such that its clock-minute average of Reporting ACE does not exceed its clock-minute Balancing Authority ACE Limit (BAAL) for more than 30 consecutive clock- minutes, calculated in accordance with Attachment 2, for the applicable Interconnection in which the Balancing Authority operates. 10. NERC explained that the Balancing Authority ACE Limit is unique for each balancing authority and provides dynamic limits for the balancing authority's ACE value as a function of its Interconnection frequency.\19\ NERC stated that Reliability Standard BAL-001-2 is intended to enhance the reliability of each Interconnection by maintaining frequency within predefined limits under all conditions. Furthermore, NERC stated that Reliability Standard BAL-001-2 and accompanying definitions include the benefits of the ATEC equation in the Western Electricity Coordinating Council's (WECC) regional variance in Reliability Standard BAL-001-1.\20\ --------------------------------------------------------------------------- \19\ Id. at 12. \20\ Id. at 2. --------------------------------------------------------------------------- 11. In its petition, NERC proposed violation risk factors and violation severity levels for each requirement of Reliability Standard BAL-001-2, an implementation plan and an effective date. NERC stated that these proposals were developed and reviewed for consistency with NERC and Commission guidelines. 12. NERC proposed an effective date for Reliability Standard BAL- 001-2 that is the first day of the first calendar quarter that is twelve months after the date of Commission approval. NERC stated that this implementation date will allow entities to make any software adjustment that may be required to perform the Balancing Authority ACE Limit calculations.\21\ --------------------------------------------------------------------------- \21\ Id. at 3. --------------------------------------------------------------------------- 13. On May 9, 2014, NERC submitted a supplemental filing to address the status of the Commission directive in [[Page 22397]] Order No. 693 that NERC ``define a significant deviation and a reportable event, taking into account all events that have an impact on frequency, e.g., loss of supply, loss of load and significant scheduling problems. . . .'' \22\ Further, NERC provided an update regarding the status of the field trial undertaken for BAL-001-2. In the supplemental filing, NERC reiterated the importance of establishing dynamic limits for a balancing authority's ACE as a function of the Interconnection frequency, stating that ``[o]ne of the reliability benefits of the proposed Reliability Standard is that it allows Balancing Authorities to calculate their position within these boundaries on a real-time basis and take action to support reliability.'' \23\ Further, NERC stated that Reliability Standard BAL- 001-2 addresses the Commission's directive related to BAL-002-0 ``in an equally efficient and effective manner.'' \24\ NERC added that revisions to Reliability Standard BAL-002-1 are currently being developed and will complement Reliability Standard BAL-001-2. Regarding the ongoing field trial, discussed below, NERC stated that ``the widespread participation of Balancing Authorities has provided insight into how the changes in Reliability Standard BAL-001-2 will impact reliability.'' \25\ --------------------------------------------------------------------------- \22\ NERC May 9, 2014 Supplemental Filing at 3-5 (citing Order No. 693, FERC Stats. & Regs. ] 31,242 at P 355). \23\ Id. at 2. \24\ Id. at 3. \25\ NERC Supplemental Filing at 6 (stating that 47 balancing authorities participated in the field trial: 16 in the Eastern Interconnection, 29 in the Western Interconnection, ERCOT and Qu[eacute]bec). --------------------------------------------------------------------------- 14. On July 31, 2014, NERC submitted an informational filing of its Preliminary Field Trial Report evaluating the effects of Reliability Standard BAL-001-2.\26\ NERC stated that the Field Trial Report results to date demonstrate that the correlation between Requirements R1 and R2 of Reliability Standard BAL-001-2 drive corrective actions to support Interconnection frequency and reliability.\27\ NERC also stated that the Balancing Authority ACE Limit, in conjunction with currently- effective Reliability Standard BAL-003-1 (Frequency Response and Frequency Bias Setting), satisfies the directive in Order No. 693 pertaining to Reliability Standard BAL-002-0.\28\ --------------------------------------------------------------------------- \26\ NERC July 31, 2014 Informational Filing (Field Trial Report). \27\ NERC Field Trial Report at 1. \28\ Id. at 14. --------------------------------------------------------------------------- III. Notice of Proposed Rulemaking 15. On November 20, 2014, the Commission issued a Notice of Proposed Rulemaking (NOPR) proposing to approve Reliability Standard BAL-001-2 as just, reasonable, not unduly discriminatory or preferential and in the public interest.\29\ The Commission also proposed to approve NERC's four proposed definitions, violation risk factor and violation severity level assignments, and the retirement of currently-effective Reliability Standard BAL-001-1.\30\ The NOPR stated that the new Balancing Authority ACE Limit in Reliability Standard BAL- 001-2 encourages operation in support of Interconnection frequency and drives corrective action back within predefined ACE limits when needed to adjust Interconnection frequency. --------------------------------------------------------------------------- \29\ Real Power Balancing Control Performance Reliability Standard, Notice of Proposed Rulemaking, 79 FR 70,483 (November 26, 2014), 149 FERC ] 61,139 (2014). \30\ The four proposed definitions for inclusion in the NERC Glossary are: Regulation Reserve Sharing Group, Reserve Sharing Group Reporting ACE, Reporting ACE, and Interconnection. NERC Petition at 7-10. The standard drafting team explained that Regulation Reserve Sharing Group will be added to the NERC Compliance Registry prior to implementation of the Reliability Standard. NERC Petition, Exhibit G (Summary of Development History and Complete Record of Development), Consideration of Comments, April 2013 at 13. --------------------------------------------------------------------------- 16. While the Commission proposed to approve Reliability Standard BAL-001-2, the Commission raised concerns regarding the potential of the Reliability Standard to contribute to unscheduled power flows and inadvertent interchange. Based on that concern, the Commission proposed to direct NERC to monitor unscheduled power flows and inadvertent interchange in the Western and Eastern Interconnections and submit an informational filing following implementation of the Reliability Standard providing the number of SOL/IROL violations, the date, time, location, duration and magnitude due to unscheduled power flows and inadvertent interchange. In the NOPR, the Commission sought comments on the following issues: (1) The need for an informational filing and whether NERC should include additional data pertaining to unscheduled power flows and inadvertent interchange in its informational filing; and (2) whether a regional variance would be necessary for a region experiencing adverse impacts from the Reliability Standard due to inadvertent interchange. 17. In response to the NOPR, the Commission received comments from: NERC, Tri-State Generation and Transmission Association, (Tri-State), Arizona Public Service Company (APS), Edison Electric Institute (EEI), NaturEner USA (NaturEner), Regional Transmission Organizations-- Midcontinent Independent System Operator, ISO New England, and PJM Interconnection (collectively ``Indicated RTOs''), The Steel Manufacturers Association (SMA), Duke Energy Corporation (Duke), Western Area Power Administration (WAPA), Powerex Corp (Powerex), New York Independent System Operator (NYISO), and Bonneville Power Administration (BPA). IV. Discussion 18. Pursuant to FPA section 215(d)(2), we approve Reliability Standard BAL-001-2 as just, reasonable, not unduly discriminatory or preferential, and in the public interest. The purpose of Reliability Standard BAL-001-2 is to control Interconnection frequency within defined limits. The Commission determines that the Reliability Standard will help ensure that Interconnection frequency is maintained through both long and short term performance measures for Interconnection frequency control and dynamic (i.e., real-time) limits that are specific for each balancing authority and Interconnection.\31\ We find that, by basing Balancing Authority ACE Limits on predefined frequency trigger limits for each Interconnection, the real-time measurements established in the Reliability Standard will help ensure that the Interconnection frequency returns to a reliable state should a balancing authority's ACE, or the Interconnection's frequency, exceed acceptable bounds. --------------------------------------------------------------------------- \31\ NERC Supplemental Filing at 2. --------------------------------------------------------------------------- 19. We also determine that the Reliability Standard satisfies the outstanding directive concerning Reliability Standard BAL-002 set forth in Order No. 693, as explained in the NOPR,\32\ and approve NERC's four definitions, violation risk factor and violation severity level assignments, and the retirement of currently-effective Reliability Standard BAL-001-1. Further, we approve NERC's implementation plan, in which NERC proposes an effective date of the first day of the first calendar quarter, twelve months after the date of Commission approval.\33\ --------------------------------------------------------------------------- \32\ NOPR, 149 FERC ] 61,139 at PP 18-19. \33\ NERC Petition, Ex. B (Implementation Plan for Proposed Reliability Standard BAL-001-2) at 4. --------------------------------------------------------------------------- 20. While approving Reliability Standard BAL-001-2, as discussed below, we direct NERC to submit an informational filing to assess the potential impact of the Reliability Standard as described herein and to revise the definition of the term Reporting ACE in the NERC Glossary. [[Page 22398]] 21. We discuss below the following issues raised in the NOPR and addressed in the comments: (A) The proposed informational filing and NOPR comments regarding the need to revise the definition of the term Reporting ACE; and (B) whether a regional variance is necessary to address possible adverse impacts from the implementation of Reliability Standard BAL-001-2. A. Informational Filing and Definition of Reporting ACE NOPR 22. In the NOPR, the Commission noted that feedback from some stakeholders who participated in the field trial indicated that the Balancing Authority ACE Limit established in Requirement R2 of Reliability Standard BAL-001-2 could increase unscheduled power flows, possibly resulting in approaching or exceeding SOL/IROL violations. The NOPR observed that, in comments submitted to NERC's standard drafting team, one large transmission operator stated that the Balancing Authority ACE Limit could increase the number of system operating limit violations, and could cause large unscheduled power flows resulting in an increased ACE.\34\ Another stakeholder commented that the Balancing Authority ACE Limit could provide opportunities for entities to create unscheduled power flows within the boundaries established by the Reliability Standard.\35\ --------------------------------------------------------------------------- \34\ NOPR, 149 FERC ] 61,139 at P 20 (citing NERC Petition, Ex. G (Summary of Development History and Complete Record of Development), Consideration of Comments, April 2013 at 43). \35\ Id., Ex. G, Consideration of Comments, at 77. --------------------------------------------------------------------------- 23. The NOPR stated that, while NERC asserted that there was no relationship between the Balancing Authority ACE Limit field trial and accumulated inadvertent interchange, a large allowance of ACE deviations could increase the amount of inadvertent interchange on the bulk electric system. The NOPR explained that Reliability Standard BAL- 001-2 could allow balancing authorities to have a very large deviation from an ACE of zero and still be compliant with the dynamic values of the Balancing Authority ACE Limits in the proposed Reliability Standard.\36\ --------------------------------------------------------------------------- \36\ NOPR, 149 FERC ] 61,139 at P 21. --------------------------------------------------------------------------- 24. Based on this information, in the NOPR, the Commission expressed concern that Reliability Standard BAL-001-2 may have the ``unintended consequence'' of (i) creating large unscheduled power flows that could unduly burden transmission operators and reliability coordinators in addressing power flows that approach or exceed system operating limits or interconnection reliability operating limits, and (ii) causing significant increases in inadvertent interchange resulting in an adverse reliability impact between real-time operations and day and/or hour-ahead analysis performed by reliability coordinators and transmission operators.\37\ --------------------------------------------------------------------------- \37\ Id. P 22. --------------------------------------------------------------------------- 25. In order to evaluate the effect of the Reliability Standard on unscheduled power flows and inadvertent interchange and the potential impact on the Bulk-Power System, the NOPR proposed to direct NERC to submit an informational filing to monitor unscheduled flows and inadvertent interchange in the Western and Eastern Interconnections 90 days after the end of the two-year period following implementation. Specifically, the NOPR proposed that NERC's informational filing provide ``the number of SOL/IROL violations, the date, time, location, the duration and magnitude, due to unscheduled power flows and inadvertent interchange within [the] Western and Eastern Interconnections.'' \38\ Further, the NOPR stated that the Commission expects NERC will immediately propose and implement adequate remedies should there be increases in unscheduled flow and inadvertent interchange causing reliability issues under the new Balancing Authority ACE Limit during the two-year period covered by the informational filing. --------------------------------------------------------------------------- \38\ Id. P 23. --------------------------------------------------------------------------- Comments 26. NERC states that it does not support the Commission's proposed directive to submit an informational filing with the data described in the NOPR, because it ``will not conclusively demonstrate that large ACE swings are correlated with unscheduled power flow and Inadvertent Interchange causing SOL/IROL exceedances.'' \39\ NERC asserts that the proposed directive ``is based on the speculative opinions of commenters, supported by no documented evidence that the proposed Reliability Standard contributes to unscheduled power flows and Inadvertent Interchange,'' and would not be an effective use of NERC or industry resources.\40\ --------------------------------------------------------------------------- \39\ NERC Comments at 6. \40\ Id. at 8. --------------------------------------------------------------------------- 27. NERC states that the field trial has not produced any ``positive evidence'' establishing that implementing the Balancing Authority ACE Limit causes high ACE swings negatively affecting frequency, or relates to unscheduled power flows or inadvertent interchange causing SOL/IROL exceedances. Further, NERC asserts that ``high ACE swings are not necessarily determinative of overloading transmission or SOL/IROL exceedances because SOL/IROL exceedances can still occur when ACE is zero.'' \41\ --------------------------------------------------------------------------- \41\ Id. --------------------------------------------------------------------------- 28. While disagreeing with the directive as proposed in the NOPR, NERC states that as a ``first step'' to addressing the Commission's concerns, and to ``investigate a possible correlation between [the] Balancing Authority ACE Limit and SOL/IROL exceedances as attributed to Inadvertent Interchange and unscheduled power flows,'' NERC will provide the Commission with a ``set of baseline data'' including ``tracking the number of SOL/IROL exceedances occurring in each interconnection where a Balancing Authority's ACE was within BAAL.'' \42\ NERC states that it would include this data in an informational filing, with the commitment to work with Commission staff to analyze the data. --------------------------------------------------------------------------- \42\ Id. at 8-9. --------------------------------------------------------------------------- 29. EEI, Indicated RTOs, NYISO, WAPA, APS, Duke, Tri-State, Powerex and BPA support the Commission's proposed informational filing. While supporting the proposed informational filing, EEI believes that the Reliability Standard ``will support stronger management of interconnection frequency.'' \43\ Indicated RTOs assert that ``the trend in manual Time Error Correction is a better indicator of unscheduled flows. Operating limit violations resulting from unscheduled power flows and the trend in Time Error Correction will enable the Commission to evaluate the severity of any issues, and NERC and/or its operating committees routinely collect that information.'' \44\ --------------------------------------------------------------------------- \43\ EEI Comments at 3-4. \44\ Indicated RTOs Comments at 5-6. --------------------------------------------------------------------------- 30. NYISO, Tri-State, BPA and Powerex, while supporting the Commission's proposal, urge that the Commission require NERC to provide more data in the informational filing than described in the NOPR. NYISO states that NERC should provide ACE and Balancing Authority ACE Limit values for the SOL/IROL violations associated with unscheduled power flows or inadvertent interchange. BPA asserts that NERC should examine all unscheduled power flows resulting from the implementation of the Balancing Authority ACE Limit, not just those related to SOL/IROL violations. BPA further states that NERC should be required to conduct an analysis every [[Page 22399]] six months for the initial two year implementation period, including an examination of loss of supply events and their impact on frequency recovery.\45\ --------------------------------------------------------------------------- \45\ BPA Comments at 7. --------------------------------------------------------------------------- 31. BPA states that the proposed definition of ``Reporting ACE'' should be revised to include the ATEC upper payback limit term ``Lmax'' and the bounds of that upper payback limit for IATEC . BPA notes that, while incorporating the WECC regional variance contained in currently effective Reliability Standard BAL-001-1 may have been NERC's intent, this cannot be accomplished without including the ``Lmax'' upper payback limit and the bounds of that upper payback limit in the NERC Glossary. BPA asserts that without this language in the definition, the ATEC payback does not have an upper bound, which could cause some significant unscheduled flows in the interconnection, because a balancing authority with a large primary inadvertent accumulation could pay most of it off within a three hour period. 32. While supporting the objective of Reliability Standard BAL-001- 2, Powerex expresses concern that ``the `inadvertent interchange' permitted by the modified standard will have a material, adverse impact on the western transmission markets subject to the Commission's jurisdiction . . . [and] Powerex believes that features of the proposed standard could be used to harm competition to the detriment of both transmission customers and system reliability.'' \46\ Powerex argues that the Balancing Authority ACE Limit ``creates opportunities for commercially-interested [balancing authorities] to deliberately reduce their control of imbalances, effectively leaning on the grid to balance their systems. Such activity creates unscheduled flows on adjacent systems that can inequitably and inefficiently curtail the transmission capacity available to the transmission customers that have paid to use the transmission system.'' \47\ --------------------------------------------------------------------------- \46\ Powerex Comments at 7. \47\ Id. at 8. --------------------------------------------------------------------------- 33. Powerex urges the Commission to ``take additional steps to ensure that implementation of the BAAL requirement does not thwart the provision of open access transmission service in accordance with Commission policies.'' \48\ Specifically, Powerex states that the Commission should ``direct NERC to supplement its petition with information regarding any rules or requirements that may be in place to protect against potential curtailments of transmission customers due to unscheduled flows associated with BAAL ACEs.'' \49\ Additionally, Powerex asserts that NERC's informational filing should describe instances in which unscheduled flows associated with the Balancing Authority ACE Limit required curtailment of transmission customers or other mitigation measures, and that this information should be provided every six months during the initial two year implementation period. Powerex also asks the Commission to ``provide guidance concerning the creation of deliberate [balancing authority] imbalances,'' require balancing authorities to disclose ACE and Balancing Authority ACE Limit information, and direct NERC to implement safeguards to ensure that balancing authorities reduce their ACEs before the curtailment of transmission customers.\50\ Tri-State agrees with Powerex's comments. --------------------------------------------------------------------------- \48\ Id. at 9. \49\ Id. at 22. \50\ Powerex Comments at 24-29. --------------------------------------------------------------------------- 34. EEI, Indicated RTOs and Duke suggest limiting the informational filing to the Western Interconnection. Indicated RTOs state that ``there has been a decline in the number of time error corrections in the Eastern Interconnection during the course of the field trial. These outcomes suggest that BAL-001-2 works as intended, and does not trigger issue with respect to inadvertent interchange, at least in the Eastern Interconnection.'' \51\ EEI asserts that unscheduled power flows and inadvertent interchange ``have not been an issue within the Eastern Interconnection Field Trial, which has been in place now for nearly ten years. During this trial, approximately two-thirds of the Eastern Interconnection operated under the BAAL measure without issue. Therefore, EEI does not envision problems arising.'' \52\ Similarly, Duke notes that the Field Trial Report specifically states that unscheduled power flows were not cited as problems within the Eastern Interconnection.\53\ --------------------------------------------------------------------------- \51\ Indicated RTOs Comments at 5. \52\ EEI Comments at 4 (citing Field Trial Report at 13). \53\ Duke Comments at 4 (citing Field Trial Report at 13). --------------------------------------------------------------------------- 35. NaturEner addresses the time component of the Balancing Authority ACE Limit, an issue not raised in the NOPR. NaturEner states that the 30 consecutive clock-minute limitation on the time during which a balancing authority's Reporting ACE can exceed its Balancing Authority ACE Limit should be extended to 60 consecutive clock-minutes. NaturEner asserts that the 30 minute time period provides insufficient time for a balancing authority to use market mechanisms to resolve imbalance events.\54\ Further, NaturEner states that if Reliability Standard BAL-001-2 is approved in its current form, the Commission should ``include severe loss of wind events as qualifying events under BAL-002, thereby qualifying such events as allowable contingency reserve events under which contingency reserves may be called upon.'' \55\ --------------------------------------------------------------------------- \54\ NaturEner Comments at 1. \55\ Id. at 2-3. --------------------------------------------------------------------------- Commission Determination 36. The Commission adopts the NOPR proposal regarding NERC's submission of an informational filing. We determine that the field trial NERC conducted for Reliability Standard BAL-001-2 raised sufficient concerns regarding unscheduled power flows and inadvertent interchange to warrant NERC's continued monitoring and submission of an informational filing 90 days after the end of the two-year period following implementation, as proposed in the NOPR. Further, we find that the informational filing should encompass both the Western and Eastern Interconnections, as there were concerns about possible increases of SOL/IROL exceedances in both Interconnections.\56\ EEI supports limiting the informational filing to the Western Interconnection, stating that the Balancing Authority ACE Limit has ``been extensively used [in the Eastern Interconnection] for many years without issue.'' \57\ However, the Commission believes that including both Interconnections is reasonable, because less than 20 percent of balancing authorities in the Eastern Interconnection were in the field trial.\58\ --------------------------------------------------------------------------- \56\ NYISO supports the inclusion of the Eastern Interconnection within the scope of the information filing. NYISO described the fundamental concern that ``BAL-001-2 will allow balancing authorities to have a very large deviation from an Area Control Error (``ACE'')--and potentially negatively affect reliability--yet still be compliant with the dynamic values of the [Balancing Authority ACE Limits calculated pursuant to the proposed Reliability Standard.'' NYISO Comments at 1. \57\ EEI Comments at 1-2. \58\ Twenty-seven balancing authorities participated in the Western Interconnection field trial and eleven in the Eastern Interconnection. Field Trial Report at 11, 14. --------------------------------------------------------------------------- 37. We are not persuaded by NERC's objection to the informational filing, that the field trial ``produced no conclusive results that large ACE swings are correlated with unscheduled power flow and Inadvertent Interchange causing SOL/IROL exceedances.'' \59\ While the field trial may not have been ``conclusive,'' the information in the report indicates the possibility of a [[Page 22400]] correlation between large ACE swings and unscheduled power flows that warrant further study and analysis. Thus, we agree with the commenters who observed that the field trial demonstrated clear potential for the Balancing Authority ACE Limit to cause unscheduled power flows and inadvertent interchange that could lead to SOL/IROL problems.\60\ While the Field Trial Report suggests that unscheduled flow events in the Western Interconnection may have occurred due to a number of factors, the Report does not eliminate large ACE swings as the cause.\61\ Accordingly, we conclude that the matter warrants further study and analysis, as directed. --------------------------------------------------------------------------- \59\ NERC Comments at 8. \60\ Tri-State Comments at 5, APS Comments at 3, EEI Comments at 4, Duke Energy Comments at 3-4, WAPA Comments at 3-4, Powerex Comments at 7, NYISO Comments at 1-2 and BPA Comments at 7-8. \61\ NERC Field Trial Report at 16-17, 20. --------------------------------------------------------------------------- 38. We acknowledge NERC's commitment to take a ``first step'' to address the Commission's concerns by providing baseline data, including SOL/IROL exceedances where a balancing authority's ACE was within its Balancing Authority ACE Limit. However, we agree with those commenters who urge the Commission to require NERC to provide more data than described in the NOPR. Therefore, we direct NERC to make an informational filing 90 days after the end of the two-year period following implementation that includes an analysis of data (all relevant events or a representative sample) on whether experience with the Balancing Authority ACE Limit in the first two years after approval has seen ACE swings and unscheduled power flows or inadvertent interchange that could cause SOL/IROL exceedances. However, if it is evident that during this two-year period the issues discussed above are creating SOL/IROL exceedances NERC should provide that information to the Commission, together with appropriate recommendations for mitigation, as this information becomes available. Further, NERC should also make the underlying data available to Commission staff upon request. Regarding BPA's concerns about the interplay of Reliability Standards BAL-001-2 and BAL-002-1, the Commission believes those concerns are best addressed if and when NERC files with the Commission proposed changes to Reliability Standard BAL-002-1. However, we expect NERC to retain the data pursuant to the analysis directed above so that it will be available, if needed, to examine the effect of Reliability Standard BAL-002-1 in relation to the Balancing Authority ACE Limit in the future.\62\ --------------------------------------------------------------------------- \62\ We leave it to NERC's discretion whether to include in the informational filing time error correction data, as suggested by the Indicated RTOs. (See Indicated RTOs Comments at 5-6.) --------------------------------------------------------------------------- 39. Based on the record before us, the Commission is not persuaded by Powerex's assertion that Reliability Standard BAL-001-2 allows inadvertent interchange that ``will have a material, adverse impact on the western transmission markets.'' \63\ Further, there is no support in the record for Powerex's claim that there is evidence that during the field trial market participants seized ``opportunities . . . to deliberately reduce their control of imbalances, effectively leaning on their systems . . . resulting in an increase in unscheduled flows and degradation of transmission service in the region.'' \64\ Powerex's broad assertions lack factual support in the record of this proceeding and are largely speculative. --------------------------------------------------------------------------- \63\ Powerex Comments at 7. \64\ Id. at 8. --------------------------------------------------------------------------- 40. We also note that Powerex presented an analysis of the impact of the Balancing Authority ACE Limit on unscheduled flow on the California Oregon Intertie to WECC's Unscheduled Flow Administrative Subcommittee. The WECC staff assessment of Powerex's analysis concluded that ``[t]he results of the Powerex analysis are valid only within the assumptions they have made, but based upon actual path flow data we believe the assumptions are incorrect and lead to large overestimations of the RBC (Balancing Authority ACE Limit) impact on Unscheduled Flow.'' \65\ Powerex's reliance on the increase in e-tag curtailments across Path 36 (``TOT3'' in eastern Wyoming and Colorado) noted in the WECC Performance Work Group's December 2011 Quarterly Report on the RBC Field Trial as demonstrating that its concerns are ``neither speculative or theoretical'' is similarly unpersuasive.\66\ The existence of e-tag curtailments during the field trial does not establish a causal connection with the Balancing Authority ACE Limit, because other factors, such as outages at the San Onofre Nuclear Generating Station unit in California; poor hydro conditions in Northern California; and other outages impacting energy import to California may have contributed to the curtailments. However, this uncertainty reinforces the need for the informational filing and additional study directed herein. --------------------------------------------------------------------------- \65\ NERC May 9, 2014 Supplemental Filing at 5, n.8 (citing Reliability-based Control Field Trial Report presented at January 2013 WECC Board of Directors meeting at 32) (available at: https://www.wecc.biz/Administrative/Board%20Packet%20January%2023%202013.pdf.) \66\ Powerex Comments at 17. --------------------------------------------------------------------------- 41. We determine that Powerex's concerns about the possible adverse impacts from Reliability Standard BAL-001-2 on reliability, as well as competition and transmission markets, are unpersuasive. While expressing concern about the reliability risks associated with implementing Reliability Standard BAL-001-2, Powerex acknowledges that the extent to which the reliability risks it describes ``will materialize remains to be seen.'' \67\ Instead, we agree with NERC that ``[t]he field trial report finds that the results to date demonstrate that the correlation between Requirements R1 and R2 of Reliability Standard BAL-001-2 drive corrective actions to support Interconnection frequency and reliability.'' \68\ With respect to Powerex's concerns about the possibility that ``gaps'' in Reliability Standard BAL-001-2 could be ``exploited to the detriment of transmission customers,'' we encourage Powerex to engage in the ongoing monitoring effort and bring any specific instances of deliberate misconduct to the Commission's attention if they occur.\69\ --------------------------------------------------------------------------- \67\ Id. at 20. \68\ Field Trial Report at 1. \69\ Powerex Comments at 9. --------------------------------------------------------------------------- 42. We do not adopt NaturEner's proposal that the 30 consecutive clock-minute time component should be extended to no less than 60 consecutive clock-minutes to allow the use of market mechanisms to address imbalance events. We note that in the Technical Conclusion section of the Field Trial Report the standard drafting team concluded that ``[t]he selection of 30 consecutive clock minutes is appropriate and actually improves reliability.'' \70\ This conclusion is supported in the Field Trial Report by an adequate justification for the 30 consecutive clock-minute time period: --------------------------------------------------------------------------- \70\ Field Trial Report at 19. [S]imilar to the approach taken to address an IROL where operators are provided 30 minutes to assess options for mitigation, the team chose to use the more conservative limit of 30 minute, well within the risk-based criteria of the next resource loss, while also providing appropriate time for the operator to assess the current situation and take corrective actions as needed. Actual experience operating under the proposed standards has met with the support of all participating Real-time system operators.\71\ --------------------------------------------------------------------------- \71\ Id. The Commission notes that in accordance with Reliability Standard IRO-009-1 Requirement R2 and the definition for Interconnection Reliability Operating Limit Tv in the NERC Glossary, the 30 minute period is provided for operators to assess and implement options for mitigation of an IROL. [[Page 22401]] --------------------------------------------------------------------------- In light of this justification and our directive to NERC to monitor the implementation of Reliability Standard BAL-001-2 and submit an informational filing, we believe that NaturEner's request for annual reviews of the 30 consecutive clock-minute time component is unnecessary.\72\ --------------------------------------------------------------------------- \72\ Regarding NaturEner's comment that the Commission should require that ``severe loss of wind events'' be considered Qualifying Events under BAL-002, we decline to do so in this rulemaking. NaturEner Comments at 9. NaturEner may raise its concern in NERC's current project to revise Reliability Standard BAL-002. --------------------------------------------------------------------------- 43. The Commission is persuaded by BPA's comments that a revision to the definition of Reporting ACE is warranted. In its petition, NERC states that currently-effective Reliability Standard BAL-001-1 includes a WECC regional variance which has been incorporated into the continent-wide Reliability Standard BAL-001-2 through the definition of Reporting ACE. However the definition of Reporting ACE does not include the ``Lmax'' upper payback limit and the bounds of that upper payback limit in the definition. Accordingly, the Commission directs NERC to revise the definition of Reporting ACE to include the ``Lmax'' upper payback limit and the bounds of that upper payback limit prior to the effective date of Reliability Standard BAL-001-1. B. Need for a Regional Variance NOPR 44. In the NOPR, the Commission sought comment on whether a regional variance would be necessary for those regions that experienced adverse impacts from inadvertent interchange during the field trial. The NOPR observed that the Western Interconnection applies a limit of four times a balancing authority's L10 to limit ACE deviations from balancing authority flows that negatively impact the transmission system. Comments 45. WAPA and BPA state that the Commission should direct NERC to include a regional variance to establish limits to the Balancing Authority ACE Limits for balancing authorities in the WECC before BAL- 001-2 is implemented in the Western Interconnection. BPA states that currently in the Western Interconnection a limit of 4 times L10 is used, due to concerns with unscheduled flow. BPA states that WECC should continue to use this limit until a new limit is established.\73\ Rather than a regional variance, Indicated RTOs state that a regional standard, or adjustments allowed by Reliability Standard BAL-001-2 to address inadvertent interchange, would be preferable. --------------------------------------------------------------------------- \73\ BPA Comments at 8. BPA states that NERC will need to retain the definition of L10 after currently-effective Reliability Standard BAL-001-1 is retired. Id. --------------------------------------------------------------------------- Commission Determination 46. The Commission is not persuaded that there is a need for a regional variance for Reliability Standard BAL-001-2 for use in the Western Interconnection. NERC stated in its NOPR comments that NERC will develop a regional variance, or a modification to Reliability Standard BAL-001-2, should NERC's analysis following the implementation of the Reliability Standard confirm the need for either measure.\74\ We determine that NERC has described a sound approach for addressing this issue. --------------------------------------------------------------------------- \74\ NERC Comments at 9. --------------------------------------------------------------------------- V. Information Collection Statement 47. The Office of Management and Budget (OMB) regulations require that OMB approve certain reporting and recordkeeping (collections of information) imposed by an agency.\75\ Upon approval of a collection of information, OMB will assign an OMB control number and expiration date. Respondents subject to the filing requirements of this rule will not be penalized for failing to respond to these collections of information unless the collections of information displays a valid OMB control number. --------------------------------------------------------------------------- \75\ 5 CFR 1320.11. --------------------------------------------------------------------------- 48. The Commission is submitting these reporting and recordkeeping requirements to OMB for its review and approval under section 3507(d) of the Paper work Reduction Act. The NOPR solicited comments on the Commission's need for this information, whether the information will have practical utility, the accuracy of the provided burden estimate, ways to enhance the quality, utility, and clarity of the information to be collected, and any suggested methods for minimizing the respondent's burden, including the use of automated information techniques. No comments were received. 49. This final rule approves revisions to Reliability Standard BAL- 001-2. NERC states in its petition that the Reliability Standard defines a new term: Balancing Authority ACE Limit, which is unique for each balancing authority and provides dynamic limits for a balancing authority's ACE value as a function of the Interconnection frequency.\76\ NERC states that the Reliability Standard improves reliability by adding a frequency component to the measurement of a balancing authority's ACE, and allows for the formation of ``Regulation Reserve Sharing Groups.'' NERC's Reliability Standard requires a balancing authority to balance its resources and demand in real-time so that the clock-minute average of its ACE does not exceed its Balancing Authority ACE Limit for more than 30 consecutive clock-minutes. Furthermore, NERC states that Reliability Standard BAL-001-2 and accompanying definitions include the benefits of the Automatic Time Error Correction equation in the WECC-specific regional variance in Reliability Standard BAL-001-1.\77\ The Reliability Standard and related reporting requirements are applicable to balancing authorities and regulation reserve sharing groups. --------------------------------------------------------------------------- \76\ NERC Petition at 12. \77\ Id. at 2. --------------------------------------------------------------------------- 50. Public Reporting Burden: Our estimate below regarding the number of respondents is based on the NERC Compliance Registry as of October 17, 2014. According to the NERC Compliance Registry, there are 71 balancing authorities in the Eastern Interconnection, 34 balancing authorities in the Western Interconnection and one balancing authority in the Electric Reliability Council of Texas (ERCOT). The Commission bases individual burden estimates on the time needed for balancing authorities to develop tools needed to facilitate reporting that is required in the Reliability Standard. These burden estimates are consistent with estimates for similar tasks in other Commission- approved Reliability Standards. The following estimates relate to the requirements for this final rule in Docket No. RM14-10-000. [[Page 22402]] FERC-725R, Modifications in Final Rule in RM14-10-000 Final Rule \78\ -------------------------------------------------------------------------------------------------------------------------------------------------------- Total annual Number of Annual number Total number burden hours & Cost per respondents of responses of responses Average burden & cost per response total annual cost respondent per respondent \79\ ($) (1) (2) (1)*(2) = (4)................................ (3)*(4) = (5) (5) / (1) (3) -------------------------------------------------------------------------------------------------------------------------------------------------------- BA/RRSG: \80\ Update and Maintain Energy 106 1 106 8 hours per response. 848 $522 Management Systems. $522 (8 x $65.34).................. $55,332 BA: Record Retention \81\............... 106 1 106 4.................................. 424 $118 $118............................... $12,508 --------------------------------------------------------------------------------------------------------------- Total............................... ........... .............. 212 640................................ 1,272 $640 $67,840 -------------------------------------------------------------------------------------------------------------------------------------------------------- Title: FERC-725R Mandatory Reliability Standards: Resource and Demand Balancing (BAL) Reliability Standards. --------------------------------------------------------------------------- \78\ Reliability Standard BAL-001-2 applies to balancing authorities and regulation reserve sharing groups. However, the burden associated with the balancing authority complying with Requirement R1 is not included within this table because the Commission accounted for it under Commission-approved Reliability Standards BAL-001-1. \79\ The estimated hourly cost (salary plus benefits) of $98.17 is based on Bureau of Labor Statistics (BLS) information of May 2013 (and available at: http://www.bls.gov/oes/current/naics2_22.htm) and is the average for an electrical engineer (NAICS 17-2071; $65.34/ hour) and a lawyer (NAICS 23-1011; $128.76). \80\ BA = Balancing Authority; RRSG = Regulation Reserve Sharing Group. \81\ The $29.52/hour estimate for salary plus benefits is based on the BLS data of May 2013 for a file clerk (NAICS 43-4071). --------------------------------------------------------------------------- Action: Proposed revision. OMB Control No.: 1902-0268. Respondents: Businesses or other for-profit institutions; not-for- profit institutions. Frequency of Responses: On Occasion. Necessity of the Information: This Final Rule approves Reliability Standard BAL-001-2 pertaining to requiring balancing authorities to operate such that its clock-minute average reporting ACE does not exceed its clock-minute Balancing Authority ACE Limits for more than 30 consecutive clock-minutes. Requirement R2 provides each balancing authority a dynamic ACE limit that is a function of Interconnection frequency. Reliability Standard BAL-001-2 will provide dynamic limits that are balancing authority and Interconnection-specific. In addition, these ACE limits are based on identified Interconnection frequency limits to ensure the Interconnection returns to a reliable state when an individual balancing authority's ACE or Interconnection frequency deviation contributes undue risk to the Interconnection. Internal Review: The Commission has reviewed Reliability Standard BAL-001-2 and has determined that it is necessary to implement section 215 of the FPA. The requirements of Reliability Standard BAL-001-2 should conform to the Commission's expectation for generation and demand balance throughout the Eastern and Western Interconnections as well as within the ERCOT Region. 51. 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, email: [email protected], phone: (202) 502-8663, fax: (202) 273-0873]. Comments on the requirements of this rule may also be sent to the Office of Information and Regulatory Affairs, Office of Management and Budget, 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 email to: [email protected]. Comments submitted to OMB should include FERC-725R and Docket Number RM14-10-000. VI. Environmental Analysis 52. 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.\82\ 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.\83\ The actions here fall within this categorical exclusion in the Commission's regulations. --------------------------------------------------------------------------- \82\ Regulations Implementing the National Environmental Policy Act of 1969, Order No. 486, FERC Stats. & Regs., Regulations Preambles 1986-1990 ] 30,783 (1987). \83\ 18 CFR 380.4(a)(2)(ii). --------------------------------------------------------------------------- VII. Regulatory Flexibility Act Certification 53. The Regulatory Flexibility Act of 1980 (RFA) \84\ generally requires a description and analysis of proposed rules that will have significant economic impact on a substantial number of small entities. The NOPR stated that, as shown in the information collection section, Reliability Standard Reliability Standard BAL-001-2 applies to 106 entities. Comparison of the applicable entities with the Commission's small business data indicates that approximately 23 are small business entities.\85\ Of these, the Commission estimates that approximately five percent, or one of these small entities, will be affected by the new requirements of Reliability Standard BAL-001-2. --------------------------------------------------------------------------- \84\ 5 U.S.C. 601-612. \85\ This figure constitutes 21.4 percent of the total number of affected entities. --------------------------------------------------------------------------- 54. In the NOPR, the Commission estimated that the small entities that will be affected by proposed Reliability Standard BAL-001-2 will incur one-time compliance cost up to $109,180 (i.e., the cost of updating and maintaining energy management systems), resulting in cost of approximately $1,030 per balancing authority and/or Regulation Reserve Sharing Groups. The Commission has revised the cost for small entities that will be affected by Reliability Standard BAL-001-2 and estimates that small entities will incur a one-time compliance cost up to $55,332 (i.e., the cost of updating and maintaining energy management systems), resulting in cost of approximately $522 per balancing [[Page 22403]] authority and/or Regulation Reserve Sharing Group. These costs represent an estimate of the costs a small entity could incur if the entity is identified as an applicable entity. The Commission does not consider the estimated cost per small entity to have a significant economic impact on a substantial number of small entities. The Commission did not receive any comments regarding this aspect of the NOPR. Based on the above, the Commission certifies that this Final Rule will not have a significant economic impact on a substantial number of small entities. Accordingly, no regulatory flexibility analysis is required. VIII. Document Availability 55. In addition to publishing the full text of this document in the Federal Register, the Commission provides all interested persons an opportunity to view and/or print the contents of this document via the Internet through the Commission's Home Page (http://www.ferc.gov) and in the Commission's Public Reference Room during normal business hours (8:30 a.m. to 5:00 p.m. Eastern time) at 888 First Street NE., Room 2A, Washington, DC 20426. 56. From the Commission's Home Page on the Internet, this information is available on eLibrary. The full text of this document is available on eLibrary in PDF and Microsoft Word format for viewing, printing, and/or downloading. To access this document in eLibrary, type the docket number excluding the last three digits of this document in the docket number field. 57. User assistance is available for eLibrary and the Commission's Web site during normal business hours from the Commission's Online Support at (202) 502-6652 (toll free at 1-866-208-3676) or email at [email protected], or the Public Reference Room at (202) 502- 8371, TTY (202) 502-8659. Email the Public Reference Room at [email protected]. IX. Effective Date and Congressional Notification 58. This Final Rule is effective June 22, 2015. 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.\86\ The Commission will submit the final rule to both houses of Congress and to the General Accountability Office. --------------------------------------------------------------------------- \86\ See 5 U.S.C. 804(2). By the Commission. Issued: April 16, 2015. Nathaniel J. Davis, Sr., Deputy Secretary. [FR Doc. 2015-09227 Filed 4-21-15; 8:45 am] BILLING CODE 6717-01-P
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categorical exclusion in the Issued: April 16, 2015. Commission approves Reliability
Commission’s regulations. Nathaniel J. Davis, Sr., Standard BAL–001–2 (Real Power
Deputy Secretary. Balancing Control Performance)
VI. Document Availability
[FR Doc. 2015–09225 Filed 4–21–15; 8:45 am] submitted by the North American
63. In addition to publishing the full BILLING CODE 6717–01–P
Electric Reliability Corporation (NERC),
text of this document in the Federal the Commission-certified Electric
Register, the Commission provides all Reliability Organization (ERO).
interested persons an opportunity to DEPARTMENT OF ENERGY Reliability Standard BAL–001–2 applies
view and/or print the contents of this to balancing authorities and Regulation
document via the Internet through the Federal Energy Regulatory Reserve Sharing Groups,2 and is
Commission’s Home Page (http:// Commission intended to ensure that Interconnection
www.ferc.gov) and in the Commission’s frequency is maintained within
Public Reference Room during normal 18 CFR Part 40 predefined frequency limits. The
business hours (8:30 a.m. to 5:00 p.m. [Docket No. RM14–10–000; Order No. 810] Commission also finds that Reliability
Eastern time) at 888 First Street NE., Standard BAL–001–2 addresses the
Room 2A, Washington, DC 20426. Real Power Balancing Control Commission’s directive set forth in
64. From the Commission’s Home Performance Reliability Standard Order No. 693 pertaining to BAL–002–
Page on the Internet, this information is 0.3 The Commission approves the
AGENCY: Federal Energy Regulatory retirement of currently-effective
available on eLibrary. The full text of
Commission, Energy. Reliability Standard BAL–001–1
this document is available on eLibrary
ACTION: Final rule. immediately prior to the effective date
in PDF and Microsoft Word format for
viewing, printing, and/or downloading. of Reliability Standard BAL–001–2.
SUMMARY: The Federal Energy 2. Further, the Commission approves
To access this document in eLibrary, Regulatory Commission (Commission)
type the docket number excluding the NERC’s four proposed definitions,
approves Reliability Standard BAL– associated violation risk factors and
last three digits of this document in the 001–2 (Real Power Balancing Control
docket number field. violation severity levels,
Performance) and four new definitions implementation plan, and effective date.
65. User assistance is available for submitted by the North American The Commission also directs NERC to
eLibrary and the Commission’s Web site Electric Reliability Corporation (NERC), submit an informational filing 90 days
during normal business hours from the the Commission-certified Electric after the end of the two-year period
Commission’s Online Support at 202– Reliability Organization. Reliability following implementation that includes
502–6652 (toll free at 1–866–208–3676) Standard BAL–001–2 is designed to an analysis of data on whether
or email at ferconlinesupport@ferc.gov, ensure that applicable entities maintain experience with the Balancing
or the Public Reference Room at (202) system frequency within narrow bounds Authority ACE Limit in the first two
502–8371, TTY (202) 502–8659. Email around a scheduled value, and improves years after approval has seen ACE
the Public Reference Room at reliability by adding a frequency swings and inadvertent interchange 4
public.referenceroom@ferc.gov. component to the measurement of a and unscheduled power flows 5 that
VII. Effective Date and Congressional Balancing Authority’s Area Control could cause system operating limit
Notification Error. In addition, the Commission (SOL) and interconnection reliability
directs NERC to submit an informational operating limit (IROL) exceedances, and
66. This Final Rule is effective June filing pertaining to the potential impact further directs NERC to revise one
22, 2015. of the Reliability Standard, and also definition.
67. The Commission has determined, directs NERC to revise one definition.
with the concurrence of the DATES: This rule is effective June 22, I. Background
Administrator of the Office of 2015. 3. Section 215 of the FPA requires a
Information and Regulatory Affairs of FOR FURTHER INFORMATION CONTACT: Commission-certified ERO to develop
OMB, that this rule is not a ‘‘major rule’’ Enakpodia Agbedia (Technical mandatory and enforceable Reliability
as defined in section 351 of the Small Information), Office of Electric Standards that are subject to
Business Regulatory Enforcement Reliability, Division of Reliability Commission review and approval.
Fairness Act of 1996.85 The Commission Standards, Federal Energy Regulatory Specifically, the Commission may
will submit the Final Rule to both Commission, 888 First Street NE., approve, by rule or order, a proposed
houses of Congress and to the General Washington, DC 20426, Telephone:
Accountability Office. (202) 502–6750, Enakpodia.Agbedia@ 2 NERC defines Regulation Reserve Sharing Group
68. In addition to publishing the full as ‘‘[a]group whose members consist of two or more
ferc.gov. Balancing Authorities that collectively maintain,
text of this document in the Federal Mark Bennett (Legal Information), allocate, and supply the Regulating Reserve
Register, the Commission provides all Office of the General Counsel, Federal required for all member Balancing Authorities to
interested persons an opportunity to Energy Regulatory Commission, 888 use in meeting applicable regulating standards.’’
view and/or print the contents of this NERC Petition at 7.
First Street NE., Washington, DC 20426, 3 Mandatory Reliability Standards for the Bulk-
document via the Internet through the Telephone: (202) 502–8524, Power System, Order No. 693, FERC Stats. & Regs.
Commission’s Home Page (http:// Mark.Bennett@ferc.gov. ¶ 31,242, order on reh’g, Order No. 693–A, 120
www.ferc.gov) and in the Commission’s SUPPLEMENTARY INFORMATION: FERC ¶ 61,053 (2007).
mstockstill on DSK4VPTVN1PROD with RULES
Public Reference Room during normal 4 Inadvertent interchange is ‘‘[t]he difference
business hours (8:30 a.m. to 5:00 p.m. Order No. 810 between the Balancing Authority’s Net Actual
Interchange and Net Scheduled Interchange. (IA–
Eastern time) at 888 First Street NE., Final Rule IS).’’ NERC Glossary of Terms Used in Reliability
Room 2A, Washington, DC 20426. Standards (NERC Glossary) at 42.
1. Pursuant to section 215 of the 5 Unscheduled power flows generally refers to
By direction of the Commission. Federal Power Act (FPA),1 the power flows that result from the law of physics that
causes power from a given source to flow over all
85 See 5 U.S.C. 804(2). 1 16 U.S.C. 824(o). possible paths to its destination.
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![Federal Register / Vol. 80, No. 77 / Wednesday, April 22, 2015 / Rules and Regulations 22397
Order No. 693 that NERC ‘‘define a Standard BAL–001–2 as just, Operator, ISO New England, and PJM
significant deviation and a reportable reasonable, not unduly discriminatory Interconnection (collectively ‘‘Indicated
event, taking into account all events that or preferential and in the public RTOs’’), The Steel Manufacturers
have an impact on frequency, e.g., loss interest.29 The Commission also Association (SMA), Duke Energy
of supply, loss of load and significant proposed to approve NERC’s four Corporation (Duke), Western Area
scheduling problems. . . .’’ 22 Further, proposed definitions, violation risk Power Administration (WAPA),
NERC provided an update regarding the factor and violation severity level Powerex Corp (Powerex), New York
status of the field trial undertaken for assignments, and the retirement of Independent System Operator (NYISO),
BAL–001–2. In the supplemental filing, currently-effective Reliability Standard and Bonneville Power Administration
NERC reiterated the importance of BAL–001–1.30 The NOPR stated that the (BPA).
establishing dynamic limits for a new Balancing Authority ACE Limit in
balancing authority’s ACE as a function IV. Discussion
Reliability Standard BAL–001–2
of the Interconnection frequency, stating encourages operation in support of 18. Pursuant to FPA section 215(d)(2),
that ‘‘[o]ne of the reliability benefits of Interconnection frequency and drives we approve Reliability Standard BAL–
the proposed Reliability Standard is that corrective action back within predefined 001–2 as just, reasonable, not unduly
it allows Balancing Authorities to ACE limits when needed to adjust discriminatory or preferential, and in
calculate their position within these Interconnection frequency. the public interest. The purpose of
boundaries on a real-time basis and take 16. While the Commission proposed Reliability Standard BAL–001–2 is to
action to support reliability.’’ 23 Further, to approve Reliability Standard BAL– control Interconnection frequency
NERC stated that Reliability Standard 001–2, the Commission raised concerns within defined limits. The Commission
BAL–001–2 addresses the Commission’s regarding the potential of the Reliability determines that the Reliability Standard
directive related to BAL–002–0 ‘‘in an Standard to contribute to unscheduled will help ensure that Interconnection
equally efficient and effective power flows and inadvertent frequency is maintained through both
manner.’’ 24 NERC added that revisions interchange. Based on that concern, the long and short term performance
to Reliability Standard BAL–002–1 are Commission proposed to direct NERC to measures for Interconnection frequency
currently being developed and will monitor unscheduled power flows and control and dynamic (i.e., real-time)
complement Reliability Standard BAL– inadvertent interchange in the Western limits that are specific for each
001–2. Regarding the ongoing field trial, and Eastern Interconnections and balancing authority and
discussed below, NERC stated that ‘‘the submit an informational filing following Interconnection.31 We find that, by
widespread participation of Balancing implementation of the Reliability basing Balancing Authority ACE Limits
Authorities has provided insight into Standard providing the number of SOL/ on predefined frequency trigger limits
how the changes in Reliability Standard IROL violations, the date, time, location, for each Interconnection, the real-time
BAL–001–2 will impact reliability.’’ 25 duration and magnitude due to measurements established in the
14. On July 31, 2014, NERC submitted unscheduled power flows and Reliability Standard will help ensure
an informational filing of its Preliminary inadvertent interchange. In the NOPR, that the Interconnection frequency
Field Trial Report evaluating the effects the Commission sought comments on returns to a reliable state should a
of Reliability Standard BAL–001–2.26 the following issues: (1) The need for an balancing authority’s ACE, or the
NERC stated that the Field Trial Report informational filing and whether NERC Interconnection’s frequency, exceed
results to date demonstrate that the should include additional data
correlation between Requirements R1 acceptable bounds.
pertaining to unscheduled power flows 19. We also determine that the
and R2 of Reliability Standard BAL–
and inadvertent interchange in its Reliability Standard satisfies the
001–2 drive corrective actions to
informational filing; and (2) whether a outstanding directive concerning
support Interconnection frequency and
regional variance would be necessary Reliability Standard BAL–002 set forth
reliability.27 NERC also stated that the
for a region experiencing adverse in Order No. 693, as explained in the
Balancing Authority ACE Limit, in
impacts from the Reliability Standard NOPR,32 and approve NERC’s four
conjunction with currently-effective
due to inadvertent interchange. definitions, violation risk factor and
Reliability Standard BAL–003–1
17. In response to the NOPR, the violation severity level assignments, and
(Frequency Response and Frequency
Commission received comments from: the retirement of currently-effective
Bias Setting), satisfies the directive in
Order No. 693 pertaining to Reliability NERC, Tri-State Generation and Reliability Standard BAL–001–1.
Standard BAL–002–0.28 Transmission Association, (Tri-State), Further, we approve NERC’s
Arizona Public Service Company (APS), implementation plan, in which NERC
III. Notice of Proposed Rulemaking Edison Electric Institute (EEI), proposes an effective date of the first
15. On November 20, 2014, the NaturEner USA (NaturEner), Regional day of the first calendar quarter, twelve
Commission issued a Notice of Transmission Organizations— months after the date of Commission
Proposed Rulemaking (NOPR) Midcontinent Independent System approval.33
proposing to approve Reliability 20. While approving Reliability
29 Real Power Balancing Control Performance
Reliability Standard, Notice of Proposed Standard BAL–001–2, as discussed
22 NERC May 9, 2014 Supplemental Filing at 3–
5 (citing Order No. 693, FERC Stats. & Regs. ¶
Rulemaking, 79 FR 70,483 (November 26, 2014), below, we direct NERC to submit an
149 FERC ¶ 61,139 (2014). informational filing to assess the
31,242 at P 355). 30 The four proposed definitions for inclusion in
23 Id. at 2. potential impact of the Reliability
the NERC Glossary are: Regulation Reserve Sharing
24 Id. at 3. Standard as described herein and to
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Group, Reserve Sharing Group Reporting ACE,
25 NERC Supplemental Filing at 6 (stating that 47
Reporting ACE, and Interconnection. NERC Petition revise the definition of the term
balancing authorities participated in the field trial: at 7–10. The standard drafting team explained that Reporting ACE in the NERC Glossary.
16 in the Eastern Interconnection, 29 in the Western Regulation Reserve Sharing Group will be added to
Interconnection, ERCOT and Québec). the NERC Compliance Registry prior to
26 NERC July 31, 2014 Informational Filing (Field 31 NERC Supplemental Filing at 2.
implementation of the Reliability Standard. NERC
Trial Report). Petition, Exhibit G (Summary of Development 32 NOPR, 149 FERC ¶ 61,139 at PP 18–19.
27 NERC Field Trial Report at 1.
History and Complete Record of Development), 33 NERC Petition, Ex. B (Implementation Plan for
28 Id. at 14. Consideration of Comments, April 2013 at 13. Proposed Reliability Standard BAL–001–2) at 4.
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![22398 Federal Register / Vol. 80, No. 77 / Wednesday, April 22, 2015 / Rules and Regulations
21. We discuss below the following or exceed system operating limits or power flows or inadvertent interchange
issues raised in the NOPR and interconnection reliability operating causing SOL/IROL exceedances.
addressed in the comments: (A) The limits, and (ii) causing significant Further, NERC asserts that ‘‘high ACE
proposed informational filing and NOPR increases in inadvertent interchange swings are not necessarily determinative
comments regarding the need to revise resulting in an adverse reliability impact of overloading transmission or SOL/
the definition of the term Reporting between real-time operations and day IROL exceedances because SOL/IROL
ACE; and (B) whether a regional and/or hour-ahead analysis performed exceedances can still occur when ACE
variance is necessary to address possible by reliability coordinators and is zero.’’ 41
adverse impacts from the transmission operators.37 28. While disagreeing with the
implementation of Reliability Standard 25. In order to evaluate the effect of directive as proposed in the NOPR,
BAL–001–2. the Reliability Standard on unscheduled NERC states that as a ‘‘first step’’ to
power flows and inadvertent addressing the Commission’s concerns,
A. Informational Filing and Definition and to ‘‘investigate a possible
interchange and the potential impact on
of Reporting ACE NOPR correlation between [the] Balancing
the Bulk-Power System, the NOPR
22. In the NOPR, the Commission proposed to direct NERC to submit an Authority ACE Limit and SOL/IROL
noted that feedback from some informational filing to monitor exceedances as attributed to Inadvertent
stakeholders who participated in the unscheduled flows and inadvertent Interchange and unscheduled power
field trial indicated that the Balancing interchange in the Western and Eastern flows,’’ NERC will provide the
Authority ACE Limit established in Interconnections 90 days after the end Commission with a ‘‘set of baseline
Requirement R2 of Reliability Standard of the two-year period following data’’ including ‘‘tracking the number of
BAL–001–2 could increase unscheduled implementation. Specifically, the NOPR SOL/IROL exceedances occurring in
power flows, possibly resulting in proposed that NERC’s informational each interconnection where a Balancing
approaching or exceeding SOL/IROL filing provide ‘‘the number of SOL/IROL Authority’s ACE was within BAAL.’’ 42
violations. The NOPR observed that, in violations, the date, time, location, the NERC states that it would include this
comments submitted to NERC’s duration and magnitude, due to data in an informational filing, with the
standard drafting team, one large unscheduled power flows and commitment to work with Commission
transmission operator stated that the inadvertent interchange within [the] staff to analyze the data.
Balancing Authority ACE Limit could Western and Eastern 29. EEI, Indicated RTOs, NYISO,
increase the number of system operating Interconnections.’’ 38 Further, the NOPR WAPA, APS, Duke, Tri-State, Powerex
limit violations, and could cause large stated that the Commission expects and BPA support the Commission’s
unscheduled power flows resulting in NERC will immediately propose and proposed informational filing. While
an increased ACE.34 Another implement adequate remedies should supporting the proposed informational
stakeholder commented that the there be increases in unscheduled flow filing, EEI believes that the Reliability
Balancing Authority ACE Limit could and inadvertent interchange causing Standard ‘‘will support stronger
provide opportunities for entities to reliability issues under the new management of interconnection
create unscheduled power flows within Balancing Authority ACE Limit during frequency.’’ 43 Indicated RTOs assert
the boundaries established by the the two-year period covered by the that ‘‘the trend in manual Time Error
Reliability Standard.35 informational filing. Correction is a better indicator of
23. The NOPR stated that, while unscheduled flows. Operating limit
NERC asserted that there was no Comments violations resulting from unscheduled
relationship between the Balancing 26. NERC states that it does not power flows and the trend in Time Error
Authority ACE Limit field trial and support the Commission’s proposed Correction will enable the Commission
accumulated inadvertent interchange, a directive to submit an informational to evaluate the severity of any issues,
large allowance of ACE deviations could filing with the data described in the and NERC and/or its operating
increase the amount of inadvertent NOPR, because it ‘‘will not conclusively committees routinely collect that
interchange on the bulk electric system. demonstrate that large ACE swings are information.’’ 44
The NOPR explained that Reliability correlated with unscheduled power 30. NYISO, Tri-State, BPA and
Standard BAL–001–2 could allow flow and Inadvertent Interchange Powerex, while supporting the
balancing authorities to have a very causing SOL/IROL exceedances.’’ 39 Commission’s proposal, urge that the
large deviation from an ACE of zero and NERC asserts that the proposed Commission require NERC to provide
still be compliant with the dynamic directive ‘‘is based on the speculative more data in the informational filing
values of the Balancing Authority ACE opinions of commenters, supported by than described in the NOPR. NYISO
Limits in the proposed Reliability no documented evidence that the states that NERC should provide ACE
Standard.36 proposed Reliability Standard and Balancing Authority ACE Limit
24. Based on this information, in the values for the SOL/IROL violations
contributes to unscheduled power flows
NOPR, the Commission expressed associated with unscheduled power
and Inadvertent Interchange,’’ and
concern that Reliability Standard BAL– flows or inadvertent interchange. BPA
would not be an effective use of NERC
001–2 may have the ‘‘unintended asserts that NERC should examine all
or industry resources.40
consequence’’ of (i) creating large 27. NERC states that the field trial has unscheduled power flows resulting from
unscheduled power flows that could not produced any ‘‘positive evidence’’ the implementation of the Balancing
unduly burden transmission operators
establishing that implementing the Authority ACE Limit, not just those
and reliability coordinators in
Balancing Authority ACE Limit causes related to SOL/IROL violations. BPA
mstockstill on DSK4VPTVN1PROD with RULES
addressing power flows that approach
high ACE swings negatively affecting further states that NERC should be
34 NOPR, 149 FERC ¶ 61,139 at P 20 (citing NERC
frequency, or relates to unscheduled required to conduct an analysis every
Petition, Ex. G (Summary of Development History
37 Id. P 22. 41 Id.
and Complete Record of Development),
Consideration of Comments, April 2013 at 43). 38 Id. P 23. 42 Id.at 8–9.
35 Id., Ex. G, Consideration of Comments, at 77. 39 NERC Comments at 6. 43 EEI Comments at 3–4.
36 NOPR, 149 FERC ¶ 61,139 at P 21. 40 Id. at 8. 44 Indicated RTOs Comments at 5–6.
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six months for the initial two year transmission customers due to authority to use market mechanisms to
implementation period, including an unscheduled flows associated with resolve imbalance events.54 Further,
examination of loss of supply events BAAL ACEs.’’ 49 Additionally, Powerex NaturEner states that if Reliability
and their impact on frequency asserts that NERC’s informational filing Standard BAL–001–2 is approved in its
recovery.45 should describe instances in which current form, the Commission should
31. BPA states that the proposed unscheduled flows associated with the ‘‘include severe loss of wind events as
definition of ‘‘Reporting ACE’’ should Balancing Authority ACE Limit required qualifying events under BAL–002,
be revised to include the ATEC upper curtailment of transmission customers thereby qualifying such events as
payback limit term ‘‘Lmax’’ and the or other mitigation measures, and that allowable contingency reserve events
bounds of that upper payback limit for this information should be provided under which contingency reserves may
IATEC. BPA notes that, while every six months during the initial two be called upon.’’ 55
incorporating the WECC regional year implementation period. Powerex
variance contained in currently effective Commission Determination
also asks the Commission to ‘‘provide
Reliability Standard BAL–001–1 may guidance concerning the creation of 36. The Commission adopts the NOPR
have been NERC’s intent, this cannot be deliberate [balancing authority] proposal regarding NERC’s submission
accomplished without including the imbalances,’’ require balancing of an informational filing. We determine
‘‘Lmax’’ upper payback limit and the authorities to disclose ACE and that the field trial NERC conducted for
bounds of that upper payback limit in Balancing Authority ACE Limit Reliability Standard BAL–001–2 raised
the NERC Glossary. BPA asserts that information, and direct NERC to sufficient concerns regarding
without this language in the definition, implement safeguards to ensure that unscheduled power flows and
the ATEC payback does not have an balancing authorities reduce their ACEs inadvertent interchange to warrant
upper bound, which could cause some before the curtailment of transmission NERC’s continued monitoring and
significant unscheduled flows in the customers.50 Tri-State agrees with submission of an informational filing 90
interconnection, because a balancing Powerex’s comments. days after the end of the two-year period
authority with a large primary 34. EEI, Indicated RTOs and Duke following implementation, as proposed
inadvertent accumulation could pay suggest limiting the informational filing in the NOPR. Further, we find that the
most of it off within a three hour period. to the Western Interconnection. informational filing should encompass
32. While supporting the objective of Indicated RTOs state that ‘‘there has both the Western and Eastern
Reliability Standard BAL–001–2, been a decline in the number of time Interconnections, as there were
Powerex expresses concern that ‘‘the error corrections in the Eastern concerns about possible increases of
‘inadvertent interchange’ permitted by Interconnection during the course of the SOL/IROL exceedances in both
the modified standard will have a field trial. These outcomes suggest that Interconnections.56 EEI supports
material, adverse impact on the western BAL–001–2 works as intended, and limiting the informational filing to the
transmission markets subject to the does not trigger issue with respect to Western Interconnection, stating that
Commission’s jurisdiction . . . [and] inadvertent interchange, at least in the the Balancing Authority ACE Limit has
Powerex believes that features of the Eastern Interconnection.’’ 51 EEI asserts ‘‘been extensively used [in the Eastern
proposed standard could be used to that unscheduled power flows and Interconnection] for many years without
harm competition to the detriment of inadvertent interchange ‘‘have not been issue.’’ 57 However, the Commission
both transmission customers and system an issue within the Eastern believes that including both
reliability.’’ 46 Powerex argues that the Interconnection Field Trial, which has Interconnections is reasonable, because
Balancing Authority ACE Limit ‘‘creates been in place now for nearly ten years. less than 20 percent of balancing
opportunities for commercially- During this trial, approximately two- authorities in the Eastern
interested [balancing authorities] to thirds of the Eastern Interconnection Interconnection were in the field trial.58
deliberately reduce their control of operated under the BAAL measure 37. We are not persuaded by NERC’s
imbalances, effectively leaning on the without issue. Therefore, EEI does not objection to the informational filing,
grid to balance their systems. Such envision problems arising.’’ 52 Similarly, that the field trial ‘‘produced no
activity creates unscheduled flows on Duke notes that the Field Trial Report conclusive results that large ACE swings
adjacent systems that can inequitably specifically states that unscheduled are correlated with unscheduled power
and inefficiently curtail the power flows were not cited as problems flow and Inadvertent Interchange
transmission capacity available to the within the Eastern Interconnection.53 causing SOL/IROL exceedances.’’ 59
transmission customers that have paid 35. NaturEner addresses the time While the field trial may not have been
to use the transmission system.’’ 47 component of the Balancing Authority ‘‘conclusive,’’ the information in the
33. Powerex urges the Commission to ACE Limit, an issue not raised in the report indicates the possibility of a
‘‘take additional steps to ensure that NOPR. NaturEner states that the 30
implementation of the BAAL consecutive clock-minute limitation on 54 NaturEner Comments at 1.
55 Id. at 2–3.
requirement does not thwart the the time during which a balancing
56 NYISO supports the inclusion of the Eastern
provision of open access transmission authority’s Reporting ACE can exceed
Interconnection within the scope of the information
service in accordance with Commission its Balancing Authority ACE Limit filing. NYISO described the fundamental concern
policies.’’ 48 Specifically, Powerex states should be extended to 60 consecutive that ‘‘BAL–001–2 will allow balancing authorities
that the Commission should ‘‘direct clock-minutes. NaturEner asserts that to have a very large deviation from an Area Control
the 30 minute time period provides Error (‘‘ACE’’)—and potentially negatively affect
NERC to supplement its petition with reliability—yet still be compliant with the dynamic
information regarding any rules or insufficient time for a balancing values of the [Balancing Authority ACE Limits
mstockstill on DSK4VPTVN1PROD with RULES
requirements that may be in place to calculated pursuant to the proposed Reliability
49 Id. at 22. Standard.’’ NYISO Comments at 1.
protect against potential curtailments of 50 Powerex Comments at 24–29. 57 EEI Comments at 1–2.
51 IndicatedRTOs Comments at 5. 58 Twenty-seven balancing authorities
45 BPA Comments at 7. 52 EEI Comments at 4 (citing Field Trial Report at participated in the Western Interconnection field
46 Powerex Comments at 7.
13). trial and eleven in the Eastern Interconnection.
47 Id. at 8. 53 Duke Comments at 4 (citing Field Trial Report Field Trial Report at 11, 14.
48 Id. at 9. at 13). 59 NERC Comments at 8.
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![22400 Federal Register / Vol. 80, No. 77 / Wednesday, April 22, 2015 / Rules and Regulations
correlation between large ACE swings 1 in relation to the Balancing Authority filing and additional study directed
and unscheduled power flows that ACE Limit in the future.62 herein.
warrant further study and analysis. 39. Based on the record before us, the 41. We determine that Powerex’s
Thus, we agree with the commenters Commission is not persuaded by concerns about the possible adverse
who observed that the field trial Powerex’s assertion that Reliability impacts from Reliability Standard BAL–
demonstrated clear potential for the Standard BAL–001–2 allows inadvertent 001–2 on reliability, as well as
Balancing Authority ACE Limit to cause interchange that ‘‘will have a material, competition and transmission markets,
unscheduled power flows and adverse impact on the western are unpersuasive. While expressing
inadvertent interchange that could lead transmission markets.’’ 63 Further, there concern about the reliability risks
to SOL/IROL problems.60 While the is no support in the record for associated with implementing
Field Trial Report suggests that Powerex’s claim that there is evidence Reliability Standard BAL–001–2,
unscheduled flow events in the Western that during the field trial market Powerex acknowledges that the extent
Interconnection may have occurred due participants seized ‘‘opportunities . . . to which the reliability risks it describes
to a number of factors, the Report does to deliberately reduce their control of ‘‘will materialize remains to be seen.’’ 67
not eliminate large ACE swings as the imbalances, effectively leaning on their Instead, we agree with NERC that ‘‘[t]he
cause.61 Accordingly, we conclude that systems . . . resulting in an increase in field trial report finds that the results to
the matter warrants further study and unscheduled flows and degradation of date demonstrate that the correlation
analysis, as directed. transmission service in the region.’’ 64 between Requirements R1 and R2 of
38. We acknowledge NERC’s Powerex’s broad assertions lack factual Reliability Standard BAL–001–2 drive
commitment to take a ‘‘first step’’ to support in the record of this proceeding corrective actions to support
address the Commission’s concerns by and are largely speculative. Interconnection frequency and
providing baseline data, including SOL/ 40. We also note that Powerex
reliability.’’ 68 With respect to Powerex’s
IROL exceedances where a balancing presented an analysis of the impact of
concerns about the possibility that
authority’s ACE was within its the Balancing Authority ACE Limit on
‘‘gaps’’ in Reliability Standard BAL–
Balancing Authority ACE Limit. unscheduled flow on the California
001–2 could be ‘‘exploited to the
However, we agree with those Oregon Intertie to WECC’s Unscheduled
detriment of transmission customers,’’
commenters who urge the Commission Flow Administrative Subcommittee.
The WECC staff assessment of we encourage Powerex to engage in the
to require NERC to provide more data ongoing monitoring effort and bring any
than described in the NOPR. Therefore, Powerex’s analysis concluded that
‘‘[t]he results of the Powerex analysis specific instances of deliberate
we direct NERC to make an misconduct to the Commission’s
informational filing 90 days after the are valid only within the assumptions
they have made, but based upon actual attention if they occur.69
end of the two-year period following 42. We do not adopt NaturEner’s
path flow data we believe the
implementation that includes an proposal that the 30 consecutive clock-
assumptions are incorrect and lead to
analysis of data (all relevant events or a minute time component should be
large overestimations of the RBC
representative sample) on whether extended to no less than 60 consecutive
(Balancing Authority ACE Limit) impact
experience with the Balancing clock-minutes to allow the use of market
on Unscheduled Flow.’’ 65 Powerex’s
Authority ACE Limit in the first two mechanisms to address imbalance
reliance on the increase in e-tag
years after approval has seen ACE events. We note that in the Technical
curtailments across Path 36 (‘‘TOT3’’ in
swings and unscheduled power flows or Conclusion section of the Field Trial
eastern Wyoming and Colorado) noted
inadvertent interchange that could Report the standard drafting team
in the WECC Performance Work Group’s
cause SOL/IROL exceedances. However, concluded that ‘‘[t]he selection of 30
December 2011 Quarterly Report on the
if it is evident that during this two-year RBC Field Trial as demonstrating that consecutive clock minutes is
period the issues discussed above are its concerns are ‘‘neither speculative or appropriate and actually improves
creating SOL/IROL exceedances NERC theoretical’’ is similarly unpersuasive.66 reliability.’’ 70 This conclusion is
should provide that information to the The existence of e-tag curtailments supported in the Field Trial Report by
Commission, together with appropriate during the field trial does not establish an adequate justification for the 30
recommendations for mitigation, as this a causal connection with the Balancing consecutive clock-minute time period:
information becomes available. Further, Authority ACE Limit, because other
NERC should also make the underlying [S]imilar to the approach taken to address
factors, such as outages at the San an IROL where operators are provided 30
data available to Commission staff upon Onofre Nuclear Generating Station unit minutes to assess options for mitigation, the
request. Regarding BPA’s concerns in California; poor hydro conditions in team chose to use the more conservative limit
about the interplay of Reliability Northern California; and other outages of 30 minute, well within the risk-based
Standards BAL–001–2 and BAL–002–1, impacting energy import to California criteria of the next resource loss, while also
the Commission believes those concerns may have contributed to the providing appropriate time for the operator to
are best addressed if and when NERC assess the current situation and take
curtailments. However, this uncertainty
files with the Commission proposed corrective actions as needed. Actual
reinforces the need for the informational experience operating under the proposed
changes to Reliability Standard BAL–
002–1. However, we expect NERC to standards has met with the support of all
62 We leave it to NERC’s discretion whether to
participating Real-time system operators.71
retain the data pursuant to the analysis include in the informational filing time error
directed above so that it will be correction data, as suggested by the Indicated RTOs.
(See Indicated RTOs Comments at 5–6.) 67 Id. at 20.
available, if needed, to examine the 68 Field
63 Powerex Comments at 7. Trial Report at 1.
mstockstill on DSK4VPTVN1PROD with RULES
effect of Reliability Standard BAL–002– 64 Id. at 8. 69 Powerex Comments at 9.
65 NERC May 9, 2014 Supplemental Filing at 5, 70 Field Trial Report at 19.
60 Tri-State Comments at 5, APS Comments at 3, n.8 (citing Reliability-based Control Field Trial 71 Id. The Commission notes that in accordance
EEI Comments at 4, Duke Energy Comments at 3– Report presented at January 2013 WECC Board of with Reliability Standard IRO–009–1 Requirement
4, WAPA Comments at 3–4, Powerex Comments at Directors meeting at 32) (available at: https:// R2 and the definition for Interconnection Reliability
7, NYISO Comments at 1–2 and BPA Comments at www.wecc.biz/Administrative/ Operating Limit Tv in the NERC Glossary, the 30
7–8. Board%20Packet%20January%2023%202013.pdf.) minute period is provided for operators to assess
61 NERC Field Trial Report at 16–17, 20. 66 Powerex Comments at 17. and implement options for mitigation of an IROL.
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![22402 Federal Register / Vol. 80, No. 77 / Wednesday, April 22, 2015 / Rules and Regulations
FERC–725R, MODIFICATIONS IN FINAL RULE IN RM14–10–000 FINAL RULE 78
Annual Total annual
Average burden & Cost per
Number of number of Total number burden hours &
cost per respondent
respondents responses per of responses total annual
response ($)
respondent cost 79
(1) (2) (1)*(2) = (3) (4) (3)*(4) = (5) (5) ÷ (1)
BA/RRSG: 80 Update and Maintain En- 106 1 106 8 hours per re- 848 $522
ergy Management Systems. sponse. $55,332
$522 (8 × $65.34).
BA: Record Retention 81 ....................... 106 1 106 4 ............................ 424 $118
$118 ...................... $12,508
Total .............................................. .................... ........................ 212 640 ........................ 1,272 $640
$67,840
Title: FERC–725R Mandatory Internal Review: The Commission has or procedural or that do not
Reliability Standards: Resource and reviewed Reliability Standard BAL– substantially change the effect of the
Demand Balancing (BAL) Reliability 001–2 and has determined that it is regulations being amended.83 The
Standards. necessary to implement section 215 of actions here fall within this categorical
Action: Proposed revision. the FPA. The requirements of Reliability exclusion in the Commission’s
OMB Control No.: 1902–0268. Standard BAL–001–2 should conform to regulations.
Respondents: Businesses or other for- the Commission’s expectation for
VII. Regulatory Flexibility Act
profit institutions; not-for-profit generation and demand balance
Certification
institutions. throughout the Eastern and Western
Frequency of Responses: On Interconnections as well as within the 53. The Regulatory Flexibility Act of
Occasion. ERCOT Region. 1980 (RFA) 84 generally requires a
Necessity of the Information: This 51. Interested persons may obtain description and analysis of proposed
Final Rule approves Reliability information on the reporting rules that will have significant
Standard BAL–001–2 pertaining to requirements by contacting the economic impact on a substantial
following: Federal Energy Regulatory number of small entities. The NOPR
requiring balancing authorities to
Commission, 888 First Street NE., stated that, as shown in the information
operate such that its clock-minute
Washington, DC 20426 [Attention: Ellen collection section, Reliability Standard
average reporting ACE does not exceed
Brown, Office of the Executive Director, Reliability Standard BAL–001–2 applies
its clock-minute Balancing Authority
email: DataClearance@ferc.gov, phone: to 106 entities. Comparison of the
ACE Limits for more than 30
(202) 502–8663, fax: (202) 273–0873]. applicable entities with the
consecutive clock-minutes. Requirement
Comments on the requirements of this Commission’s small business data
R2 provides each balancing authority a
rule may also be sent to the Office of indicates that approximately 23 are
dynamic ACE limit that is a function of
Information and Regulatory Affairs, small business entities.85 Of these, the
Interconnection frequency. Reliability
Office of Management and Budget, Commission estimates that
Standard BAL–001–2 will provide approximately five percent, or one of
dynamic limits that are balancing Washington, DC 20503 [Attention: Desk
Officer for the Federal Energy these small entities, will be affected by
authority and Interconnection-specific. the new requirements of Reliability
In addition, these ACE limits are based Regulatory Commission, phone: (202)
395–4638, fax: (202) 395–7285]. For Standard BAL–001–2.
on identified Interconnection frequency 54. In the NOPR, the Commission
limits to ensure the Interconnection security reasons, comments to OMB
should be submitted by email to: oira_ estimated that the small entities that
returns to a reliable state when an will be affected by proposed Reliability
individual balancing authority’s ACE or submission@omb.eop.gov. Comments
submitted to OMB should include Standard BAL–001–2 will incur one-
Interconnection frequency deviation time compliance cost up to $109,180
contributes undue risk to the FERC–725R and Docket Number RM14–
10–000. (i.e., the cost of updating and
Interconnection. maintaining energy management
VI. Environmental Analysis systems), resulting in cost of
78 ReliabilityStandard BAL–001–2 applies to
52. The Commission is required to approximately $1,030 per balancing
balancing authorities and regulation reserve sharing
groups. However, the burden associated with the prepare an Environmental Assessment authority and/or Regulation Reserve
balancing authority complying with Requirement or an Environmental Impact Statement Sharing Groups. The Commission has
R1 is not included within this table because the for any action that may have a revised the cost for small entities that
Commission accounted for it under Commission- will be affected by Reliability Standard
approved Reliability Standards BAL–001–1.
significant adverse effect on the human
79 The estimated hourly cost (salary plus benefits) environment.82 The Commission has BAL–001–2 and estimates that small
of $98.17 is based on Bureau of Labor Statistics categorically excluded certain actions entities will incur a one-time
(BLS) information of May 2013 (and available at: from this requirement as not having a compliance cost up to $55,332 (i.e., the
cost of updating and maintaining energy
mstockstill on DSK4VPTVN1PROD with RULES
http://www.bls.gov/oes/current/naics2_22.htm) and significant effect on the human
is the average for an electrical engineer (NAICS 17– management systems), resulting in cost
2071; $65.34/hour) and a lawyer (NAICS 23–1011; environment. Included in the exclusion
$128.76). are rules that are clarifying, corrective, of approximately $522 per balancing
80 BA = Balancing Authority; RRSG = Regulation
83 18
CFR 380.4(a)(2)(ii).
Reserve Sharing Group. 82 Regulations Implementing the National
81 The $29.52/hour estimate for salary plus 84 5
U.S.C. 601–612.
Environmental Policy Act of 1969, Order No. 486,
benefits is based on the BLS data of May 2013 for FERC Stats. & Regs., Regulations Preambles 1986– 85 This figure constitutes 21.4 percent of the total
a file clerk (NAICS 43–4071). 1990 ¶ 30,783 (1987). number of affected entities.
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![Federal Register / Vol. 80, No. 77 / Wednesday, April 22, 2015 / Rules and Regulations 22403
authority and/or Regulation Reserve of Congress and to the General paragraph is corrected to read: ‘‘We
Sharing Group. These costs represent an Accountability Office. certify that this final rule will not have
estimate of the costs a small entity could By the Commission. a significant economic impact on a
incur if the entity is identified as an Issued: April 16, 2015. substantial number of small entities.’’
applicable entity. The Commission does Nathaniel J. Davis, Sr., Dated: April 16, 2015.
not consider the estimated cost per Deputy Secretary. Leslie Kux,
small entity to have a significant [FR Doc. 2015–09227 Filed 4–21–15; 8:45 am] Associate Commissioner for Policy.
economic impact on a substantial
BILLING CODE 6717–01–P [FR Doc. 2015–09301 Filed 4–21–15; 8:45 am]
number of small entities. The
Commission did not receive any BILLING CODE 4164–01–P
comments regarding this aspect of the
NOPR. Based on the above, the DEPARTMENT OF HEALTH AND
Commission certifies that this Final HUMAN SERVICES
DEPARTMENT OF EDUCATION
Rule will not have a significant Food and Drug Administration
economic impact on a substantial 34 CFR Part 263
number of small entities. Accordingly, 21 CFR Parts 1 and 16 RIN 1810–AB19
no regulatory flexibility analysis is
required. [Docket No. FDA–2013–N–0365]
[Docket ID ED–2014–OESE–0050]
VIII. Document Availability Administrative Detention of Drugs
Indian Education Discretionary Grants
Intended for Human or Animal Use;
55. In addition to publishing the full Program; Professional Development
Correction
text of this document in the Federal Program and Demonstration Grants for
Register, the Commission provides all AGENCY: Food and Drug Administration, Indian Children Program
interested persons an opportunity to HHS.
AGENCY: Office of Elementary and
view and/or print the contents of this ACTION: Final rule; correction.
Secondary Education, Department of
document via the Internet through the Education.
Commission’s Home Page (http:// SUMMARY: The Food and Drug
www.ferc.gov) and in the Commission’s Administration (FDA) is correcting a ACTION: Final regulations.
Public Reference Room during normal final rule entitled ‘‘Administrative
Detention of Drugs Intended for Human SUMMARY: The Secretary amends the
business hours (8:30 a.m. to 5:00 p.m. regulations that govern the Professional
Eastern time) at 888 First Street NE., or Animal Use’’ that appeared in the
Federal Register of May 29, 2014 (79 FR Development program and the
Room 2A, Washington, DC 20426. Demonstration Grants for Indian
30716). The rule sets forth the
56. From the Commission’s Home procedures for detention of drugs Children program (Demonstration
Page on the Internet, this information is believed to be adulterated or Grants program), authorized under title
available on eLibrary. The full text of misbranded and amends the scope of VII of the Elementary and Secondary
this document is available on eLibrary FDA’s part 16 regulatory hearing Act of 1965, as amended (ESEA). The
in PDF and Microsoft Word format for procedures to include the regulations govern the grant application
viewing, printing, and/or downloading. administrative detention of drugs. The process for new awards for each
To access this document in eLibrary, rule published with incorrect statements program for the next fiscal year in
type the docket number excluding the regarding the impact of the final rule on which competitions are conducted for
last three digits of this document in the small entities. This document corrects that program and subsequent years. For
docket number field. those errors. the Professional Development program,
57. User assistance is available for DATES: Effective April 22, 2015 and the regulations enhance the project
eLibrary and the Commission’s Web site applicable beginning June 30, 2014. design and quality of services to meet
during normal business hours from the FOR FURTHER INFORMATION CONTACT:
the objectives of the program; establish
Commission’s Online Support at (202) Emily Leongini, Office of Regulatory post-award requirements; and govern
502–6652 (toll free at 1–866–208–3676) Affairs, Food and Drug Administration, the payback process for grants in
or email at ferconlinesupport@ferc.gov, 10903 New Hampshire Ave., Bldg. 32, existence on the date these regulations
or the Public Reference Room at (202) Rm. 4339, Silver Spring, MD 20993– become effective. For the Demonstration
502–8371, TTY (202) 502–8659. Email 0002, 301–796–5300, Grants program, the regulations add
the Public Reference Room at FDASIAImplementationORA@ new priorities, including a priority for
public.referenceroom@ferc.gov. fda.hhs.gov. native youth community projects
(NYCPs), and new application
IX. Effective Date and Congressional SUPPLEMENTARY INFORMATION: In the requirements.
Notification Federal Register of May 29, 2014, in FR
Doc. 2014–12458, the following DATES: These regulations are effective
58. This Final Rule is effective June corrections are made: May 22, 2015.
22, 2015. The Commission has 1. On page 30718, in the third FOR FURTHER INFORMATION CONTACT: John
determined, with the concurrence of the column, under ‘‘Analysis of Impacts Cheek, U.S. Department of Education,
Administrator of the Office of (Summary of the Regulatory Impact 400 Maryland Avenue SW., Room
Information and Regulatory Affairs of Analysis),’’ the last sentence of the 3W207, Washington, DC 20202–6135.
mstockstill on DSK4VPTVN1PROD with RULES
OMB, that this rule is not a ‘‘major rule’’ second paragraph is corrected to read: Telephone: (202) 401–0274 or by email:
as defined in section 351 of the Small ‘‘FDA certifies that this final rule will john.cheek@ed.gov.
Business Regulatory Enforcement not have a significant economic impact If you use a telecommunications
Fairness Act of 1996.86 The Commission on a substantial number of small device for the deaf (TDD) or a text
will submit the final rule to both houses entities.’’ telephone (TTY), call the Federal Relay
2. On page 30719, in the first column, Service (FRS), toll free, at 1–800–877–
86 See 5 U.S.C. 804(2). the third sentence of the last full 8339.
VerDate Sep<11>2014 18:54 Apr 21, 2015 Jkt 235001 PO 00000 Frm 00047 Fmt 4700 Sfmt 4700 E:\FR\FM\22APR1.SGM 22APR1](https://thefederalregister.org/doc/80_FR_22472/page/9.svg)
Document Created: 2015-12-16 08:28:08
Document Modified: 2015-12-16 08:28:08
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Rules and Regulations | |
| Action | Final rule. | |
| Dates | This rule is effective June 22, 2015. | |
| Contact | Enakpodia Agbedia (Technical Information), Office of Electric Reliability, Division of Reliability Standards, Federal Energy Regulatory Commission, 888 First Street NE., Washington, DC 20426, Telephone: (202) 502-6750, [email protected] | |
| FR Citation | 80 FR 22395 |
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