82 FR 44723 - Balancing Authority Control, Inadvertent Interchange, and Facility Interconnection Reliability Standards
DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission Federal Register Volume 82, Issue 185 (September 26, 2017)
Federal Energy Regulatory Commission
Federal Register Volume 82, Issue 185 (September 26, 2017)
| Page Range | 44723-44731 | |
| FR Document | 2017-20554 |
[Federal Register Volume 82, Number 185 (Tuesday, September 26, 2017)] [Rules and Regulations] [Pages 44723-44731] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-20554] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF ENERGY Federal Energy Regulatory Commission 18 CFR Part 40 [Docket No. RM16-13-000; Order No. 836] Balancing Authority Control, Inadvertent Interchange, and Facility Interconnection Reliability Standards AGENCY: Federal Energy Regulatory Commission. ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: The Federal Energy Regulatory Commission (Commission) approves Reliability Standards BAL-005-1 (Balancing Authority Control) and FAC- 001-3 (Facility Interconnection Requirements), submitted by the North American Electric Reliability Corporation, as well as the retirement of Reliability Standards BAL-005-0.2b (Automatic Generation Control), FAC- 001-2 (Facility Interconnection Requirements), and BAL-006-2 (Inadvertent Interchange). DATES: This rule will become effective November 27, 2017. FOR FURTHER INFORMATION CONTACT: Syed Ahmad (Technical Information), Office of Electric Reliability, Division of Reliability Standards, Federal Energy Regulatory Commission, 888 First Street NE., Washington, DC 20426, Telephone: (202) 502-8718, [email protected] Julie Greenisen (Legal Information), Office of the General Counsel, Federal Energy Regulatory Commission, 888 First Street NE., Washington, DC 20426, Telephone: (202) 502-6362, [email protected]. SUPPLEMENTARY INFORMATION: ORDER NO. 836 FINAL RULE 1. Pursuant to section 215 of the Federal Power Act (FPA),\1\ the Commission approves Reliability Standards BAL-005-1 (Balancing Authority Control) and FAC-001-3 (Facility Interconnection Requirements), submitted by the North American Electric Reliability Corporation (NERC), as well as the retirement of Reliability Standards BAL-005-0.2b (Automatic Generation Control), FAC-001-2 (Facility Interconnection Requirements), and BAL-006-2 (Inadvertent Interchange). The Commission also approves the associated implementation plans, violation risk factors, and violation severity levels for Reliability Standards BAL-005-1 and FAC-001-3. Finally, the Commission approves three revised definitions for the glossary of terms used in NERC's Reliability Standards (NERC Glossary). --------------------------------------------------------------------------- \1\ 16 U.S.C. 824(o). --------------------------------------------------------------------------- 2. The Commission determines that Reliability Standards BAL-005-1 and FAC-001-3 will enhance the reliability of the Bulk-Power System, as compared to currently-effective Reliability Standards BAL-005-0.2b and FAC-001-2, by clarifying and consolidating existing requirements related to frequency control. In addition, the Commission determines that the revised Reliability Standards support more accurate and comprehensive calculation of Reporting Area Control Error (Reporting ACE), by requiring timely reporting of an inability to calculate Reporting ACE and by requiring balancing authorities to maintain minimum levels of annual availability of 99.5 percent for each balancing authority's system for calculating Reporting ACE. Based on the information received in the comments on the Notice of Proposed Rulemaking in this proceeding,\2\ as well as in response to a subsequent data request issued to NERC,\3\ the Commission has determined that it will not, at this time, direct NERC to restore existing requirements in Requirement R15 of Reliability Standard BAL- 005-0.2b related to maintaining and testing backup power supplies at primary control centers and other critical locations. We also approve NERC's request to retire Reliability Standard BAL-006-2, BAL-005-0.2b and FAC-001-2 upon the effective date of Reliability Standard BAL-005- 1. --------------------------------------------------------------------------- \2\ Balancing Authority Control, Inadvertent Interchange, and Facility Interconnection Reliability Standards, Notice of Proposed Rulemaking, 81 FR 66,555 (Sept. 28, 2016), 156 FERC ] 61,210 (2016) (NOPR). \3\ See Response of the North American Electric Corporation to Data Request, Docket No. RM16-13-000 (April 7, 2017). --------------------------------------------------------------------------- I. Background A. Mandatory Reliability Standards and Order No. 693 3. Section 215 of the FPA requires a Commission-certified Electric Reliability Organization (ERO) to develop mandatory and enforceable Reliability Standards that are subject to Commission review and approval. Specifically, the Commission may approve, by rule or order, a proposed Reliability Standard or modification to a Reliability Standard if it determines that the Reliability Standard is just, reasonable, not unduly discriminatory or preferential and in the public interest.\4\ Once approved, the Reliability Standards may be enforced by NERC, subject to Commission oversight, or by the Commission independently.\5\ --------------------------------------------------------------------------- \4\ 16 U.S.C. 824o(d)(2). \5\ Id. 824o(e). --------------------------------------------------------------------------- 4. Pursuant to section 215 of the FPA, the Commission established a process to select and certify an ERO,\6\ and subsequently certified NERC as the ERO.\7\ On March 16, 2007, the Commission issued Order No. 693, approving 83 of the initial 107 Reliability Standards filed by NERC, including Reliability Standards BAL-005-0 (Automatic Generation Control), FAC-001-0 (Facility Interconnection Requirements), and BAL- 006-1 (Inadvertent Interchange).\8\ In addition to approving Reliability Standards BAL-005-0 and BAL-006-1, the Commission directed NERC to develop modifications to those Reliability Standards through [[Page 44724]] the NERC standards development process. --------------------------------------------------------------------------- \6\ 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). \7\ 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). \8\ Mandatory Reliability Standards for the Bulk-Power System, Order No. 693, FERC Stats. & Regs. ] 31,242 at PP 420, 439, and 680, order on reh'g, Order No. 693-A, 120 FERC ] 61,053 (2007). --------------------------------------------------------------------------- 5. With respect to Reliability Standard BAL-005-0, the Commission directed NERC to develop a modification that: (1) develops a process to calculate the minimum regulating reserve a balancing authority must have at any given time taking into account expected load and generation variation and transactions being ramped into or out of the balancing authority; (2) changes the title of the Reliability Standard to be neutral as to the source of regulating reserves and to allow the inclusion of technically qualified DSM and direct control load management; (3) clarifies Requirement R5 of this Reliability Standard to specify the required type of transmission or backup plans when receiving regulation from outside the balancing authority when using non-firm service; and (4) includes Levels of Non- Compliance and a Measure that provides for a verification process over the minimum required automatic generation control or regulating reserves a balancing authority must maintain.\9\ --------------------------------------------------------------------------- \9\ Id. P 420. --------------------------------------------------------------------------- Subsequently, the Commission approved one interpretation of Reliability Standard BAL-005-0 and two errata filings.\10\ The currently-effective version of the Reliability Standard is BAL-005- 0.2b. --------------------------------------------------------------------------- \10\ See Modification of Interchange and Transmission Loading Relief Reliability Standards; and Electric Reliability Organization Interpretation of Specific Requirements of Four Reliability Standards, Order No. 713, 124 FERC ] 61,071 (2008); North American Electric Reliability Corp., Docket No. RD09-2-000 (May 13, 2009) (delegated letter order); North American Electric Reliability Corp., Docket No. RD12-4-000 (Sept. 13, 2012) (delegated letter order). --------------------------------------------------------------------------- 6. With respect to Reliability Standard BAL-006-1, the Commission directed NERC to develop a modification ``that adds Measures concerning the accumulation of large inadvertent imbalances and Levels of Non- Compliance.'' \11\ The Commission explained the need for such a modification as follows: --------------------------------------------------------------------------- \11\ Order No. 693, FERC Stats. & Regs. ] 31,242 at P 428. --------------------------------------------------------------------------- While we agree that inadvertent imbalances do not normally affect the real-time operations of the Bulk-Power System and pose no immediate threat to reliability, we are concerned that large imbalances represent dependence by some balancing authorities on their neighbors and are an indication of less than desirable balancing of generation with load. The Commission also notes that the stated purpose of this Reliability Standard is to define a process for monitoring balancing authorities to ensure that, over the long term, balancing authorities do not excessively depend on other balancing authorities in the Interconnection for meeting their demand or interchange obligations.\12\ --------------------------------------------------------------------------- \12\ Id. --------------------------------------------------------------------------- Since then, the Commission has approved one revision to Reliability Standard BAL-006-1 to remove the regional waiver of certain requirements for the Midcontinent ISO, following the Midcontinent ISO's transition to a single balancing authority model.\13\ The currently- effective version of the Reliability Standard is BAL-006-2. --------------------------------------------------------------------------- \13\ See North American Electric Reliability Corp., 134 FERC ] 61,007 (2011). --------------------------------------------------------------------------- B. NERC Petition 7. On April 20, 2016, NERC filed a petition seeking approval of Reliability Standards BAL-005-1 (Balancing Authority Control) and FAC- 001-3 (Facility Interconnection Requirements), nine new or revised definitions associated with the Reliability Standards, and retirement of currently-effective Reliability Standards BAL-005-0.2b (Automatic Generation Control), FAC-001-2 (Facility Interconnection Requirements), and BAL-006-2 (Inadvertent Interchange). 8. In its petition, NERC requested that the two modified Reliability Standards and the revised definitions of Automatic Generation Control, Pseudo-Tie, and Balancing Authority become effective on the first day of the first calendar quarter twelve months from the effective date of the applicable governmental authority's approval of NERC's petition. NERC also requested that the retirement of Reliability Standard BAL-006-2 become effective upon the latter of the effective date of proposed Reliability Standard BAL-005-1 and the NERC Operating Committee's approval of an Inadvertent Interchange Guideline document. 9. For the six remaining definitions (Reporting ACE \14\ and its component definitions: Actual Frequency, Actual Net Interchange, Scheduled Net Interchange, Interchange Meter Error, and Automatic Time Error Correction), NERC initially requested an effective date of July 1, 2016, to coincide with the effective date for Reliability Standard BAL-001-2. However, NERC subsequently withdrew its request for approval of the six Reporting ACE-related definitions from the instant docket, and filed for expedited approval of the six definitions in a separate docket. The six definitions were approved by delegated letter order on June 23, 2016, and are no longer at issue in the instant proceeding.\15\ --------------------------------------------------------------------------- \14\ NERC states that Reporting ACE ``represents a Balancing Authority Area's (BAA's) Area Control Error (ACE) measured in megawatts (MW) as the difference between the BAA's Actual and Scheduled Net Interchange, plus its Frequency Bias Setting obligation and meter error corrections. Reporting ACE helps Responsible Entities provide reliable frequency control by indicating the current state of the entity's contribution to Reliability.'' NERC Petition at 3. \15\ North American Electric Reliability Corp., Docket No. RD16- 7-000 (June 23, 2016) (delegated letter order). --------------------------------------------------------------------------- 10. NERC explained in its petition that Reliability Standards BAL- 005-1 and FAC-001-3, and the proposed retirement of Reliability Standard BAL-006-2, came about as part of the second phase of NERC's project to ``clarify, consolidate, streamline, and enhance the Reliability Standards addressing frequency control.'' \16\ NERC indicated in its petition that the standard drafting team developed the proposed revisions after reviewing applicable Commission directives, ``Paragraph 81'' criteria, and the recommendations of the periodic review team that examined Reliability Standards BAL-005-0.2b and BAL- 006-2.\17\ --------------------------------------------------------------------------- \16\ NERC Petition at 2 (referencing Project 2010-14.2.1 Phase 2 of Balancing Authority Reliability-based Controls). \17\ Id. at 3 (citing North American Electric. Reliability Corp., 138 FERC ] 61,193 at P 81, order on reh'g and clarification, 139 FERC ] 61,168 (2012); Petition of the North American Electric Reliability Corporation for Approval of Retirement of Requirements in Reliability Standards, Docket No. RM13-8-000, at Exhibit A (``Paragraph 81 Criteria'') (filed Feb. 28, 2013); North American Electric Reliability Corp. Order No. 788, 145 FERC ] 61,147 (2013)). --------------------------------------------------------------------------- 11. NERC described the revisions to Reliability Standard BAL-005- 0.2b as clarifying and refining the current requirements ``for accurate, consistent, and complete'' reporting of Reporting ACE, which is a key frequency control and reliability indicator.\18\ These revisions include relocating some of the current requirements of Reliability Standard BAL-005-0.2b, which relate to confirming that facilities are within a balancing authority's metered boundary, into Reliability Standard FAC-001-3. In addition, NERC proposed to relocate Requirement R3 of currently-effective Reliability Standard BAL-006-2 into Reliability Standard BAL-005-1, explaining that the requirement relates to ensuring that balancing authorities use consistent data sources to calculate Reporting ACE, and therefore more properly belongs in Reliability Standard BAL-005. --------------------------------------------------------------------------- \18\ Id. --------------------------------------------------------------------------- 12. NERC explained that the revised Reliability Standards ``represent substantial improvements over existing Reliability Standards by helping to support more accurate and comprehensive calculation of Reporting [[Page 44725]] ACE and satisfying all remaining Commission directives for Reliability Standards BAL-005 and BAL-006.'' \19\ Further, NERC maintained that Reliability Standard BAL-005-1 is an improvement over the currently- effective version, BAL-005-0.2b, because it ``consolidates unnecessary or repetitive Requirements and moves certain metrics for calculating Reporting ACE to the revised, proposed definition of Reporting ACE.'' \20\ Among other things, NERC proposed to move requirements applicable to generator operators and transmission operators in currently- effective Reliability Standard BAL-005-0.2b, into a more appropriate Reliability Standard, explaining that ``[a]s the purpose of FAC-001-3 is more commensurate with interconnection responsibilities, interconnection procedures contained in currently effective BAL-005- 0.2b should be included in proposed Reliability Standard FAC-001-3.'' \21\ --------------------------------------------------------------------------- \19\ Id. at 12. \20\ Id. at 13. \21\ Id. at 23. --------------------------------------------------------------------------- 13. In addition, NERC asserted that Reliability Standard BAL-005-1 improves on the currently-effective version of the Reliability Standard because proposed Requirement R2 clarifies the performance expectations for notification to reliability coordinators when a balancing authority is unable to calculate Reporting ACE for 30 minutes or more,\22\ and Requirement R5 ``introduces a new obligation . . . to assure the availability of a BA's system used to calculate Reporting ACE,'' requiring a minimum availability of 99.5 percent in each calendar year.\23\ --------------------------------------------------------------------------- \22\ Id. at 16. \23\ Id. at 19. --------------------------------------------------------------------------- 14. NERC stated that the package of revisions reflected in its petition addresses the outstanding directives related to Reliability Standards BAL-005 and BAL-006 from Order No. 693. Specifically, NERC stated that the title of Reliability Standard BAL-005-1 has been modified from Automatic Generation Control to Balancing Authority Control ``to reflect the connection to Reporting ACE and resource- neutral requirements.'' \24\ In addition, NERC indicated that it has revised the definition of Automatic Generation Control to ensure a resource-neutral process for controlling demand and resources.\25\ --------------------------------------------------------------------------- \24\ Id. at 13 (referencing Order No. 693, FERC Stats. & Regs. ] 31,242 at P 404, and noting that the Commission's directive related to resource-neutrality for regulating reserves is now moot, as Requirement R2 of Reliability Standard BAL-005-0.2b, which required entities to maintain regulating reserves, has been retired). \25\ Id. at n.39. --------------------------------------------------------------------------- 15. NERC also stated that the requirements of Reliability Standard BAL-005-1 all have a ``medium'' violation risk factor, thereby addressing the Commission's directive to revise the violation risk factor for Reliability Standard BAL-005-0, Requirement R17 to ``medium.'' \26\ Similarly, NERC asserted that it met the directive to consider Xcel and FirstEnergy's comments about the scope of Requirement R17, which set minimum accuracy requirements for time error and frequency devices, by retiring part of the currently-effective requirement and moving the minimum accuracy requirements into Requirement R3 of Reliability Standard BAL-005-1. NERC maintained that this response has ``streamlined obligations to use specific frequency metering equipment that is necessary for operation of [automatic generation control (AGC)] and accurate calculation of Reporting ACE, as this ensures that costs associated with implementation are commensurate with reliability benefit.'' \27\ --------------------------------------------------------------------------- \26\ Id. at 17; see also North American Elec. Reliability Corp., 121 FERC ] 61,179, at P 58 (2007). \27\ NERC Petition at 18. --------------------------------------------------------------------------- 16. NERC proposed to move Requirement R3 from currently-effective Reliability BAL-006-2 into Reliability Standard BAL-005-1, but NERC proposed to retire the rest of the requirements of Reliability Standard BAL-006-2 (Requirements R1, R2, R4, and R5). NERC stated that the standard drafting team determined that, aside from Requirement R3, each of the requirements in Reliability Standard BAL-006-2 are ``energy accounting standards'' and/or are ``administrative'' in nature, and should accordingly be retired.\28\ --------------------------------------------------------------------------- \28\ Id. at 25-26. --------------------------------------------------------------------------- 17. NERC acknowledged that the Commission previously directed it to develop measures concerning the accumulation of large inadvertent imbalances, based on the Commission's concern that large imbalances may indicate an underlying problem. NERC explained, however, that the requirements of Reliability Standard BAL-001-2, which require balancing authorities to maintain clock-minute ACE within the Balancing Authority ACE Limit, as well as the requirements of Reliability Standard BAL-003- 1 and proposed Reliability Standard BAL-002-2, which require entities to restore Reporting ACE within predefined bounds, prevent any excessive dependency on other entities. As NERC explained in its petition: Because entities are supporting frequency through this coordinated suite of reliability standards, entities will not excessively depend on other entities in the Interconnection such that the purely economic issue that was addressed by BAL-006-2 becomes a reliability issue for a NERC Reliability Standard.\29\ --------------------------------------------------------------------------- \29\ Id. at 27. --------------------------------------------------------------------------- 18. In order to address ``any remaining or potential concerns with retirement of BAL-006-2,'' NERC proposed that the retirement become effective only upon the Operating Committee's approval of an Inadvertent Interchange Guideline document.\30\ NERC stated that the Inadvertent Interchange Guideline document was based on a white paper developed by the standard drafting team for Reliability Standards BAL- 005 and BAL-006, and maintained that it provides an in-depth justification for why a NERC Reliability Standard is not necessary for inadvertent interchange. --------------------------------------------------------------------------- \30\ The Inadvertent Interchange Guideline document was subsequently approved by the NERC Operating Committee, on December 13, 2016. See NERC, Reliability Guideline: Inadvertent Interchange (Dec. 13, 2016, http://www.nerc.com/comm/OC/Reliability%20Guideline%20DL/Reliability_Guideline_Inadvertent_Interchange.pdf. --------------------------------------------------------------------------- 19. With respect to the three proposed definitions that remain at issue in this proceeding, NERC explained that: (1) ``Automatic Generation Control'' has been revised to set forth a resource-neutral process for controlling demand and resources; (2) ``Pseudo-Tie'' has been updated to reflect the use of the term ``Reporting ACE;'' and (3) ``Balancing Authority'' has been revised to more accurately describe a balancing authority's resource demand function. C. NERC Supplemental Filing 20. On June 14, 2016, NERC submitted supplemental information in support of its April 20, 2016 petition (Supplemental Filing), to provide additional explanation and support for the retirement of Requirement R15 in currently-effective Reliability Standard BAL-005- 0.2b.\31\ In its Supplemental Filing, NERC maintained that Requirement R15 should be retired because the objectives of that requirement (i.e., to ensure the continued operation of AGC and certain data recording equipment during the loss of normal power supply) are being addressed through other Reliability Standards and requirements. Specifically, NERC maintained that [[Page 44726]] Reliability Standard EOP-008-1 requires a balancing authority to have a backup control center facility and an operating plan that allows it to meet its functional obligations with regard to the reliable operation of the bulk electric system in the event that its primary control center functionality is lost.\32\ --------------------------------------------------------------------------- \31\ As NERC notes in its Supplemental Filing, NERC stated in its initial petition that ``Requirements R2, R7 and R15 . . . are redundant, ineffective, and should be retired based on Commission- approved Paragraph 81 Criteria.'' NERC Supplemental Filing at 1 (quoting NERC Petition at 15). \32\ NERC Supplemental Filing at 2. --------------------------------------------------------------------------- 21. In addition, NERC maintained that the proposed performance requirements of Requirement R3 of Reliability BAL-005-1, which would require balancing authorities to ``use frequency metering equipment for the calculation of Reporting ACE that is available a minimum of 99.95% of each calendar year,'' will help to ensure that balancing authorities can continuously operate the equipment necessary for the calculation of Reporting ACE, effectively eliminating the need for Requirement R15.\33\ --------------------------------------------------------------------------- \33\ Id. at 4. --------------------------------------------------------------------------- D. Notice of Proposed Rulemaking and Data Request 22. On September 22, 2016, the Commission issued a notice of Proposed Rulemaking proposing to approve Reliability Standards BAL-005- 1 and FAC-001-3, as replacements for the existing versions of those standards, and to approve the retirement of Reliability Standard BAL- 006-2 on the latter of the effective date of BAL-005-1 or the NERC Operating Committee's approval of an Inadvertent Interchange Guideline. In the NOPR, the Commission raised several questions about the impact of eliminating Requirement R15 from currently-effective Reliability Standard BAL-005-0.2b, which requires responsible entities to maintain and periodically test backup power supplies at primary control centers and other critical locations.\34\ The Commission indicated that, depending on the information received in comments in response to its questions, it may decide to issue a directive to restore the substance of Requirement R15 as part of a final rule.\35\ --------------------------------------------------------------------------- \34\ NOPR, 156 FERC ] 61,210 at PP 26-33. \35\ Id. P 25. --------------------------------------------------------------------------- 23. Five sets of comments were filed in response to the NOPR.\36\ Subsequently, the Commission staff issued a data request to NERC seeking additional information about the current practices of a representative sample of entities concerning the use of backup power supplies.\37\ Specifically, the Commission sought further information from a sample of existing balancing authorities, reliability coordinators, and transmission operators related to the kinds of backup power supply they maintain at control centers and other critical locations, including current testing practices for those backup power supplies. NERC submitted its response to the data request on April 7, 2017. --------------------------------------------------------------------------- \36\ The Appendix lists the entities that submitted comments and the shortened names used throughout this Final Rule to describe those entities. \37\ Data Request in Response to Petition Seeking Approval of Reliability Standards BAL-005-1 and FAC-001-3, Docket No. RM16-13- 000 (March 7, 2017) (March 7 Data Request). --------------------------------------------------------------------------- II. Discussion 24. Pursuant to FPA section 215(d)(2), the Commission approves Reliability Standards BAL-005-1 and FAC-001-3 as just, reasonable, not unduly discriminatory or preferential, and in the public interest. Reliability Standard BAL-005-1 and FAC-001-3 will enhance reliability as compared to currently-effective Reliability Standards BAL-005-0.2b and FAC-001-2, because the Reliability Standards clarify and consolidate existing requirements related to frequency control. In addition, Reliability Standard BAL-005-1 supports more accurate and comprehensive calculation of Reporting ACE by requiring timely reporting of an inability to calculate Reporting ACE (Requirement R2) and by requiring minimum levels of availability and accuracy for each balancing authority's system for calculating Reporting ACE (Requirement R5). 25. We also approve the violation risk factors and violation severity levels associated with Reliability Standards BAL-005-1 and FAC-001-3; the revisions to the definitions of Automatic Generation Control, Pseudo-Tie, and Balancing Authority as proposed by NERC; the retirement of Reliability Standards BAL-005-0.2b, FAC-001-2, and BAL- 006-2 in accordance with NERC's implementation plan; \38\ and NERC's implementation plans for proposed Reliability Standards BAL-005-1 and FAC-001-3. --------------------------------------------------------------------------- \38\ As discussed above, NERC requested that the retirement of Reliability Standard BAL-006-2 become effective upon the latter of the effective date of proposed Reliability Standard BAL-005-1 and the NERC Operating Committee's approval of the Inadvertent Interchange Guideline document. Because the NERC Operating Committee has now approved the guideline document, we approve the retirement of BAL-006-2 as of the date BAL-005-1 goes into effect. --------------------------------------------------------------------------- 26. As discussed below, the Commission determines not to direct NERC to restore the requirement, currently found in Requirement R15 of Reliability Standard BAL-005-0.2b, to maintain and test backup power supplies at primary control centers and other critical locations at this time. A. Reliability Standards BAL-005-1 and FAC-001-3 NOPR 27. In the NOPR, the Commission proposed to approve Reliability Standards BAL-005-1 and FAC-001-3. The Commission noted that the modified Reliability Standards would clarify and consolidate existing requirements related to frequency control, and that Reliability Standard BAL-005-1 would support more accurate and comprehensive calculation of Reporting ACE. Comments 28. NERC, Trade Associations, and BPA submitted comments in support of the Commission's proposal to approve Reliability Standards BAL-005-1 and FAC-001-3. NERC maintains, as it did in its petition and supplemental filing, that the modified Reliability Standards not only address all remaining directives related to BAL-005 and BAL-006, but also ``substantially improve existing frequency control requirements and support stronger frequency control performance.'' \39\ Similarly, Trade Associations argue that the Reliability Standards will support more accurate and comprehensive calculation of Reporting ACE, as the Commission recognized in the NOPR.\40\ --------------------------------------------------------------------------- \39\ NERC Comments at 4. \40\ Trade Associations Comments at 4. --------------------------------------------------------------------------- Commission Determination 29. We approve Reliability Standards BAL-005-1 and FAC-001-3. As proposed in the NOPR, the Commission determines that the modified Reliability Standards will, overall, enhance reliability by clarifying and consolidating existing requirements related to frequency control. Specifically, the Reliability Standards will support more accurate and comprehensive calculation of Reporting ACE by requiring timely reporting of an inability to calculate Reporting ACE and by requiring balancing authorities to maintain minimum levels of annual availability of 99.5 percent for each balancing authority's system for calculating Reporting ACE. B. Retirement of Reliability Standard BAL-005-0.2b, Requirement R15 NOPR 30. The NOPR observed that Reliability Standard BAL-005-1 does not include a requirement comparable to currently-effective Requirement R15 of Reliability Standard BAL-005-0.2b, which states as follows: The Balancing Authority shall provide adequate and reliable backup power supplies and shall periodically test these supplies at the Balancing Authority's control center and [[Page 44727]] other critical locations to ensure continuous operation of AGC and vital data recording equipment during loss of the normal power supply.\41\ --------------------------------------------------------------------------- \41\ See NOPR, 156 ] 61,210 at P 26. 31. The NOPR recognized that the approach taken in Reliability Standard BAL-005-1, when combined with the requirements of other Reliability Standards requiring entities to meet their functional obligations in the event of the loss of a primary control center, was intended to be a more performance-based approach to ensuring reliable operation of the bulk electric system.\42\ However, the Commission expressed concern that the objectives of Requirement R15 would not be fully met by the other Reliability Standards and requirements NERC had identified, and in particular pointed out the following potential gap: --------------------------------------------------------------------------- \42\ Id. at 30. Requirement R15 of currently-effective Reliability Standard BAL- 005-0.2b helps to ensure continued operability of balancing authorities' primary control centers, despite the loss of normal power supply, without evacuation to or activation of backup control centers. Thus, this provision appears to provide additional robustness in the primary control center and mitigates the risk of problems occurring in the transition to a secondary control center.\43\ --------------------------------------------------------------------------- \43\ Id. P 31. The NOPR also pointed out that balancing authorities currently appear to be the only type of functional entity explicitly required to have and to test adequate and reliable backup supply at critical locations, and that there is no provision parallel to Requirement R15 for reliability coordinators or transmission operators.\44\ --------------------------------------------------------------------------- \44\ Id. P 30. --------------------------------------------------------------------------- 32. The NOPR requested comments from NERC and others on the retirement of Requirement R15 of Reliability Standard BAL-005-0.2b, specifically asking for comment on the benefits and potential burden of retaining Requirement R15, and an explanation as to why there is no parallel to Requirement R15 for reliability coordinators and transmission operators, including whether any reason exists to distinguish between balancing authorities and other entities that may operate a control center or critical facility.\45\ In addition, the Commission asked commenters to respond to six specific questions regarding the impact of retiring Requirement R15; current practices with respect to backup power supply at control centers; and the scope of other requirements identified by NERC as fulfilling the same objectives as current Requirement R15.\46\ --------------------------------------------------------------------------- \45\ Id. P 32. \46\ Id. P 33. --------------------------------------------------------------------------- Comments 33. NERC, Trade Associations, and BPA maintain that Requirement R15 should be retired without further directive from the Commission, as the results-based requirements of Reliability Standard BAL-005-1 represent a more comprehensive and superior approach. NERC asserts that Reliability Standard EOP-008-1's results-based or functionality-based approach is preferable overall,\47\ while Trade Associations and other commenters point out that the performance levels required in Reliability Standard BAL-005-1, Requirements R3 and R5, cannot be achieved without having critical backup systems, including a backup power supply that is routinely maintained and tested.\48\ --------------------------------------------------------------------------- \47\ NERC Comments at 8-9. \48\ Trade Associations Comments at 8; see also BPA Comments at 4. --------------------------------------------------------------------------- 34. NERC contends that the existing requirements of R15 focus on only one factor contributing to reliable control center performance (i.e., backup power supplies), while Reliability Standard BAL-005-1 includes two performance obligations ``that subsume requirement R15.'' \49\ Specifically, NERC points out that Requirement R3 requires balancing authorities to use frequency metering equipment for calculation of Reporting ACE that is available at least 99.95 percent annually, with minimum accuracy of 0.001 Hz, and Requirement R5 requires that each system used by a balancing authority to calculate Reporting ACE also be available at least 99.5 percent annually. NERC states that these performance obligations, which provide no exceptions and include other critical elements such as data acquisition and communications, frequency metering, and ACE calculation systems, contrast with existing Requirement R15, which focuses on only one component (power supply) that contributes to performance.\50\ In addition, NERC maintains that new Requirement R3 ``will ensure virtual `continuous operation of AGC and vital data recording equipment during loss of the normal power supply,' '' thereby effectively replacing Requirement R15.\51\ --------------------------------------------------------------------------- \49\ NERC Comments at 5; Trade Associations Comments at 7-9. \50\ NERC Comments at 6; see also Trade Associations Comments at 8 (asserting that Reliability Standard BAL-005-1's required minimum performance level for calculating ACE ``provides real performance measures that far exceed'' the current requirements of BAL-005-0.2b, and that ``entities will not be able to ensure that they can achieve this level of performance without having critical backups,'' including reliable backup power). \51\ Id. at 6 (responding to NOPR Question 5). --------------------------------------------------------------------------- 35. NERC also maintains, as it did in its petition, that Requirement R15 should be retired, as it is redundant with broader obligations imposed on balancing authorities, reliability coordinators, and transmission operators in Reliability Standard EOP-008-1. NERC contends that applicable entities cannot comply with Reliability Standard EOP-008-1 without addressing power sources, although NERC acknowledges that backup power supply may not always be necessary to support the required backup functionality for control center functions. NERC further points out that the functionality obligations under Requirement R1 of Reliability Standard EOP-008-1 include the obligation to address operation of vital equipment necessary for the collection of data to calculate Reporting ACE, assuming frequency metering equipment does not meet the minimum performance requirement under new Requirement R3 of BAL-005-1.\52\ Overall, NERC maintains that Requirements R1 and R7 of Reliability Standard EOP-008-1 ``are broader and clearer than Requirement R15, by requiring [applicable entities] to have in place and test Operating Plans that address all elements (including any power sources) necessary for backup functionality.'' \53\ --------------------------------------------------------------------------- \52\ Id. at 8-9 (responding to NOPR Question 6). \53\ Id. at 10. --------------------------------------------------------------------------- 36. Trade Associations maintain, on a more general level, that overly-prescriptive requirements can be burdensome and often ineffective. Trade Associations assert that in determining whether there is adequate justification for the retirement of Requirement R15, the Commission should assess ``whether [the new and remaining] requirements have sufficient rigor to ensure [bulk electric system] reliability through the continuous efforts to design, build and maintain systems to achieve the desired level of performance.'' \54\ Trade Associations note that NERC's Independent Expert Review Panel concluded that results-based Reliability Standards would improve overall reliability.\55\ Moreover, Trade Associations contend that the absence of a recommendation by the Independent Expert Review Panel to retire Requirement R15 as part of its 2013 report has no bearing on the question of [[Page 44728]] retirement now, given the improvements and enhancements associated with Reliability BAL-005-1. Finally, Trade Associations raise a concern that the Commission may be misconstruing Reliability Standard BAL-005-0.2b to address a reliability concern beyond that intended for BAL-005. Trade Associations maintain that the BAL-005 Reliability Standards ``were written for the express purpose of ensuring [balancing authorities] can reliably and effectively calculate Reporting ACE in order to maintain resource and demand balance within their area of responsibility.'' \56\ --------------------------------------------------------------------------- \54\ Trade Associations Comments at 6-7. \55\ Id. at 7 (citing Standards Independent Expert Review Project; Chapter 5; Conclusions; at 18). \56\ Id. at 7. --------------------------------------------------------------------------- 37. As to what obligations would still exist under Reliability Standard EOP-008-1 if the backup power supply obligation in Requirement R15 was retired, NERC, Trade Associations, and all other commenters addressing the question acknowledge that EOP-008-1 does not require applicable entities to have backup power supply at the primary or the secondary control center.\57\ However, NERC asserts that backup functionality obligations under Requirement R1 of Reliability Standard EOP-008-1 ``include the obligation to address operation of vital equipment necessary for the collection of data to calculate Reporting ACE if frequency metering equipment does not meet the minimum performance requirements under proposed R3 of BAL-005-1.'' \58\ By contrast, the Trade Associations acknowledge that Reliability Standard EOP-008-1 does not ensure continuous operation of AGC and vital data recording equipment during the loss of normal power supply.\59\ --------------------------------------------------------------------------- \57\ NERC notes, for example, that Reliability Standard EOP-008- 1, Requirement R1 requires entities to address power and backup power as part of their emergency plans, but acknowledges that it does not necessarily require backup power at either the primary or secondary control center. See also Trade Associations at 12; BPA at 3 (stating that without R15, BPA ``does not believe there is an enforceable requirement to have a backup power supply to support frequency metering equipment''). \58\ NERC Comments at 8-9 (responding to NOPR Question 6). \59\ Trade Associations Comments at 16. --------------------------------------------------------------------------- 38. With respect to the NOPR's questions on current practices regarding backup power supply, BPA and Idaho Power indicate that they have backup power supply at all of their primary and secondary control centers.\60\ Trade Associations state that most companies have many layers of backup to ensure continued control center functionality, which may include backup power, backup generators and uninterrupted power supply.\61\ In response to the NOPR's questions about the definition of ``critical location'' as currently used in Reliability Standard BAL-005-0.2b, Trade Associations state that the ``other critical locations'' referenced in current requirement R15 could refer to frequency metering equipment (including equipment outside the control center), ancillary computer rooms with energy management systems (EMS) and EMS backups, and other data systems needed for ACE calculation.\62\ --------------------------------------------------------------------------- \60\ BPA Comments at 3; Idaho Power Comments at 3. \61\ Trade Associations Comments at 14. \62\ Id. at 14. --------------------------------------------------------------------------- 39. With respect to the benefits and burdens of having backup power supply at certain locations, Idaho Power acknowledges the benefits of having backup power supply at primary control centers and other critical locations (including the benefit of ensuring compliance with other reliability requirements), and it states that the potential impact to reliability is no different for reliability coordinators or transmission operators.\63\ Trade Associations maintain, however, that there is no need for additional requirements for reliability coordinators and transmission operators related to backup power supply, because other Reliability Standards require or encourage certain levels of reliability and functionality at these locations, as evidenced by the historical lack of problems with loss of EMS or loss of power supply at control centers.\64\ --------------------------------------------------------------------------- \63\ Idaho Power Comments at 2. \64\ Trade Associations Comments at 9-11. --------------------------------------------------------------------------- 40. Appelbaum primarily discusses the importance of backup power supplies in the context of communications networks. Appelbaum points to a report issued by the Federal Communications Commission in response to the June 2012 ``derecho'' event on communications networks and services in Virginia. The report found that communications were disrupted in large part during that event because of avoidable planning and system failures, including the lack of functional backup power, notably in central offices. Appelbaum contends, based on the derecho event, that the need to properly plan and design backup power is a critical component of reliability, and asks that the findings of the derecho event be considered when the Commission assesses the functional approach of Reliability Standard EOP-008-1.\65\ Appelbaum points out that ``there is no specific mention of the performance requirements of the backup power supply, the required design, or reference to an Industry Standard'' in Reliability Standard EOP-008-1, which ``creates a degree of ambiguity that can be exploited to avoid installing a sufficient level of redundancy in power supplies.'' \66\ Appelbaum further states the requirement for backup power design and testing should extend to reliability coordinators, transmission operators, and balancing authorities.\67\ In sum, Appelbaum's comments stress the overall need to impose specific requirements, not merely functional obligations, related to backup power supply for critical systems. --------------------------------------------------------------------------- \65\ See Appelbaum Comments at 4. \66\ Id. \67\ Id. at 5. --------------------------------------------------------------------------- Response to Data Request 41. In response to the Commission's March 7 Data Request requesting information on specific backup supply practices from a sampling of registered entities, NERC indicated that it collected data from nine entities, all registered as a balancing authority, reliability coordinator, transmission operator, or some combination of those functional categories. NERC indicated that the sample reflected some diversity as to size and type of entity and, therefore, the information ``should be reflective of current practices throughout the industry.'' \68\ --------------------------------------------------------------------------- \68\ NERC Response to Data Request at 3. --------------------------------------------------------------------------- 42. NERC's response indicates that all surveyed entities have backup power supplies at their primary and backup control centers. A number of entities responded that these backup supplies were installed prior to the effective date of NERC's mandatory Reliability Standards, and that they would not change their practices if the Commission approved the retirement of Requirement R15 of Reliability Standard BAL- 005-0.2b. NERC reported that the surveyed entities have backup power supply at a number of other critical locations, which include data centers, corporate facilities, and operations centers (e.g., those housing cyber and physical security operations). NERC indicated that the surveyed entities have two types of backup power supplies at their control centers: backup generators and uninterruptible power supplies. According to NERC, each of the surveyed entities reported that it regularly tests its backup power supplies in accordance with written procedures, the majority doing monthly run testing. NERC reported that some entities also perform switchover or transfer testing on a monthly basis, while others perform such testing at longer intervals. [[Page 44729]] Commission Determination 43. We approve the retirement of Reliability Standard BAL-005-0.2b, including Requirement R15, upon the effective date of Reliability Standard BAL-005-1. Based on the NOPR comments, we determine not to direct NERC to develop modifications to the Reliability Standards to restore the substance of Requirement R15 at this time. We conclude that the performance obligations of Reliability Standards BAL-005-1 and EOP- 008-1 will ensure the continued operation of AGC and certain data recording equipment during the loss of normal power supply. Moreover, based on the responses to the March 7 Data Request, we are satisfied that backup power supplies at primary and secondary control centers and other critical locations will likely continue to be used even after the retirement of Reliability Standard BAL-005-0.2b, Requirement R15. Should that practice change to the detriment of Bulk-Power System reliability after the revised Reliability Standards go into effect, the Commission may revisit this issue. III. Information Collection Statement 44. The Paperwork Reduction Act (PRA) \69\ requires each federal agency to seek and obtain Office of Management and Budget (OMB) approval before undertaking a collection of information directed to ten or more persons, or contained in a rule of general applicability. The OMB regulations require that OMB approve certain reporting and recordkeeping (collections of information) imposed by an agency.\70\ Upon approval of a collection(s) of information, OMB will assign an OMB control number and expiration date. Respondents subject to the filing requirements of this rule will not be penalized for failing to respond to these collections of information unless the collections of information display a valid OMB control number. --------------------------------------------------------------------------- \69\ 44 U.S.C. 3501-3520. \70\ 5 CFR 1320.11. --------------------------------------------------------------------------- 45. This Final Rule approves revisions to Reliability Standards BAL-005, associated with FERC-725R, and FAC-001, associated with FERC- 725D. These revisions streamline and clarify the current requirements related to the calculation of Reporting ACE, a key frequency control and reliability indicator factor, including consolidating the seventeen requirements of currently-effective Reliability Standard BAL-005-0.2b, associated with FERC-725R, into seven requirements in Reliability Standard BAL-005-1; relocation of certain requirements related to interconnection requirements for transmission owners and generation owners into Reliability Standard FAC-001-3; relocation of Requirement R3 in currently-effective Reliability Standard BAL-006-2 into Reliability Standard BAL-005-1; and relocation of certain metrics and calculations required for calculating Reporting ACE into the NERC definition of Reporting ACE and its component definitions. 46. The revisions to Reliability Standards BAL-005 and FAC-001 will not result in an increase in the record-keeping and reporting requirements imposed on balancing authorities, other than the one-time cost of administering the change to the revised Reliability Standards. All other recordkeeping and reporting obligations imposed on balancing authorities under the modified requirements essentially track those that already exist under currently-effective Reliability Standards BAL- 005-0.2b and FAC-001-2. The modifications to Reliability Standard FAC- 001-3 will result in a limited increase in the record-keeping and reporting requirements imposed on those transmission owners and generator owners that are not also transmission operators and generator operators (an estimated 161 entities in the United States), as shown in the chart below.\71\ Many of the modifications to the Reliability Standards reflected in this Final Rule were developed to help clarify and streamline existing requirements related to calculation of Reporting ACE, and they are expected to reduce these entities' overall burden with respect to recordkeeping, reporting, and compliance. Moreover, the Final Rule approves the retirement of the majority of the requirements in Reliability Standard BAL-006-2, further reducing the overall record-keeping and reporting requirements for balancing authorities. Accordingly, the Commission estimates that the overall change in the record-keeping and reporting requirements as a result of this Final Rule will be de minimis on a per-entity basis. --------------------------------------------------------------------------- \71\ Reliability Standard FAC-001-3 replaces and strengthens currently-effective Reliability Standard FAC-001-2 by moving currently-effective Requirement R1 of Reliability Standard BAL-005- 0.2b to Reliability Standard FAC-001-3, requiring that transmission owner and generator owner interconnection requirements include procedures for confirming that new or materially modified facilities connecting to the bulk electric system are within a balancing authority's metered boundaries. NERC explains that these interconnection requirements should be relocated to Reliability Standard FAC-001-3, as FAC-001-3 establishes facility interconnection requirements. --------------------------------------------------------------------------- 47. Public Reporting Burden: The changes reflected in Reliability Standard BAL-005-1 are not expected to result in an increase in the annual record-keeping and reporting requirements on applicable entities (balancing authorities). However, balancing authorities will have to perform a one-time review of the modified Reliability Standard to ensure that their compliance practices (including record-keeping) are consistent with the revised requirements. The relocation of Requirement R1 of Reliability Standard BAL-005-0.2b into Reliability Standard FAC- 001-3 will result in an increase in the number of entities subject to the requirement, as the requirement will be applicable to transmission owners and generator owners rather than transmission operators and generator operators. However, this limited increase in annual record- keeping and reporting burden, along with the one-time burden of administering the change from Reliability Standard BAL-005-0.2b to BAL- 005-1, is expected to be offset to some extent by the decrease in record-keeping and reporting burden associated with the retirement of Reliability Standard BAL-006-2. ---------------------------------------------------------------------------------------------------------------- Average Annual burden Number of Number of Total number burden hours hours and Data collection respondents \72\ responses per of responses and cost per total annual respondent response \73\ cost \74\ FERC-725A, 725D & 725R1 (1)............. (2)............ (1) x (2) = (4) (3) x (4) = (modifications in RM16-13- (3) (5) 000) ---------------------------------------------------------------------------------------------------------------- BAL-005-1 (FERC-725R1)....... BA.............. 1 (one-time)... 99 1 99 99.............. ............... .............. $64.29 $6,364.71 FAC-001-3 R3 (FERC-725D)..... GO/TO........... 1 (annual)..... 161 1 161 161 \75\........ ............... .............. $102.04 $16,428.44 [[Page 44730]] Retirement of current BA.............. -1 (annual).... -99 -1 -99 standard BAL-006-02 (FERC- 99.............. ............... .............. -$37.75 -$3,737.25 725A). ----------------------------------------------- Total.................... ................ ............... .............. .............. 260 $19,055.90 ---------------------------------------------------------------------------------------------------------------- Title: FERC-725A, Mandatory Reliability Standards for the Bulk- Power System; FERC-725D, Mandatory Reliability Standards: FAC Reliability Standards; FERC-725R1, Mandatory Reliability Standards: BAL Reliability Standards --------------------------------------------------------------------------- \72\ The estimated number of respondents is based on the NERC compliance registry as of April 7, 2017. According to the NERC compliance registry, there are 64 U.S. balancing authorities (BA) in the Eastern Interconnection, 34 balancing authorities in the Western Interconnection and one balancing authority in the Electric Reliability Council of Texas (ERCOT). \73\ The burden hours and cost are based on the hourly cost for an engineer for BAL-005-1, the average of the hourly cost for an engineer and clerical staff for FAC-001-3, and the hourly cost for clerical staff for changes associated with the retirement of BAL- 006-2. The estimates for cost per hour are based on 2015 wage figures and derived as follows: $64.29/hour, the average salary plus benefits per engineer (from Bureau of Labor Statistics at https://www.bls.gov/oes/current/naics2_22.htm); $37.75/hour, the average salary plus benefits per information and record clerks (from Bureau of Labor Statistics at https://www.bls.gov/oes/current/naics2_22.htm). \74\ Solely for purposes of determining the overall annual cost of the record-keeping and reporting changes reflected in this Final Rule, the one-time cost associated with administering the change to Reliability Standard BAL-005-1 is being treated as an annual cost. \75\ Per the NERC compliance registry, in the United States there are 54 generator owners (GO) that are not also generator operators and 107 transmission owners (TO) that are not also transmission operators, for a total of 161 new entities in the United States subject to Reliability Standard FAC-001-3, Requirement R3. --------------------------------------------------------------------------- Action: Revision to existing collections. OMB Control No: 1902-0244 (FERC-725A); 1902-0247 (FERC-725D); TBD (FERC-725R1). Respondents: Business or other for-profit and not-for-profit institutions. Frequency of Responses: On-going. Necessity of the Information: The Commission has reviewed the requirements of Reliability Standards BAL-005-1 and FAC-001-3 and has made a determination that the requirements of these Reliability Standards are necessary to implement section 215 of the FPA. Internal Review: The Commission reviewed the revised Reliability Standards and made a determination that its action is necessary to implement section 215 of the FPA. The Commission has assured itself, by means of its internal review, that there is specific, objective support for the burden estimates associated with the information requirements. 48. Interested persons may obtain information on the reporting requirements by contacting the following: Federal Energy Regulatory Commission, 888 First Street NE., Washington, DC 20426 [Attention: Ellen Brown, Office of the Executive Director, e-mail: [email protected], phone: (202) 502-8663, fax: (202) 273-0873]. 49. For submitting comments concerning the collection(s) of information and the associated burden estimate(s), please send your comments to the Commission and to the Office of Management and Budget, Office of Information and Regulatory Affairs, Washington, DC 20503 [Attention: Desk Officer for the Federal Energy Regulatory Commission, phone: (202) 395-4638, fax: (202) 395-7285]. For security reasons, comments to OMB should be submitted by e-mail to: [email protected]. Comments submitted to OMB should include FERC-725A, FERC-725D, and FERC-725R1 and Docket Number RM16-13-000. IV. Environmental Analysis 50. The Commission is required to prepare an Environmental Assessment or an Environmental Impact Statement for any action that may have a significant adverse effect on the human environment.\76\ The Commission has categorically excluded certain actions from this requirement as not having a significant effect on the human environment. Included in the exclusion are rules that are clarifying, corrective, or procedural or that do not substantially change the effect of the regulations being amended.\77\ The actions taken here fall within this categorical exclusion in the Commission's regulations. --------------------------------------------------------------------------- \76\ Regulations Implementing the National Environmental Policy Act of 1969, Order No. 486, FERC Stats. & Regs., Regulations Preambles 1986-1990 ] 30,783 (1987). \77\ 18 CFR 380.4(a)(2)(ii). --------------------------------------------------------------------------- V. Regulatory Flexibility Act Certification 51. The Regulatory Flexibility Act of 1980 (RFA) \78\ generally requires a description and analysis of proposed rules that will have significant economic impact on a substantial number of small entities. The RFA does not mandate any particular outcome in a rulemaking. It only requires consideration of alternatives that are less burdensome to small entities and an agency explanation of why alternatives were rejected. The Small Business Administration (SBA) revised its size standard effective January 22, 2014 for electric utilities from a standard based on megawatt hours to a standard based on the number of employees, including affiliates. Under SBA's size standards, some balancing authorities, generation owners, and transmission owners will fall under the following category and associated size threshold: Electric bulk power transmission and control, at 500 employees.\79\ --------------------------------------------------------------------------- \78\ 5 U.S.C. 601-612. \79\ 13 CFR 121.201, Sector 22 (Utilities), NAICS code 221121 (Electric Bulk Power Transmission and Control). --------------------------------------------------------------------------- 52. As stated in the NOPR, the Commission estimates a very limited, one-time increase in recordkeeping and reporting burden on balancing authorities due to the changes in the revised Reliability Standards, with no other increase in the cost of compliance. Approximately 24 of the 99 balancing authorities are expected to meet the SBA's definition for a small entity. In addition, approximately 161 entities will be subject annually to new record-keeping and reporting requirements under revised Reliability Standard FAC-001-3, with no other increase in the cost of compliance. [[Page 44731]] 53. Even assuming that the one-time cost of compliance for administering the change from Reliability Standard BAL-005-0.2b to BAL- 005-1 is an annual cost, and assuming that all of the entities affected by the revisions to both BAL-005 and FAC-001 qualify as small entities, the estimated total annual cost to the industry as a whole is minimal ($19,055.90), and the average cost per affected entity is $118.36. 54. According to SBA guidance, the determination of significance of impact ``should be seen as relative to the size of the business, the size of the competitor's business, and the impact the regulation has on larger competitors.'' \80\ The Commission does not consider the estimated burden to be a significant economic impact. As a result, the Commission certifies that the revised Reliability Standards will not have a significant economic impact on a substantial number of small entities. --------------------------------------------------------------------------- \80\ U.S. Small Business Administration, A Guide for Government Agencies How to Comply with the Regulatory Flexibility Act, at 18 (May 2012), https://www.sba.gov/sites/default/files/advocacy/rfaguide_0512_0.pdf. --------------------------------------------------------------------------- VI. Document Availability 55. In addition to publishing the full text of this document in the Federal Register, the Commission provides all interested persons an opportunity to view and/or print the contents of this document via the Internet through the Commission's Home Page (http://www.ferc.gov) and in the Commission's Public Reference Room during normal business hours (8:30 a.m. to 5:00 p.m. Eastern time) at 888 First Street NE., Room 2A, Washington, DC 20426. 56. From the Commission's Home Page on the Internet, this information is available on eLibrary. The full text of this document is available on eLibrary in PDF and Microsoft Word format for viewing, printing, and/or downloading. To access this document in eLibrary, type the docket number of this document, excluding the last three digits, in the docket number field. 57. User assistance is available for eLibrary and the Commission's Web site during normal business hours from the Commission's Online Support at (202) 502-6652 (toll free at 1-866-208-3676) or e-mail at [email protected], or the Public Reference Room at (202) 502- 8371, TTY (202) 502-8659. Email the Public Reference Room at [email protected]. VII. Effective Date and Congressional Notification These regulations are effective November 27, 2017. The Commission has determined, with the concurrence of the Administrator of the Office of Information and Regulatory Affairs of OMB, that this rule is not a ``major rule'' as defined in section 351 of the Small Business Regulatory Enforcement Fairness Act of 1996. By the Commission. Issued: September 20, 2017 Nathaniel J. Davis, Sr., Deputy Secretary. Appendix List of Commenters ------------------------------------------------------------------------ Abbreviation Commenter ------------------------------------------------------------------------ NERC................................... North American Electric Reliability Corporation. Trade Associations..................... Edison Electric Institute, American Public Power Association, and Large Public Power Council. BPA.................................... Bonneville Power Administration. Idaho Power............................ Idaho Power Company. Appelbaum.............................. Jonathan Appelbaum. ------------------------------------------------------------------------ [FR Doc. 2017-20554 Filed 9-25-17; 8:45 am] BILLING CODE 6717-01-P
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then clockwise along a 3.5 NM arc First Street NE., Washington, DC issued to NERC,3 the Commission has
centered at latitude 32°51′53″ N., 20426, Telephone: (202) 502–8718, determined that it will not, at this time,
longitude 114°23′35″ W.; to latitude Syed.Ahmad@ferc.gov direct NERC to restore existing
32°49′30″ N., longitude 114°26′38″ W.; Julie Greenisen (Legal Information), requirements in Requirement R15 of
to latitude 32°49′51″ N., longitude Office of the General Counsel, Federal Reliability Standard BAL–005–0.2b
114°26′38″ W.; to latitude 32°50′08″ N., Energy Regulatory Commission, 888 related to maintaining and testing
longitude 114°26′3″ W.; to latitude First Street NE., Washington, DC backup power supplies at primary
32°50′17″ N., longitude 114°26′19″ W.; 20426, Telephone: (202) 502–6362, control centers and other critical
to latitude 32°50′31″ N., longitude Julie.Greenisen@ferc.gov. locations. We also approve NERC’s
114°26′17″ W.; to latitude 32°50′42″ N., request to retire Reliability Standard
longitude 114°26′9″ W.; to latitude SUPPLEMENTARY INFORMATION: BAL–006–2, BAL–005–0.2b and FAC–
32°51′11″ N., longitude 114°26′34″ W.; 001–2 upon the effective date of
ORDER NO. 836
to the point of beginning. Reliability Standard BAL–005–1.
Designated altitudes: Surface to and FINAL RULE
including 1,700 feet MSL. I. Background
Time of Designation: Intermittent, 1. Pursuant to section 215 of the A. Mandatory Reliability Standards and
0600–1800 local time, Monday– Federal Power Act (FPA),1 the Order No. 693
Saturday; other times by NOTAM. Commission approves Reliability
Controlling Agency: Yuma Approach Standards BAL–005–1 (Balancing 3. Section 215 of the FPA requires a
Control, MCAS Yuma, AZ. Authority Control) and FAC–001–3 Commission-certified Electric
Using Agency: U.S. Army, (Facility Interconnection Requirements), Reliability Organization (ERO) to
Commanding Officer, Yuma Proving submitted by the North American develop mandatory and enforceable
Ground, Yuma, AZ. Electric Reliability Corporation (NERC), Reliability Standards that are subject to
as well as the retirement of Reliability Commission review and approval.
Issued in Washington, DC, on September Specifically, the Commission may
20, 2017. Standards BAL–005–0.2b (Automatic
Generation Control), FAC–001–2 approve, by rule or order, a proposed
Rodger A. Dean Jr., Reliability Standard or modification to a
Manager, Airspace Policy Group.
(Facility Interconnection Requirements),
and BAL–006–2 (Inadvertent Reliability Standard if it determines that
[FR Doc. 2017–20590 Filed 9–25–17; 8:45 am] the Reliability Standard is just,
Interchange). The Commission also
BILLING CODE 4910–13–P
approves the associated implementation reasonable, not unduly discriminatory
plans, violation risk factors, and or preferential and in the public
violation severity levels for Reliability interest.4 Once approved, the Reliability
DEPARTMENT OF ENERGY Standards BAL–005–1 and FAC–001–3. Standards may be enforced by NERC,
Finally, the Commission approves three subject to Commission oversight, or by
Federal Energy Regulatory the Commission independently.5
revised definitions for the glossary of
Commission 4. Pursuant to section 215 of the FPA,
terms used in NERC’s Reliability
Standards (NERC Glossary). the Commission established a process to
18 CFR Part 40 select and certify an ERO,6 and
2. The Commission determines that subsequently certified NERC as the
[Docket No. RM16–13–000; Order No. 836] Reliability Standards BAL–005–1 and ERO.7 On March 16, 2007, the
FAC–001–3 will enhance the reliability Commission issued Order No. 693,
Balancing Authority Control,
of the Bulk-Power System, as compared approving 83 of the initial 107
Inadvertent Interchange, and Facility
to currently-effective Reliability Reliability Standards filed by NERC,
Interconnection Reliability Standards
Standards BAL–005–0.2b and FAC– including Reliability Standards BAL–
AGENCY: Federal Energy Regulatory 001–2, by clarifying and consolidating 005–0 (Automatic Generation Control),
Commission. existing requirements related to FAC–001–0 (Facility Interconnection
ACTION: Final rule. frequency control. In addition, the Requirements), and BAL–006–1
Commission determines that the revised (Inadvertent Interchange).8 In addition
SUMMARY: The Federal Energy Reliability Standards support more
Regulatory Commission (Commission) to approving Reliability Standards BAL–
accurate and comprehensive calculation 005–0 and BAL–006–1, the Commission
approves Reliability Standards BAL– of Reporting Area Control Error
005–1 (Balancing Authority Control) directed NERC to develop modifications
(Reporting ACE), by requiring timely to those Reliability Standards through
and FAC–001–3 (Facility reporting of an inability to calculate
Interconnection Requirements), Reporting ACE and by requiring 3 See Response of the North American Electric
submitted by the North American balancing authorities to maintain Corporation to Data Request, Docket No. RM16–13–
Electric Reliability Corporation, as well minimum levels of annual availability 000 (April 7, 2017).
as the retirement of Reliability of 99.5 percent for each balancing 4 16 U.S.C. 824o(d)(2).
Standards BAL–005–0.2b (Automatic authority’s system for calculating
5 Id. 824o(e).
6 Rules Concerning Certification of the Electric
Generation Control), FAC–001–2 Reporting ACE. Based on the Reliability Organization; and Procedures for the
(Facility Interconnection Requirements), information received in the comments Establishment, Approval, and Enforcement of
and BAL–006–2 (Inadvertent on the Notice of Proposed Rulemaking Electric Reliability Standards, Order No. 672, FERC
Interchange). in this proceeding,2 as well as in Stats. & Regs. ¶ 31,204, order on reh’g, Order No.
Pmangrum on DSK3GDR082PROD with RULES
672–A, FERC Stats. & Regs. ¶ 31,212 (2006).
DATES: This rule will become effective response to a subsequent data request 7 North American Electric Reliability Corp., 116
November 27, 2017. FERC ¶ 61,062, order on reh’g and compliance, 117
1 16 U.S.C. 824(o). FERC ¶ 61,126 (2006), aff’d sub nom. Alcoa, Inc. v.
FOR FURTHER INFORMATION CONTACT:
Syed Ahmad (Technical Information), 2 Balancing Authority Control, Inadvertent FERC, 564 F.3d 1342 (D.C. Cir. 2009).
Interchange, and Facility Interconnection 8 Mandatory Reliability Standards for the Bulk-
Office of Electric Reliability, Division Reliability Standards, Notice of Proposed Power System, Order No. 693, FERC Stats. & Regs.
of Reliability Standards, Federal Rulemaking, 81 FR 66,555 (Sept. 28, 2016), 156 ¶ 31,242 at PP 420, 439, and 680, order on reh’g,
Energy Regulatory Commission, 888 FERC ¶ 61,210 (2016) (NOPR). Order No. 693–A, 120 FERC ¶ 61,053 (2007).
VerDate Sep<11>2014 15:04 Sep 25, 2017 Jkt 241001 PO 00000 Frm 00013 Fmt 4700 Sfmt 4700 E:\FR\FM\26SER1.SGM 26SER1](https://thefederalregister.org/doc/82_FR_44908/page/1.svg)
![Federal Register / Vol. 82, No. 185 / Tuesday, September 26, 2017 / Rules and Regulations 44725
ACE and satisfying all remaining 15. NERC also stated that the suite of reliability standards, entities
Commission directives for Reliability requirements of Reliability Standard will not excessively depend on other
Standards BAL–005 and BAL–006.’’ 19 BAL–005–1 all have a ‘‘medium’’ entities in the Interconnection such that
Further, NERC maintained that violation risk factor, thereby addressing the purely economic issue that was
Reliability Standard BAL–005–1 is an the Commission’s directive to revise the addressed by BAL–006–2 becomes a
improvement over the currently- violation risk factor for Reliability reliability issue for a NERC Reliability
effective version, BAL–005–0.2b, Standard BAL–005–0, Requirement R17 Standard.29
because it ‘‘consolidates unnecessary or to ‘‘medium.’’ 26 Similarly, NERC 18. In order to address ‘‘any
repetitive Requirements and moves asserted that it met the directive to remaining or potential concerns with
certain metrics for calculating Reporting consider Xcel and FirstEnergy’s retirement of BAL–006–2,’’ NERC
ACE to the revised, proposed definition comments about the scope of proposed that the retirement become
of Reporting ACE.’’ 20 Among other Requirement R17, which set minimum effective only upon the Operating
things, NERC proposed to move accuracy requirements for time error Committee’s approval of an Inadvertent
requirements applicable to generator and frequency devices, by retiring part Interchange Guideline document.30
operators and transmission operators in of the currently-effective requirement NERC stated that the Inadvertent
currently-effective Reliability Standard and moving the minimum accuracy Interchange Guideline document was
BAL–005–0.2b, into a more appropriate requirements into Requirement R3 of based on a white paper developed by
Reliability Standard, explaining that Reliability Standard BAL–005–1. NERC the standard drafting team for
‘‘[a]s the purpose of FAC–001–3 is more maintained that this response has Reliability Standards BAL–005 and
commensurate with interconnection ‘‘streamlined obligations to use specific BAL–006, and maintained that it
responsibilities, interconnection frequency metering equipment that is provides an in-depth justification for
procedures contained in currently necessary for operation of [automatic why a NERC Reliability Standard is not
effective BAL–005–0.2b should be generation control (AGC)] and accurate necessary for inadvertent interchange.
included in proposed Reliability calculation of Reporting ACE, as this 19. With respect to the three proposed
Standard FAC–001–3.’’ 21 ensures that costs associated with definitions that remain at issue in this
13. In addition, NERC asserted that implementation are commensurate with proceeding, NERC explained that: (1)
Reliability Standard BAL–005–1 reliability benefit.’’ 27 ‘‘Automatic Generation Control’’ has
improves on the currently-effective 16. NERC proposed to move been revised to set forth a resource-
version of the Reliability Standard Requirement R3 from currently-effective neutral process for controlling demand
because proposed Requirement R2 Reliability BAL–006–2 into Reliability and resources; (2) ‘‘Pseudo-Tie’’ has
clarifies the performance expectations Standard BAL–005–1, but NERC been updated to reflect the use of the
for notification to reliability proposed to retire the rest of the term ‘‘Reporting ACE;’’ and (3)
coordinators when a balancing authority requirements of Reliability Standard ‘‘Balancing Authority’’ has been revised
is unable to calculate Reporting ACE for BAL–006–2 (Requirements R1, R2, R4, to more accurately describe a balancing
30 minutes or more,22 and Requirement and R5). NERC stated that the standard authority’s resource demand function.
R5 ‘‘introduces a new obligation . . . to drafting team determined that, aside
assure the availability of a BA’s system from Requirement R3, each of the C. NERC Supplemental Filing
used to calculate Reporting ACE,’’ requirements in Reliability Standard 20. On June 14, 2016, NERC
requiring a minimum availability of 99.5 BAL–006–2 are ‘‘energy accounting submitted supplemental information in
percent in each calendar year.23 standards’’ and/or are ‘‘administrative’’ support of its April 20, 2016 petition
14. NERC stated that the package of in nature, and should accordingly be (Supplemental Filing), to provide
revisions reflected in its petition retired.28 additional explanation and support for
addresses the outstanding directives 17. NERC acknowledged that the the retirement of Requirement R15 in
related to Reliability Standards BAL– Commission previously directed it to currently-effective Reliability Standard
005 and BAL–006 from Order No. 693. develop measures concerning the BAL–005–0.2b.31 In its Supplemental
Specifically, NERC stated that the title accumulation of large inadvertent Filing, NERC maintained that
of Reliability Standard BAL–005–1 has imbalances, based on the Commission’s Requirement R15 should be retired
been modified from Automatic concern that large imbalances may because the objectives of that
Generation Control to Balancing indicate an underlying problem. NERC requirement (i.e., to ensure the
Authority Control ‘‘to reflect the explained, however, that the continued operation of AGC and certain
connection to Reporting ACE and requirements of Reliability Standard data recording equipment during the
resource-neutral requirements.’’ 24 In BAL–001–2, which require balancing
addition, NERC indicated that it has loss of normal power supply) are being
authorities to maintain clock-minute addressed through other Reliability
revised the definition of Automatic ACE within the Balancing Authority
Generation Control to ensure a resource- Standards and requirements.
ACE Limit, as well as the requirements Specifically, NERC maintained that
neutral process for controlling demand of Reliability Standard BAL–003–1 and
and resources.25 proposed Reliability Standard BAL– 29 Id. at 27.
19 Id.
002–2, which require entities to restore 30 The Inadvertent Interchange Guideline
at 12. document was subsequently approved by the NERC
20 Id. at 13. Reporting ACE within predefined
Operating Committee, on December 13, 2016. See
21 Id. at 23. bounds, prevent any excessive NERC, Reliability Guideline: Inadvertent
22 Id. at 16. dependency on other entities. As NERC Interchange (Dec. 13, 2016, http://www.nerc.com/
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23 Id. at 19. explained in its petition: comm/OC/Reliability%20Guideline%20DL/
24 Id. at 13 (referencing Order No. 693, FERC Because entities are supporting Reliability_Guideline_Inadvertent_Interchange.pdf.
Stats. & Regs. ¶ 31,242 at P 404, and noting that the 31 As NERC notes in its Supplemental Filing,
frequency through this coordinated
Commission’s directive related to resource- NERC stated in its initial petition that
neutrality for regulating reserves is now moot, as ‘‘Requirements R2, R7 and R15 . . . are redundant,
26 Id. at 17; see also North American Elec.
Requirement R2 of Reliability Standard BAL–005– ineffective, and should be retired based on
0.2b, which required entities to maintain regulating Reliability Corp., 121 FERC ¶ 61,179, at P 58 (2007). Commission-approved Paragraph 81 Criteria.’’
reserves, has been retired). 27 NERC Petition at 18.
NERC Supplemental Filing at 1 (quoting NERC
25 Id. at n.39. 28 Id. at 25–26. Petition at 15).
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![Federal Register / Vol. 82, No. 185 / Tuesday, September 26, 2017 / Rules and Regulations 44727
other critical locations to ensure continuous NERC as fulfilling the same objectives as recording equipment during loss of the
operation of AGC and vital data recording current Requirement R15.46 normal power supply,’ ’’ thereby
equipment during loss of the normal power effectively replacing Requirement
supply.41 Comments
R15.51
31. The NOPR recognized that the 33. NERC, Trade Associations, and 35. NERC also maintains, as it did in
approach taken in Reliability Standard BPA maintain that Requirement R15 its petition, that Requirement R15
BAL–005–1, when combined with the should be retired without further should be retired, as it is redundant
requirements of other Reliability directive from the Commission, as the with broader obligations imposed on
Standards requiring entities to meet results-based requirements of Reliability balancing authorities, reliability
their functional obligations in the event Standard BAL–005–1 represent a more coordinators, and transmission
of the loss of a primary control center, comprehensive and superior approach. operators in Reliability Standard EOP–
was intended to be a more performance- NERC asserts that Reliability Standard 008–1. NERC contends that applicable
based approach to ensuring reliable EOP–008–1’s results-based or entities cannot comply with Reliability
operation of the bulk electric system.42 functionality-based approach is Standard EOP–008–1 without
However, the Commission expressed preferable overall,47 while Trade addressing power sources, although
concern that the objectives of Associations and other commenters NERC acknowledges that backup power
Requirement R15 would not be fully point out that the performance levels supply may not always be necessary to
met by the other Reliability Standards required in Reliability Standard BAL– support the required backup
and requirements NERC had identified, 005–1, Requirements R3 and R5, cannot functionality for control center
and in particular pointed out the be achieved without having critical functions. NERC further points out that
following potential gap: backup systems, including a backup the functionality obligations under
power supply that is routinely Requirement R1 of Reliability Standard
Requirement R15 of currently-effective maintained and tested.48 EOP–008–1 include the obligation to
Reliability Standard BAL–005–0.2b helps to
34. NERC contends that the existing address operation of vital equipment
ensure continued operability of balancing
authorities’ primary control centers, despite requirements of R15 focus on only one necessary for the collection of data to
the loss of normal power supply, without factor contributing to reliable control calculate Reporting ACE, assuming
evacuation to or activation of backup control center performance (i.e., backup power frequency metering equipment does not
centers. Thus, this provision appears to supplies), while Reliability Standard meet the minimum performance
provide additional robustness in the primary BAL–005–1 includes two performance requirement under new Requirement R3
control center and mitigates the risk of obligations ‘‘that subsume requirement of BAL–005–1.52 Overall, NERC
problems occurring in the transition to a R15.’’ 49 Specifically, NERC points out maintains that Requirements R1 and R7
secondary control center.43 that Requirement R3 requires balancing of Reliability Standard EOP–008–1 ‘‘are
The NOPR also pointed out that authorities to use frequency metering broader and clearer than Requirement
balancing authorities currently appear equipment for calculation of Reporting R15, by requiring [applicable entities] to
to be the only type of functional entity ACE that is available at least 99.95 have in place and test Operating Plans
explicitly required to have and to test percent annually, with minimum that address all elements (including any
adequate and reliable backup supply at accuracy of 0.001 Hz, and Requirement power sources) necessary for backup
critical locations, and that there is no R5 requires that each system used by a functionality.’’ 53
provision parallel to Requirement R15 balancing authority to calculate 36. Trade Associations maintain, on a
for reliability coordinators or Reporting ACE also be available at least more general level, that overly-
transmission operators.44 99.5 percent annually. NERC states that prescriptive requirements can be
these performance obligations, which burdensome and often ineffective. Trade
32. The NOPR requested comments provide no exceptions and include other Associations assert that in determining
from NERC and others on the retirement critical elements such as data whether there is adequate justification
of Requirement R15 of Reliability acquisition and communications, for the retirement of Requirement R15,
Standard BAL–005–0.2b, specifically frequency metering, and ACE the Commission should assess ‘‘whether
asking for comment on the benefits and calculation systems, contrast with [the new and remaining] requirements
potential burden of retaining existing Requirement R15, which have sufficient rigor to ensure [bulk
Requirement R15, and an explanation as focuses on only one component (power electric system] reliability through the
to why there is no parallel to supply) that contributes to continuous efforts to design, build and
Requirement R15 for reliability performance.50 In addition, NERC maintain systems to achieve the desired
coordinators and transmission maintains that new Requirement R3 level of performance.’’ 54 Trade
operators, including whether any reason ‘‘will ensure virtual ‘continuous Associations note that NERC’s
exists to distinguish between balancing operation of AGC and vital data Independent Expert Review Panel
authorities and other entities that may concluded that results-based Reliability
operate a control center or critical 46 Id. P 33. Standards would improve overall
facility.45 In addition, the Commission 47 NERC Comments at 8–9. reliability.55 Moreover, Trade
asked commenters to respond to six 48 Trade Associations Comments at 8; see also
Associations contend that the absence of
specific questions regarding the impact BPA Comments at 4.
a recommendation by the Independent
49 NERC Comments at 5; Trade Associations
of retiring Requirement R15; current Expert Review Panel to retire
Comments at 7–9.
practices with respect to backup power 50 NERC Comments at 6; see also Trade Requirement R15 as part of its 2013
supply at control centers; and the scope
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Associations Comments at 8 (asserting that report has no bearing on the question of
of other requirements identified by Reliability Standard BAL–005–1’s required
minimum performance level for calculating ACE 51 Id. at 6 (responding to NOPR Question 5).
41 See ‘‘provides real performance measures that far
NOPR, 156 ¶ 61,210 at P 26. 52 Id. at 8–9 (responding to NOPR Question 6).
42 Id. at 30.
exceed’’ the current requirements of BAL–005–0.2b,
53 Id. at 10.
and that ‘‘entities will not be able to ensure that
43 Id. P 31. 54 Trade Associations Comments at 6–7.
they can achieve this level of performance without
44 Id. P 30.
having critical backups,’’ including reliable backup 55 Id. at 7 (citing Standards Independent Expert
45 Id. P 32. power). Review Project; Chapter 5; Conclusions; at 18).
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![44728 Federal Register / Vol. 82, No. 185 / Tuesday, September 26, 2017 / Rules and Regulations
retirement now, given the NOPR’s questions about the definition be exploited to avoid installing a
improvements and enhancements of ‘‘critical location’’ as currently used sufficient level of redundancy in power
associated with Reliability BAL–005–1. in Reliability Standard BAL–005–0.2b, supplies.’’ 66 Appelbaum further states
Finally, Trade Associations raise a Trade Associations state that the ‘‘other the requirement for backup power
concern that the Commission may be critical locations’’ referenced in current design and testing should extend to
misconstruing Reliability Standard requirement R15 could refer to reliability coordinators, transmission
BAL–005–0.2b to address a reliability frequency metering equipment operators, and balancing authorities.67
concern beyond that intended for BAL– (including equipment outside the In sum, Appelbaum’s comments stress
005. Trade Associations maintain that control center), ancillary computer the overall need to impose specific
the BAL–005 Reliability Standards rooms with energy management systems
requirements, not merely functional
‘‘were written for the express purpose of (EMS) and EMS backups, and other data
obligations, related to backup power
ensuring [balancing authorities] can systems needed for ACE calculation.62
reliably and effectively calculate 39. With respect to the benefits and supply for critical systems.
Reporting ACE in order to maintain burdens of having backup power supply Response to Data Request
resource and demand balance within at certain locations, Idaho Power
their area of responsibility.’’ 56 acknowledges the benefits of having 41. In response to the Commission’s
37. As to what obligations would still backup power supply at primary control March 7 Data Request requesting
exist under Reliability Standard EOP– centers and other critical locations information on specific backup supply
008–1 if the backup power supply (including the benefit of ensuring practices from a sampling of registered
obligation in Requirement R15 was compliance with other reliability entities, NERC indicated that it
retired, NERC, Trade Associations, and requirements), and it states that the collected data from nine entities, all
all other commenters addressing the potential impact to reliability is no registered as a balancing authority,
question acknowledge that EOP–008–1 different for reliability coordinators or reliability coordinator, transmission
does not require applicable entities to transmission operators.63 Trade operator, or some combination of those
have backup power supply at the Associations maintain, however, that functional categories. NERC indicated
primary or the secondary control there is no need for additional
that the sample reflected some diversity
center.57 However, NERC asserts that requirements for reliability coordinators
as to size and type of entity and,
backup functionality obligations under and transmission operators related to
Requirement R1 of Reliability Standard backup power supply, because other therefore, the information ‘‘should be
EOP–008–1 ‘‘include the obligation to Reliability Standards require or reflective of current practices
address operation of vital equipment encourage certain levels of reliability throughout the industry.’’ 68
necessary for the collection of data to and functionality at these locations, as 42. NERC’s response indicates that all
calculate Reporting ACE if frequency evidenced by the historical lack of surveyed entities have backup power
metering equipment does not meet the problems with loss of EMS or loss of supplies at their primary and backup
minimum performance requirements power supply at control centers.64 control centers. A number of entities
under proposed R3 of BAL–005–1.’’ 58 40. Appelbaum primarily discusses responded that these backup supplies
By contrast, the Trade Associations the importance of backup power were installed prior to the effective date
acknowledge that Reliability Standard supplies in the context of of NERC’s mandatory Reliability
EOP–008–1 does not ensure continuous communications networks. Appelbaum Standards, and that they would not
operation of AGC and vital data points to a report issued by the Federal change their practices if the
recording equipment during the loss of Communications Commission in Commission approved the retirement of
normal power supply.59 response to the June 2012 ‘‘derecho’’
38. With respect to the NOPR’s Requirement R15 of Reliability Standard
event on communications networks and
questions on current practices regarding BAL–005–0.2b. NERC reported that the
services in Virginia. The report found
backup power supply, BPA and Idaho that communications were disrupted in surveyed entities have backup power
Power indicate that they have backup large part during that event because of supply at a number of other critical
power supply at all of their primary and avoidable planning and system failures, locations, which include data centers,
secondary control centers.60 Trade including the lack of functional backup corporate facilities, and operations
Associations state that most companies power, notably in central offices. centers (e.g., those housing cyber and
have many layers of backup to ensure Appelbaum contends, based on the physical security operations). NERC
continued control center functionality, derecho event, that the need to properly indicated that the surveyed entities have
which may include backup power, plan and design backup power is a two types of backup power supplies at
backup generators and uninterrupted critical component of reliability, and their control centers: backup generators
power supply.61 In response to the asks that the findings of the derecho and uninterruptible power supplies.
event be considered when the According to NERC, each of the
56 Id. at 7.
57 NERC
Commission assesses the functional surveyed entities reported that it
notes, for example, that Reliability
Standard EOP–008–1, Requirement R1 requires approach of Reliability Standard EOP– regularly tests its backup power
entities to address power and backup power as part 008–1.65 Appelbaum points out that supplies in accordance with written
of their emergency plans, but acknowledges that it ‘‘there is no specific mention of the procedures, the majority doing monthly
does not necessarily require backup power at either performance requirements of the backup
the primary or secondary control center. See also run testing. NERC reported that some
Trade Associations at 12; BPA at 3 (stating that power supply, the required design, or entities also perform switchover or
reference to an Industry Standard’’ in
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without R15, BPA ‘‘does not believe there is an transfer testing on a monthly basis,
enforceable requirement to have a backup power Reliability Standard EOP–008–1, which
supply to support frequency metering equipment’’). while others perform such testing at
58 NERC Comments at 8–9 (responding to NOPR
‘‘creates a degree of ambiguity that can longer intervals.
Question 6).
59 Trade Associations Comments at 16. 62 Id.at 14.
60 BPA Comments at 3; Idaho Power Comments at 63 Idaho Power Comments at 2. 66 Id.
3. 64 Trade Associations Comments at 9–11. 67 Id. at 5.
61 Trade Associations Comments at 14. 65 See Appelbaum Comments at 4. 68 NERC Response to Data Request at 3.
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![44730 Federal Register / Vol. 82, No. 185 / Tuesday, September 26, 2017 / Rules and Regulations
Annual
Average
Number of Number of Total burden hours
Data collection burden hours
respondents 72 responses per number of and total
and cost per
respondent responses annual
response 73 cost 74
FERC–725A, 725D & 725R1 (1) (2) (1) × (2) = (3) (4) (3) × (4) = (5)
(modifications in RM16–13–000)
Retirement of current standard BAL–006– BA ............................. ¥1 (annual) ................ ¥99 ¥1 ¥99
02 (FERC–725A). 99 .............................. ..................................... ........................ ¥$37.75 ¥$3,737.25
Total ...................................................... ................................... ..................................... ........................ ........................ 260
$19,055.90
Title: FERC–725A, Mandatory Internal Review: The Commission or procedural or that do not
Reliability Standards for the Bulk-Power reviewed the revised Reliability substantially change the effect of the
System; FERC–725D, Mandatory Standards and made a determination regulations being amended.77 The
Reliability Standards: FAC Reliability that its action is necessary to implement actions taken here fall within this
Standards; FERC–725R1, Mandatory section 215 of the FPA. The categorical exclusion in the
Reliability Standards: BAL Reliability Commission has assured itself, by Commission’s regulations.
Standards means of its internal review, that there
V. Regulatory Flexibility Act
is specific, objective support for the
Action: Revision to existing Certification
burden estimates associated with the
collections. information requirements. 51. The Regulatory Flexibility Act of
OMB Control No: 1902–0244 (FERC– 48. Interested persons may obtain 1980 (RFA) 78 generally requires a
725A); 1902–0247 (FERC–725D); TBD information on the reporting description and analysis of proposed
(FERC–725R1). requirements by contacting the rules that will have significant
Respondents: Business or other for- following: Federal Energy Regulatory economic impact on a substantial
profit and not-for-profit institutions. Commission, 888 First Street NE., number of small entities. The RFA does
Frequency of Responses: On-going. Washington, DC 20426 [Attention: Ellen not mandate any particular outcome in
Necessity of the Information: The Brown, Office of the Executive Director, a rulemaking. It only requires
Commission has reviewed the e-mail: DataClearance@ferc.gov, phone: consideration of alternatives that are
requirements of Reliability Standards (202) 502–8663, fax: (202) 273–0873]. less burdensome to small entities and an
BAL–005–1 and FAC–001–3 and has 49. For submitting comments agency explanation of why alternatives
made a determination that the concerning the collection(s) of were rejected. The Small Business
requirements of these Reliability information and the associated burden Administration (SBA) revised its size
Standards are necessary to implement estimate(s), please send your comments standard effective January 22, 2014 for
section 215 of the FPA. to the Commission and to the Office of electric utilities from a standard based
Management and Budget, Office of on megawatt hours to a standard based
72 The estimated number of respondents is based
Information and Regulatory Affairs, on the number of employees, including
on the NERC compliance registry as of April 7,
2017. According to the NERC compliance registry, Washington, DC 20503 [Attention: Desk affiliates. Under SBA’s size standards,
there are 64 U.S. balancing authorities (BA) in the Officer for the Federal Energy some balancing authorities, generation
Eastern Interconnection, 34 balancing authorities in Regulatory Commission, phone: (202) owners, and transmission owners will
the Western Interconnection and one balancing 395–4638, fax: (202) 395–7285]. For fall under the following category and
authority in the Electric Reliability Council of Texas
(ERCOT). security reasons, comments to OMB associated size threshold: Electric bulk
73 The burden hours and cost are based on the should be submitted by e-mail to: oira_ power transmission and control, at 500
hourly cost for an engineer for BAL–005–1, the submission@omb.eop.gov. Comments employees.79
average of the hourly cost for an engineer and submitted to OMB should include 52. As stated in the NOPR, the
clerical staff for FAC–001–3, and the hourly cost for Commission estimates a very limited,
clerical staff for changes associated with the
FERC–725A, FERC–725D, and FERC–
retirement of BAL–006–2. The estimates for cost per 725R1 and Docket Number RM16–13– one-time increase in recordkeeping and
hour are based on 2015 wage figures and derived 000. reporting burden on balancing
as follows: authorities due to the changes in the
$64.29/hour, the average salary plus benefits per IV. Environmental Analysis revised Reliability Standards, with no
engineer (from Bureau of Labor Statistics at https://
www.bls.gov/oes/current/naics2_22.htm);
50. The Commission is required to other increase in the cost of compliance.
$37.75/hour, the average salary plus benefits per prepare an Environmental Assessment Approximately 24 of the 99 balancing
information and record clerks (from Bureau of or an Environmental Impact Statement authorities are expected to meet the
Labor Statistics at https://www.bls.gov/oes/current/ for any action that may have a SBA’s definition for a small entity. In
naics2_22.htm). significant adverse effect on the human
74 Solely for purposes of determining the overall
addition, approximately 161 entities
annual cost of the record-keeping and reporting
environment.76 The Commission has will be subject annually to new record-
changes reflected in this Final Rule, the one-time categorically excluded certain actions keeping and reporting requirements
cost associated with administering the change to from this requirement as not having a under revised Reliability Standard
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Reliability Standard BAL–005–1 is being treated as significant effect on the human FAC–001–3, with no other increase in
an annual cost.
75 Per the NERC compliance registry, in the
environment. Included in the exclusion the cost of compliance.
United States there are 54 generator owners (GO) are rules that are clarifying, corrective,
77 18CFR 380.4(a)(2)(ii).
that are not also generator operators and 107
78 5
U.S.C. 601–612.
transmission owners (TO) that are not also 76 Regulations
Implementing the National
transmission operators, for a total of 161 new Environmental Policy Act of 1969, Order No. 486, 79 13 CFR 121.201, Sector 22 (Utilities), NAICS
entities in the United States subject to Reliability FERC Stats. & Regs., Regulations Preambles 1986– code 221121 (Electric Bulk Power Transmission and
Standard FAC–001–3, Requirement R3. 1990 ¶ 30,783 (1987). Control).
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![Federal Register / Vol. 82, No. 185 / Tuesday, September 26, 2017 / Rules and Regulations 44731
53. Even assuming that the one-time VI. Document Availability Commission’s Online Support at (202)
cost of compliance for administering the 55. In addition to publishing the full 502–6652 (toll free at 1–866–208–3676)
change from Reliability Standard BAL– text of this document in the Federal or e-mail at ferconlinesupport@ferc.gov,
005–0.2b to BAL–005–1 is an annual Register, the Commission provides all or the Public Reference Room at (202)
cost, and assuming that all of the interested persons an opportunity to 502–8371, TTY (202) 502–8659. Email
entities affected by the revisions to both view and/or print the contents of this the Public Reference Room at
BAL–005 and FAC–001 qualify as small document via the Internet through the public.referenceroom@ferc.gov.
entities, the estimated total annual cost Commission’s Home Page (http:// VII. Effective Date and Congressional
to the industry as a whole is minimal www.ferc.gov) and in the Commission’s Notification
($19,055.90), and the average cost per Public Reference Room during normal
These regulations are effective
affected entity is $118.36. business hours (8:30 a.m. to 5:00 p.m.
November 27, 2017. The Commission
54. According to SBA guidance, the Eastern time) at 888 First Street NE.,
has determined, with the concurrence of
determination of significance of impact Room 2A, Washington, DC 20426.
the Administrator of the Office of
‘‘should be seen as relative to the size 56. From the Commission’s Home
Information and Regulatory Affairs of
of the business, the size of the Page on the Internet, this information is
OMB, that this rule is not a ‘‘major rule’’
available on eLibrary. The full text of
competitor’s business, and the impact as defined in section 351 of the Small
this document is available on eLibrary
the regulation has on larger Business Regulatory Enforcement
in PDF and Microsoft Word format for
competitors.’’ 80 The Commission does Fairness Act of 1996.
viewing, printing, and/or downloading.
not consider the estimated burden to be To access this document in eLibrary, By the Commission.
a significant economic impact. As a type the docket number of this Issued: September 20, 2017
result, the Commission certifies that the document, excluding the last three Nathaniel J. Davis, Sr.,
revised Reliability Standards will not digits, in the docket number field. Deputy Secretary.
have a significant economic impact on 57. User assistance is available for
a substantial number of small entities. eLibrary and the Commission’s Web site Appendix
during normal business hours from the List of Commenters
Abbreviation Commenter
NERC .................................................................................................. North American Electric Reliability Corporation.
Trade Associations .............................................................................. Edison Electric Institute, American Public Power Association, and Large
Public Power Council.
BPA ..................................................................................................... Bonneville Power Administration.
Idaho Power ........................................................................................ Idaho Power Company.
Appelbaum .......................................................................................... Jonathan Appelbaum.
[FR Doc. 2017–20554 Filed 9–25–17; 8:45 am] decking. This temporary rule is FOR FURTHER INFORMATION CONTACT: If
BILLING CODE 6717–01–P necessary due to the amount of days you have questions on this interim rule,
requested by the bridge owner. The call or email Mr. Steven Fischer, Bridge
active deviation expires at the 180th Administrator, Thirteenth Coast Guard
DEPARTMENT OF HOMELAND day, and the Coast Guard does not District; telephone 206–220–7282, email
SECURITY approve back-to-back deviations. d13-pf-d13bridges@uscg.mil.
DATES: This temporary interim rule is SUPPLEMENTARY INFORMATION:
Coast Guard effective from 7 p.m. on September 27,
I. Table of Abbreviations
2017, through 7 p.m. on November 12,
33 CFR Part 117 2017. CFR Code of Federal Regulations
DHS Department of Homeland Security
[Docket No. USCG–2017–0474] Comments and related material must FR Federal Register
reach the Coast Guard on or before OMB Office of Management and Budget
RIN 1625–AA09
October 26, 2017. NPRM Notice of Proposed Rulemaking
Drawbridge Operation Regulation; ADDRESSES: You may submit comments § Section
Willamette River, Portland, OR or view documents mentioned in this U.S.C. United States Code
AGENCY: Coast Guard, DHS. preamble as being available in the
docket, go to http:// II. Background Information and
ACTION: Temporary interim rule with www.regulations.gov, type USCG–2017– Regulatory History
request for comments. 0474 in the ‘‘SEARCH’’ box and click On June 23, 2016, we published a
SUMMARY: The Coast Guard is modifying ‘‘SEARCH.’’ Click on Open Docket temporary deviation entitled
the operating schedule that governs the Folder on the line associated with this Drawbridge Operation Regulation;
Morrison Bridge across the Willamette rulemaking. Willamette River, Portland, OR, in the
River, mile 12.8, at Portland, Oregon. See the ‘‘Public Participation and Federal Register (81 FR 40813), where
Pmangrum on DSK3GDR082PROD with RULES
The temporary interim rule is necessary Request for Comments’’ portion of the we did not request comments. However,
to accommodate Multnomah County’s SUPPLEMENTARY INFORMATION section we conducted a public outreach in May
(bridge owner) unexpected extension of below for instructions on submitting 2016 and did not receive any objections.
time required to replace the bridge comments. No complaints have been submitted
80 U.S. Small Business Administration, A Guide Regulatory Flexibility Act, at 18 (May 2012), https:// www.sba.gov/sites/default/files/advocacy/rfaguide_
for Government Agencies How to Comply with the 0512_0.pdf.
VerDate Sep<11>2014 15:04 Sep 25, 2017 Jkt 241001 PO 00000 Frm 00021 Fmt 4700 Sfmt 4700 E:\FR\FM\26SER1.SGM 26SER1](https://thefederalregister.org/doc/82_FR_44908/page/9.svg)
Document Created: 2017-09-26 02:48:36
Document Modified: 2017-09-26 02:48:36
| 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 will become effective November 27, 2017. | |
| Contact | Syed Ahmad (Technical Information), Office of Electric Reliability, Division of Reliability Standards, Federal Energy Regulatory Commission, 888 First Street NE., Washington, DC 20426, Telephone: (202) 502-8718, [email protected] Julie Greenisen (Legal Information), Office of the General Counsel, Federal Energy Regulatory Commission, 888 First Street NE., Washington, DC 20426, Telephone: (202) 502-6362, [email protected] | |
| FR Citation | 82 FR 44723 |
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