82_FR_56413 82 FR 56186 - Coordination of Protection Systems for Performance During Faults and Specific Training for Personnel Reliability Standards

82 FR 56186 - Coordination of Protection Systems for Performance During Faults and Specific Training for Personnel Reliability Standards

DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission

Federal Register Volume 82, Issue 227 (November 28, 2017)

Page Range56186-56192
FR Document2017-25586

The Federal Energy Regulatory Commission (Commission) proposes to approve Reliability Standards PRC-027-1 (Coordination of Protection Systems for Performance During Faults) and PER-006-1 (Specific Training for Personnel) submitted by the North American Electric Reliability Corporation (NERC). The purpose of proposed Reliability Standard PRC- 027-1 is to maintain the coordination of protection systems installed to detect and isolate faults on bulk electric system elements, such that those protection systems operate in the intended sequence during faults. The purpose of proposed Reliability Standard PER-006-1 is to ensure that personnel are trained on specific topics essential to reliability to perform or support real-time operations of the bulk electric system. In addition, the Commission proposes to direct NERC to develop certain modifications to proposed Reliability Standard PRC-027- 1.

Federal Register, Volume 82 Issue 227 (Tuesday, November 28, 2017)
[Federal Register Volume 82, Number 227 (Tuesday, November 28, 2017)]
[Proposed Rules]
[Pages 56186-56192]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-25586]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

18 CFR Part 40

[Docket No. RM16-22-000]


Coordination of Protection Systems for Performance During Faults 
and Specific Training for Personnel Reliability Standards

AGENCY: Federal Energy Regulatory Commission, Department of Energy.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Federal Energy Regulatory Commission (Commission) proposes 
to approve Reliability Standards PRC-027-1 (Coordination of Protection 
Systems for Performance During Faults) and PER-006-1 (Specific Training 
for Personnel) submitted by the North American Electric Reliability 
Corporation (NERC). The purpose of proposed Reliability Standard PRC-
027-1 is to maintain the coordination of protection systems installed 
to detect and isolate faults on bulk electric system elements, such 
that those protection systems operate in the intended sequence during 
faults. The purpose of proposed Reliability Standard PER-006-1 is to 
ensure that personnel are trained on specific topics essential to 
reliability to perform or support real-time operations of the bulk 
electric system. In addition, the Commission proposes to direct NERC to 
develop certain modifications to proposed Reliability Standard PRC-027-
1.

DATES: Comments are due January 29, 2018.

ADDRESSES: Comments, identified by docket number, may be filed in the 
following ways:
     Electronic Filing through http://www.ferc.gov. Documents 
created electronically using word processing software should be filed 
in native applications or print-to-PDF format and not in a scanned 
format.
     Mail/Hand Delivery: Those unable to file electronically 
may mail or hand-deliver comments to: Federal Energy Regulatory 
Commission, Secretary of the Commission, 888 First Street NE., 
Washington, DC 20426.
    Instructions: For detailed instructions on submitting comments and 
additional information on the rulemaking process, see the Comment 
Procedures Section of this document.

FOR FURTHER INFORMATION CONTACT:
Juan Villar (Technical Information), Office of Electric Reliability, 
Division of Reliability Standards and Security, 888 First Street NE., 
Washington, DC 20426, Telephone: (772) 678-6496, [email protected].
Alan Rukin (Legal Information), Office of the General Counsel, Federal 
Energy Regulatory Commission, 888 First Street NE., Washington, DC 
20426, Telephone: (202) 502-8502, [email protected].

SUPPLEMENTARY INFORMATION: 
    1. Pursuant to section 215 of the Federal Power Act (FPA), the 
Commission proposes to approve proposed Reliability Standards PRC-027-1 
(Coordination of Protection Systems for Performance During Faults) and 
PER-006-1 (Specific Training for Personnel), which were submitted for 
approval by the North American Electric Reliability Corporation (NERC), 
the Commission-certified Electric Reliability Organization (ERO).\1\ As 
discussed below, however, the Commission also proposes to direct NERC 
to modify proposed Reliability Standard PRC-027-1 to require an initial 
protection system coordination study to ensure that applicable entities 
will perform (or have performed), as a baseline, a study demonstrating 
proper coordination of its protection systems. We propose to direct 
NERC to submit the modified Reliability Standard for Commission 
approval within 12 months following the effective date of a final rule 
in this proceeding.
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    \1\ 16 U.S.C. 824o.
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    2. The Commission also proposes to approve the associated violation 
risk factors, violation severity levels, implementation plans, and 
effective dates proposed by NERC for Reliability Standards PRC-027-1 
and PER-006-1. The Commission further proposes to approve the 
retirement of currently-effective Reliability Standard PRC-001-1.1(ii) 
(System Protection Coordination).\2\
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    \2\ The Commission approved Reliability Standard PRC-001-1.1(ii) 
on May 29, 2015. North American Electric Reliability Corporation, 
151 FERC ] 61,186 (2015).
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    3. In addition, the Commission proposes to approve new and revised 
definitions submitted by NERC for incorporation in the NERC Glossary of 
Terms Used in NERC Reliability Standards (``NERC Glossary'') for the 
following terms: (1) ``protection system coordination study;'' (2) 
``operational planning analysis;'' and (3) ``real-time assessment.''

[[Page 56187]]

I. Background

A. Section 215 and Mandatory Reliability Standards

    4. Section 215 of the FPA requires a Commission-certified ERO to 
develop mandatory and enforceable Reliability Standards, subject to 
Commission review and approval.\3\ Once approved, the Reliability 
Standards may be enforced by the ERO subject to Commission oversight or 
by the Commission independently.\4\ In 2006, the Commission certified 
NERC as the ERO pursuant to section 215 of the FPA.\5\
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    \3\ Id. 824o(c), (d).
    \4\ Id. 824o(e).
    \5\ North American Electric Reliability Corp., 116 FERC ] 
61,062, order on reh'g and compliance, 117 FERC ] 61,126 (2006), 
order on compliance, 118 FERC ] 61,190, order on reh'g, 119 FERC ] 
61,046 (2007), aff'd sub nom. Alcoa Inc. v. FERC, 564 F.3d 1342 
(D.C. Cir. 2009).
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B. Order No. 693

    5. On March 16, 2007, the Commission issued Order No. 693, 
approving 83 of the 107 Reliability Standards filed by NERC, including 
Reliability Standard PRC-001-1.\6\ In addition, the Commission directed 
NERC to develop modifications to Reliability Standard PRC-001-1 that:
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    \6\ Mandatory Reliability Standards for the Bulk-Power System, 
Order No. 693, FERC Stats. & Regs. ] 31,242, at PP 1433-1449, order 
on reh'g, Order No. 693-A, 120 FERC ] 61,053 (2007).

    (1) Correct the references for Requirements, and [sic] (2) 
include a requirement that upon the detection of failures in relays 
or protection system elements on the Bulk-Power System that threaten 
reliable operation, relevant transmission operators must be informed 
promptly, but within a specified period of time that is developed in 
the Reliability Standards development process, whereas generator 
operators must also promptly inform their transmission operators; 
and (3) clarifies that, after being informed of failures in relays 
or protection system elements that threaten reliability of the Bulk-
Power System, transmission operators must carry out corrective 
control actions, i.e., return a system to a stable state that 
respects system requirements as soon as possible and no longer than 
30 minutes after they receive notice of the failure.\7\
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    \7\ Order No. 693, FERC Stats. & Regs. ] 31,242 at P 1449.
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C. NERC Petition and Proposed Reliability Standards PRC-027-1 and PER-
006-1

    6. On September 2, 2016, NERC submitted a petition seeking 
Commission approval of proposed Reliability Standards PRC-027-1 and 
PER-006-1.\8\ NERC states that the proposed Reliability Standards, new 
and revised NERC Glossary terms, and the retirement of Reliability 
Standard PRC-001-1.1(ii) satisfy the Commission's criteria in Order No. 
672 and are just, reasonable, not unduly discriminatory or 
preferential, and in the public interest.\9\ NERC explains that the 
intent of the proposed Reliability Standards and changes to the NERC 
Glossary are to maintain the coordination of protection systems 
installed to detect and isolate faults on bulk electric system elements 
and require registered entities to provide training to their relevant 
personnel on protection systems and remedial action schemes. NERC 
asserts that the proposed Reliability Standards are an improvement over 
currently-effective Reliability Standard PRC-001-1.1(ii) and will 
ensure that appropriate personnel are trained on protection systems and 
that protection systems are appropriately studied, coordinated, and 
monitored.
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    \8\ Proposed Reliability Standards PRC-027-1 and PER-006-1 are 
not attached to this Notice of Proposed Rulemaking. The proposed 
Reliability Standards are available on the Commission's eLibrary 
document retrieval system in Docket No. RM16-22-000 and are posted 
on the NERC Web site, http://www.nerc.com.
    \9\ NERC Petition at 10.
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1. Proposed Reliability Standard PER-006-1
    7. NERC states that proposed Reliability Standard PER-006-1 
requires generator operators to use a systematic approach to develop 
and implement training for dispatch personnel at centrally-located 
dispatch centers.\10\ NERC explains that proposed Reliability Standard 
PER-006-1 will also cover plant personnel who are responsible for real-
time control of a generator. NERC maintains that it is appropriate to 
train plant personnel [in] the functionality of protection systems and 
remedial action schemes. NERC observes that proposed Reliability 
Standard PER-006-1 replaces the phrase ``purpose and limitations'' used 
in currently-effective Reliability Standard PRC-001-1(ii) with the 
phrase ``operational functionality'' to clearly identify the objective 
of the training.\11\ NERC also observes that proposed Reliability 
Standard PER-006-1 replaces the phrase ``applied in its area'' in 
Reliability Standard PRC-001-1.1(ii) with the phrase ``that affect the 
output of the generating facility(ies) it operates'' to properly tailor 
the scope of the required training. NERC notes that proposed 
Reliability Standard PER-006-1 does not specify a periodicity for the 
required training.
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    \10\ Id. at 13.
    \11\ Id. at 15.
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2. Proposed Reliability Standard PRC-027-1
    8. NERC asserts that proposed Reliability Standard PRC-027-1:

provides a clear set of Requirements that obligate entities to (1) 
implement a process for establishing and coordinating new or revised 
Protection System settings, and (2) periodically study Protection 
System settings that could be affected by incremental changes in 
Fault current to ensure the Protection Systems continue to operate 
in their intended sequence.\12\
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    \12\ Id. at 26.

    According to NERC, proposed Reliability Standard PRC-027-1, 
Requirement R1 mandates that each transmission owner, generator owner, 
and distribution provider establish a process for developing new and 
revised protection system settings for bulk electric system 
elements.\13\
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    \13\ Id. at 27.
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    9. NERC states that proposed Reliability Standard PRC-027-1, 
Requirement R2 mandates that every six years, applicable entities must 
either: (1) Perform a protection system coordination study to determine 
whether the protection systems continue to operate in the intended 
sequence during faults; (2) compare present fault current values to an 
established fault current baseline and, only if the comparison 
identifies a 15 percent or greater deviation in fault current values 
(either three phase or phase to ground) at a bus to which the bulk 
electric system is connected, perform a protection system coordination 
study; or (3) use a combination of options 1 and 2.\14\
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    \14\ Id. at 26.
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    10. NERC explains that proposed Reliability Standard PRC-027-1, 
Requirement R3 will require applicable entities to use the process 
established under proposed Reliability Standard PRC-027-1, Requirement 
R1 for the development of any new or revised protection system 
settings.
3. Proposed Retirement of Reliability Standard PRC-001-1.1(ii)
    11. NERC states that Reliability Standard PRC-001-1.1(ii) includes 
six requirements that are either addressed by Reliability Standards 
approved by the Commission or by the proposed Reliability Standards. 
Specifically, NERC explains that Reliability Standard PRC-001-1.1(ii), 
Requirement R1 has been partially replaced by currently-effective 
Reliability Standards PER-003-1 and PER-005-2. NERC continues that 
proposed Reliability Standard PER-006-1 and the proposed revised 
definitions of operational planning

[[Page 56188]]

analysis and real-time assessment will replace the remaining portions 
of Reliability Standard PRC-001-1.1(ii), Requirement R1. NERC asserts 
that Reliability Standard PRC-001-1.1(ii), Requirement R2 has been 
addressed by Reliability Standards IRO-001-4, IRO-008-2, IRO-010-2, 
TOP-001-3, and TOP-003-3, which the Commission approved in Order No. 
817.\15\ NERC states that Reliability Standard PRC-001-1.1(ii), 
Requirements R3 and R4 will be replaced with proposed Reliability 
Standard PRC-027-1. NERC also explains that Reliability Standard PRC-
001-1.1(ii), Requirement R5 has been replaced with several Reliability 
Standards developed after Reliability Standard PRC-001-1(ii) became 
effective.\16\ NERC further states that Reliability Standard PRC-001-
1.1(ii), Requirement R6 has been replaced with Reliability Standards 
TOP-001-3 and TOP-003-3.
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    \15\ Id. at 5 (citing Transmission Operations Reliability 
Standards and Interconnection Reliability Operations and 
Coordination Reliability Standards, Order No. 817, 153 FERC ] 61,178 
(2015)).
    \16\ Id. at 6.
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II. Discussion

    12. Pursuant to section 215(d)(2) of the FPA, we propose to approve 
proposed Reliability Standards PER-006-1 and PRC-027-1 as just, 
reasonable, not unduly discriminatory or preferential, and in the 
public interest, as both proposed Reliability Standards improve upon 
currently-effective Reliability Standard PRC-001-1.1(ii) in important 
ways.\17\ Specifically, proposed Reliability Standard PRC-027-1 does so 
by (1) modifying the applicability section to include the appropriate 
functional entity types with the responsibilities, resources, and skill 
sets to conduct the studies required to coordinate protection systems, 
and (2) listing the protection system functions on all bulk electric 
system elements that require coordination. Proposed Reliability 
Standard PER-006-1, along with existing formal training requirements in 
the PER group of Reliability Standards, also improves upon Reliability 
Standard PRC-001-1.1(ii), Requirement R1 by ensuring that the necessary 
personnel are familiar with and understand the purpose and limitations 
of protection systems schemes while providing more precise and 
auditable requirements. However, proposed Reliability Standard PRC-027-
1, Requirement R2, Option 2 does not appear to ensure coordination of 
all bulk electric system elements with protection system functions. 
Accordingly, pursuant to section 215(d)(5) of the FPA, we propose to 
direct that NERC develop modifications to proposed Reliability Standard 
PRC-027-1 that address our concern regarding this gap, as discussed 
below.
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    \17\ 16 U.S.C. 824o(d)(2).
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    13. In addition, we propose to approve NERC's associated violation 
risk factors, violation severity levels, implementation plans, and 
effective dates. We also propose to approve the revised definitions for 
inclusion in the NERC Glossary. Further, we propose to approve the 
retirement of Reliability Standard PRC-001-1.1(ii), as requested by 
NERC.
    14. Pursuant to 215(d)(5) of the FPA, we propose to direct that 
NERC develop modifications to proposed Reliability Standard PRC-027-1 
addressing our concern that applicable entities that choose Requirement 
R2, Option 2 perform (or have already performed) an initial baseline 
study demonstrating proper coordination of their protection systems. 
Any additional protection system coordination studies would be 
necessary only if an applicable entity is confronted with 15 percent or 
greater fault current deviations from the prior baseline study amounts, 
as currently proposed in Reliability Standard PRC-027-1, Requirement 
R2, Option 2. We propose to direct NERC to submit the modified 
Reliability Standard within 12 months following the effective date of a 
final rule in this proceeding.
    15. Proposed Reliability Standard PRC-027-1, Requirement R2 does 
not require an initial protection system coordination study if an 
applicable entity elects Option 2. Unlike Option 1, which requires 
performance of protection system coordination studies every six years, 
Option 2 requires applicable entities to ``[c]ompare present Fault 
current values to an established Fault current baseline and perform a 
Protection System Coordination Study when the comparison identifies a 
15 percent or greater deviation.'' The proposed Reliability Standard 
and NERC's petition do not indicate that the ``Fault current baseline'' 
must be established through an initial protection system coordination 
study. Instead, NERC's petition states that the baseline must be 
established ``by the effective date of the standard based on short-
circuit studies.'' \18\ The proposed Reliability Standard provides that 
``the initial Fault current baseline(s) shall be established by the 
effective date of this Reliability Standard and updated each time a 
Protection System Coordination Study is performed,'' but this language 
does not require establishing the ``initial Fault current baseline'' 
through an initial protection system coordination study.\19\ NERC's 
petition reinforces this understanding, as noted above, by explicitly 
allowing the use of short-circuit studies to establish the initial 
Fault current baseline.
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    \18\ NERC Petition at 36 n.35.
    \19\ Proposed Reliability Standard PRC-027-1, Requirement R2, 
Option 2 n.1. Footnote 1 further states that if an ``initial 
baseline was not established by the effective date of this 
Reliability Standard because of the previous use of an alternate 
option or the installation of a new BES Element, the entity may 
establish the baseline by performing a Protection System 
Coordination Study'' (emphasis added). Id.
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    16. While they are related terms, we understand there to be a 
difference between short-circuit studies and protection system 
coordination studies. NERC defines protection system coordination study 
as an ``analysis to determine whether Protection Systems operate in the 
intended sequence during Faults.'' \20\ By comparison, proposed 
Reliability Standard PRC-027-1 explains that a short-circuit study is 
``an analysis of an electrical network that determines the magnitude of 
the currents flowing in the network during an electrical fault . . . 
[and] are used as the basis for protection device coordination 
studies.'' \21\ Therefore, while short-circuit studies are inputs to 
protection system coordination studies, it appears that a short-circuit 
study differs in scope from a protection system coordination study. 
Based on this record, it would be incorrect to conclude that proposed 
Reliability Standard PRC-027-1, Requirement R2, Options 1 and 2 afford 
the same level of protection system coordination because the former 
requires a protection system coordination study while the latter does 
not.
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    \20\ NERC Petition, Exhibit A-3, Proposed Definitions. This 
definition is consistent with the definition of coordination of 
protection in IEEE Std. C37.113-1999 (stating that the ``process of 
choosing settings or time delay characteristics of protective 
devices, such that operation of the devices will occur in a 
specified order to minimize customer service interruption and power 
system isolation due to a power system disturbance'').
    \21\ Proposed Reliability Standard PRC-027-1, Supplemental 
Material at 8.
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    17. While we generally support permitting flexibility in the 
Reliability Standards to achieve required performance goals, the 
possibility that some bulk electric system elements may never undergo a 
protection system coordination study raises reliability concerns. In 
past serious Bulk-Power System events, mis-coordination was a 
contributing factor to misoperations and outages. For example, the 
Arizona Southern California September 8, 2011 Outage Report identified 
an instance

[[Page 56189]]

where a transmission owner did not perform a protection system 
coordination study prior to the implementation of a protection 
system.\22\ The 2011 Outage Report stated that this omission negatively 
affected the reliable operation of the Bulk-Power System during the 
2011 event.\23\
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    \22\ Arizona Southern California September 8, 2011 Outage Report 
at 101-103, https://www.ferc.gov/legal/staff-reports/04-27-2012-ferc-nerc-report.pdf.
    \23\ Id. at 100-102.
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    18. Over the past eleven years, several NERC reports have addressed 
the importance of protection system coordination to Bulk-Power System 
reliability. Proposed Reliability Standard PRC-027-1 addresses some of 
the issues raised in these reports; but without requiring an initial 
protection system coordination study, the proposed Reliability Standard 
does not address all of them. In 2006, for example, the NERC System 
Protection Control Task Force assessed Reliability Standard PRC-
001.\24\ The report recommended requiring the coordination of all 
existing protection systems.\25\
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    \24\ NERC SPCTF Assessment of Standard PRC-001-0--System 
Protection Coordination (2006), http://www.nerc.com/pa/Stand/Project200706SystemProtectionCoordinationDL/NERC_SPCTF_Assessment_of_Standard_PRC.pdf.
    \25\ Id. at 3-4.
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    19. In 2009, in a letter from the NERC President to the NERC Board 
of Trustees and stakeholders, NERC identified generation and 
transmission mis-coordination as responsible for 30 percent of the 
misoperations that occurred between 2005 and 2008.\26\ The 2009 letter 
stated that mis-coordination between generation and transmission 
protection systems ``has caused two significant system disturbances in 
the past two years, and resulted in the unnecessary loss of generation 
during seven additional disturbances in that timeframe.'' \27\ The 
letter explained that the 2009 NERC System Protection Initiative would 
initially focus on the area of protection system coordination.\28\
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    \26\ NERC Letter from Rick Sergel, NERC President, Regarding 
System Protection Initiative at Figure 2 (April 24, 2009).
    \27\ Id. at 1.
    \28\ Id. at 1-2.
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    20. In 2013, NERC issued a Misoperations Report prepared by the 
Protection System Misoperations Task Force.\29\ The Misoperations 
Report identified ``ways to potentially reduce the amount of future 
misoperations'' and concluded that ``[m]isoperations due to setting 
errors can potentially be reduced.'' \30\ The identified techniques to 
reduce incorrect settings, included: Peer reviews, increased training, 
more extensive fault studies, standard templates for setting standard 
schemes using complex relays, and periodic review of existing settings 
when there is a change in system topography.\31\ In the 
ReliabilityFirst region, NERC identified a category of misoperations 
caused by ``Engineering/Design Issues,'' which specifically included 
setting mis-coordination.\32\ This category of misoperations was one of 
the three most common causes of misoperations for above 200 kV 
facilities within the ReliabilityFirst region.\33\ The positive impact 
on Bulk-Power System reliability of reducing misoperations because of 
``Incorrect setting/logic/design errors'' is found in NERC's 2015 
Analysis of System Protection Misoperations:
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    \29\ NERC Misoperations Report (2013), http://www.nerc.com/comm/PC/Protection%20System%20Misoperations%20Task%20Force%20PSMTF%202/PSMTF_Report.pdf.
    \30\ Id. at 3.
    \31\ Id.
    \32\ Id. at 14-15. The 2013 Misoperations Report elaborated that 
the ``Engineering/Design Issues'' category included:
    Incorrect short circuit values and coordination errors. The 
incorrect short circuit values included outdated or incorrect data 
used to calculate relay settings. The coordination errors in these 
cases all involved pilot protection either of insufficient carrier 
blocking trip delays or of improper choice of ground pickup values 
used in a blocking scheme. Id. at 15.
    \33\ Id. at 14.

    The State of Reliability 2015 report found that protection 
system misoperations continued to be a significant contributor to 
automatic transmission outage severity. In general, transmission 
system events with protection system misoperations were more 
impactful than other transmission events. They were also a 
significant contributor to transmission outage severity, indicating 
that a reduction in protection system misoperations would lead to an 
improvement in system reliability.\34\
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    \34\ NERC, Analysis of System Protection Misoperations at 1 
(Dec. 2015) (citations omitted), http://www.nerc.com/pa/RAPA/PA/Performance%20Analysis%20DL/2015_Analysis_of_System_Protection_Misoperations_Final.pdf (finding 
that 31 percent of all misoperations were due to ``Incorrect 
setting/logic/design errors'').

    21. In 2014, a NERC ``lessons learned'' document on ``Generation 
Relaying--Underfrequency Protection Coordination'' identified a 2014 
incident where underfrequency relay trip settings were installed on the 
system unnecessarily and were not coordinated with a generator's relay 
trip setting.\35\ The document explained that ``[u]nintended generator 
tripping during an underfrequency event can exacerbate the condition.'' 
\36\ The document also stated that ``generator relay protection should 
be coordinated with all auxiliary power system relaying with specific 
regard to time-delay settings'' in order to ensure reliable generator 
operation.\37\
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    \35\ NERC, Lesson Learned, Generation Relaying--Underfrequency 
Protection Coordination (2014), http://www.nerc.com/pa/rrm/ea/Lessons%20Learned%20Document%20Library/LL20140601_Generation_Relaying_Underfrequency_Protection_Coordination_final.pdf.
    \36\ Id.
    \37\ Id.
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    22. The 2016 State of Reliability Report noted that while 
protection system misoperations declined in 2015, misoperations showed 
a ``statistically significant positive correlation with transmission 
outage severity and show[ed] a higher relative transmission risk.'' 
\38\ Misoperations showed the strongest correlation of the factors 
considered. In addition, the 2016 State of Reliability Report 
identified that ``over 40 percent of the incorrect setting/logic/design 
misoperations were due to the miss coordination [sic] of ground 
overcurrent settings'' found by ERCOT.\39\
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    \38\ 2016 State of Reliability Report at 17, http://www.nerc.com/pa/RAPA/Pages/default.aspx.
    \39\ Id. at 166.
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    23. The 2017 State of Reliability Report recognized the 
significance of protection system misoperations to Bulk-Power System 
reliability by observing that ``[p]rotection system misoperations 
should remain an area of focus as it continues to be one of the largest 
contributors to the severity of transmission outages.'' \40\
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    \40\ 2017 State of Reliability Report at 2.
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    24. For the reasons discussed above, we propose to direct that NERC 
develop modifications to proposed Reliability Standard PRC-027-1 to 
address our concern by requiring that applicable entities perform an 
initial protection coordination study under Requirement R2, Option 2. 
We propose that applicable entities would have six years from the 
effective date of a modified Reliability Standard to complete the 
analysis. An applicable entity could use pre-existing protection system 
coordination studies to satisfy the proposed requirement provided it 
was reasonable (i.e., no intervening system changes that would render 
the earlier work obsolete). After conducting the initial protection 
system coordination study, subsequent protection system coordination 
studies would only be required when an applicable entity is confronted 
with 15 percent or greater fault current deviations from the prior 
baseline study amounts, as currently proposed in Reliability Standard 
PRC-027-1, Requirement R2, Option 2. We seek comments on this proposal.
    25. Separately, we seek comment from NERC and other interested 
entities explaining the technical basis for

[[Page 56190]]

employing a 15 percent deviation threshold in proposed Reliability 
Standard PRC-027-1, Requirement R2, Option 2. We seek to better 
understand the basis for this threshold to ensure an adequate record in 
the proceeding on this matter.

III. Information Collection Statement

    26. The collection of information addressed in this Notice of 
Proposed Rulemaking is subject to review by the Office of Management 
and Budget (OMB) under section 3507(d) of the Paperwork Reduction Act 
of 1995.\41\ OMB's regulations require approval of certain information 
collection requirements imposed by agency rules.\42\ Upon approval of a 
collection(s) of information, OMB will assign an OMB control number and 
an expiration date. Respondents subject to the filing requirements of a 
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.
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    \41\ 44 U.S.C. 3507(d).
    \42\ 5 CFR 1320.11.
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    27. The Commission will submit the information collection 
requirement to OMB for its final review and approval. We solicit public 
comments on the need for this information, whether the information will 
have practical utility, the accuracy of the burden estimates, ways to 
enhance the quality, utility, and clarity of the information to be 
collected or retained, and any suggested methods for minimizing 
respondents' burden, including the use of automated information 
techniques.
    28. The information collection requirements in this Notice of 
Proposed Rulemaking in Docket No. RM16-22-000 are associated with FERC-
725A,\43\ FERC-725G6,\44\ and FERC-725Y, as discussed below.
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    \43\ FERC-725A (OMB Control No. 1902-0244) currently includes 
the information collection requirements associated with Reliability 
Standard PRC-001-1.1(ii), which is proposed for retirement. Only one 
item per OMB Control No. may be pending OMB review at a time, and an 
unrelated item affecting FERC-725A is pending OMB review. We are 
providing estimates of the burden reduction related to FERC-725A for 
review and comment. However, to submit this Notice of Proposed 
Rulemaking timely to OMB, the Commission is being conservative and 
not reducing the burden estimates associated with FERC-725A at this 
time.
    \44\ The information collection requirements related to proposed 
Reliability Standard PRC-027-1 would normally be included in FERC-
725G (OMB Control No. 1902-0252). However, only one item per OMB 
Control No. may be pending OMB review at a time, and an unrelated 
item affecting FERC-725G is pending OMB review. For this Notice of 
Proposed Rulemaking and the related submittal to OMB, we use a 
placeholder information collection no. of FERC-725G6.
---------------------------------------------------------------------------

    29. Public Reporting Burden: The number of respondents below is 
based on an examination of the NERC compliance registry on April 7, 
2017, for transmission owners, generator owners, generator operators, 
and distribution providers within the United States and an estimate of 
how many entities from that registry will be affected by the 
Reliability Standards proposed for adoption and implementation. At the 
time of Commission review of proposed Reliability Standards PRC-027-1 
and PER-006-1, 334 transmission owners, 913 generator owners, 875 
generator operators, and 365 distribution providers in the United 
States were registered in the NERC compliance registry. However, under 
NERC's compliance registration program, entities may be registered for 
multiple functions, so these numbers incorporate some double counting. 
We note that many generation sites share a common generator owner or 
generator operator. The following table provides the estimated proposed 
annual burden and cost related to information collection requirements 
in this Notice of Proposed Rulemaking.\45\
---------------------------------------------------------------------------

    \45\ TO = transmission owner; TOP = transmission operator; GO = 
generator owner; GOP = generator operator; DP = distribution 
provider; and BA = balancing authority.

                             Proposed Changes in the NOPR in Docket No. RM16-22-000
----------------------------------------------------------------------------------------------------------------
                                                  Annual
                                                 number of   Total number    Average burden      Annual burden
    Respondent category and        Number of     responses     of annual     hours and  cost    hours  and total
        requirement \46\          respondents       per        responses    per response \47\     annual cost
                                                respondent                                       (rounded) \48\
                                          (1)           (2)   (1) * (2) =  (4)...............  (3) * (4) = (5)
                                                                      (3)
----------------------------------------------------------------------------------------------------------------
                       FERC-725G6 (Covering Proposed Reliability Standard PRC-027-1) \49\
----------------------------------------------------------------------------------------------------------------
TO; Reporting Reqs. R1, R2, &             334             1           334  60 hrs.; $3,941.40  20,040 hrs.;
 R3.                                                                                            $1,316,428.
TO; Recordkeeping Reqs.........           334             1           334  40 hrs.; $1,565.60  13,360 hrs.;
                                                                                                $522,910.
GO; Reporting Reqs. R1, R2, &             913             1           913  10 hrs.; $656.90..  9,130 hrs.;
 R3.                                                                                            $599,750.
GO; Recordkeeping Reqs.........           913             1           913  10 hrs.; $391.40..  9,130 hrs.;
                                                                                                $357,348.
DP; Reporting Reqs R1, R2, & R3           365             1           365  10 hrs.; $656.90..  3,650 hrs.;
                                                                                                $239,769.
DP; Recordkeeping Reqs.........           365             1           365  10 hrs.; $391.40..  3,650 hrs.;
                                                                                                $142,861.
                                                                                              ------------------
    Sub-Total for Reporting      ............  ............  ............  ..................  32,820 hrs.;
     Reqs. for FERC-725G6.                                                                      $2,155,947.
    Sub-Total for Recordkeeping  ............  ............  ............  ..................  26,140 hrs.;
     Reqs. for FERC-725G6.                                                                      $1,023,119.
                                                                                              ------------------
        Total Proposed Increase  ............  ............  ............  ..................  58,960 hrs.;
         for FERC-725G6.                                                                        $3,179,066.
----------------------------------------------------------------------------------------------------------------
                          FERC-725Y (Covering Proposed Reliability Standard PER-006-1)
----------------------------------------------------------------------------------------------------------------
GOP; Reporting Req. R1.........           875             1           875  5 hrs.; $328.45...  4,375 hrs.;
                                                                                                $287,394.
GOP; Recordkeeping Req.........           875             1           875  10 hrs.; $391.40..  8,750 hrs.;
                                                                                                $342,475.
Total Proposed Increase for      ............  ............  ............  ..................  13,125 hrs.;
 FERC-725Y.                                                                                     $629,869.
----------------------------------------------------------------------------------------------------------------
         Reductions to FERC-725A (Covering Proposed Retirement of Reliability Standard PRC-001-1.1) \50\
----------------------------------------------------------------------------------------------------------------
GOP; Reporting Req.............           875             1           875  40 hrs.; $2,627.60  35,000 hrs.;
                                                                                                $2,299,150.
GOP; Recordkeeping Req.........           875             1           875  50 hrs.; $1,957.00  43,750 hrs.;
                                                                                                $1,712,375.

[[Page 56191]]

 
TOP; Reporting Req.............           177             1           177  60 hrs.; $3,941.40  10,620 hrs.;
                                                                                                $697,628.
TOP; Recordkeeping Req.........           177             1           177  70 hrs.; $2,739.80  12,390 hrs.;
                                                                                                $484,945.
BA; Reporting Req..............            99             1            99  32 hrs.; $2,102.08  3,168 hrs.;
                                                                                                $208,106.
BA; Recordkeeping Req..........            99             1            99  20 hrs.; $782.80..  1,980 hrs.;
                                                                                                $77,497.
    Reduction Sub-Total          ............  ............  ............  ..................  48,788 hrs.;
     Reporting Reqs. for FERC-                                                                  $3,204,884.
     725A.
                                                                                              ------------------
    Reduction Sub-Total          ............  ............  ............  ..................  58,120 hrs.;
     Recordkeeping Reqs. for                                                                    $2,274,817.
     FERC-725A.
                                                                                              ------------------
    Reduction, Sub-Total for     ............  ............  ............  ..................  106,908 hrs.;
     FERC-725A.                                                                                 $5,479,701
                                                                                                (reduction).
                                                                                              ------------------
        NET TOTAL REDUCTION FOR  ............  ............  ............  ..................  34,823 hrs.;
         PROPOSED CHANGES IN                                                                    $1,670,766
         NOPR IN RM16-22-000.                                                                   (reduction).
----------------------------------------------------------------------------------------------------------------

    Titles: FERC-725G6 (Mandatory Reliability Standard PRC-027-1) and 
FERC-725Y (Mandatory Reliability Standards: Operations Personnel 
Training (PER-005-2 and PER-006-1).
---------------------------------------------------------------------------

    \46\ For each Reliability Standard, the Measure shows the 
acceptable evidence for the associated Reporting Requirement, and 
the Compliance section details the related Recordkeeping 
Requirement.
    \47\ Based on data from the Bureau of Labor Statistics, the 
average hourly cost (wages plus benefits) is $65.69/hour for an 
engineer, and $39.14/hour for a record clerk. The hourly cost for an 
engineer is used for reporting requirements; the hourly cost for a 
record clerk is used for recordkeeping requirements.
    \48\ For display purposes, the cost figures in column 5 have 
been rounded.
    \49\ Some of the reporting requirements are required at least 
every six calendar years. In this table, the Commission assumes that 
respondents might work on some of their elements each year; the 
annual burden estimate shown is one sixth of the burden associated 
with one complete six-year cycle. For example, for each transmission 
owner: (a) the annual reporting burden associated with Requirements 
R1, R2, and R3 is shown as 60 hours per year, and (b) the burden for 
the six-year cycle would be six times that, or a total of 360 hours.
    \50\ The estimates for average annual burden hours per response 
are based on Order No. 693, FERC Stats. & Regs. ] 31,242 at PP 1906, 
1907. The numbers of respondents and estimated hourly costs are 
based on current figures.
---------------------------------------------------------------------------

    Action: Revision to existing collections and proposed new 
information collection.
    OMB Control Nos.: To be determined (FERC-725G6) \51\ and 1902-0279 
(FERC-725Y).
---------------------------------------------------------------------------

    \51\ OMB will assign a Control No. when it issues a decision.
---------------------------------------------------------------------------

    Respondents: Business or other for profit, and not for profit 
institutions.
    Frequency of Responses: Annual recordkeeping and reporting 
requirements, with some reporting requirements being at least once 
every six years.
    Necessity of the Information: Proposed Reliability Standards PRC-
027-1 and PER-006-1 set forth requirements for coordination of 
protection systems and personnel training on specific topics essential 
to reliability. The Commission proposes to approve proposed Reliability 
Standards PRC-027-1 and PER-006-1, which will replace Commission-
approved Reliability Standard PRC-001-1.1(ii). The proposed Reliability 
Standards PRC-027-1 and PER-006-1 improve upon the existing Reliability 
Standard PRC-001-1.1(ii) because the proposed Reliability Standards 
assign responsibilities to entities with more appropriate resources and 
skill sets to conduct studies required to coordinate protection 
systems. The proposed Reliability Standards also provide additional 
clarity to the applicable entities.
    Internal review: 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.
    30. Interested persons may obtain information on the reporting 
requirements by contacting the Federal Energy Regulatory Commission, 
Office of the Executive Director, 888 First Street NE., Washington, DC 
20426 [Attention: Ellen Brown, email: [email protected], phone: 
(202) 502-8663, fax: (202) 273-0873].
    31. Comments concerning the information collection proposed in this 
Notice of Proposed Rulemaking and the associated burden estimates 
should be sent to the Commission in this docket and may also be sent to 
the Office of Management and Budget, Office of Information and 
Regulatory Affairs [Attention: Desk Officer for the Federal Energy 
Regulatory Commission]. For security reasons, comments should be sent 
by email to OMB at the following email address: 
[email protected]. Please refer to OMB Control Nos. to be 
determined (FERC-725G6) and 1902-0279 (FERC-725Y) in your submittal.

IV. Environmental Analysis

    32. 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.\52\ The 
action proposed here falls within the categorical exclusion in the 
Commission's regulations for rules that are clarifying, corrective or 
procedural, for information gathering, analysis, and dissemination.\53\
---------------------------------------------------------------------------

    \52\ Regulations Implementing the National Environmental Policy 
Act of 1969, Order No. 486, FERC Stats. & Regs. ] 30,783 (1987) 
(cross-referenced at 41 FERC ] 61,284).
    \53\ 18 CFR 380.4(a)(2)(ii).
---------------------------------------------------------------------------

V. Regulatory Flexibility Act

    33. The Regulatory Flexibility Act of 1980 (RFA) generally requires 
a description and analysis of proposed rules that will have significant 
economic impact on a substantial number of small entities.\54\ The 
Small Business Administration (SBA) defines

[[Page 56192]]

which utilities are small businesses based on the number of employees 
that a utility and its affiliates employ.\55\
---------------------------------------------------------------------------

    \54\ 5 U.S.C. 601-612.
    \55\ 13 CFR 121.201, Subsector 221.
---------------------------------------------------------------------------

    34. The proposed Reliability Standard PRC-027-1 (included in FERC-
725G6) will apply to approximately 1,612 entities (334 transmission 
owners, 913 generator owners, and 365 distribution providers) in the 
United States.\56\ Pursuant to SBA regulations, the employment 
threshold for transmission is 500 employees, for generator owners is 
between 250 and 750 employees (depending on the fuel source), and for 
distribution providers is 1,000 employees. We estimate that the annual 
cost for each entity will be $1,048 for each generator owner and 
distribution provider and $5,507 for each transmission owner.
---------------------------------------------------------------------------

    \56\ Many respondents serve multiple roles in the NERC 
compliance registry, so there is likely double counting in the 
estimates.
---------------------------------------------------------------------------

    35. The proposed Reliability Standard PER-006-1 (included in FERC-
725Y) will apply to approximately 875 generator operators in the United 
States. Pursuant to SBA regulations the employment threshold for 
generator operators is between 250 and 750 employees (depending on the 
fuel source). We estimate that the annual cost for each generator 
operator will be $719.
    36. In addition, this Notice of Proposed Rulemaking proposes the 
retirement of Reliability Standard PRC-001-1.1(ii) (included in FERC-
725A). That retirement would decrease the annual estimated cost for 875 
generator operators by $4,585 each, for 177 transmission operators by 
$6,681 each, and for 99 balancing authorities by $2,885 each. For the 
generator operators affected by this retirement and the proposed 
Reliability Standard PER-006-1, the net annual effect would be a 
decrease of $3,866 each. We estimate the net annual cost of this Notice 
of Proposed Rulemaking would vary, by type of entity, from an annual 
decrease of $6,681 (for each transmission operator) to an annual 
increase of $5,507 (for each transmission owner). We view this as a 
minimal economic impact for each entity. Accordingly, we certify that 
the proposed Reliability Standards PRC-027-1 and PER-006-1 and 
retirement of Reliability Standard PRC-001-1.1 (ii) will not have a 
significant economic impact on a substantial number of small entities.

VI. Comment Procedures

    37. The Commission invites interested persons to submit comments on 
the matters and issues proposed in this notice to be adopted, including 
any related matters or alternative proposals that commenters may wish 
to discuss. Comments are due January 29, 2018. Comments must refer to 
Docket No. RM16-22-000, and must include the commenter's name, the 
organization they represent, if applicable, and their address in their 
comments.
    38. The Commission encourages comments to be filed electronically 
via the eFiling link on the Commission's Web site at http://www.ferc.gov. The Commission accepts most standard word processing 
formats. Documents created electronically using word processing 
software should be filed in native applications or print-to-PDF format 
and not in a scanned format. Commenters filing electronically do not 
need to make a paper filing.
    39. Commenters that are not able to file comments electronically 
must send an original of their comments to: Federal Energy Regulatory 
Commission, Secretary of the Commission, 888 First Street NE., 
Washington, DC 20426.
    40. All comments will be placed in the Commission's public files 
and may be viewed, printed, or downloaded remotely as described in the 
Document Availability section below. Commenters on this proposal are 
not required to serve copies of their comments on other commenters.

VII. Document Availability

    41. 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.
    42. 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.
    43. User assistance is available for eLibrary and the Commission's 
Web site during normal business hours from the Commission's Online 
Support at (202) 502-6652 (toll free at 1-866-208-3676) or email at 
[email protected], or the Public Reference Room at (202) 502-
8371, TTY (202) 502-8659. Email the Public Reference Room at 
[email protected].

    By direction of the Commission.

    Issued November 16, 2017.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2017-25586 Filed 11-27-17; 8:45 am]
 BILLING CODE 6717-01-P



                                                    56186               Federal Register / Vol. 82, No. 227 / Tuesday, November 28, 2017 / Proposed Rules

                                                      DOE also requests feedback on how to                  DEPARTMENT OF ENERGY                                    of Reliability Standards and Security,
                                                    assess pilot program results. In                                                                                888 First Street NE., Washington, DC
                                                    particular, how could DOE identify the                  Federal Energy Regulatory                               20426, Telephone: (772) 678–6496,
                                                    counterfactual or control group for                     Commission                                              Juan.Villar@ferc.gov.
                                                    comparison with the existing mandatory                                                                        Alan Rukin (Legal Information), Office
                                                    ECS program? How could DOE best                         18 CFR Part 40
                                                                                                                                                                    of the General Counsel, Federal
                                                    conduct a retroactive assessment of                     [Docket No. RM16–22–000]                                Energy Regulatory Commission, 888
                                                    costs and benefits to manufacturers                                                                             First Street NE., Washington, DC
                                                    under the existing ECS program and the                  Coordination of Protection Systems for
                                                                                                                                                                    20426, Telephone: (202) 502–8502,
                                                    market-based pilot? How could DOE                       Performance During Faults and
                                                                                                                                                                    Alan.Rukin@ferc.gov.
                                                    identify distributional impacts across                  Specific Training for Personnel
                                                    manufacturers? How could DOE                            Reliability Standards                                 SUPPLEMENTARY INFORMATION:
                                                    determine if a broader or narrower                      AGENCY: Federal Energy Regulatory                       1. Pursuant to section 215 of the
                                                    scope of trading, if allowed, would have                Commission, Department of Energy.                     Federal Power Act (FPA), the
                                                    been more beneficial? DOE also requests                 ACTION: Notice of proposed rulemaking.                Commission proposes to approve
                                                    input on what data it would need to                                                                           proposed Reliability Standards PRC–
                                                    collect to properly assess pilot program                SUMMARY:   The Federal Energy                         027–1 (Coordination of Protection
                                                    results.                                                Regulatory Commission (Commission)                    Systems for Performance During Faults)
                                                                                                            proposes to approve Reliability                       and PER–006–1 (Specific Training for
                                                    III. Public Participation                               Standards PRC–027–1 (Coordination of                  Personnel), which were submitted for
                                                       DOE invites all interested parties to                Protection Systems for Performance                    approval by the North American Electric
                                                    submit in writing by February 26, 2018,                 During Faults) and PER–006–1 (Specific                Reliability Corporation (NERC), the
                                                                                                            Training for Personnel) submitted by the              Commission-certified Electric
                                                    comments and information on matters
                                                                                                            North American Electric Reliability                   Reliability Organization (ERO).1 As
                                                    addressed in this RFI and on other
                                                                                                            Corporation (NERC). The purpose of                    discussed below, however, the
                                                    matters relevant to DOE’s evaluation of                 proposed Reliability Standard PRC–
                                                    the potential advantages and                                                                                  Commission also proposes to direct
                                                                                                            027–1 is to maintain the coordination of
                                                    disadvantages of additional compliance                                                                        NERC to modify proposed Reliability
                                                                                                            protection systems installed to detect
                                                    flexibilities in energy conservation                                                                          Standard PRC–027–1 to require an
                                                                                                            and isolate faults on bulk electric
                                                    standards, such as tradable average                                                                           initial protection system coordination
                                                                                                            system elements, such that those
                                                    standards, feebates or other market-                    protection systems operate in the                     study to ensure that applicable entities
                                                    based approaches. DOE requests                          intended sequence during faults. The                  will perform (or have performed), as a
                                                    feedback on program design, possible                    purpose of proposed Reliability                       baseline, a study demonstrating proper
                                                    economic efficiency gains, impacts on                   Standard PER–006–1 is to ensure that                  coordination of its protection systems.
                                                    consumer and manufacturer costs and                     personnel are trained on specific topics              We propose to direct NERC to submit
                                                    on energy savings, and potential                        essential to reliability to perform or                the modified Reliability Standard for
                                                    challenges associated with designing                    support real-time operations of the bulk              Commission approval within 12 months
                                                    and implementing such a program,                        electric system. In addition, the                     following the effective date of a final
                                                    including suggestions for a pilot and/or                Commission proposes to direct NERC to                 rule in this proceeding.
                                                    phase-in of a revised ECS.                              develop certain modifications to                         2. The Commission also proposes to
                                                                                                            proposed Reliability Standard PRC–                    approve the associated violation risk
                                                       DOE considers public participation to
                                                                                                            027–1.                                                factors, violation severity levels,
                                                    be a very important part of the process
                                                    for developing new and/or amended                       DATES: Comments are due January 29,                   implementation plans, and effective
                                                    energy conservation standards. DOE                      2018.                                                 dates proposed by NERC for Reliability
                                                    actively encourages the participation                   ADDRESSES:    Comments, identified by                 Standards PRC–027–1 and PER–006–1.
                                                    and interaction of the public during the                docket number, may be filed in the                    The Commission further proposes to
                                                    comment period. Interactions with and                   following ways:                                       approve the retirement of currently-
                                                    between members of the public provide                     • Electronic Filing through http://                 effective Reliability Standard PRC–001–
                                                    a balanced discussion of the issues and                 www.ferc.gov. Documents created                       1.1(ii) (System Protection
                                                    assist DOE. Anyone who wishes to be                     electronically using word processing                  Coordination).2
                                                    added to the DOE mailing list to receive                software should be filed in native                      3. In addition, the Commission
                                                    future notices and information about                    applications or print-to-PDF format and
                                                                                                                                                                  proposes to approve new and revised
                                                    this RFI should contact Appliance and                   not in a scanned format.
                                                                                                                                                                  definitions submitted by NERC for
                                                                                                              • Mail/Hand Delivery: Those unable
                                                    Equipment Standards Program staff at                                                                          incorporation in the NERC Glossary of
                                                                                                            to file electronically may mail or hand-
                                                    (202) 287–1445 or via email at                                                                                Terms Used in NERC Reliability
                                                                                                            deliver comments to: Federal Energy
                                                    ApplianceStandardsQuestions@                            Regulatory Commission, Secretary of the               Standards (‘‘NERC Glossary’’) for the
                                                    ee.doe.gov.                                             Commission, 888 First Street NE.,                     following terms: (1) ‘‘protection system
                                                      Issued in Washington, DC, on November                 Washington, DC 20426.                                 coordination study;’’ (2) ‘‘operational
jstallworth on DSKBBY8HB2PROD with PROPOSALS




                                                    21, 2017.                                                 Instructions: For detailed instructions             planning analysis;’’ and (3) ‘‘real-time
                                                    Daniel R Simmons,                                       on submitting comments and additional                 assessment.’’
                                                    Principal Deputy Assistant Secretary, Energy            information on the rulemaking process,
                                                    Efficiency and Renewable Energy.                        see the Comment Procedures Section of                   1 16 U.S.C. 824o.
                                                    [FR Doc. 2017–25663 Filed 11–27–17; 8:45 am]
                                                                                                            this document.                                          2 The  Commission approved Reliability Standard
                                                                                                            FOR FURTHER INFORMATION CONTACT:                      PRC–001–1.1(ii) on May 29, 2015. North American
                                                    BILLING CODE 6450–01–P
                                                                                                            Juan Villar (Technical Information),                  Electric Reliability Corporation, 151 FERC ¶ 61,186
                                                                                                              Office of Electric Reliability, Division            (2015).



                                               VerDate Sep<11>2014   15:25 Nov 27, 2017   Jkt 244001   PO 00000   Frm 00006   Fmt 4702   Sfmt 4702   E:\FR\FM\28NOP1.SGM    28NOP1


                                                                        Federal Register / Vol. 82, No. 227 / Tuesday, November 28, 2017 / Proposed Rules                                             56187

                                                    I. Background                                           proposed Reliability Standards, new                   2. Proposed Reliability Standard PRC–
                                                                                                            and revised NERC Glossary terms, and                  027–1
                                                    A. Section 215 and Mandatory
                                                                                                            the retirement of Reliability Standard                   8. NERC asserts that proposed
                                                    Reliability Standards
                                                                                                            PRC–001–1.1(ii) satisfy the                           Reliability Standard PRC–027–1:
                                                      4. Section 215 of the FPA requires a                  Commission’s criteria in Order No. 672
                                                    Commission-certified ERO to develop                                                                           provides a clear set of Requirements that
                                                                                                            and are just, reasonable, not unduly
                                                    mandatory and enforceable Reliability                                                                         obligate entities to (1) implement a process
                                                                                                            discriminatory or preferential, and in                for establishing and coordinating new or
                                                    Standards, subject to Commission                        the public interest.9 NERC explains that              revised Protection System settings, and (2)
                                                    review and approval.3 Once approved,                    the intent of the proposed Reliability                periodically study Protection System settings
                                                    the Reliability Standards may be                        Standards and changes to the NERC                     that could be affected by incremental changes
                                                    enforced by the ERO subject to                          Glossary are to maintain the                          in Fault current to ensure the Protection
                                                    Commission oversight or by the                          coordination of protection systems                    Systems continue to operate in their intended
                                                    Commission independently.4 In 2006,                     installed to detect and isolate faults on             sequence.12
                                                    the Commission certified NERC as the                    bulk electric system elements and                        According to NERC, proposed
                                                    ERO pursuant to section 215 of the                      require registered entities to provide                Reliability Standard PRC–027–1,
                                                    FPA.5                                                   training to their relevant personnel on               Requirement R1 mandates that each
                                                                                                            protection systems and remedial action                transmission owner, generator owner,
                                                    B. Order No. 693
                                                                                                            schemes. NERC asserts that the                        and distribution provider establish a
                                                      5. On March 16, 2007, the                             proposed Reliability Standards are an                 process for developing new and revised
                                                    Commission issued Order No. 693,                        improvement over currently-effective                  protection system settings for bulk
                                                    approving 83 of the 107 Reliability                     Reliability Standard PRC–001–1.1(ii)                  electric system elements.13
                                                    Standards filed by NERC, including                      and will ensure that appropriate                         9. NERC states that proposed
                                                    Reliability Standard PRC–001–1.6 In                     personnel are trained on protection                   Reliability Standard PRC–027–1,
                                                    addition, the Commission directed                       systems and that protection systems are               Requirement R2 mandates that every six
                                                    NERC to develop modifications to                        appropriately studied, coordinated, and               years, applicable entities must either: (1)
                                                    Reliability Standard PRC–001–1 that:                    monitored.                                            Perform a protection system
                                                      (1) Correct the references for Requirements,                                                                coordination study to determine
                                                    and [sic] (2) include a requirement that upon
                                                                                                            1. Proposed Reliability Standard PER–                 whether the protection systems
                                                    the detection of failures in relays or                  006–1                                                 continue to operate in the intended
                                                    protection system elements on the Bulk-                    7. NERC states that proposed                       sequence during faults; (2) compare
                                                    Power System that threaten reliable                     Reliability Standard PER–006–1                        present fault current values to an
                                                    operation, relevant transmission operators                                                                    established fault current baseline and,
                                                    must be informed promptly, but within a
                                                                                                            requires generator operators to use a
                                                                                                            systematic approach to develop and                    only if the comparison identifies a 15
                                                    specified period of time that is developed in                                                                 percent or greater deviation in fault
                                                    the Reliability Standards development                   implement training for dispatch
                                                    process, whereas generator operators must               personnel at centrally-located dispatch               current values (either three phase or
                                                    also promptly inform their transmission                 centers.10 NERC explains that proposed                phase to ground) at a bus to which the
                                                    operators; and (3) clarifies that, after being          Reliability Standard PER–006–1 will                   bulk electric system is connected,
                                                    informed of failures in relays or protection            also cover plant personnel who are                    perform a protection system
                                                    system elements that threaten reliability of            responsible for real-time control of a                coordination study; or (3) use a
                                                    the Bulk-Power System, transmission                     generator. NERC maintains that it is                  combination of options 1 and 2.14
                                                    operators must carry out corrective control                                                                      10. NERC explains that proposed
                                                    actions, i.e., return a system to a stable state
                                                                                                            appropriate to train plant personnel [in]
                                                                                                            the functionality of protection systems               Reliability Standard PRC–027–1,
                                                    that respects system requirements as soon as                                                                  Requirement R3 will require applicable
                                                    possible and no longer than 30 minutes after            and remedial action schemes. NERC
                                                                                                            observes that proposed Reliability                    entities to use the process established
                                                    they receive notice of the failure.7
                                                                                                            Standard PER–006–1 replaces the                       under proposed Reliability Standard
                                                    C. NERC Petition and Proposed                           phrase ‘‘purpose and limitations’’ used               PRC–027–1, Requirement R1 for the
                                                    Reliability Standards PRC–027–1 and                     in currently-effective Reliability                    development of any new or revised
                                                    PER–006–1                                               Standard PRC–001–1(ii) with the phrase                protection system settings.
                                                      6. On September 2, 2016, NERC                         ‘‘operational functionality’’ to clearly              3. Proposed Retirement of Reliability
                                                    submitted a petition seeking                            identify the objective of the training.11             Standard PRC–001–1.1(ii)
                                                    Commission approval of proposed                         NERC also observes that proposed                         11. NERC states that Reliability
                                                    Reliability Standards PRC–027–1 and                     Reliability Standard PER–006–1                        Standard PRC–001–1.1(ii) includes six
                                                    PER–006–1.8 NERC states that the                        replaces the phrase ‘‘applied in its area’’           requirements that are either addressed
                                                                                                            in Reliability Standard PRC–001–1.1(ii)               by Reliability Standards approved by
                                                      3 Id.824o(c), (d).                                    with the phrase ‘‘that affect the output              the Commission or by the proposed
                                                      4 Id.824o(e).                                         of the generating facility(ies) it                    Reliability Standards. Specifically,
                                                      5 North American Electric Reliability Corp., 116
                                                                                                            operates’’ to properly tailor the scope of            NERC explains that Reliability Standard
                                                    FERC ¶ 61,062, order on reh’g and compliance, 117
                                                    FERC ¶ 61,126 (2006), order on compliance, 118          the required training. NERC notes that                PRC–001–1.1(ii), Requirement R1 has
                                                    FERC ¶ 61,190, order on reh’g, 119 FERC ¶ 61,046        proposed Reliability Standard PER–                    been partially replaced by currently-
                                                    (2007), aff’d sub nom. Alcoa Inc. v. FERC, 564 F.3d     006–1 does not specify a periodicity for
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                                                    1342 (D.C. Cir. 2009).                                                                                        effective Reliability Standards PER–
                                                      6 Mandatory Reliability Standards for the Bulk-
                                                                                                            the required training.                                003–1 and PER–005–2. NERC continues
                                                    Power System, Order No. 693, FERC Stats. & Regs.                                                              that proposed Reliability Standard PER–
                                                    ¶ 31,242, at PP 1433–1449, order on reh’g, Order        Standards are available on the Commission’s
                                                                                                            eLibrary document retrieval system in Docket No.
                                                                                                                                                                  006–1 and the proposed revised
                                                    No. 693–A, 120 FERC ¶ 61,053 (2007).
                                                      7 Order No. 693, FERC Stats. & Regs. ¶ 31,242 at      RM16–22–000 and are posted on the NERC Web            definitions of operational planning
                                                    P 1449.                                                 site, http://www.nerc.com.
                                                      8 Proposed Reliability Standards PRC–027–1 and           9 NERC Petition at 10.                               12 Id. at 26.
                                                                                                               10 Id. at 13.                                        13 Id. at 27.
                                                    PER–006–1 are not attached to this Notice of
                                                    Proposed Rulemaking. The proposed Reliability              11 Id. at 15.                                        14 Id. at 26.




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                                                    56188                Federal Register / Vol. 82, No. 227 / Tuesday, November 28, 2017 / Proposed Rules

                                                    analysis and real-time assessment will                  Accordingly, pursuant to section                       not require establishing the ‘‘initial
                                                    replace the remaining portions of                       215(d)(5) of the FPA, we propose to                    Fault current baseline’’ through an
                                                    Reliability Standard PRC–001–1.1(ii),                   direct that NERC develop modifications                 initial protection system coordination
                                                    Requirement R1. NERC asserts that                       to proposed Reliability Standard PRC–                  study.19 NERC’s petition reinforces this
                                                    Reliability Standard PRC–001–1.1(ii),                   027–1 that address our concern                         understanding, as noted above, by
                                                    Requirement R2 has been addressed by                    regarding this gap, as discussed below.                explicitly allowing the use of short-
                                                    Reliability Standards IRO–001–4, IRO–                      13. In addition, we propose to                      circuit studies to establish the initial
                                                    008–2, IRO–010–2, TOP–001–3, and                        approve NERC’s associated violation                    Fault current baseline.
                                                    TOP–003–3, which the Commission                         risk factors, violation severity levels,                  16. While they are related terms, we
                                                    approved in Order No. 817.15 NERC                       implementation plans, and effective                    understand there to be a difference
                                                    states that Reliability Standard PRC–                   dates. We also propose to approve the                  between short-circuit studies and
                                                    001–1.1(ii), Requirements R3 and R4                     revised definitions for inclusion in the               protection system coordination studies.
                                                    will be replaced with proposed                          NERC Glossary. Further, we propose to                  NERC defines protection system
                                                    Reliability Standard PRC–027–1. NERC                    approve the retirement of Reliability                  coordination study as an ‘‘analysis to
                                                    also explains that Reliability Standard                 Standard PRC–001–1.1(ii), as requested                 determine whether Protection Systems
                                                    PRC–001–1.1(ii), Requirement R5 has                     by NERC.                                               operate in the intended sequence during
                                                    been replaced with several Reliability                     14. Pursuant to 215(d)(5) of the FPA,               Faults.’’ 20 By comparison, proposed
                                                    Standards developed after Reliability                   we propose to direct that NERC develop                 Reliability Standard PRC–027–1
                                                    Standard PRC–001–1(ii) became                           modifications to proposed Reliability                  explains that a short-circuit study is ‘‘an
                                                    effective.16 NERC further states that                   Standard PRC–027–1 addressing our                      analysis of an electrical network that
                                                    Reliability Standard PRC–001–1.1(ii),                   concern that applicable entities that                  determines the magnitude of the
                                                    Requirement R6 has been replaced with                   choose Requirement R2, Option 2                        currents flowing in the network during
                                                    Reliability Standards TOP–001–3 and                     perform (or have already performed) an                 an electrical fault . . . [and] are used as
                                                    TOP–003–3.                                              initial baseline study demonstrating                   the basis for protection device
                                                                                                            proper coordination of their protection                coordination studies.’’ 21 Therefore,
                                                    II. Discussion                                          systems. Any additional protection                     while short-circuit studies are inputs to
                                                       12. Pursuant to section 215(d)(2) of                 system coordination studies would be                   protection system coordination studies,
                                                    the FPA, we propose to approve                          necessary only if an applicable entity is              it appears that a short-circuit study
                                                    proposed Reliability Standards PER–                     confronted with 15 percent or greater                  differs in scope from a protection
                                                    006–1 and PRC–027–1 as just,                            fault current deviations from the prior                system coordination study. Based on
                                                    reasonable, not unduly discriminatory                   baseline study amounts, as currently                   this record, it would be incorrect to
                                                    or preferential, and in the public                      proposed in Reliability Standard PRC–                  conclude that proposed Reliability
                                                    interest, as both proposed Reliability                  027–1, Requirement R2, Option 2. We                    Standard PRC–027–1, Requirement R2,
                                                    Standards improve upon currently-                       propose to direct NERC to submit the                   Options 1 and 2 afford the same level of
                                                    effective Reliability Standard PRC–001–                 modified Reliability Standard within 12                protection system coordination because
                                                    1.1(ii) in important ways.17 Specifically,              months following the effective date of a               the former requires a protection system
                                                    proposed Reliability Standard PRC–                      final rule in this proceeding.                         coordination study while the latter does
                                                    027–1 does so by (1) modifying the                         15. Proposed Reliability Standard
                                                                                                                                                                   not.
                                                    applicability section to include the                    PRC–027–1, Requirement R2 does not                        17. While we generally support
                                                    appropriate functional entity types with                require an initial protection system                   permitting flexibility in the Reliability
                                                    the responsibilities, resources, and skill              coordination study if an applicable
                                                                                                                                                                   Standards to achieve required
                                                    sets to conduct the studies required to                 entity elects Option 2. Unlike Option 1,
                                                                                                                                                                   performance goals, the possibility that
                                                    coordinate protection systems, and (2)                  which requires performance of
                                                                                                                                                                   some bulk electric system elements may
                                                    listing the protection system functions                 protection system coordination studies
                                                                                                                                                                   never undergo a protection system
                                                    on all bulk electric system elements that               every six years, Option 2 requires
                                                                                                                                                                   coordination study raises reliability
                                                    require coordination. Proposed                          applicable entities to ‘‘[c]ompare
                                                                                                                                                                   concerns. In past serious Bulk-Power
                                                    Reliability Standard PER–006–1, along                   present Fault current values to an
                                                                                                                                                                   System events, mis-coordination was a
                                                    with existing formal training                           established Fault current baseline and
                                                                                                                                                                   contributing factor to misoperations and
                                                    requirements in the PER group of                        perform a Protection System
                                                                                                                                                                   outages. For example, the Arizona
                                                    Reliability Standards, also improves                    Coordination Study when the
                                                                                                            comparison identifies a 15 percent or                  Southern California September 8, 2011
                                                    upon Reliability Standard PRC–001–
                                                                                                            greater deviation.’’ The proposed                      Outage Report identified an instance
                                                    1.1(ii), Requirement R1 by ensuring that
                                                    the necessary personnel are familiar                    Reliability Standard and NERC’s                          19 Proposed Reliability Standard PRC–027–1,
                                                    with and understand the purpose and                     petition do not indicate that the ‘‘Fault              Requirement R2, Option 2 n.1. Footnote 1 further
                                                    limitations of protection systems                       current baseline’’ must be established                 states that if an ‘‘initial baseline was not established
                                                    schemes while providing more precise                    through an initial protection system                   by the effective date of this Reliability Standard
                                                    and auditable requirements. However,                    coordination study. Instead, NERC’s                    because of the previous use of an alternate option
                                                                                                                                                                   or the installation of a new BES Element, the entity
                                                    proposed Reliability Standard PRC–                      petition states that the baseline must be              may establish the baseline by performing a
                                                    027–1, Requirement R2, Option 2 does                    established ‘‘by the effective date of the             Protection System Coordination Study’’ (emphasis
                                                    not appear to ensure coordination of all                standard based on short-circuit                        added). Id.
                                                                                                                                                                     20 NERC Petition, Exhibit A–3, Proposed
                                                    bulk electric system elements with                      studies.’’ 18 The proposed Reliability
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                                                                                                                                                                   Definitions. This definition is consistent with the
                                                    protection system functions.                            Standard provides that ‘‘the initial Fault             definition of coordination of protection in IEEE Std.
                                                                                                            current baseline(s) shall be established               C37.113–1999 (stating that the ‘‘process of choosing
                                                      15 Id. at 5 (citing Transmission Operations
                                                                                                            by the effective date of this Reliability              settings or time delay characteristics of protective
                                                    Reliability Standards and Interconnection               Standard and updated each time a                       devices, such that operation of the devices will
                                                    Reliability Operations and Coordination Reliability                                                            occur in a specified order to minimize customer
                                                    Standards, Order No. 817, 153 FERC ¶ 61,178             Protection System Coordination Study                   service interruption and power system isolation due
                                                    (2015)).                                                is performed,’’ but this language does                 to a power system disturbance’’).
                                                      16 Id. at 6.                                                                                                   21 Proposed Reliability Standard PRC–027–1,
                                                      17 16 U.S.C. 824o(d)(2).                                18 NERC   Petition at 36 n.35.                       Supplemental Material at 8.



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                                                                         Federal Register / Vol. 82, No. 227 / Tuesday, November 28, 2017 / Proposed Rules                                                     56189

                                                    where a transmission owner did not                      due to setting errors can potentially be               the condition.’’ 36 The document also
                                                    perform a protection system                             reduced.’’ 30 The identified techniques                stated that ‘‘generator relay protection
                                                    coordination study prior to the                         to reduce incorrect settings, included:                should be coordinated with all auxiliary
                                                    implementation of a protection                          Peer reviews, increased training, more                 power system relaying with specific
                                                    system.22 The 2011 Outage Report                        extensive fault studies, standard                      regard to time-delay settings’’ in order to
                                                    stated that this omission negatively                    templates for setting standard schemes                 ensure reliable generator operation.37
                                                    affected the reliable operation of the                  using complex relays, and periodic                        22. The 2016 State of Reliability
                                                    Bulk-Power System during the 2011                       review of existing settings when there is              Report noted that while protection
                                                    event.23                                                a change in system topography.31 In the                system misoperations declined in 2015,
                                                       18. Over the past eleven years, several              ReliabilityFirst region, NERC identified               misoperations showed a ‘‘statistically
                                                    NERC reports have addressed the                         a category of misoperations caused by                  significant positive correlation with
                                                    importance of protection system                         ‘‘Engineering/Design Issues,’’ which                   transmission outage severity and
                                                    coordination to Bulk-Power System                       specifically included setting mis-                     show[ed] a higher relative transmission
                                                    reliability. Proposed Reliability                       coordination.32 This category of                       risk.’’ 38 Misoperations showed the
                                                    Standard PRC–027–1 addresses some of                    misoperations was one of the three most                strongest correlation of the factors
                                                    the issues raised in these reports; but                 common causes of misoperations for                     considered. In addition, the 2016 State
                                                    without requiring an initial protection                 above 200 kV facilities within the                     of Reliability Report identified that
                                                    system coordination study, the                          ReliabilityFirst region.33 The positive                ‘‘over 40 percent of the incorrect setting/
                                                    proposed Reliability Standard does not                  impact on Bulk-Power System reliability                logic/design misoperations were due to
                                                    address all of them. In 2006, for                       of reducing misoperations because of                   the miss coordination [sic] of ground
                                                    example, the NERC System Protection                     ‘‘Incorrect setting/logic/design errors’’ is           overcurrent settings’’ found by
                                                    Control Task Force assessed Reliability                 found in NERC’s 2015 Analysis of                       ERCOT.39
                                                    Standard PRC–001.24 The report                          System Protection Misoperations:                          23. The 2017 State of Reliability
                                                    recommended requiring the                                  The State of Reliability 2015 report found          Report recognized the significance of
                                                    coordination of all existing protection                 that protection system misoperations                   protection system misoperations to
                                                    systems.25                                              continued to be a significant contributor to           Bulk-Power System reliability by
                                                       19. In 2009, in a letter from the NERC               automatic transmission outage severity. In             observing that ‘‘[p]rotection system
                                                    President to the NERC Board of Trustees                 general, transmission system events with               misoperations should remain an area of
                                                    and stakeholders, NERC identified                       protection system misoperations were more
                                                                                                            impactful than other transmission events.
                                                                                                                                                                   focus as it continues to be one of the
                                                    generation and transmission mis-                                                                               largest contributors to the severity of
                                                    coordination as responsible for 30                      They were also a significant contributor to
                                                                                                            transmission outage severity, indicating that          transmission outages.’’ 40
                                                    percent of the misoperations that                       a reduction in protection system                          24. For the reasons discussed above,
                                                    occurred between 2005 and 2008.26 The                   misoperations would lead to an improvement             we propose to direct that NERC develop
                                                    2009 letter stated that mis-coordination                in system reliability.34                               modifications to proposed Reliability
                                                    between generation and transmission                                                                            Standard PRC–027–1 to address our
                                                                                                               21. In 2014, a NERC ‘‘lessons learned’’
                                                    protection systems ‘‘has caused two                                                                            concern by requiring that applicable
                                                                                                            document on ‘‘Generation Relaying—
                                                    significant system disturbances in the                                                                         entities perform an initial protection
                                                                                                            Underfrequency Protection
                                                    past two years, and resulted in the                                                                            coordination study under Requirement
                                                                                                            Coordination’’ identified a 2014
                                                    unnecessary loss of generation during                                                                          R2, Option 2. We propose that
                                                                                                            incident where underfrequency relay
                                                    seven additional disturbances in that                                                                          applicable entities would have six years
                                                                                                            trip settings were installed on the
                                                    timeframe.’’ 27 The letter explained that                                                                      from the effective date of a modified
                                                                                                            system unnecessarily and were not
                                                    the 2009 NERC System Protection                                                                                Reliability Standard to complete the
                                                                                                            coordinated with a generator’s relay trip
                                                    Initiative would initially focus on the                                                                        analysis. An applicable entity could use
                                                                                                            setting.35 The document explained that
                                                    area of protection system                                                                                      pre-existing protection system
                                                                                                            ‘‘[u]nintended generator tripping during
                                                    coordination.28
                                                                                                            an underfrequency event can exacerbate                 coordination studies to satisfy the
                                                       20. In 2013, NERC issued a
                                                                                                                                                                   proposed requirement provided it was
                                                    Misoperations Report prepared by the
                                                    Protection System Misoperations Task
                                                                                                              30 Id.   at 3.                                       reasonable (i.e., no intervening system
                                                    Force.29 The Misoperations Report
                                                                                                              31 Id.
                                                                                                                                                                   changes that would render the earlier
                                                                                                               32 Id. at 14–15. The 2013 Misoperations Report
                                                    identified ‘‘ways to potentially reduce                                                                        work obsolete). After conducting the
                                                                                                            elaborated that the ‘‘Engineering/Design Issues’’
                                                    the amount of future misoperations’’                    category included:
                                                                                                                                                                   initial protection system coordination
                                                    and concluded that ‘‘[m]isoperations                       Incorrect short circuit values and coordination     study, subsequent protection system
                                                                                                            errors. The incorrect short circuit values included    coordination studies would only be
                                                      22 Arizona Southern California September 8, 2011
                                                                                                            outdated or incorrect data used to calculate relay     required when an applicable entity is
                                                                                                            settings. The coordination errors in these cases all
                                                    Outage Report at 101–103, https://www.ferc.gov/         involved pilot protection either of insufficient
                                                                                                                                                                   confronted with 15 percent or greater
                                                    legal/staff-reports/04-27-2012-ferc-nerc-report.pdf.    carrier blocking trip delays or of improper choice     fault current deviations from the prior
                                                      23 Id. at 100–102.
                                                                                                            of ground pickup values used in a blocking scheme.     baseline study amounts, as currently
                                                      24 NERC SPCTF Assessment of Standard PRC–
                                                                                                            Id. at 15.                                             proposed in Reliability Standard PRC–
                                                    001–0—System Protection Coordination (2006),               33 Id. at 14.
                                                    http://www.nerc.com/pa/Stand/                              34 NERC, Analysis of System Protection
                                                                                                                                                                   027–1, Requirement R2, Option 2. We
                                                    Project200706SystemProtectionCoordinationDL/            Misoperations at 1 (Dec. 2015) (citations omitted),
                                                                                                                                                                   seek comments on this proposal.
                                                    NERC_SPCTF_Assessment_of_Standard_PRC.pdf.              http://www.nerc.com/pa/RAPA/PA/                           25. Separately, we seek comment from
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                                                      25 Id. at 3–4.
                                                                                                            Performance%20Analysis%20DL/2015_Analysis_             NERC and other interested entities
                                                      26 NERC Letter from Rick Sergel, NERC President,
                                                                                                            of_System_Protection_Misoperations_Final.pdf           explaining the technical basis for
                                                    Regarding System Protection Initiative at Figure 2      (finding that 31 percent of all misoperations were
                                                    (April 24, 2009).                                       due to ‘‘Incorrect setting/logic/design errors’’).
                                                      27 Id. at 1.                                                                                                   36 Id.
                                                                                                               35 NERC, Lesson Learned, Generation Relaying—
                                                      28 Id. at 1–2.                                                                                                 37 Id.
                                                                                                            Underfrequency Protection Coordination (2014),
                                                      29 NERC Misoperations Report (2013), http://                                                                  38 2016 State of Reliability Report at 17, http://
                                                                                                            http://www.nerc.com/pa/rrm/ea/
                                                    www.nerc.com/comm/PC/Protection%20                      Lessons%20Learned%20Document%20Library/                www.nerc.com/pa/RAPA/Pages/default.aspx.
                                                                                                                                                                    39 Id. at 166.
                                                    System%20Misoperations%20Task%20                        LL20140601_Generation_Relaying_
                                                    Force%20PSMTF%202/PSMTF_Report.pdf.                     Underfrequency_Protection_Coordination_final.pdf.       40 2017 State of Reliability Report at 2.




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                                                    56190                  Federal Register / Vol. 82, No. 227 / Tuesday, November 28, 2017 / Proposed Rules

                                                    employing a 15 percent deviation                             collections of information display a                                          generator operators, and distribution
                                                    threshold in proposed Reliability                            valid OMB control number.                                                     providers within the United States and
                                                    Standard PRC–027–1, Requirement R2,                             27. The Commission will submit the                                         an estimate of how many entities from
                                                    Option 2. We seek to better understand                       information collection requirement to                                         that registry will be affected by the
                                                    the basis for this threshold to ensure an                    OMB for its final review and approval.                                        Reliability Standards proposed for
                                                    adequate record in the proceeding on                         We solicit public comments on the need                                        adoption and implementation. At the
                                                    this matter.                                                 for this information, whether the                                             time of Commission review of proposed
                                                                                                                 information will have practical utility,                                      Reliability Standards PRC–027–1 and
                                                    III. Information Collection Statement                        the accuracy of the burden estimates,                                         PER–006–1, 334 transmission owners,
                                                                                                                 ways to enhance the quality, utility, and                                     913 generator owners, 875 generator
                                                      26. The collection of information                          clarity of the information to be collected
                                                    addressed in this Notice of Proposed                                                                                                       operators, and 365 distribution
                                                                                                                 or retained, and any suggested methods
                                                    Rulemaking is subject to review by the                                                                                                     providers in the United States were
                                                                                                                 for minimizing respondents’ burden,
                                                    Office of Management and Budget                              including the use of automated                                                registered in the NERC compliance
                                                    (OMB) under section 3507(d) of the                           information techniques.                                                       registry. However, under NERC’s
                                                    Paperwork Reduction Act of 1995.41                              28. The information collection                                             compliance registration program,
                                                    OMB’s regulations require approval of                        requirements in this Notice of Proposed                                       entities may be registered for multiple
                                                    certain information collection                               Rulemaking in Docket No. RM16–22–                                             functions, so these numbers incorporate
                                                    requirements imposed by agency                               000 are associated with FERC–725A,43                                          some double counting. We note that
                                                    rules.42 Upon approval of a collection(s)                    FERC–725G6,44 and FERC–725Y, as                                               many generation sites share a common
                                                    of information, OMB will assign an                           discussed below.                                                              generator owner or generator operator.
                                                    OMB control number and an expiration                            29. Public Reporting Burden: The                                           The following table provides the
                                                    date. Respondents subject to the filing                      number of respondents below is based                                          estimated proposed annual burden and
                                                    requirements of a rule will not be                           on an examination of the NERC                                                 cost related to information collection
                                                    penalized for failing to respond to these                    compliance registry on April 7, 2017, for                                     requirements in this Notice of Proposed
                                                    collections of information unless the                        transmission owners, generator owners,                                        Rulemaking.45

                                                                                            PROPOSED CHANGES IN THE NOPR IN DOCKET NO. RM16–22–000
                                                                                                                                            Annual
                                                                                                                                          number of              Total number               Average burden                      Annual burden hours
                                                                                                                Number of
                                                      Respondent category and requirement 46                                              responses                of annual                   hours and                        and total annual cost
                                                                                                               respondents                   per                  responses               cost per response 47                      (rounded) 48
                                                                                                                                         respondent

                                                                                                                       (1)                      (2)              (1) * (2) = (3)                        (4)                         (3) * (4) = (5)

                                                                                                FERC–725G6 (Covering Proposed Reliability Standard PRC–027–1) 49

                                                    TO; Reporting Reqs. R1, R2, & R3 ..............                            334                          1                    334      60   hrs.;   $3,941.40 ..           20,040 hrs.; $1,316,428.
                                                    TO; Recordkeeping Reqs. .............................                      334                          1                    334      40   hrs.;   $1,565.60 ..           13,360 hrs.; $522,910.
                                                    GO; Reporting Reqs. R1, R2, & R3 ..............                            913                          1                    913      10   hrs.;   $656.90 .....          9,130 hrs.; $599,750.
                                                    GO; Recordkeeping Reqs. ............................                       913                          1                    913      10   hrs.;   $391.40 .....          9,130 hrs.; $357,348.
                                                    DP; Reporting Reqs R1, R2, & R3 ...............                            365                          1                    365      10   hrs.;   $656.90 .....          3,650 hrs.; $239,769.
                                                    DP; Recordkeeping Reqs. .............................                      365                          1                    365      10   hrs.;   $391.40 .....          3,650 hrs.; $142,861.

                                                         Sub-Total for Reporting Reqs. for                     ......................   ......................   ......................   .................................   32,820 hrs.; $2,155,947.
                                                           FERC–725G6.
                                                         Sub-Total for Recordkeeping Reqs. for                 ......................   ......................   ......................   .................................   26,140 hrs.; $1,023,119.
                                                           FERC–725G6.

                                                               Total Proposed Increase for FERC–               ......................   ......................   ......................   .................................   58,960 hrs.; $3,179,066.
                                                                 725G6.

                                                                                                   FERC–725Y (Covering Proposed Reliability Standard PER–006–1)

                                                    GOP; Reporting Req. R1 ..............................                      875                          1                    875      5 hrs.; $328.45 .......             4,375 hrs.; $287,394.
                                                    GOP; Recordkeeping Req. ............................                       875                          1                    875      10 hrs.; $391.40 .....              8,750 hrs.; $342,475.
                                                    Total Proposed Increase for FERC–725Y ....                 ......................   ......................   ......................   .................................   13,125 hrs.; $629,869.

                                                                             Reductions to FERC–725A (Covering Proposed Retirement of Reliability Standard PRC–001–1.1) 50

                                                    GOP; Reporting Req. ....................................                   875                          1                    875      40 hrs.; $2,627.60 ..               35,000 hrs.; $2,299,150.
                                                    GOP; Recordkeeping Req. ............................                       875                          1                    875      50 hrs.; $1,957.00 ..               43,750 hrs.; $1,712,375.
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                                                      41 44 U.S.C. 3507(d).                                      related to FERC–725A for review and comment.                                  at a time, and an unrelated item affecting FERC–
                                                      42 5 CFR 1320.11.                                          However, to submit this Notice of Proposed                                    725G is pending OMB review. For this Notice of
                                                       43 FERC–725A (OMB Control No. 1902–0244)                  Rulemaking timely to OMB, the Commission is                                   Proposed Rulemaking and the related submittal to
                                                    currently includes the information collection                being conservative and not reducing the burden                                OMB, we use a placeholder information collection
                                                    requirements associated with Reliability Standard            estimates associated with FERC–725A at this time.
                                                                                                                   44 The information collection requirements
                                                                                                                                                                                               no. of FERC–725G6.
                                                    PRC–001–1.1(ii), which is proposed for retirement.                                                                                            45 TO = transmission owner; TOP = transmission
                                                    Only one item per OMB Control No. may be                     related to proposed Reliability Standard PRC–027–
                                                    pending OMB review at a time, and an unrelated               1 would normally be included in FERC–725G (OMB                                operator; GO = generator owner; GOP = generator
                                                    item affecting FERC–725A is pending OMB review.              Control No. 1902–0252). However, only one item                                operator; DP = distribution provider; and BA =
                                                    We are providing estimates of the burden reduction           per OMB Control No. may be pending OMB review                                 balancing authority.



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                                                                            Federal Register / Vol. 82, No. 227 / Tuesday, November 28, 2017 / Proposed Rules                                                                                      56191

                                                                                   PROPOSED CHANGES IN THE NOPR IN DOCKET NO. RM16–22–000—Continued
                                                                                                                                              Annual
                                                                                                                                            number of              Total number               Average burden                      Annual burden hours
                                                                                                                  Number of
                                                      Respondent category and requirement 46                                                responses                of annual                   hours and                        and total annual cost
                                                                                                                 respondents                   per                  responses               cost per response 47                      (rounded) 48
                                                                                                                                           respondent

                                                                                                                         (1)                      (2)              (1) * (2) = (3)                        (4)                         (3) * (4) = (5)

                                                    TOP; Reporting Req. .....................................                    177                          1                    177      60 hrs.; $3,941.40 ..               10,620 hrs.; $697,628.
                                                    TOP; Recordkeeping Req. ............................                         177                          1                    177      70 hrs.; $2,739.80 ..               12,390 hrs.; $484,945.
                                                    BA; Reporting Req. .......................................                     99                         1                      99     32 hrs.; $2,102.08 ..               3,168 hrs.; $208,106.
                                                    BA; Recordkeeping Req. ...............................                         99                         1                      99     20 hrs.; $782.80 .....              1,980 hrs.; $77,497.
                                                        Reduction Sub-Total Reporting Reqs.                      ......................   ......................   ......................   .................................   48,788 hrs.; $3,204,884.
                                                          for FERC–725A.

                                                         Reduction Sub-Total Recordkeeping                       ......................   ......................   ......................   .................................   58,120 hrs.; $2,274,817.
                                                           Reqs. for FERC–725A.

                                                         Reduction, Sub-Total for FERC–725A ...                  ......................   ......................   ......................   .................................   106,908 hrs.; $5,479,701
                                                                                                                                                                                                                                  (reduction).

                                                               NET TOTAL REDUCTION FOR                           ......................   ......................   ......................   .................................   34,823 hrs.; $1,670,766
                                                                PROPOSED    CHANGES  IN                                                                                                                                           (reduction).
                                                                NOPR IN RM16–22–000.



                                                      Titles: FERC–725G6 (Mandatory                                requirements being at least once every                                       associated burden estimates should be
                                                    Reliability Standard PRC–027–1) and                            six years.                                                                   sent to the Commission in this docket
                                                    FERC–725Y (Mandatory Reliability                                  Necessity of the Information:                                             and may also be sent to the Office of
                                                    Standards: Operations Personnel                                Proposed Reliability Standards PRC–                                          Management and Budget, Office of
                                                    Training (PER–005–2 and PER–006–1).                            027–1 and PER–006–1 set forth                                                Information and Regulatory Affairs
                                                      Action: Revision to existing                                 requirements for coordination of                                             [Attention: Desk Officer for the Federal
                                                    collections and proposed new                                   protection systems and personnel                                             Energy Regulatory Commission]. For
                                                    information collection.                                        training on specific topics essential to                                     security reasons, comments should be
                                                      OMB Control Nos.: To be determined                           reliability. The Commission proposes to                                      sent by email to OMB at the following
                                                    (FERC–725G6) 51 and 1902–0279                                  approve proposed Reliability Standards                                       email address: oira_submission@
                                                    (FERC–725Y).                                                   PRC–027–1 and PER–006–1, which will                                          omb.eop.gov. Please refer to OMB
                                                      Respondents: Business or other for                           replace Commission-approved                                                  Control Nos. to be determined (FERC–
                                                    profit, and not for profit institutions.                       Reliability Standard PRC–001–1.1(ii).                                        725G6) and 1902–0279 (FERC–725Y) in
                                                      Frequency of Responses: Annual                               The proposed Reliability Standards                                           your submittal.
                                                    recordkeeping and reporting                                    PRC–027–1 and PER–006–1 improve
                                                                                                                                                                                                IV. Environmental Analysis
                                                    requirements, with some reporting                              upon the existing Reliability Standard
                                                                                                                   PRC–001–1.1(ii) because the proposed                                           32. The Commission is required to
                                                      46 For each Reliability Standard, the Measure                Reliability Standards assign                                                 prepare an Environmental Assessment
                                                    shows the acceptable evidence for the associated               responsibilities to entities with more                                       or an Environmental Impact Statement
                                                    Reporting Requirement, and the Compliance section              appropriate resources and skill sets to                                      for any action that may have a
                                                    details the related Recordkeeping Requirement.                 conduct studies required to coordinate                                       significant adverse effect on the human
                                                      47 Based on data from the Bureau of Labor
                                                                                                                   protection systems. The proposed                                             environment.52 The action proposed
                                                    Statistics, the average hourly cost (wages plus
                                                    benefits) is $65.69/hour for an engineer, and                  Reliability Standards also provide                                           here falls within the categorical
                                                    $39.14/hour for a record clerk. The hourly cost for            additional clarity to the applicable                                         exclusion in the Commission’s
                                                    an engineer is used for reporting requirements; the            entities.                                                                    regulations for rules that are clarifying,
                                                    hourly cost for a record clerk is used for                        Internal review: The Commission has                                       corrective or procedural, for information
                                                    recordkeeping requirements.
                                                      48 For display purposes, the cost figures in                 assured itself, by means of its internal                                     gathering, analysis, and
                                                    column 5 have been rounded.                                    review, that there is specific, objective                                    dissemination.53
                                                      49 Some of the reporting requirements are                    support for the burden estimates                                             V. Regulatory Flexibility Act
                                                    required at least every six calendar years. In this            associated with the information
                                                    table, the Commission assumes that respondents                 requirements.                                                                  33. The Regulatory Flexibility Act of
                                                    might work on some of their elements each year;                                                                                             1980 (RFA) generally requires a
                                                    the annual burden estimate shown is one sixth of                  30. Interested persons may obtain
                                                    the burden associated with one complete six-year               information on the reporting                                                 description and analysis of proposed
                                                    cycle. For example, for each transmission owner: (a)           requirements by contacting the Federal                                       rules that will have significant
                                                    the annual reporting burden associated with                    Energy Regulatory Commission, Office                                         economic impact on a substantial
jstallworth on DSKBBY8HB2PROD with PROPOSALS




                                                    Requirements R1, R2, and R3 is shown as 60 hours                                                                                            number of small entities.54 The Small
                                                    per year, and (b) the burden for the six-year cycle            of the Executive Director, 888 First
                                                    would be six times that, or a total of 360 hours.              Street NE., Washington, DC 20426                                             Business Administration (SBA) defines
                                                      50 The estimates for average annual burden hours             [Attention: Ellen Brown, email:
                                                                                                                                                                                                  52 Regulations Implementing the National
                                                    per response are based on Order No. 693, FERC                  DataClearance@ferc.gov, phone: (202)
                                                    Stats. & Regs. ¶ 31,242 at PP 1906, 1907. The                                                                                               Environmental Policy Act of 1969, Order No. 486,
                                                    numbers of respondents and estimated hourly costs
                                                                                                                   502–8663, fax: (202) 273–0873].                                              FERC Stats. & Regs. ¶ 30,783 (1987) (cross-
                                                    are based on current figures.                                     31. Comments concerning the                                               referenced at 41 FERC ¶ 61,284).
                                                      51 OMB will assign a Control No. when it issues              information collection proposed in this                                        53 18 CFR 380.4(a)(2)(ii).

                                                    a decision.                                                    Notice of Proposed Rulemaking and the                                          54 5 U.S.C. 601–612.




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                                                    56192               Federal Register / Vol. 82, No. 227 / Tuesday, November 28, 2017 / Proposed Rules

                                                    which utilities are small businesses                    notice to be adopted, including any                     By direction of the Commission.
                                                    based on the number of employees that                   related matters or alternative proposals                Issued November 16, 2017.
                                                    a utility and its affiliates employ.55                  that commenters may wish to discuss.                  Nathaniel J. Davis, Sr.,
                                                       34. The proposed Reliability Standard                Comments are due January 29, 2018.                    Deputy Secretary.
                                                    PRC–027–1 (included in FERC–725G6)                      Comments must refer to Docket No.                     [FR Doc. 2017–25586 Filed 11–27–17; 8:45 am]
                                                    will apply to approximately 1,612                       RM16–22–000, and must include the                     BILLING CODE 6717–01–P
                                                    entities (334 transmission owners, 913                  commenter’s name, the organization
                                                    generator owners, and 365 distribution                  they represent, if applicable, and their
                                                    providers) in the United States.56                      address in their comments.
                                                                                                               38. The Commission encourages                      DEPARTMENT OF DEFENSE
                                                    Pursuant to SBA regulations, the
                                                    employment threshold for transmission                   comments to be filed electronically via               Department of the Army, Corps of
                                                    is 500 employees, for generator owners                  the eFiling link on the Commission’s                  Engineers
                                                    is between 250 and 750 employees                        Web site at http://www.ferc.gov. The
                                                    (depending on the fuel source), and for                 Commission accepts most standard                      33 CFR Chapter II
                                                    distribution providers is 1,000                         word processing formats. Documents
                                                    employees. We estimate that the annual                  created electronically using word                     Report on Potential Actions To Reduce
                                                    cost for each entity will be $1,048 for                 processing software should be filed in                Regulatory Burdens on Domestic
                                                    each generator owner and distribution                   native applications or print-to-PDF                   Energy Production
                                                    provider and $5,507 for each                            format and not in a scanned format.
                                                                                                            Commenters filing electronically do not               AGENCY:   Army Corps of Engineers, DoD.
                                                    transmission owner.
                                                       35. The proposed Reliability Standard                need to make a paper filing.                          ACTION:   Notice of availability.
                                                    PER–006–1 (included in FERC–725Y)                          39. Commenters that are not able to
                                                                                                            file comments electronically must send                SUMMARY:   The U.S. Army Corps of
                                                    will apply to approximately 875                                                                               Engineers (Corps) has issued a report
                                                    generator operators in the United States.               an original of their comments to:
                                                                                                            Federal Energy Regulatory Commission,                 that examined actions it could take to
                                                    Pursuant to SBA regulations the                                                                               modify existing regulations that
                                                    employment threshold for generator                      Secretary of the Commission, 888 First
                                                                                                            Street NE., Washington, DC 20426.                     potentially burden the development and
                                                    operators is between 250 and 750                                                                              use of domestically produced energy
                                                    employees (depending on the fuel                           40. All comments will be placed in
                                                                                                            the Commission’s public files and may                 resources, such as oil, natural gas, coal,
                                                    source). We estimate that the annual                                                                          and nuclear energy, as well as
                                                    cost for each generator operator will be                be viewed, printed, or downloaded
                                                                                                            remotely as described in the Document                 renewable energy. The report was
                                                    $719.                                                                                                         required by Executive Order 13783,
                                                       36. In addition, this Notice of                      Availability section below. Commenters
                                                                                                            on this proposal are not required to                  Promoting Energy Independence and
                                                    Proposed Rulemaking proposes the                                                                              Economic Growth. The report identifies
                                                    retirement of Reliability Standard PRC–                 serve copies of their comments on other
                                                                                                            commenters.                                           changes that could be made to several
                                                    001–1.1(ii) (included in FERC–725A).                                                                          nationwide permits that authorize
                                                    That retirement would decrease the                      VII. Document Availability                            activities under section 10 of the Rivers
                                                    annual estimated cost for 875 generator                                                                       and Harbors Act of 1899 and section 404
                                                                                                              41. In addition to publishing the full
                                                    operators by $4,585 each, for 177                                                                             the Clean Water Act that are associated
                                                                                                            text of this document in the Federal
                                                    transmission operators by $6,681 each,                                                                        with domestic energy production and
                                                                                                            Register, the Commission provides all
                                                    and for 99 balancing authorities by                                                                           use.
                                                                                                            interested persons an opportunity to
                                                    $2,885 each. For the generator operators
                                                                                                            view and/or print the contents of this                ADDRESSES: U.S. Army Corps of
                                                    affected by this retirement and the
                                                                                                            document via the Internet through the                 Engineers, Attn: CECW–CO–R, 441 G
                                                    proposed Reliability Standard PER–
                                                                                                            Commission’s Home Page (http://                       Street NW., Washington, DC 20314–
                                                    006–1, the net annual effect would be a
                                                                                                            www.ferc.gov) and in the Commission’s                 1000.
                                                    decrease of $3,866 each. We estimate
                                                                                                            Public Reference Room during normal
                                                    the net annual cost of this Notice of                                                                         FOR FURTHER INFORMATION CONTACT: Mr.
                                                                                                            business hours (8:30 a.m. to 5:00 p.m.
                                                    Proposed Rulemaking would vary, by                                                                            David Olson at 202–761–4922 or access
                                                                                                            Eastern time) at 888 First Street NE.,
                                                    type of entity, from an annual decrease                                                                       the U.S. Army Corps of Engineers
                                                                                                            Room 2A, Washington, DC 20426.
                                                    of $6,681 (for each transmission                          42. From the Commission’s Home                      Regulatory Home Page at http://
                                                    operator) to an annual increase of                      Page on the Internet, this information is             www.usace.army.mil/Missions/
                                                    $5,507 (for each transmission owner).                   available on eLibrary. The full text of               CivilWorks/
                                                    We view this as a minimal economic                      this document is available on eLibrary                RegulatoryProgramandPermits.aspx.
                                                    impact for each entity. Accordingly, we                 in PDF and Microsoft Word format for                  SUPPLEMENTARY INFORMATION: Executive
                                                    certify that the proposed Reliability                   viewing, printing, and/or downloading.                Order (E.O.) 13783, Promoting Energy
                                                    Standards PRC–027–1 and PER–006–1                       To access this document in eLibrary,                  Independence and Economic Growth,
                                                    and retirement of Reliability Standard                  type the docket number of this                        was published in the Federal Register
                                                    PRC–001–1.1 (ii) will not have a                        document, excluding the last three                    on March 31, 2017 (82 FR 16093). That
                                                    significant economic impact on a                        digits, in the docket number field.                   E.O. requires federal agencies to
                                                    substantial number of small entities.                     43. User assistance is available for                immediately review existing regulations
                                                                                                            eLibrary and the Commission’s Web site                that may burden the development or use
jstallworth on DSKBBY8HB2PROD with PROPOSALS




                                                    VI. Comment Procedures
                                                                                                            during normal business hours from the                 of domestically produced energy
                                                      37. The Commission invites interested                 Commission’s Online Support at (202)                  resources. Section 2 of E.O. 13783
                                                    persons to submit comments on the                       502–6652 (toll free at 1–866–208–3676)                requires federal agencies to prepare and
                                                    matters and issues proposed in this                     or email at ferconlinesupport@ferc.gov,               issue reports with specific
                                                      55 13
                                                                                                            or the Public Reference Room at (202)                 recommendations to change their
                                                           CFR 121.201, Subsector 221.
                                                      56 Many respondents serve multiple roles in the
                                                                                                            502–8371, TTY (202) 502–8659. Email                   regulations that could reduce or
                                                    NERC compliance registry, so there is likely double     the Public Reference Room at                          eliminate burdens to domestic energy
                                                    counting in the estimates.                              public.referenceroom@ferc.gov.                        production.


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Document Created: 2017-11-28 01:51:00
Document Modified: 2017-11-28 01:51:00
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionNotice of proposed rulemaking.
DatesComments are due January 29, 2018.
ContactJuan Villar (Technical Information), Office of Electric Reliability, Division of Reliability Standards and Security, 888 First Street NE., Washington, DC 20426, Telephone: (772) 678-6496, [email protected] Alan Rukin (Legal Information), Office of the General Counsel, Federal Energy Regulatory Commission, 888 First Street NE., Washington, DC 20426, Telephone: (202) 502-8502, [email protected]
FR Citation82 FR 56186 

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