[Federal Register: October 25, 2011 (Volume 76, Number 206)]
[Notices]
[Page 66055-66057]
[DOCID:fr25oc11-61]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. RD11-9-000]

North American Electric Reliability Corporation; Order Approving
Interpretation of Reliability Standard; Before Commissioners: Jon
Wellinghoff, Chairman; Philip D. Moeller, John R. Norris, and Cheryl A.
LaFleur

Issued October 20, 2011.
    1. On April 15, 2011, the North American Electric Reliability
Corporation (NERC), the Commission-certified Electric Reliability
Organization (ERO), submitted a petition for Commission approval of an
interpretation of Requirement R10 of Transmission Operations (TOP)
Reliability Standard TOP-002-2a (Normal Operations Planning). This
Reliability Standard requires, in pertinent part, each balancing
authority and transmission operator to maintain plans to evaluate
options and establish procedures for the reliable operation of the
Bulk-Power System for current day and future operations, as well as
coordinate current day and future operations with neighboring balancing
authorities and transmission operators. Requirement R10, the subject of
NERC's Petition, addresses the planning required to meet all System
Operating Limits and Interconnection Reliability Operating Limits. NERC
also requests that the Standard including the interpretation, which
would be referred to as Reliability Standard TOP-002-2b, be made
effective immediately upon the issuance of an order in this proceeding.
    2. In this order, the Commission finds that NERC's proposed
interpretation of Requirement R10 of Reliability Standard TOP-002-2a is
just, reasonable, not unduly discriminatory or preferential, and in the
public interest. Therefore, the Commission approves the interpretation,
referred to as Reliability Standard TOP-002-2b, effective as of the
date of this order.

I. Background

    3. Section 215 of the Federal Power Act (FPA) requires a
Commission-certified ERO to develop mandatory and enforceable
Reliability Standards, which are subject to Commission review and
approval. Once approved, the Reliability Standards may be enforced by
the ERO, subject to Commission oversight, or by the Commission
independently.\1\
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    \1\ See 16 U.S.C. 824o(e) (2006).

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    4. Pursuant to section 215 of the FPA, the Commission established a
process to select and certify an ERO \2\ and, subsequently, certified
NERC as the ERO.\3\ On March 16, 2007, the Commission issued Order No.
693, approving 83 of the 107 Reliability Standards filed by NERC,
including Reliability Standard TOP-002-2.\4\ On December 2, 2009, the
Commission approved TOP-002-2a, an interpretation submitted by NERC on
Requirement R11.\5\
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    \2\ Rules Concerning Certification of the Electric Reliability
Organization; and Procedures for the Establishment, Approval and
Enforcement of Electric Reliability Standards, Order No. 672, FERC
Stats. & Regs. ] 31,204, order on reh'g, Order No. 672-A, FERC
Stats. & Regs. ] 31,212 (2006).
    \3\ North American Electric Reliability Corp., 116 FERC
 61,062, order on reh'g & compliance, 117 FERC ] 61,126
(2006), aff'd sub nom. Alcoa, Inc. v. FERC, 564 F.3d 1342 (D.C. Cir.
2009).
    \4\ Mandatory Reliability Standards for the Bulk-Power System,
Order No. 693, FERC Stats. & Regs. ] 31,242, order on reh'g, Order
No. 693-A, 120 FERC ] 61,053 (2007).
    \5\ North American Electric Reliability Corp., 129 FERC ] 61,191
(2009).
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    5. NERC's Rules of Procedure provide that a person that is
``directly and materially affected'' by Bulk-Power System reliability
may request an interpretation of a Reliability Standard.\6\ The ERO's
``standards process manager'' will assemble a team with relevant
expertise to address the requested interpretation and also form a
ballot pool. NERC's Rules provide that, within 45 days, the team will
draft an interpretation of the Reliability Standard, with subsequent
balloting. If approved by ballot, the interpretation is appended to the
Reliability Standard and submitted to the Board of Trustees. Once
approved by the Board of Trustees, the Reliability Standard with the
interpretation is filed with the applicable regulatory authority for
regulatory approval.
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    \6\ NERC Rules of Procedure, Appendix 3A, Reliability Standards
Development Procedure, Version 6.1, at 27-29 (2010).
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II. NERC Petition

    6. In its April 15, 2011 Petition,\7\ NERC requests Commission
approval of a proposed interpretation of Requirement R10 of Reliability
Standard TOP-002-2a (Normal Operations Planning). The stated purpose of
Reliability Standard TOP-002-2a is to ensure that current operations
plans and procedures are prepared for reliable operations, including
responses to unplanned events. Requirement R10, the subject of the
proposed interpretation, requires:
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    \7\ North American Electric Reliability Corp., April 15, 2011,
Petition for Approval of an Interpretation of Requirement R10 of
Reliability Standard TOP-002-2a (Petition).
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    Each Balancing Authority and Transmission Operator shall plan to
meet all System Operating Limits (SOLs) and Interconnection Reliability
Operating Limits (IROLs).
    7. The Petition explains that NERC received a request from Florida
Municipal Power Pool (FMPP) seeking an interpretation of Requirement
R10 of Reliability Standard TOP-002-2a. Specifically, FMPP asked:
    In Requirement 10 is the requirement of the BA to plan to maintain
load-interchange-generation balance under the direction of the TOPs
meeting all SOLs and IROLs?
    8. In response to FMPP's interpretation request, NERC provided the
following interpretation:
    Yes. As stated in the NERC Glossary of Terms Used in Reliability
Standards, the Balancing Authority is responsible for integrating
resource plans ahead of time, maintaining load-interchange-generation
balance within a Balancing Authority Area, and supporting
Interconnection frequency in real time. The Balancing Authority does
not possess the Bulk Electric System information necessary to manage
transmission flows (MW, MVAR or Ampere) or voltage. Therefore, the
Balancing Authority must follow the directions of the Transmission
Operator to meet all SOLs and IROLs.
    9. In the Petition, NERC explains that the interpretation is
consistent with the stated purpose of the Reliability Standard, which
is to ensure that current operations plans and procedures are prepared
for reliable operation, including response to unplanned events. The
NERC Glossary of Terms Used in Reliability Standards (NERC Glossary)
definitions for balancing authority and transmission operator are
referenced along with an explanation that the balancing authority does
not possess information needed to manage flows or voltage, thus
requiring the balancing authority to follow direction of the
transmission operator or reliability coordinator. Further, the Petition
states that when balancing authority actions do not resolve targeted
transmission issues, the transmission operator or reliability
coordinator is responsible for directing alternative actions.\8\
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    \8\ Id. 6-7.
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III. Notice of Filing, Interventions and Comments

    10. On August 22, 2011, notice of NERC's filing was published in
the Federal Register with interventions and protests due on or before
September 14, 2011.\9\ A motion to intervene was timely filed by
American Municipal Power, Inc. (AMP). Pursuant to Rule 214 of the
Commission's Rules of Practice and Procedure,\10\ the timely, unopposed
motion to intervene serves to make AMP a party to this proceeding.
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    \9\ 76 FR 52,325 (2011).
    \10\ 18 CFR 385.214 (2011).
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IV. Commission Determination

    11. The Commission finds that the ERO's interpretation of
Requirement R10 of Reliability Standard TOP-002-2a is just, reasonable,
not unduly discriminatory or preferential, and in the public
interest.\11\
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    \11\ 16 U.S.C. 824(d)(2).
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    12. The interpretation supports the stated purpose of the
Reliability Standard, i.e., current operational plans and procedures
are essential for an entity to be prepared for reliable operations,
including responses to unplanned events. The interpretation also
clarifies the responsibilities of the balancing authority with regard
to normal operations planning. Further, the language of the
interpretation is consistent with the language of the requirement.
Accordingly, the Commission approves the ERO's interpretation of
Requirement R10 of Reliability Standard TOP-002-2a.
    13. We agree with NERC that the balancing authority is responsible
for integrating resource plans ahead of time, maintaining load-
interchange-generation balance within a balancing authority area, and
supporting interconnection frequency in real time under the definition
of Balancing Authority found in the NERC Glossary.\12\ Additionally,
the Commission notes that communication and coordination between the
balancing authority and transmission operator can be essential in
normal operations planning under TOP-002-2a, Requirement R10 to ``plan
to meet all System Operating Limits (SOLs) and Interconnection
Reliability Operating Limits (IROLs).'' \13\
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    \12\ Petition at 6.
    \13\ See Reliability Standard TOP-002-2a, Requirement R10; see
generally Electric Reliability Organization Interpretation of
Transmission Operations Reliability Standard, Order No. 753, 136
FERC ] 61,176, at P 15-17 (2011).
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    14. Accordingly, the Commission approves Reliability Standard TOP-
002-2b, effective as of the date of this order.

V. Information Collection Statement

    15. The Office of Management and Budget (OMB) regulations require
that OMB approve certain reporting and

recordkeeping requirements (collections of information) imposed by an
agency.\14\ The information contained here is also subject to review
under section 3507(d) of the Paperwork Reduction Act of 1995.\15\
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    \14\ 5 CFR 1320.11 (2011).
    \15\ 44 U.S.C. 3507(d).
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    16. The Commission approved Reliability Standard TOP-002-2, the
subject of this order, in Order No. 693.\16\ This order proposes to
approve the interpretation of the previously approved Reliability
Standard, which was developed by NERC as the ERO. The interpretation
relates to an existing Reliability Standard, and the Commission does
not expect it to affect entities' current reporting burden.\17\
Accordingly, we will submit this Final Rule to OMB for informational
purposes only.
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    \16\ Order No. 693, FERC Stats. & Regs. ] 31,242, order on
reh'g, Order No. 693-A, 120 FERC ] 61,053 (2007).
    \17\ 5 CFR 1320.3(b)(2).
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    The Commission Orders:
    (A) NERC's interpretation is hereby approved, as discussed in the
body of this order.

    By the Commission. Commissioner Spitzer is not participating.
Kimberly D. Bose,
Secretary.
[FR Doc. 2011-27566 Filed 10-24-11; 8:45 am]
BILLING CODE 6717-01-P