[Federal Register Volume 85, Number 173 (Friday, September 4, 2020)]
[Proposed Rules]
[Pages 55201-55219]
[FR Doc No: 2020-15866]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

18 CFR Parts 37 and 38

[Docket Nos. RM05-5-029, RM05-5-030]

Standards for Business Practices and Communication Protocols for
Public Utilities

AGENCY: Federal Energy Regulatory Commission.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Federal Energy Regulatory Commission (Commission) proposes
to amend its regulations to incorporate by reference, with certain
enumerated exceptions, the latest version (Version 003.3) of the
Standards for Business Practices and Communication Protocols for Public
Utilities adopted by the Wholesale Electric Quadrant (WEQ) of the North
American Energy Standards Board (NAESB). The WEQ Version 003.3

Standards also include, in their entirety, the WEQ-023 Modeling
Business Practice Standards contained in the WEQ Version 003.1
Standards, which address the technical issues affecting Available
Transfer Capability and Available Flowgate Capability calculation for
wholesale electric transmission services, with the addition of certain
revisions and corrections. The revisions made by NAESB in the WEQ
Version 003.3 Standards are designed to aid public utilities with the
consistent and uniform implementation of requirements promulgated by
the Commission as part of the pro forma Open Access Transmission
Tariff.

DATES: Comments are due November 3, 2020.

ADDRESSES: Comments, identified by docket numbers RM05-5-029 and RM05-
5-030, may be filed electronically at http://www.ferc.gov in acceptable
native applications and print-to-PDF, but not in scanned or picture
format. For those unable to file electronically, comments may be filed
by mail or hand-delivery to: Federal Energy Regulatory Commission,
Secretary of the Commission, 888 First Street NE, Washington, DC 20426.
The Comment Procedures Section of this document contains more detailed
filing procedures.

FOR FURTHER INFORMATION CONTACT:
Michael P. Lee (technical issues), Office of Energy Policy and
Innovation, Federal Energy Regulatory Commission, 888 First Street NE,
Washington, DC 20426,<PHONE_NUMBER>
Peter Whitman (technical issues), Office of Energy Policy and
Innovation, Federal Energy Regulatory Commission, 888 First Street NE,
Washington, DC 20426,<PHONE_NUMBER>
Michael A. Chase (legal issues), Office of the General Counsel, Federal
Energy Regulatory Commission, 888 First Street NE, Washington, DC
20426,<PHONE_NUMBER>
Mark Bennett (legal issues), Office of the General Counsel, Federal
Energy Regulatory Commission, 888 First Street NE, Washington, DC
20426,<PHONE_NUMBER>

SUPPLEMENTARY INFORMATION:

Table of Contents

                                                         Paragraph Nos.

I. Overview..........................................                  1
II. Background.......................................                  2
    A. NAESB and Past Standards......................                  2
    B. Summary of NAESB WEQ Version 003.3............                  8
III. Discussion......................................                 15
    A. Internet Security.............................                 16
        1. Cybersecurity.............................                 16
        2. Accreditation Requirements for Authorized                  21
         Certificate Authorities.....................
    B. Parallel Flow Visualization...................                 23
    C. Revisions to WEQ OASIS Business Practice                       30
     Standards in Light of Commission Policies.......
        1. Overview..................................                 30
        2. Posting of Third Party Offers of Planning                  31
         Redispatch Services.........................
        3. Information for Firm Transmission Service                  32
         Curtailments................................
    D. Revised and New Standards Designed To                          40
     Complement NERC Reliability Standards and
     Developments....................................
        1. Available Transfer Capacity...............                 41
        2. Standards To Ensure Electronic Tagging (e-                 73
         Tagging)....................................
        3. E-Tagging Commercial Timing...............                 75
    E. Revisions to WEQ Business Practice Standards                   77
     Not Requested by Commission or Developed To
     Comply With a Commission Directive..............
        1. OASIS Transparency, Consistency, and                       78
         Efficiency Changes..........................
IV. Implementation Schedule..........................                 84
V. Incorporation by Reference........................                 87
VI. Environmental Analysis...........................                113
VII. Regulatory Flexibility Act Certification........                114
VIII. Comment Procedures.............................                117
IX. Document Availability............................                121

I. Overview

    1. On March 30, 2020, the North American Energy Standards Board
(NAESB) filed a report (NAESB WEQ Version 003.3 Report) with the
Commission informing the Commission that it had adopted and published
the Wholesale Electric Quadrant (WEQ) Version 003.3 Business Practice
Standards for Public Utilities (WEQ Version 003.3 Standards).\1\ NAESB
states that the WEQ Version 003.3 Standards include newly created
standards as well as modifications to existing standards developed
through the NAESB Business Practice Standards development or minor
correction processes. The WEQ Version 003.3 Standards include revisions
related to the surety assessment on cybersecurity performed by Sandia
National Laboratories (Sandia) designed to strengthen the practices and
cybersecurity protections established within the standards. NAESB also
revised its OASIS suite of standards,\2\ including additions and
revisions to support new OASIS functionality that will allow for the
posting of third party offers of planning redispatch services as well
as providing additional information regarding the curtailment of firm
transmission service. In addition, the WEQ Version 003.3 Standards
include additions and revisions to the NAESB WEQ-023 Modeling Business
Practice Standards. We address the changes proposed by NAESB in their
entirety herein.
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    \1\ See Docket No. RM05-5-029, Report of the North American
Energy Standards Board on Wholesale Electric Quadrant Business
Practice Standards Version 003.3 under RM05-5-000 (Mar. 30, 2020)
(NAESB WEQ Version 003.3 Report).
    \2\ The OASIS suite of standards are the WEQ-001 OASIS Business
Practice Standards, the WEQ-002 OASIS Standards and Communication
Protocols Business Practice Standards, the WEQ-003 OASIS Data
Dictionary Business Practice Standards, and the WEQ-013 OASIS
Implementation Guide Business Practice Standards.

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II. Background

A. NAESB and Past Standards

    2. NAESB is a non-profit standards development organization
established in late 2001 (as the successor to the Gas Industry
Standards Board (GISB), which was established in 1994) and serves as an
industry forum for the development of business practice standards and
communication protocols for the wholesale and retail natural gas and
electricity industry sectors. Since 1995, NAESB's predecessor GISB and
subsequently NAESB itself have been accredited members of the American
National Standards Institute (ANSI), complying with ANSI's requirements
that its standards reflect a consensus of the affected industries.\3\
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    \3\ Prior to the establishment of NAESB in 2001, the
Commission's development of business practice standards for the
wholesale electric industry was aided by two ad hoc industry working
groups established during the rulemaking proceeding that resulted in
issuance of Order No. 889 and the creation of the OASIS, while
GISB's efforts involved the development of business practice
standards for the wholesale natural gas industry. Once formally
established, NAESB took over the standards development previously
handled by GISB and by the electric working groups.
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    3. NAESB's standards include business practices intended to
standardize and streamline the transactional processes of the natural
gas and electric industries, as well as communication protocols and
related standards designed to improve the efficiency of communication
within each industry. NAESB supports all three quadrants of the gas and
electric industries--wholesale gas, wholesale electric, and retail
markets quadrant.\4\ All participants in the gas and electric
industries are eligible to join NAESB and participate in standards
development.
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    \4\ The retail gas quadrant and the retail electric quadrant
were combined into the retail markets quadrant. NAESB continues to
refer to these working groups as ``quadrants'' even though there are
now only three quadrants.
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    4. NAESB develops its standards under a consensus process so that
the standards draw support from a wide range of industry members.
NAESB's procedures are designed to ensure that all persons choosing to
participate can have input into the development of a standard,
regardless of whether they are members of NAESB, and each standard
NAESB adopts must be supported by a consensus of the relevant industry
segments. Standards that fail to gain consensus support are not
adopted. NAESB's consistent practice has been to submit a report to the
Commission after it has revised existing business practice standards or
has developed and adopted new business practice standards. NAESB's
standards are initially voluntary standards, which become mandatory for
public utilities upon incorporation by reference by the Commission.
    5. NAESB filed its WEQ Version 003.2 Business Practices Standards
(WEQ 003.2 Standards) on December 8, 2017, in Docket No. RM05-5-027.\5\
After consideration of the December 8 filing, the Commission issued the
WEQ Version 003.2 NOPR on May 16, 2019, wherein the Commission proposed
to incorporate the WEQ Version 003.2 Standards, with certain enumerated
exceptions.\6\ The Commission announced that NAESB's WEQ-023 Modeling
Business Practice Standards would be addressed separately, only
incorporating by reference the WEQ-023 Modeling Business Practice
Standards that were moved from the WEQ-001 OASIS Business Practice
Standards by the changes made to the WEQ Version 003.1 Standards.\7\
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    \5\ See Docket No. RM05-5-027, Report of the North American
Energy Standards Board on Wholesale Electric Quadrant Business
Practice Standards Version 003.2 under RM05-5 (Dec. 8, 2017).
    \6\ See Standards for Bus. Practices & Commc'n Protocols for
Pub. Utils., Notice of Proposed Rulemaking, 167 FERC ] 61,127 (2019)
(WEQ Version 003.2 NOPR).
    \7\ See Standards for Bus. Practices & Commc'n Protocols for
Pub. Utils., Notice of Proposed Rulemaking, 156 FERC ] 61,055, at P
42 (2016) (WEQ Version 003.1 NOPR); WEQ Version 003.2 NOPR, 167 FERC
] 61,127 at P 2.
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    6. On February 4, 2020, the Commission issued Order No. 676-I,\8\
in which it amended its regulations under the Federal Power Act (FPA)
\9\ to incorporate by reference into its regulations as mandatory
enforceable requirements, with certain enumerated exceptions, the
latest version (Version 003.2) of the Standards for Business Practices
and Communication Protocols for Public Utilities adopted by NAESB. The
WEQ Version 003.2 Standards included the changes proposed in WEQ
Version 003.1 Standards, which were the subject of an earlier notice of
proposed rulemaking.\10\
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    \8\ Standards for Bus. Practices & Commc'n Protocols for Pub.
Utils., Order No. 676-I, 85 FR 10571 (Feb. 25, 2020), 170 FERC ]
61,062 (2020).
    \9\ 16 U.S.C. 791a, et seq. (2018).
    \10\ NAESB filed WEQ Version 003.1 of the Standards for Business
Practices and Communication Protocols for Public Utilities as a
package on October 26, 2015 (October 2015 Filing). See, e.g., WEQ
Version 003.1 NOPR 167 FERC ] 61, 127.
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    7. Among the NAESB Business Practice Standards incorporated by
reference in Order No. 676-I, the Commission incorporated by reference
the WEQ-022 Electric Industry Registry (EIR) Business Practice
Standards but did not to incorporate by reference in its entirety the
WEQ-023 Modeling Business Practice Standards. The Commission only
incorporated by reference the WEQ-023 Modeling Business Practice
Standards that were moved from the WEQ-001 OASIS Business Practice
Standards by the changes made to the WEQ Version 003.1 Standards.\11\
The Commission declined to adopt the remaining WEQ-023 Modeling
Business Practice Standards as they were the subject of a separate
proceeding.\12\
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    \11\ The following WEQ-023 Modeling Business Practice Standards
were incorporated by reference in Order No. 676-I: WEQ-023-5; WEQ-
023-5.1; WEQ-023-5.1.1; WEQ-023-5.1.2; WEQ-023-<IP_ADDRESS>; WEQ-023-
<IP_ADDRESS>; WEQ-023-<IP_ADDRESS>; WEQ-023-5.1.3; WEQ-023-5.2; WEQ-023-6;
WEQ-023-6.1; WEQ-023-6.1.1; WEQ-023-6.1.2; and WEQ-023-A Appendix A.
    \12\ See Commission proceeding at Docket No. AD15-5-000.
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B. Summary of NAESB WEQ Version 003.3

    8. NAESB's WEQ Version 003.3 Report notified the Commission that it
had adopted and published the WEQ Version 003.3 Standards for Public
Utilities. NAESB reports that the WEQ Version 003.3 Standards include
newly created standards as well as modifications to existing standards
developed through the NAESB Business Practice Standards development or
minor correction processes.\13\ The WEQ Version 003.3 Standards include
additions and revisions to the NAESB WEQ-023 Modeling Business Practice
Standards, which the Commission proposes will now be addressed herein.
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    \13\ See NAESB WEQ Version 003.3 Report, Transmittal at 1-2.
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    9. NAESB's WEQ Version 003.3 Standards include modifications,
reservations, and/or additions to the following set of existing
standards: \14\
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    \14\ Id. at 3.

------------------------------------------------------------------------
             WEQ                      Business practice standards
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000..........................  Abbreviations, Acronyms, and Definition
                                of Terms
001..........................  Open Access Same-Time Information System
                                (OASIS)
002..........................  OASIS Standards and Communication
                                Protocols (S&CP)

003..........................  OASIS S&CP Data Dictionaries
004..........................  Coordinate Interchange
008..........................  Transmission Loading Relief (TLR)--
                                Eastern Interconnection Business
                                Practice Standards
013..........................  OASIS Implementation Guide
023..........................  Modeling
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    10. The WEQ Version 003.3 Standards also include revisions related
to the surety assessment on cybersecurity performed by Sandia. NAESB
responded to a U.S. Department of Energy (DOE) request that NAESB act
on an expedited basis to ensure the cybersecurity standards developed
in response to the surety assessment were included in the WEQ Version
003.3 Standards.\15\ NAESB reports that the changes strengthen the
practices and cybersecurity protections established within the
standards by aligning security requirements with other cybersecurity
guidelines, mitigating potential vulnerabilities, and incorporating
more secure communication and encryption methodologies.
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    \15\ Id. at 3-4.
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    11. To support directives contained in Order No. 890,\16\ NAESB
also revised the OASIS suite of standards. The WEQ Version 003.3
Standards include additions and revisions to support new OASIS
functionality that will allow for the posting of third party offers of
planning redispatch services (WEQ-001-13.2) as well as providing
additional information regarding the curtailment of firm transmission
service (WEQ-001-28) prescribed in the OASIS suite of standards.\17\ In
response to Order No. 676-I, NAESB also revised the standards as
necessary to conform with the Commission's Dynegy policy, and stated
that any standards from these efforts will be incorporated into future
versions of the WEQ Business Practice Standards.
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    \16\ Preventing Undue Discrimination & Preference in
Transmission Serv., Order No. 890, 118 FERC ] 61,119, order on
reh'g, Order No. 890-A, 121 FERC ] 61,297 (2007), order on reh'g,
Order No. 890-B, 123 FERC ] 61,299 (2008), order on reh'g, Order No.
890-C, 126 FERC ] 61,228, order on clarification, Order No. 890-D,
129 FERC ] 61,126 (2009).
    \17\ NAESB WEQ Version 003.3 Report at 4. WEQ-001-13.2 adds new
Third Party Offers for Planning Redispatch Services Business
Practice Standards to allow for posting of third-party offers of
planning redispatch services. WEQ-001-28 adds new Curtailment
Posting Requirements Business Practice Standards for the posting of
additional information on OASIS regarding firm transmission
curtailments.
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    12. The WEQ Version 003.3 Standards also include changes that were
made to support consistency with the North American Electric
Reliability Corporation (NERC) Reliability Standards, including NERC's
retirement of the NERC Interchange Scheduling and Coordination
Reliability Standards and retirement of the NERC Modeling, Data, and
Analysis Reliability Standards. NAESB coordinated with NERC to make
modifications and revisions pertaining to electronic tagging (e-
Tagging),\18\ and, as well, the calculation of ATC and AFC.\19\
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    \18\ With respect to e-Tagging, NAESB also modified the WEQ-004
Coordinate Interchange Business Practice Standards' Commercial
Timing Tables to clarify commercial timing requirements.
    \19\ NAESB WEQ Version 003.3 Report at 4.
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    13. The WEQ Version 003.3 Standards also include additions,
revisions, and reservations made to the WEQ-008 Transmission Load
Relief (TLR)--Eastern Interconnection Business Practice Standards,
which NAESB advises completes the standards development effort for the
Parallel Flow Visualization (PFV) enhanced congestion management
process.\20\ The PFV standards are the culmination of a multi-year
coordination effort between NAESB, NERC, and EIDSN, Inc.,\21\ and the
standards are designed to improve upon the congestion management
procedures for the Eastern Interconnection through the use of real-time
data in calculations for transmission loading relief obligations.
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    \20\ Id.
    \21\ Comprised of North American Reliability Coordinators,
Transmission Operators, Transmission Owners, and Balancing
Authorities, EIDSN, Inc. manages the Electric Information Network
(EInet), a data-sharing network for its members to promote the
reliable and efficient operation of the Eastern and Quebec
Interconnections. See EIDSN, Inc., Our Mission, https://eidsn.org/.
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    14. Moreover, as part of the standards development process, NAESB
made five additional revisions to the OASIS suite of standards that
were not made in response to Commission orders.\22\ First, NAESB
modified the OASIS suite of standards to improve OASIS query
functionalities. Second, NAESB modified the OASIS suite of standards
for new OASIS functionality to fully document all encumbrances to
unconditional firm transmission service, such as untagged pseudo-ties.
Third, NAESB modified the OASIS suite of standards to expand notice
functionality and establish requirements for providing dynamic
notification to transmission customers of the renewal deadline for
rollover rights for point-to-point transmission service. Fourth, NAESB
modified WEQ-001 OASIS Business Practice Standards for use of Next Hour
Market Service and the 0-NX transmission product codes. Fifth, NAESB
modified the OASIS suite of standards to modify Network Integration
Transmission Service (NITS) requirements. Finally, NAESB revised the
OASIS suite of standards to make three minor corrections.\23\
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    \22\ NAESB WEQ Version 003.3 Report at 5.
    \23\ Minor corrections were made to the WEQ-001 OASIS Business
Practice Standards and the WEQ-003 OASIS Data Dictionary Business
Practice Standards.
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III. Discussion

    15. As discussed below, with certain enumerated exceptions, we
propose to incorporate by reference (into the Commission's regulations
at 18 CFR 38.1(b)) the NAESB WEQ Version 003.3 Standards.\24\ While the
Commission only recently incorporated Version 003.2 in its regulations,
we are proposing to move forward on Version 003.3 because this Version
of the standards contains a number of major initiatives whose
incorporation by reference will improve the security and the efficiency
of business transactions. These include enhanced cybersecurity
standards resulting from an assessment by Sandia, improved
methodologies for resolving transmission loading relief, and standards
for determining available transfer capacity.
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    \24\ Consistent with our past practice, we do not propose to
incorporate by reference into the Commission's regulations the
following standards: Standards of Conduct for Electric Transmission
Providers (WEQ-009); Contracts Related Standards (WEQ-010); and WEQ/
WGQ eTariff Related Standards (WEQ-014). We do not propose to
incorporate by reference standard WEQ-009 because it contains no
substantive standards and merely serves as a placeholder for future
standards. We do not propose to incorporate by reference standard
WEQ-010 because this standard contains an optional NAESB contract
regarding funds transfers and the Commission does not require
utilities to use such contracts. We are not proposing to incorporate
by reference standard WEQ-014, because the Commission has already
adopted standards and protocols for electronic tariff filings based
on the NAESB Standards.

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A. Internet Security

1. Cybersecurity
    16. The WEQ Version 003.3 Standards include revisions undertaken by
NAESB at the request of the DOE to develop standards that address the
cybersecurity-related recommendations made by Sandia contained within
its surety assessment.\25\ In response to the Sandia surety assessment,
NAESB proposed changes to improve cybersecurity in the WEQ-000
Abbreviations, Acronyms, and Definition of Terms Business Practice
Standards, the WEQ-001 OASIS Business Practice Standards, and the WEQ-
002 OASIS Standards and Communication Protocols Business Practice
Standards.\26\
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    \25\ The Sandia surety assessment also focused on the Wholesale
Gas Quadrant (WGQ) and Retail Markets Quadrant (RMQ) Internet
Electronic Transport and Electronic Delivery Mechanism Standards;
and a high-level dependency analysis between the gas and electric
markets to evaluate the different security paradigms employed by the
markets.
    \26\ See Appendix I.
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    17. These proposed changes, which are listed in Appendix I,
represent NAESB's response to Sandia's surety assessment on
cybersecurity. In recognition of the stand-alone nature of these
proposed changes, and that DOE requested that NAESB act on an expedited
basis to ensure the cybersecurity standards were included in the WEQ
Version 003.3 Standards, the Commission is proposing to incorporate
these standards by reference with an implementation timeline different
from the rest of the proposed modifications included in the WEQ Version
003.3 Standards. As discussed in more detail below, the Commission
proposes that industry filers submit compliance filings for these
revised cybersecurity standards, set forth in Appendix I, nine months
after the publication of a final rule in this proceeding, with
implementation required no sooner than three months after compliance
filings are submitted to the Commission, for a total implementation
period of at least 12 months.
    18. For the revised cybersecurity standards, NAESB modified the
OASIS suite of standards, including WEQ-001 OASIS Business Practice
Standards and WEQ-002 OASIS Standards and Communication Protocols
Business Practice Standards to: (1) Align the standards' security
requirements with other cybersecurity guidelines and best practices;
(2) remove legacy functionality that potentially provides a vehicle for
cyber-attacks; and (3) incorporate more secure communication and
encryption methodologies.\27\ Specifically, NAESB revised WEQ-001-
13.1.3 to include a reference to 18 CFR 37.7.\28\ NAESB revised WEQ-
002-5 to require transmission providers or the agent to whom a
transmission provider has delegated the responsibility of meeting any
requirements associated with OASIS, referred to as a Transmission
Services Information Provider (TSIP), to apply industry-recognized best
practices in the implementation and maintenance of OASIS nodes and
supporting infrastructure. Included in these modifications is a
requirement that TSIPs implement guidelines for user passwords and
authentication aligned with National Institute of Standards and
Technology (NIST) Special Publication (SP) 800-63B. WEQ-002-5 was also
modified to require TSIPs to use cryptographic models that conform to
the NIST Federal Information Processing Standards (FIPS) Publication
140-3.
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    \27\ NAESB WEQ Version 003.3 Report at 9.
    \28\ See 18 CFR 37.7 (Auditing Transmission Service
Information).
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    19. To protect OASIS nodes, NAESB further revised WEQ-002-5 to
require TSIPs to: (1) Incorporate firewalls, intrusion detection, and
intrusion prevention systems; (2) ensure OASIS applications are secure
against common industry recognized vulnerabilities; (3) apply software
patches and updates in a timely fashion, ideally within seven days of
availability; and (4) perform quarterly vulnerability scans and
penetration testing as well as annual business continuity and disaster
recovery exercises.\29\ Additionally, WEQ-002-5 includes a requirement
that, at least on an annual basis, TSIPs review their OASIS nodes and
make any necessary changes to implementation to conform with updates to
the industry recognized best practices.
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    \29\ NAESB WEQ Version 003.3 Report at 8.
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    20. NAESB revised WEQ-002-2.3 to require the use of Transportation
Layer Security (TLS) Version 1.2 or higher, consistent with NIST 800-52
which now requires the use of TLS Version 1.2, and the utilization of
TLS Version 1.3 by January 1, 2024. WEQ-002-2.3 and WEQ-002-5.1.1 were
revised to require the use of a Hypertext Transfer Protocol Secure
(HTTPS) connection to access information posted on OASIS, including the
use of server-side only HTTPS connections to access information that
must be made publicly available. All references within the standards to
Hypertext Transfer Protocol (HTTP) were removed or modified to
HTTPS.\30\ Finally, NAESB revised WEQ-002-2.3 and WEQ-002-2.4 to remove
language that required the use of communication protocols and internet
tools to support private internet and dial-up internet connections,
which were deemed outdated and no longer utilized by the industry.\31\
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    \30\ Id. at 7-8.
    \31\ Id. at 8.
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2. Accreditation Requirements for Authorized Certificate Authorities
    21. In response to the Sandia surety assessment, NAESB revised the
specification document, titled the NAESB Accreditation Requirements for
Authorized Certificate Authorities, which establishes technical
requirements for issuing digital certificates under the WEQ-012 Public
Key Infrastructure (PKI) Business Practice Standards.\32\ NAESB reports
that the new version of the specification document enables secure
electronic commercial transactions via data encryption and entity
authentication. NAESB states the revisions will help to ensure that the
digital certificates issued by NAESB Authorized Certificate Authorities
under the WEQ-012 PKI Business Practice Standards will continue to
provide secure communications necessary to carry out commercial
transactions, including e-Tagging as well as the accessing OASIS nodes
and the NAESB EIR.
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    \32\ The NAESB Accreditation Requirements for Authorized
Certificate Authorities is a 33-paged specification document that is
not a standard, and, as such, membership ratification is not
required per the NAESB process. The specification document became
effective for industry use on February 19, 2020. See NAESB, NAESB
Accreditation Requirements for Authorized Certification Authorities,
https://www.naesb.org/PKI/AssuranceLevel/.
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    22. NAESB's cybersecurity-related changes to the WEQ-000
Abbreviations, Acronyms, and Definition of Terms Business Practice
Standards, the WEQ-001 OASIS Business Practice Standards, and the WEQ-
002 OASIS Standards and Communication Protocols Business Practice
Standards appear reasonable and do not appear inconsistent with any
Commission directives or findings in other orders. Accordingly, we
propose to incorporate by reference, into the Commission's regulations
at 18 CFR 38.1(b), NAESB's revised cybersecurity standards in WEQ-000,
WEQ-001, and WEQ-002, as set forth in the WEQ Version 003.3 Standards.

B. Parallel Flow Visualization

    23. NAESB's WEQ Version 003.3 Standards include modifications to
the WEQ-008 Transmission Loading Relief

(TLR)--Eastern Interconnection Business Practice Standards to improve
the congestion management process by incorporating PFV.\33\ This
standards development effort was the result of a multi-year
coordination effort beginning in 2006 \34\ between NAESB, NERC, and
EIDSN, Inc. According to NAESB, a recent field trial of the PFV process
conducted by EIDSN, Inc. indicated that it provides a more accurate
model of the electric system than the current process. NAESB also
asserts that the field trial shows that the PFV process provides a
better analysis of the impacts on flowgates and assigns transmission
loading relief obligations more accurately.
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    \33\ See NAESB WEQ Version 003.3 Report at 12. To support PFV,
NAESB also made consistency changes to the WEQ-000 Abbreviations,
Acronyms, and Definition of Terms Business Practice Standards, the
WEQ-001 OASIS Business Practice Standards, the WEQ-002 OASIS
Standards and Communication Protocols Business Practice Standards,
the WEQ-004 Coordinate Interchange Business Practice Standards, and
the WEQ-013 OASIS Implementation Guide Business Practice Standards.
    \34\ The PFV standards development process was the subject of
eight previous status reports filed with the Commission in Docket
No. EL14-82-000.
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    24. The current congestion management procedure for the Eastern
Interconnection considers e-Tags, market flows, and the network and
native load (NNL) calculations to allocate relief obligations on a pro-
rata basis. However, this process can sometimes cause a deviation
between the actual, real-time impacts and the calculated NNL impacts
used for relief obligation as the NNL calculation uses static data and
assumes that all generators in the Eastern Interconnection have firm
transmission service. Under the PFV enhanced congestion management
process, the market flows and NNL calculation are replaced by the
generation-to-load impact, which uses real-time data reported by the
balancing authorities to determine the calculated energy flows on a
flowgate and assign relief obligations during a transmission loading
relief event.
    25. The revised WEQ-008 Transmission Loading Relief (TLR)--Eastern
Interconnection Business Practice Standards require a balancing
authority to elect one of two different methodologies for assigning
curtailment priorities: Tag Secondary Network Transmission Service
Method (TSNTS Method) or Generator Prioritization Method (GP Method).
In the TSNTS Method, e-Tags are used to establish curtailment priority
and entities using this methodology must tag not only inter-balancing
authority transactions but also intra-balancing authority transactions,
including pseudo-ties. Under the GP Method, a generator schedule is
used, which lists the firm and non-firm transmission priorities of each
generator to determine the assignment of curtailments. The revised WEQ-
008 Transmission Loading Relief (TLR)--Eastern Interconnection Business
Practice Standards also allow entities with seams agreements
incorporated into their tariffs or other governing documents to submit
to the Interchange Distribution Calculator (IDC) tool \35\ overrides to
transmission priorities for those flowgates that are documented in the
agreements.\36\
---------------------------------------------------------------------------

    \35\ The revised WEQ-008 Transmission Loading Relief (TLR)--
Eastern Interconnection Business Practice Standards define the IDC
as ``[a] tool used by the [Reliability Coordinators] in the Eastern
Interconnection which calculates the distribution of energy flows
over specific flowgates and is used for assigning relief obligations
and curtailments.'' The revised standards require the IDC to support
the display of all impacts, including generation-to-load impacts,
and other interchange transactions and intra-balancing authority
transactions. The impacts on a flowgate are to be displayed at the
user specified level of granularity, including the amount of impact,
amount of transaction or output, and priority of transaction.
    \36\ NAESB WEQ Version 003.3 Report at 13.
---------------------------------------------------------------------------

    26. For entities opting to use the TSNTS Method, relief obligations
are assigned through curtailments utilizing the expanded e-Tagging
requirements. Together, the expanded, real-time data provided to the
IDC tool under both the TSNTS Method and the GP Method results in a
more accurate calculation of system impacts and provides reliability
coordinators in the Eastern Interconnection an improved view of the
current operating state of the bulk electric system through increased
visibility of the source and magnitude of parallel interchange flows.
    27. In addition, the revised WEQ-008 Transmission Loading Relief
(TLR)--Eastern Interconnection Business Practice Standards establish a
System Data Exchange (SDX) as a central repository administered by an
association of reliability coordinators in the Eastern Interconnection
that is a data source for the IDC. The SDX supports data submission for
dynamic schedules and pseudo-ties for the two new methodologies (i.e.,
the TSNTS Method and the GP Method) for assigning curtailment
priorities.
    28. The revised WEQ-008 Transmission Loading Relief (TLR)--Eastern
Interconnection Business Practice Standards specify the process for
balancing authorities to make an initial declaration of which of the
two methodologies will be used for assigning curtailment priorities,
the process for subsequent switching between methodologies (which
requires a minimum of 180 calendar days' advance notice to the affected
load serving entities), and the process for designating network
resources when balancing authority areas are consolidated. Conforming
changes are also made to the WEQ-008 Transmission Loading Relief
(TLR)--Eastern Interconnection Business Practice Standards which
describe in detail the steps to be taken when transmission loading
relief procedures are invoked, primarily to ensure that generation-to-
load impacts, lower priority secondary network transmission service,
transactions using non-firm grandfathered transmission service, non-
firm point-to-point intra balancing authority transactions not tagged,
non-firm pseudo-ties, and transactions for dynamic schedules that use
lower priority non-firm transmission service are included in the
calculation when assigning curtailment and relief obligations.
    29. NAESB's revisions to WEQ-008 Transmission Loading Relief
(TLR)--Eastern Interconnection Business Practice Standards do not
appear inconsistent with any Commission directives or findings in other
orders. Accordingly, we propose to incorporate by reference, into the
Commission's regulations at 18 CFR 38.1(b), NAESB's revised standards
that modify the WEQ-008 Transmission Loading Relief (TLR)--Eastern
Interconnection Business Practice Standards, as set forth in the WEQ
Version 003.3 Standards.

C. Revisions to WEQ OASIS Business Practice Standards in Light of
Commission Policies

1. Overview
    30. The NAESB WEQ Version 003.3 Standards contain three
modifications to the OASIS suite of standards that NAESB developed to
ensure consistency with certain policies articulated by the Commission
in Order Nos. 676-I and 890. NAESB addressed the final two directives
contained in FERC Order No. 890. First, NAESB modified pertinent
standards \37\ to support new OASIS functionality that allows for the
posting of third party offers of planning redispatch services, as well
as provide additional information regarding the curtailment of firm
transmission

service.\38\ NAESB also revised WEQ-001 to strike the preamble language
in WEQ-001-9 and WEQ-001-10 consistent with Commission Action in Order
No. 676-I.
---------------------------------------------------------------------------

    \37\ NAESB modified the WEQ-000 Abbreviations, Acronyms, and
Definition of Terms Business Practice Standards, the WEQ-001 OASIS
Business Practice Standards, the WEQ-002 OASIS Standards and
Communication Protocols Business Practice Standards, the WEQ-003
OASIS Data Dictionary Business Practice Standards, and the WEQ-013
OASIS Implementation Guide Business Practice Standards.
    \38\ NAESB WEQ Version 003.3 Report at 4.
---------------------------------------------------------------------------

2. Posting of Third Party Offers of Planning Redispatch Services
    31. Order No. 890 required that ``transmission providers modify
their OASIS to allow for the posting of third party offers to supply
planning redispatch,'' \39\ and the Commission reiterated the directive
in Order 890-B.\40\ In response, NAESB modified the OASIS suite of
standards to clarify the roles and responsibilities of the third party
providing the redispatch service, the transmission customer acquiring
the planning redispatch service, and the transmission provider that
provides the platform on OASIS for posting the planning redispatch
service offer. As part of these OASIS suite of standards modifications,
NAESB established two new OASIS templates \41\ to support the posting
by a transmission provider of third party offers of planning redispatch
service. The first new template is dedicated to capturing generator
information that may be used in a planning redispatch offer, including
the identification of the generating unit(s) and the host balancing
authority area. The second new template provides planning redispatch
offer parameters, such as the identification of the redispatch
generator, the amount of capacity over time, cost, and the flowgate(s)
where congestion can be relieved. NAESB reports that the new process
increases efficiency for third parties by allowing the third parties to
reference a generator as part of a redispatch offer and no longer
requires third parties to reproduce the same generator information each
time an offer is made. Accordingly, we propose to incorporate by
reference, into the Commission's regulations at 18 CFR 38.1(b), NAESB's
revised OASIS suite of standards \42\ that established two new OASIS
templates that support the optional posting by a transmission provider
of third party offers of planning redispatch service, as set forth in
NAESB's WEQ Version 003.3 Business Practice Standards.
---------------------------------------------------------------------------

    \39\ Order No. 890, 118 FERC ] 61,119 at P 1139.
    \40\ Order No. 890-B, 123 FERC ] 61,299 at P 131.
    \41\ See WEQ 013-3.9 and WEQ 013-3.10.
    \42\ NAESB modified the WEQ-000 Abbreviations, Acronyms, and
Definition of Terms Business Practice Standards, the WEQ-001 OASIS
Business Practice Standards, the WEQ-002 OASIS Standards and
Communication Protocols Business Practice Standards, the WEQ-003
OASIS Data Dictionary Business Practice Standards, and the WEQ-013
OASIS Implementation Guide Business Practice Standards.
---------------------------------------------------------------------------

3. Information for Firm Transmission Service Curtailments
    32. Order No. 890 requires transmission providers to post to OASIS
``all circumstances and events contributing to the need for a firm
service curtailment, specific services and customers curtailed
(including the transmission provider's own retail loads), and the
duration of the curtailment.'' \43\ In response, NAESB made additional
modifications to the OASIS suite of standards, as well as consistency
changes to WEQ-000 Abbreviations, Acronyms, and Definition of Terms
Business Practice Standards. NAESB's changes to the standards included
modifications to existing templates and the creation of two new
templates to provide the mechanism for transmission providers to post
the required additional information regarding the curtailment of firm
transmission service, including the curtailment of non-firm
transmission service that preceded any firm transmission curtailments.
---------------------------------------------------------------------------

    \43\ Order No. 890, 118 FERC ] 61,119 at P 1627.
---------------------------------------------------------------------------

    33. NAESB states that three issues arose as part of this standards
development process. First, NAESB states that the information needed to
meet the posting requirements is contained in two separate tools: The
Interchange Distribution Calculator (IDC) tool for the Eastern
Interconnection, managed by EIDSN, Inc., and the Enhanced Curtailment
Calculator (ECC) tool for the Western Interconnection, managed by
California Independent System Operator (CAISO). Although both the IDC
and ECC tools produce information to be posted to OASIS in accordance
with the standards, NAESB states that its members determined that the
need for a mechanism to transfer data from the tools to OASIS should be
addressed as part of any industry implementation rather than through
standards modifications.
    34. Second, as part of the Order No. 890 standards development
efforts, NAESB and its stakeholders examined FERC Order Nos. 845 \44\
and 845-A to gauge their potential effect on the NAESB effort.\45\
NAESB and its stakeholders concluded, absent specific direction from
the Commission to the contrary, that the issues raised in these orders
were separate and distinct from the directive in FERC Order 890; NAESB
therefore completed the Order No. 890 standards development
requirements.
---------------------------------------------------------------------------

    \44\ Reform of Generator Interconnection Procedures &
Agreements, Order No. 845, 163 FERC ] 61,043 (2018).
    \45\ As part of FERC Order No. 845, the Commission declined to
impose additional requirements on transmission providers to post on
OASIS certain, specific information regarding congestion and
curtailments. Order No. 845, 163 FERC ] 61,043 at P 271. The
Commission confirmed this decision in FERC Order No. 845-A,
reiterating that transmission providers already publish data related
to congestion and curtailments and noting that a significant amount
of curtailment data is available through the NERC TLR logs. Id. P
92.
---------------------------------------------------------------------------

    35. Third, NAESB notes that the standards include a requirement
that transmission providers post information related to the curtailment
of non-firm transmission in order to provide transmission customers
with complete transparency regarding all firm transmission
curtailments. NAESB states its stakeholders largely concluded that
posting information about non-firm curtailments to OASIS fully
addresses the directive in FERC Order No. 890 that information be
posted regarding all circumstances contributing to the need for firm
transmission service curtailment.
    36. NAESB's revised standards appear consistent with the
Commission's directive in Order No. 890. In Order No. 890, the
Commission required ``transmission providers, working through NAESB, to
develop a detailed template for the posting of additional information
on OASIS regarding firm transmission curtailments.'' \46\ Moreover, the
Commission further stated that ``Transmission providers need not
implement this new OASIS functionality and any related business
practices until NAESB develops appropriate standards.'' \47\ NAESB
states that it does not intend to develop standards to facilitate the
required posting of this additional information on OASIS, but instead
``by consensus it was determined that the issue should be addressed as
part of any industry implementation rather than through standards
modifications.'' \48\
---------------------------------------------------------------------------

    \46\ Order No. 890, 118 FERC ] 61,119 at P 1627.
    \47\ Id.
    \48\ NAESB WEQ Version 003.3 Report at 11.
---------------------------------------------------------------------------

    37. NAESB states that the information needed to meet the posting
requirements is contained in the IDC and ECC tools for Eastern
Interconnection and Western Interconnection and that the need for a
mechanism to transfer data from the tools to OASIS, should be addressed
as part of any industry implementation rather than through NAESB within
a standards modification and development process.
    38. NAESB's modifications and consistency changes to address the

directive in FERC Order No. 890 appear reasonable and do not appear
inconsistent with any Commission directives or findings in other
orders. Accordingly, we propose to incorporate by reference, into the
Commission's regulations at 18 CFR 38.1(b), NAESB's modifications to
the OASIS suite of standards,\49\ as well as consistency changes to
WEQ-000 Abbreviations, Acronyms, and Definition of Terms Business
Practice Standards to support the final FERC Order No. 890 directive,
as set forth in the WEQ Version 003.3 Standards.
---------------------------------------------------------------------------

    \49\ NAESB modified the WEQ-001 OASIS Business Practice
Standards, the WEQ-002 OASIS Standards and Communication Protocols
Business Practice Standards, the WEQ-003 OASIS Data Dictionary
Business Practice Standards, and the WEQ-013 OASIS Implementation
Guide Business Practice Standards.
---------------------------------------------------------------------------

4. WEQ-001-9 and WEQ-001-10 Preambles
    39. In Order No. 676-I, the Commission declined to adopt through
its incorporation by reference process the preamble language in WEQ-
001-9 and WEQ-001-10. The Commission declined to incorporate by
reference the two preambles because they appeared to permit
transmission providers the option to implement their own entity-
specific procedures, which does not help ensure consistency across the
bulk power system.\50\ In the WEQ Version 003.3 Standards, NAESB
proposes to make the changes to each of these Business Practice
Standards to reflect the Commission's Order No. 676-I decision not to
incorporate by reference the preamble language. Accordingly, we propose
to incorporate by reference, into the Commission's regulations at 18
CFR 38.1(b), NAESB's revised WEQ-001-9 and WEQ-001-10, as set forth in
the WEQ Version 003.3 Standards.
---------------------------------------------------------------------------

    \50\ Order No. 676-I, 170 FERC ] 61,062 at PP 37-38.
---------------------------------------------------------------------------

D. Revised and New Standards Designed To Complement NERC Reliability
Standards and Developments

    40. The WEQ Version 003.3 Standards include additions and revisions
to the WEQ-001 OASIS Business Practice Standards, WEQ-004 Coordinate
Interchange Business Practice Standards, and WEQ-023 Modeling Business
Practice Standards, which result from NAESB coordination with NERC.
NAESB developed these additions and revisions in response to NERC's
proposal, initiated via two separate Standards Requests, that NAESB
review the retirements proposed by NERC within the NERC Modeling, Data,
and Analysis (MOD) Reliability Standards \51\ as well as the NERC
Interchange Scheduling and Coordination (INT) Reliability Standards
\52\ in the interest of continued coordination between the
organizations.
---------------------------------------------------------------------------

    \51\ In a February 19, 2014 petition, NERC proposed to retire
Reliability Standards MOD-001-1a, MOD-004-1, MOD-008-1, MOD-028-2,
MOD-029-1a, and MOD-030-2 and requested approval of new Reliability
Standard MOD-001-2. Generally, the ``MOD A'' series of NERC
Reliability Standards pertain to transmission system modeling. The
Commission issued a notice of proposed rulemaking in Docket No.
RM14-7-000 that addressed NERC's proposal. Modeling, Data, &
Analysis Reliability Standards, Notice of Proposed Rulemaking, 147
FERC ] 61,208 (2014) (MOD A NOPR). On June 7, 2019, NERC filed a
notice of withdrawal of its petition and, after not receiving any
protests, was deemed granted. Simultaneously, NERC proposed to
retire the current version of the NERC MOD A standards: MOD-001-1a
(Available Transmission System Capability), MOD-004-1 (Capacity
Benefit Margin), MOD-008-1 (Transmission Reliability Margin
Calculation Methodology), MOD-028-2 (Area Interchange Methodology),
MOD-029-2a (Rated System Path Methodology), and MOD-030-3 (Flowgate
Methodology).
    \52\ NERC submitted Standards Request R19008, requesting that
NAESB review retirements proposed within NERC Reliability Standards
INT-004-3.1, INT-006-5, INT-009-3, and INT-010-2.1.
---------------------------------------------------------------------------

1. Available Transfer Capacity
a. Introduction
    41. Available Transfer Capacity (ATC) is defined to be ``[a]
measure of the transfer capability remaining in the physical
transmission network for further commercial activity over and above
already committed uses.'' \53\ Since Order Nos. 888 and 889 were issued
in 1996, ATC has been a key component of the Commission's open access
transmission policy. The Commission has emphasized the important role
of ATC, stating that ``the calculation of ATC is one of the most
critical functions under the open access transmission tariff (OATT)
because it determines whether transmission customers can access
alternative power supplies.'' \54\ The Commission has noted the broad
range of transmission customers affected by ATC calculations, including
loads, power producers, and power marketers.\55\
---------------------------------------------------------------------------

    \53\ NERC defines the components of ATC as ``Total Transfer
Capability, less Existing Transmission Commitments (including retail
customer service), less a Capacity Benefit Margin, less a
Transmission Reliability Margin plus postbacks and counterflow.''
AFC is defined as ``A measure of the flow capability remaining on a
Flowgate for further commercial activity over and above already
committed uses. It is defined as Total Flowgate Capability less
Existing Transmission Commitments (ETC), less a Capacity Benefit
Margin, less a Transmission Reliability Margin, plus Postbacks, and
plus counterflows.'' See NERC ``Glossary of Terms Used in NERC
Reliability Standard,'' http://nerc.com/files/glossary_of_terms.pdf.
The Commission's regulations contain similar language. See 18 CFR
37.6(b)(1).
    \54\ Mandatory Reliability Standards for the Calculation of
Available Transfer Capability, Capacity Benefit Margins,
Transmission Reliability Margins, Total Transfer Capability, &
Existing Transmission Commitments & Mandatory Reliability Standards
for the Bulk-Power Sys., Order No. 729, 129 FERC ] 61,155, at P 2
(2009).
    \55\ Order No. 890, 118 FERC ] 61,119 at P 195.
---------------------------------------------------------------------------

    42. In Order No. 890, the Commission found that transmission owners
utilized a variety of ATC calculation methodologies and very few clear
rules governed their use.\56\ The complexity created by these multiple
approaches presented obstacles to calculating ATC consistently and
accurately. In Order No. 890, the Commission adopted a number of
reforms addressing the potential for remaining undue discrimination in
the determination of ATC by requiring consistency in how ATC is
evaluated, as well as providing greater transparency about how a
transmission provider calculates and allocates ATC.\57\ In Order No.
890, the Commission directed industry to develop Reliability Standards,
using the NERC Reliability Standards development procedures that
provide for consistency and transparency in the methodologies used by
transmission owners to calculate ATC.\58\ Additionally, the Commission
directed public utilities, working through NAESB, to develop workable
Business Practice Standards to improve the consistency and transparency
of ATC calculations,\59\ while reducing the opportunity for
transmission providers to exercise excessive discretion that could
undermine the overarching policy goal of ensuring non-discriminatory,
open access.
---------------------------------------------------------------------------

    \56\ Id. P 62.
    \57\ Id. P 69.
    \58\ Id. P 196.
    \59\ Id.
---------------------------------------------------------------------------

    43. In response, NERC worked with industry to develop Reliability
Standards improving consistency and transparency of ATC calculation
methodologies, which NERC would audit and enforce. NERC submitted its
MOD standards to the Commission in April 2006.\60\ The MOD standards
related to ATC eventually became known as the MOD A Reliability
Standards. The MOD A Reliability Standards helped to standardize the
methodologies and system data needed for traditional transmission
system operation and expansion planning, reliability assessment and the
calculation of available transfer capability, as well as helping to
enable nondiscriminatory access to the transmission system.
---------------------------------------------------------------------------

    \60\ Id. P 9.
---------------------------------------------------------------------------

    44. In February 2014, NERC petitioned the Commission to permit it

to retire its MOD A ATC Reliability Standards.\61\ NERC argued that ATC
and AFC values are commercial in nature. NERC also asked that the
Commission approve MOD-001-2 which would replace, consolidate and
improve upon the MOD A standards in addressing the reliability issues
associated with the determination of ATC and AFC. At the same time,
NERC requested that NAESB develop business practice standards for the
commercial aspects of ATC and AFC.\62\ NAESB first developed the WEQ-
023 Modeling Business Practice Standards through its stakeholder
process and submitted them to the Commission as part of the WEQ Version
003.1 Standards, filed with the Commission in its October 2015
Filing.\63\ The Commission, however, did not incorporate most of those
standards by reference, because it was still considering NERC's
proposed retirement of MOD A Reliability Standards and had initiated a
proceeding to consider proposed changes to the calculation of ATC.\64\
---------------------------------------------------------------------------

    \61\ Petition of NERC for Approval of Proposed Reliability
Standard MOD-001-2 & Ret. of Reliability Standards MOD-001-1a, MOD-
004-1, MOD-008-1, MOD-028-2, MOD-029-1a & MOD-030-2, Docket No.
RM14-7-000 (Feb. 10, 2014).
    \62\ See, NAESB MOD Effort Status Report under RM05-5, et al.,
Docket No. RM14-7 (Dec. 19, 2014). The Commission subsequently held
a workshop to discuss actions the Commission could take to ensure
that Transmission Providers continue to calculate ATC in a manner
that ensures nondiscriminatory access to wholesale electric
transmission services. See Supplemental Notice of Workshop--New
Date, Docket No. AD15-5-000 (Mar. 31, 2015). The Transcript of the
April 21, 2015 technical workshop on available transmission
capability held in Washington, DC is available in eLibrary under
Docket No. AD15-5-000.
    \63\ Report of the N. American Energy Standards Bd. on Version
003.1 of the Wholesale Elec. Quadrant Bus. Practice Standards under
RM05-5, Docket No. RM05-5-025 (Oct. 26, 2015).
    \64\ See Available Transfer Capability Standards for Wholesale
Elec. Transmission Services, Docket No. AD15-5-000 (Dec. 30, 2014)
(noticing a Commission staff workshop to discuss actions the
Commission could take to ensure that transmission providers continue
to calculate and post ATC in a manner that ensures nondiscriminatory
access to wholesale electric transmission services).
---------------------------------------------------------------------------

    45. In WEQ Version 003.3, NAESB made additional revisions and
included new standards to the WEQ-023 Modeling Business Practice
Standards: WEQ-023-1 (General Requirements), WEQ-023-2 (ATC
Requirements), WEQ-023-3 (CBM Scheduling Requirements), WEQ-023-4 (TRM
Requirements), which were all developed as a result of NAESB's review
of NERC Reliability Standards MOD-001-1a, MOD-004-1, MOD-008-1, MOD-
028-2, MOD-029-2a, and MOD-030-3, and the proposed NERC Reliability
Standard MOD-001-2.
b. NAESB Standards
    46. In response to NERC's proposed retirement of the MOD A
Reliability Standards NAESB developed the WEQ-023 Modeling Business
Practice Standards. They are composed of six subordinate sections and
an appendix. WEQ-023-1 includes general requirements and lists the
three allowable methodologies for calculating ATC or AFC. WEQ-023-2
describes these three allowable methodologies: area interchange, rated
system path, and flowgate. WEQ-023-3 describes the calculation of
capacity benefit margin (CBM), for those transmission providers that
use CBM. Similarly, WEQ-023-4 describes the calculation of transmission
reliability margin (TRM), for those transmission providers that use
TRM. WEQ-023-5 describes how postbacks should be used. WEQ-023-6
requires a description and posting of grandfathered agreements.
Finally, WEQ-023-A includes a table and examples for the use of
postback conditions in calculation of ATC or AFC. As noted above, the
latter two requirements and the Appendix were incorporated by reference
in Order No. 676-I.
    47. NAESB states that these modifications ensure that all
commercially relevant requirements needed by the industry to calculate
ATC and AFC are included in the WEQ-023 Modeling Business Practice
Standards. The WEQ-023 Modeling Business Practice Standards, in part,
incorporate forty-five requirements and sub-requirements previously
included in NERC Reliability Standard MOD-001-2. The WEQ-023 Modeling
Business Practice Standards also include two new requirements not
previously included in the NERC Reliability Standards addressing
contract path management. These two requirements, which are contained
in WEQ-023-1.4 and WEQ-023-1.4.1, limit the amount of firm transmission
service across a path between balancing authorities to the contract
path limit for that given path.
    48. NAESB also modified WEQ-001-13.1.5 to replace references to the
NERC MOD-A Reliability Standards with references to WEQ-023 Modeling
Business Practice Standards \65\ and made consistency changes to WEQ-
000 Abbreviations, Acronyms, and Definition of Terms Business Practice
Standards.
---------------------------------------------------------------------------

    \65\ WEQ-001-13.1.5 revisions include new links to the Available
Transfer Capability Implementation Document--ATCID, as specified in
1a Business Practice Standard WEQ-023-1.3, previously NERC MOD-001-
1a; the CBM Implementation Document--CBMID, as specified in Business
Practice Standard WEQ-023-1.5, which was previously NERC MOD-004-1,
and the TRM Implementation Document--TRMID as specified in Business
Practice Standard WEQ-023-1.6; previously NERC MOD-008-1.
---------------------------------------------------------------------------

c. Commission Proposal
    49. The Commission stated in Order No. 729 that calculation of ATC
is one of the most critical functions under the OATT, because it
determines whether transmission customers can access alternative power
supplies. It found that the improved transparency and consistency of
ATC calculation methodologies would limit transmission service
providers' wide discretion in calculating ATC and ensure that customers
are treated fairly in seeking alternative power supplies.\66\ Because
of the importance of the ATC calculation and as a result of the
proposed retirement of NERC's MOD A Reliability Standards, the
Commission is proposing to revise its regulations to establish the
general criteria transmission owners must use in calculating ATC. The
Commission also is proposing to adopt the NAESB standards as they
appear generally consistent with those criteria. The Commission,
however, seeks comment herein on whether the NAESB standards could be
improved by providing additional detail to further protect transmission
customers. We seek comment on whether the proposed regulatory text
included below will provide a clear basis for establishing that
transmission provider ATC calculations must be transparent, consistent,
and not unduly discriminatory or preferential. We also seek comment on
whether we should develop additional new regulations to maintain the
current level of detail related to ATC calculations; if so, what level
of detail those regulations should have.
---------------------------------------------------------------------------

    \66\ See Order No. 729, 129 FERC ] 61,155 at P 2.
---------------------------------------------------------------------------

i. Proposed Regulation
    50. The Commission is proposing to revise its regulations governing
the calculation of ATC and TTC in 18 CFR 37.6(b)(2)(i):

    (2) Calculation methods, availability of information, and
requests. (i) Information used to calculate any posting of ATC and
TTC must be dated and time-stamped and all calculations shall be
performed according to consistently applied methodologies referenced
in the Transmission Provider's transmission tariff and shall be
based on Commission-approved Reliability Standards, business
practice and electronic communication standards, and related
implementation documents, as well as current industry practices,
standards and criteria. Transmission Providers shall calculate ATC
and TTC in coordination with

and consistent with capability and usage on neighboring systems,
calculate system capability using factors derived from operations
and planning data for the time frame for which data are being posted
(including anticipated outages), and update ATC and TTC calculations
as inputs change. Such calculations shall be conducted in a manner
that is transparent, consistent, and not unduly discriminatory or
preferential.\67\
---------------------------------------------------------------------------

    \67\ Proposed regulatory text to be added to 18 CFR
37.6(b)(2)(i) is indicated by underlining.

    51. This proposed regulation, in conjunction with the WEQ-023
Modeling Business Practice Standards, will help ensure that all
transmission customers will be treated fairly when seeking alternative
power supplies,\68\ and will provide for comparable and not unduly
discriminatory or preferential treatment of native load customers and
transmission service customers. As the Commission stated in Order No.
729, ``the potential for discrimination and decline in reliability
level does not lie primarily in the choice of an available transfer
capability calculation methodology, but rather in the consistent
application of its components, input and exchange data, and modeling
assumptions.'' \69\ We preliminarily find that this proposed regulation
will ensure that transmission owners implement the NAESB standards in a
way that helps to ensure non-discriminatory treatment to all
transmission customers.
---------------------------------------------------------------------------

    \68\ See Order No. 729, 129 FERC ] 61,155 at P 2.
    \69\ Id. P 11 (citing Order No. 890, 118 FERC ] 61,119 at P
1029).
---------------------------------------------------------------------------

ii. NAESB Standards
    52. We propose to incorporate by reference these WEQ-023 Modeling
Business Practice Standards into the Commission's regulations at 18 CFR
38.1(b). However, as discussed below, we have concerns that certain of
these business practice standards may lack the detail currently
provided by the currently enforceable NERC MOD A Reliability Standards.
Because the calculation of ATC determines whether transmission
customers can access alternative power supplies,\70\ these calculations
have significant commercial implications. Accordingly, we request
parties to submit comments on whether the NAESB Business Practice
Standards WEQ-023-1 (General Requirements), WEQ-023-2 (ATC
Requirements), WEQ-023-3 (CBM Scheduling Requirements), and WEQ-023-4
(TRM Requirements), as explained in the paragraphs below, provide
sufficient details to protect transmission customers. Further, we seek
comment on whether the Commission should start its own process to adopt
more specific regulations regarding ATC calculations or by modifying
the pro forma OATT or, alternatively, ask NAESB to consider providing
additional details and more specific requirements in further revisions
to these standards in a subsequent WEQ Version filing.
---------------------------------------------------------------------------

    \70\ Id. P 2.
---------------------------------------------------------------------------

    53. The currently effective NERC Reliability Standard MOD-001-1a
(General Requirements), which NERC proposes to retire, provides both
transparency into and consistency of ATC computations for transmission
customers. It includes nine requirements, and the loss or replacement
of Requirements R3 through R7 may raise concerns regarding both
transparency and consistency. For example, Requirements R3.6, R3.6.1,
and R3.6.2 of MOD-001-1a require each Transmission Service Provider
\71\ to describe in its ATC Implementation Document (ATCID) how it
accounts for generation and transmission outages. Although NAESB's
proposed revisions in WEQ-023-<IP_ADDRESS> and WEQ-023-1.3.2 require the
Transmission Service Provider to describe how it accounts for outages,
these requirements provide significantly less detail than MOD-001-1a
regarding the means by which the outages should be accounted. This lack
of detail raises concerns of consistency in the ATCID, as specified in
WEQ-023-1.3. We seek comment as to whether these changes could reduce
transparency and consistency in ATC calculations, and if so, how this
should be remedied.
---------------------------------------------------------------------------

    \71\ NERC defines a Transmission Service Provider as ``The
entity that administers the transmission tariff and provides
Transmission Service to Transmission Customers under applicable
Transmission Service agreements.'' See NERC ``Glossary of Terms Used
in NERC Reliability Standard,'' http://nerc.com/files/glossary_of_terms.pdf.
---------------------------------------------------------------------------

    54. Requirements R3.2, R3.2.1, and R3.2.2 of MOD-001-1a require
each Transmission Service Provider to describe how counterflows are
accounted for in its ATCID. NAESB's proposed revisions in WEQ-023-1 do
not require the inclusion of this description in the ATCID, despite the
fact counterflows are a key variable in the determination of ATC. We
seek comment on whether additional information on the incorporation of
counterflows is necessary for increased transparency in ATC
calculations, and if so, how this should be remedied.
    55. Requirement R3.5 of MOD-001-1a requires each Transmission
Service Provider to describe how it allocates transfer or flowgate
capability among multiple lines or sub-paths, among multiple owners or
users, or between Transmission Service Providers in its ATCID. NAESB's
proposed revisions in WEQ-023-1 do not appear to require a Transmission
Service Provider to describe how ATC or AFC will be allocated. We seek
comment on whether the potential absence of a description of allocation
of ATC may reduce transparency and thereby increase discretion and the
potential for discrimination to occur, and if so, how this should be
remedied.
    56. Requirements R4 and R5 of MOD-001-1a require each Transmission
Service Provider to notify certain entities before implementing a new
ATCID and to make that document publicly available. NAESB does not
appear to have proposed new requirements for sharing changes before
implementation in WEQ-023-1.7, which could lead to a potential
transparency concern. We seek comment as to whether not sharing changes
before implementation will reduce transparency for transmission
customers, and if so, how this should be remedied.
    57. Of particular note, Requirements R6 and R7 of MOD-001-1a
obligate each Transmission Operator to use assumptions no more limiting
that those used in its planning of operations calculations. Ensuring
that the criteria a Transmission Service Provider uses to plan and
operate its system are consistent with the criteria used in scheduling
commercial transactions provides an assurance that transmission
customers will have access to transfer capability that is physically
available. We seek comment on whether the potential absence of such a
requirement in the NAESB WEQ-023-1 Modeling Business Practice Standards
raises consistency issues and could create additional discretion and
the potential for the consistency of ATC calculations to decline, and
if so, how this should be remedied.
    58. The currently effective NERC Reliability Standard MOD-004-1
(Capacity Benefit Margin), which NERC also proposes to retire, provides
transparency and consistency for transmission customers. This standard
includes 12 requirements, and the loss or replacement of several of
these existing NERC requirements in the NAESB WEQ-023 Modeling Business
Practice Standards raise concerns for the Commission. For example,
Requirements R1.1, R1.2, and R1.3 of MOD-004-1 currently obligate a
Transmission Service Provider to provide descriptions of how CBM values
are determined and allocated. WEQ-023-1.5, simply requires a

Transmission Service Provider that maintains CBM to post a CBM
Implementation Document (CBMID) that describes the process to schedule
CBM. We seek comment as to whether eliminating the description of the
development of CBM values and the allocation of CBM risks a reduction
of detail and transparency to users of CBM or other transmission
customers. Similarly, Requirements R3, R3.1, and R3.2 of MOD-004-1
provide detail on how load-serving entities determine that their CBM
needs are set aside. NAESB WEQ-023-1.5 does not appear to address
whether load-serving entities retain a role in the CBM determination
process. The currently effective Requirements R5, R5.1, and R5.2 of
MOD-004-1 require that at least every 13 months a Transmission Service
Provider updates CBM for the future 13-month period, and to provide
some details on how it calculates CBM. NAESB WEQ-023-1.5 does not
include requirements related to the updating of CBM values or details
of its calculation. We seek comment on whether this potential absence
will decrease transparency in the ATC calculations, and if so, how this
should be remedied.
    59. Requirements R7, R8, R9, R9.1, and R9.2 of MOD-004-1 currently
require a Transmission Service Provider to notify load-serving entities
if they were allocated CBM, and to provide supporting data and
documentation. The NAESB WEQ-023 Modeling Business Practice Standards
do not appear to include requirements for notification or public
posting, but rather in WEQ-023-1.7 provide that information shall be
available within 45 days of a request. We seek comment on whether the
net effect of these changes may raise concerns regarding the
transparency to users of CBM or other transmission customers, and if
so, how this should be remedied.
    60. The currently effective NERC Reliability Standard MOD-008-1
(Transmission Reliability Margin), again, which NERC proposes to
retire, provides detail, transparency and accuracy for transmission
customers. This NERC Reliability Standard includes five requirements,
and the loss or replacement of several of these existing NERC
requirements within the NAESB WEQ-023 Modeling Business Practice
Standards raise concerns. Specifically, Requirements R1, R1.1, R1.2,
and R1.3 provide detail regarding the information that the Transmission
Service Provider must represent in its Transmission Reliability Margin
Implementation Document (TRMID), including the components of
uncertainty considered in establishing TRM. NAESB WEQ-023-4.1 requires
only that a Transmission Operator that determines TRM maintain a TRMID
that specifies the components it includes in TRM, but without
specification as to these inputs. We seek comment on whether this
potential lack of detail could lead to inconsistency and increased
discretion, and if so, how this should be remedied.
    61. Requirement R4 of MOD-008-1 requires the Transmission Service
Provider to update TRM at least once every 13 months. NAESB WEQ-023-4
does not include specific requirements to update TRM values. We seek
comment on whether the potential lack of such requirements could
contribute to insufficient transparency and discretion, and if so, how
this should be remedied.
    62. As discussed above, the NERC MOD A Reliability Standards
include the three ``ATC methodology'' standards, which contain the
specific requirements applicable to each entity that selects and
implements that ATC methodology. NERC proposes to retire each of the
three. The first of these three ATC methodology standards, NERC
Reliability Standard MOD-028-2 (Area Interchange Methodology),
describes the area interchange methodology for determining available
transfer capability. NERC used this standard to increase consistency
and reliability in the development and documentation of transfer
capability calculation for short-term use performed by entities using
the area interchange methodology to support analysis and system
operations.\72\ The Area Interchange Methodology is described in WEQ-
023-2.1. MOD-028-2 consists of eleven requirements. We seek comment on
how three of these MOD-028-2 requirements, Requirements R2.2, R3, and
R6, are reflected in NAESB WEQ-023-2.1. MOD-028-2 Requirement R1
provides details regarding the content that a Transmission Service
Provider is required to include in its ATCID, specifically with respect
to its methodology for determining Total Transfer Capability (TTC). The
NAESB standard WEQ-023-2.1 only requires a general description of these
factors and appears to provide a lesser degree of detail regarding
certain components of the determination such as source/sink and point
of delivery (POD)/point of receipt (POR).
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    \72\ See, e.g., Order No. 729, 129 FERC ] 61,155 at P 54.
---------------------------------------------------------------------------

    63. MOD-028-2 Requirement R2.2 currently requires each Transmission
Operator to calculate TTC using a model that meets a scope specified in
the requirement and includes rating information specified by the
generator owners and transmission owners whose equipment is represented
in the model. In addition, MOD-028-2 Requirement R2.2 requirement
obligates a transmission provider to use a transmission model that
contains the modeling data and topology for immediately adjacent and
beyond Reliability Coordination areas when computing TTC. WEQ-023-2.1
does not appear to require the models to use data and topology for
either immediately adjacent or beyond Reliability Coordination areas.
We seek comment as to whether the potential absence of this requirement
in NAESB's Area Interchange Methodology, WEQ-023-2.1 could raise
coordination issues for transmission customers when scheduling
transactions across areas, and if so, how this should be remedied.
    64. MOD-028-2 Requirement R3 details the information that a
Transmission Operator must include from adjacent and other Transmission
Service Providers in its determination of TTC for the on-peak and off-
peak intra-day and next-day time periods, including expected generation
and transmission outages, additions, and retirements, load forecasts,
and unit commitment and dispatch order. NAESB WEQ-023-2.1 does not
appear to include such a coordination requirement. We seek comment as
to whether the removal of such a coordination requirement could
potentially constitute a lack of specificity in the NAESB Business
Practice Standards that could detract from the usefulness of computed
ATC values, and if so, how this should be remedied.
    65. MOD-028-2 Requirement R6 provides details on the process by
which each Transmission Operator must establish TTC, which it must
communicate to the Transmission Service Provider, including the
representation of neighboring area system operating limits. The NAESB
WEQ-023-2.1 Modeling Business Practice Standards appear to provide no
guidance on the process for establishing TTC. We seek comment on
whether NAESB WEQ-023-2.1, Area Interchange Methodology, should include
additional guidance in the calculation of TTC will increase
transparency and consistency in ATC calculations, and if so, how this
should be remedied.
    66. The second of the three ATC methodology standards, NERC
Reliability Standard MOD-029-2a (Rated System Path Methodology)
describes the rated system path methodology for determining ATC. This

NERC Reliability Standard provides consistency, accuracy and
transparency in the development and documentation of transfer
capability calculations for short-term use performed by entities used
the rated system path methodology supports analysis and system
operations.\73\ This NERC Reliability Standard includes eight
requirements, and we seek comment on how two of the requirements,
Requirements R1 and R4, are addressed in the NAESB WEQ-023 Modeling
Business Practice Standards. The Rated System Path Methodology is
described in WEQ-023-2.2.
---------------------------------------------------------------------------

    \73\ Id. P 62.
---------------------------------------------------------------------------

    67. First, under MOD-029-2a Requirement R1, a Transmission Operator
must calculate total transfer capability using a model that meets
detailed scope and criteria specified in the requirement. However, WEQ-
023-2.2.1 only requires that an entity choosing to use the rated system
path methodology must use the lesser of the maximum allowable
contractual allocation or the Transmission Operator's reliability
limit. The NAESB WEQ-023-2.2 Modeling Business Practice Standards do
not appear to have standards that account for geographic
specifications, time period consistency, remedial action systems, and
in-service elements that are not present. Similarly, MOD-029-2a
Requirement R2 lists a detailed process by which the Transmission
Operator must establish total transfer capability, however, NAESB WEQ-
023-2.2 does not appear to describe a similar process in its standards.
We seek comment as to whether these potential discrepancies could lead
to an inappropriate decrease in modeling consistency or accuracy and,
if so, how this should be remedied.
    68. MOD-029-2a Requirement R4 requires the Transmission Operator to
make available to the Transmission Service Provider the appropriate
most recent value for TTC and the TTC study report within seven days of
its finalization. The NAESB WEQ-023 Modeling Business Practice
Standards includes a standard, WEQ-023-1.7, under which certain
specified entities with a reliability need may request clarification of
a transmission provider's total transfer capability, or its ATCID,
CBMID, or TRMID, and receive the requested information within 45 days,
and under WEQ-023-2.2.2 the Transmission Operator shall provide the
Transmission Service Provider with the most current values of TTC
within seven calendar days of their establishment. We seek comment as
to whether these provisions in the WEQ-023-2.2 are sufficient to
maintain the transparency and data availability provided under the
current MOD A standards, and if not, how this should be remedied.
    69. The third of the three ATC ``methodology'' standards, NERC
Reliability Standard MOD-030-3 (Flowgate Methodology), describes the
flowgate methodology for determining available transfer capability and
has eleven requirements. The purpose of this NERC Reliability Standard
is to provide consistency, accuracy, and reliability in the development
and documentation of transfer capability calculations for short-term
use performed by entities using the flowgate methodology to support
analysis and system operations.\74\ The Flowgate Methodology is
described in WEQ-023-2.3.
---------------------------------------------------------------------------

    \74\ Id. P 66.
---------------------------------------------------------------------------

    70. MOD-030-3 Requirements R1 and R2 provide detail regarding the
information a Transmission Service Provider must include in its ATCID.
Requirement R1 includes the criteria used to determine which facilities
should be considered potential flowgates, and what information is to be
used about adjacent balancing authority areas. Requirement R2 contains
a list of minimum characteristics used to identify a particular set of
transmission facilities as a flowgate. We seek comment on whether an
appropriate degree of transparency and consistency in the
identification of flowgates is maintained through WEQ-023-<IP_ADDRESS>.1 and
elsewhere under the NAESB WEQ-023 Modeling Business Practice Standards
and if so, how this should be remedied.
    71. MOD-030-3 Requirements R3.2 and R3.3 require each Transmission
Operator to provide a transmission model that meets specified criteria
and establish requirements for daily and monthly updates of the
modeling values used in AFC calculations, including adjacent areas. We
seek comment as to whether a requirement to update available flowgate
capability calculations is necessary in NAESB WEQ-023-2.3 or elsewhere
in the NAESB WEQ-023 Modeling Business Practice Standards. Similarly,
Requirement R4 details how a Transmission Service Provider shall
represent the sources and sinks associated with transmission service
when conducting AFC calculations. These NERC requirements do not appear
to be carried into the NAESB WEQ-023-2.3 Modeling Business Practice
Standards. We seek comment on whether these omissions could lead to a
reduction of calculation accuracy or an unwarranted increase in
discretion and if so, how this should be remedied.
    72. As discussed above, we seek comment on the adequacy of the
NAESB WEQ-023 Modeling Business Practice Standards to replace the
existing NERC MOD A Reliability Standards when their proposed
retirement becomes effective, and whether to encourage NAESB to include
additional detail or other further modifications in future versions of
the Modeling Business Practice Standards. In summary, while we propose
to incorporate these standards by reference, we also seek comments on:
(i) The overall effectiveness of the standards in NAESB's WEQ-023
Modeling Business Practice Standards; (ii) whether the NAESB Business
Practice Standards sufficiently limit transmission provider discretion
over ATC; (iii) whether customer concerns expressed in response to the
April 2015 technical workshop regarding inconsistencies between
transmission systems in treatment of outages need to be addressed; (iv)
whether the posting and sharing of data and information used in
determining ATC is sufficiently transparent; (v) whether the
specificity of modeling requirements is sufficient to ensure
nondiscriminatory access; (vi) whether the ATC calculation components
described correspond with operations, modeling, and planning data used
by Transmission Providers; (vii) whether the level of detail required
in the ATCID is sufficient to ensure nondiscriminatory access; and
(viii) whether the Commission should seek to address the concerns
raised in response to these comments through a new request to NAESB and
its stakeholder process.
2. Standards To Ensure Electronic Tagging (e-Tagging)
    73. The WEQ Version 003.3 Standards modify the WEQ-004 Coordinate
Interchange Business Practice Standards to ensure e-Tagging
transactions will continue to function as needed for commercial
purposes. The WEQ-004 Coordinate Interchange Business Practice
Standards revisions incorporate commercially relevant requirements
proposed for retirement by NERC from the NERC INT Reliability Standards
\75\ and include a requirement to register

pseudo-ties in the NAESB Electric Industry Registry (EIR).\76\
---------------------------------------------------------------------------

    \75\ In addition to its proposed retirement of the MOD A
Reliability Standards in its RM19-17-000 petition, NERC proposed to
retire currently-effective Reliability Standards and requirements in
other categories, including INT-004-3.1 and INT-010-2.1 (in their
entirety), and INT-006-5, Requirements R3.1, R4 and R5, and INT-009-
3, Requirement R2.
    \76\ The NAESB EIR tool serves as the central repository for
information utilized by the wholesale electric industry in
commercial scheduling and transmission management operations. See
NAESB WEQ Version 003.3 Report, Transmittal at 17-18.
---------------------------------------------------------------------------

    74. NAESB's revised WEQ-004 Coordinate Interchange Business
Practice Standards to ensure e-Tagging transactions continue to
function as needed for commercial purposes do not appear inconsistent
with any Commission directives or findings in other orders.
Accordingly, we propose to incorporate by reference, into the
Commission's regulations at 18 CFR 38.1(b), NAESB's revised standards
modify the WEQ-004 Coordinate Interchange standards to ensure e-Tagging
transactions will continue to function as needed for commercial
purposes, as set forth in NAESB's WEQ Version 003.3 Standards.
3. E-Tagging Commercial Timing
    75. The WEQ Version 003.3 Standards also revise the Appendix D--
Commercial Timing Tables \77\ in the WEQ-004 Coordinate Interchange
Business Practice Standards. The Appendix D--Commercial Timing Tables
were revised to ensure entities do not receive additional time to
conduct market assessments beyond the prescribed timing parameters. The
revisions therefore provide additional clarity as to the timing
requirements for conducting e-Tagging transactions and correct an
unrelated typographical error in Appendix A--e-Tagging Service
Performance Requirements and Failure Procedures.
---------------------------------------------------------------------------

    \77\ WEQ-004-D includes two tables that establish timing
requirements regarding the submittal and commercial assessments of
e-Tags for the Eastern Interconnection and Western Interconnection,
respectively. These tables are complementary to timing tables
regarding reliability assessments of e-Tags for the Eastern
Interconnection and Western Interconnection included as part of NERC
Reliability Standard INT-006-4.
---------------------------------------------------------------------------

    76. NAESB's revised WEQ-004 Coordinate Interchange Business
Practice Standards, Appendix D--Commercial Timing Tables, and corrected
Appendix A--e-Tagging Service Performance Requirements and Failure
Procedures provide additional clarity regarding the timing requirements
for conducting e-Tagging transactions, and do not appear inconsistent
with any Commission directives or findings in other orders.
Accordingly, we propose to incorporate by reference, into the
Commission's regulations at 18 CFR 38.1(b), NAESB's revised standards
that modify the Appendix D--Commercial Timing Tables, WEQ-004
Coordinate Interchange Business Practice Standards, as set forth in
NAESB's WEQ Version 003.3 Standards.

E. Revisions to WEQ Business Practice Standards Not Requested by
Commission or Developed To Comply With a Commission Directive

    77. In addition to the standards revisions that NAESB made to
comply with various Commission directives and requests, the WEQ Version
003.3 Standards also include revisions undertaken by NAESB to support
the Parallel Flow Visualization (PFV) congestion management process
(described above), as well as changes to the OASIS suite of standards
that support transparency, consistency, and efficiency.
OASIS Transparency, Consistency, and Efficiency Changes
    78. The WEQ Version 003.3 Standards include additions, revisions,
and reservations intended to increase transparency, consistency, and/or
efficiency for the industry in the utilization of OASIS. As a result,
the WEQ Version 003.3 Standards include changes to the OASIS suite of
standards. First, the OASIS suite of standards was modified to provide
additional query functionality within OASIS by accommodating multiple
query variables.\78\ These changes allow for multiple transmission
service requests and transmission service reservations to be returned
in a single query response, reducing the need for a transmission
customer or transmission provider to conduct multiple queries.
---------------------------------------------------------------------------

    \78\ The WEQ-001 OASIS Business Practice Standards, the WEQ-002
OASIS Standards and Communication Protocols Business Practice
Standards, the WEQ-003 OASIS Data Dictionary Business Practice
Standards, and the WEQ-013 OASIS Implementation Guide Business
Practice Standards.
---------------------------------------------------------------------------

    79. Second, the OASIS suite of standards was modified \79\ to
establish a mechanism within OASIS to document all encumbrances to
unconditional firm transmission service, such as untagged pseudo-ties.
NAESB states this new mechanism provides increased visibility regarding
encumbrances on OASIS, which will serve to prevent encumbered
unconditional firm transmission capacity from being released as non-
firm ATC or AFC. Further, NAESB states the new mechanism will result in
improved transparency regarding encumbrances which will help to ensure
that any encumbered capacity is only used for its intended purpose.
---------------------------------------------------------------------------

    \79\ The WEQ-000 Abbreviations, Acronyms, and Definition of
Terms Business Practice Standards, the WEQ-001 OASIS Business
Practice Standards, the WEQ-002 OASIS Standards and Communication
Protocols Business Practice Standards, the WEQ-003 OASIS Data
Dictionary Business Practice Standards, and the WEQ-013 OASIS
Implementation Guide Business Practice Standards.
---------------------------------------------------------------------------

    80. Third, the OASIS suite of standards was revised \80\ to provide
new functionality and improve efficiencies regarding dynamic
notifications to transmission customers and rollover rights renewal.
The HTTP format for dynamic notifications was replaced with a generic
email format that could be utilized for any status notifications
deadline.
---------------------------------------------------------------------------

    \80\ The WEQ-001 OASIS Business Practice Standards, the WEQ-002
OASIS Standards and Communication Protocols Business Practice
Standards, the WEQ-003 OASIS Data Dictionary Business Practice
Standards, and the WEQ-013 OASIS Implementation Guide Business
Practice Standards.
---------------------------------------------------------------------------

    81. Fourth, the WEQ-001 OASIS Business Practice Standards were
modified to provide clarity regarding the use of Next Hour Market
Service and the 0-NX transmission product code.\81\ NAESB states the
revised standards clarify that the 0-NX transmission product code is
the lowest curtailment priority and can be used for purposes outside of
the identification of Next Hour Market Service.
---------------------------------------------------------------------------

    \81\ The WEQ-001 OASIS Business Practice Standards.
---------------------------------------------------------------------------

    82. Fifth, modifications were made to NITS-related standards \82\
within the WEQ OASIS suite of standards. NITS allows transmission
customers the ability to integrate and economically dispatch network
resources to serve network load, making the treatment of these
customers comparable to how the transmission provider would utilize its
own system to serve its native load customers. NAESB states substantive
changes provide increased flexibility in the use of scheduling rights,
improve efficiencies to the query functionality, support the use of
fractional megawatt values in generator attributes, and create new
dynamic notifications.
---------------------------------------------------------------------------

    \82\ The WEQ-001 OASIS Business Practice Standards, the WEQ-002
OASIS Standards and Communication Protocols Business Practice
Standards, the WEQ-003 OASIS Data Dictionary Business Practice
Standards, and the WEQ-013 OASIS Implementation Guide Business
Practice Standards.
---------------------------------------------------------------------------

    83. Accordingly, we propose to incorporate by reference into the
Commission's regulations at 18 CFR 38.1(b) NAESB's additions,
revisions, and reservations to the OASIS suite of standards, which
include the WEQ-001 OASIS Business Practice Standards, the WEQ-002
OASIS Standards and Communication Protocols Business Practice
Standards, the WEQ-003 OASIS Data Dictionary Business Practice
Standards, and WEQ-013 OASIS Implementation Guide Business

Practice Standards, as set forth in NAESB's WEQ Version 003.3
Standards.

IV. Implementation Schedule

    84. As discussed briefly above, the Commission proposes to
incorporate by reference into its regulations the proposed NAESB
Business Practice Standards that address the revisions related to the
surety assessment on cybersecurity performed by Sandia on a different
timeline than for the remainder of the changes proposed by NAESB in WEQ
Version 003.3. The Commission proposes that industry filers submit
compliance filings on proposed cybersecurity nine months after the
publication of a final rule in this proceeding, with implementation
required no sooner than three months after compliance filings are
submitted to the Commission, for a total implementation period of at
least 12 months.
    85. The Commission notes that for the WEQ Version 003.3 Standards
that pertain to OASIS, NAESB includes in its Business Practice
Standards WEQ 002-6, a 12-month implementation period. WEQ 002-6
provides a nine-month proposed timeline for transmission providers to
implement all changes required to support the OASIS-related standards
and an additional three months following this implementation period for
transmission customers to complete any necessary actions. WEQ-002-6
also requires OASIS nodes to maintain full support for queries and
uploads as formatted under the past version of the OASIS-related
standards during the full 12-month proposed implementation timeline.
    86. The Commission proposes to implement the WEQ Version 003.3
Standards, other than those related to cybersecurity,\83\ under an 18-
month implementation timeline. Nonetheless, the Commission acknowledges
that based upon when the Commission issues a final rule, industry may
be required to incorporate certain changes proposed under WEQ Version
003.3 Standards while also implementing changes required by Order No.
676-I.\84\ There is the potential for industry to be required to
incorporate the changes made in the WEQ 003.2 Standards as adopted by
the Commission in Order No. 676-I either immediately prior to or
simultaneously with the changes required in the WEQ Version 003.3
Business Practice Standards based upon when the Commission decides to
issue a final rule herein.\85\ Given this possibility, the Commission
requests comments on how best to proceed with the implementation of the
remaining WEQ 003.3 Business Practice Standards, including the
standards related to PFV and OASIS, but not those related to
cybersecurity, to be incorporated by reference. Specifically, rather
than being implemented on the separate timeline for the cybersecurity,
as described herein: Should the Commission require the industry to
implement WEQ Version 003.2 prior to WEQ Version 003.3. Alternatively,
should the Commission cancel the implementation obligation of WEQ
Version 003.2 and instead require implementation of all accepted WEQ
Version 003.3 standards, including WEQ Version 003.2 changes, within 18
months.\86\ Please provide comment as to a preferred approach and
timeline for implementation of these various WEQ Standards.
---------------------------------------------------------------------------

    \83\ A complete list of the specific cybersecurity business
practice standards is included at Appendix I.
    \84\ The Commission is not proposing an implementation timeline
for the ATC-related standards at this time. The implementation of
NAESB's ATC-related standards under WEQ-023 will be coordinated with
the retirement of the NERC MOD A standards being addressed in Docket
Nos. RM19-16-000 and RM19-17-000.
    \85\ On April 3, 2020, the Commission issued a notice granting
an 18-month extension to implement the changes incorporated by
reference in Order No. 676-I.
    \86\ This would include all WEQ Version 003.3 standards except
for the cybersecurity standards which have an earlier implementation
timeline, as discussed herein, as well as the implementation of the
NAESB ATC-related standards contained in WEQ-023, which will be
coordinated with the retirement of the NERC MOD A standards.
---------------------------------------------------------------------------

V. Incorporation by Reference

    87. The Office of the Federal Register requires agencies
incorporating material by reference to discuss, in the preamble of the
proposed rule, the ways that the materials it incorporates by reference
are reasonably available to interested parties and how interested
parties can obtain the materials.\87\ The regulations also require
agencies to summarize in the preamble of the proposed rule the material
it incorporates by reference. The standards we are proposing to
incorporate by reference in this NOPR consist of 14 suites of business
practice standards applicable to public utilities that own, operate, or
control facilities used for the transmission of electric energy in
interstate commerce or for the sale of electric energy at wholesale in
interstate commerce and any non-public utility that seeks voluntary
compliance with jurisdictional transmission tariff reciprocity
conditions. These can be summarized as follows.
---------------------------------------------------------------------------

    \87\ 1 CFR 51.5. See Incorporation by Reference, 79 FR 66267
(Nov. 7, 2014).
---------------------------------------------------------------------------

    88. The WEQ-000 Abbreviations, Acronyms, and Definition of Terms
Business Practice Standards provide a single location for all
abbreviations, acronyms, and defined terms referenced in the WEQ
Business Practice Standards. These standards provide common
nomenclature for terms within the wholesale electric industry, thereby
reducing confusion and opportunities for misinterpretation or
misunderstandings among industry participants.
    89. The OASIS suite of business practice standards (WEQ-001 Open
Access Same-Time Information Systems (OASIS), WEQ-002 OASIS Standards
and Communication Protocols, WEQ-003 OASIS Data Dictionary, and WEQ-013
OASIS Implementation Guide) support the FERC posting and reporting
requirements that provide information about each transmission
provider's performance of the requirements of its pro forma OATT. The
OASIS system is used for scheduling transmission on the bulk power
system, comprises the computer systems and associated communications
facilities that public utilities are required to provide for the
purpose of making available to all transmission users comparable
interactions, and provides transmission service information and any
back-end supporting systems or user procedures that collectively
perform the transaction processing functions for handling requests on
OASIS. These standards establish business practices and communication
protocols that provide for consistent implementation across OASIS sites
as well as consistent methods for posting to OASIS.
    90. The WEQ-001 OASIS Business Practice Standards define the
general and specific transaction processing requirements and related
business processes required for OASIS. The standards detail
requirements related to standard terminology for transmission and
ancillary services, attribute values defining transmission service
class and type, ancillary and other services definitions, OASIS
registration procedures, procurement of ancillary and other services,
path naming, next hour market service, identical transmission service
requests, redirects, resales, transfers, OASIS postings, procedures for
addressing ATC or AFC methodology questions, rollover rights,
conditional curtailment option reservations, auditing usage of Capacity
Benefit Margin, coordination of requests for service across multiple
transmission systems, consolidation, preemption and right-of-first
refusal process, and NITS requests.
    91. The WEQ-002 OASIS Standards and Communication Protocols
Business Practice Standards define the technical standards for OASIS.
These standards

detail network architecture requirements, information access
requirements, OASIS and point-to-point interface requirements,
implementation, and NITS interface requirements.
    92. The WEQ-003 OASIS Data Dictionary Business Practice Standards
define the data element specifications for OASIS.
    93. The WEQ-004 Coordinate Interchange Business Practice Standards
define the commercial processes necessary to facilitate interchange
transactions via Request for Interchange (RFI) and specify the
arrangements and data to be communicated by the entity responsible for
authorizing the implementation of such transactions (the entities
responsible for balancing load and generation).
    94. The WEQ-005 Area Control Error (ACE) Equation Special Cases
Business Practice Standards define commercial-based requirements
regarding the obligations of a balancing authority to manage the
difference between scheduled and actual electrical generation within
its control area. Each balancing authority manages its ACE in
accordance with the NERC Reliability Standards. These standards detail
requirements for jointly owned utilities, supplemental regulation
service, and load or generation transfer by telemetry.
    95. The WEQ-006 Manual Time Error Correction Business Practice
Standards define the commercial based procedures to be used for
reducing time error to within acceptable limits of true time. These
standards have subsequently been marked reserved by NAESB. In Order No.
676-I, the Commission incorporated by reference WEQ Version 003.1 of
the Manual Time Error Correction Business Practice Standards,
effectively rejecting NAESB's proposal to retire these standards.\88\
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    \88\ Order No. 676-I, 170 FERC ] 61,062 at P 46.
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    96. The WEQ-007 Inadvertent Interchange Payback Business Practice
Standards define the methods in which inadvertent energy is paid back,
mitigating the potential for financial gain through the misuse of
paybacks for inadvertent interchange. Inadvertent interchange is
interchange that occurs when a balancing authority cannot fully balance
generation and load within its area. The standards allow for the
repayment of any imbalances through bilateral in-kind payback,
unilateral in-kind payback, or other methods as agreed to.
    97. The WEQ-008 Transmission Loading Relief--Eastern
Interconnection Business Practice Standards define the business
practices for cutting transmission service during a TLR event. These
standards detail requirements for the use of interconnection-wide TLR
procedures, interchange transaction priorities for use with
interconnection-wide TLR procedures, and the Eastern Interconnection
procedure for physical curtailment of interchange transactions.
    98. The WEQ-011 Gas/Electric Coordination Business Practice
Standards define communication protocols intended to improve
coordination between the gas and electric industries in daily
operational communications between transportation service providers and
gas-fired power plants. The standards include requirements for
communicating anticipated power generation fuel for the upcoming day as
well as any operating problems that might hinder gas-fired power plants
from receiving contractual gas quantities.
    99. The WEQ-012 Public Key Infrastructure (PKI) Business Practice
Standards establish the cybersecurity framework for parties partaking
in transactions via a transmission provider's OASIS or e-Tagging
system. The NAESB PKI framework secure wholesale electric market
electronic commercial communications via encryption of data and the
electronic authentication of parties to a transaction using a digital
certificate issued by a NAESB certified certificate authority. The
standards define the requirements for parties utilizing the digital
certificates issued by the NAESB certificate authorities.
    100. The WEQ-013 OASIS Implementation Guide Business Practice
Standards detail the implementation of the OASIS Business Practice
Standards. The standards detail requirements related to point-to-point
OASIS transaction processing, OASIS template implementation, preemption
and right-of-first-refusal processing, NITS application and
modification of service processing, and secondary network transmission
service.
    101. The WEQ-015 Measurement and Verification of Wholesale
Electricity Demand Response Business Practice Standards define a common
framework for transparency, consistency, and accountability applicable
to the measurement and verification of wholesale electric market demand
response practices. The standards describe performance evaluation
methodology and criteria for the use of equipment, technology, and
procedures to quantify the demand reduction value--the measurement of
reduced electrical usage by a demand resource.
    102. The WEQ-021 Measurement and Verification of Energy Efficiency
Products Business Practice Standards define a common framework for
transparency, consistency, and accountability applicable to the
measurement and verification of wholesale electric market energy
efficiency practices. The standards establish energy efficiency
measurement and verification criteria and define requirements for
energy efficiency resource providers for the measurement and
verification of energy efficiency products and services offered in the
wholesale electric markets.
    103. The WEQ-022 EIR Business Practice Standards define the
business requirements for entities utilizing the NAESB managed EIR, a
wholesale electric industry tool that serves as the central repository
for information needed in the scheduling of transmission through
electronic transactions. The standards describe the roles within EIR,
registration requirements, and cybersecurity.
    104. The WEQ-023 Modeling Business Practice Standards provide
technical details concerning the calculation of ATC for wholesale
electric transmission services. The WEQ-023 standards are intended to
address the aspects of certain of the NERC MOD A Reliability Standards
relating to modeling, data and analysis that are included in the NERC's
proposed retirement of its MOD A Reliability Standards.
    105. In addition, NAESB has adopted an additional eight suites of
standards that, consistent with our past decisions, we are not
proposing to incorporate by reference.\89\
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    \89\ The suites of NAESB business practice standards we are not
proposing to incorporate by reference in this NOPR are: (1) The WEQ-
009 Standards of Conduct for Electric Transmission Providers, which
NAESB has now eliminated as they duplicate the Commission's
regulations; (2) the WEQ-010 Contracts Related Business Practice
Standards that establish model contracts for the wholesale electric
industry, and which the Commission has not incorporated as they are
not mandatory; (3) the WEQ-014 WEQ/WGQ eTariff Related Business
Practice Standards, which provide an implementation guide describing
the various mechanisms, data tables, code values/reference tables,
and technical specifications used in the submission of electronic
tariff filings to the Commission, which the Commission has not
incorporated as these submittals are governed by the Commission's
eTariff regulations; and (4) the WEQ-016, WEQ-017, WEQ-018, WEQ-019,
and WEQ-020 Business Practice Standards that were developed as part
of the Smart Grid implementation and which the Commission adopted as
non-mandatory guidance in 18 CFR 2.27. See Standards for Business
Practices and Communication Protocols for Public Utilities, Order
676-H, 148 FERC ] 61,205, at P 90 (2014).
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    106. Our regulations provide that copies of the standards
incorporated by reference may be purchased from the North American
Energy Standards

Board, 801 Travis Street, Suite 1675, Houston, TX 77002, Phone: (713)
356-0060, website: http://www.naesb.org/. Copies of the standards may
be inspected at the Federal Energy Regulatory Commission, Public
Reference and Files Maintenance Branch, 888 First Street NE,
Washington, DC 20426, Phone:<PHONE_NUMBER>, website: http://www.ferc.gov.\90\
---------------------------------------------------------------------------

    \90\ 18 CFR 284.12 (2019).
---------------------------------------------------------------------------

    107. NAESB is a private consensus standards developer that develops
voluntary wholesale and retail standards related to the energy
industry. The procedures used by NAESB make its standards reasonably
available to those affected by the Commission regulations, which
generally is comprised of entities that have the means to acquire the
information they need to effectively participate in Commission
proceedings.\91\ NAESB provides a free electronic read-only version of
the standards for a three business day period or, in the case of a
regulatory comment period, through the end of the comment period.\92\
Participants can join NAESB, for an annual membership cost of $7,500,
which entitles them to full participation in NAESB and enables them to
obtain these standards at no additional cost.\93\ Non-members may
obtain a complete set of Standards Manuals, Booklets, and Contracts
from any of the quadrants (WEQ, WGQ, or Retail) on CD for $2,000 and
the Individual Standards Manual or Booklets for each standard by email
for $250 per manual or booklet.\94\ In addition, NAESB considers
requests for waivers of the charges on a case by case basis based on
need.
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    \91\ As a private, consensus standards developer, NAESB needs
the funds obtained from its membership fees and sales of its
standards to finance the organization. The parties affected by these
Commission regulations generally are highly sophisticated and have
the means to acquire the information they need to effectively
participate in Commission proceedings.
    \92\ Procedures for non-members to evaluate work products before
purchasing are available at https://www.naesb.org/misc/NAESB_Nonmember_Evaluation.pdf. See Incorporation by Reference, 79
FR at 66271, n.51 & 53 (citing to NAESB's procedure of providing no-
cost, no-print electronic access), NAESB Comment at 1, http://www.regulations.gov/#!documentDetail;D=OFR-2013-0001-0023).
    \93\ North American Energy Standards Board, NAESB Membership
Application, https://www.naesb.org/pdf4/naesbapp.pdf.
    \94\ North American Energy Standards Board, NAESB Materials
Order Form, https://www.naesb.org//pdf/ordrform.pdf.
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VI. Information Collection Statement

    108. The following collection of information contained in this
proposed rule is subject to review by the Office of Management and
Budget (OMB) under section 3507(d) of the Paperwork Reduction Act of
1995, 44 U.S.C. 3507(d).\95\ OMB's regulations require approval of
certain information collection requirements imposed by agency
rules.\96\ 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 this rule will not be penalized
for failing to respond to these collections of information unless the
collections of information display a valid OMB control number.
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    \95\ 44 U.S.C. 3507(d).
    \96\ 5 CFR 1320.11.
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    109. The Commission solicits comments on the Commission's need for
this information, whether the information will have practical utility,
the accuracy of the provided burden estimates, ways to enhance the
quality, utility, and clarity of the information to be collected, and
any suggested methods for minimizing respondents' burden, including the
use of automated information techniques.
    110. The following burden estimate is based on the projected costs
for the industry to implement the new and revised business practice
standards adopted by NAESB and proposed to be incorporated by reference
in this NOPR.\97\ The NERC Compliance Registry, as of April 28, 2020,
identifies approximately 162 in the United States that are subject to
this proposed rulemaking.
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    \97\ Commission staff estimates that industry is similarly
situated in terms of hourly cost (wages plus benefits). Based on the
Commission average cost (wages plus benefits) for 2020, $83.00/hour
is used.

                                                         Docket Nos. RM05-5-029 and RM05-05-030
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                       Annual  number
                                          Number of     of  responses   Total number   Average burden  (hrs.) & cost     Total annual  burden hours &
                                         respondents         per        of responses          ($) per response              total annual cost  ($)
                                                         respondent
                                                  (1)             (2)     (1) * (2) =  (4)..........................  (3) * (4) = (5)
                                                                                (3)
--------------------------------------------------------------------------------------------------------------------------------------------------------
FERC-516E............................             162               1             162  6 hrs.; $498.................  972 hrs.; $80,676
FERC-717.............................             162               1             162  30 hrs.; $2,490..............  4,860 hrs.; $403,380
                                      ------------------------------------------------------------------------------------------------------------------
    Total............................  ..............  ..............             324  $2,988.......................  5,832 hrs.; $484,056
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Costs to Comply with Paperwork Requirements:
    The estimated annual costs are as follows:

    FERC-516E: 162 entities x 1 response/entity x (6 hours/response x
$83.00/hour) = $80,676
    FERC-717: 162 entities x 1 response/entity x (30 hours/response x
$83.00/hour) = $403,380

    Titles: FERC-516E, Electric Rate Schedule and Tariff Filings and
FERC-717, Standards for Business Practices and Communication Protocols
for Public Utilities.
    Action: Proposed amendment to regulations pertaining to the
existing collections of information FERC-516E and FERC-717.
    OMB Control Nos: 1902-0290 (FERC-516E) and 1902-0173 (FERC-717).
    Respondents: Business or other for profit, and not for profit
institutions.
    Frequency of Responses: On occasion.
    Necessity of the Information: This proposed rule, if implemented,
will amend its regulations to incorporate by reference, with certain
enumerated exceptions, the latest version (Version 003.3) of the
Standards for Business Practices and Communication Protocols for Public
Utilities adopted by the Wholesale Electric Quadrant (WEQ) of the North
American Energy Standards Board (NAESB). WEQ Version 003.3 includes
standards developed in accordance with recommendations of the
Department of Energy sponsored cybersecurity surety assessment of the
NAESB Business Practice Standards that was conducted in 2019.
Additional standards were developed in response to the directives from
FERC Order No. 890, such as the standards developed to support Parallel
Flow Visualization,

intended to improve congestion management procedures for the Eastern
Interconnection. The WEQ Version 003.3 Standards also include, in their
entirety, the WEQ-023 Modeling Business Practice Standards contained in
the WEQ Version 003.1 Standards, which address the technical issues
affecting ATC and AFC calculation for wholesale electric transmission
services, with the addition of certain revisions and corrections. The
revisions made by NAESB in the WEQ Version 003.3 Standards are designed
to aid public utilities with the consistent and uniform implementation
of requirements promulgated by the Commission as part of the pro forma
Open Access Transmission Tariff.
    Internal Review: The Commission has reviewed NAESB's proposal and
has made a preliminary determination that the proposed revisions are
both necessary and useful. In addition, 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.
    111. 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_ADDRESS>phone:
(202) 502-8663].
    112. Comments concerning the information collections proposed in
this NOPR and the associated burden estimates should be sent to the
Commission at this docket and be email 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_ADDRESS>Please refer to the appropriate
docket number of this notice of proposed rulemaking Docket Nos. RM05-5-
029 and RM05-5-030 in your and OMB Control Nos. 1902-0290 (FERC-516E)
and 1902-0173 (FERC-717) in your submission.

VII. Environmental Analysis

    113. 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.\98\ The
actions proposed here fall within categorical exclusions in the
Commission's regulations for rules that are clarifying, corrective, or
procedural, for information gathering, analysis, and dissemination, and
for sales, exchange, and transportation of electric power that requires
no construction of facilities.\99\ Therefore, an environmental
assessment is unnecessary and has not been prepared in this NOPR.
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    \98\ Regulations Implementing the National Environmental Policy
Act, Order No. 486, FERC Stats. & Regs. ] 30,783 (1987) (cross-
referenced at 41 FERC ] 61,284).
    \99\ See 18 CFR 380.4(a)(2)(ii); 380.4(a)(5); 380.4(a)(27).
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VIII. Regulatory Flexibility Act Certification

    114. The Regulatory Flexibility Act of 1980 (RFA) \100\ generally
requires a description and analysis of proposed rules that will have
significant economic impact on a substantial number of small entities.
The RFA does not mandate any particular outcome in a rulemaking. It
only requires consideration of alternatives that are less burdensome to
small entities and an agency explanation of why alternatives were
rejected.
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    \100\ 5 U.S.C. 601-612.
---------------------------------------------------------------------------

    115. The Small Business Administration (SBA) revised its size
standards (effective January 22, 2014) for electric utilities from a
standard based on megawatt hours to a standard based on the number of
employees, including affiliates. Under SBA's standards, some
transmission owners will fall under the following category and
associated size threshold: Electric bulk power transmission and
control, at 500 employees.\101\ The Commission estimates that 24 of the
162 respondents are small or 14.8% of the respondents affected by this
NOPR.
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    \101\ 13 CFR 121.201, Sector 22 (Utilities), NAICS code 221121
(Electric Bulk Power Transmission and Control).
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    116. The Commission estimates that the impact on these entities is
consistent with the paperwork burden of $2,988 per entity used
above.\102\ The Commission does not consider $2,988 to be a significant
economic impact. Based on the above, the Commission certifies that
implementation of the proposed Business Practice Standards will not
have a significant impact on a substantial number of small entities.
Accordingly, no initial regulatory flexibility analysis is required.
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    \102\ 36 hours at $83.00/hour = $2,988.
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IX. Comment Procedures