[Federal Register Volume 76, Number 183 (Wednesday, September 21, 2011)]
[Proposed Rules]
[Pages 58424-58433]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-24167]
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DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
18 CFR Parts 39 and 40
[Docket No. RM11-16-000]
Transmission Relay Loadability Reliability Standard
AGENCY: Federal Energy Regulatory Commission.
ACTION: Notice of proposed rulemaking.
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SUMMARY: Pursuant to section 215 of the Federal Power Act, the
Commission proposes to approve Reliability Standard PRC-023-2
(Transmission Relay Loadability) submitted to the Commission for
approval by the North American Electric Reliability Corporation (NERC),
the Electric Reliability Organization (ERO) certified by the
Commission. The proposed Reliability Standard requires transmission
owners, generator owners, and distribution providers to set relays
according to specific criteria in order to ensure that the relays
reliably detect and protect the electric network from fault conditions,
but do not limit transmission loadability or interfere with system
operators' ability to protect system reliability. The Commission seeks
comment from interested persons on the proposed Reliability Standard.
The Commission also proposes to approve NERC Rules of Procedure Section
1700--Challenges to Determinations. This proposed rule provides
registered entities a means to challenge determinations made by
planning coordinators under Reliability Standard PRC-023.
DATES: Comments are due November 21, 2011.
ADDRESSES: You may submit comments, identified by docket number RM11-
16-000 and in accordance with the requirements posted on the
Commission's Web site, http//www.ferc.gov. Comments may be submitted by
any of the following methods:
Agency Web site: http://ferc.gov. Documents created
electronically using word processing software should be filed in native
applications or print-to-PDF format and not in a scanned format, at
http://www.ferc.gov/docs-filing/efiling.asp.
Mail/Hand Delivery: Commenters unable to file comments
electronically must mail or hand deliver their comments to: Federal
Energy Regulatory Commission, Secretary of the Commission, 888 First
Street, NE., Washington, DC 20426. These requirements can be found on
the Commission's Web site, see, e.g., the ``Quick Reference Guide for
Paper Submissions,'' available at http://www.ferc.gov/docs-filing/efiling.asp or via phone from FERC Online Support at (202) 502-6652 or
toll-free at 1-(866) 208-3676.
FOR FURTHER INFORMATION CONTACT:
Terence A. Burke (Legal Information), Office of the General Counsel,
Federal Energy Regulatory Commission, 888 First Street, NE.,
Washington, DC 20426, (202) 502-6498.
Kenneth U. Hubona (Technical Information), Office of Electric
Reliability, Division of Reliability Standards, Federal Energy
Regulatory Commission, 13511 Label Lane, Suite 203, Hagerstown, MD
21740, (301) 665-1608.
SUPPLEMENTARY INFORMATION:
Notice of Proposed Rulemaking
September 15, 2011.
1. Pursuant to section 215 of the Federal Power Act (FPA),\1\ the
Commission proposes to approve Reliability Standard PRC-023-2
(Transmission Relay Loadability) submitted by the North American
Electric Reliability Corporation (NERC), the Electric Reliability
Organization (ERO) certified by the Commission. The proposed
Reliability Standard requires transmission owners, generation owners,
and distribution providers to set load-responsive phase protective
relays according to specific criteria in order to ensure that the
relays reliably detect and protect the electric network from fault
conditions, but do not limit transmission loadability \2\ or interfere
with system operators' ability to protect system reliability. The
Commission seeks comment from interested persons on the proposed
Reliability Standard. The Commission also proposes to approve NERC
Rules of Procedure Section 1700--Challenges to Determinations also
included in NERC's filing. This proposed rule provides registered
entities a means to challenge determinations made by planning
coordinators under Reliability Standard PRC-023.
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\1\ 16 U.S.C. 824o (2006).
\2\ In the context of the proposed Reliability Standard,
``loadability'' refers to the ability of protective relays to
refrain from operating under load conditions.
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I. Background
A. Relay Protection Systems
2. Protective relays are devices that detect and initiate the
removal of faults
[[Page 58425]]
on an electric system.\3\ They are designed to read electrical
measurements, such as current, voltage, and frequency, and can be set
to recognize certain measurements as indicating a fault. When a
protective relay detects a fault on an element of the system under its
protection, it sends a signal to an interrupting device(s) (such as a
circuit breaker) to disconnect the element from the rest of the system.
Impedance relays are the most common type of relays used to protect
transmission lines. They continuously measure voltage and current on
the protected transmission line and operate when the measured magnitude
and phase angle of the impedance (voltage/current) falls within the
settings of the relay. Impedance relays can also provide backup
protection and protection against remote circuit breaker failure.
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\3\ A ``fault'' is defined in the NERC Glossary of Terms used in
Reliability Standards as ``[a]n event occurring on an electric
system such as a short circuit, broken wire, or an intermittent
connection.''
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3. On March 18, 2010, the Commission issued a Final Rule approving
Reliability Standard PRC-023-1 (Transmission Relay Loadability), a
Standard that requires transmission owners, generator owners, and
distribution providers to set load-responsive phase protection relays
according to specific criteria to ensure that the relays reliably
detect and protect the electric network from all fault conditions, but
do not operate during non-fault load conditions.\4\ In addition, under
section 215(d)(5) of the FPA, the Commission directed the ERO to
develop modifications to the Standard to address certain issues
identified by the Commission. At issue in the immediate proceeding is a
revised Reliability Standard that addresses our directives in that
order and will replace the currently effective PRC-023-1.
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\4\ Transmission Relay Loadability Reliability Standard, Order
No. 733, 130 FERC ] 61,221 (2010), order on reh'g and clarification,
Order No. 733-A, 134 FERC ] 61,127 (2011); clarified, Order No. 733-
B, 136 FERC ] 61,185 (2011). Order No. 733-B is issuing concurrently
with this Notice of Proposed Rulemaking.
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B. Reliability Standard PRC-023-1 and Order No. 733
4. Currently effective Reliability Standard PRC-023-1 applies to
relay settings on (1) All transmission lines and transformers with low-
voltage terminals operated or connected at or above 200 kV; and (2)
those transmission lines and transformers with low voltage terminals
operated or connected between 100 kV and 200 kV that are designated by
planning coordinators as critical to the reliability of the bulk
electric system.\5\ The Reliability Standard consists of three
compliance requirements and Attachment A. Requirement R1 requires
entities with certain transmission facilities to set their relays
according to one of thirteen specific settings (sub-parts R1.1 through
R1.13) designed to maximize loadability while maintaining Reliable
Operation of the bulk electric system for all fault conditions.
Requirement R2 provides additional obligations for entities that elect
certain settings. Requirement R3 requires planning coordinators to
designate facilities, operated between 100 kV and 200 kV, that are
critical to the reliability of the bulk electric system and are
therefore subject to Requirement R1. Attachment A specifies the
protection systems that are subject to and excluded from the Standard's
Requirements.
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\5\ Pursuant to section 40.3 of the Commission's regulations,
all Commission-approved Reliability Standards are available on
NERC's Web site at http:[sol][sol]www.nerc.com. See 18 CFR 40.3.
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1. Currently Effective Requirement R1
5. Requirement R1 states that each transmission owner, generator
owner, and distribution provider subject to Reliability Standard PRC-
023-1 shall use one of the criteria prescribed in sub-parts R1.1
through R1.13 for any specific circuit terminal to prevent its phase
protective relay setting from limiting transmission system loadability
while maintaining reliable protection of the bulk electric system for
all fault conditions.
6. In Order No. 733, the Commission directed the ERO, under section
215(d)(5) of the FPA, to develop modifications to Requirement R1 to:
(1) Require that transmission owners, generator owners, and
distribution providers give their transmission operators a list of
transmission facilities that implement sub-part R1.2; \6\ (2) require
entities that have protective relays set pursuant to sub-part R1.10 to
verify that the limiting piece of equipment is capable of sustaining
the anticipated overload for the longest clearing time associated with
a fault; \7\ and (3) require the ERO to document, subject to audit by
the Commission, and to make available for review to users, owners, and
operators of the Bulk-Power System, by request, a list of those
facilities that have protective relays set pursuant to sub-part
R1.12.\8\
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\6\ Order No. 733, 130 FERC ] 61,221 at P 186. sub-part R.1.2
allows transmission owners, generation owners and distribution
providers to ``set transmission line relays so they do not operate
at or below 115 [percent] of the highest seasonal 15-minute Facility
Rating of a circuit (expressed in amperes).'' The Standard includes
a footnote that states ``[w]hen a 15-minute rating has been
calculated and published for use in real-time operations, the 15-
minute rating can be used to establish the loadability requirement
for the protective relays.''
\7\ Id. P 203. sub-part R.1.10 allows transmission owners,
generation owners and distribution providers to set transformer
fault protection relays and transmission line relays on transmission
lines terminated only with a transformer * * * at or below the
greater of:
[a.] 150 [percent] of the applicable maximum transformer
nameplate rating (expressed in amperes), including the forced cooled
ratings corresponding to all installed supplemental cooling
equipment[; or]
[b.] 115 [percent] of the highest operator established emergency
transformer rating.
\8\ Id. P 224. Sub-part R1.12 addresses setting transmission
line distance relays to a maximum of 125 percent of the apparent
impedance (at the impedance angle of the transmission line), subject
to specified constraints, when the transmission line's desired
capability is limited by the requirement to adequately protect the
transmission line.
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2. Currently Effective Requirement R2
7. Requirement R2 states that transmission owners, generator
owners, and distribution providers that use a circuit with the
protective relay settings determined by the practical limitations
described in specified R1 sub-parts must use the calculated circuit
capability as the circuit's facility rating and must obtain the
agreement of the planning coordinator, transmission operator, and
reliability coordinator with the calculated circuit capability.
3. Currently Effective Requirement R3
8. Requirement R3 requires planning coordinators to designate which
transmission lines and transformers with low-voltage terminals operated
or connected between 100 kV and 200 kV are critical to the reliability
of the bulk electric system and therefore subject to Requirement R1.
Sub-part R3.1 requires planning coordinators to have a process to
identify critical facilities. Sub-part R3.1.1 specifies that the
process must consider input from adjoining planning coordinators and
affected reliability coordinators. Sub-parts R3.2 and R3.3 require
planning coordinators to maintain a list of critical facilities and
provide it to reliability coordinators, transmission owners, generator
owners, and distribution providers within 30 days of initially
establishing it, and 30 days of any subsequent change.
9. Under section 215(d)(5) of the FPA, the Commission directed the
ERO to modify Requirement R3 to: (1) Apply an ``add in'' approach to
sub-100 kV facilities that are owned or operated by currently
registered entities or entities that become registered entities in the
future, and are associated with a facility that is included on a
critical facilities
[[Page 58426]]
list defined by the Regional Entity; \9\ (2) specify the test that
planning coordinators must use to determine whether a sub-200 kV
facility is critical to the reliability of the Bulk-Power System; \10\
and (3) add the Regional Entity to the list of entities that receive a
list of sub-200 kV facilities determined by the planning coordinator to
be critical to the reliability of the bulk electric system.\11\ In
addition, the Commission directed the ERO to develop an appeals process
for entities to challenge a criticality determination.\12\
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\9\ Id. P 60.
\10\ Id. P 69.
\11\ Id. P 237.
\12\ Id. P 97.
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4. Currently Effective Attachment A
10. Attachment A to Reliability Standard PRC-023-1 specifies which
protection systems are subject to and excluded from the Standard's
Requirements. Section 1 of Attachment A provides that the Reliability
Standard applies to any protective functions that can operate with or
without time delay, on load current, including but not limited to: (1)
Phase distance; (2) out-of-step tripping; (3) switch-on-to-fault; (4)
overcurrent relays; and (5) communication-aided protection
applications. Section 2 states that the Reliability Standard requires
evaluation of out-of-step blocking schemes \13\ to ensure that they do
not operate for faults during the loading conditions defined in the
Standard's Requirements. Finally, section 3 expressly excludes certain
relay elements and protection systems from the Reliability Standard's
Requirements, such as relay elements enabled only when other relays or
associated systems fail (e.g., overcurrent elements enabled only during
abnormal system conditions or a loss of communications) and protection
relay systems intended for the detection of ground fault conditions or
for protection during stable power swings.
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\13\ ``Out-of-step blocking'' refers to a protection system that
is capable of distinguishing between a fault and a power swing. If a
power swing is detected, the protection system, ``blocks,'' or
prevents the tripping of its associated transmission facilities.
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11. The Commission, under section 215(d)(5) of the FPA, directed
the ERO to modify Attachment A to: (1) Include section 2 as an
additional Requirement with the appropriate violation risk factor and
violation severity level in the Reliability Standard; \14\ and (2)
include supervising relay elements on the list of relays and protection
systems that are specifically subject to the reliability Standard.\15\
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\14\ Id. P 244.
\15\ Id. P 264.
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5. Currently Effective Implementation Plan
12. Reliability Standard PRC-023-1 established staggered effective
dates for various Requirements and facilities. The Standard also
included a footnote (exceptions footnote) to the ``Effective Dates''
section honoring temporary exceptions from enforcement actions approved
by the NERC Planning Committee before NERC proposed the Reliability
Standard.
13. In Order No. 733, the Commission directed the ERO, under
section 215(d)(5), to modify the Reliability Standard to include an
implementation plan for sub-100 kV facilities \16\ and to remove the
exceptions footnote from the ``Effective Dates'' section of the
Reliability Standard.\17\
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\16\ Id. P 283.
\17\ Id. P 284.
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II. NERC Petition for Proposed Reliability Standard PRC-023-2 and Rule
of Procedure, Section 1700--Challenges to Determinations
14. In a March 18, 2011 filing (NERC Petition), NERC requests
Commission approval of both its proposed Reliability Standard PRC-023-2
(Transmission Relay Loadability) and its proposed NERC Rules of
Procedure Section 1700--Challenges to Determinations.
15. NERC states that the proposed Reliability Standard requires
transmission owners, generator owners, and distribution providers to
verify relay loadability using methods that achieve ``the reliability
goal of this Standard in an effective and efficient manner familiar to
the responsible entities.'' \18\ The proposed Standard also applies to
out-of-step blocking systems as well as to load-responsive phase
protections systems. NERC specifically identifies the benefits of
proposed Reliability Standard PRC-023-2, as including (a) Consistent
identification of operationally critical circuits operated below 200 kV
that must comply with the Requirements of the Standard, and (b)
providing transmission operators, planning coordinators, reliability
coordinators, and the ERO with more information regarding the criteria
selected by entities for verifying relay loadability.\19\
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\18\ NERC Petition at 42.
\19\ NERC Petition at 5.
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A. Reliability Standard PRC-023-2
16. Proposed Reliability Standard PRC-023-2 contains six
requirements with the stated purpose of ensuring that protective relay
settings do not limit transmission loadability; do not interfere with
system operators' ability to take remedial action to protect system
reliability; and are set to reliably detect all fault conditions and
protect the electrical network from these faults.\20\ The proposed
Reliability Standard also includes two attachments. Attachment A
specifies the protection systems that are subject to and excluded from
the Standard's Requirements. Attachment B specifies the criteria for
determining the circuits which must comply with Requirements R1 through
R5.
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\20\ Reliability Standard PRC-023-2, Section A.3 (Purpose).
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1. Proposed Requirement R1
17. The ERO describes proposed Reliability Standard PRC-023-2
Requirement R1 as follows:
Requirement R1 mandates that each Transmission Owner, Generator
Owner, and Distribution Provider shall use any one of the identified
criteria (Requirement R1, criteria 1 through 13) for any specific
circuit terminal to prevent its phase protective relay settings from
limiting transmission system loadability while maintaining reliable
protection of the [bulk electric system] for all fault conditions.
Each Transmission Owner, Generator Owner, and Distribution Provider
shall evaluate relay loadability at 0.85 per unit voltage and power
factor angle of 30 degrees[.] \21\
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\21\ NERC Petition at 30.
18. With the exception of clarifying language and the addition of
criterion 10.1, proposed Requirement R1 retains the same criteria as
currently existing PRC-023-1. Criteria 1 through 13 prescribe specific
criteria to be used for certain transmission system configurations.
These criteria account for the presence of devices such as series
capacitors and address circuit and transformer thermal capability.
19. Criterion 1 specifies transmission line relay settings based on
the highest seasonal facility rating using the 4-hour thermal rating of
a transmission line, plus a design margin of 150 percent. Criterion 2
allows transmission line relays to be set so that they do not operate
at or below 115 percent of the highest seasonal 15-minute facility
rating of a circuit, when a 15-minute rating has been calculated and
published for use in real-time operations. Criterion 3 allows
transmission line relays to be set so that they do not operate at or
below 115 percent of the maximum theoretical power capability.
Criterion 4 may be applied where series capacitors are used on long
transmission lines to increase power transfer. Criterion 5 applies in
cases where the maximum end-of-line
[[Page 58427]]
three-phase fault current is small relative to the thermal loadability
of the conductor. Criterion 6 may be used for system configurations
where generation is remote from load busses or main transmission
busses.
20. Criterion 7 is appropriate for system configurations that have
load centers that are remote from the generation center. Criterion 8
applies to system configurations that have one or more transmission
lines connecting a remote, net importing load center to the rest of the
system. Criterion 9 applies to the same system configuration, but
applies to the load end. Criterion 10 is specific to transmission
transformer fault protective relays and transmission lines terminated
only with a transformer. Criterion 11 may be used for transformer
overload protection relays when criterion 10 cannot be met. Criterion
12 may be used when the circuits have three or more terminals. The
limited circuit loading capability established by this criterion will
become the facility rating of the circuit. Finally, criterion 13 is
intended to apply when otherwise supportable situations and practical
limitations are identified under criteria 1 through 12.
21. Proposed Reliability Standard PRC-023-2 modifies PRC-023-1 by
adding criterion 10.1 to address the Commission's directive that
entities with protective relays set pursuant to criteria R1.10 must
verify that the limiting piece of equipment is capable of sustaining
the anticipated overload for the longest clearing time associated with
a fault.\22\ The criterion requires coordination so that settings on a
transformer's load responsive relay do not expose the transformer to a
fault level and duration that exceeds the transformer's mechanical
withstand capability.\23\ NERC states that, for through-faults, it is
not possible to set fault protection relays to both meet the relay
loadability requirement in criterion 10 and coordinate a transformer's
thermal limits, but the mechanical damage threshold is more limiting
than the thermal damage threshold. Moreover, NERC states, the
permissible time duration to avoid thermal damage is longer than the
maximum expected duration for which a through-fault would remain before
being cleared by the protection system. Thus, requiring that
transformer fault protection relays are set to not expose the
transformer to a fault level and duration that exceeds the
transformer's mechanical withstand capability assures the transformer
will be capable of withstanding an overload for the longest clearing
time associated with a fault on the low-voltage side of the
transformer.\24\
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\22\ Id. at 20.
\23\ The mechanical withstand capability is determined on the
basis of the transformer's design and the maintenance of that
capability by the owner. Maintenance would be an issue if, for
example, the moisture level in a transformer is allowed to increase
above the design value but still within dielectric acceptance, the
dielectric withstand capability could be compromised.
\24\ Id. at 22-23.
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22. NERC believes that Requirement 10.1 is equally effective and
efficient as the approach directed in Order No. 733.\25\ It states that
as a result of design constraints, transformers are more limiting than
other series elements with regard to through-fault capability.
Accordingly, coordinating transformer fault protection relays with the
transformer mechanical withstand capability addresses the Commission's
concerns underlying its directive even though it does not reference the
most limiting piece of equipment. Because the fault withstand
capability of terminal equipment is not always readily available,
requiring entities to provide evidence that equipment in series with
the transformer is capable of withstanding a through-fault current for
the expected duration, NERC argues, is not necessary to address the
Commission's concerns and places an unnecessary burden on entities.\26\
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\25\ Id. at 20-21.
\26\ Id. at 23.
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2. Proposed Requirement R2
23. Proposed Reliability Standard PRC-023-2 adds a new Requirement
R2 that requires each transmission owner, generation owner, and
distribution provider to set its out-of-step blocking elements to allow
tripping of phase protective relays for faults that occur during the
loading conditions modeled under Requirement R1. NERC states that
Requirement R2 has been added to proposed Reliability Standard PRC-023-
2 to address the Commission's directive to include section 2 of PRC-
023-1 Attachment A as an additional Requirement with the appropriate
violation risk factor and violation severity level.\27\ NERC has
assigned this proposed Requirement a high Violation Risk Factor and a
severe Violation Severity Level reflecting the impact to reliability of
violating the Requirement.
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\27\ NERC Petition at 24.
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3. Proposed Requirements R3, R4, and R5
24. Requirement R3 in proposed Reliability Standard PRC-023-2
renumbers and makes conforming edits to Requirement R2 from PRC-023-1.
Proposed new Requirement R4 requires an entity that chooses to use
Requirement R1 criterion 2 as the basis for verifying transmission line
relay loadability to provide its planning coordinator, transmission
operator, and reliability coordinator with an updated list of circuits
associated with those transmission line relays at least once each
calendar year. Similarly, proposed Reliability Standard PRC-023-2 adds
a new Requirement R5 that requires entities that set transmission line
relays according to Requirement R1 criterion 12 to provide an updated
list of the circuits associated with those relays to its Regional
Entity at least once each calendar year, to allow the ERO to compile a
list of all circuits that have protective relays settings that limit
circuit capability. NERC states that new Requirements R4 and R5,
respectively, address the Commission's directives relating to providing
transmission operators a list of transmission facilities that implement
criterion 2 and directing that the ERO create a list of those
facilities that have protective relays set pursuant to criterion
12.\28\
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\28\ Id. at 23-24.
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4. Proposed Requirement R6
25. Requirement R6 of proposed Reliability Standard PRC-023-2
requires each planning coordinator to conduct an assessment at least
once each calendar year (but no less frequently than every 15 months)
by applying the criteria in Attachment B to determine the circuits in
its planning coordinator area for which entities must comply with
Requirements R1 through R5. Sub-part 6.1 requires the planning
coordinator to maintain a list of circuits subject to PRC-023-2 per
application of Attachment B identifying the year in which any criterion
in Attachment B applies. Sub-part 6.2 requires the planning coordinator
to provide the list to all Regional Entities, reliability coordinators,
transmission owners, generators owners, and distribution providers
within its planning coordinator area within 30 calendar days of
establishing the initial list, and 30 days of any subsequent change
thereto. NERC states that the proposed sub-part 6.2, formerly
Requirement R3.3 in PRC-023-1, modifies the Requirement in order to
address the Commission's directive to add the Regional Entity to the
list of entities that receive the list of critical facilities.\29\
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\29\ Id. at 24.
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5. Proposed Attachment A
26. Attachment A to proposed Reliability Standard PRC-023-2
[[Page 58428]]
includes a new section 1.6 that extends the Standard's applicability to
include phase overcurrent supervisory elements (i.e., phase fault
detectors) associated with current-based, communication-assisted
schemes (i.e., pilot wire, phase comparison, and line current
differential) where the scheme is capable of tripping for loss of
communications. In addition, conforming changes are made to proposed
section 2.1, formerly section 3.1 of the PRC-023-1, to recognize that
elements described in new section 1.6 are no longer excluded from the
proposed Standard's scope. NERC states that these changes have been
made to address the Commission's directives to include supervising
relay elements on the list of relays and protection systems that are
specifically subject to the Reliability Standard.\30\
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\30\ Id. at 25.
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27. NERC states that it believes proposed section 1.6 of Attachment
A is equally effective and efficient in addressing the Commission's
concern as the approach directed in Order No. 733.\31\ It states that
modifying Attachment A to extend the scope of the proposed Reliability
Standard to include all supervising relays as directed would have an
unintended negative impact on system reliability by reducing the
dependability and security of certain protection system, e.g.,
supervising phase distance (impedance) elements. It contends that the
description in section 1.6 is tailored to avoid the negative impacts on
reliability that could occur with an overly broad application of the
proposed Standard to supervising relays.\32\
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\31\ Id.
\32\ Id. at 26-27.
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6. Proposed Attachment B
28. Proposed Reliability Standard PRC-023-2 adds an Attachment B to
specify six criteria that planning coordinators must use to identify
sub-200kV facilities that, upon being so identified, are required to
comply with the proposed Reliability Standard. The proposed criteria
identify facilities using bright line criteria and analyses. A facility
meets the bright line criteria if it:
Is a monitored facility of a permanent flowgate in the
Eastern Interconnection, a major transfer path within the Western
Interconnection, or a comparable monitored facility in the Quebec
Interconnection, that has been included to address reliability concerns
for loading of that circuit (Criteria B1);
Is a monitored facility of an interconnection reliability
operating limit, where the limit was determined in the planning horizon
pursuant to Reliability Standard FAC-010 (System Operating Limits
Methodology for Planning Horizon) (Criteria B2); or
Forms a path to supply off-site power to a nuclear plant
as established in the nuclear plant interface requirements pursuant to
Reliability Standard NUC-001 (Nuclear Plant Interface Coordination)
(Criteria B3).\33\
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\33\ As we stated previously, ``[w]e would expect that any
[nuclear plant interface requirements] agreed to between a nuclear
plant generator operator and transmission entity would include all
facilities needed to transmit offsite power and auxiliary power to
the nuclear facility. Mandatory Reliability Standard for Nuclear
Plant Interface Coordination, 125 FERC ] 61,065, at P 51 (2008).
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A facility is identified through the analysis criteria if it:
Is identified through a sequence of power flow analyses
specified in Attachment B and performed by the planning coordinator
(Criteria B4);
Is selected by the planning coordinator based on technical
studies or assessments other than those specified above, in
consultation with the facility owner (Criteria B5); or
Is mutually agreed upon for inclusion by the planning
coordinator and the facility owner (Criteria B6).
NERC states that while the six criteria presented in Attachment B
vary from some of the guidance provided in Order No. 733, they
nonetheless identify all facilities that must be subject to proposed
Reliability Standard PRC-023-2 in order to achieve the Standard's
reliability objective.\34\ NERC further reports that it is in the
process of applying the test to a representative sample of utilities
from each of the three Interconnections and plans to file the results
of these tests by February 17, 2013. NERC plans to revise Attachment B,
if necessary, pending the results of this test and clarifications made
in Order No. 733-A.\35\
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\34\ NERC Petition at 14.
\35\ Id. at 13.
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29. Attachment B, unlike currently effective Reliability Standard
PRC-023-1, does not state that the goal of screening sub-200 kV
facilities is to identify those that are ``critical to the reliability
of the bulk electric system.'' Instead, NERC states that the test in
Attachment B ``is designed to identify circuits that if tripped on
relay loadability following an initiating event could contribute to
undesirable system performance similar to what occurred during the
August 2003 Blackout * * *.'' \36\ This change in wording, NERC states,
eliminates potential confusion regarding the use of the phrase
``critical to the reliability of the bulk electric system'' in the
context of this Reliability Standard compared to other Standards such
as those addressing critical infrastructure, and it presents the same
meaning in an equally effective and efficient approach for referring to
the circuits identified through the planning coordinators' assessments.
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\36\ Id. at 15.
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30. The proposed Reliability Standard also omits reference to sub-
100 kV facilities ``that Regional Entities have identified as critical
to the reliability of the [b]ulk [e]lectric [s]ystem'' in favor of
referring to ``transmission lines operated below 100 kV and
transformers with low voltage terminal connected below 100 kV that are
part of the [bulk electric system].'' NERC states that sub-100 kV
circuits identified by the Regional Entities as critical facilities
should be included in the definition of the bulk electric system and
the proposed language conveys the same meaning in an equally effective
and efficient manner.\37\ This change in wording, NERC states, responds
to confusion arising from the fact that very few such facilities have,
as yet, been identified.
---------------------------------------------------------------------------
\37\ Id. at 16.
---------------------------------------------------------------------------
31. NERC is taking a three phase approach to addressing the various
directives in Order No. 733. Phase I is intended to address directed
modifications to PRC-023-1. Phase II entails development of a new
Reliability Standard addressing generator relay loadability, and Phase
III consists of developing a new Reliability Standard addressing
protective relay operations due to stable power swings. According to
the NERC Petition, transmission lines that tripped unnecessarily during
the August 2003 Blackout did not trip as a result of power swings up
through the tripping of the Argenta-Battle Creek and the Argenta-
Tompkins 345 kV lines, but subsequent line trips were due to power
swings. While the power system did experience stable swings following
each line trip prior to losing these two lines, the swings were not of
significant magnitude and dampened quickly allowing the system to
return to a new steady-state condition. For this reason, NERC asserts
that analysis using steady-state base cases is the appropriate tool to
assess the potential for lines to trip under similar conditions, and
dynamic base cases are the appropriate tool to assess line tripping due
to power swings. NERC has elected to limit the applicability test in
Attachment B to power flow analysis with steady-state base cases and to
address dynamic base cases in its Phase III Reliability Standard
addressing power swings. This
[[Page 58429]]
election, NERC states, is an equally efficient and effective approach
to addressing all facets of the unnecessary line tripping caused by
relay loadability that occurred during the August 2003 Blackout.
32. Order No. 733 provided guidance that a test to determine
critical sub-200 facilities should include the same simulations and
assessments as the Transmission Planning (TPL) Reliability Standards.
While the TPL Standards permit manual system adjustments between two
contingencies, NERC believes it is more informative, and in line with
the reliability objective, to require testing of double contingencies
without such manual adjustments, thereby modeling a situation in which
an operator fails to, or does not have time to, make appropriate system
adjustments. This focused testing exceeds the requirements of the TPL
Standards and, NERC asserts, is an equally efficient and effective
approach to addressing the Commission's concern that the test must be
sufficiently robust to provide assurance that all appropriate
facilities are identified and made subject to the Reliability Standard
for the Standard to achieve its purpose.
33. Order No. 733 also provided guidance regarding elements of a
definition of desirable system performance that must inform any test to
determine which sub-200 kV circuits are critical to system reliability.
The Commission's guidance stated, among other things, that the power
system should maintain all facilities within their applicable thermal
(i.e., current), voltage, or stability ratings (short time ratings are
applicable). NERC asserts that it is most appropriate to focus on
avoiding thermal loading of transmission circuits. In order to achieve
its reliability goal, NERC believes, Reliability Standard PRC-023-2
must apply to circuits whose relays will be challenged by excessive
thermal loading to the point that a relay hampers the system operator's
ability to take remedial action. The system performance measure in this
test is less rigorous than that required by TPL-003 (System Performance
Following Loss of Two or More BES Elements) because it ignores voltage
and stability ratings. But, NERC points out that the contingency
condition in Attachment B is more stringent than that in TPL-003 and
the contingency and system performance measure were developed together
in order to align with the reliability objective of the proposed
Standard. NERC believes this test is an equally effective and efficient
approach to addressing the Commission's concern regarding the
rigorousness of the test.
7. Proposed Implementation Plan
34. NERC proposes staggered effective dates for Reliability
Standard PRC-023-2, i.e., the mandatory compliance date after an
allotted implementation period, for each of the Standard's
requirements. The implementation plan provides 18 months for planning
coordinators to apply the criteria in Attachment B and determine which
sub-200 kV circuits must be subject to the Standard. Those entities
responsible for compliance on circuits identified by a planning
coordinator pursuant to Requirement R6 are provided until the first day
of the first calendar quarter 39 months following notification to
become compliant, or until the first day of the first calendar year in
which any criterion in Attachment B applies if the planning coordinator
indentifies the circuit in an assessment of a future year more than 39
months beyond the year in which the assessment is conducted.
8. Violation Risk Factors/Violation Severity Levels
35. To determine a base penalty amount for a violation of a
Requirement within a Reliability standard, NERC must first determine an
initial range for the penalty amount. To do so, NERC assigns a
violation risk factor to each Requirement of a Reliability Standard
that relates to the expected or potential impact of a violation of the
Requirement on the reliability of the Bulk-Power System. NERC may
propose either a lower, medium, or high violation risk factor for each
Requirement. The Commission has established guidelines for evaluating
the validity of each violation risk factor assignment.\38\ NERC also
assigns each Requirement one of four violation severity levels--low,
moderate, high, and severe--as measurements for the degree to which the
requirement was violated in a specific circumstance.\39\ NERC assigns
Requirements R1, R2, and R6 a ``high'' violation risk factor,
Requirement R3 a ``medium'' violation risk factor, and Requirements R4
and R5 a ``lower'' violation risk factor. The NERC Petition proposes
violation severity levels for each of the Requirements of proposed
Reliability Standard PRC-023-2.
---------------------------------------------------------------------------
\38\ See North American Electric Reliability Corp., 135 FERC
61,166 (2011); North American Electric Reliability
Corp.,119 FERC ] 61,145, order on reh'g, 120 FERC ] 61,145, at P 8-
13 (2007).
\39\ See North American Electric Reliability Corp., 135 FERC ]
61,166; North American Electric Reliability Corp., 123 FERC ] 61,284
(2008).
---------------------------------------------------------------------------
B. NERC Rules of Procedure Section 1700--Challenges to Determinations
36. Proposed NERC Rules of Procedure Section 1700--Challenges to
Determinations allows registered entities to challenge a planning
coordinator's determination made under a Reliability Standard or terms
defined in the Glossary of Terms Used in NERC Reliability Standards.
Proposed Rule 1702 sets out the procedure for challenging a
determination by a planning coordinator under Reliability Standard PRC-
023-2. It provides that a registered entity is encouraged, but not
required, initially to meet with the planning coordinator to resolve
any dispute. If the matter cannot be resolved, the registered entity
may challenge the determination with the appropriate Regional Entity,
and if not satisfied with the Regional Entity's decision, may appeal to
NERC. Review by NERC would initially be handled by a panel appointed by
the NERC Board of Trustees. The Board of Trustees would then have the
authority, but not the duty, to review the matter upon the request of
the planning coordinator or registered entity. The final NERC decision
may then be appealed to the applicable governmental authority, e.g.,
the Commission for appeals within the United States.
III. Discussion
37. We agree with NERC that the proposed Reliability Standard PRC-
023-2 addresses the reliability gaps identified in Order No. 733 that
relate specifically to Reliability Standard PRC-023-1 and represents an
improvement in the Reliability Standard. Accordingly, under section
215(d)(2) of the FPA, the Commission proposes to approve the new
Reliability Standard, including its Violation Risk Factors and
Violation Severity Levels, as just, reasonable, not unduly
discriminatory or preferential, and in the public interest. Also, under
section 215(f) of the FPA, the Commission proposes to approve NERC Rule
of Procedure Section 1700--Challenges to Determinations as just,
reasonable, not unduly discriminatory or preferential, in the public
interest, and satisfying the requirements of section 215(c) of the FPA.
NERC reports that it is in the process of applying the test set forth
in Attachment B to a representative sample of utilities from each of
the three Interconnections and will file the results of these tests in
a report on or before February, 2013 (Report). In order to better
understand the practical application of the test, the Commission
proposes to direct the ERO to address specific matters described below
in the Report.
38. Based on our review of NERC's petition and accompanying
information, we propose to find that the proposed
[[Page 58430]]
Reliability Standard and NERC Rule of Procedure Section 1700--
Challenges to Determinations adequately address the directed
modifications set forth in Order No. 733 regarding Reliability Standard
PRC-023-1. Specifically, we propose to find that proposed Reliability
Standard PRC-023-2 and the proposed NERC Rule of Procedure address the
following Order No. 733 directives: (1) Adopt an ``add in'' approach to
sub-100 kV facilities and modify Requirement R3 to specify the test
planning coordinators must use to determine whether a sub-200 kV
facility is critical to reliability; (2) establish a mechanism for
registered entities to challenge criticality determinations; (3)
require applicable entities to notify transmission operators of
facilities that implement sub-requirement R1.2; (4) modify sub-
requirement R1.10 to require verification that the limiting piece of
equipment can sustain the anticipated overload; (5) direct the ERO to
document facilities that have protective relays set pursuant to sub-
requirement R1.12; (6) add Regional Entities to the list of those that
receive the critical facilities list pursuant to sub-requirement 3.3;
(7) include section 2 of Attachment A as an additional Requirement; (8)
revise section 1 of Attachment A to include supervising relay elements
associated with the identified reliability concern subject to the
Standard; (9) create an implementation plan for sub-100 kV facilities;
and (10) remove the exceptions footnote from the ``Effective Dates''
section. In light of the manner in which it addresses these directives,
the proposed Reliability Standard represents an improvement in
transmission relay loadability.
39. Attachment A to the proposed Reliability Standard has been
modified to extend coverage of the Standard to phase overcurrent
supervisory elements associated with current-based, communication-
assisted schemes capable of tripping for loss of communications. While
the description of the supervisory elements is more specific than the
directive in Order No. 733,\40\ the proposed Attachment A reflects
industry comment regarding the potential for unintended, negative
reliability consequences that could arise from an overly broad
description. In light of the explanation provided and our reliability
concern,\41\ we consider the proposed alternative solution to be an
equally effective and efficient approach to addressing the Commission's
reliability concerns.
---------------------------------------------------------------------------
\40\ Order No. 733, 130 FERC ] 61,221 at P 264.
\41\ Id. P 251.
---------------------------------------------------------------------------
40. Transmission relay loadability is important to ensuring the
reliability of the Bulk-Power System. The ERO has proposed changes to
currently effective Reliability Standard PRC-023-1 on many issues,
including (1) Extending its coverage to communication assisted
supervising elements and out-of-step blocking schemes; (2) requiring
that a uniform test is applied consistently by planning coordinators
utilizing their judgment to identify sub-200 kV circuits to which the
Reliability Standard must apply; (3) requiring that load responsive
transformer fault protection relays be set to reflect the transformer's
mechanical withstand capability; and (4) ensuring communication
regarding the ratings used to verify transmission facility relay
loadability. These changes extend and strengthen the reliability
benefits currently effective Reliability Standard PRC-023-1 was
designed to achieve.
41. Attachment B to the proposed Reliability Standard specifies the
test planning coordinators are required to use to determine whether a
sub-200 kV facility is critical to reliability. NERC states that it
plans to revise the test, if necessary, based on the results of this
testing and the clarifications regarding the test made in Order No.
733-A.\42\ The Commission seeks to better understand the implementation
and effects of Requirement R6, and criteria B4 and B5, as they are used
to identify operationally critical sub-200 kV facilities.
---------------------------------------------------------------------------
\42\ NERC Petition at 13.
---------------------------------------------------------------------------
Questions Regarding Test to Determine Critical Sub-200 kV Facilities
42. Criterion B4 of Attachment B requires application of proposed
Reliability Standard PRC-023-2 to any circuit identified through a
specified set of power flow analyses performed by planning
coordinators. Planning coordinators must apply their engineering
judgment in the simulation of double contingency combinations in order
to determine which combinations of contingencies result in undesirable
tripping. In guidance given in Order No. 733, the Commission stated
that for Category C contingencies (i.e., events resulting in the loss
of two or more elements) desirable system performance includes, among
other things, the maintenance of all facilities within their applicable
thermal, voltage, or stability ratings (short time ratings are
applicable).\43\ An impedance relay reads the magnitude and phase angle
of both the current and voltage quantities, and if the combination
results in an apparent impedance that encroaches or penetrates the
relay's operational settings, the relay is susceptible to undesirable
tripping. The performance standard proposed in Attachment B requires
the planning coordinator to monitor thermal ratings but does not
consider the other parameters that could result in a relay trip event
without high currents.
---------------------------------------------------------------------------
\43\ Order No. 733, 130 FERC ] 61,221 at P 84.
---------------------------------------------------------------------------
43. NERC states that though ``the system performance measure in
this test is less stringent than required for Category C contingencies
in TPL-003, it is important to note that the contingency itself is more
stringent than a Category C contingency [because it does not allow
manual system adjustments between the two contingencies as does a
Category C contingency], and the contingency and system performance
measure have been developed together * * * .'' \44\ However, the
standard is silent as to the rigor of the simulations other than
requiring the planning coordinators to apply their engineering
judgment. We propose that the ERO address in the Report whether the
power system assessment proposed in criterion B4 includes the critical
system conditions utilized under Reliability Standard TPL-003-0
Requirement R1.3.2 \45\ and whether applicable entities evaluate relay
loadability under the B4 criterion consistent with Requirement R1 which
requires, in part, that they ``evaluate relay loadability at 0.85 per
unit voltage and a power factor angle of 30 degrees'' in addition to
applicable current criteria. If the evaluation uses other per unit
voltage and power factor angle assumptions, we propose that the Report
include a comparison of results obtained from those that would be
achieved were the assumptions consistent with Requirement R1.
---------------------------------------------------------------------------
\44\ NERC Petition at 19.
\45\ Reliability Standard TPL-003-0 Requirement R1.3.2 provides
that a transmission planner assessment shall ``[c]over critical
system conditions and study years as deemed appropriate by the
responsible entity.''
---------------------------------------------------------------------------
44. Criterion B5 of Attachment B requires compliance with the
proposed Reliability Standard with respect to a ``circuit * * *
selected by the Planning Coordinator based on technical studies or
assessments, other than those specified in criteria B1 through B4, in
consultation with the Facility owner.'' The Commission proposes that
the Report comment on what ``technical studies or assessments''
planning coordinators use to identify critical facilities.
45. According to the NERC Petition, ``[d]uring the standard
development
[[Page 58431]]
process, a number of industry comments expressed concern with potential
confusion regarding use of the phrase `critical to the reliability of
the bulk electric system' in the context of PRC-023-1 versus other
standards such as those addressing critical infrastructure.'' \46\ As a
result, the proposed Requirement R6 omits that phrase and refers
instead to circuits ``for which Transmission Owners, Generator Owners,
and Distribution Providers must comply with Requirements R1 through
R5.'' In contrast, however, the Blackout Report used the phrase
``operationally significant,'' and the test in Attachment B is
``designed to identify circuits that if tripped on relay loadability
following an initiating event could contribute to undesirable system
performance similar to what occurred during the August 2003 Blackout.''
\47\ Notwithstanding the various phrases used to describe the
reliability objective, the NERC Petition indicates that the test is
intended to identify all circuits in a planning coordinator's area that
could have an operational impact on the reliability of the bulk
electric system. The Commission proposes that the Report assess whether
Attachment B is sufficiently comprehensive to capture all such
circuits.
---------------------------------------------------------------------------
\46\ NERC Petition at 15.
\47\ Id.
---------------------------------------------------------------------------
Summary
46. In summary, the Commission proposes to approve proposed
Reliability Standard PRC-023-2 as just, reasonable, not unduly
discriminatory or preferential, and in the public interest. We also
propose to approve proposed NERC Rules of Procedure Section 1700--
Challenges to Determinations as just, reasonable, not unduly
discriminatory or preferential, in the public interest, and satisfying
the requirements of section 215(c) of the FPA. In addition, the
Commission proposes that NERC addresses in the Report questions
regarding the system assessment simulations and results of the power
flow analyses criterion in the proposed test for critical facilities.
IV. Information Collection Statement
47. The Office of Management and Budget (OMB) regulations require
approval of certain information collection requirements imposed by
agency rules.\48\ Upon approval of a collection(s) of information, OMB
will assign an OMB control number and expiration date. Respondents
subject to the filing requirement 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. The
Paperwork Reduction Act (PRA) \49\ requires each federal agency to seek
and obtain OMB approval before undertaking a collection of information
directed to ten or more persons, or continuing a collection for which
OMB approval and validity of the control number are about to
expire.\50\
---------------------------------------------------------------------------
\48\ 5 CFR 1320.11.
\49\ 44 U.S.C. 3501-20.
\50\ 44 U.S.C. 3502(3)(A)(i), 55 U.S.C. 3507(a)(3).
---------------------------------------------------------------------------
48. The Commission is submitting these reporting and recordkeeping
requirements to OMB for its review and approval under section 3507(d)
of the PRA. Comments are solicited on the Commission's need for this
information, whether the information will have practical utility, the
accuracy of provided burden estimates, ways to enhance the quality,
utility, and clarity of the information to be collected, and any
suggested methods for minimizing the respondent's burden, including the
use of automated information techniques.
49. This Notice of Proposed Rulemaking proposes to approve
Reliability Standard PRC-023-2 (Transmission Relay Loadability) which
will replace currently effective Reliability Standard PRC-023-1
approved by the Commission in Order No. 733. Rather than creating
entirely new requirements regarding the setting of protective relays,
the proposed Reliability Standard instead modifies and improves the
existing Reliability Standard. Thus this proposed rulemaking does not
impose entirely new burdens on the effected entities. For example, the
currently effective Reliability Standard PRC-023-1 requires
transmission owners, generation owners, and distribution providers to
each have evidence to show that each of its transmission relays are set
according to one of the criteria in criteria R1.1 through R1.13.
Similarly, proposed Reliability Standard PRC-023-2 requires
transmission owners, generation owners, and distribution providers to
have evidence that each of its transmission relays is set according to
one of the 13 criteria in Requirement R1 but adds that each such entity
shall also have evidence that relays set according to criterion 10 do
not expose the transformer to fault levels and durations beyond those
indicated in the Standard. Thus, the recordkeeping obligations for some
Requirements are more specific but not necessarily more expansive than
those of currently effective Reliability Standard PRC-023-1. However,
proposed PRC-023-2 does add new Requirements, each of which has new
recordkeeping obligations.
50. Proposed Requirement R2 will require each transmission owner,
generator owner, and distribution provider to have evidence that its
out-of-step blocking elements are set in accordance with the Standard,
and proposed Requirements R4 and R5 will require those same entities to
maintain evidence that they have informed the appropriate parties of
their updated lists of certain circuits. Under Requirement R6, planning
coordinators will be required to execute a test for applicability of
the Standard as set forth in Attachment B and retain analyses,
calculation summaries, or study reports to evidence execution of the
test, whereas under the currently effective PRC-023-1, a test was
required but only the results needed to be retained. Because an
unspecified test is currently required to be carried out on facilities
operated at between 100 kV and 200 kV under currently effective
Reliability Standard PRC-023-1, for purposes of this analysis, we
assume that there is little additional cost for planning coordinators
to implement and document that portion of the test. However, the
proposed Requirement R6 imposes the new burdens of performing the test
on sub-100 kV facilities, maintaining appropriate records, and
distributing the list of circuits identified by the test to Regional
Entities.
51. Public Reporting Burden: Our estimate below regarding the
number of respondents is based on the NERC compliance registry as of
July 29, 2011. According to the NERC compliance registry, there are 335
transmission owners, 793 generation owners, 553 distribution providers,
and 72 planning coordinators. However, under NERC's compliance
registration program, entities may be registered for multiple
functions, so these numbers incorporate some double counting. The net
number of entities responding will be approximately 645 entities
registered as a transmission owner, a distribution provider, or a
generation owner that is also a transmission owner and/or a
distribution owner, and 72 planning coordinators.\51\ The estimated
burden for the requirements in this Order follow:
---------------------------------------------------------------------------
\51\ Under its applicability provisions, proposed Reliability
Standard applies to specified circuits such that very few, if any,
generator owners that are not also a transmission owner and/or a
distribution provider will be subject to the Standard.
[[Page 58432]]
----------------------------------------------------------------------------------------------------------------
Number of Number of Total annual
Changes to FERC-725G data respondents responses per Average burden hours hours (1 x 2 x
collection annually (1) respondent (2) per response 52 (3) 3)
----------------------------------------------------------------------------------------------------------------
R1 criterion 1.10: TOs, GOs, and 645 1 Analysis for 5,160
DPs must analyze and document compliance 1,290
criterion 1.10 compliance. documents--8.
Record Retention--2..
R2: TOs, GOs, and DPs must perform 645 1 Analysis for 5,160
analysis and retain evidence of compliance 1,290
compliance. documents--8.
Record Retention--2..
R4 and R5: TOs, GOs, and DPs must 645 1 Reporting (dist. of 6,450
distribute updated lists and list)--10. 6,450
retain evidence that lists were Record Retention--10.
distributed.
R6: PC must perform assessment, 72 1 Reporting (assessment 1,440
distribute list of circuits and and dist. of list)-- 720
retain evidence of testing and 20.
distribution 53. Record Retention--10.
Total.......................... ................ ................ ..................... 27,960
----------------------------------------------------------------------------------------------------------------
Information Collection Costs: The Commission seeks comments on the
costs to comply with these requirements and recordkeeping burden
associated with Reliability Standard PRC-023-2.
Total Annual Hours for Collection: (Reporting and Record
Retention) = 27,960 hours.
Total Estimated Reporting/Analysis Cost = 18,210 hours @
$120/hour = $2,185,200.
---------------------------------------------------------------------------
\52\ The burden hours are based on estimates that the Commission
has used for similar reporting requirements.
\53\ This applies to the portion of R6 that deals with testing
for sub-100 kV facilities as described in the text. In addition it
includes burden hours associated with adding Regional Entities to
the list of entities to receive a list of circuits from the planning
coordinator.
---------------------------------------------------------------------------
Total Estimated Record Retention Cost = 9,750 hours @ $28/
hour = $273,000.
Total Estimated Annual Cost (reporting + Record Retention)
\54\ = $2,458,200.
---------------------------------------------------------------------------
\54\ The hourly reporting cost is based on the estimated cost of
an engineer to implement the requirements of the rule. The record
retention cost comes from Commission staff research on record
retention requirements.
---------------------------------------------------------------------------
Title: Mandatory Reliability Standards for the Bulk-Power
System.
Action: FERC 725G, Proposed Modification to FERC-725G.
OMB Control No: 1902-0252.
Respondents: Business or other for profit, and/or not for
profit institutions.
Frequency of Responses: On occasion.
Necessity of the Information: This proposed rule would
approve a revised Reliability Standard that modifies an existing
requirement regarding setting protective relays according to specific
criteria in order to ensure that the relays reliably detect and protect
the electric network from all fault conditions, but do not limit
transmission loadability or interfere with system operators' ability to
protect system reliability. Proposed Reliability Standard PRC-023-2
requires entities to set transmission relays according to specified
criteria and to retain evidence of compliance. It also requires
planning coordinators to implement a test to determine which sub-200 kV
facilities are critical to the reliability of the power system and
subjects such facilities to the requirements of the proposed Standard.
The proposed Reliability Standard requires entities to maintain records
subject to review by the Commission and NERC to ensure compliance with
the Reliability Standard.
Internal review: The Commission has reviewed the
requirements pertaining to the proposed Reliability Standard for the
Bulk-Power System and determined that the proposed requirements are
necessary to meet the statutory provisions of the Energy Policy Act of
2005. These requirements conform to the Commission's plan for efficient
information collection, communication and management within the energy
industry. The Commission has assured itself, by means of internal
review, that there is specific objective support for the burden
estimates associated with the information requirements.
52. Interested persons may obtain information on the reporting
requirements by contacting: Federal Energy Regulatory Commission, 888
First Street, NE., Washington, DC 20426 [Attention: Ellen Brown, Office
of the Executive Director, e-mail: [email protected], Phone: (202)
502-8663, fax: (202) 273-0873]. Comments on the requirements of this
order may also be sent to the Office of Information and Regulatory
Affairs, Office of Management and Budget, Washington, DC 20503
[Attention: Desk Officer for the Federal Energy Regulatory Commission].
For security reasons, comments should be sent by e-mail to OMB at
[email protected]. Please reference OMB Control Number 1902-
0252 and the docket number of this Order in your submission.
V. Environmental Analysis
53. 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.\55\ The
actions proposed here fall within the categorical exclusion in the
Commission's regulations for rules that are clarifying, corrective or
procedural, for information gathering, analysis, and dissemination.\56\
Accordingly, neither an environmental impact statement nor
environmental assessment is required.
---------------------------------------------------------------------------
\55\ Regulations Implementing the National Environmental Policy
Act, Order No. 486, 52 FR 47897 (Dec. 17, 1987), FERC Stats. & Regs.
Regulations Preambles 1986-1990 ] 30,783 (1987).
\56\ 18 CFR 380.4(a)(5).
---------------------------------------------------------------------------
VI. Regulatory Flexibility Act Analysis
54. The Regulatory Flexibility Act of 1980 (RFA) \57\ generally
requires a description and analysis of proposed and final rules that
will have significant economic impact on a substantial number of small
entities. The RFA mandates consideration of regulatory alternatives
that accomplish the stated objectives of a proposed order and that
minimize any significant economic impact on a substantial number of
small entities. The Small Business Administration's (SBA) Office of
Size Standards develops the numerical definition of a small
business.\58\ The SBA has established a size standard for electric
utilities, stating that a firm is small if, including its affiliates,
it is primarily engaged in the transmission, generation and/or
distribution of electric energy for sale and its total electric output
for the preceding twelve
[[Page 58433]]
months did not exceed four million megawatt-hours.\59\
---------------------------------------------------------------------------
\57\ 5 U.S.C. 601-612.
\58\ 13 CFR 121.101.
\59\ 13 CFR 121.201, Sector 22, Utilities & n. 1.
---------------------------------------------------------------------------
55. Proposed Reliability Standard PRC-023-2 modifies currently
existing Reliability Standard PRC-023-1 which requires applicable
entities to set protective relays according to specific criteria, to
communicate about such settings with specified entities, and to conduct
assessments to determine the applicability of the Standard to 100-200
kV facilities. The proposed standard modifies PRC-023-1 by (1)
Increasing communication and documentation requirements, (2) extending
the applicability of the Standard to formerly excluded relays, and (3)
standardizing the terms of the assessment whose terms were formerly not
specified. In addition, proposed PRC-023-2 extends the current
requirement that planning coordinators annually assess which 100-200 kV
circuits must be brought into compliance with the Standard and will
require planning coordinators to carry out the assessment with respect
to some sub-100 kV facilities.
56. Comparison of the NERC compliance registry with data submitted
to the Energy Information Administration on Form EIA-861 indicates that
perhaps as many 103 transmission owners, 329 distribution providers, 46
generation owners, and 8 planning coordinators qualify as small
entities. However, under NERC's compliance registration program,
entities may be registered for multiple functions, so these numbers
incorporate some double counting. The net number of registered entities
that qualify as small entities responding to this rule will be
approximately 339 entities registered as a transmission owner, a
distribution provider, or a generation owner that is also a
transmission owner and/or a distribution provider, and 8 planning
coordinators. The proposed rule directly affects each of the small
entities. Therefore, FERC has determined that this proposed rule will
have an impact on a substantial number of small entities. However, the
Commission has determined that the impact on entities affected by the
proposed rule will not be significant. The Commission estimates that in
order to comply with the Standard's modification of existing
requirements each of the small entities registered as planning
coordinators will face a cost of $2,680 and each of the remaining small
entities (transmission owners, distribution providers, or generation
owners that are also transmission owners and/or distribution providers)
will face a cost of $3,512. Accordingly, the Commission determines that
the incremental cost of Reliability Standard PRC-023-2 (going from PRC-
023-1 to PRC-023-2) is minimal, and should not present a significant
operating cost to any of the small entities.
57. Based on this understanding, the Commission certifies that this
Reliability Standard will not have a significant economic impact on a
substantial number of small entities. Accordingly, no regulatory
flexibility analysis is required.
58. The Commission invites comment from members of the public
regarding the accuracy of the certification provided here, the economic
analysis, and its underlying assumptions.
VII. Comment Procedures
59. The Commission invites interested persons to submit comments on
the matters and issues proposed in this notice to be adopted, including
any related matters or alternative proposals that commenters may wish
to discuss. Comments are due November 21, 2011. Comments must refer to
Docket No. RM11-16-000, and must include the commenter's name, the
organization they represent, if applicable, and their address in their
comments.
60. Commenters may submit comments, identified by Docket No. RM11-
16-000 and in accordance with the requirements posted on the
Commission's Web site, http://www.ferc.gov. Comments may be submitted
by any of the following methods:
Agency Web site: Documents created electronically using
word processing software should be filed in native applications or
print-to-PDF format, and not in a scanned format, at http://www.ferc.gov/docs-filing/efiling.asp.
Mail/Hand Delivery: Commenters unable to file comments
electronically must mail or hand deliver their comments to: Federal
Energy Regulatory Commission, Secretary of the Commission, 888 First
Street, NE., Washington, DC 20426. These requirements can be found on
the Commission's Web site, see, e.g., the ``Quick Reference Guide for
Paper Submissions,'' available at http://www.ferc.gov/docs-filing/efiling.asp or via phone from FERC Online Support at (202) 502-6652 or
toll-free at 1 (866) 208-3676.
61. All comments will be placed in the Commission's public files
and may be viewed, printed, or downloaded remotely as described in the
Document Availability section below. Commenters on this proposal are
not required to serve copies of their comments on other commenters.
VIII. Document Availability
62. In addition to publishing the full text of this document in the
Federal Register, the Commission provides all interested persons an
opportunity to view and/or print the contents of this document via the
Internet through FERC's Home Page (http://www.ferc.gov) and in FERC's
Public Reference Room during normal business hours (8:30 a.m. to 5 p.m.
Eastern time) at 888 First Street, NE., Room 2A, Washington, DC 20426.
63. From FERC's Home Page on the Internet, this information is
available on eLibrary. The full text of this document is available on
eLibrary in PDF and Microsoft Word format for viewing, printing, and/or
downloading. To access this document in eLibrary, type the docket
number excluding the last three digits of this document in the docket
number field.
64. User assistance is available for eLibrary and the FERC's Web
site during normal business hours from FERC Online Support at (202)
502-6652 (toll free at 1 (866) 208-3676) or e-mail at
[email protected], or the Public Reference Room at (202) 502-
8371, TTY (202) 502-8659. E-mail the Public Reference Room at
[email protected].
By direction of the Commission.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2011-24167 Filed 9-20-11; 8:45 am]
BILLING CODE 6717-01-P