[Federal Register Volume 63, Number 26 (Monday, February 9, 1998)]
[Notices]
[Pages 6559-6560]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-3134]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission
[Docket No. PL98-3-000]


Processes for Assuring Nondiscriminatory Transmission Service as 
New Reliability Rules Are Developed for Using the Transmission System; 
Supplemental Notice of Conference

February 2, 1998.

I

    On January 5, 1998, the Federal Energy Regulatory Commission 
(Commission) announced its intention to convene a public conference on 
February 20, 1998, to discuss what role the Commission should play and 
what procedures it should follow, in the absence of new federal 
legislation on reliability issues, to address the effect of new 
reliability standards on jurisdictional electric transmission service 
(63 FR 1453, January 9, 1998). The January 5 notice affirmed the 
Commission's commitment to rules and practices for reliable operation 
of the grid that are compatible with open, non-discriminatory use of 
transmission systems, and requested expressions of interest from 
persons interested in participating in an informal discussion of 
potential processes for achieving this end. The notice emphasized that 
the conference is for the limited purpose of discussing process issues.
    In this supplemental notice, the Commission announces the format of 
the round-table discussion, suggests various process models that may 
warrant consideration, and identifies those persons who have been 
invited to participate in the round-table. In addition, procedures are 
established for the submission of written comments following the 
conference.

II

    The Commission's intention is to have a free-flowing discussion 
unbound by formal, timed statements. The panel participants and their 
affiliations are listed in Attachment A. They have been selected for 
broad representation, within the constraints of the round-table format.
    The round-table participants will discuss the preferred process for 
Commission consideration and approval of a new or revised reliability 
standard or rule that is to be used by Commission jurisdictional 
transmission providers and that appears to be a term or condition of 
transmission service. For example, a reliability organization (NERC, 
regional council, independent system operator, or other group that is 
larger than one transmission provider) may develop a new reliability 
rule or change an existing rule. A rule that appears to be a term or 
condition of transmission service may require Commission approval.
    The Commission has reviewed the comments filed in response to the 
January 5 notice. We appreciate the commenters' thoughtful 
consideration and the diverse points of view expressed. We suggest 
below three processes that merit discussion at the round-table. In 
putting forward these three processes, the Commission is not suggesting 
that they are the only ones under consideration. Any participant may 
suggest variations on these processes or an entirely different process.
    Process 1--All transmission providers that are members of a 
reliability organization would follow that organization's rule with no 
Commission approval. Transmission customers wishing to challenge the 
rule as an inappropriate term or condition of transmission service for 
a jurisdictional utility would file a complaint with the Commission 
pursuant to Section 206 of the Federal Power Act (FPA).
    Process 2--All jurisdictional utilities that are members of a 
reliability organization would file the rule change as an amendment to 
their transmission tariffs.
    Process 3--The reliability organization would file a request for 
declaratory order that the rule is a just and reasonable term or 
condition of transmission service. The rule would be effective 
following a Commission order approving the rule. Jurisdictional 
utilities would file tariff amendments to comply with the Commission 
order.
    The discussion will focus on the potential advantages and 
disadvantages of each process. Issues that may need to be addressed 
include whether each process is:
     Consistent with the FPA;
     efficient from the viewpoint of each of the industry 
participants and the Commission;
     able to accommodate any potential need for urgent 
implementation of the rule; and
     compatible with regulatory approvals for non-
jurisdictional transmission providers;
    If Process 2 or 3 is employed and the traditional ``rule of 
reason'' with respect to inclusion of utility practices in filed 
tariffs continues to apply, participants will consider criteria for 
identifying those rules that should be treated as terms and conditions 
of service and,

[[Page 6560]]

therefore, require approval by the Commission.
    If the Commission is unable to approve a particular condition, 
consideration would be required as to what alternative condition, if 
any, would serve the specific reliability purpose intended by the 
reliability organization.
    The Chairman has asked Commissioner Vicky Bailey to chair the 
round-table discussions. The round-table will begin at 9:30 am in the 
Commission Meeting Room, Room 2C, 888 First Street, NW, Washington, 
D.C. 20426. Participants who have audio/visual requirements should 
contact Wanda Washington at 202-208-1460, no later than February 13, 
1998.
    If there is sufficient interest, the Capitol Connection will 
provide a live broadcast of the round-table to interested persons. 
Persons interested in receiving the broadcast for a fee should contact 
Shirley Al-Jarani by telephone at the Capitol Connection at 703-993-
3100 no later than February 6, 1998.
    In addition, National Narrowcast Network's Hearings-On-The-Line 
service covers all Commission meetings live by telephone so that 
interested persons can listen to the proceedings from any telephone 
without special equipment. Call 202-966-2211 for details. Billing is 
based on time on-line.
    The Commission will also afford an opportunity for persons wishing 
to file written comments in response to the round-table discussion. 
Those wishing to file such comments should do so by March 2, 1998.

FOR FURTHER INFORMATION CONTACT: David N. Cook, Federal Energy 
Regulatory Commission, 888 First Street, NE., Washington, D.C. 20426, 
(202) 208-0955.
Linwood A. Watson, Jr.,
Acting Secretary.

Attachment A--Reliability Round-Table Panelists, February 20, 1998

Kurt Conger, Director of Policy Analysis, American Public Power 
Association
Jose Delgado, Assistant Vice President, Wisconsin Electric Power 
Company and Chairman and President, MidAmerican Interconnected Network
Dennis Eyre, Executive Director, Western System Coordinating Council
Michael Gent, President, North American Electric Reliability Council
Philip G. Harris, President and Chief Executive Officer, PJM 
Interconnection and Regional Manager, Mid-Atlantic Area Council
Charles Gray, General Counsel, National Association of Regulatory 
Utility Commissioners
Susan Kelly, Senior Regulatory Counsel, National Rural Electric 
Cooperative Association
William Newman, Senior Vice President, Southern Company
Sonny Popowsky, Consumer Advocate of Pennsylvania
Vann Prater, Director, Electricity Affairs and Procurement, AMOCO 
Exploration and Production Sector, Electricity Consumers Resource 
Council
Paul Barber, Vice President, Transmission and Engineering, Citizens 
Power, LLC
Julie Simon, Director of Policy, Electric Power Supply Association
Ronald J. Threlkeld, Senior Vice President, British Columbia Hydro and 
Chairman Canadian Electricity Association
Steven J. Kean, Senior Vice President, Enron Corporation, 
Representative of the Department of Energy.

[FR Doc. 98-3134 Filed 2-6-98; 8:45 am]
BILLING CODE 6717-01-M