[Federal Register Volume 79, Number 14 (Wednesday, January 22, 2014)]
[Proposed Rules]
[Pages 3547-3552]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-01143]


-----------------------------------------------------------------------

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

18 CFR Part 40

[Docket No. RM14-1-000]


Reliability Standard for Geomagnetic Disturbance Operations

AGENCY:  Federal Energy Regulatory Commission, DOE.

ACTION:  Notice of proposed rulemaking.

-----------------------------------------------------------------------

SUMMARY:  Pursuant to section 215 of the Federal Power Act, the Federal 
Energy Regulatory Commission (Commission) proposes to approve 
Reliability Standard EOP-010-1 (Geomagnetic Disturbance Operations). 
The North American Electric Reliability Corporation, the Commission-
certified Electric Reliability Organization, submitted the proposed 
Reliability Standard for Commission approval in response to a 
Commission directive in Order No. 779. Proposed Reliability Standard 
EOP-010-1 is designed to mitigate the effects of geomagnetic 
disturbances on the Bulk-Power System by requiring responsible entities 
to implement Operating Plans and Operating Procedures or Processes.

DATES:  Comments are due March 24, 2014.

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

FOR FURTHER INFORMATION CONTACT: 
Michael Gandolfo (Technical Information), Office of Electric 
Reliability, Federal Energy Regulatory Commission, 888 First Street 
NE., Washington, DC 20426, Telephone: (202) 502-6817, 
[email protected].
Matthew Vlissides (Legal Information), Office of the General Counsel, 
Federal Energy Regulatory Commission, 888 First Street NE., Washington, 
DC 20426, Telephone: (202) 502-8408, [email protected].

SUPPLEMENTARY INFORMATION: 
146 FERC ] 61,015
Before Commissioners: Cheryl A. LaFleur, Acting Chairman; Philip D. 
Moeller, John R. Norris, and Tony Clark.
(Issued January 16, 2014)


[[Page 3548]]


    1. Pursuant to section 215 of the Federal Power Act (FPA),\1\ the 
Commission proposes to approve Reliability Standard EOP-010-1 
(Geomagnetic Disturbance Operations). The North American Electric 
Reliability Corporation (NERC), the Commission-certified Electric 
Reliability Organization (ERO), submitted the proposed Reliability 
Standard for Commission approval in response to a Commission directive 
in Order No. 779.\2\ The proposed Reliability Standard is designed to 
mitigate the effects of geomagnetic disturbances (GMDs) on the Bulk-
Power System by requiring responsible entities to implement Operating 
Plans and Operating Procedures or Processes. The Commission also 
proposes to approve the associated violation risk factors and violation 
severity levels, implementation plan, and effective dates proposed by 
NERC.
---------------------------------------------------------------------------

    \1\ 16 U.S.C. 824o.
    \2\ Reliability Standards for Geomagnetic Disturbances, Order 
No. 779, 78 FR 30747 (May 23, 2013), 143 FERC ] 61,147, reh'g 
denied, 144 FERC ] 61,113 (2013).
---------------------------------------------------------------------------

I. Background

A. Section 215 and Mandatory Reliability Standards

    2. Section 215 of the FPA requires the Commission to certify an ERO 
to develop mandatory and enforceable Reliability Standards, subject to 
Commission review and approval.\3\ Once approved, the Reliability 
Standards may be enforced in the United States by the ERO, subject to 
Commission oversight, or by the Commission independently.\4\
---------------------------------------------------------------------------

    \3\ 16 U.S.C. 824o.
    \4\ Id. 824o(e).
---------------------------------------------------------------------------

B. Order No. 779

    3. In Order No. 779, the Commission directed NERC, pursuant to FPA 
section 215(d)(5), to develop and submit for approval proposed 
Reliability Standards that address the impact of GMDs on the reliable 
operation of the Bulk-Power System. The Commission based its directive 
on the potentially severe, wide-spread impact on the reliable operation 
of the Bulk-Power System that can be caused by GMD events and the 
absence of existing Reliability Standards to address GMD events.\5\
---------------------------------------------------------------------------

    \5\ Order No. 779, 143 FERC ] 61,147 at P 3.
---------------------------------------------------------------------------

    4. The Commission directed NERC to implement the directive in two 
stages. In the first stage, the Commission directed NERC to submit, 
within six months of the effective date of Order No. 779, one or more 
Reliability Standards (First Stage GMD Reliability Standards) that 
require owners and operators of the Bulk-Power System to develop and 
implement operational procedures to mitigate the effects of GMDs 
consistent with the reliable operation of the Bulk-Power System.\6\
---------------------------------------------------------------------------

    \6\ Id. P 2.
---------------------------------------------------------------------------

    5. In the second stage, the Commission directed NERC to submit, 
within 18 months of the effective date of Order No. 779, one or more 
Reliability Standards (Second Stage GMD Reliability Standards) that 
require owners and operators of the Bulk-Power System to conduct 
initial and on-going assessments of the potential impact of benchmark 
GMD events on Bulk-Power System equipment and the Bulk-Power System as 
a whole. Order No. 779 directed that the Second Stage GMD Reliability 
Standards must identify benchmark GMD events that specify what severity 
GMD events a responsible entity must assess for potential impacts on 
the Bulk-Power System.\7\ Order No. 779 explained that, if the 
assessments identify potential impacts from benchmark GMD events, the 
Reliability Standards should require owners and operators to develop 
and implement a plan to protect against instability, uncontrolled 
separation, or cascading failures of the Bulk-Power System, caused by 
damage to critical or vulnerable Bulk-Power System equipment, or 
otherwise, as a result of a benchmark GMD event. The Commission 
directed that the development of this plan could not be limited to 
considering operational procedures or enhanced training alone, but 
should, subject to the potential impacts of the benchmark GMD events 
identified in the assessments, contain strategies for protecting 
against the potential impact of GMDs based on factors such as the age, 
condition, technical specifications, system configuration, or location 
of specific equipment.\8\ Order No. 779 observed that these strategies 
could, for example, include automatically blocking geomagnetically 
induced currents from entering the Bulk-Power System, instituting 
specification requirements for new equipment, inventory management, 
isolating certain equipment that is not cost effective to retrofit, or 
a combination thereof.
---------------------------------------------------------------------------

    \7\ Id.
    \8\ Id.
---------------------------------------------------------------------------

C. NERC Petition

    6. On November 13, 2013, NERC petitioned the Commission to approve 
proposed Reliability Standard EOP-010-1 and its associated violation 
risk factors and violation severity levels, implementation plan, and 
effective dates. NERC states that the proposed Reliability Standard is 
just, reasonable, not unduly discriminatory or preferential, and in the 
public interest. Further, NERC maintains that the proposed Reliability 
Standard satisfies the Commission's directive in Order No. 779 
corresponding to the development and submission of the First Stage GMD 
Reliability Standards.
    7. NERC states that, consistent with Order No. 779 and the NERC 
Functional Model, proposed Reliability Standard EOP-010-1 applies to 
reliability coordinators and to transmission operators with a 
``Transmission Operator Area that includes a power transformer with a 
high side wye-grounded winding with terminal voltage greater than 200 
kV.'' \9\ NERC explains that the proposed Reliability Standard has 
three requirements: (1) Requirement R1 addresses coordination by 
reliability coordinators within their areas; (2) Requirement R2 
addresses the dissemination of space weather information by reliability 
coordinators to ensure that entities within a reliability coordinator 
area have the appropriate information necessary to take action and that 
the same information is available to all entities; and (3) Requirement 
R3 requires transmission operators to develop GMD Operating Procedures 
or Processes.
---------------------------------------------------------------------------

    \9\ NERC Petition at 8 (``A power transformer with a `high side 
wye-grounded winding' refers to a power transformer with windings on 
the high voltage side that are connected in a wye configuration and 
have a grounded neutral connection.'').
---------------------------------------------------------------------------

    8. NERC states that Requirement R1 requires reliability 
coordinators to develop, maintain, and implement a GMD Operating Plan 
that coordinates the GMD Operating Procedures or Operating Processes 
within the reliability coordinator area.\10\ NERC explains that 
reliability coordinators are required to ensure that GMD Operating 
Procedures and Operating Processes in a reliability coordinator area 
are not in conflict, but reliability coordinators will not review the 
technical aspects of the GMD Operating Procedures and Operating 
Processes.\11\ Instead, NERC

[[Page 3549]]

points out that transmission operators will be responsible for the 
technical aspects of their Operating Procedures and Operating 
Processes. NERC further states that Requirement R1 requires reliability 
coordinators to describe the activities that must be undertaken in 
order to mitigate the effects of a GMD event. NERC explains that, 
pursuant to Reliability Standard IRO-001-1.1, reliability coordinators 
have decision-making authority to act and to direct actions to be taken 
by transmission operators, balancing authorities, generator operators, 
transmission service providers, load-serving entities, and purchasing-
selling entities within their reliability coordinator area to preserve 
the reliability of the bulk electric system.
---------------------------------------------------------------------------

    \10\ Operating Plan, Operating Procedure, and Operating Process 
are existing terms defined in the Glossary of Terms Used in NERC 
Reliability Standards. See Glossary of Terms Used in NERC 
Reliability Standards (effective November 21, 2013) at 49-50.
    \11\ NERC explains that ``if Company A submitted an Operating 
Procedure proposing to take Line X out of service under specified 
GMD conditions, and Company B submitted an Operating Procedure that 
relies on Line X remaining in service in the event of a GMD--it is 
the responsibility of the Reliability Coordinator to identify this 
conflict.'' NERC Petition at 11-12 (emphasis in original). Beyond 
identifying a conflict and requiring its resolution by Company A and 
Company B, NERC states that the review is ``not intended to be a 
review by the Reliability Coordinator of the technical aspects of 
the GMD Operating Procedures or Processes.'' Id.
---------------------------------------------------------------------------

    9. NERC states that Requirement R2 requires reliability 
coordinators to disseminate space weather information to ensure 
coordination and consistent awareness in its reliability coordinator 
area. NERC maintains that entrusting this responsibility to reliability 
coordinators is appropriate given the reliability coordinator's wide-
area view. NERC also explains that Requirement R2 replaces existing 
Requirement R3 of Reliability Standard IRO-005-3.1a, which currently 
addresses dissemination of information regarding GMD forecasts.\12\
---------------------------------------------------------------------------

    \12\ According to NERC, Reliability Standard IRO-005-3.1a will 
be retired once the Commission approves proposed Reliability 
Standard IRO-005-4, which is currently pending before the 
Commission. NERC Petition at 13.
---------------------------------------------------------------------------

    10. NERC states that Requirement R3 requires transmission operators 
to develop GMD Operating Procedures or Operating Processes to address 
GMD events. NERC explains that Requirement R3 is not prescriptive and 
allows entities to tailor their Operating Procedures or Operating 
Processes based on the responsible entity's assessment of entity-
specific factors, such as geography, geology, and system topology. 
According to NERC, Requirement R3 requires each transmission operator 
to specify: (1) Steps or tasks that must be conducted to receive space 
weather information; (2) what actions must be taken under what 
conditions, and such conditions must be predetermined; and (3) when and 
under what conditions the Operating Procedure or Operating Process is 
exited. NERC maintains that proposed Reliability Standard EOP-010-1 
does not prescribe specific actions that must be taken by responsible 
entities because ``a `one-size fits all' approach to crafting GMD 
Reliability Standards would fail to recognize the important role of 
locational differences.'' \13\
---------------------------------------------------------------------------

    \13\ NERC Petition at 14.
---------------------------------------------------------------------------

II. Discussion

    11. Pursuant to FPA section 215(d)(2), we propose to approve 
Reliability Standard EOP-010-1 as just, reasonable, not unduly 
discriminatory or preferential, and in the public interest. Proposed 
Reliability Standard EOP-010-1 addresses the directive in Order No. 779 
that NERC submit one or more Reliability Standards that require owners 
and operators of the Bulk-Power System to develop and implement 
operational procedures to mitigate the effects of GMDs consistent with 
the reliable operation of the Bulk-Power System.\14\ As the Commission 
stated in Order No. 779, ``operational procedures, while not a complete 
solution, constitute an important first step to addressing the GMD 
reliability gap because they can be implemented relatively quickly . . 
. [o]perational procedures may help alleviate abnormal system 
conditions due to transformer absorption of reactive power during GMD 
events, helping to stabilize system voltage swings, and may potentially 
isolate some equipment from being damaged or misoperated.'' \15\ The 
Commission seeks comments from interested entities on our proposal to 
approve proposed Reliability Standard EOP-010-1.
---------------------------------------------------------------------------

    \14\ Proposed Reliability Standard EOP-010-1 only addresses the 
First Stage GMD Reliability Standards directed in Order No. 779. The 
proposed Reliability Standard does not address the Second Stage GMD 
Reliability Standards, which NERC indicates are under development. 
NERC Petition at 3.
    \15\ Order No. 779, 143 FERC ] 61,147 at P 36.
---------------------------------------------------------------------------

A. Proposed Reliability Standard EOP-010-1

    12. The Commission proposes to approve Reliability Standard EOP-
010-1 based on our review of NERC's petition and supporting exhibits. 
We believe that the proposed Reliability Standard satisfies the 
directive in Order No. 779 that NERC submit one or more Reliability 
Standards that require owners and operators of the Bulk-Power System to 
develop and implement operational procedures to mitigate the effects of 
GMDs consistent with the reliable operation of the Bulk-Power System. 
Further, the proposed Reliability Standard is consistent with the 
guidance in Order No. 779 that NERC develop Reliability Standards that, 
rather than require specific operational procedures, require 
responsible entities to develop and implement entity-specific 
operational procedures because owners and operators of the Bulk-Power 
System are most familiar with their own equipment and system 
configurations.\16\ The proposed Reliability Standard also requires 
coordination of operational procedures and processes, overseen by a 
functional entity with a wide-area perspective (i.e., reliability 
coordinators), which is also consistent with the guidance in Order No. 
779.\17\
---------------------------------------------------------------------------

    \16\ Id. P 38.
    \17\ Id.
---------------------------------------------------------------------------

    13. With respect to the applicability of proposed Reliability 
Standard EOP-010-1, NERC submitted a white paper explaining the 
technical justification for basing the applicability of the proposed 
Reliability Standard, with respect to transmission operators, on the 
presence of a power transformer with a high side wye-grounded winding 
with terminal voltage greater than 200 kV in the transmission operator 
area.\18\ NERC also explains, in a separate white paper, its proposal 
regarding the applicability of the proposed Reliability Standard to 
reliability coordinators and transmission operators only.\19\ The White 
Paper Supporting Functional Entity Applicability explains that the 
reliability coordinator has ``responsibility and authority for reliable 
operation within the Reliability Coordinator Area (RCA) . . . and 
includes a wide-area view with situational awareness of neighboring 
RCAs.'' \20\ NERC states that including reliability coordinators as 
applicable entities ``provides the necessary coordination for planning 
and real-time actions.'' \21\ With respect to transmission operators, 
NERC explains that ``[l]ike the [reliability coordinator], the 
[transmission operator] has responsibility and authority for the 
reliable operation of the transmission system within a specified 
area.'' \22\ In addition, NERC justifies omitting balancing authorities 
and generator operators from the scope of the proposed Reliability 
Standard. NERC explains that balancing authorities ``can be expected to 
address GMD impacts through use of generation . . . [but] the 
[balancing authority] would not initiate actions unilaterally during a 
GMD event and would instead respond to the direction of the 
[transmission operator]

[[Page 3550]]

and [reliability coordinator].'' \23\ As for generator operators, NERC 
states that some generator operators ``would not have the technical 
basis for taking steps [to mitigate GMDs] on [their] own and would 
instead take steps based on the [reliability coordinator] or 
[transmission operator's] Operating Plans, Processes, or Procedures.'' 
\24\ NERC also notes that generator owners and generator operators will 
be considered for inclusion in the Second Stage GMD Reliability 
Standards, ``which will require applicable entities to conduct 
vulnerability assessment and develop appropriate mitigation strategies 
. . . [and that] [s]uch mitigation strategies could include the 
development of Operating Procedures for applicable [generator owners] 
and [generator operators].'' \25\
---------------------------------------------------------------------------

    \18\ NERC Petition, Exhibit D (White Paper Supporting Network 
Applicability) at 1.
    \19\ NERC Petition, Exhibit E (White Paper Supporting Functional 
Entity Applicability).
    \20\ Id. at 2.
    \21\ Id.
    \22\ Id.
    \23\ Id. at 3-4.
    \24\ Id. at 4.
    \25\ Id.
---------------------------------------------------------------------------

    14. We believe that the applicability designations in the proposed 
Reliability Standard are appropriate, based on the justifications set 
forth in the white papers in Exhibits D and E of NERC's petition.

B. Violation Risk Factors and Violation Severity Levels

    15. Each requirement of proposed Reliability Standard EOP-010-1 
includes one violation risk factor and has an associated set of at 
least one violation severity level. The ranges of penalties for 
violations will be based on the sanctions table and supporting penalty 
determination process described in the Commission-approved NERC 
Sanction Guidelines, according to the NERC petition. The Commission 
proposes to approve the proposed violation risk factors and violation 
severity levels for the requirements proposed in Reliability Standard 
EOP-010-1as consistent with the Commission's established 
guidelines.\26\
---------------------------------------------------------------------------

    \26\ North American Electric Reliability Corp., 135 FERC ] 
61,166 (2011).
---------------------------------------------------------------------------

C. Implementation Plan and Effective Dates

    16. The NERC petition proposes that Reliability Standard EOP-010-1 
become effective the ``first day of the first calendar quarter that is 
six months after the date that this standard is approved by an 
applicable governmental authority.'' \27\ However, NERC states that 
Requirement R2 of Reliability Standard EOP-010-1, pertaining to 
reliability coordinator dissemination of space weather information, is 
meant to replace existing Requirement R3 of Reliability Standard IRO-
005-3.1a, which includes similar language. Therefore, to avoid 
duplicative requirements being enforced at the same time, NERC proposes 
that, if Reliability Standard EOP-010-1 becomes effective prior to the 
retirement of Reliability Standard IRO-005-3.1a, then Requirement R2 of 
Reliability Standard EOP-010-1 will not become effective until the 
first day following retirement of Reliability Standard IRO-005-
3.1a.\28\ Requirements R1 and R3 of Reliability Standard EOP-010-1 will 
still be effective the first day of the first calendar quarter that is 
six months after the date that the proposed Reliability Standard is 
approved by an applicable governmental authority.\29\ The Commission 
proposes to accept NERC's implementation plan and effective dates for 
proposed Reliability Standard EOP-010-1.
---------------------------------------------------------------------------

    \27\ NERC Petition, Exhibit B (Implementation Plan) at 2.
    \28\ We agree with NERC that Reliability Standard IRO-005-3.1a, 
Requirement R3, which requires that ``[e]ach Reliability Coordinator 
shall ensure its Transmission Operators and Balancing Authorities 
are aware of Geo-Magnetic Disturbance (GMD) forecast information and 
assist as needed in the development of any required response 
plans,'' and Requirement R2 of proposed Reliability Standard EOP-
010-1, which requires that ``[e]ach Reliability Coordinator shall 
disseminate forecasted and current space weather information to 
functional entities identified as recipients in the Reliability 
Coordinator's GMD Operating Plan,'' are largely duplicative in that 
both requirements require the dissemination of GMD forecast 
information, at a minimum, to applicable transmission operators.
    \29\ Id. On April 16, 2013, NERC submitted a petition requesting 
approval of three revised IRO Reliability Standards and the 
retirement or revision of six currently-effective Reliability 
Standards, including IRO-005-3.1a (Docket No. RM13-15-000). On 
November 21, 2013, the Commission issued a Notice of Proposed 
Rulemaking that, inter alia, proposes to remand the proposed IRO 
Reliability Standards and related retirements and revisions. See 
Monitoring System Conditions--Transmission Operations Reliability 
Standard, Transmission Operation Reliability Standards, 
Interconnection Reliability Operations and Coordination Reliability 
Standards, Notice of Proposed Rulemaking, 78 FR 73112 (Dec. 5, 
2013), 145 FERC ] 61,158 (2013).
---------------------------------------------------------------------------

III. Information Collection Statement

    17. The Office of Management and Budget (OMB) regulations require 
approval of certain information collection requirements imposed by 
agency rules. 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 an agency 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) requires each federal agency 
to seek and obtain OMB approval before undertaking a collection of 
information directed to ten or more persons, or contained in a rule of 
general applicability.
    18. The Commission is submitting these reporting 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, 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.
    19. The Commission based its paperwork burden estimates on the NERC 
compliance registry as of November 27, 2013. According to the registry, 
there are 16 reliability coordinators and 183 transmission operators.
    20. The Commission estimates an increased burden for each 
requirement, as dictated in the chart below, for a total estimated 
burden of $238,800. The Commission based the burden estimates on staff 
experience, knowledge, and expertise:

[[Page 3551]]



                                      Burden Estimate for Implementation of Proposed Reliability Standard EOP-010-1
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                     Number of          Number of        Average burden      Total annual
 Reliability standard number        Type of       respondents \30\    responses per        hours per         burden hours       Total annual cost \31\
                                  respondents           (1)          respondent  (2)     response  (3)        (1)(2)(3)
--------------------------------------------------------------------------------------------------------------------------------------------------------
EOP-010-1 (R1)...............  Reliability                      16                  1                 20                320  $19,200 ($60/hr).
                                Coordinator.
EOP-010-1 (R3)...............  Transmission                    183                  1                 20               3660  $219,600 ($60/hr).
                                Operator.
                                                --------------------------------------------------------------------------------------------------------
    Total....................  ................  .................  .................  .................               3980  $238,800.
--------------------------------------------------------------------------------------------------------------------------------------------------------

    21. The above chart does not include Reliability Standard EOP-010-
1, Requirement R2 because, as NERC states, that requirement replaces 
IRO-005-3.1a, Requirement R3 and has no change in overall burden. In 
addition, while our burden estimate with respect to Reliability 
Standard EOP-010-1, Requirement R3 assumes that all 183 transmission 
operators are subject to that requirement, we note that not all 183 
transmission operators are likely to be subject to Requirement R3 
because that requirement only applies to transmission operators with a 
Transmission Operator Area that includes a power transformer with a 
high side, wye-grounded winding with terminal voltage greater than 200 
kV.
---------------------------------------------------------------------------

    \30\ This number was calculated by adding all the applicable 
entities while removing double counting caused by entities 
registered under multiple functions.
    \31\The estimated hourly loaded cost (salary plus benefits) for 
an engineer is assumed to be $60/hour, based on salaries as reported 
by the Bureau of Labor Statistics (BLS) (http://bls.gov/oes/current/naics2_22.htm). Loaded costs are BLS rates divided by 0.703 and 
rounded to the nearest dollar (http://www.bls.gov/news.release/ecec.nr0.htm).
---------------------------------------------------------------------------

    Title: FERC-725S, Mandatory Reliability Standards: Reliability 
Standard EOP-010-1.
    Action: Proposed Collection of Information.
    OMB Control No: To be determined.
    Respondents: Business or other for profit, and not for profit 
institutions.
    Frequency of Responses: One-time.
    Necessity of the Information: The proposed Reliability Standard 
EOP-010-1, if adopted, would implement the Congressional mandate of the 
Energy Policy Act of 2005 to develop mandatory and enforceable 
Reliability Standards to better ensure the reliability of the nation's 
Bulk-Power System. Specifically, the proposal would ensure that 
responsible entities have Operating Plans and Operating Procedures or 
Processes in place to mitigate the effects of geomagnetic disturbances 
on the Bulk-Power System.
    Internal review: The Commission has reviewed the proposed changes 
and has determined that the changes are necessary to ensure the 
reliability and integrity of the Nation's Bulk-Power System.
    22. 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, email: [email protected], Phone: (202) 
502-8663, fax: (202) 273-0873]. Comments on the requirements of this 
rule 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 email to OMB at [email protected]. Comments submitted to OMB should include Docket 
Number RM14-1-000.

IV. Environmental Analysis

    23. 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.\32\ The 
Commission has categorically excluded certain actions from this 
requirement as not having a significant effect on the human 
environment. Included in the exclusion are rules that are clarifying, 
corrective, or procedural or that do not substantially change the 
effect of the regulations being amended.\33\ The actions proposed here 
fall within this categorical exclusion in the Commission's regulations.
---------------------------------------------------------------------------

    \32\ 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).
    \33\ 18 CFR 380.4(a)(2)(ii).
---------------------------------------------------------------------------

V. Regulatory Flexibility Act

    24. The Regulatory Flexibility Act of 1980 (RFA) \34\ generally 
requires a description and analysis of proposed rules that will have 
significant economic impact on a substantial number of small entities.
---------------------------------------------------------------------------

    \34\ 5 U.S.C. 601-612.
---------------------------------------------------------------------------

    25. Comparison of the NERC compliance registry with data submitted 
to the Energy Information Administration on Form EIA-861 indicates that 
perhaps as many as 34 small entities are registered as transmission 
operators and no small entities are registered as reliability 
coordinators. However, the Commission estimates that there will be no 
material change in burden for the 34 transmission operators that 
qualify as small entities because they will likely not be affected by 
proposed Reliability Standard EOP-010-1. Proposed Reliability Standard 
EOP-010-1 applies to transmission operators with a Transmission 
Operator Area that includes a power transformer with a high side, wye-
grounded winding with terminal voltage greater than 200 kV. 
Transmission operators with Transmission Operator Areas that include a 
power transformer with a high side, wye-grounded winding with terminal 
voltage greater than 200 kV are generally large entities serving 
substantial geographical areas with significant energy output.
    26. Based on the above, the Commission certifies that the proposed 
Reliability Standard EOP-010-1 will not have a significant impact on a 
substantial number of small entities. Accordingly, no initial 
regulatory flexibility analysis is required. The Commission seeks 
comment on the Commission's proposed certification.

VI. Comment Procedures

    27. 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 March 24, 2014. Comments must refer to 
Docket No. RM14-1-000, and must include the commenter's name, the 
organization they represent, if applicable, and their address in their 
comments.

[[Page 3552]]

    28. The Commission encourages comments to be filed electronically 
via the eFiling link on the Commission's Web site at http://www.ferc.gov. The Commission accepts most standard word processing 
formats. Documents created electronically using word processing 
software should be filed in native applications or print-to-PDF format 
and not in a scanned format. Commenters filing electronically do not 
need to make a paper filing.
    29. Commenters that are not able to file comments electronically 
must send an original of their comments to: Federal Energy Regulatory 
Commission, Secretary of the Commission, 888 First Street NE., 
Washington, DC 20426.
    30. All comments will be placed in the Commission's public files 
and may be viewed, printed, or downloaded remotely as described in the 
Document Availability section below. Commenters on this proposal are 
not required to serve copies of their comments on other commenters.

VII. Document Availability

    31. In addition to publishing the full text of this document in the 
Federal Register, the Commission provides all interested persons an 
opportunity to view and/or print the contents of this document via the 
Internet through the Commission's Home Page (http://www.ferc.gov) and 
in the Commission's Public Reference Room during normal business hours 
(8:30 a.m. to 5:00 p.m. Eastern time) at 888 First Street NE., Room 2A, 
Washington, DC 20426.
    32. From the Commission's Home Page on the Internet, this 
information is available on eLibrary. The full text of this document is 
available on eLibrary in PDF and Microsoft Word format for viewing, 
printing, and/or downloading. To access this document in eLibrary, type 
the docket number excluding the last three digits of this document in 
the docket number field.
    33. User assistance is available for eLibrary and the Commission's 
Web site during normal business hours from the Commission's Online 
Support at 202-502-6652 (toll free at 1-866-208-3676) or email at 
[email protected], or the Public Reference Room at (202) 502-
8371, TTY (202) 502-8659. Email the Public Reference Room at 
[email protected].

    By direction of the Commission.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2014-01143 Filed 1-21-14; 8:45 am]
BILLING CODE 6717-01-P