[Federal Register Volume 80, Number 121 (Wednesday, June 24, 2015)]
[Proposed Rules]
[Pages 36293-36301]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-15432]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

18 CFR Part 40

[Docket Nos. RM15-7-000, RM15-12-000, and RM15-13-000]


Revisions to Emergency Operations Reliability Standards; 
Revisions to Undervoltage Load Shedding Reliability Standards; 
Revisions to the Definition of ``Remedial Action Scheme'' and Related 
Reliability Standards

AGENCY: Federal Energy Regulatory Commission, DOE.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Commission proposes to approve Reliability Standards and 
definitions of terms submitted in three related petitions by the North 
American Electric Reliability Corporation (NERC), the Commission-
approved Electric Reliability Organization. The Commission proposes to 
approve Reliability Standards EOP-011-1 (Emergency Operations) and PRC-
010-1 (Undervoltage Load Shedding). According to NERC, the proposed 
Reliability Standards consolidate, streamline and clarify the existing 
requirements of certain currently-effective Emergency Preparedness and 
Operations (EOP) and Protection and Control (PRC) standards. The 
Commission also proposes to approve NERC's revised definition of the 
term ``Remedial Action Scheme'' as set forth in the NERC Glossary of 
Terms Used in Reliability Standards, and modifications of specified 
Reliability Standards to incorporate the revised definition. Further, 
the Commission proposes to approve the proposed implementation plans, 
and the retirement of certain currently-effective Reliability 
Standards. The Commission discusses concerns regarding several of 
NERC's proposals and, depending on the comments provided in response, 
the Commission may direct NERC to develop further modifications to 
address the concerns and possibly delay the retirement of one 
currently-effective standard.

DATES: Comments are due August 24, 2015.

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: 
    Nick Henery (Technical Information), Office of Electric 
Reliability, Federal Energy Regulatory Commission, 888 First Street 
NE., Washington, DC 20426, (202) 502-8636, [email protected].
    Mark Bennett (Legal Information), Office of the General Counsel, 
Federal Energy Regulatory Commission, 888 First Street NE., Washington, 
DC 20426, (202) 502-8524, [email protected].

SUPPLEMENTARY INFORMATION: 
    1. Pursuant to section 215 of the Federal Power Act (FPA),\1\ the 
Commission proposes to approve Reliability Standards and definitions of 
terms submitted in three related petitions by the North American 
Electric Reliability Corporation (NERC), the Commission-approved 
Electric Reliability Organization (ERO). In particular, the Commission 
proposes to approve Reliability Standards EOP-

[[Page 36294]]

011-1 (Emergency Operations) and PRC-010-1 (Undervoltage Load 
Shedding). NERC explains that the proposed Reliability Standards 
consolidate, streamline, and clarify the existing requirements of 
certain currently-effective Emergency Preparedness and Operations (EOP) 
and Protection and Control (PRC) standards. The Commission also 
proposes to approve NERC's revised definition of the term ``Remedial 
Action Scheme'' as set forth in the NERC Glossary of Terms Used in 
Reliability Standards (NERC Glossary), and modifications of specified 
Reliability Standards to incorporate the revised definition. Further, 
the Commission proposes to approve assigned violation risk factors and 
violation severity levels, proposed implementation plans, and the 
retirement of certain currently-effective Reliability Standards. The 
Commission discusses concerns regarding several of NERC's proposals 
and, depending on the comments provided in response, the Commission may 
direct NERC to develop further modifications to address the concerns 
and possibly delay the retirement of one currently-effective standard.
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    \1\ 16 U.S.C. 824o.
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I. Background

    2. Section 215 of the FPA requires a Commission-certified ERO to 
develop mandatory and enforceable Reliability Standards, subject to 
Commission review and approval.\2\ Once approved, the Reliability 
Standards may be enforced by the ERO subject to Commission oversight or 
by the Commission independently. In 2006, the Commission certified NERC 
as the ERO pursuant to FPA section 215.\3\
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    \2\ 16 U.S.C. 824o.
    \3\ North American Electric Reliability Corp., 116 FERC ] 
61,062, order on reh'g & compliance, 117 FERC ] 61,126 (2006), aff'd 
sub nom. Alcoa, Inc. v. FERC, 564 F.3d 1342 (D.C. Cir. 2009).
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    3. On March 16, 2007, the Commission issued Order No. 693, 
approving 83 of the 107 Reliability Standards filed by NERC, including 
initial versions of EOP-001, EOP-002, and EOP-003.\4\ In addition, the 
Commission directed NERC to develop certain modifications to the EOP 
standards. In Order No. 693, the Commission also approved several 
Undervoltage Load Shedding (UVLS)-related Reliability Standards, 
including PRC-010-0, PRC-021-1 and PRC-022-1.\5\ Also, the Commission 
directed NERC to modify Reliability Standard PRC-010-0 to develop an 
``integrated and coordinated'' approach to all protection systems.\6\ 
In Order No. 693, the Commission approved the NERC Glossary, including 
NERC's currently-effective Special Protection System and Remedial 
Action Scheme definitions.
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    \4\ Mandatory Reliability Standards for the Bulk-Power System, 
Order No. 693, FERC Stats. & Regs. ] 31,242, order on reh'g, Order 
No. 693-A, 120 FERC ] 61,053 (2007).
    \5\ Order No. 693, FERC Stats. & Regs. ] 31,242 at PP 1509, 1560 
and 1565. The Commission neither approved nor remanded Reliability 
Standard PRC-020-1, explaining that the standard only applied to 
Regional Reliability Organizations. Id. P 1555.
    \6\ Id. P 1509.
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II. NERC Petitions

    4. NERC submitted three related petitions that we address together 
in this notice of proposed rulemaking (NOPR).\7\
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    \7\ The proposed EOP and PRC Reliability Standards are not 
attached to this notice of proposed rulemaking, nor are the 
additional standards that NERC proposes to modify to incorporate the 
revised term Remedial Action Scheme. The proposed Reliability 
Standards are available on the Commission's eLibrary document 
retrieval system in the identified dockets and on the NERC Web site, 
www.nerc.com.
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A. NERC EOP Petition--Proposed Reliability Standard EOP-011-1 (Docket 
No. RM15-7-000)

    5. On December 29, 2014, NERC submitted a petition seeking 
Commission approval of proposed Reliability Standard EOP-011-1 and a 
revised definition of ``Energy Emergency.'' NERC explains that proposed 
Reliability Standard EOP-011-1 consolidates the requirements in three 
existing Reliability Standards: EOP-001-2.1b, EOP-002-3.1 and EOP-003-2 
``into a single Reliability Standard that clarifies the critical 
requirements for Emergency Operations while ensuring strong 
communication and coordination across the functional entities.'' \8\ 
NERC seeks retirement of Reliability Standards EOP-001-2.1b, EOP-002-
3.1 and EOP-003-2, as well as the approval of the associated 
implementation plan and violation risk factors and violation severity 
levels for Reliability Standard EOP-011-1 detailed in the petition. 
NERC also asserts that proposed Reliability Standard EOP-011-1 
satisfies seven Commission directives set forth in Order No. 693.\9\
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    \8\ NERC EOP Petition at 3.
    \9\ Id. at 12-18.
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    6. NERC states that the purpose of proposed Reliability Standard 
EOP-011-1 is ``to address the effects of operating Emergencies by 
ensuring each Transmission Operator and Balancing Authority has 
developed Operating Plans to mitigate operating Emergencies, and that 
those plans are coordinated within a Reliability Coordinator area.'' 
\10\ NERC notes that Requirements R2 and R6 of the proposed Reliability 
Standard incorporate Attachment 1, which describes three energy 
emergency levels used by the reliability coordinator and the process 
for communicating the condition of a balancing authority experiencing 
an energy emergency.\11\
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    \10\ Id. at 2.
    \11\ Attachment 1 describes three alert levels: Energy Emergency 
Alert Level 1 (all available generation resources in use, concern 
about sustaining required contingency reserves); Energy Emergency 
Alert Level 2 (load management procedures in effect, energy 
deficient balancing authority implements its emergency Operating 
Plan but maintains minimum contingency reserve requirements); and 
Energy Emergency Alert Level 3 (firm load interruption is imminent 
or in process, energy deficient balancing authority unable to 
maintain minimum contingency reserve requirements).
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    7. Proposed Reliability Standard EOP-011-1 includes six 
requirements, and is applicable to balancing authorities, reliability 
coordinators and transmission operators. Requirements R1 and R2 require 
transmission operators and balancing authorities to develop, maintain 
and implement reliability coordinator-reviewed operating plans to 
mitigate operating, capacity and energy emergencies.\12\ Requirement R1 
specifies elements for the plans ``as applicable,'' which is intended 
to provide flexibility to account for regional differences and pre-
existing emergency mitigation methods. NERC states that the requirement 
for transmission operators and balancing authorities to maintain 
operating plans includes the expectation that the plans are current and 
up-to-date.\13\
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    \12\ Operating Plan is defined in the NERC Glossary as a 
``document that identifies a group of activities that may be used to 
achieve some goal. An Operating Plan may contain Operating 
Procedures and Operating Processes. A company-specific system 
restoration plan that includes an Operating Procedure for black-
starting units, Operating Processes for communicating restoration 
progress with other entities, etc., is an example of an Operating 
Plan.''
    \13\ NERC EOP Petition at 8-9.
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    8. Requirement R3 requires reliability coordinators to review the 
operating plans submitted by transmission operators and balancing 
authorities and is designed to ensure that there is appropriate 
coordination of reliability risks identified in the operating plans. In 
reviewing operating plans, reliability coordinators shall consider 
compatibility, coordination and inter-dependency with other entity 
operating plans and notify transmission operators and balancing 
authorities if revisions to their operating plans are necessary.\14\
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    \14\ Id. at 10-11.
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    9. Requirement R4 requires transmission operators and balancing 
authorities to resolve any issues identified by the reliability 
coordinator and resubmit their revised operating

[[Page 36295]]

plans within a time period specified by the reliability coordinator. 
Requirement R5 requires each reliability coordinator to notify 
balancing authorities and transmission operators in its area, and 
neighboring reliability coordinators, within thirty minutes of 
receiving an emergency notification. Requirement R6 requires a 
reliability coordinator with a balancing authority experiencing a 
potential or actual energy emergency to declare an energy emergency 
alert in accordance with Attachment 1.
    10. Proposed Reliability Standard EOP-011-1 also includes the 
following revised definition of Energy Emergency:

    Energy Emergency--A condition when a Load-Serving Entity or 
Balancing Authority has exhausted all other resource options and can 
no longer meet its expected Load obligations.

    NERC explains that the proposed revised definition is intended to 
clarify that an energy emergency is not limited to a load-serving 
entity and, based on a review of the impact on the body of NERC 
Reliability Standards, ``does not change the reliability intent of 
other requirements of Definitions.'' \15\
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    \15\ Id. at 18.
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B. NERC PRC Petition--Proposed Reliability Standard PRC-010-1 (Docket 
No. RM15-12-000)

    11. On February 6, 2015, NERC submitted a petition seeking approval 
of proposed Reliability Standard PRC-010-1 (Undervoltage Load 
Shedding), approval of a revised definition of Undervoltage Load 
Shedding Program (UVLS Program) for inclusion in the NERC Glossary, the 
implementation plan for the proposed Reliability Standard and the 
associated violation risk factors and violation severity levels and 
retirement of four PRC Reliability Standards.\16\
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    \16\ Reliability Standard PRC-010-0 (Assessment of the Design 
and Effectiveness of UVLS Program); Reliability Standard PRC-020-1 
(Under-Voltage Load Shedding Program Database); Reliability Standard 
PRC-021-1 (Under-Voltage Load Shedding Program Data); and 
Reliability Standard PRC-022-1 (Under-Voltage Load Shedding Program 
Performance).
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    12. In its petition, NERC states that proposed Reliability Standard 
PRC-010-1 is a single, comprehensive standard that addresses the same 
reliability principles outlined in the four currently-effective UVLS-
related Reliability Standards.\17\ NERC explains that the purpose of 
proposed Reliability Standard PRC-010-1 is to ``establish an integrated 
and coordinated approach to the design, evaluation, and reliable 
operation of Undervoltage Load Shedding Programs'' as directed by the 
Commission in Order No. 693.\18\ Also, according to NERC, proposed 
Reliability Standard PRC-010-1 replaces the applicability to and 
involvement of ``Regional Reliability Organization'' in Reliability 
Standards PRC-020-1 and PRC-021-1 and consolidates the four currently-
effective UVLS-Related Standards into one comprehensive standard. NERC 
states that proposed Reliability Standard PRC-010-1 ``reflects 
consideration of the 2003 Blackout Report recommendations,'' \19\ 
particularly, Recommendation 21 for NERC to ``make more effective and 
wider use of system protection measures'' \20\ and Recommendation 21C 
that ``NERC determine the goals and principles needed to establish an 
integrated approach to relay protection for generators and transmission 
lines, as well as of UFLS and UVLS programs.'' \21\
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    \17\ NERC PRC Petition at 14.
    \18\ Id. (citing Order No. 693, FERC Stats & Regs ] 31,242 at P 
1509).
    \19\ NERC PRC Petition at 2 (citing the U.S.-Canada Power System 
Outage Task Force, Final Report on the August 14, 2003 Blackout in 
the United States and Canada: Causes and Recommendations, April, 
2004 (2003 Blackout Report)).
    \20\ NERC PRC Petition at 4 (citing 2003 Blackout Report at 3, 
158).
    \21\ NERC PRC Petition at 6.
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    13. Proposed Reliability Standard PRC-010-1 incorporates a proposed 
definition of UVLS Program, which reads:

    Undervoltage Load Shedding Program (UVLS Program): An automatic 
load shedding program, consisting of distributed relays and 
controls, used to mitigate undervoltage conditions impacting the 
Bulk Electric System (BES), leading to voltage instability, voltage 
collapse, or Cascading. Centrally controlled undervoltage-based load 
shedding is not included.

    NERC explains that ``to ensure that the applicability of the 
proposed Reliability Standard covers undervoltage-based load shedding 
systems whose performance has an impact on system reliability, a UVLS 
Program must mitigate risk of one or more of the following: Voltage 
instability, voltage collapse, or Cascading impacting the Bulk Electric 
System. By focusing on the enumerated risks, the definition is meant to 
exclude locally-applied relays that are not designed to mitigate wide-
area voltage collapse.'' \22\ NERC states that the proposed UVLS 
Program definition ``clearly identifies and separates centrally 
controlled undervoltage-based load shedding, which is now addressed by 
the proposed definition of Remedial Action Scheme.'' \23\
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    \22\ Id. at 16.
    \23\ Id. at 15. NERC's petition for approval of the proposed 
definition of Remedial Action Scheme (Docket No. RM15-13-000) is 
discussed below.
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    14. Proposed Reliability Standard PRC-010-1 applies to planning 
coordinators and transmission planners because ``either may be 
responsible for designing and coordinating the UVLS Program . . . [and] 
also applies to Distribution Providers and Transmission Owners 
responsible for the ownership, operation and control of UVLS equipment 
as required by the UVLS Program established by the Transmission Planner 
or Planning Coordinator.'' \24\ NERC explains that the planning 
coordinator or transmission planner that establishes a UVLS Program is 
responsible for identifying the UVLS equipment and the necessary 
distribution provider and transmission owner (referred to as ``UVLS 
entities'' in the Applicability section) that performs the required 
actions.
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    \24\ Id.
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    15. NERC states that proposed Reliability Standard PRC-010-1 
``applies only after an entity has determined the need for a UVLS 
Program as a result of its own planning studies.'' \25\ NERC explains 
that the eight requirements in proposed Reliability Standard PRC-010-1 
meet four primary objectives: (1) The proposed standard requires 
applicable entities to evaluate a UVLS Program's effectiveness prior to 
implementation, including coordination with other protection systems 
and generator voltage ride-through capabilities; (2) applicable 
entities must comply with UVLS program specifications and 
implementation schedule; (3) applicable entities must perform periodic 
assessment and performance analysis; and (4) applicable entities must 
maintain and share UVLS Program data.
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    \25\ Id. at 14.
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    16. Proposed Requirement R1 requires each planning coordinator or 
transmission planner that is developing a UVLS Program to evaluate the 
viability and effectiveness of its program before implementation to 
confirm its effectiveness in resolving the undervoltage conditions for 
which it was designed, and that it is integrated through coordination 
with generator ride-through capabilities and other protection and 
control systems. Also, the planning coordinator or transmission planner 
must provide the UVLS Program specifications and implementation 
schedule to the applicable UVLS entities. Requirement R2 requires UVLS 
entities to meet the UVLS Program's specifications and implementation 
schedule provided by the planning coordinator or transmission planner 
or address any

[[Page 36296]]

necessary corrective actions in accordance with Requirement R5.
    17. Requirement R3 requires each planning coordinator or 
transmission planner to perform periodic comprehensive assessments at 
least every 60 calendar months to ensure continued effectiveness of the 
UVLS program, including whether the program resolves identified 
undervoltage issues and that it is integrated and coordinated with 
generator voltage ride-through capabilities and other specified 
protection and control systems. Requirement R4 requires each planning 
coordinator or transmission planner to commence a timely assessment of 
a voltage excursion subject to the UVLS Program, within twelve calendar 
months of the event, to evaluate whether the UVLS Program resolved the 
undervoltage issues associated with the event. Requirement R5 requires 
a planning coordinator or transmission planner to develop a corrective 
action plan for any program deficiencies identified during an 
assessment performed under either Requirement R3 or R4, and provide an 
implementation schedule to UVLS entities within three calendar months 
of its completion.
    18. Pursuant to Requirement R6, a planning coordinator must update 
the data necessary to model its UVLS Program for use in event analyses 
and program assessments at least each calendar year. Requirement R7 
requires each UVLS entity to provide data to its planning coordinator, 
according to the planning coordinator's format and schedule, to support 
maintenance of the UVLS Program database. Requirement R8 requires a 
planning coordinator to provide its UVLS Program database to other 
planning coordinators and transmission planners within its 
Interconnection, and other functional entities with a reliability need, 
within thirty calendar days of a written request.
    19. NERC proposes that PRC-010-1 and the revised definition of UVLS 
Program shall become effective on the first day of the first calendar 
quarter that is twelve (12) months after the date that the standard and 
definition are approved by the Commission. NERC also proposes to retire 
PRC-010-0, PRC-020-1, PRC-021-1, and PRC-022-1 at midnight of the day 
immediately prior to the effective date of PRC-010-1.\26\ Further, NERC 
explains that proposed Reliability Standard PRC-010-1 addresses 
reliability obligations that are set forth in Requirements R2, R4 and 
R7 of currently-effective Reliability Standard EOP-003-2.\27\ Since 
NERC has proposed to retire EOP-003-2 in the petition seeking approval 
of proposed Reliability Standard EOP-011-1 (Docket No. RM15-7-00, 
discussed above), concurrent Commission action on the two petitions 
will prevent a possible reliability gap.
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    \26\ Id. Ex. B (Implementation Plan).
    \27\ See NERC EOP Petition at 23.
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C. NERC RAS Petition--Revisions to the Definition of ``Remedial Action 
Scheme'' (Docket No. RM15-13-000)

    20. On February 3, 2015, NERC submitted a petition seeking approval 
of a proposed revised definition of Remedial Action Scheme in the NERC 
Glossary. In addition, NERC seeks approval of modified Reliability 
Standards that incorporate the new definition of Remedial Action Scheme 
and eliminate use of the term Special Protection System.\28\ NERC 
states that the defined terms Special Protection System and Remedial 
Action Scheme are currently used interchangeably throughout the NERC 
Regions and in various Reliability Standards. NERC explains that 
``[a]lthough these defined terms share a common definition in the NERC 
Glossary of Terms today, their use and application have been 
inconsistent as a result of a lack of granularity in the definition and 
varied regional uses of the terms. The proposed revisions add clarity 
and granularity that will allow for proper identification of Remedial 
Action Schemes and a more consistent application of related Reliability 
Standards.'' \29\
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    \28\ NERC RAS Petition at 1-2. NERC proposes to modify the 
following Reliability Standards to incorporate the proposed 
definition of Remedial Action Scheme and eliminate use of the term 
Special Protection System: EOP-004-3, PRC-005-3(ii), PRC-023-4, FAC-
010-3, TPL-001-0.1(i), FAC-011-3, TPL-002-0(i)b, MOD-030-3, TPL-003-
0(i)b, MOD-029-2a, PRC-015-1, TPL-004-0(i)a, PRC-004-WECC-2, PRC-
016-1, PRC-001-1.1(i), PRC-005-2(ii), and PRC-017-1. NERC does not 
propose any changes to the violation risk factors or violation 
severity levels for the modified standards.
    \29\ Id. at 4-5.
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    21. NERC states that the revised definition of Remedial Action 
Scheme consists of a ``core'' definition, including a list of 
objectives and a separate list of exclusions for certain schemes or 
systems not intended to be covered by the revised definition.\30\ NERC 
explains that it is proposing a broad definition because of ``all the 
possible scenarios an entity may develop'' for its Remedial Action 
Scheme and a ``very specific, narrow definition may unintentionally 
exclude schemes that should be covered.'' \31\ Accordingly, NERC 
proposes the following revised ``core'' definition of Remedial Action 
Scheme:
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    \30\ Id. at 16. NERC notes that ``for each exclusion, the scheme 
or system could still classify as a Remedial Action Scheme if 
employed in a broader scheme that meets the definition of Remedial 
Action Scheme.''
    \31\ Id. at 17.

    A scheme designed to detect predetermined system conditions and 
automatically take corrective actions that may include, but are not 
limited to, adjusting or tripping generation (MW and Mvar), tripping 
load, or reconfiguring a System(s). (sic) RAS accomplish objectives 
such as:
     Meet requirements identified in the NERC Reliability 
Standards;
     Maintain Bulk Electric System (BES) stability;
     Maintain acceptable BES voltages;
     Maintain acceptable BES power flows;
     Limit the impact of Cascading or extreme events.

    The definition then lists fourteen exclusions, describing specific 
schemes and systems that do not constitute a Remedial Action Scheme, 
because each is either a protection function, a control function, a 
combination of both, or used for system reconfiguration.\32\
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    \32\ Id. at 18.
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    22. In the implementation plan, NERC proposes an effective date for 
the revised Reliability Standards and the revised definition of 
``Remedial Action Scheme'' on the first day of the first calendar 
quarter that is twelve months after Commission approval.\33\ NERC also 
proposes that for entities with existing schemes that become newly 
classified as ``Remedial Action Schemes'' resulting from the 
application of the revised definition, the entities will have 
additional time of up to twenty-four months from the effective date to 
be fully compliant with all applicable Reliability Standards.\34\ 
Further, NERC asks the Commission to take final action concurrently 
with the NERC petition on proposed Reliability Standard PRC-010-1 
(Docket No. RM15-12-000) because ``[t]he proposed definitions of UVLS 
Program and Remedial Action Scheme in each project have been 
coordinated to cover centrally controlled UVLS as a Remedial Action 
Scheme. Final action by the Commission is needed contemporaneously on 
both petitions to facilitate implementation and avoid a gap in coverage 
of centrally controlled UVLS.'' \35\
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    \33\ Id. at 15-16.
    \34\ NERC RAS Petition, EX. C (Implementation Plan) at 4.
    \35\ NERC RAS Petition at 25.
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III. Discussion

    23. Pursuant to section 215(d) of the FPA, the Commission proposes 
to approve as just, reasonable, not unduly

[[Page 36297]]

discriminatory or preferential, and in the public interest the proposed 
Reliability Standards and NERC Glossary definitions set forth in NERC's 
three petitions pertaining to EOP-011-1, PRC-010-1 and a revised 
definition of Remedial Action Scheme. As discussed below, the 
Commission believes that the modified Reliability Standards provide 
greater clarity, and the consolidated EOP and PRC standards will 
provide additional efficiencies for responsible entities.

A. Proposed Reliability Standard EOP-011-1

    24. Pursuant to section 215(d) of the FPA, we propose to approve 
proposed Reliability Standard EOP-011-1 and the proposed new Energy 
Emergency definition, as well as the proposed violation risk factors 
and violation severity levels and implementation plan. We agree with 
NERC that proposed EOP-011-1 consolidates and reorganizes previously 
approved standards, and proposes modifications based on current 
operating practices and experience. We believe that the Reliability 
Standard enhances reliability by requiring that actions necessary to 
mitigate capacity and energy emergencies are focused in single 
operating plans, and ensures communication and coordination among 
relevant entities during emergency operations. Also, we are satisfied 
that the NERC petition adequately addresses the relevant Order No. 693 
directives.\36\
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    \36\ Currently effective EOP-002-3.1 applies, inter alia, to 
load-serving entities. Proposed EOP-011-1, which would replace EOP-
002-3.1, would apply to balancing authorities, reliability 
coordinators and transmission operators, but not load-serving 
entities. The removal of load-serving entities raises questions on 
who would perform the roles traditionally performed by load-serving 
entities. For instance, NERC's Functional Model indicates that a 
load-serving entity has real-time responsibility to receive requests 
from a balancing authority to voluntarily curtail load and 
communicate such requests for voluntary load curtailment to end-use 
customers as directed by the balancing authority. In addition, 
NERC's Functional Model indicates that a balancing authority has a 
real-time function to coordinate the use of controllable loads with 
load-serving entities. The Commission notes that NERC is required to 
make a compliance filing in July 2015 in Docket No. RR15-4-000. The 
Commission's decision on that filing will guide our action on this 
question in this proceeding.
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B. Proposed Reliability Standard PRC-010-1

    25. Pursuant to section 215 of the FPA, we propose to approve 
proposed Reliability Standard PRC-010-1 as just, reasonable, not unduly 
discriminatory or preferential and in the public interest. We also 
propose to approve the proposed, revised definition of UVLS Program for 
inclusion in the NERC Glossary, the implementation plan and the 
associated violation risk factors and violation severity levels. 
Likewise, we propose to approve the retirement of PRC-010-0, PRC-020-1 
and PRC-021-1.\37\ However, for the reasons explained below, we are 
concerned whether it is appropriate to retire PRC-022-1, as NERC 
requests, before an acceptable replacement Reliability Standard is in 
place to address the potential misoperation of UVLS equipment.
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    \37\ As noted above, the Commission in Order No. 693 did not 
approve or remand proposed Reliability Standard PRC-020-1 but, 
rather, took no action on the Reliability Standard pending the 
receipt of additional information. Order No. 693, FERC Stats. & 
Regs. ] 31,242 at P 1555. Approval of Reliability Standard PRC-010-
1, as proposed herein, will render PRC-020-1 ``retired,'' i.e., 
withdrawn, and no longer pending before the Commission.
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    26. The Commission agrees with NERC that proposed Reliability 
Standard PRC-010-1 will improve system reliability by establishing an 
integrated and coordinated approach to the design, evaluation and 
reliable operation of UVLS Programs, and therefore satisfies the 
Commission's directive issued in Order No. 693.\38\ We also propose to 
approve the proposed UVLS Program definition and agree that it 
``clearly identifies and separates centrally controlled undervoltage-
based load shedding, which is now addressed by the proposed definition 
of Remedial Action Scheme.'' \39\
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    \38\ Order No. 693, FERC Stats & Regs. ] 31,242 at P 1509.
    \39\ NERC PRC Petition at 15. NERC's proposed revised definition 
of Remedial Action Scheme (Docket No. RM15-13-000) is addressed 
elsewhere in this NOPR.
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    27. In the ``Guidelines for UVLS Program Definition,'' NERC 
provides an example of a ``BES subsystem,'' in the diagram below, 
illustrating a UVLS system that would not be included in the definition 
of UVLS Program if the consequences of the contingency do not impact 
the BES.\40\ The Commission seeks clarification whether this example 
illustrates a centrally controlled UVLS and would therefore be 
considered a Remedial Action Scheme.\41\ The Commission also seeks 
clarification regarding the use of the term ``BES subsystem,'' since 
the term is not defined in the NERC Glossary. Depending on the response 
from NERC and others, a directive for further modification may be 
appropriate to ensure that the UVLS standards and related NERC guidance 
are consistent with the Commission-approved definition of ``bulk 
electric system.'' \42\
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    \40\ NERC PRC Petition, Ex. A (Proposed Reliability Standard 
PRC-010-1) at 12.
    \41\ Id. at 3.
    \42\ Revisions to Electric Reliability Organization Definition 
of Bulk Electric System and Rules of Procedure, Order No. 773, 141 
FERC ] 61,236 (2012); order on reh'g, Order No. 773-A, 143 FERC ] 
61,053 (2013), order on reh'g and clarification, 144 FERC ] 61,174 
(2013), aff'd sub nom., New York v. FERC, 783 F.3d 946 (2d. Cir. 
2015).

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[[Page 36298]]

[GRAPHIC] [TIFF OMITTED] TP24JN15.001

    28. NERC proposes to retire Reliability Standard PRC-022-1, which 
requires transmission operators, load-serving entities and distribution 
providers to analyze and document all UVLS operations and 
misoperations. Requirement R1.5 of this Reliability Standard requires 
that an applicable entity's analysis and documentation should include 
``[f]or any Misoperation, a Corrective Action Plan to avoid future 
Misoperations of a similar nature.'' Proposed Reliability Standard PRC-
010-1, Requirement R5 addresses deficiencies in UVLS Programs that a 
planning coordinator or transmission planner identifies during 
assessments performed in accordance with either Requirement R3 
(periodic UVLS Program effectiveness evaluations) or Requirement R4 
(evaluations to assess UVLS Program responses to voltage excursions), 
and requires the entities to develop a Corrective Action Plan to 
address the deficiencies.
    29. NERC correctly states that ``[w]hen a UVLS Program does not 
function as expected and designed during a voltage excursion event, 
this presents a risk to system reliability.'' \43\ However, we are not 
persuaded that proposed Reliability Standard PRC-010-1, Requirement R4 
is an adequate replacement for currently-effective PRC-022-1, which 
contains requirements specifically addressing misoperations. 
Accordingly, we propose to deny NERC's proposal to retire currently-
effective Reliability Standard PRC-022-1 concurrent with the effective 
date of proposed PRC-010-1. Rather, we propose that Reliability 
Standard PRC-022-1 remain in effect until an acceptable replacement 
standard is approved and implemented.\44\
---------------------------------------------------------------------------

    \43\ Id. at 20.
    \44\ In the PRC Petition, NERC indicates that UVLS misoperations 
are currently being addressed in Project 2008-02.2 Phase 2 
Undervoltage Load Shedding (UVLS): Misoperations. NERC states that 
``[t]his phase of the UVLS project will address Misoperation of UVLS 
equipment to complete the work anticipated by the two standard 
drafting teams.'' Id. at 23. The Commission notes that, on June 9, 
2015, NERC filed proposed Reliability Standards PRC-010-2 and PRC-
004-5, which include requirements and applicability criteria 
pertaining to UVLS misoperations.
---------------------------------------------------------------------------

C. Revised Definition of Remedial Action Scheme

    30. Pursuant to section 215(d) of the FPA, the Commission proposes 
to approve the proposed definition of Remedial Action Scheme, the 
proposed exclusions, the proposed Reliability Standards and proposed 
implementation plan, as just, reasonable, not unduly discriminatory or 
preferential, and in the public interest. We are persuaded that the use 
of a broad, core definition with a wide scope, accompanied by a list of 
specific exclusions will help avoid confusion and achieve a uniform 
understanding across all the Regional Entities of the proper 
classification of what schemes and systems constitute a Remedial Action 
Scheme. We agree with NERC that the proposed definition will improve 
reliability by eliminating ambiguity and promoting the proper, 
consistent identification of Remedial Action Schemes and more 
consistency in the application of related Reliability Standards.\45\
---------------------------------------------------------------------------

    \45\ NERC RAS Petition at 14-16.
---------------------------------------------------------------------------

IV. Information Collection Statement

    31. The collection of information contained in this Notice of 
Proposed Rulemaking is subject to review by the Office of Management 
and Budget (OMB) regulations under section 3507(d) of the Paperwork 
Reduction Act of 1995 (PRA).\46\ OMB's regulations require approval of 
certain informational collection requirements imposed by agency 
rules.\47\ 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 a 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.
---------------------------------------------------------------------------

    \46\ 44 U.S.C. 3507(d).
    \47\ 5 CFR 1320.11.
---------------------------------------------------------------------------

    32. We solicit comments on the need for this information, whether 
the information will have practical utility, the accuracy of the burden 
estimates, ways to enhance the quality, utility, and clarity of the 
information to be collected or retained, and any suggested methods for 
minimizing respondents' burden, including the use of automated 
information techniques. Specifically, the Commission asks that any 
revised burden or cost estimates submitted by commenters be supported 
by sufficient detail to understand how the estimates are generated.

A. Proposed Reliability Standard EOP-011-1

    33. Public Reporting Burden: As of May 2015, there are 99 balancing 
authorities, 15 reliability coordinators and 171 transmission operators 
registered with NERC. These registered entities will have to comply 
with 6-8 new requirements in the proposed Reliability Standard EOP-011-
1. As proposed, each registered balancing authority will have to comply 
with Requirements R2, R4, and, under certain circumstances, R5. Each 
reliability

[[Page 36299]]

coordinator will have to comply with Requirements R1 and its subparts, 
R2 and its subparts, R3 and its subparts, R5 and R6. Each transmission 
operator will have to comply with Requirements R1 and its subparts and 
R4.
    34. Proposed Reliability Standard EOP-011-1 replaces a combined 
total of 40 requirements or subparts that are found in Reliability 
Standards EOP-001-2.1b, EOP-002-3.1 and EOP-003-2. These three 
Reliability Standards are proposed to be retired, concurrent with the 
effective date of proposed Reliability Standard EOP-011-1. Accordingly, 
the requirements in proposed Reliability Standard EOP-011-1 do not 
create any new burdens for applicable balancing authorities or 
transmission operators because the requirements in Reliability Standard 
EOP-011-1 are already burdens or tasks imposed on this set of 
registered entities by Reliability Standards EOP-001-2.1b, EOP-002-3.1 
and EOP-003-2 under FERC-725A (1902-0244).
    35. Proposed Reliability Standard EOP-011-1 requires reliability 
coordinators to perform the additional tasks of reviewing, correcting, 
and coordinating their balancing authorities' and transmission 
operators' operating procedures for emergency conditions. The 
Commission estimates that these tasks will add approximately 1,500 man-
hours per year for each reliability coordinator as described in detail 
in the following table:

                                      RM15-7-000 (Mandatory Reliability Standards: Reliability Standard EOP-011-1)
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                         Number of                                                        Total annual
                                                         applicable     Annual number   Total number of  Average burden  burden hours &      Cost per
                                                         registered      of responses      responses     (hours) & cost   total annual      respondent
                                                          entities      per respondent                    per response        cost
                                                                 (1)              (2)   (1) * (2) = (3)             (4)     (3) * (4) =       (5) / (1)
                                                                                                                                    (5)
--------------------------------------------------------------------------------------------------------------------------------------------------------
RC tasks necessary for EOP-011-1 compliance.........              11                1               11            1,500          16,500         $92,387
                                                                                                            \48\ 92,387      $1,016,257
--------------------------------------------------------------------------------------------------------------------------------------------------------

B.  Proposed Reliability Standard PRC-010-1

    36. Public Reporting Burden: As of May 2015, there are 450 
registered distribution providers and 175 transmission planners that 
are not overlapping in their registration with the distribution 
provider registration. We estimate that five percent of all 
distribution providers (23) and transmission planners (9) have under 
voltage load shedding programs that fall under the proposed Reliability 
Standard. The proposed Reliability Standard is applicable to planning 
coordinators and transmission planners, distribution providers and 
transmission owners. However, only distribution providers and 
transmission owners would be responsible for the incremental compliance 
burden under proposed Reliability Standard PRC-010-1, Requirement R2, 
as described in detail in the following table:
---------------------------------------------------------------------------

    \48\ The 1,500 hour figure is broken into 1,300 hours at the 
engineer wage rate and 200 hours at the clerk wage rate. These 
estimates assume that the engineer's wage rate will be $66.35 and 
the clerk's wage rate will be $30.66. These figures are taken from 
the Bureau of Labor Statistics at http://www.bls.gov/oes/current/naics2_22.htm; Occupation Code: 17-2071 (engineer) and 43-4071 
(clerk).

                                   RM15-12-000 (Mandatory Reliability Standards: Reliability Standard PRC-010-1) \49\
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                             Number of                                                     Total annual
                                                            applicable     Annual number   Total number   Average burden  burden hours &     Cost per
                                                            registered     of responses    of responses   (hours) & cost   total annual   respondent ($)
                                                             entities     per respondent                   per response        cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                     (1)             (2)     (1) * (2) =             (4)     (3) * (4) =       (5) / (1)
                                                                                                     (3)                             (5)
--------------------------------------------------------------------------------------------------------------------------------------------------------
DP--Requirement 2.......................................              23               1              23         \50\ 36             828          $1,906
                                                                                                               $1,906.32      $43,845.36
TP--Requirement 2.......................................               3               1               3         \51\ 36             324           1,906
                                                                                                               $1,906.32      $17,156.07
DP--Requirement 2 Data Retention........................              23               1              23              12             276             368
                                                                                                            \52\ $367.92       $8,462.16
TP--Requirement 2 Data Retention........................               3               1               3              12             108             368
                                                                                                                 $367.92       $3,311.28
                                                         -----------------------------------------------------------------------------------------------
    Total...............................................  ..............  ..............  ..............  ..............      $72,774.87  ..............
--------------------------------------------------------------------------------------------------------------------------------------------------------

C. Remedial Action Scheme Revisions
---------------------------------------------------------------------------

    \49\ DP = distribution provider and TP = transmission planner.
    \50\ The 36 hour figure is broken into 24 hours at the engineer 
wage rate and 12 hours at the clerk wage rate. These estimates 
assume that the engineer's wage rate will be $66.35 and the clerk's 
wage rate will be $30.66. These figures are taken from the Bureau of 
Labor Statistics at http://www.bls.gov/oes/current/naics2_22.htm; 
Occupation Code: 17-2071 (engineer) and 43-4071 (clerk).
    \51\ Id.
    \52\ Clerk's wage rate is used for managing data retention.
---------------------------------------------------------------------------

    37. Public Reporting Burden: The Commission approved the definition 
of Special Protection System (Remedial Action Scheme) in Order No. 693. 
We propose to approve a revision to the previously approved definition. 
The proposed revisions to the Remedial Action Scheme definition and 
proposed Reliability Standards are not expected to result in changes to 
the scope of systems covered by the proposed Reliability

[[Page 36300]]

Standards and other Reliability Standards that include the term 
Remedial Action Scheme. Therefore, the Commission does not expect the 
proposed revisions to affect applicable entities' current reporting 
burden.
    FERC-725G4, Mandatory Reliability Standards: Reliability Standard 
PRC-010-1 (Undervoltage Load Shedding).
    FERC-725S, Mandatory Reliability Standards: Reliability Standard 
EOP-011-1 (Emergency Operations).
    Action: Proposed Collection of Information.
    OMB Control No: OMB Control No. 1902-0270 (FERC-725S); OMB Control 
No. 1902-TBD (FERC-725G4).
    Respondents: Business or other for-profit and not-for-profit 
institutions.
    Frequency of Responses: One time and on-going.
    Necessity of the Information: The proposed approval of the proposed 
Reliability Standards implements 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 proposed Reliability Standards 
consolidate, streamline and clarify the existing requirements of 
certain currently-effective Emergency Preparedness and Operations and 
Protection and Control Reliability Standards.
    38. Internal review: The Commission has reviewed the requirements 
pertaining to proposed Reliability Standards PRC-010-1 and EOP-011-1 
and made a determination that the proposed requirements of these 
Reliability Standards are necessary to implement section 215 of the 
FPA. 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 its internal 
review, that there is specific, objective support for the burden 
estimates associated with the information requirements.
    39. Interested persons may obtain information on the reporting 
requirements by contacting the Federal Energy Regulatory Commission, 
Office of the Executive Director, 888 First Street NE., Washington, DC 
20426 [Attention: Ellen Brown, email: [email protected], phone: 
(202) 502-8663, fax: (202) 273-0873].
    40. Comments concerning the information collections proposed in 
this NOPR and the associated burden estimates, should be sent to the 
Commission in this docket and may also be sent to the Office of 
Management and Budget, Office of Information and Regulatory Affairs 
[Attention: Desk Officer for the Federal Energy Regulatory Commission]. 
For security reasons, comments should be sent by email to OMB at the 
following email address: [email protected]. Please reference 
the docket numbers of this Notice of Proposed Rulemaking (Docket Nos. 
RM15-13-000, RM15-12-000, and RM15-7-000) in your submission.

V. Regulatory Flexibility Act Analysis

    41. The Regulatory Flexibility Act of 1980 (RFA) \53\ generally 
requires a description and analysis of Proposed Rules that will have 
significant economic impact on a substantial number of small entities. 
The immediate rulemaking proposes action on three separate, but 
related, NERC petitions. As discussed above, the consolidated EOP 
standard and consolidated PRC standards are intended to provide 
additional efficiencies for responsible entities. Thus, the Commission 
estimates that the rulemaking will impose only a minimal additional 
burden on responsible entities, as described below. Proposed 
Reliability Standard EOP-011-1 is expected to impose an additional 
burden on 11 entities (reliability coordinators). The remaining 270 
entities (balancing authorities and transmission operators and a 
combination thereof) will maintain the existing levels of burden. 
Comparison of the applicable entities with FERC's small business data 
indicates that approximately 7 of the 11 entities are small entities 
affected by this proposed Reliability Standard.\54\
---------------------------------------------------------------------------

    \53\ 5 U.S.C. 601-12.
    \54\ The Small Business Administration sets the threshold for 
what constitutes a small business. Public utilities may fall under 
one of several different categories, each with a size threshold 
based on the company's number of employees, including affiliates, 
the parent company, and subsidiaries. For the analysis in this NOPR, 
we use a 500 employee threshold for each affected entity. Each 
entity is classified as Electric Bulk Power Transmission and Control 
(NAICS code 221121).
---------------------------------------------------------------------------

    42. On average, each small entity affected may have a one-time cost 
of $92,387, representing a one-time review of the program for each 
entity, consisting of 1,500 man-hours at $66.35/hour (for engineers) 
and $30.66/hour (for record clerks), as explained above in the 
information collection statement. Proposed Reliability Standard PRC-
010-1 is expected to impose an additional burden on 26 entities 
(distribution providers and transmission planners or a combination 
thereof). Comparison of the applicable entities with FERC's small 
business data indicates that approximately 8 are small entities 
affected by this proposed Reliability Standard.
    43. On average, each small entity affected may have a cost of 
$1,906, representing a one-time review of the program for each entity, 
consisting of 96 man-hours at $66.35/hour (for engineers) and $30.66/
hour (for record clerks), as explained above in the information 
collection statement. The Commission estimates that the modified 
definition of the term Remedial Action Scheme and related modifications 
to Reliability Standards will have no cost impact on applicable 
entities, including any small entities.
    44. The Commission estimates that the combined impact of proposed 
Reliability Standards EOP-011-1 and PRC-010-1 in this NOPR would impose 
an additional burden on a total of 47 entities. Further, the Commission 
estimates that 15 respondents are small entities affected by these 
proposed Reliability Standards. On average, each small entity affected 
may have a cost of $92,387 and $1,906 (EOP-011-1 and PRC-010-1 
respectively), representing a one-time review of the program for each 
entity. The Commission does not consider these costs to be a 
significant economic impact on small entities. Accordingly, the 
Commission certifies that this rulemaking will not have a significant 
economic impact on a substantial number of small entities. The 
Commission seeks comment on this certification.

VI. Environmental Analysis

    45. 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 
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.\56\ The actions proposed 
herein fall within this categorical exclusion in the Commission's 
regulations.
---------------------------------------------------------------------------

    \55\ Regulations Implementing the National Environmental Policy 
Act of 1969, Order No. 486, FERC Stats. & Regs. ] 30,783 (1987).
    \56\ 18 CFR 380.4(a)(2)(ii).
---------------------------------------------------------------------------

VII. Comment Procedures

    46. 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

[[Page 36301]]

that commenters may wish to discuss. Comments are due August 24, 2015. 
Comments must refer to Docket Nos. RM15-13-000, RM15-12-000, and RM15-
7-000, and must include the commenter's name, the organization they 
represent, if applicable, and address.
    47. 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.
    48. 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.
    49. 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

    50. 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.
    51. 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.
    52. 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.

    Dated: June 18, 2015.
Kimberly D. Bose,
Secretary.
[FR Doc. 2015-15432 Filed 6-23-15; 8:45 am]
 BILLING CODE 6717-01-P