[Federal Register Volume 89, Number 88 (Monday, May 6, 2024)]
[Proposed Rules]
[Pages 37147-37157]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-09438]
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DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
18 CFR Parts 2 and 38
[Docket No. RM05-5-031]
Standards for Business Practices and Communication Protocols for
Public Utilities
AGENCY: Federal Energy Regulatory Commission.
ACTION: Notice of proposed rulemaking.
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SUMMARY: The Federal Energy Regulatory Commission proposes to amend its
regulations to incorporate by reference, with certain exceptions, the
latest version (Version 004) of the Standards for Business Practices
and Communication Protocols for Public Utilities adopted by the
Wholesale Electric Quadrant of the North American Energy Standards
Board.
DATES: Comments are due July 5, 2024.
ADDRESSES: Comments, identified by docket number, may be filed in the
following ways. Electronic filing through http://www.ferc.gov, is
preferred.
Electronic Filing: Documents must be filed in acceptable
native applications and print-to-PDF, but not in scanned or picture
format.
For those unable to file electronically, comments may be
filed by USPS mail or by hand (including courier) delivery.
[cir] Mail via U.S. Postal Service Only: Addressed to: Federal
Energy Regulatory Commission, Secretary of the Commission, 888 First
Street NE, Washington, DC 20426.
[cir] Hand (Including Courier) Delivery: Deliver to: Federal Energy
Regulatory Commission, 12225 Wilkins Avenue, Rockville, MD 20852.
The Comment Procedures Section of this document contains more
detailed filing procedures.
FOR FURTHER INFORMATION CONTACT:
John O. Sillin (technical issues), Office of Energy Policy and
Innovation, Federal Energy Regulatory Commission, 888 First Street, NE,
Washington, DC 20426, (202) 502-6548
Veronica Norman (legal issues), Office of the General Counsel, Federal
Energy Regulatory Commission, 888 First Street NE, Washington, DC
20426, (202) 502-8751
SUPPLEMENTARY INFORMATION:
Table of Contents
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Paragraph No.
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I. Overview............................................. 1.
II. Background.......................................... 2.
III. Discussion......................................... 5.
A. Modifications to Previous Version of Standards... 9.
1. Modifications in Response to Commission Order 9.
Nos. 676-I and 676-J...............................
2. Modifications To Support Cybersecurity for the 19.
Wholesale Electric Industry........................
3. Modifications To Complement NERC Reliability 22.
Standards..........................................
4. Modifications to the WEQ OASIS Business Practice 24.
Standards..........................................
5. Modifications To Coordinate Interchange Standards 34.
6. Modifications to Abbreviations, Acronyms, and 36.
Defined Terms......................................
7. Voluntary Renewable Energy Certificates Contract. 37.
8. Minor Corrections................................ 38.
B. New Sets of Standards................................ 39.
1. WEQ-024 Cybersecurity............................ 39.
2. WEQ-025 Grid Services Supporting Wholesale 40.
Electric Interactions..............................
C. Standards the Commission Proposes Not To Incorporate 43.
by Reference...........................................
1. WEQ-010 Contracts Related Business Practice 43.
Standards..........................................
2. WEQ-025 Grid Services Supporting Wholesale 44.
Electric Interactions..............................
D. Proposed Implementation Procedures............... 45.
IV. Notice of Use of Voluntary Consensus Standards...... 48.
V. Incorporation by Reference........................... 49.
VI. Information Collection Statement.................... 75.
VII. Environmental Analysis............................. 80.
VIII. Regulatory Flexibility Act........................ 81.
IX. Comment Procedures.................................. 85.
X. Document Availability................................ 88.
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I. Overview
1. The Federal Energy Regulatory (Commission) proposes to amend its
regulations at 18 CFR 38.1(b) to incorporate by reference, with certain
enumerated exceptions,\1\ the latest
[[Page 37148]]
version (Version 004) of the Standards for Business Practices and
Communication Protocols for Public Utilities adopted by the Wholesale
Electric Quadrant (WEQ) of the North American Energy Standards Board
(NAESB) (WEQ Version 004 Standards) applicable to the wholesale
electric industry. NAESB is an American National Standards Institute-
accredited, non-profit standards development organization formed for
the purpose of developing voluntary standards and model business
practices that promote more competitive and efficient natural gas and
electric markets. On July 31, 2023, NAESB filed a notice that it had
approved and published the WEQ Version 004 Standards to replace the
currently incorporated version (Version 003.3) of those business
practice standards (Informational Report).\2\ The revisions made by
NAESB in the WEQ Version 004 Standards are designed to aid public
utilities with the consistent and uniform implementation of
requirements promulgated by the Commission as part of the pro forma
Open Access Transmission Tariff.
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\1\ In addition to the standards discussed below that are not
proposed for incorporation by reference, the Commission is not
proposing to incorporate by reference the following: (1) the WEQ-009
Standards of Conduct for Electric Transmission Providers, which
NAESB has eliminated as they duplicate the Commission's regulations;
and (2) the WEQ-014 WEQ/WGQ eTariff Related Business Practice
Standards, which provide an implementation guide describing the
various mechanisms, data tables, code values/reference tables, and
technical specifications used in the submission of electronic tariff
filings to the Commission, which the Commission has not incorporated
as these submittals are governed by the Commission's eTariff
regulations.
\2\ See NAESB WEQ Business Practice Standards Version 004
Report, Docket No. RM05-5-31, (filed July 31, 2023).
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II. Background
2. Since 2006, the Commission has adopted in its regulations
NAESB's business practice standards and communication protocols for
public utilities, promulgated in the Order No. 697 series of orders,\3\
wherein the Commission incorporated by reference the standards for
public utilities developed by NAESB's WEQ. Upon incorporation by
reference, this version of the standard will replace the currently
incorporated version (Version 003.3) of those business practice
standards.
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\3\ This series of orders began with the Commission's issuance
of Standards for Bus. Practices & Commc'n Protocols for Pub. Utils.,
Order No. 676, 71 FR 26,199 (May 4, 2006), 115 FERC ] 61,102 (2006).
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3. On July 31, 2023, NAESB filed a report informing the Commission
that it had approved and published the WEQ Version 004 Standards. NAESB
states that the WEQ Version 004 Standards include newly created
standards, as well as modifications to existing standards, developed
through the NAESB standards development process. WEQ Version 004
Standards build upon WEQ Version 003.3 Standards and include standards
developed in response to the directives from Order Nos. 676-I and 676-
J,\4\ business practice standards developed to support cybersecurity
for the wholesale electric industry, modifications to complement the
NERC Reliability Standards, the new NAESB Base Contract for Sale and
Purchase of Voluntary Renewable Energy Certificates (NAESB REC
Contract), and standards to identify definitions for common grid
services to support distributed energy resource interactions in
response to a request submitted by the Department of Energy (DOE),
Lawrence Berkeley National Laboratory (Berkeley Lab), and Pacific
Northwest National Laboratory (PNNL). Additionally, WEQ Version 004
Standards include modifications applied to Open Access Same-Time
Information Systems (OASIS) Business Practice Standards, the Coordinate
Interchange Business Practice Standards, and the Abbreviations,
Acronyms, and Defined Terms.
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\4\ See Standards for Bus. Practices & Commc'n Protocols for
Pub. Utils., Order No. 676-I, 85 FR 10571 (Feb. 25, 2020), 170 FERC
] 61,062 (2020); Standards for Bus. Practices & Commc'n Protocols
for Pub. Utils., No. 676-J, 86 FR 29,491 (Jun. 2, 2021), 175 FERC ]
61,139 (2021).
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4. The Informational Report includes an overview of all standard
additions, modifications, and reservations applied to Version 004 of
the WEQ Business Practice Standards and summarizes the deliberations
that led to the changes. It also identifies changes to the existing
standards that were considered but not adopted.\5\
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\5\ Since the publication of WEQ Version 003.3, sixteen
standards development efforts have resulted in recommendations from
WEQ subcommittees for no action.
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III. Discussion
5. In this notice of proposed rulemaking (NOPR), we propose to
incorporate by reference into the Commission's regulations at 18 CFR
38.1(b) the WEQ Version 004 Standards as developed by NAESB, with
certain exceptions.\6\ In the subsections that follow, we provide the
summary required by the Office of Federal Register regulations. As an
initial matter, we note that the WEQ Version 004 Standards include
modifications, reservations, and additions to the following set of
existing WEQ Standards, i.e., the Version 003.3 Business Practice
Standards.
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\6\ In the discussion below, we identify the NAESB WEQ Version
004 Standards that we propose not to incorporate by reference.
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Standard No. Business practice standards
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WEQ-000..................................................... Abbreviations, Acronyms, and Definition of Terms.
WEQ-001..................................................... OASIS.
WEQ-002..................................................... OASIS Standards and Communication Protocol (S&CP).
WEQ-003..................................................... OASIS Data Dictionary.
WEQ-004..................................................... Coordinate Interchange.
WEQ-005..................................................... Area Control Error Equation Special Cases.
WEQ-006..................................................... Manual Time Error Correction.
WEQ-008..................................................... Transmission Loading Relief (TLR)--Eastern
Interconnection.
WEQ-010..................................................... Contracts Related Business Practice Standards.
WEQ-012..................................................... Public Key Infrastructure (PKI).
WEQ-013..................................................... OASIS Implementation Guide.
WEQ-015..................................................... Measurement and Verification of Wholesale
Electricity Demand Response.
WEQ-021..................................................... Measurement and Verification of Energy Efficiency
Products.
WEQ-022..................................................... Electric Industry Registry.
WEQ-023..................................................... Modeling.
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6. Additionally, the WEQ Version 004 Business Practice Standards
include two new sets of standards:
[[Page 37149]]
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WEQ-024..................................................... Cybersecurity.
WEQ-025..................................................... Grid Services Supporting Wholesale Electric
Interactions.
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7. As the Commission found in Order No. 676, adoption of consensus
standards is appropriate because the consensus process helps ensure the
reasonableness of the standards by requiring that the standards draw
support from a broad spectrum of all segments of the industry.
Moreover, since the industry itself conducts business under these
standards, the Commission's regulations should reflect those standards
that have the widest possible support. In section 12(d) of the National
Technology Transfer and Advancement Act of 1995, Congress affirmatively
requires Federal Agencies to use technical standards developed by
voluntary consensus standards organizations, such as NAESB, as a means
of carrying out policy objectives or activities unless use of such
standards would be inconsistent with applicable law or otherwise
impractical.\7\
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\7\ Public Law 104-113, 12(d), 110 Stat. 775 (1996), 15 U.S.C.
272 note (1997).
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8. We discuss below some specific aspects of NAESB's informational
report. The following paragraphs describe NAESB's proposed
modifications, reservations, and additions to its existing standards,
which collectively produce NAESB's proposed WEQ Version 004 Standards.
The paragraphs also describe relevant background information and
impetuses for the changes.
A. Modifications to Previous Version of Standards
1. Modifications in Response to Commission Order Nos. 676-I and 676-J
9. WEQ Version 004 contains modifications made in response to
directives contained in Order Nos. 676-I and 676-J and related
industry-submitted standards requests under three separate standards
development efforts related to standards for redirection of
transmission, time error correction, and contract path management. As
part of these efforts, NAESB modified the WEQ-000 Abbreviations,
Acronyms, and Definition of Terms, WEQ-001 OASIS Business Practice
Standards, WEQ-003 OASIS Data Dictionary Business Practice Standards,
WEQ-006 Manual Time Error Correction Business Practice Standards, WEQ-
013 OASIS Implementation Guide Business Practice Standards, and WEQ-023
Modeling Business Practice Standards.
a. Standards for Redirection of Transmission Service
10. In response to Order No. 676-I,\8\ NAESB revised the WEQ-001,
WEQ-003, and WEQ-013 standards to provide greater specificity regarding
the transmission service reservation process that applies to
redirection of transmission service (redirects) on a firm and non-firm
basis, consistent with the Commission's Dynegy \9\ policy addressing a
customer's right to keep its contractual rights to point-to-point firm
transmission service on the original path it has reserved while the
customer's request for a redirect is pending.\10\ In Dynegy Power
Marketing, Inc. v. Southwest Power Pool, Inc., the Commission held that
a transmission customer receiving firm transmission service does not
lose its rights to its original path until the redirect request
satisfies all of the following criteria: (1) it is accepted by the
transmission provider; (2) it is confirmed by the transmission
customer; and (3) it passes the conditional reservation deadline under
section 13.2 of the transmission provider's OATT.
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\8\ Order No. 676-I, 170 FERC ] 61,062 at PP 35-39.
\9\ 99 FERC ] 61,054, at P 9 (2002) (Dynegy). This policy was
retained and clarified in Entergy Services, Inc., 143 FERC ] 61,143,
at PP 30-33 (2013) (Entergy).
\10\ Order No. 676-I, 170 FERC ] 61,062 at P 3.
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11. In Order No. 676-I, the Commission incorporated by reference
the NAESB standards, except for the preambles in WEQ-001-9 and WEQ 001-
10. The Commission declined to incorporate by reference the two
preambles because they appeared to permit transmission providers the
option to implement their own entity-specific procedures, which would
not have ensured consistency across the bulk power system.\11\ The
Commission also specified which firm parent reservations would be
afforded the protection of the Dynegy policy and limited the Dynegy
policy to redirects from unconditional firm service.\12\
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\11\ Order No. 676-I, 170 FERC ] 61,062 at PP 37-38.
\12\ Id. P 36.
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12. In response to Order No. 676-I, NAESB conducted a full review
of both the WEQ-001-9 and WEQ-001-10 NAESB Standards to identify any
shortcomings and modifications needed to comply with the Commission's
conclusions and with Dynegy. The proposed standards provide additional
details regarding the treatment of redirects from unconditional and
conditional parent transmission service reservations, require redirects
of non-firm transmission service to be from unconditional parent
transmission service reservations, and require resales of transmission
service to be from unconditional parent transmission service
reservations. Further, the modified standards establish a mechanism to
allow capacity to be returned from a redirect of firm transmission
service to the parent transmission service reservation.
b. Time Error Correction
13. In Order No. 676-I, the Commission found that NAESB had not
provided sufficient justification for retiring the Time Error
Correction standard (WEQ-006), as it had proposed. The Commission
instead left in place the incorporation by reference of the time error
correction standard in the prior version of the standards (WEQ Version
003.1).\13\ The Commission requested that public utilities work through
the NAESB business practices development process to revisit the
rationale for removing the Time Error Correction standards to determine
whether they should be retained or revised.
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\13\ Order 676-I, 170 FERC ] 61,062 at P 46.
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14. In response to the Commission in Order No. 676-I, NAESB revised
WEQ-006 Manual Time Error Correction Business Practice Standards to
address commercial requirements for entities calling for manual time
error corrections in accordance with the NERC Time Monitoring Reference
Document Version 5.\14\ Under the revised standards, Interconnection
Time Monitors are required to monitor Time Error and make a reasonable
effort to initiate or terminate corrective action orders according to
the table in the standards when the time is slow or fast. The standards
further require that, when any balancing authority has been separated
from the Interconnection, after reconnection, it is required to adjust
its Time Error devices to coincide with the Time Error of the
Interconnection Time Monitor. These requirements do not apply to
balancing authorities and Interconnection Time
[[Page 37150]]
Monitors that use automatic Time Error Correction procedures.
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\14\ North American Electric Reliability Corporation, Time
Monitoring Reference Document, Version 5 (2019).
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c. Contract Path Management
15. In Order No. 676-J, the Commission incorporated by reference
all the WEQ-023 Modeling Business Practice Standards as included in WEQ
Version 003.3 Standards, which had two new standards--WEQ-023-1.4 and -
1.4.1--related to contract path management not previously included in
the NERC MOD A Reliability Standards. Those standards limited the
amount of firm transmission service granted on an Available Transfer
Capability (ATC) Path and limited the interchange schedule (both firm
and non-firm) between balancing authority areas to the contract path
limit for that given path, respectively. Bonneville Power
Administration (BPA) and the ISO/RTO Council objected to these
standards, contending that the standards interfere with the way service
providers schedule their systems and that the standards may result in
less efficient use of ATC. Notwithstanding these objections, the
Commission incorporated these standards by reference, finding that
declining to adopt these standards could loosen the requirements for
non-discriminatory calculation of ATC. However, the Commission urged
NAESB to consider the issues raised as to whether revisions to the
standards would be warranted.\15\
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\15\ Order No. 676-J, 175 FERC ] 61,139 at P 30.
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16. In response, NAESB modified the WEQ-023 Modeling Business
Practice Standards to allow the contract path limit to be exceeded for
a certain period of time prior to the start of flow.\16\ Specifically,
the revisions to WEQ-023-1.4 and WEQ-023-1.4.1 were modified to better
accommodate individual transmission provider business practices that
may, for scheduling efficiency purposes, allow a contract path limit to
be exceeded for a certain period prior to the implementation of the
interchange schedule.\17\ The modification to WEQ-023-1.4.1 stipulates
that when a transmission provider is determining whether to approve a
request for firm transmission service, the transmission provider will
consider the methodology used by other transmission providers and
determine whether there is agreement between the methodologies.
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\16\ Informational Report at 8.
\17\ Id.
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17. The modifications to WEQ-023-1.4.1 provide clarity by
establishing a cutoff time by which transmission providers must ensure
that the net interchange schedule does not exceed the contract path
limit. The revisions also include changes to ensure consistency with
WEQ-023-1.4, as well as changes to clarify that entities using
conditional firm transmission service may exceed the firm limit
transfers in accordance with WEQ-001.21.
18. The revised standards proposed for incorporation by reference
provide increased flexibility for transmission providers to maximize
the use of the transmission system while still preventing the
allocation of firm transmission service that exceeds transfer
capability.
2. Modifications To Support Cybersecurity for the Wholesale Electric
Industry
19. In addition to the addition of a new set of standards, WEQ-024
Cybersecurity Business Practice Standards (see section III.B.1 below),
NAESB made modifications to WEQ-012 to support the issuance of server-
side or transport layer security certificates by NAESB Authorized
Certification Authorities (ACA).
20. The modifications to WEQ-012 standards incorporate best
industry practices regarding the issuance of server-side or transport
layer security server certificates by a certificate authority and allow
a NAESB ACA to issue code-signing certificates that can be used to
verify software and other executables in support of the NERC CIP-010
Security--Configuration Change Management and Vulnerability Assessments
Reliability Standard. As part of these modifications, any digital
certificate issued by a NAESB ACA must clearly and uniquely identify
the organizational affiliation of the certificate holder.
Identification is done through the inclusion of the company's Entity
Code, an alphanumeric code that uniquely identifies an entity
registered in the NAESB Electric Industry Registry (EIR), in the
Organization Unit field of the certificate. Recent changes to industry
practices facilitated through the Certification Authority Browser Forum
have halted use of the Organization Unit field in server-side/transport
layer security certificates issued by any certificate authority.
21. Additional modifications were made to the NAESB Accreditation
Requirements for ACAs. The modifications will allow NAESB ACAs to issue
code signing certificates that can be used by industry to authenticate
software and other executable computer files from third parties. The
modifications are supportive of Reliability Standard CIP-010 Cyber
Security--Configuration Change Management and Vulnerability Assessments
Reliability Standards require verification of the identity of a
software source.
3. Modifications To Complement NERC Reliability Standards
22. WEQ Version 004 Standards include revisions to complement the
NERC Reliability Standards, including modifications to be consistent
with the NERC Glossary. The revisions modified WEQ-005-1.2.1 and WEQ-
005-1.2.2 and created four new standards--WEQ-005-1.2.1.1, WEQ-005-
1.2.1.2, WEQ-005-1.2.2.1, and WEQ-005-1.2.2.2. The changes were made to
provide further clarity on the incorporation of jointly owned units
into the ACE equation and to ensure consistency in the use of
terminology between the WEQ Business Practice Standards and the NERC
Dynamic Transfer Reference Document, which provides reliability
guidance on the use of pseudo-ties and dynamic schedules in a balancing
authority's ACE equations.\18\ Changes ensuring consistency in
terminology were also made to WEQ-000.
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\18\ North American Electric Reliability Corporation, Dynamic
Transfer Reference Document, Version 4 (2019).
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23. NAESB also modified the definition for System Operating Limit
in WEQ-000 to ensure consistency with the proposed changes to the
definition in the NERC Glossary. As the term appears in WEQ-001, WEQ-
004, WEQ-008, and WEQ-023, the review of the modified definition was
coordinated with four WEQ subcommittees.
4. Modifications to the WEQ OASIS Business Practice Standards
24. In addition to the OASIS modifications referenced previously,
NAESB completed nine final actions modifying the OASIS suite of
Business Practice Standards.
a. Eligibility and Treatment of Rollover Rights
25. NAESB developed modifications to the WEQ OASIS suite of
Business Practice Standards to address the eligibility and treatment of
rollover rights \19\ as part of the standards
[[Page 37151]]
supporting Network Integration Transmission Service (NITS).\20\ The
recommendation includes new and revised standards that define if and
when rollover rights are assigned, update posting requirements and
establish supporting template structures, and create dynamic
notifications within OASIS for rollover rights. In developing the
recommendation, one area of major discussion within the subcommittee
was the impact of a termination of transmission service on rollover
rights. The subcommittee reached consensus that indefinite termination
of transmission service will result in an automatic termination of
rollover rights associated with that service. The resulting standards
revisions, including template structures, were applied to WEQ-001, WEQ-
002, WEQ-003, and WEQ-013.
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\19\ A Rollover Right is the option held by an existing firm
transmission service customer to continue to take transmission
service after a contract term expires. The contract ``rolls over''
or is, in effect, renewed. Promoting Wholesale Competition Through
Open Access Non-Discriminatory Transmission Servs. by Pub. Utils.;
Recovery of Stranded Costs by Pub. Utils. & Transmitting Utils.,
Order No. 888, 61 FR 21540 at 21604 (May 10, 1996), FERC Stats. &
Regs. ] 31,036 (1996) (cross-referenced at 75 FERC ] 61,080), order
on reh'g, Order No. 888-A, 62 FR 12274 (Mar. 14, 1997), FERC Stats.
& Regs. ] 31,048 (cross-referenced at 78 FERC ] 61,220), order on
reh'g, Order No. 888-B, 81 FERC ] 61,248 (1997), order on reh'g,
Order No. 888-C, 82 FERC ] 61,046 (1998), aff'd in relevant part sub
nom. Transmission Access Pol'y Study Grp. v. FERC, 225 F.3d 667
(D.C. Cir. 2000), aff'd sub nom. New York v. FERC, 535 U.S. 1
(2002).
\20\ The standards addressing rollover rights for point-to-point
transmission service were included in the WEQ Version 003.2
Standards publication and were incorporated by reference through
Order No. 676-I.
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b. Submission of Variables Associated With NITS
26. Several modifications were made to WEQ-002 and WEQ-003 to allow
users the ability to submit specific lists of variables associated with
NITS as part of the query/response functionality in OASIS templates.
The revisions include changes to standards language in WEQ-002 and the
addition of five new data elements to WEQ-003. No new NITS query
variables were developed as part of these revisions.
c. Provide Consistency Between Standards Language
27. NAESB developed modifications to WEQ-001 to provide greater
consistency between the standards language included in WEQ-001-9.2 and
WEQ-001-9.4.3 and WEQ-001-B Appendix B--Redirect Business Practice
Standards Examples. Specifically, the changes revise several of the
illustrative examples included as part of the appendix to clarify that
transmission service? requests submitted before the capacity is
committed, or outside the time frame of the parent reservation, should
be denied, consistent with WEQ-001-9.2 and WEQ-001-9.3. The changes
also ensure consistency between the reservation processes that apply to
redirects on firm and non-firm bases.
d. Improvements for OASIS Node Users
28. NAESB revised WEQ-002, WEQ-003, and WEQ-013 to establish a
mechanism that enables OASIS node users to identify--in a single
location--all service modifications made to an original transmission
service request reservation. Specifically, the revisions include
modifications to WEQ-002-4.3.4.3, the addition of nine new data
elements in WEQ-003, and revisions to illustrative examples included in
WEQ-013 Example 8.
e. Better Support Posting Requirements
29. NAESB developed modifications to WEQ-001 to better support
posting requirements, included as part of 18 CFR 37.6, by adding
specificity regarding the treatment of consolidations of transmission
service requests. Consolidations of transmission service requests allow
customers to combine capacity from like transmission service requests
into a single request to promote efficient scheduling activities. When
transmission service requests are consolidated, the consolidated
request inherits attributes from the parent reservation, including the
product code. The revisions to the standards ensure parity between
consolidated and non-consolidated transmission service requests. The
modifications are intended to eliminate the potential for a service
increment to be created through consolidation that would otherwise be
unavailable under a transmission provider's existing tariff processes,
such as requests that have been consolidated into a daily transmission
service request but inherited a monthly product code from one of the
original parent reservations. The changes modify WEQ-001-24.2.4 and
include two new standards, WEQ-001-24.2.4.1 and WEQ-001-24.2.4.2.
f. Provide Greater Clarity Regarding Priorities Between a Firm
Transmission Service Request and a Previously Queued Non-Firm Request
30. NAESB modified WEQ-001 by modifying Table 25-3, Priorities for
Competing Reservations or Requests, to better describe how a
competition is conducted between a firm transmission service request
and a previously queued non-firm request or reservation.
g. Response Timing Standards
31. The WEQ OASIS Subcommittee recommended certain modifications to
extend response times for some functions to account for human
performance.\21\ As a result, the proposed revisions include revisions
modifying the timing tables included in WEQ-001-4.13, WEQ-001-25.1.8,
and WEQ-001-105.1.5 to extend specific timing criteria for instances in
which systems are not fully automated. These changes will be utilized
by transmission providers and operators who do not have automated
systems for responding to transmission service requests. The benefits
include extending timing requirements that are deemed unreasonably
strict for non-automated implementations. Subjects covered include
point-to-point transmission service, right of first refusal response
processing, and Network Integration Transmission Service requests.
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\21\ Informational Report at 15.
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h. Provide Greater Clarity for Transmission Customers
32. NAESB also modified the WEQ OASIS suite of Business Practice
Standards to provide greater clarity for transmission customers on
which redirect requests would qualify for the conveyance of rollover
rights. As part of the revisions, transmission customers are required
to explicitly indicate their intent to convey rollover rights to the
redirect path by expressly opting-in or opting-out of the conveyance,
eliminating the possibility that rollover rights could be
unintentionally redirected. Prior to ratification of these standards,
the default option was to grant the conveyance automatically. The
standards revisions include modifications to WEQ-001-9.7.3.1 and WEQ-
002-4.3.6.2, as well as the creation of three new standards--WEQ-001-
9.7.3.3, WEQ-001-9.7.3.4, and WEQ-001-9.7.3.3--and consistency changes
to WEQ-003 and WEQ-013.
i. Improve Efficiencies by Creating a Tracking and Audit Mechanism for
Transmission Service Reservations
33. Finally, NAESB revised the WEQ OASIS suite of Business Practice
Standards to improve efficiencies by creating a tracking and audit
mechanism for transmission service reservations that allows
transmission providers and customers to easily assess changes that
occur as a result of the preemption and right-of-first-refusal process.
The standards revisions modify WEQ-001-25.4.6.5.3, WEQ-002-4.3.6.2,
WEQ-002-4.3.6.3, and WEQ-013-6.3, and add two new data elements to WEQ-
003.
5. Modifications To Coordinate Interchange Standards
34. NAESB revised the WEQ-004 Coordinate Interchange Business
Practice Standards to promote efficiency by streamlining the procedures
entities should follow in the event of a system failure of the primary
communication
[[Page 37152]]
method used to manage interchange transactions--electronic tags (e-
Tags). The revised WEQ-004, specifically WEQ-004-2.1 and WEQ-004-A,
clarify the existing back-up procedures for e-Tagging and remove the
requirements supporting outdated communication methods.
35. NAESB also modified the WEQ-000 and WEQ-004 standards. The
revisions add a new appendix to WEQ-004 to provide guidance and best
practices to entities in the Eastern Interconnection that automate the
net scheduled interchange checkout process. The standards are intended
to support and complement the NERC Reliability Standard INT-009-3
Implementation of Interchange, which requires balancing authorities to
communicate net interchange information on a periodic basis with
adjacent balancing authorities. The WEQ Coordinate Interchange
Scheduling Subcommittee discussed the development of a data
specification that would include all data required to automate the net
scheduled interchange checkout process. The subcommittee's participants
drafted standards to provide guidance for the implementation of such
automation. In the recommendation containing the standards revisions,
the subcommittee noted that the Western Interconnection's use of the
Western Electricity Coordinating Council Interchange Tool would not be
impacted by the automation efforts for the Eastern Interconnection.
6. Modifications to Abbreviations, Acronyms, and Defined Terms
36. In addition to the consistency changes described above
regarding WEQ-000, the WEQ Version 004 Standards publication includes a
new cross-reference column displaying the abbreviations, acronyms, and
definition of terms with their corresponding NAESB WEQ Standards.
Additional changes to ensure consistency in the use of abbreviations,
acronyms, and defined terms were made to the WEQ OASIS Suite of
Standards, WEQ-004 Coordinate Interchange Business Practice Standards,
WEQ-008 TLR--Eastern Interconnection Business Practice Standards, WEQ-
012 PKI Business Practice Standards, WEQ-022 EIR Business Practice
Standards, and WEQ-023 Modeling Business Practice Standards.
7. Voluntary Renewable Energy Certificates Contract
37. The Informational Report also includes a newly developed NAESB
REC Contract, an accompanying Frequently Asked Questions document, and
associated technical implementation standards containing data
dictionaries and code values. These documents and standards are
included in WEQ-010 Contracts Business Practice Standards to support
the use of the NAESB REC Contract with digital technologies, such as
blockchain, in the retail and wholesale markets.
8. Minor Corrections
38. Since the publication of WEQ Version 003.3 standards, NAESB
processed ten minor corrections applicable to the WEQ Business Practice
Standards through its Minor Correction Process, and incorporated them
into the WEQ Version 004 Standards.\22\
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\22\ As noted above, NAESB also used its minor correction
process to compile the existing WEQ Cybersecurity Standards into a
new book, WEQ-024 Cybersecurity Business Practice Standards.
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B. New Sets of Standards
1. WEQ-024 Cybersecurity
39. In the WEQ Version 004 Standards, NAESB established a new set
of Cybersecurity-related business practice standards in WEQ-024. This
new set of standards reorganizes existing NAESB cybersecurity business
practice standards into a new suite of NAESB standards. NAESB explained
that it responded to an informal recommendation from DOE and Sandia
National Laboratories (Sandia Labs) that arose from the 2019 Surety
Assessment of cybersecurity elements contained in the NAESB Business
Practice Standards. This consolidation should make the NAESB and
Commission processes for revising NAESB cybersecurity business practice
standards easier and faster to help match the fast pace of changes in
cybersecurity practices. NAESB considered this consolidation a minor
correction process; no new standards development efforts arose from
this consolidation.
2. WEQ-025 Grid Services Supporting Wholesale Electric Interactions
40. In the WEQ Version 004 Standards, NAESB also established as a
new suite of standards, WEQ-025 Grid Services Supporting Wholesale
Electric Interactions Business Practice Standards, to promote greater
consistency in wholesale market interactions and communication
exchanges by flexible, ``grid-edge'' resources such as distributed
energy resources and batteries. NAESB developed the standards in
response to DOE, Berkeley Lab, and PNNL, which proposed that NAESB
define a common list of grid services for electric market interactions
in support of the DOE's Grid Modernization Laboratory Consortium
efforts to modernize the nation's electric grid.
41. The WEQ-025 standards identify six categories of operations-
based grid services used within the wholesale electric markets: (1)
Energy Grid Service; (2) Reserve Grid Service; (3) Regulation Grid
Service; (4) Frequency Response Grid Service; (5) Voltage Management
Grid Service; and (6) Blackstart Grid Service. The standards also
describe the types of attributes, such as location, timing, and
performance determinations, that may be used by System Operators to
define the unique requirements for services within their wholesale
electricity markets. Due to regional variation and different markets,
System Operators have varying names for operational objectives for the
same or similar grid services. The new standards establish a
technology-neutral framework that describes the operational objective
of common types of market services and identifies the different
physical capabilities to consume and/or inject electricity on the grid
that a resource must be technically capable of providing.
42. According to the Informational Report, the framework introduced
by these standards can enable regulators to easily compare market
information regarding the use of transmission grid services across
multiple jurisdictions. The changes are also designed to help market
participants identify types of market services their resources may be
able to provide and to create greater consistency in communications
between resource owners participating in multiple markets and working
with several System Operators to improve commercial transaction
efficiencies.\23\
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\23\ Informational Report at 12.
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C. Standards the Commission Proposes Not To Incorporate by Reference
1. WEQ-010 Contracts Related Business Practice Standards
43. We propose to not to incorporate by reference WEQ-010, which
includes the NAESB REC Contract, the accompanying Frequently Asked
Questions document, and the associated technical implementation
standards containing data dictionaries and code values contained in
WEQ-010. This approach is consistent with our past practice \24\ of not
incorporating by reference into our regulations any
[[Page 37153]]
optional model contracts and related documents because we do not
require the use of these contracts.\25\
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\24\ See, e.g., Standards for Bus. Practices of Interstate Nat.
Gas Pipelines, Notice of Proposed Rulemaking, 86 FR 12879 (Mar. 5,
2021), 174 FERC ] 61,103, at P 19 (2021) (Version 3.2 NOPR).
\25\ Id.; Standards for Bus. Practices of Interstate Nat. Gas
Pipelines, Order No. 587-V, 77 FR 43711 (Jul. 26, 2012), 140 FERC ]
61,036, at P 11 n.11 (2012).
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2. WEQ-025 Grid Services Supporting Wholesale Electric Interactions
44. Although we support NAESB's standards development for grid
services, we do not believe that it is necessary for the Commission to
incorporate the WEQ-025 standards and the related changes to the WEQ-
000 standards by reference. We note that the proposed NAESB standards
use terms similar to but different from terms in the pro forma OATT
that could introduce confusion if the Commission were to incorporate
these standards by reference. Under the pro forma OATT, a transmission
provider must provide a set of ancillary services, including reactive
supply and voltage control (Schedule 2), regulation and frequency
response (Schedule 3), and spinning and supplemental reserves
(Schedules 5 & 6). The grid services set forth in the WEQ-025 set of
standards address similar services; they include voltage, regulation,
frequency response, and reserves. Also, the WEQ-025 standards are
discretionary for system operators; thus, consistent with past
practice,\26\ we will not incorporate these standards by reference into
our regulations.
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\26\ See, e.g., Version 3.2 NOPR 174 FERC ] 61,103 at P 19.
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D. Proposed Implementation Procedures
45. The Commission proposes that transmission providers whose
tariffs do not automatically incorporate by reference all new NAESB
standards submit compliance filings on the proposed NAESB standards
nine months after publication of a final rule in the Federal Register.
Those compliance filings must reflect the requirements of the final
rule, any new waiver requests to comply with a part of the final rule,
and any request to preserve any existing waivers.
46. The Commission proposes separate implementation schedules for
the NAESB cybersecurity business practice standards and for all the
remaining WEQ Version 004 Standards. Transmission providers will be
required to implement the NAESB cybersecurity business practice
standards within 12 months from the date of publication in the Federal
Register of any final rule.\27\ Transmission providers will be required
to implement all other WEQ Version 004 Standards adopted in a final
rule within 18 months from the date of publication in the Federal
Register of any final rule. The Commission proposes implementation of
the NAESB cybersecurity business practice standards on an expedited
basis consistent with the Commission's implementation schedule
previously adopted for the WEQ Version 003.3 Standards.\28\ In that
order, the Commission noted DOE's request that cybersecurity standards
in that version be enacted on an expedited basis and that the stand-
alone nature of the standards permitted expedited implementation.
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\27\ A complete list of the specific cybersecurity business
practice standards is included at Appendix I.
\28\ Order No. 676-J, 175 FERC ] 61,139 at P 11.
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47. This 18-month implementation timeline for the other WEQ Version
004 standards is consistent with Business Practice Standards WEQ 002-6,
which states that transmission providers shall have 18 months from
publication of a final rule in the Federal Register to implement all
changes required to support the Business Practice Standards for OASIS
version 004. Business Practice Standards WEQ 002-6 also state that: (a)
OASIS Node changes required to support the version 004 OASIS template
format must be made available to transmission customers no later than
nine months after publication in the Federal Register and (b) OASIS
Nodes shall maintain support for version 003.3 format queries and
uploads for the full 18-month implementation period.
IV. Notice of Use of Voluntary Consensus Standards
48. Office of Management and Budget Circular A 119 (section 11)
(February 10, 1998) provides that federal agencies should publish a
request for comment in a NOPR when the agency is seeking to issue or
revise a regulation proposing to adopt a voluntary consensus standard
or a government-unique standard. In this NOPR, the Commission is
proposing to incorporate by reference the WEQ Version 004 Standards,
with the exception of WEQ-010 Contracts Related to Business Practice
Standards, which includes the NAESB REC Contract, and WEQ-025 Grid
Services Supporting Wholesale Electric Interactions. The WEQ Version
004 Standards were adopted by NAESB under NAESB's consensus
procedures.\29\
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\29\ Under this process, to be approved a standard must receive
a super-majority vote of 67% of the members of the WEQ's Executive
Committee with support from at least 40% from each of the five
industry segments--transmission, generation, marketer/brokers,
distribution/load serving entities, and end users. For final
approval, 67% of the WEQ's general membership must ratify the
standards.
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V. Incorporation by Reference
49. The Office of the Federal Register requires agencies proposing
to incorporate material by reference to discuss the ways that the
materials it incorporates by reference are reasonably available to
interested parties and how interested parties can obtain the
materials.\30\ The regulations also require agencies to summarize, in
the preamble of the final rule, the materials that it incorporates by
reference. The Commission proposes to incorporate by reference
standards that consist of suites of NAESB WEQ business practice
standards that address a variety of topics and are designed to aid
public utilities with the consistent and uniform implementation of
requirements promulgated by the Commission as part of the pro forma
Open Access Transmission Tariff. We summarize these standards below.
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\30\ 1 CFR 51.5 (2022). See Incorporation by Reference, 79 FR
66267 (Nov. 7, 2014).
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50. The WEQ-000 Abbreviations, Acronyms, and Definition of Terms
Business Practice Standards provide a single location for all
abbreviations, acronyms, and defined terms referenced in the WEQ
Business Practice Standards. These standards provide common
nomenclature for terms within the wholesale electric industry, thereby
reducing confusion and opportunities for misinterpretation or
misunderstandings among industry participants.
51. The OASIS suite of business practice standards (WEQ-001 Open
Access Same-Time Information Systems (OASIS), WEQ-002 OASIS Standards
and Communication Protocols, WEQ-003 OASIS Data Dictionary, and WEQ-013
OASIS Implementation Guide) support the FERC posting and reporting
requirements that provide information about each transmission
provider's performance of the requirements of its pro forma OATT. The
OASIS system is used for scheduling transmission on the bulk power
system, comprises the computer systems and associated communications
facilities that public utilities are required to provide for the
purpose of making available to all transmission users comparable
interactions, and provides transmission service information and any
back-end supporting systems or user procedures that collectively
perform the transaction processing functions for handling requests on
OASIS. These standards establish business practices and communication
protocols that provide
[[Page 37154]]
for consistent implementation across OASIS sites as well as consistent
methods for posting to OASIS.
52. The WEQ-001 OASIS Business Practice Standards define the
general and specific transaction processing requirements and related
business processes required for OASIS. The standards detail
requirements related to standard terminology for transmission and
ancillary services, attribute values defining transmission service
class and type, ancillary and other services definitions, OASIS
registration procedures, procurement of ancillary and other services,
path naming, next hour market service, identical transmission service
requests, redirects, resales, transfers, OASIS postings, procedures for
addressing ATC or AFC methodology questions, rollover rights,
conditional curtailment option reservations, auditing usage of Capacity
Benefit Margin, coordination of requests for service across multiple
transmission systems, consolidation, preemption and right-of-first
refusal process, and NITS requests.
53. The WEQ-002 OASIS Standards and Communication Protocols
Business Practice Standards define the technical standards for OASIS.
These standards detail network architecture requirements, information
access requirements, OASIS and point-to-point interface requirements,
implementation, and NITS interface requirements.
54. The WEQ-003 OASIS Data Dictionary Business Practice Standards
define the data element specifications for OASIS.
55. The WEQ-004 Coordinate Interchange Business Practice Standards
define the commercial processes necessary to facilitate interchange
transactions via Request for Interchange (RFI) and specify the
arrangements and data to be communicated by the entity responsible for
authorizing the implementation of such transactions (the entities
responsible for balancing load and generation).
56. The WEQ-005 Area Control Error (ACE) Equation Special Cases
Business Practice Standards define commercial-based requirements
regarding the obligations of a balancing authority to manage the
difference between scheduled and actual electrical generation within
its control area. Each balancing authority manages its ACE in
accordance with the NERC Reliability Standards. These standards detail
requirements for jointly owned utilities, supplemental regulation
service, and load or generation transfer by telemetry.
57. The WEQ-006 Manual Time Error Correction Business Practice
Standards define the commercial based procedures to be used for
reducing time error to within acceptable limits of true time consistent
with the guidance in Version 5 of NERC Time Monitoring Reference
Document.
58. The WEQ-007 Inadvertent Interchange Payback Business Practice
Standards define the methods in which inadvertent energy is paid back,
mitigating the potential for financial gain through the misuse of
paybacks for inadvertent interchange. Inadvertent interchange is
interchange that occurs when a balancing authority cannot fully balance
generation and load within its area. The standards allow for the
repayment of any imbalances through bilateral in-kind payback,
unilateral in-kind payback, or other methods as agreed to.
59. The WEQ-008 Transmission Loading Relief--Eastern
Interconnection Business Practice Standards define the business
practices for cutting transmission service during a Transmission
Loading Relief (TLR) event. These standards detail requirements for the
use of interconnection-wide TLR procedures, interchange transaction
priorities for use with interconnection-wide TLR procedures, and the
Eastern Interconnection procedure for physical curtailment of
interchange transactions.
60. The WEQ-011 Gas/Electric Coordination Business Practice
Standards define communication protocols intended to improve
coordination between the gas and electric industries in daily
operational communications between transportation service providers and
gas-fired power plants. The standards include requirements for
communicating anticipated power generation fuel for the upcoming day as
well as any operating problems that might hinder gas-fired power plants
from receiving contractual gas quantities.
61. The WEQ-012 Public Key Infrastructure (PKI) Business Practice
Standards establish the cybersecurity framework for parties partaking
in transactions via a transmission provider's OASIS or e-Tagging
system. The NAESB PKI framework secures wholesale electric market
electronic commercial communications via encryption of data and the
electronic authentication of parties to a transaction using a digital
certificate issued by a NAESB certified certificate authority. The
standards define the requirements for parties utilizing the digital
certificates issued by the NAESB certificate authorities.
62. The WEQ-013 OASIS Implementation Guide Business Practice
Standards detail the implementation of the OASIS Business Practice
Standards. The standards detail requirements related to point-to-point
OASIS transaction processing, OASIS template implementation, preemption
and right-of-first-refusal processing, NITS application and
modification of service processing, and secondary network transmission
service.
63. The WEQ-015 Measurement and Verification of Wholesale
Electricity Demand Response Business Practice Standards define a common
framework for transparency, consistency, and accountability applicable
to the measurement and verification of wholesale electric market demand
response practices. The standards describe performance evaluation
methodology and criteria for the use of equipment, technology, and
procedures to quantify the demand reduction value--the measurement of
reduced electrical usage by a demand resource.
64. The WEQ-021 Measurement and Verification of Energy Efficiency
Products Business Practice Standards define a common framework for
transparency, consistency, and accountability applicable to the
measurement and verification of wholesale electric market energy
efficiency practices. The standards establish energy efficiency
measurement and verification criteria and define requirements for
energy efficiency resource providers for the measurement and
verification of energy efficiency products and services offered in the
wholesale electric markets.
65. The WEQ-022 EIR Business Practice Standards define the business
requirements for entities utilizing the NAESB managed EIR, a wholesale
electric industry tool that serves as the central repository for
information needed in the scheduling of transmission through electronic
transactions. The standards describe the roles within EIR, registration
requirements, and cybersecurity.
66. The WEQ-023 Modeling Business Practice Standards provide
technical details concerning the calculation of ATC for wholesale
electric transmission services. The WEQ-023 standards are intended to
address the aspects of certain of the NERC MOD A Reliability Standards
relating to modeling, data, and analysis that are included in NERC's
proposed retirement of its MOD A Reliability Standards.
67. The WEQ-024 Cybersecurity Business Practice Standards is a new
suite to include and maintain all cybersecurity related requirements
not included within the PKI business standards to be incorporated
within this
[[Page 37155]]
single suite to better facilitate the incorporation by reference
process.\31\
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\31\ Informational Report at 21.
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68. The following standards are listed for informational purposes
as non-mandatory guidance:
69. WEQ-016, Specifications for Common Electricity Product and
Pricing Definition standards address the business objectives and
context for capturing the attributes associated with electricity price
and product signals as part of the Smart Grid implementation, which is
called for by NIST standards.
70. WEQ-017, Specifications for Common Schedule Communication
Mechanism standards contain a set of specifications relating to the use
of date and time based data elements that are commonly used in
transactions for Demand Response programs.
71. WEQ-018, Specifications for Wholesale Standard Demand Response
Signals standards address the business objectives and context for
standardizing signals for demand response and distributed energy
resources as part of the Smart Grid implementation, which is called for
by NIST standards.
72. WEQ-019, Customer Energy Usage Information Communication
standards establish the Business Practice Standards for end-use energy
usage information communication.
73. WEQ-020, Smart Grid Standards Data Element Table standards
contain the list of data elements used in Business Practice Standards
WEQ-016 and WEQ-018.
74. Commission regulations provide that copies of the standards
incorporated by reference may be obtained through purchase or otherwise
from the North American Energy Standards Board, 801 Travis Street,
Suite 1675, Houston, TX 77002, Phone: (713) 356-0060, website: http://www.naesb.org/. The standards can also be reviewed without purchasing
them.
75. The procedures used by NAESB make its standards reasonably
available to those affected by Commission regulations, which generally
is comprised of entities that have the means to acquire the information
they need to effectively participate in Commission proceedings.
Participants can join NAESB, for an annual membership cost of $8,000,
which entitles them to full participation in NAESB and enables them to
obtain these standards at no additional cost. Non-members may obtain
any of the individual WEQ standards manuals for $250 per manual. Non-
members also may obtain the complete set of Standards Manuals for
$2,000.
76. NAESB provides ample opportunities for non-members, including
agents, subsidiaries, and affiliates of NAESB members, to obtain access
to the copyrighted standards through a no-cost limited copyright
waiver. The limited copyright waivers are issued by the NAESB office
and are granted to non-members on a case-by-case basis for the purpose
of evaluating standards prior to purchase and/or reviewing the
standards to prepare comments to a regulatory agency. Following the
granting of a limited copyright waiver, the non-member is provided with
read-only access to the standards through the end of the comment period
or some other set period of time via Locklizard Safeguard Secure
Viewer.\32\ NAESB will grant one limited copyright wavier per company
for each set of standards or final actions. Any entity seeking a
limited copyright waiver should contact the NAESB office.
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\32\ For more information on Locklizard, please refer to the
company's website: https://www.locklizard.com.
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VI. Information Collection Statement
77. The following collection of information contained in this
proposed rule is subject to review by the Office of Management and
Budget (OMB) under section 3507(d) of the Paperwork Reduction Act of
1995, 44 U.S.C. 3507(d).\33\ OMB's regulations require approval of
certain information collection requirements imposed by agency
rules.\34\ Upon approval of a collection(s) of information, OMB will
assign an OMB control number and an expiration date. Respondents
subject to the filing requirements of this rule will not be penalized
for failing to respond to these collections of information unless the
collections of information display a valid OMB control number.
---------------------------------------------------------------------------
\33\ 44 U.S.C. 3507(d).
\34\ 5 CFR 1320.11.
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78. The Commission solicits comments on the Commission's need for
this information, whether the information will have practical utility,
the accuracy of the provided burden estimates, ways to enhance the
quality, utility, and clarity of the information to be collected, and
any suggested methods for minimizing respondents' burden, including the
use of automated information techniques.
79. The following burden estimate is based on the projected costs
for the industry to implement the new and revised business practice
standards adopted by NAESB and proposed to be incorporated by reference
in this NOPR.\35\ The NERC Compliance Registry, as of December 2023,
identifies approximately 216 entities in the United States that are
subject to this proposed rulemaking.
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\35\ Commission staff estimates that industry is similarly
situated in terms of hourly cost (wages plus benefits). Based on the
Commission average cost (wages plus benefits) for 2024, $100.00/hour
is used.
Docket Nos. RM05-5-031
--------------------------------------------------------------------------------------------------------------------------------------------------------
Annual number
Number of of responses Total number of Average burden (hrs.) & cost Total annual burden hrs. & total
respondents per respondent responses ($) per response annual cost ($)
(1) (2) (1) * (2) = (3) (4)......................... (3) * (4) = (5)
--------------------------------------------------------------------------------------------------------------------------------------------------------
FERC-516E......................... 216 1 216 6 hrs.; $600................ 1,296 hrs.; $129,600.
FERC-717.......................... 216 1 216 30 hrs.; $3,000............. 6,480 hrs.; $648,000.
---------------------------------------------------------------------------------------------------------------------
Total......................... .............. ............... ................. $3,600...................... 7,776 hrs.; $777,600.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Costs To Comply With Paperwork Requirements
The estimated annual costs are as follows:
FERC-516E: 216 entities x 1 response/entity x (6 hours/response x
$100.00/hour) = $129,600
FERC-717: 216 entities x 1 response/entity x (30 hours/response x
$100.00/hour) = $648,000
Titles: FERC-516E, Electric Rate Schedule and Tariff Filings and
FERC-717, Standards for Business Practices and Communication Protocols
for Public Utilities.
[[Page 37156]]
Action: Proposed amendment to regulations pertaining to the
existing collections of information FERC-516E and FERC-717.
OMB Control Nos: 1902-0290 (FERC-516E) and 1902-0173 (FERC-717).
Respondents: Business or other for-profit, and not-for-profit
institutions.
Frequency of Responses: On occasion.
Necessity of the Information: This proposed rule, if implemented,
will amend the Commission's regulations to incorporate by reference,
with certain enumerated exceptions, the NAESB WEQ Version 004
Standards. The standards include those that were developed in
accordance with recommendations of the DOE-sponsored cybersecurity
surety assessment of the NAESB Business Practice Standards that was
conducted in 2019. Additional standards were developed in response to
the directives from Order Nos. 676-I and 676-J. NAESB undertook two
standards development efforts to update the WEQ-004 Coordinate
Interchange Standards in the WEQ Version 004 Standards publication. The
first set of modifications clarify existing back-up procedures for e-
Tagging, improve efficiencies by removing requirements that supported
outdated methods of communication, and streamline the processes
following system communication failures. Through the second effort,
NAESB modified WEQ-004 to provide guidance to balancing authorities in
the Eastern Interconnection seeking to automate their net scheduled
interchange checkout process. The revisions made by NAESB in the WEQ
Version 004 Standards are designed to aid public utilities with the
consistent and uniform implementation of requirements promulgated by
the Commission as part of the pro forma Open Access Transmission
Tariff.
Internal review: The Commission has reviewed NAESB's proposal and
has made a preliminary determination that the Version 004 standards the
Commission proposes to adopt by reference are both necessary and
useful. In addition, the Commission has determined through internal
review that there is specific, objective support for the burden
estimates associated with the information requirements.
80. 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: Kayla Williams, email: [email protected], phone:
(202) 502-8663].
81. Comments concerning the information collections proposed in
this NOPR and the associated burden estimates should be sent to the
Commission at this docket and be emailed 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 refer to
the appropriate docket number of this notice of proposed rulemaking,
Docket No. RM05-5-031, and OMB Control Nos. 1902-0290 (FERC-516E) and
1902-0173 (FERC-717), in your submission.
VII. Environmental Analysis
82. 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.\36\ The
actions proposed here fall within categorical exclusions in the
Commission's regulations for rules that are clarifying, corrective, or
procedural, for information gathering, analysis, and dissemination, and
for sales, exchange, and transportation of electric power that requires
no construction of facilities.\37\ Therefore, an Environmental
Assessment is unnecessary and has not been prepared for this NOPR.
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\36\ Reguls Implementing the Nat'l Envt'l Pol'y Act, Order No.
486, 52 FR 47897 (Dec. 17, 1987), FERC Stats. & Regs. ] 30,783
(1987) (cross-referenced at 41 FERC ] 61,284).
\37\ See 18 CFR 380.4(a)(2)(ii), 380.4(a)(5), 380.4(a)(27)
(2022).
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VIII. Regulatory Flexibility Act
83. The Regulatory Flexibility Act of 1980 (RFA) \38\ generally
requires a description and analysis of proposed rules that will have
significant economic impact on a substantial number of small entities.
The Commission is not required to make such an analysis if proposed
regulations would not have such an effect.
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\38\ 5 U.S.C. 601-612.
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84. The Small Business Administration (SBA) revised its size
standards (effective January 22, 2014) for electric utilities from a
standard based on megawatt hours to a standard based on the number of
employees, including affiliates. Under SBA's standards, some
transmission owners will fall under the following category and
associated size threshold: electric bulk power transmission and
control, at least 500 employees.\39\ The Commission estimates that 24
of the 216 respondents, or 11% of the respondents affected by this
NOPR, are small businesses under SBA standards.
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\39\ 13 CFR 121.201, Sector 22 (Utilities), NAICS code 221121
(Electric Bulk Power Transmission and Control).
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85. The Commission estimates that the impact on these entities is
consistent with the paperwork burden of $3,600 per entity used
above.\40\ The Commission does not consider $3,600 to be a significant
economic impact. Based on the above, the Commission certifies that
implementation of the proposed Business Practice Standards will not
have a significant impact on a substantial number of small entities.
Moreover, these requirements are designed to benefit all customers,
including small businesses that must comply with them. Further, as
noted above, adoption of consensus standards helps ensure the
reasonableness of the standards by requiring that the standards draw
support from a broad spectrum of industry participants representing all
segments of the industry. Because of that representation and the fact
that industry conducts business under these standards, the Commission's
regulations should reflect those standards that have the widest
possible support.
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\40\ 36 hours at $100.00/hour = $3,600.
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86. Accordingly, pursuant to section 605(b) of the RFA,\41\ the
regulations proposed herein should not have a significant economic
impact on a substantial number of small entities.
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\41\ 5 U.S.C. 605(b).
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IX. Comment Procedures
87. 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 July 5, 2024. Comments must refer to
Docket No. RM05-5-031, and must include the commenter's name, the
organization they represent, if applicable, and their address in their
comments. 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.
88. The Commission encourages comments to be filed electronically
via the eFiling link on the Commission's website at https://www.ferc.gov. The
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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.
89. Commenters that are not able to file comments electronically
may file an original of their comment by USPS mail or by courier or
other delivery services. For submission sent via USPS only, filings
should be mailed to: Federal Energy Regulatory Commission, Office of
the Secretary, 888 First Street NE, Washington, DC 20426. Submission of
filings other than by USPS should be delivered to: Federal Energy
Regulatory Commission, 12225 Wilkins Avenue, Rockville, MD 20852.
X. Document Availability
90. 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).
91. 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.
92. User assistance is available for eLibrary and the Commission's
website 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].
List of Subjects
18 CFR Part 2
Electric utilities, Natural gas, Pipelines, Reporting and
recordkeeping requirements.
18 CFR Part 38
Conflicts of interest, Electric power plants, Electric utilities,
Incorporation by reference, reporting and recordkeeping requirements.
By direction of the Commission.
(S E A L)
Issued: April 25, 2024.
Debbie-Anne A. Reese,
Acting Secretary.
In consideration of the foregoing, the Commission proposes to
amends part 2 and part 38, chapter I, title 18, Code of Federal
Regulations, as follows:
PART 2--GENERAL POLICY AND INTERPRETATIONS
0
1. The authority citation for Part 2 continues to read as follows:
Authority: 5 U.S.C. 601; 15 U.S.C. 717-717z, 3301-3432; 16
U.S.C. 792-828c, 2601-2645; 42 U.S.C. 4321-4370h, 7101-7352.
0
2. Revise and republish Sec. 2.27 to read as follows:
Sec. 2.27 Availability of North American Energy Standards Board
(NAESB) Smart Grid Standards as non-mandatory guidance.
The Commission informationally lists the following NAESB Business
Practices Standards as non-mandatory guidance:
(a) WEQ-016, Specifications for Common Electricity Product and
Pricing Definition, (WEQ Version 004, July 31, 2023);
(b) WEQ-017, Specifications for Common Schedule Communication
Mechanism for Energy Transactions (WEQ Version 004, July 31, 2023;
(c) WEQ-018, Specifications for Wholesale Standard Demand Response
Signals (WEQ Version 004, July 31, 2023;
(d) WEQ-019, Customer Energy Usage Information Communication (WEQ
Version 004, July 31, 2023); and
(e) WEQ-020, Smart Grid Standards Data Element Table (WEQ Version
004, July 31, 2023).
(f) Copies of these standards may be obtained from the North
American Energy Standards Board, 801 Travis Street, Suite 1675,
Houston, TX 77002, Phone: (713) 356-0060; https://www.naesb.org/.
Copies may also be obtained from the Federal Energy Regulatory
Commission's website, https://www.ferc.gov.
PART 38--STANDARDS FOR PUBLIC UTILITY BUSINESS OPERATIONS AND
COMMUNICATIONS
0
3. The authority citation for Part 38 continues to read as follows:
Authority: 16 U.S.C. 791-825r, 2601-2645; 31 U.S.C. 9701; 42
U.S.C. 7101-7352.
0
4. Amend Sec. 38.1 by revising paragraphs (b)(1) through (17) to read
as follows:
Sec. 38.1 Incorporation by reference of North American Energy
Standards Board Wholesale Electric Quadrant standards.
* * * * *
(b) * * *
(1) WEQ-000, Abbreviations, Acronyms, and Definition of Terms
(Version 004, July 31, 2023);
(2) WEQ-001, Open Access Same-Time Information Systems (OASIS) (WEQ
Version 004, July 31, 2023);
(3) WEQ-002, Open Access Same-Time Information Systems (OASIS)
Business Practice Standards and Communication Protocol (S&CP) (WEQ
Version 004, July 31, 2023);
(4) WEQ-003, Open Access Same-Time Information Systems (OASIS) Data
Dictionary (WEQ Version 004, July 31, 2023);
(5) WEQ-004, Coordinate Interchange (WEQ Version 004, July 31,
2023);
(6) WEQ-005, Area Control Error (ACE) Equation Special Cases (WEQ
Version 004, July 31, 2023);
(7) WEQ-006, Manual Time Error Correction (WEQ Version 004, July
31, 2023);
(8) WEQ-007 Inadvertent Interchange Payback (WEQ Version 004, July
31, 2023);
(9) WEQ-008, Transmission Loading Relief (TLR)--Eastern
Interconnection (WEQ Version 004, July 31, 2023);
(10) WEQ-011, Gas/Electric Coordination (WEQ Version 004, July 31,
2023);
(11) WEQ-012, Public Key Infrastructure (PKI) (WEQ Version 004,
July 31, 2023);
(12) WEQ-013, Open Access Same-Time Information Systems (OASIS)
Implementation Guide (WEQ Version 004, July 31, 2023);
(13) WEQ-015, Measurement and Verification of Wholesale Electricity
Demand Response (WEQ Version 004, July 31, 2023);
(14) WEQ-021, Measurement and Verification of Energy Efficiency
Products (WEQ Version 004, July 31, 2023);
(15) WEQ-022, Electric Industry Registry (EIR) (WEQ Version 004,
July 31, 2023);
(16) WEQ-023, Modeling (WEQ Version 004, July 31, 2023);
(17) WEQ-024, Cybersecurity (Version 004, July 31, 2023).
[FR Doc. 2024-09438 Filed 5-3-24; 8:45 am]
BILLING CODE 6717-01-P