[Federal Register Volume 89, Number 129 (Friday, July 5, 2024)]
[Proposed Rules]
[Pages 55529-55530]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-14667]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

18 CFR Part 39

[Docket No. RM21-12-000]


Electric Reliability Organization Performance Assessments; 
Withdrawal

AGENCY: Federal Energy Regulatory Commission.

ACTION: Withdrawal of notice of proposed rulemaking and termination of 
rulemaking proceeding.

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SUMMARY: The Federal Energy Regulatory Commission (Commission) is 
withdrawing a notice of proposed rulemaking, which proposed to amend 
its regulations pursuant to section 215 of the Federal Power Act to 
require the Commission-certified Electric Reliability Organization 
(ERO) to submit performance assessments every three years; to include 
in its performance assessment a detailed discussion of any areas of the 
ERO's responsibilities and activities, or a Regional Entity's delegated 
functions, beyond those required by the Commission's regulations, that 
the Commission has identified at least 90 days prior to the expected 
performance assessment submission date; and to formalize the method for 
the ERO and Regional Entities to receive and respond to recommendations 
by the users, owners, and operators of the Bulk-Power System, and other 
interested parties for improvement of the ERO's operations, activities, 
oversight, and procedures.

DATES: The notice of proposed rulemaking published in the Federal 
Register at 86 FR 7518 on January 29, 2021, is withdrawn as of July 5, 
2024.

FOR FURTHER INFORMATION CONTACT: 
Michael Gildea (Technical Information), Office of Electric Reliability, 
Federal Energy Regulatory Commission, 888 First Street NE, Washington, 
DC 20426, (202) 502-8420, [email protected]
Leigh Anne Faugust (Legal Information), Office of the General Counsel, 
Federal Energy Regulatory Commission, 888 First Street NE, Washington, 
DC 20426, (202) 502-6396, [email protected]

SUPPLEMENTARY INFORMATION:

Withdrawal of Notice of Proposed Rulemaking and Termination of 
Rulemaking Proceeding

    1. On January 19, 2021, the Commission issued a notice of proposed 
rulemaking (NOPR) proposing to revise its regulations regarding the 
Electric Reliability Organization's (ERO) performance assessments 
pursuant to section 215 of the Federal Power Act (FPA).\1\ The 
Commission received seven comments in response to the NOPR.\2\ After 
reviewing the comments received, the Commission has decided to retain 
its existing regulations regarding the ERO's performance assessments. 
For the reasons set forth below, we are exercising our discretion to 
withdraw the NOPR and terminate this rulemaking proceeding.
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    \1\ Revisions to Regulations on Elec. Reliability Org. 
Performance Assessments, Notice of Proposed Rulemaking, 86 FR 7518 
(Jan. 29, 2021), 174 FERC ] 61,031 (2021).
    \2\ The North American Electric Reliability Corporation (NERC) 
and Regional Entities, jointly; the Western Interconnection Regional 
Advisory Body (WIRAB); the ISO/RTO Council; the American Public 
Power Association, Edison Electric Institute, Electric Power Supply 
Association, the Large Public Power Council, National Rural Electric 
Cooperative Association, and Transmission Access Policy Study Group, 
jointly (Joint Trade Associations); Public Citizen, Inc. (Public 
Citizen); and the Foundation for Resilient Societies (Resilient 
Societies).
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I. Background

A. Commission Regulations on the ERO Performance Assessment

    2. Section 215 of the FPA requires the Commission to issue 
regulations that, among other things, provide for the certification of 
an entity as the ERO if it meets certain criteria.\3\ On February 3, 
2006, the Commission issued Order No. 672, which amended the 
Commission's regulations to implement the requirements of FPA section 
215.\4\ The specific requirements for the ERO performance assessments 
are set out in the Commission's regulations in Sec.  39.3(c).\5\ On 
July 20, 2006, the Commission certified NERC as the ERO.\6\
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    \3\ 16 U.S.C. 824o.
    \4\ Rules Concerning Certification of the Elec. Reliability 
Org.; and Procedures for the Establishment, Approval, and 
Enforcement of Elec. Reliability Standards, Order No. 672, 71 FR 
8662 (Feb. 17, 2006), 114 FERC ] 61,104, at P 186, order on reh'g, 
Order No. 672-A, 114 FERC ] 61,328 (2006).
    \5\ 18 CFR 39.3(c) (2023).
    \6\ N. Am. Elec. Reliability Corp., 116 FERC ] 61,062, order on 
reh'g and compliance, 117 FERC ] 61,126 (2006), aff'd sub nom. Alcoa 
Inc. v. FERC, 564 F.3d 1342 (D.C. Cir. 2009) (ERO Certification 
Order) (certifying NERC as the ERO responsible for the development 
and enforcement of mandatory Reliability Standards).
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B. NOPR

    3. In its NOPR, the Commission proposed to amend its regulations 
regarding the ERO performance assessments. First, the Commission 
proposed to require the ERO to submit assessments of its performance 
every three years instead of every five years. Second, the Commission 
proposed to add a requirement for the ERO to include in its performance 
assessment a detailed discussion of any areas of the ERO's 
responsibilities and activities, or a Regional Entity's delegated 
functions, beyond those required by the Commission's regulations, that 
the Commission has identified at least 90 days prior to the expected 
performance assessment submission date. Finally, the Commission 
proposed to formalize the method for the ERO and Regional Entities to 
receive and respond to recommendations by the users, owners, and 
operators of the Bulk-Power System, and other interested parties for 
improvement of the ERO's operations, activities, oversight, and 
procedures.
    4. The Commission explained in the NOPR that it believed that the 
proposals would provide better continuity in its review of the ERO's 
operations, activities, oversight, procedures, and evaluation of the 
effectiveness of each Regional Entity in the performance of delegated 
functions. Further, the Commission explained that shorter performance 
assessment cycles could provide an opportunity for timelier 
identification and implementation of potential improvements to ERO 
performance and improve the efficiency of the overall performance 
assessment process.\7\
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    \7\ NOPR, 174 FERC ] 61,031 at P 1.
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    5. Notice of the NOPR was published in the Federal Register, 86 FR 
7518 (Jan. 29, 2021), with comments due by March 1, 2021.

C. Comments

    6. In their joint comments, NERC and the Regional Entities oppose 
all proposed modifications. They assert that the proposed changes would 
place undue burden on ERO staff by directing their focus away from key 
activities that ``would outweigh any potential benefits.'' \8\ They 
explain that the existing five-year performance assessment cycle 
provides ``greater opportunity to demonstrate evolution of

[[Page 55530]]

the ERO than a three-year cycle'' \9\ and allows NERC initiatives to 
come to fruition and be evaluated.\10\ NERC and the Regional Entities 
explain that, due to the time it takes to coordinate with the Regional 
Entities, incorporate stakeholder feedback, present the draft to the 
NERC Board of Trustees for approval, and meet with Commission staff on 
specific questions, a three-year cycle would mean the process would 
begin two years after the prior assessment ends.\11\
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    \8\ NERC and Regional Entities Joint Comments at 2.
    \9\ Id. at 6.
    \10\ Id. at 8.
    \11\ Id. at 11.
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    7. Regarding the proposed 90-day advance notice of Commission 
requested information, NERC and the Regional Entities believe that the 
NOPR proposal does not consider ``numerous, existing opportunities for 
coordination and timely feedback from industry, FERC Commissioners, and 
Commission staff.'' \12\ They re-affirm their commitment to the 
existing oversight process to provide the Commission with ``all 
information necessary for [the Commission's] evaluation'' of the ERO's 
ongoing compliance with its certification criteria through the 
performance assessments.\13\
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    \12\ Id. (referencing NERC and Regional Entities Joint Comments, 
App. A listing such opportunities (e.g., board meetings, stakeholder 
meetings, and technical and Reliability Standards working groups)).
    \13\ Id. at 2.
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    8. Finally, NERC and the Regional Entities oppose a formal 
solicitation of stakeholder feedback and recommendations. They say they 
already provide ``extensive opportunities for stakeholder feedback on 
ERO operations, activities, oversight, and procedures, including areas 
for improvement.'' \14\ NERC and the Regional Entities explain that 
they solicit public comment on the draft performance assessment two to 
three months prior to its filing--asserting that the draft performance 
assessment is the ``best vehicle to solicit comments . . . because such 
a posting ensures that comments are grounded in specific activities and 
issues material to ERO certification and effectiveness.'' \15\
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    \14\ Id. at 13.
    \15\ Id. at 14.
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    9. WIRAB, Joint Trade Associations, Public Citizen, and Resilient 
Societies support the proposed changes to the Commission's 
regulations.\16\ The ISO/RTO Council supports the formal solicitation 
of public feedback.\17\ Commenters generally agree that the proposed 
changes would support the early identification of emerging trends, 
challenges, and opportunities regarding the ERO's assurance of Bulk-
Power System reliability and allow necessary changes to be made in a 
timelier manner.\18\
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    \16\ See WIRAB Comments at 3; Joint Trade Associations Comments 
at 3-4; Public Citizen Comments at 2-3; and Resilient Societies 
Comments at 1.
    \17\ ISO/RTO Council Comments at 2.
    \18\ See, e.g., WIRAB Comments at 3; Resilient Societies 
Comments at 4-5; Joint Trade Associations Comments at 3-4.
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II. Discussion

    10. The Commission withdraws the NOPR and terminates this 
proceeding. We appreciate the feedback that the Commission received in 
response to the NOPR. Considering NERC and the Regional Entities' 
concerns regarding the scope and implementation of the proposal and the 
increased burden on the ERO, that NERC will need to expend significant 
resources to address multiple Commission directives, and that the 
Commission will need to expend significant resources considering those 
responsive proposals,\19\ we do not believe that modifying the 
periodicity or procedural requirements for the ERO performance 
assessments is an efficient use of ERO or Commission resources.
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    \19\ See, e.g., Reliability Standards to Address Inverter-Based 
Resources, Order No. 901, 88 FR 74250 (Oct. 30, 2023), 185 FERC ] 
61,042 (2023), (directing revisions to Reliability Standards for 
inverter-based resources); Transmission Sys. Planning Performance 
Requirements for Extreme Weather, Order No. 896, 88 FR 41262 (June 
23, 2023), 183 FERC ] 61,191 (2023) (directing revisions to 
Reliability Standards for transmission system planning); N. Am. 
Elec. Reliability Corp., 187 FERC ] 61,196 (2024) (directing 
revisions to Reliability Standards to address generator cold weather 
preparedness).
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    11. Therefore, we exercise our discretion to withdraw the NOPR and 
terminate this rulemaking proceeding.\20\
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    \20\ See, e.g., Revised Public Utility Filing Requirements for 
Elec. Quarterly Reports,169 FERC ] 61,236 (2019) (order withdrawing 
NOPR and terminating rulemaking proceeding); see also, e.g., Fast-
Start Pricing in Markets Operated by Reg'l Transmission Org. and 
Indep. Sys. Operators, 161 FERC ] 61,293 (2017) (order withdrawing 
NOPR and terminating rulemaking proceeding).
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    The Commission orders: The NOPR is hereby withdrawn and Docket No. 
RM21-12-000 is hereby terminated.

    By the Commission. Commissioner Rosner is not participating.

    Issued: June 27, 2024.
Debbie-Anne A. Reese,
Acting Secretary.
[FR Doc. 2024-14667 Filed 7-3-24; 8:45 am]
BILLING CODE 6717-01-P