Real Power Balancing Control Performance Reliability Standard, 70483-70488 [2014-27949]
Download as PDF
<![CDATA[
Federal Register / Vol. 79, No. 228 / Wednesday, November 26, 2014 / Proposed Rules
§ 71.1
[Amended]
2. The incorporation by reference in
14 CFR 71.1 of FAA Order 7400.9Y,
Airspace Designations and Reporting
Points, dated August 6, 2014 and
effective September 15, 2014, is
amended as follows:
■
Paragraph 6005 Class E Airspace Areas
Extending Upward From 700 Feet or More
Above the Surface of the Earth.
*
*
*
*
*
ASW TX E5 Sonora, TX [New]
JL Bar Ranch Airport, TX
(Lat. 30°34′06″ N., long. 100°26′39″ W.)
That airspace extending upward from 700
feet above the surface within a 6.5-mile
radius of JL Bar Ranch Airport.
Issued in Fort Worth, TX, on November 13,
2014.
Robert W. Beck,
Manager, Operations Support Group, ATO
Central Service Center.
[FR Doc. 2014–27973 Filed 11–25–14; 8:45 am]
BILLING CODE 4901–14–P
DEPARTMENT OF ENERGY
Federal Energy Regulatory
Commission
18 CFR Part 40
[Docket No. RM14–10–000]
Real Power Balancing Control
Performance Reliability Standard
Federal Energy Regulatory
Commission, DOE.
ACTION: Notice of proposed rulemaking.
AGENCY:
The Federal Energy
Regulatory Commission proposes to
approve Reliability Standard BAL–001–
2 (Real Power Balancing Control
Performance) and proposed new
definitions submitted by the North
American Electric Reliability
Corporation (NERC). The proposed
Reliability Standard is designed to
ensure that applicable entities maintain
system frequency within narrow bounds
around a scheduled value. In addition,
the Commission proposes that NERC
submit an informational filing that
would address the impact of the
proposed Reliability Standard on
inadvertent interchange and
unscheduled power flows.
DATES: Comments are due January 26,
2015.
ADDRESSES: Comments, identified by
docket number, may be filed in the
following ways:
• Electronic Filing through https://
www.ferc.gov. Documents created
electronically using word processing
mstockstill on DSK4VPTVN1PROD with PROPOSALS
SUMMARY:
VerDate Sep<11>2014
16:55 Nov 25, 2014
Jkt 235001
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 handdeliver 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:
Enakpodia Agbedia (Technical
Information), Office of Electric
Reliability, Division of Reliability
Standards, Federal Energy Regulatory
Commission, 888 First Street NE.,
Washington, DC 20426, Telephone:
(202) 502–6750, Enakpodia.Agbedia@
ferc.gov.
Mark Bennett (Legal Information), Office
of the General Counsel, Federal
Energy Regulatory Commission, 888
First Street NE., Washington, DC
20426, Telephone: (202) 502–8524,
Mark.Bennett@ferc.gov.
SUPPLEMENTARY INFORMATION:
1. Under section 215 of the Federal
Power Act (FPA),1 the Commission
proposes to approve Reliability
Standard BAL–001–2 (Real Power
Balancing Control Performance) that the
North American Electric Reliability
Corporation (NERC), the Commissioncertified Electric Reliability
Organization (ERO), submitted for
approval. The proposed Reliability
Standard applies to balancing
authorities and regulation reserve
sharing groups, and is designed to
maintain Interconnection frequency
within predefined frequency limits. The
Commission also proposes to approve
the retirement of currently-effective
Reliability Standard BAL–001–1
immediately prior to the effective date
of BAL–001–2.
2. Further, the Commission proposes
to approve NERC’s four proposed
definitions, associated violation risk
factors and violation severity levels,
implementation plan, and effective
dates. The Commission also proposes
that NERC submit an informational
filing that would address the impact of
the proposed Reliability Standard on
inadvertent interchange 2 and
unscheduled power flows.3
1 16
U.S.C. 824(o) (2012).
defines ‘‘Inadvertent Interchange’’ in the
NERC Glossary of Terms Used in Reliability
Standards (Glossary) as ‘‘[t]he difference between
the Balancing Authority’s Net Actual Interchange
and Net Scheduled Interchange. (IA ¥ IS)’’
3 ‘‘Unscheduled power flows’’ generally refers to
the power flows that result from the law of physics
2 NERC
PO 00000
Frm 00010
Fmt 4702
Sfmt 4702
70483
I. Background
A. Mandatory Reliability Standards and
Order No. 693 Directive
3. Section 215 of the FPA requires a
Commission-certified Electric
Reliability Organization (ERO) to
develop mandatory and enforceable
Reliability Standards that are subject to
Commission review and approval.
Specifically, the Commission may
approve, by rule or order, a proposed
Reliability Standard or modification to a
Reliability Standard if it determines that
the Standard is just, reasonable, not
unduly discriminatory or preferential
and in the public interest.4 Once
approved, the Reliability Standards may
be enforced by NERC, subject to
Commission oversight, or by the
Commission independently.5
4. Pursuant to section 215 of the FPA,
the Commission established a process to
select and certify an ERO,6 and
subsequently certified NERC.7 On
March 16, 2007, the Commission issued
Order No. 693, approving 83 of the 107
Reliability Standards filed by NERC,
including BAL–001–0 and a companion
standard BAL–002–0.8 When approving
BAL–002–0, the Commission directed
NERC ‘‘to modify this Reliability
Standard to define a significant
deviation and a reportable event, taking
into account all events that have an
impact on frequency, e.g., loss of
supply, loss of load and significant
scheduling problems, which can cause
frequency disturbances and to address
how balancing authorities should
respond.’’ 9
B. Proposed Reliability Standard
BAL–001–2
5. On April 2, 2014, NERC filed a
petition (Petition) seeking approval of
proposed Reliability Standard BAL–
001–2, four new definitions to be added
to the Glossary of Terms used in NERC
Reliability Standards (NERC Glossary of
that causes power from a given source to flow over
all possible paths to its destination.
4 16 U.S.C. 824o(d)(2).
5 16 U.S.C. 824o(e).
6 Rules Concerning Certification of the Electric
Reliability Organization; and Procedures for the
Establishment, Approval, and Enforcement of
Electric Reliability Standards, Order No. 672, FERC
Stats. & Regs. ¶ 31,204, order on reh’g, Order No.
672–A, FERC Stats. & Regs. ¶ 31,212 (2006).
7 North American Electric 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).
8 Mandatory Reliability Standards for the BulkPower System, Order No. 693, FERC Stats. & Regs.
¶ 31,242, order on reh’g, Order No. 693–A, 120
FERC ¶ 61,053 (2007). The Commission approved
Reliability Standard BAL–001–1 in an unpublished
letter order, October 16, 2013 in Docket No. RD13–
11–000.
9 Id. P 355.
E:\FR\FM\26NOP1.SGM
26NOP1
70484
Federal Register / Vol. 79, No. 228 / Wednesday, November 26, 2014 / Proposed Rules
mstockstill on DSK4VPTVN1PROD with PROPOSALS
Terms) and the associated violation risk
factors and violation severity levels,
effective dates, and implementation
plan.10 NERC states that the proposed
Reliability Standard is just, reasonable,
not unduly discriminatory or
preferential, and in the public interest
because it satisfies the factors set forth
in Order No. 672, which the
Commission applies when reviewing a
proposed Reliability Standard.11 Also,
NERC asserts that proposed Reliability
Standard BAL–001–2 addresses the
Commission’s Order No. 693 directive
pertaining to BAL–002–0.
6. NERC proposes to revise Reliability
Standard BAL–001–2 by replacing the
Control Performance Standard 2 (CPS2)
in currently-effective Requirement R2
with a new term, ‘‘Balancing Authority
ACE Limit (BAAL).’’ 12 The Balancing
Authority ACE Limit, unique for each
balancing authority, contains dynamic
limits as a function of Interconnection
frequency and provides the basis for a
balancing authority’s obligation to
balance its resources and demand in
real-time so that its clock-minute
average ACE does not exceed its
Balancing Authority ACE Limit for more
than 30 consecutive clock-minutes.13
7. Proposed Reliability Standard
BAL–001–2 has two requirements and
two attachments containing the
mathematical equations for calculating
the Control Performance Standard 1
(CPS1) in Requirement R1,14 the
Balancing Authority ACE Limit in
Requirement R2, and associated
measures. NERC states that the only
proposed change to Requirement R1 is
to move the equation and explanation of
the individual components of CPS1 to
Attachment 1. NERC explains that the
proposed revisions to Requirement R1
‘‘are administratively efficient and
clarify the intent of the Requirement.’’ 15
NERC states that the ‘‘underlying
performance aspect’’ of Requirement R1
remains the same: ‘‘to measure how well
a Balancing Authority is able to control
its generation and load management
10 Proposed Reliability Standard BAL–001–2 is
available on the Commission’s eLibrary document
retrieval system in Docket No. RM14–10–000 and
on the NERC Web site, www.nerc.com.
11 NERC Petition at 6 and Exhibit C (citing Order
No. 672, FERC Stats. & Regs. ¶ 31,204 at PP 323–
335, 444).
12 Area Control Error (ACE) is the instantaneous
difference between a Balancing Authority’s Net
Actual and Scheduled Interchange, taking into
accounts the effects of Frequency Bias, correction
for meter error, and Automatic Time Error
Correction, if operating in that mode.
13 NERC Petition at 12.
14 The ‘‘Responsible Entity’’ designated in
proposed Reliability Standard BAL–001–2
Requirement R1 is the balancing authority and/or
regulation reserve sharing groups.
15 NERC Petition at 11.
VerDate Sep<11>2014
16:55 Nov 25, 2014
Jkt 235001
programs, as measured by its ACE, to
support its Interconnection’s frequency
over a rolling one-year period.’’ 16
8. Proposed Requirement R2 is new
and replaces the existing Control
Performance Standard 2 requirement.
The current Reliability Standard BAL–
001–1 Requirement R2 requires each
balancing authority to operate such that
for at least 90 percent of the ten-minute
periods in a calendar month (using six
non-overlapping periods per hour), the
average area control error (ACE) must be
within a specific limit, referred to as
L10.17
9. Requirement R2 of the proposed
Reliability Standard BAL–001–2 states:
Balancing Authority shall operate such that
its clock-minute average of Reporting ACE
does not exceed its clock-minute Balancing
Authority ACE Limit (BAAL) for more than
30 consecutive clock-minutes, calculated in
accordance with Attachment 2, for the
applicable Interconnection in which the
Balancing Authority operates.
10. NERC explains that the Balancing
Authority ACE Limits are unique for
each balancing authority and provide
dynamic limits for the balancing
authority’s ACE value as a function of
its Interconnection frequency.18 NERC
states that the proposed Reliability
Standard is intended to enhance the
reliability of each Interconnection by
maintaining frequency within
predefined limits under all conditions.
Furthermore, NERC states that proposed
Reliability Standard BAL–001–2 and
accompanying definitions include the
benefits of the Automatic Time Error
Correction (ATEC) equation in the
WECC-specific regional variance in
Reliability Standard BAL–001–1.19
11. NERC also proposes violation risk
factors and violation severity levels for
each requirement of the proposed
Reliability Standard and an
implementation plan and effective
dates. NERC states that these proposals
were developed and reviewed for
consistency with NERC and
Commission guidelines.
12. NERC proposes an effective date
for the proposed Reliability Standard
that is the first day of the first calendar
quarter that is twelve months after the
date of Commission approval. NERC
states that its proposed implementation
date will allow entities to make any
software adjustment that may be
required to perform the Balancing
Authority ACE Limit calculations.20
16 Id.
17 Reliability Standard BAL–001–1 available at:
https://www.nerc.com/pa/Stand/
Reliability%20Standards/BAL-001-1.pdf.
18 NERC Supplemental Filing at 1.
19 NERC Petition at 2.
20 NERC Petition at 3.
PO 00000
Frm 00011
Fmt 4702
Sfmt 4702
13. On May 9, 2014, NERC submitted
a supplemental filing (Supplemental
Filing) to address the status of the
Commission directive in Order No. 693
pertaining to Reliability Standard BAL–
002–0 and update the Commission
regarding the status of a field trial
undertaken for proposed Reliability
Standard BAL–001–2.21 In its
Supplemental Filing, NERC reiterates
the importance of the proposed revision
establishing dynamic limits for a
balancing authority’s ACE as a function
of the Interconnection frequency, stating
that ‘‘[o]ne of the reliability benefits of
the proposed Reliability Standard is that
it allows Balancing Authorities to
calculate their position within these
boundaries on a real-time basis and take
action to support reliability.’’ 22 Further,
NERC states that proposed Reliability
Standard BAL–001–2 addresses the
Commission’s directive related to BAL–
002–0 ‘‘in an equally efficient and
effective manner’’ 23 NERC adds that
revisions to Reliability Standard BAL–
002–1 are currently being developed
and will complement proposed
Reliability Standard BAL–001–2 that is
the subject of the immediate
proceeding.24 Regarding the ongoing
field trial, NERC stated that ‘‘the
widespread participation of Balancing
Authorities has provided insight into
how the changes in proposed Reliability
Standard BAL–001–2 will impact
reliability.’’ 25
14. On July 31, 2014, NERC submitted
an informational filing (Informational
Filing) of its Preliminary Field Trial
Report (Field Trial Report) evaluating
the effects of proposed Reliability
Standard BAL–001–2. NERC states that
the Field Trial Report results to date
demonstrate that the correlation
between Requirements R1 and R2 of
proposed Reliability Standard BAL–
001–2 drive corrective actions to
support Interconnection frequency and
reliability.26 NERC also states that the
Balancing Authority ACE Limit, in
conjunction with currently-effective
21 NERC
Supplemental Filing at 1.
at 2.
23 Id. at 3.
24 The Commission notes that the currentlyeffective Reliability Standard BAL–002–1 requires
balancing authorities to return its ACE to zero
within 15 minutes following a reportable
disturbance. However, the Field Trial Report does
not provide any information whether compliance
with Reliability Standard BAL–002–1 had any
impact on the proposed Balancing Authority ACE
Limits in Reliability Standard BAL–001–2. Any
future modifications to BAL–002 should take this
into consideration.
25 NERC Supplemental Filing at 6, noting that 47
balancing authorities participated in the Field Trial
Report: 16 in the Eastern Interconnection, 29 in the
Western Interconnection, ERCOT and Quebec.
26 NERC Field Trial Report at 1.
22 Id.
E:\FR\FM\26NOP1.SGM
26NOP1
Federal Register / Vol. 79, No. 228 / Wednesday, November 26, 2014 / Proposed Rules
Reliability Standard BAL–003–1
(Frequency Response and Frequency
Bias Setting), satisfies the directive.27
II. Discussion
15. Pursuant to FPA section 215(d)(2),
we propose to approve Reliability
Standard BAL–001–2 as just,
reasonable, not unduly discriminatory
or preferential, and in the public
interest. We propose to approve NERC’s
four proposed definitions, violation risk
factor and violation severity level
assignments, and the retirement of
currently-effective BAL–001–1.28
Likewise, we propose to approve
NERC’s implementation plan, in which
NERC proposes an effective date of the
first day of the first calendar quarter,
twelve months after the date of
Commission approval.29
16. The purpose of proposed
Reliability Standard BAL–001–2 is to
control Interconnection frequency
within defined limits. Proposed
Reliability Standard BAL–001–2
includes both long and short term
performance measures for
Interconnection frequency control by
providing dynamic (i.e., real-time)
limits that are specific for each
balancing authority and
Interconnection. By basing Balancing
Authority ACE Limits on pre-defined
frequency trigger limits for each
Interconnection, we believe the realtime measurements established in
proposed Reliability Standard BAL–
001–2 will help ensure the
Interconnection frequency returns to a
reliable state should a balancing
authority’s ACE, or the
Interconnection’s frequency, exceed
acceptable bounds.
17. We agree with NERC’s assertion
that the Balancing Authority ACE Limit
is a real-time measure of a balancing
authority’s required performance and
encourages operation in support of the
Interconnection frequency and drives
corrective action back within predefined
ACE limits when helpful for adjusting
Interconnection frequency.30
18. Further, we believe that the NERC
proposal satisfies the directive set forth
in Order No. 693 that NERC modify
Reliability Standard BAL–002 ‘‘. . . to
define a significant deviation and a
mstockstill on DSK4VPTVN1PROD with PROPOSALS
27 Id.
at 14.
proposes four definitions for inclusion in
the Glossary of Terms Used in NERC Reliability
Standards: Regulation Reserve Sharing Group,
Reserve Sharing Group Reporting ACE, Reporting
ACE, and Interconnection. As stated in Exhibit G,
Consideration of Comments at 13, ‘‘Regulation
Reserve Sharing Group’’ would be added to the
NERC Compliance Registry prior to implementation
of the proposed standard.
29 NERC Petition Exhibit B at 4.
30 NERC Field Trial Report at 23.
28 NERC
VerDate Sep<11>2014
16:55 Nov 25, 2014
Jkt 235001
reportable event, taking account all
events that have an impact on
frequency, e.g., loss of supply, loss of
load and significant scheduling
problems. . . .’’ 31 In particular, we
believe that NERC’s statement that the
Balancing Authority ACE Limit, in
conjunction with currently-effective
Reliability Standard BAL–003–1,
satisfies the directive.32 We also believe
that Reliability Standard BAL–003–1
addresses the Commission’s Order No.
693 directive with regard to events that
have an impact on frequency due to the
loss of supply and proposed Reliability
Standard BAL–001–2 addresses aspects
of the same directive with regard to loss
of load. Further, we accept NERC’s
explanation that proposed Reliability
Standard BAL–001–2 addresses the
Commission’s Order No. 693 directive
with regard to the need to more broadly
define reportable events and that the
proposed standard sets a variable joint
megawatt limit (i.e., real-time) that is
dependent on concurrent
Interconnection frequency. With regard
to the aspect of the Order No. 693
directive requiring that reportable
events account for loss of load, we agree
with NERC’s statement that loss of load
can cause a mismatch in supply and
demand that results in a positive change
in frequency.33 We accept NERC’s
explanation that the Balancing
Authority ACE Limit has been shown to
be effective in limiting the duration that
the Interconnection frequency is
impacted by loss of supply, loss of load
or any other conditions causing a
balancing authority to exceed its
Balancing Authority ACE Limit.34
19. In sum, we believe the statements
in NERC’s Petition, Supplemental
Filing, and Informational Filing provide
sufficient technical support that NERC
has addressed the Commission’s Order
No. 693 directive in an equally and
effective manner.35 While we propose to
approve Reliability Standard BAL–001–
2, we also propose that NERC submit an
informational filing—discussed
immediately below—regarding the
potential of proposed Reliability
Standard BAL–001–2 to contribute to
unscheduled power flows and
inadvertent interchange.
A. Potential for Proposed Reliability
Standard BAL–001–2 To Contribute to
Unscheduled Power Flows and
Inadvertent Interchange
20. NERC states that, as a proof of
concept for the Balancing Authority
ACE Limit requirement, a field trial was
endorsed by the NERC Operating
committee and subsequently approved
by the NERC Standards Committee in
June 2005.36 During the development of
the proposed Reliability Standard, some
stakeholders that participated in the
field trial commented to the NERC
standard drafting team that the
proposed Balancing Authority ACE
Limit established in Requirement R2 of
BAL–001–2 has caused increased
system operating limit violations,
particularly in the Western
Interconnection. For example, one large
transmission operator commented that
the proposed Balancing Authority ACE
Limit could increase the number of
system operating limit violations, and
could possibly cause large unscheduled
power flows resulting in an increased
ACE.37 Another NERC stakeholder
commented that the proposed
Reliability Standard could provide
opportunities for entities to create
unscheduled power flows within the
standard’s boundaries, without regard to
the impacts and which could lead to
system operating limit violations due to
large ACEs.38 The same stakeholder
commented that the Western Electricity
Coordinating Council has decided to
apply a limit of four times a balancing
authority’s L10 to limit ACE deviations
from balancing authority flows that
negatively impact the transmission
system.
21. In addition, in the Field Trial
Report, NERC asserts that there is no
relationship between the Balancing
Authority ACE Limit field trial and
accumulated inadvertent interchange in
either the Eastern or Western
Interconnections.39 However, due to a
large allowance in ACE deviations in
real-time while still complying with the
proposed Balancing Authority ACE
Limit, an increase in the amount of
inadvertent interchange on the bulk
electric system of all Interconnections
may result.40 In other words, proposed
36 Id.
at 3.
Petition, Exhibit G, Consideration of
Comments April 2013, at 43.
38 Id. at 77.
39 NERC Field Trial Report at 20.
40 A comparison between the existing Control
Performance Standard 1 curves and the Balancing
Authority ACE Limit curves shown in NERC’s Field
Trial Report indicates that there are large ACE
deviations at the boundaries of 60 +/- 0.02 Hz. Id.
Figure 5 at 24.
37 NERC
31 Order No. 693, FERC Stats. & Regs. ¶ 31,242 at
P 355.
32 NERC Field Trial Report at 4.
33 Id. at 7.
34 Id. at 27.
35 NERC Supplemental Filing at 3.
PO 00000
Frm 00012
Fmt 4702
Sfmt 4702
70485
E:\FR\FM\26NOP1.SGM
26NOP1
mstockstill on DSK4VPTVN1PROD with PROPOSALS
70486
Federal Register / Vol. 79, No. 228 / Wednesday, November 26, 2014 / Proposed Rules
BAL–001–2 could allow balancing
authorities to have a very large
deviation from an ACE of zero and still
be compliant with the dynamic values
of the Balancing Authority ACE Limits
in the proposed Reliability Standard.
22. The Commission is concerned that
the Balancing Authority ACE Limit in
proposed Reliability Standard BAL–
001–2 may have an unintended
consequence of (i) allowing significant
amounts of unscheduled power flows,
creating an undue burden for
transmission operators and reliability
coordinators to address power flows
approaching or exceeding system
operating limits or interconnection
reliability operating limits, and (ii) the
significant increase in inadvertent
interchange could result in an adverse
reliability impact between real-time
operations and day and/or hour-ahead
analysis performed by reliability
coordinators and transmission
operators.
23. Based on the concerns discussed
above, the Commission proposes to
direct that NERC submit an
informational filing following
implementation of the proposed
Reliability Standard to monitor
unscheduled power flows and
inadvertent interchange in the Western
and Eastern Interconnections.
Specifically, for the two-year period
following implementation (i.e., the
effective date) of the standard, the
Commission proposes to direct NERC to
provide the number of SOL/IROL
violations, the date and time, location,
the duration and magnitude, due to
unscheduled power flows and
inadvertent interchange within Western
and the Eastern Interconnections. This
information will provide NERC, the
Commission, and other interested
entities with the material to evaluate the
effect of Reliability Standard BAL–001–
2 on unscheduled power flows and
inadvertent interchange and the
resulting consequences on the BulkPower System. Accordingly, the
Commission proposes to direct that
NERC provide data on unscheduled
power flows and inadvertent
interchange for a two-year period
following implementation of the
proposed Reliability Standard.
24. The Commission proposes to
direct NERC to submit the informational
filing 90 days after the end of the two-
VerDate Sep<11>2014
16:55 Nov 25, 2014
Jkt 235001
year period following implementation.
Should the data indicate reliability
issues due to increases in unscheduled
power flows and inadvertent
interchange under the new Balancing
Authority ACE Limit at any time during
the two-year period of study, the
Commission expects that NERC will
immediately propose and implement
adequate remedies. The Commission
seeks comments from NERC, and other
interested entities on the proposed
informational filing. The Commission
also seeks comment whether any
additional data would support the
analysis and, thus, should be provided
with the informational filing.
Furthermore, the Commission also seeks
comment on whether a regional
variance would be necessary for those
regions that experienced adverse
impacts during the field trial due to
inadvertent interchange.41
III. Information Collection Statement
25. The Office of Management and
Budget (OMB) regulations require that
OMB approve certain reporting and
recordkeeping (collections of
information) imposed by an agency.42
Upon approval of a collection(s) of
information, OMB will assign an OMB
control number and 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.
26. The Commission is submitting
these reporting and recordkeeping
requirements to OMB for its review and
approval under section 3507(d) of the
PRA. Comments are solicited on the
Commission’s need for this information,
whether the information will have
practical utility, the accuracy of the
provided burden estimate, ways to
enhance the quality, utility, and clarity
of the information to be collected, and
any suggested methods for minimizing
the respondent’s burden, including the
use of automated information
techniques.
27. This Notice of Proposed
Rulemaking proposes to approve
41 The Western Interconnection applies a limit of
four times a balancing authority’s L10 to limit ACE
deviations from balancing authority flows that
negatively impact the transmission system. Id. at
14.
42 5 CFR 1320.11.
PO 00000
Frm 00013
Fmt 4702
Sfmt 4702
revisions to Reliability Standard BAL–
001–2. NERC states in its petition that
the proposed Reliability Standard
defines a new concept: Balancing
Authority ACE Limit, which is unique
for each balancing authority and
provides dynamic limits for a balancing
authority’s ACE value as a function of
the Interconnection frequency.43 NERC
states that the proposed Reliability
Standard improves reliability by adding
a frequency component to the
measurement of a balancing authority’s
ACE, and allows for the formation of
‘‘Regulation Reserve Sharing Groups.’’
NERC’s proposed Reliability Standard
requires a balancing authority to balance
its resources and demand in real-time so
that the clock-minute average of its ACE
does not exceed its Balancing Authority
ACE Limit for more than 30 consecutive
clock-minutes. Furthermore, NERC
states that proposed Reliability Standard
BAL–001–2 and accompanying
definitions include the benefits of the
Automatic Time Error Correction
equation in the WECC-specific regional
variance in Reliability Standard BAL–
001–1.44 The proposed Reliability
Standard and related reporting
requirements are applicable to balancing
authorities and regulation reserve
sharing groups.
28. Public Reporting Burden: Our
estimate below regarding the number of
respondents is based on the NERC
Compliance Registry as of October17,
2014. According to the NERC
Compliance Registry, there are 71
balancing authorities in the Eastern
Interconnection, 34 balancing
authorities in the Western
Interconnection and one balancing
authority in the Electric Reliability
Council of Texas (ERCOT). The
Commission bases individual burden
estimates on the time needed for
balancing authorities to develop tools
needed to facilitate reporting that are
required in the Reliability Standard.
These burden estimates are consistent
with estimates for similar tasks in other
Commission-approved Reliability
Standards. The following estimates
relate to the requirements for this Notice
of Proposed Rulemaking in Docket No.
RM14–10–000.
43 NERC
44 Id.
E:\FR\FM\26NOP1.SGM
Petition at 12.
at 2.
26NOP1
Federal Register / Vol. 79, No. 228 / Wednesday, November 26, 2014 / Proposed Rules
70487
RM14–10–000 FINAL RULE
[BAL–001–2: Real Power Balancing Control Performance] 45
Number of
respondents
Annual
number of
responses per
respondent
Total number
of responses
Average burden &
cost per
response
Total annual burden
hours & total annual
cost 46
Cost per
respondent
($)
(1)
(2)
(1)*(2)=(3)
(4)
(3)*(4)=(5)
(5)÷(1)
BA/RRSG: 47 Update and
Maintain Energy Management Systems.
106
1
106
BA: Record Retention 48 .....
106
1
106
Total ............................
........................
........................
212
mstockstill on DSK4VPTVN1PROD with PROPOSALS
Title: Mandatory Reliability Standards
for BAL–001–2.
Action: Proposed Collection FERC–
725R.
OMB Control No.: 1902–0268.
Respondents: Businesses or other forprofit institutions; not-for-profit
institutions.
Frequency of Responses: On
Occasion.
Necessity of the Information: This
proposed rule proposes to approve the
Reliability Standard pertaining to
requiring balancing authorities to
operate such that its clock-minute
average reporting ACE does not exceed
its clock-minute Balancing Authority
ACE Limits for more than 30
consecutive clock-minutes. The
proposed Reliability Standard
Requirement R2 provides each
balancing authority a dynamic ACE
limit that is a function of
Interconnection frequency. The
proposed Reliability Standard will
provide dynamic limits that are
balancing authority and Interconnection
specific. In addition, these ACE limits
are based on identified Interconnection
frequency limits to ensure the
Interconnection returns to a reliable
state when an individual balancing
authority’s ACE or Interconnection
45 Proposed Reliability Standard BAL–001–2
applies to balancing authorities and regulation
reserve sharing groups. However, the burden
associated with the BA complying with
Requirement R1 is not included within this table
because the Commission accounted for it under
Commission-approved Reliability Standards BAL–
001–1.
46 The estimated hourly costs (salary plus
benefits) are based on Bureau of Labor Statistics
(BLS) information (available at https://www.bls.gov/
oes/current/naics2_22.htm) for an electrical
engineer ($60.87/hour) and a lawyer ($128.76).
47 BA=Balancing Authority; RRSG=Regulation
Reserve Sharing Group.
48 $28/hour, based on a Commission staff study of
record retention burden cost.
VerDate Sep<11>2014
16:55 Nov 25, 2014
Jkt 235001
8 hours per response.
$1030 (8 ×
$128.76).
4 ..........................
$112 ....................
848 (106*8)
$109,180 (1030*106)
$1030
424
$11,872
112
.............................
1,272
$121,052
1,142
frequency deviation contributes undue
risk to the Interconnection.
Internal Review: The Commission
reviewed the proposed Reliability
Standard and made a determination that
its action is necessary to implement
section 215 of the FPA. These
requirements, if accepted, should
conform to the Commission’s
expectation for generation and demand
balance throughout the Eastern and
Western Interconnections as well as
within the ERCOT Region.
29. Interested persons may obtain
information on the reporting
requirements by contacting the
following: Federal Energy Regulatory
Commission, 888 First Street NE.,
Washington, DC 20426 [Attention: Ellen
Brown, Office of the Executive Director,
email: DataClearance@ferc.gov, phone:
(202) 502–8663, fax: (202) 273–0873].
30. For submitting comments
concerning the collection(s) of
information and the associated burden
estimate(s), please send your comments
to the Commission and to the Office of
Management and Budget, Office of
Information and Regulatory Affairs,
Washington, DC 20503 [Attention: Desk
Officer for the Federal Energy
Regulatory Commission, phone: (202)
395–4638, fax: (202) 395–7285]. For
security reasons, comments to OMB
should be submitted by email to: oira_
submission@omb.eop.gov. Comments
submitted to OMB should include
FERC–725R and Docket Number RM1410–000.
IV. Environmental Analysis
31. 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.49 The Commission has
49 Regulations Implementing the National
Environmental Policy Act of 1969, Order No. 486,
PO 00000
Frm 00014
Fmt 4702
Sfmt 4702
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.50 The
actions proposed here fall within this
categorical exclusion in the
Commission’s regulations.
V. Regulatory Flexibility Act
Certification
32. The Regulatory Flexibility Act of
1980 (RFA) 51 generally requires a
description and analysis of proposed
rules that will have significant
economic impact on a substantial
number of small entities. As shown in
the information collection section, the
proposed Reliability Standard applies to
106 entities. Comparison of the
applicable entities with the
Commission’s small business data
indicates that approximately 23 52 are
small business entities. Of these, the
Commission estimates that
approximately five percent, or one of
these small entities, will be affected by
the new requirements of the proposed
Reliability Standard.
33. The Commission estimates that
the small entities that will be affected by
proposed Reliability Standard BAL–
001–2 will incur one-time compliance
cost up to $109,180 (i.e. the cost of
updating and maintaining energy
management systems), resulting in cost
of approximately $1,030 per balancing
authority and/or regulation reserve
sharing groups. These costs represent an
estimate of the costs a small entity could
FERC Stats. & Regs., Regulations Preambles 1986–
1990 ¶ 30,783 (1987).
50 18 CFR 380.4(a)(2)(ii).
51 5 U.S.C. 601–612.
52 21.4 percent of the total number of affected
entities.
E:\FR\FM\26NOP1.SGM
26NOP1
70488
Federal Register / Vol. 79, No. 228 / Wednesday, November 26, 2014 / Proposed Rules
incur if the entity is identified as an
applicable entity. The Commission does
not consider the estimated cost per
small entity to have a significant
economic impact on a substantial
number of small entities. Accordingly,
the Commission certifies that this NOPR
will not have a significant economic
impact on a substantial number of small
entities.
mstockstill on DSK4VPTVN1PROD with PROPOSALS
VI. Comment Procedures
34. 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 January 26, 2015.
Comments must refer to Docket No.
RM14–10–000, and must include the
commenter’s name, the organization
they represent, if applicable, and their
address in their comments.
35. The Commission encourages
comments to be filed electronically via
the eFiling link on the Commission’s
Web site at https://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.
36. 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.
37. All comments will be placed in
the Commission’s public files and may
be viewed, printed, or downloaded
remotely as described in the Document
Availability section below. Commenters
on this proposal are not required to
serve copies of their comments on other
commenters.
VII. Document Availability
38. 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 (https://
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.
39. 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
VerDate Sep<11>2014
16:55 Nov 25, 2014
Jkt 235001
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.
40. 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 ferconlinesupport@ferc.gov,
or the Public Reference Room at (202)
502–8371, TTY (202) 502–8659. Email
the Public Reference Room at
public.referenceroom@ferc.gov.
By direction of the Commission.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2014–27949 Filed 11–25–14; 8:45 am]
BILLING CODE 6717–01–P
DEPARTMENT OF HOMELAND
SECURITY
Coast Guard
33 CFR Part 100
[Docket Number USCG–2014–0905]
RIN 1625–AA08
Special Local Regulation; Bradenton
Area Riverwalk Regatta; Manatee
River, Bradenton, FL
Coast Guard, DHS.
ACTION: Notice of Proposed Rulemaking.
AGENCY:
The Coast Guard is proposing
to establish a special local regulation on
the waters of the Manatee River in
Bradenton, Florida during the
Bradenton Area Riverwalk Regatta. The
race is scheduled to take place annually
from 11:00 a.m. to 4:30 p.m. on the first
Saturday of February. The proposed
special local regulation is necessary to
protect the safety of race participants,
participant vessels, spectators, and the
general public on the navigable waters
of the United States during the event.
The special local regulation would
restrict vessel traffic in the waters of the
Manatee River in the vicinity of
Bradenton, Florida. It would establish
the following two areas: Enforcement
areas #1 and #2, where all persons and
vessels, except those persons and
vessels participating in the high speed
boat races and those vessels enforcing
the areas, are prohibited from entering,
transiting through, anchoring in, or
remaining within.
DATES: Comments and related material
must be received by the Coast Guard on
or before December 26, 2014.
SUMMARY:
PO 00000
Frm 00015
Fmt 4702
Sfmt 4702
You may submit comments
identified by docket number using any
one of the following methods:
(1) Federal eRulemaking Portal:
https://www.regulations.gov.
(2) Fax: (202) 493–2251.
(3) Mail or Delivery: Docket
Management Facility (M–30), U.S.
Department of Transportation, West
Building Ground Floor, Room W12–140,
1200 New Jersey Avenue SE.,
Washington, DC 20590–0001. Deliveries
accepted between 9 a.m. and 5 p.m.,
Monday through Friday, except federal
holidays. The telephone number is (202)
366–9329.
See the ‘‘Public Participation and
Request for Comments’’ portion of the
SUPPLEMENTARY INFORMATION section
below for further instructions on
submitting comments. To avoid
duplication, please use only one of
these three methods.
FOR FURTHER INFORMATION CONTACT: If
you have questions on this rule, call or
email Marine Science Technician First
Class Hector I. Fuentes, Sector St.
Petersburg Prevention Department,
Coast Guard; telephone (813) 228–2191,
email D07-SMB-Tampa-WWM@
uscg.mil. If you have questions on
viewing or submitting material to the
docket, call Cheryl Collins, Program
Manager, Docket Operations, telephone
(202) 366–9826.
SUPPLEMENTARY INFORMATION:
ADDRESSES:
Table of Acronyms
DHS Department of Homeland Security
FR Federal Register
NPRM Notice of Proposed Rulemaking
A. Public Participation and Request for
Comments
We encourage you to participate in
this rulemaking by submitting
comments and related materials. All
comments received will be posted
without change to https://
www.regulations.gov and will include
any personal information you have
provided.
1. Submitting Comments
If you submit a comment, please
include the docket number for this
rulemaking, indicate the specific section
of this document to which each
comment applies, and provide a reason
for each suggestion or recommendation.
You may submit your comments and
material online at https://
www.regulations.gov, or by fax, mail, or
hand delivery, but please use only one
of these means. If you submit a
comment online, it will be considered
received by the Coast Guard when you
successfully transmit the comment. If
you fax, hand deliver, or mail your
E:\FR\FM\26NOP1.SGM
26NOP1
]]>Agencies
[Federal Register Volume 79, Number 228 (Wednesday, November 26, 2014)]
[Proposed Rules]
[Pages 70483-70488]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-27949]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
18 CFR Part 40
[Docket No. RM14-10-000]
Real Power Balancing Control Performance Reliability Standard
AGENCY: Federal Energy Regulatory Commission, DOE.
ACTION: Notice of proposed rulemaking.
-----------------------------------------------------------------------
SUMMARY: The Federal Energy Regulatory Commission proposes to approve
Reliability Standard BAL-001-2 (Real Power Balancing Control
Performance) and proposed new definitions submitted by the North
American Electric Reliability Corporation (NERC). The proposed
Reliability Standard is designed to ensure that applicable entities
maintain system frequency within narrow bounds around a scheduled
value. In addition, the Commission proposes that NERC submit an
informational filing that would address the impact of the proposed
Reliability Standard on inadvertent interchange and unscheduled power
flows.
DATES: Comments are due January 26, 2015.
ADDRESSES: Comments, identified by docket number, may be filed in the
following ways:
Electronic Filing through https://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:
Enakpodia Agbedia (Technical Information), Office of Electric
Reliability, Division of Reliability Standards, Federal Energy
Regulatory Commission, 888 First Street NE., Washington, DC 20426,
Telephone: (202) 502-6750, Enakpodia.Agbedia@ferc.gov.
Mark Bennett (Legal Information), Office of the General Counsel,
Federal Energy Regulatory Commission, 888 First Street NE., Washington,
DC 20426, Telephone: (202) 502-8524, Mark.Bennett@ferc.gov.
SUPPLEMENTARY INFORMATION:
1. Under section 215 of the Federal Power Act (FPA),\1\ the
Commission proposes to approve Reliability Standard BAL-001-2 (Real
Power Balancing Control Performance) that the North American Electric
Reliability Corporation (NERC), the Commission-certified Electric
Reliability Organization (ERO), submitted for approval. The proposed
Reliability Standard applies to balancing authorities and regulation
reserve sharing groups, and is designed to maintain Interconnection
frequency within predefined frequency limits. The Commission also
proposes to approve the retirement of currently-effective Reliability
Standard BAL-001-1 immediately prior to the effective date of BAL-001-
2.
---------------------------------------------------------------------------
\1\ 16 U.S.C. 824(o) (2012).
---------------------------------------------------------------------------
2. Further, the Commission proposes to approve NERC's four proposed
definitions, associated violation risk factors and violation severity
levels, implementation plan, and effective dates. The Commission also
proposes that NERC submit an informational filing that would address
the impact of the proposed Reliability Standard on inadvertent
interchange \2\ and unscheduled power flows.\3\
---------------------------------------------------------------------------
\2\ NERC defines ``Inadvertent Interchange'' in the NERC
Glossary of Terms Used in Reliability Standards (Glossary) as
``[t]he difference between the Balancing Authority's Net Actual
Interchange and Net Scheduled Interchange. (IA -
IS)''
\3\ ``Unscheduled power flows'' generally refers to the power
flows that result from the law of physics that causes power from a
given source to flow over all possible paths to its destination.
---------------------------------------------------------------------------
I. Background
A. Mandatory Reliability Standards and Order No. 693 Directive
3. Section 215 of the FPA requires a Commission-certified Electric
Reliability Organization (ERO) to develop mandatory and enforceable
Reliability Standards that are subject to Commission review and
approval. Specifically, the Commission may approve, by rule or order, a
proposed Reliability Standard or modification to a Reliability Standard
if it determines that the Standard is just, reasonable, not unduly
discriminatory or preferential and in the public interest.\4\ Once
approved, the Reliability Standards may be enforced by NERC, subject to
Commission oversight, or by the Commission independently.\5\
---------------------------------------------------------------------------
\4\ 16 U.S.C. 824o(d)(2).
\5\ 16 U.S.C. 824o(e).
---------------------------------------------------------------------------
4. Pursuant to section 215 of the FPA, the Commission established a
process to select and certify an ERO,\6\ and subsequently certified
NERC.\7\ On March 16, 2007, the Commission issued Order No. 693,
approving 83 of the 107 Reliability Standards filed by NERC, including
BAL-001-0 and a companion standard BAL-002-0.\8\ When approving BAL-
002-0, the Commission directed NERC ``to modify this Reliability
Standard to define a significant deviation and a reportable event,
taking into account all events that have an impact on frequency, e.g.,
loss of supply, loss of load and significant scheduling problems, which
can cause frequency disturbances and to address how balancing
authorities should respond.'' \9\
---------------------------------------------------------------------------
\6\ Rules Concerning Certification of the Electric Reliability
Organization; and Procedures for the Establishment, Approval, and
Enforcement of Electric Reliability Standards, Order No. 672, FERC
Stats. & Regs. ] 31,204, order on reh'g, Order No. 672-A, FERC
Stats. & Regs. ] 31,212 (2006).
\7\ North American Electric 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).
\8\ 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). The Commission approved
Reliability Standard BAL-001-1 in an unpublished letter order,
October 16, 2013 in Docket No. RD13-11-000.
\9\ Id. P 355.
---------------------------------------------------------------------------
B. Proposed Reliability Standard BAL-001-2
5. On April 2, 2014, NERC filed a petition (Petition) seeking
approval of proposed Reliability Standard BAL-001-2, four new
definitions to be added to the Glossary of Terms used in NERC
Reliability Standards (NERC Glossary of
[[Page 70484]]
Terms) and the associated violation risk factors and violation severity
levels, effective dates, and implementation plan.\10\ NERC states that
the proposed Reliability Standard is just, reasonable, not unduly
discriminatory or preferential, and in the public interest because it
satisfies the factors set forth in Order No. 672, which the Commission
applies when reviewing a proposed Reliability Standard.\11\ Also, NERC
asserts that proposed Reliability Standard BAL-001-2 addresses the
Commission's Order No. 693 directive pertaining to BAL-002-0.
---------------------------------------------------------------------------
\10\ Proposed Reliability Standard BAL-001-2 is available on the
Commission's eLibrary document retrieval system in Docket No. RM14-
10-000 and on the NERC Web site, www.nerc.com.
\11\ NERC Petition at 6 and Exhibit C (citing Order No. 672,
FERC Stats. & Regs. ] 31,204 at PP 323-335, 444).
---------------------------------------------------------------------------
6. NERC proposes to revise Reliability Standard BAL-001-2 by
replacing the Control Performance Standard 2 (CPS2) in currently-
effective Requirement R2 with a new term, ``Balancing Authority ACE
Limit (BAAL).'' \12\ The Balancing Authority ACE Limit, unique for each
balancing authority, contains dynamic limits as a function of
Interconnection frequency and provides the basis for a balancing
authority's obligation to balance its resources and demand in real-time
so that its clock-minute average ACE does not exceed its Balancing
Authority ACE Limit for more than 30 consecutive clock-minutes.\13\
---------------------------------------------------------------------------
\12\ Area Control Error (ACE) is the instantaneous difference
between a Balancing Authority's Net Actual and Scheduled
Interchange, taking into accounts the effects of Frequency Bias,
correction for meter error, and Automatic Time Error Correction, if
operating in that mode.
\13\ NERC Petition at 12.
---------------------------------------------------------------------------
7. Proposed Reliability Standard BAL-001-2 has two requirements and
two attachments containing the mathematical equations for calculating
the Control Performance Standard 1 (CPS1) in Requirement R1,\14\ the
Balancing Authority ACE Limit in Requirement R2, and associated
measures. NERC states that the only proposed change to Requirement R1
is to move the equation and explanation of the individual components of
CPS1 to Attachment 1. NERC explains that the proposed revisions to
Requirement R1 ``are administratively efficient and clarify the intent
of the Requirement.'' \15\ NERC states that the ``underlying
performance aspect'' of Requirement R1 remains the same: ``to measure
how well a Balancing Authority is able to control its generation and
load management programs, as measured by its ACE, to support its
Interconnection's frequency over a rolling one-year period.'' \16\
---------------------------------------------------------------------------
\14\ The ``Responsible Entity'' designated in proposed
Reliability Standard BAL-001-2 Requirement R1 is the balancing
authority and/or regulation reserve sharing groups.
\15\ NERC Petition at 11.
\16\ Id.
---------------------------------------------------------------------------
8. Proposed Requirement R2 is new and replaces the existing Control
Performance Standard 2 requirement. The current Reliability Standard
BAL-001-1 Requirement R2 requires each balancing authority to operate
such that for at least 90 percent of the ten-minute periods in a
calendar month (using six non-overlapping periods per hour), the
average area control error (ACE) must be within a specific limit,
referred to as L10.\17\
---------------------------------------------------------------------------
\17\ Reliability Standard BAL-001-1 available at: https://www.nerc.com/pa/Stand/Reliability%20Standards/BAL-001-1.pdf.
---------------------------------------------------------------------------
9. Requirement R2 of the proposed Reliability Standard BAL-001-2
states:
Balancing Authority shall operate such that its clock-minute
average of Reporting ACE does not exceed its clock-minute Balancing
Authority ACE Limit (BAAL) for more than 30 consecutive clock-
minutes, calculated in accordance with Attachment 2, for the
applicable Interconnection in which the Balancing Authority
operates.
10. NERC explains that the Balancing Authority ACE Limits are
unique for each balancing authority and provide dynamic limits for the
balancing authority's ACE value as a function of its Interconnection
frequency.\18\ NERC states that the proposed Reliability Standard is
intended to enhance the reliability of each Interconnection by
maintaining frequency within predefined limits under all conditions.
Furthermore, NERC states that proposed Reliability Standard BAL-001-2
and accompanying definitions include the benefits of the Automatic Time
Error Correction (ATEC) equation in the WECC-specific regional variance
in Reliability Standard BAL-001-1.\19\
---------------------------------------------------------------------------
\18\ NERC Supplemental Filing at 1.
\19\ NERC Petition at 2.
---------------------------------------------------------------------------
11. NERC also proposes violation risk factors and violation
severity levels for each requirement of the proposed Reliability
Standard and an implementation plan and effective dates. NERC states
that these proposals were developed and reviewed for consistency with
NERC and Commission guidelines.
12. NERC proposes an effective date for the proposed Reliability
Standard that is the first day of the first calendar quarter that is
twelve months after the date of Commission approval. NERC states that
its proposed implementation date will allow entities to make any
software adjustment that may be required to perform the Balancing
Authority ACE Limit calculations.\20\
---------------------------------------------------------------------------
\20\ NERC Petition at 3.
---------------------------------------------------------------------------
13. On May 9, 2014, NERC submitted a supplemental filing
(Supplemental Filing) to address the status of the Commission directive
in Order No. 693 pertaining to Reliability Standard BAL-002-0 and
update the Commission regarding the status of a field trial undertaken
for proposed Reliability Standard BAL-001-2.\21\ In its Supplemental
Filing, NERC reiterates the importance of the proposed revision
establishing dynamic limits for a balancing authority's ACE as a
function of the Interconnection frequency, stating that ``[o]ne of the
reliability benefits of the proposed Reliability Standard is that it
allows Balancing Authorities to calculate their position within these
boundaries on a real-time basis and take action to support
reliability.'' \22\ Further, NERC states that proposed Reliability
Standard BAL-001-2 addresses the Commission's directive related to BAL-
002-0 ``in an equally efficient and effective manner'' \23\ NERC adds
that revisions to Reliability Standard BAL-002-1 are currently being
developed and will complement proposed Reliability Standard BAL-001-2
that is the subject of the immediate proceeding.\24\ Regarding the
ongoing field trial, NERC stated that ``the widespread participation of
Balancing Authorities has provided insight into how the changes in
proposed Reliability Standard BAL-001-2 will impact reliability.'' \25\
---------------------------------------------------------------------------
\21\ NERC Supplemental Filing at 1.
\22\ Id. at 2.
\23\ Id. at 3.
\24\ The Commission notes that the currently-effective
Reliability Standard BAL-002-1 requires balancing authorities to
return its ACE to zero within 15 minutes following a reportable
disturbance. However, the Field Trial Report does not provide any
information whether compliance with Reliability Standard BAL-002-1
had any impact on the proposed Balancing Authority ACE Limits in
Reliability Standard BAL-001-2. Any future modifications to BAL-002
should take this into consideration.
\25\ NERC Supplemental Filing at 6, noting that 47 balancing
authorities participated in the Field Trial Report: 16 in the
Eastern Interconnection, 29 in the Western Interconnection, ERCOT
and Quebec.
---------------------------------------------------------------------------
14. On July 31, 2014, NERC submitted an informational filing
(Informational Filing) of its Preliminary Field Trial Report (Field
Trial Report) evaluating the effects of proposed Reliability Standard
BAL-001-2. NERC states that the Field Trial Report results to date
demonstrate that the correlation between Requirements R1 and R2 of
proposed Reliability Standard BAL-001-2 drive corrective actions to
support Interconnection frequency and reliability.\26\ NERC also states
that the Balancing Authority ACE Limit, in conjunction with currently-
effective
[[Page 70485]]
Reliability Standard BAL-003-1 (Frequency Response and Frequency Bias
Setting), satisfies the directive.\27\
---------------------------------------------------------------------------
\26\ NERC Field Trial Report at 1.
\27\ Id. at 14.
---------------------------------------------------------------------------
II. Discussion
15. Pursuant to FPA section 215(d)(2), we propose to approve
Reliability Standard BAL-001-2 as just, reasonable, not unduly
discriminatory or preferential, and in the public interest. We propose
to approve NERC's four proposed definitions, violation risk factor and
violation severity level assignments, and the retirement of currently-
effective BAL-001-1.\28\ Likewise, we propose to approve NERC's
implementation plan, in which NERC proposes an effective date of the
first day of the first calendar quarter, twelve months after the date
of Commission approval.\29\
---------------------------------------------------------------------------
\28\ NERC proposes four definitions for inclusion in the
Glossary of Terms Used in NERC Reliability Standards: Regulation
Reserve Sharing Group, Reserve Sharing Group Reporting ACE,
Reporting ACE, and Interconnection. As stated in Exhibit G,
Consideration of Comments at 13, ``Regulation Reserve Sharing
Group'' would be added to the NERC Compliance Registry prior to
implementation of the proposed standard.
\29\ NERC Petition Exhibit B at 4.
---------------------------------------------------------------------------
16. The purpose of proposed Reliability Standard BAL-001-2 is to
control Interconnection frequency within defined limits. Proposed
Reliability Standard BAL-001-2 includes both long and short term
performance measures for Interconnection frequency control by providing
dynamic (i.e., real-time) limits that are specific for each balancing
authority and Interconnection. By basing Balancing Authority ACE Limits
on pre-defined frequency trigger limits for each Interconnection, we
believe the real-time measurements established in proposed Reliability
Standard BAL-001-2 will help ensure the Interconnection frequency
returns to a reliable state should a balancing authority's ACE, or the
Interconnection's frequency, exceed acceptable bounds.
17. We agree with NERC's assertion that the Balancing Authority ACE
Limit is a real-time measure of a balancing authority's required
performance and encourages operation in support of the Interconnection
frequency and drives corrective action back within predefined ACE
limits when helpful for adjusting Interconnection frequency.\30\
---------------------------------------------------------------------------
\30\ NERC Field Trial Report at 23.
---------------------------------------------------------------------------
18. Further, we believe that the NERC proposal satisfies the
directive set forth in Order No. 693 that NERC modify Reliability
Standard BAL-002 ``. . . to define a significant deviation and a
reportable event, taking account all events that have an impact on
frequency, e.g., loss of supply, loss of load and significant
scheduling problems. . . .'' \31\ In particular, we believe that NERC's
statement that the Balancing Authority ACE Limit, in conjunction with
currently-effective Reliability Standard BAL-003-1, satisfies the
directive.\32\ We also believe that Reliability Standard BAL-003-1
addresses the Commission's Order No. 693 directive with regard to
events that have an impact on frequency due to the loss of supply and
proposed Reliability Standard BAL-001-2 addresses aspects of the same
directive with regard to loss of load. Further, we accept NERC's
explanation that proposed Reliability Standard BAL-001-2 addresses the
Commission's Order No. 693 directive with regard to the need to more
broadly define reportable events and that the proposed standard sets a
variable joint megawatt limit (i.e., real-time) that is dependent on
concurrent Interconnection frequency. With regard to the aspect of the
Order No. 693 directive requiring that reportable events account for
loss of load, we agree with NERC's statement that loss of load can
cause a mismatch in supply and demand that results in a positive change
in frequency.\33\ We accept NERC's explanation that the Balancing
Authority ACE Limit has been shown to be effective in limiting the
duration that the Interconnection frequency is impacted by loss of
supply, loss of load or any other conditions causing a balancing
authority to exceed its Balancing Authority ACE Limit.\34\
---------------------------------------------------------------------------
\31\ Order No. 693, FERC Stats. & Regs. ] 31,242 at P 355.
\32\ NERC Field Trial Report at 4.
\33\ Id. at 7.
\34\ Id. at 27.
---------------------------------------------------------------------------
19. In sum, we believe the statements in NERC's Petition,
Supplemental Filing, and Informational Filing provide sufficient
technical support that NERC has addressed the Commission's Order No.
693 directive in an equally and effective manner.\35\ While we propose
to approve Reliability Standard BAL-001-2, we also propose that NERC
submit an informational filing--discussed immediately below--regarding
the potential of proposed Reliability Standard BAL-001-2 to contribute
to unscheduled power flows and inadvertent interchange.
---------------------------------------------------------------------------
\35\ NERC Supplemental Filing at 3.
---------------------------------------------------------------------------
A. Potential for Proposed Reliability Standard BAL-001-2 To Contribute
to Unscheduled Power Flows and Inadvertent Interchange
20. NERC states that, as a proof of concept for the Balancing
Authority ACE Limit requirement, a field trial was endorsed by the NERC
Operating committee and subsequently approved by the NERC Standards
Committee in June 2005.\36\ During the development of the proposed
Reliability Standard, some stakeholders that participated in the field
trial commented to the NERC standard drafting team that the proposed
Balancing Authority ACE Limit established in Requirement R2 of BAL-001-
2 has caused increased system operating limit violations, particularly
in the Western Interconnection. For example, one large transmission
operator commented that the proposed Balancing Authority ACE Limit
could increase the number of system operating limit violations, and
could possibly cause large unscheduled power flows resulting in an
increased ACE.\37\ Another NERC stakeholder commented that the proposed
Reliability Standard could provide opportunities for entities to create
unscheduled power flows within the standard's boundaries, without
regard to the impacts and which could lead to system operating limit
violations due to large ACEs.\38\ The same stakeholder commented that
the Western Electricity Coordinating Council has decided to apply a
limit of four times a balancing authority's L10 to limit ACE
deviations from balancing authority flows that negatively impact the
transmission system.
---------------------------------------------------------------------------
\36\ Id. at 3.
\37\ NERC Petition, Exhibit G, Consideration of Comments April
2013, at 43.
\38\ Id. at 77.
---------------------------------------------------------------------------
21. In addition, in the Field Trial Report, NERC asserts that there
is no relationship between the Balancing Authority ACE Limit field
trial and accumulated inadvertent interchange in either the Eastern or
Western Interconnections.\39\ However, due to a large allowance in ACE
deviations in real-time while still complying with the proposed
Balancing Authority ACE Limit, an increase in the amount of inadvertent
interchange on the bulk electric system of all Interconnections may
result.\40\ In other words, proposed
[[Page 70486]]
BAL-001-2 could allow balancing authorities to have a very large
deviation from an ACE of zero and still be compliant with the dynamic
values of the Balancing Authority ACE Limits in the proposed
Reliability Standard.
---------------------------------------------------------------------------
\39\ NERC Field Trial Report at 20.
\40\ A comparison between the existing Control Performance
Standard 1 curves and the Balancing Authority ACE Limit curves shown
in NERC's Field Trial Report indicates that there are large ACE
deviations at the boundaries of 60 +/- 0.02 Hz. Id. Figure 5 at 24.
---------------------------------------------------------------------------
22. The Commission is concerned that the Balancing Authority ACE
Limit in proposed Reliability Standard BAL-001-2 may have an unintended
consequence of (i) allowing significant amounts of unscheduled power
flows, creating an undue burden for transmission operators and
reliability coordinators to address power flows approaching or
exceeding system operating limits or interconnection reliability
operating limits, and (ii) the significant increase in inadvertent
interchange could result in an adverse reliability impact between real-
time operations and day and/or hour-ahead analysis performed by
reliability coordinators and transmission operators.
23. Based on the concerns discussed above, the Commission proposes
to direct that NERC submit an informational filing following
implementation of the proposed Reliability Standard to monitor
unscheduled power flows and inadvertent interchange in the Western and
Eastern Interconnections. Specifically, for the two-year period
following implementation (i.e., the effective date) of the standard,
the Commission proposes to direct NERC to provide the number of SOL/
IROL violations, the date and time, location, the duration and
magnitude, due to unscheduled power flows and inadvertent interchange
within Western and the Eastern Interconnections. This information will
provide NERC, the Commission, and other interested entities with the
material to evaluate the effect of Reliability Standard BAL-001-2 on
unscheduled power flows and inadvertent interchange and the resulting
consequences on the Bulk-Power System. Accordingly, the Commission
proposes to direct that NERC provide data on unscheduled power flows
and inadvertent interchange for a two-year period following
implementation of the proposed Reliability Standard.
24. The Commission proposes to direct NERC to submit the
informational filing 90 days after the end of the two-year period
following implementation. Should the data indicate reliability issues
due to increases in unscheduled power flows and inadvertent interchange
under the new Balancing Authority ACE Limit at any time during the two-
year period of study, the Commission expects that NERC will immediately
propose and implement adequate remedies. The Commission seeks comments
from NERC, and other interested entities on the proposed informational
filing. The Commission also seeks comment whether any additional data
would support the analysis and, thus, should be provided with the
informational filing. Furthermore, the Commission also seeks comment on
whether a regional variance would be necessary for those regions that
experienced adverse impacts during the field trial due to inadvertent
interchange.\41\
---------------------------------------------------------------------------
\41\ The Western Interconnection applies a limit of four times a
balancing authority's L10 to limit ACE deviations from
balancing authority flows that negatively impact the transmission
system. Id. at 14.
---------------------------------------------------------------------------
III. Information Collection Statement
25. The Office of Management and Budget (OMB) regulations require
that OMB approve certain reporting and recordkeeping (collections of
information) imposed by an agency.\42\ Upon approval of a collection(s)
of information, OMB will assign an OMB control number and 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.
---------------------------------------------------------------------------
\42\ 5 CFR 1320.11.
---------------------------------------------------------------------------
26. The Commission is submitting these reporting and recordkeeping
requirements to OMB for its review and approval under section 3507(d)
of the PRA. Comments are solicited on the Commission's need for this
information, whether the information will have practical utility, the
accuracy of the provided burden estimate, ways to enhance the quality,
utility, and clarity of the information to be collected, and any
suggested methods for minimizing the respondent's burden, including the
use of automated information techniques.
27. This Notice of Proposed Rulemaking proposes to approve
revisions to Reliability Standard BAL-001-2. NERC states in its
petition that the proposed Reliability Standard defines a new concept:
Balancing Authority ACE Limit, which is unique for each balancing
authority and provides dynamic limits for a balancing authority's ACE
value as a function of the Interconnection frequency.\43\ NERC states
that the proposed Reliability Standard improves reliability by adding a
frequency component to the measurement of a balancing authority's ACE,
and allows for the formation of ``Regulation Reserve Sharing Groups.''
NERC's proposed Reliability Standard requires a balancing authority to
balance its resources and demand in real-time so that the clock-minute
average of its ACE does not exceed its Balancing Authority ACE Limit
for more than 30 consecutive clock-minutes. Furthermore, NERC states
that proposed Reliability Standard BAL-001-2 and accompanying
definitions include the benefits of the Automatic Time Error Correction
equation in the WECC-specific regional variance in Reliability Standard
BAL-001-1.\44\ The proposed Reliability Standard and related reporting
requirements are applicable to balancing authorities and regulation
reserve sharing groups.
---------------------------------------------------------------------------
\43\ NERC Petition at 12.
\44\ Id. at 2.
---------------------------------------------------------------------------
28. Public Reporting Burden: Our estimate below regarding the
number of respondents is based on the NERC Compliance Registry as of
October17, 2014. According to the NERC Compliance Registry, there are
71 balancing authorities in the Eastern Interconnection, 34 balancing
authorities in the Western Interconnection and one balancing authority
in the Electric Reliability Council of Texas (ERCOT). The Commission
bases individual burden estimates on the time needed for balancing
authorities to develop tools needed to facilitate reporting that are
required in the Reliability Standard. These burden estimates are
consistent with estimates for similar tasks in other Commission-
approved Reliability Standards. The following estimates relate to the
requirements for this Notice of Proposed Rulemaking in Docket No. RM14-
10-000.
[[Page 70487]]
RM14-10-000 Final Rule
[BAL-001-2: Real Power Balancing Control Performance] \45\
--------------------------------------------------------------------------------------------------------------------------------------------------------
Annual number
Number of of responses Total number Average burden & cost Total annual burden Cost per
respondents per of responses per response hours & total annual respondent ($)
respondent cost \46\
(1) (2) (1)*(2)=(3) (4)..................... (3)*(4)=(5) (5)/(1)
--------------------------------------------------------------------------------------------------------------------------------------------------------
BA/RRSG: \47\ Update and Maintain 106 1 106 8 hours per response.... 848 (106*8) $1030
Energy Management Systems. $1030 (8 x $128.76)..... $109,180 (1030*106)
BA: Record Retention \48\............ 106 1 106 4....................... 424 112
$112.................... $11,872
------------------------------------------------------------------------------------------------------------------
Total............................ .............. .............. 212 ........................ 1,272 1,142
$121,052
--------------------------------------------------------------------------------------------------------------------------------------------------------
Title: Mandatory Reliability Standards for BAL-001-2.
---------------------------------------------------------------------------
\45\ Proposed Reliability Standard BAL-001-2 applies to
balancing authorities and regulation reserve sharing groups.
However, the burden associated with the BA complying with
Requirement R1 is not included within this table because the
Commission accounted for it under Commission-approved Reliability
Standards BAL-001-1.
\46\ The estimated hourly costs (salary plus benefits) are based
on Bureau of Labor Statistics (BLS) information (available at https://www.bls.gov/oes/current/naics2_22.htm) for an electrical engineer
($60.87/hour) and a lawyer ($128.76).
\47\ BA=Balancing Authority; RRSG=Regulation Reserve Sharing
Group.
\48\ $28/hour, based on a Commission staff study of record
retention burden cost.
---------------------------------------------------------------------------
Action: Proposed Collection FERC-725R.
OMB Control No.: 1902-0268.
Respondents: Businesses or other for-profit institutions; not-for-
profit institutions.
Frequency of Responses: On Occasion.
Necessity of the Information: This proposed rule proposes to
approve the Reliability Standard pertaining to requiring balancing
authorities to operate such that its clock-minute average reporting ACE
does not exceed its clock-minute Balancing Authority ACE Limits for
more than 30 consecutive clock-minutes. The proposed Reliability
Standard Requirement R2 provides each balancing authority a dynamic ACE
limit that is a function of Interconnection frequency. The proposed
Reliability Standard will provide dynamic limits that are balancing
authority and Interconnection specific. In addition, these ACE limits
are based on identified Interconnection frequency limits to ensure the
Interconnection returns to a reliable state when an individual
balancing authority's ACE or Interconnection frequency deviation
contributes undue risk to the Interconnection.
Internal Review: The Commission reviewed the proposed Reliability
Standard and made a determination that its action is necessary to
implement section 215 of the FPA. These requirements, if accepted,
should conform to the Commission's expectation for generation and
demand balance throughout the Eastern and Western Interconnections as
well as within the ERCOT Region.
29. Interested persons may obtain information on the reporting
requirements by contacting the following: Federal Energy Regulatory
Commission, 888 First Street NE., Washington, DC 20426 [Attention:
Ellen Brown, Office of the Executive Director, email:
DataClearance@ferc.gov, phone: (202) 502-8663, fax: (202) 273-0873].
30. For submitting comments concerning the collection(s) of
information and the associated burden estimate(s), please send your
comments to the Commission and to the Office of Management and Budget,
Office of Information and Regulatory Affairs, Washington, DC 20503
[Attention: Desk Officer for the Federal Energy Regulatory Commission,
phone: (202) 395-4638, fax: (202) 395-7285]. For security reasons,
comments to OMB should be submitted by email to:
oira_submission@omb.eop.gov. Comments submitted to OMB should include
FERC-725R and Docket Number RM14- 10-000.
IV. Environmental Analysis
31. 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.\49\ 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.\50\ The actions proposed here
fall within this categorical exclusion in the Commission's regulations.
---------------------------------------------------------------------------
\49\ Regulations Implementing the National Environmental Policy
Act of 1969, Order No. 486, FERC Stats. & Regs., Regulations
Preambles 1986-1990 ] 30,783 (1987).
\50\ 18 CFR 380.4(a)(2)(ii).
---------------------------------------------------------------------------
V. Regulatory Flexibility Act Certification
32. The Regulatory Flexibility Act of 1980 (RFA) \51\ generally
requires a description and analysis of proposed rules that will have
significant economic impact on a substantial number of small entities.
As shown in the information collection section, the proposed
Reliability Standard applies to 106 entities. Comparison of the
applicable entities with the Commission's small business data indicates
that approximately 23 \52\ are small business entities. Of these, the
Commission estimates that approximately five percent, or one of these
small entities, will be affected by the new requirements of the
proposed Reliability Standard.
---------------------------------------------------------------------------
\51\ 5 U.S.C. 601-612.
\52\ 21.4 percent of the total number of affected entities.
---------------------------------------------------------------------------
33. The Commission estimates that the small entities that will be
affected by proposed Reliability Standard BAL-001-2 will incur one-time
compliance cost up to $109,180 (i.e. the cost of updating and
maintaining energy management systems), resulting in cost of
approximately $1,030 per balancing authority and/or regulation reserve
sharing groups. These costs represent an estimate of the costs a small
entity could
[[Page 70488]]
incur if the entity is identified as an applicable entity. The
Commission does not consider the estimated cost per small entity to
have a significant economic impact on a substantial number of small
entities. Accordingly, the Commission certifies that this NOPR will not
have a significant economic impact on a substantial number of small
entities.
VI. Comment Procedures
34. 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 January 26, 2015. Comments must refer to
Docket No. RM14-10-000, and must include the commenter's name, the
organization they represent, if applicable, and their address in their
comments.
35. The Commission encourages comments to be filed electronically
via the eFiling link on the Commission's Web site at https://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.
36. 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.
37. All comments will be placed in the Commission's public files
and may be viewed, printed, or downloaded remotely as described in the
Document Availability section below. Commenters on this proposal are
not required to serve copies of their comments on other commenters.
VII. Document Availability
38. 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 (https://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.
39. 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.
40. 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
ferconlinesupport@ferc.gov, or the Public Reference Room at (202) 502-
8371, TTY (202) 502-8659. Email the Public Reference Room at
public.referenceroom@ferc.gov.
By direction of the Commission.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2014-27949 Filed 11-25-14; 8:45 am]
BILLING CODE 6717-01-P
