Standards for Business Practices and Communication Protocols for Public Utilities, 12739-12747 [E9-6504]
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BILLING CODE 4910–13–P
DEPARTMENT OF ENERGY
Federal Energy Regulatory
Commission
18 CFR Part 38
[Docket No. RM05–5–013]
Standards for Business Practices and
Communication Protocols for Public
Utilities
March 19, 2009.
AGENCY: Federal Energy Regulatory
Commission.
ACTION: Notice of proposed rulemaking.
The Federal Energy
Regulatory Commission (Commission)
proposes to incorporate by reference in
its regulations the latest version
(Version 002.1) of certain business
practice standards adopted by the
Wholesale Electric Quadrant of the
North American Energy Standards
Board (NAESB). NAESB’s Version 002.1
Standards mainly modify NAESB’s
Version 001 Standards in response to
Order Nos. 890, 890–A, and 890–B.
DATES: Comments on the proposed rule
are due April 24, 2009.
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SUMMARY:
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You may submit comments
identified by Docket No. RM05–5–013,
by one of the following methods:
• Agency Web Site: https://ferc.gov.
Follow the instructions for submitting
comments via the eFiling link found in
the Comment Procedures Section of the
preamble.
• Mail: Commenters unable to file
comments electronically must mail or
hand deliver an original and 14 copies
of their comments to the Federal Energy
Regulatory Commission, Secretary of the
Commission, 888 First Street, NE.,
Washington, DC 20426. Please refer to
the Comment Procedures Section of the
preamble for additional information on
how to file paper comments.
FOR FURTHER INFORMATION CONTACT:
Ryan M. Irwin (technical issues), Office
of Energy Market Regulation, Federal
Energy Regulatory Commission, 888
First Street, NE., Washington, DC
20426, (202) 502–6454.
Valerie Roth (technical issues), Office of
Energy Market Regulation, Federal
Energy Regulatory Commission, 888
First Street, NE., Washington, DC
20426, (202) 502–8538.
Gary D. Cohen (legal issues), Office of
the General Counsel, Federal Energy
Regulatory Commission, 888 First
Street, NE., Washington, DC 20426,
(202) 502–8321.
SUPPLEMENTARY INFORMATION:
1. In this Notice of Proposed
Rulemaking (NOPR), the Federal Energy
Regulatory Commission (Commission)
proposes to amend its regulations at 18
CFR 38.2 under the Federal Power Act 1
to incorporate by reference the latest
version (Version 002.1) of certain
business practice standards adopted by
the Wholesale Electric Quadrant (WEQ)
of the North American Energy Standards
Board (NAESB). These revised
standards update earlier versions that
the Commission previously
incorporated by reference into its
regulations at 18 CFR 38.2 in Order Nos.
676, 676–B, 698, and 676–C,2 as well as
the Version 002.0 standards that NAESB
filed with the Commission on
ADDRESSES:
1 16
U.S.C. 791a, et seq.
for Business Practices and
Communication Protocols for Public Utilities, Order
No. 676, 71 FR 26,199 (May 4, 2006), FERC Stats.
& Regs., Regulations Preambles ¶ 31,216 (Apr. 25,
2006), reh’g denied, Order No. 676–A, 116 FERC
¶ 61,255 (2006), Order No. 676–B, 72 FR 21,095
(Apr. 30, 2007), FERC Stats. & Regs., Regulations
Preambles ¶ 31,246 (Apr. 19, 2007), Order No. 676–
C, 73 FR 43,848 (July 29, 2008), FERC Stats. & Regs.,
Regulations Preambles ¶ 31,274 (July 21, 2008),
Order No. 676–D, granting clarification and denying
reh’g, 124 FERC ¶ 61,317 (2008); Standards for
Business Practices for Interstate Natural Gas
Pipelines, Order No. 698, 72 FR 38,757 (July 16,
2007), FERC Stats. & Regs., Regulations Preambles
¶ 31,251 (June 25, 2007), order on clarification and
reh’g, Order No. 698–A, 121 FERC ¶ 61,264 (2007).
2 Standards
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September 2, 2008. The new and revised
standards that NAESB adopted in its
Version 002.0 and 002.1 standards
implement requirements of Order Nos.
890, 890–A, and 890–B.3 In addition,
NAESB developed standards to support
the Commission’s eTariff program,
modified the Commercial Timing Table
(WEQ–004 Appendix D) and
Transmission Loading Relief Standards
(WEQ–008) to provide clarity and align
NAESB’s business practice standards
with the reliability standards adopted
by the North American Electric
Reliability Corporation (NERC), revised
the Manual Time Error Correction
Standards (WEQ–006) to maintain
consistency with revised NERC
Standard BAL–004, and amended
certain ancillary services definitions
appearing in the Open Access SameTime Information Systems (OASIS)
Standards (WEQ–001) relating to the
inclusion of demand resources as part of
ancillary services.
I. Background
2. NAESB is a non-profit standards
development organization established in
January 2002 that serves as an industry
forum for the development of business
practice standards. These standards
promote a seamless marketplace for
wholesale and retail natural gas and
electricity.4 Since 1995, NAESB and its
predecessor, the Gas Industry Standards
Board, have been accredited members of
the American National Standards
Institute (ANSI), complying with ANSI’s
requirements that its standards reflect a
consensus of the affected industries.5
3. NAESB’s standards include
business practices that streamline the
transactional processes of the natural
gas and electric industries, as well as
communication protocols and related
standards designed to improve the
efficiency of communication within
each industry. NAESB supports all four
quadrants of the gas and electric
industries—wholesale gas, wholesale
electric, retail gas, and retail electric. All
participants in the gas and electric
industries are eligible to join NAESB
3 Preventing Undue Discrimination and
Preference in Transmission Service, Order No. 890,
72 FR 12,266 (March 15 2007), FERC Stats. & Regs.,
Regulations Preambles ¶ 31,241 (2007) (Order No.
890); order on reh’g, Order No. 890–A, 73 FR 2984
(Jan. 16, 2008), FERC Stats. & Regs., Regulations
Preambles ¶ 31,261 (2007) (Order No. 890–A); order
on reh’g and clarification, Order No. 890–B, 123
FERC ¶ 61,299 (2008).
4 See Standards for Business Practices and
Communication Protocols for Public Utilities,
Notice of Proposed Rulemaking, 72 FR 8318 (Feb.
27, 2007), FERC Stats. & Regs., Proposed Regs.
¶ 32,612 at P 3 (Feb. 20, 2007).
5 Id.
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and participate in standards
development.6
4. NAESB develops its standards
under a consensus process so that the
standards draw support from a wide
range of industry members. NAESB’s
procedures are designed to ensure that
all industry members can have input
into the development of a standard,
whether or not they are members of
NAESB.7 Furthermore, each standard
the WEQ adopts is supported by a
consensus of the six industry segments:
transmission, generation, marketer/
brokers, distribution/load serving
entities, end users, and independent
grid operators/planners. Under the WEQ
process, for a standard to be approved,
it must receive a super-majority vote of
67 percent of the members of the WEQ’s
Executive Committee with support from
at least 40 percent of each of the six
industry segments. For final approval,
67 percent of the WEQ’s general
membership must ratify the standards.8
5. In a series of Orders,9 the
Commission has incorporated certain of
NAESB’s standards into its regulations.
These standards include standards for
business practices as well as standards
and protocols for electronic
communication, and business practice
standards related to reliability standards
promulgated by NERC and approved by
the Commission. In Order No. 698, the
Commission also incorporated by
reference into its regulations the NAESB
Gas/Electric Coordination Standards
(WEQ–011). These standards
established communication protocols
between interstate natural gas pipelines
and electric power plant operators
designed to enhance reliability by
improving communication between the
gas and electric industries relating to the
scheduling of gas-fired generators.
6. On September 2, 2008, NAESB
reported to the Commission that its
WEQ Executive Committee had
approved Version 002.0 of its business
practice standards.10 The standards
were published on September 30, 2008.
NAESB states that its leadership
responded to Order Nos. 890, 890–A,
and 890–B, by requesting that its
Electronic Scheduling Subcommittee/
Information Technology Subcommittee
(ESS/ITS) and its Business Practice
Subcommittee (BPS) coordinate efforts
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6 Id.
P 4.
P 5.
8 Standards for Business Practices and
Communication Protocols for Public Utilities,
Notice of Proposed Rulemaking, 70 FR 28,222 ((May
17, 2005), FERC Stats. & Regs., Proposed Regs. ¶
32,582, P 13 (May 9, 2005).
9 See n.2 supra.
10 See NAESB supplemental report dated Nov. 14,
2008.
7 Id.
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to address the issues raised by those
orders. NAESB also states that, in
formulating its work schedule, it
distinguished between the findings in
Order No. 890 that called for a specific
completion date and other tasks that
were less time sensitive and developed
a work schedule to allow completion of
the more time-sensitive items earlier in
the process. As part of this process,
NAESB states that the ESS/ITS and BPS
worked in close coordination with the
pertinent NERC committees to draft
business practice standards on Order
No. 890 issues that complement NERC’s
reliability standards related to these
issues, so that the standards for both
organizations will be consistent.11
7. While the majority of the revisions
made in NAESB’s Version 002.0
Standards were adopted in response to
Order Nos. 890, 890–A, and 890–B, the
Version 002.0 Standards also include:
(1) The eTariff related standards
developed by NAESB in coordination
with Commission staff and the electric,
gas, and oil industries; (2) modifications
to WEQ’s existing interconnection time
monitor standards in the Manual Time
Error Corrections Standards (WEQ–006)
to ensure the NAESB standards remain
consistent with NERC’s BAL–004
standard; and (3) the explicit inclusion
of demand resources in the definitions
of certain ancillary services.
8. On February 19, 2009, NAESB
notified the Commission that the WEQ
Executive Committee had approved its
Version 002.1 standards, which include
both new standards and modifications
to existing Version 002.0 standards.12
The Version 002.1 standards include
new standards related to capacity
benefit margin and rollover rights, and
were developed in response to Order
Nos. 890, 890–A, and 676. Additional
modifications included in the Version
002.1 standards include: (1)
Modifications to existing standards
pertaining to rollover rights; (2)
modifications to the Coordinate
Interchange Timing Tables contained in
Appendix D of the Coordinate
Interchange Standards (WEQ–004) to
clarify the differences in timing
requirements for the Western Electricity
Coordinating Council and all other
interconnections, complementary to the
NERC reliability standards; and (3)
modifications to the Transmission
Loading Relief—Eastern Interconnection
Standards (WEQ–008) to add clarity and
11 The Commission addresses the associated
reliability standards proposed by NERC in a
companion Notice of Proposed Rulemaking being
issued in Docket No. RM08–19–000.
12 On March 12, 2009, NAESB submitted a report
to the Commission documenting its ratification of
the Version 002.1 standards.
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ensure that the business practice
standards are consistent with NERC
reliability standard IRO–006.
9. In total, NAESB’s WEQ Version
002.1 business practice standards
include the following standards:
• Open Access Same-Time
Information Systems (OASIS), Version
1.5 (WEQ–001);
• Open Access Same-Time
Information Systems (OASIS) Standards
& Communications Protocols, Version
1.5 (WEQ–002);
• Open Access Same-Time
Information Systems (OASIS) Data
Dictionary, Version 1.5 (WEQ–003);
• Coordinate Interchange (WEQ–004);
• Area Control Error (ACE) Equation
Special Cases (WEQ–005);
• Manual Time Error Correction
(WEQ–006);
• Inadvertent Interchange Payback
(WEQ–007);
• Transmission Loading Relief—
Eastern Interconnection (WEQ–008);
• Standards of Conduct for Electric
Transmission Providers (WEQ–009);
• Contracts Related Standards (WEQ–
010);
• Gas/Electric Coordination (WEQ–
011);
• Public Key Infrastructure (PKI)
(WEQ–012);
• Open Access Same-Time
Information Systems (OASIS)
Implementation Guide, Version 1.5
(WEQ–013); and
• WEQ/WGQ eTariff Related
Standards (WEQ–014).
II. Discussion
10. We propose to incorporate by
reference into the Commission’s
regulations the NAESB WEQ Version
002.1 standards, with certain
exceptions.13 The Version 002.1
13 We do not propose to incorporate by reference
in the Commission’s regulations the following
standards: Standards of Conduct for Electric
Transmission Providers (WEQ–009); Contracts
Related Standards (WEQ–010); and WEQ/WGQ
eTariff Related Standards (WEQ–014). We do not
propose to incorporate WEQ–009 into the
Commission’s regulations because it contains no
substantive standards and merely serves as a
placeholder for future standards. We do not propose
to incorporate WEQ–010 because this standard
contains an optional NAESB contract regarding
funds transfers and the Commission does not
require utilities to use such contracts. In addition,
we do not propose to incorporate WEQ–014, eTariff
Related Standards, because the Commission already
has adopted standards and protocols for electronic
tariff filing based on the NAESB standards. See
Electronic Tariff Filings, 73 FR 57,515 (Oct. 3,
2008), FERC Stats. & Regs. ¶ 31,276 (Sept. 19, 2008).
Also, we do not propose to incorporate NAESB’s
interpretation of its standards on Gas/Electric
Coordination (WEQ–011) by reference in the
regulations. While interpretations may provide
useful guidance, they are not determinative and we
will not require utilities to comply with
interpretations. Lastly, as discussed more
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standards will update the Version 001
standards currently incorporated by
reference into the Commission’s
regulations.14
11. NAESB adopted the majority of
the changes in the Version 002.1
standards to support Order Nos. 890,
890–A, and 890–B, in which the
Commission addressed and remedied
opportunities for undue discrimination
under the pro forma open access
transmission tariff (OATT). While many
of the Version 002.1 standards simply
revise or update existing standards,
some of these standards prescribe new
business practices to accommodate the
reforms adopted in Order No. 890. For
example, NAESB has developed
business practice and technical
standards to support conditional firm
service. Additionally, NAESB
developed standards for the posting of
narratives explaining changes in
available transfer capability and total
transfer capability, underlying load
forecast assumptions for available
transfer capability calculations and
actual peak load, as well as metrics
relating to the provision of transmission
service and the completion of planning
studies. Specific additions and revisions
included in the NAESB WEQ Version
002.1 standards are discussed below.
12. NAESB approved the Version
002.1 standards under its consensus
procedures.15 Adoption of consensus
standards is appropriate because the
consensus process helps to ensure the
reasonableness of the standards by
requiring that the standards draw
support from a broad spectrum of all
segments of the industry. Moreover,
since the industry itself has to conduct
business under these standards, the
Commission’s regulations should reflect
those standards that have the widest
possible support. In section12(d) of the
National Technology Transfer and
Advancement Act of 1995 (NTT&AA),
Congress affirmatively requires federal
specifically in note 18, infra, we do not propose to
incorporate by reference certain portions of WEQ–
001.
14 In this NOPR, the Commission is proposing to
incorporate by reference into the Commission’s
regulations Version 002.1 of NAESB’s business
practice standards. These standards have been
updated to include all revisions to the standards
since Version 001. Thus, some of the revisions
included in Version 002.1 were made from the
Version 002.0 standards and others were made from
the Version 001 standards. Given that NAESB’s
Version 002.1 Standards represent the most up-todate version of NAESB’s business practice
standards, we believe it is more productive for this
NOPR to address this set of standards, rather than
the Version 002.0 standards. Given our proposals in
this NOPR, we do not see the need to propose any
separate action addressing NAESB’s Version 002.0
standards. Therefore, the proceeding in Docket No.
RM05–5–007 is moot.
15 See P 4 supra.
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agencies to use technical standards
developed by voluntary consensus
standards organizations, like NAESB, as
a means to carry out policy objectives or
activities determined by the agencies
unless use of such standards would be
inconsistent with applicable law or
otherwise impractical.16
13. We propose that, once the
Commission incorporates these
standards by reference into its
regulations, public utilities must
implement these standards even before
they have updated their tariffs to
incorporate these changes. The
Commission is also proposing,
consistent with our regulation at 18 CFR
35.28(c)(1)(vii), to require each public
utility to revise its OATT to include the
Version 002.1 WEQ standards that we
are proposing to incorporate by
reference herein. For standards that do
not require implementing tariff
provisions, the Commission is
proposing to permit the public utility to
incorporate the WEQ standard by
reference in its OATT. We are not,
however, proposing to require a separate
tariff filing to accomplish this change.
Consistent with our prior practice, we
are proposing to give public utilities the
option of including these changes as
part of an unrelated tariff filing.17
A. OASIS Standards
14. In the NAESB WEQ Version 002.1
standards, NAESB has developed new
standards and revised existing standards
relating to OASIS to ensure consistency
with certain policies articulated by the
Commission in Order Nos. 890, 890–A
and 890–B. A number of standards that
the Commission directed transmission
providers to develop have been
included by WEQ in the Version 002.1
OASIS Standards, which include: (1)
Open Access Same-Time Information
Systems (OASIS), Version 1.5 (WEQ–
001); (2) Open Access Same-Time
Information Systems (OASIS) Standards
& Communication Protocols, Version 1.5
(WEQ–002); (3) Open Access SameTime Information Systems (OASIS) Data
Dictionary, Version 1.5 (WEQ–003); and
(4) Open Access Same-Time Information
Systems (OASIS) Implementation
Guide, Version 1.5 (WEQ–013). In
addition, NAESB’s WEQ Version 002.1
standards include various minor
revisions to the OASIS Standards.
15. In this NOPR, we propose to
incorporate by reference into the
Commission’s regulations the Version
002.1 OASIS Standards (i.e., WEQ–001,
16 Pub L. No. 104–113, 12(d), 110 Stat. 775 (1996),
15 U.S.C. 272 note (1997).
17 See Order No. 676, P 100.
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WEQ–002, WEQ–003, and WEQ–013),
with certain exceptions.18
16. We note that Standard 001–13.1.2,
which requires the posting of Standards
of Conduct-related information,
contains references to various
Commission regulations that were
subsequently revised in Order No.
717.19 Thus, these references are no
longer accurate and the information
required to be posted by this standard
does not conform, in some instances, to
the Commission’s current requirements.
We understand that NAESB is working
on making a revision to this standard.
Because the standard contains posting
requirements that are still applicable,
we propose to incorporate this standard
by reference. However, we clarify that,
until we adopt a revised standard, we
do not propose to require public utilities
to comply with any portion of the
standard that requires information to be
posted in a manner inconsistent with
Order No. 717.
1. Conditional Firm Service
17. In the OASIS Standards, NAESB
has included a number of standards that
support conditional firm service as
envisioned by the Commission in Order
Nos. 890 and 890–A. NAESB has
developed business practice standards
to facilitate the implementation of
conditional firm service, relying on the
Commission’s description of the
attributes of that service in Order No.
890.20 Specifically, NAESB developed
Standards 001–21 through 001–21.5.5
on the Conditional Curtailment Option,
the term that NAESB uses to describe
conditional firm service. These
standards address: (1) The limitations
and conditions under which the
Conditional Curtailment Option is
offered; (2) the posting requirements for
information concerning a Conditional
Curtailment Option reservation and its
curtailment criteria; (3) the process for
performing the biennial reassessment;
(4) the curtailment of a Conditional
Curtailment Option reservation; and (5)
the redirect, transfer, and resale of a
Conditional Curtailment Option
reservation.
18 Consistent with the Commission’s
determination in Order Nos. 676 and 676–C, we are
not proposing to incorporate by reference Standards
001–0.1, 001–0.9 through 001–0.13, and 001–1.0
through 001–1.8 because these standards merely
restate Commission regulations and Standard 001–
9.7 because it is not consistent with the
Commission’s policy on redirects. Order No. 676, P
51 & n.40.
19 Standards of Conduct for Transmission
Providers, Order No. 717, 73 FR 63,796 (Oct. 27,
2008), FERC Stats. & Regs ¶ 31,280 (2008), reh’g
pending.
20 Order No. 890, P 1043–47.
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18. Additionally, NAESB has
developed other standards related to
conditional firm service in response to
the Commission’s requests for the
development of specific standards in
Order Nos. 890 and 890–A.21
Specifically, NAESB has developed
Standard 001–21.1.6, which requires
that transmission providers offer shortterm firm service to conditional firm
customers as capacity (that would
alleviate the constraints associated with
a Conditional Curtailment Option
reservation) becomes available. In
response to Order No. 890–A, NAESB
has created and modified standards in
WEQ–001, Appendix C to WEQ–001,
WEQ–002, WEQ–003, WEQ–008 and
WEQ–013, to provide a consistent set of
tracking capabilities and business
practices for tagging, as a means to
implement conditional firm service.
21. Standard 001–16.1 requires
Transmission Providers to respond to
questions about the methodology for
calculating available transfer capability
and available flowgate capability. We
interpret this standard as requiring the
Transmission Provider to provide data
when necessary to respond to the
methodology questions in order to be
consistent with the requirement in
Order No. 890 that transmission
providers must, upon request, ‘‘make
available all data used to calculate
[available transfer capability] and [total
transfer capability] for any constrained
paths and any system planning studies
or specific network impact studies
performed for customers.’’25
22. Standard 001–17 governs the
posting of the underlying load forecast
assumptions used by transmission
providers to calculate available transfer
capability and, on a daily basis, their
2. Available Transfer Capability
actual daily peak load for the prior
day.26
19. NAESB developed several
23. Another standard developed by
standards related to available transfer
NAESB in response to Order No. 890 is
capability in response to Order No. 890.
Standard 001–18, which relates to
First, NAESB modified WEQ–001 to
postbacks of capacity to available
support the transparency reporting and
transfer capability. In Order No. 890, the
related functions required by Order No.
Commission directed public utilities,
890. Second, in response to the
working through NERC, to modify
available transfer capability related
available transfer capability related
posting requirements established by the
standards to require transmission
Commission in Order No. 890, NAESB
providers to account for postbacks of
has developed business practice
redirected services and counterflows in
standards in WEQ–001 (including
their non-firm available transfer
Standards 001–14, 001–15, 001–17,
capability calculations.27 In
001–18, 001–19, 001–20 and Appendix
coordination with NERC, NAESB
D), WEQ–002, WEQ–003 and WEQ–013
concluded that a business practice
(including Appendices A and B).22
standard addressing counterflows was
20. Standard 001–14 is designed to
unnecessary because NERC had
meet the requirement in Order No. 890
addressed it in the reliability standards,
for transmission providers to post a
but that the postback issue necessitated
narrative with regard to monthly or
the creation of a related business
yearly available transfer capability
practice standard. Thus, NAESB
values in instances when available
developed Standard 001–18 and a
transfer capability remains unchanged
related Appendix D to WEQ–001 to
at a value of zero for six months or
account for postbacks of capacity to
longer.23 Standard 001–15 is designed to available transfer capability.
meet the requirement in Order No. 890
24. Also in response to Order No.
for transmission providers to post a
890,28 NAESB has developed standards
brief, but specific, narrative explanation that establish a consistent approach for
of the reason for a change in monthly
determining the amount of transfer
and yearly available transfer capability
capability that a transmission provider
values on a constrained path when a
can set aside for its native load and
monthly or yearly available transfer
other committed uses. Specifically,
capability value changes as a result of a
Standard 001–19 addresses
10 percent change in total transfer
grandfathered agreements and Standard
capability. This standard requires the
001–20 addresses rollover rights.
narrative explanation to include the
Furthermore, NAESB has developed
specific events that gave rise to the
business practice standards that
change and the new values for available complement NERC’s reliability
transfer capability on that path.24
standards for existing transmission
21 Order
No. 890, P 1078; Order No. 890–A, P 592.
22 Order No. 890, P 369 and 371.
23 Id. P 371.
24 Id. P 369.
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25 Order
No. 890, P 348.
26 Id. P 413.
27 Id. P 212.
28 Id. P 243.
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commitments. These standards appear
in WEQ–001, WEQ–003, and WEQ–013.
25. One of the Commission’s
objectives in Order No. 890 was to
reduce the potential for transmission
providers to unduly discriminate when
they provide transmission service by
limiting their discretion to calculate
available transfer capability using
unknown assumptions and
methodologies.29 For this reason, the
Commission found that ‘‘all [Available
Transfer Capability] components (i.e.,
[total transfer capability], [existing
transmission commitments], [capacity
benefit margin], and [transmission
reliability margin]) and certain data
inputs, data exchange, and assumptions
be consistent and that the number of
industry-wide ATC calculation formulas
be few in number, transparent and
produce equivalent results.’’30
26. The standards establish a
mechanism for posting available transfer
capacity for grandfathered agreements.
The standards, however, provide for a
different approach to posting
grandfathered agreements using the
Flowgate Methodology. Under Standard
001–19.1, transmission providers using
the other available transfer capability
calculation methodologies must post the
aggregate MW value for the
grandfathered agreements and such data
must be posted so that it can be viewed
and queried using the systemdata
template. Standard 1–19.1.2 provides an
exception for transmission providers
using the Flowgate Methodology from
the requirement to post an aggregate
MW value that can be viewed and
queried using the systemdata template.
Instead, it requires that the transmission
provider must post a list of
Grandfathered Agreements with MW
values that are expected to be scheduled
or expected to flow. The standards,
therefore, permit transmission providers
using Available Transfer Capability
(ATC) calculation methodologies other
than the Flowgate Methodology to post
less detailed information concerning
grandfathered agreements than those
using the Flowgate Methodology, but
information concerning grandfathered
agreements posted by those using the
Flowgate Methodology is not accessible
through the systemdata template.
3. ATC Information Link
27. The WEQ Version 002.1 standards
establish the procedure for input of total
transfer capability and available transfer
29 The Commission reasoned that the potential for
discrimination does not lie primarily in the choice
of an available transfer capability calculation
methodology, but rather in the consistent
application of its components. Id. P 208.
30 Order No. 890, P 207.
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capability methodologies and values to
be used by public utilities in calculating
their total transfer capability and
available transfer capability. NAESB
developed these business practice
standards in close coordination with the
NERC available transfer capability
drafting team. Furthermore, NERC and
NAESB determined that the standards
contained in NERC MOD–003 were
better classified as business practice
standards than reliability standards. As
a result, NAESB developed Standard
001–13.1.5, which provides for an ATC
Information Link on OASIS. This
standard requires that Transmission
Providers post several links on the ATC
Information Link, including links to
their Available Transfer Capability
Implementation Document (as specified
in NERC reliability standard MOD–001–
1), Capacity Benefit Margin
Implementation Document (as specified
in NERC reliability standard MOD–004–
1), and Transmission Reserve Margin
Implementation Document (as specified
in NERC reliability standard MOD–008–
1).31
28. Standard 001–13.1.5 provides that
the posting of information on the ATC
Information Link would be ‘‘subject to
the Transmission Provider’s ability to
redact certain provisions due to market,
security or reliability sensitivity
concerns.’’ In Order No. 890, the
Commission acknowledged that a
transmission provider may require
someone seeking access to CEII
materials or proprietary customer
information to sign a confidentiality
agreement.32 We expect the provision in
NAESB Standard 001–13.1.5 for a
transmission provider to redact
sensitive information from postings to
be implemented by a transmission
provider subject to the OATT in a
manner consistent with its obligation to
make that information available to those
with a legitimate need to access the
information, subject to appropriate
confidentiality restrictions.33
4. Capacity Benefit Margin
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29. In addition to requiring that
transmission providers include a link to
their Capacity Benefit Margin
Implementation Document on the ATC
Information Link, as discussed above,
the Version 002.1 standards allow for
31 These three implementation documents are
described in the NERC reliability standards, which
are addressed in a companion Notice of Proposed
Rulemaking being issued in Docket No. RM08–19–
000.
32 Order No. 890, P 326.
33 See Order No. 890, P 403–04 (requiring the
development of standard disclosure for timely
disclosure of CEII information to those with a
legitimate need for it).
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auditing of the use of capacity benefit
margin using OASIS. This standard was
developed in response to Order No. 890
and 890–A,34 and necessitated
modifications to WEQ–001, WEQ–002,
WEQ–003, and WEQ–013. While the
Commission also directed that public
utilities, working through NERC and
NAESB, ‘‘develop clear standards for
how the CBM value shall be
determined, allocated across
transmission paths, and used’’ in Order
No. 890,35 the NAESB subcommittees
determined that the NERC reliability
standard MOD–004 adequately
addressed this directive and therefore it
was not necessary to develop any
supporting NAESB business practice
standards.36
30. On March 6, 2009, NERC filed
comments with the Commission
concerning Standard 004–18.2,
suggesting that this Standard might be
in conflict with Requirement 12 of
NERC Reliability Standard MOD–004–
1.37 After comparing the two standards,
we do not believe that they are in
conflict. Incorporation by reference of
the NAESB Standard would not seem to
relieve an entity from the independent
obligation to comply with the NERC
Reliability Standard.
for transmission service that have been
rejected; and (2) the number of affiliate
versus non-affiliate requests for
transmission service that have been
made. Furthermore, this posting is
required to detail the length of service
request (e.g., short-term or long-term)
and the type of service requested (e.g.,
firm point-to-point, non-firm point-topoint or network service).38 Under the
‘‘Transmission Study Metrics’’ link,
transmission providers must post the
information concerning performance
metrics relating to system impact and
facilities studies 39 required by the
Commission’s regulations at 18 CFR
37.6(h). Under the ‘‘Redispatch Cost’’
link, transmission providers must post
information required by the
Commission’s regulations at 18 CFR
37.6(j)(2) regarding redispatch costs.
This information must include each
transmission provider’s monthly
average cost of redispatch for each
internal congested transmission facility
or interface over which it provides
redispatch service using planning
redispatch or reliability redispatch
under the pro forma OATT and a high
and low redispatch cost for the month
for each of these same transmission
constraints.40
5. Performance Metrics
31. In response to several posting
requirements in Order No. 890, NAESB
developed and adopted Standard 001–
13.1.3, which describes the Performance
Metrics Link that transmission
providers must have on the OASIS.
Under the ‘‘Transmission Service
Requests Metrics’’ link, transmission
providers are required to post the
information required by the
Commission’s regulations at 18 CFR
37.6(i), which includes: (1) The number
of affiliate versus non-affiliate requests
6. Rebid of Partial Service
32. The WEQ Version 002.1 standards
cover the rebid of partial service across
a single transmission provider’s system.
In response to Order No. 890, NAESB
adopted business practice standards in
its Version 002.1 standards to
complement the OASIS Standards and
Communication Protocol standards that
it had already developed for the rebid of
partial service across a single
Transmission Provider’s system. These
revisions appear in the OASIS
Standards.
34 Order
No. 890, P 262 and Order No. 890–A, P
68.
35 Order No. 890, P 257. See also, Order No. 890–
A, P 68 and 83.
36 See, NAESB Version 002.1 cover letter filed on
Feb. 19, 2009 at 69.
37 Standard 004–18.2 states that: ‘‘The
Transmission Provider may require the
specification of a unique Transmission Reservation
Number in association with any request for use of
CBM. Such requirement shall be fully documented
in the Transmission Provider’s Business Practices
posted on OASIS. The TSP reserves the right to
deny any RFI requesting use of CBM if the required
Transmission Reservation Number is not specified.’’
Requirement 12 of Standard MOD–004–1 requires
transmission providers to approve, within the
bounds of reliable operation, any arranged
interchange using CBM that is submitted by an
energy deficient entity under energy emergency
alerts, if (1) CBM is available, (2) an emergency alert
is declared within the balancing authority of the
energy deficient entity, and (3) the energy deficient
entity is located within the transmission provider’s
service area.
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7. Pre-Confirmed Transmission Service
Requests
33. In WEQ–001, WEQ–002 and
WEQ–013, NAESB has developed
business practice standards to
complement the Commission’s policies
regarding pre-confirmed transmission
service requests, as articulated in Order
No. 890. As required by Order No. 890,
these standards ‘‘give priority only to
pre-confirmed non-firm point-to-point
transmission service requests and shortterm firm point-to-point transmission
service requests’’ 41 and provide that
‘‘longer duration requests for
transmission service will continue to
38 Order
No. 890, P 413.
P 1318.
40 Id. P 1162.
41 Id. P 1401.
39 Id.
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have priority over shorter duration
requests for transmission service, with
pre-confirmation serving as a tie-breaker
for requests of equal duration.’’ 42 In
addition, as requested by the
Commission in Order No. 890, NAESB
has developed a consensus solution to
the question of whether a transmission
customer should be prohibited from
changing a request into a pre-confirmed
request.43
8. Ancillary Services and Demand
Response
34. NAESB amended the definitions
of certain ancillary services contained in
WEQ–001 to reflect the definitions
contained in the pro forma OATT as
revised by Order No. 890. These
definitions describe the types of
ancillary services that are offered on
OASIS. The revisions to the definitions
reflect the possible role of demand
resources in the provision of ancillary
services by identifying non-generation
resources capable of providing a given
ancillary service as potential providers
of the service. These modifications
include revisions to Standards 001–
2.5.2 through 001–2.5.6.44
9. Rollover Rights
35. In the Version 002.1 standards,
NAESB has included new standards and
modifications to existing standards in
WEQ–001, WEQ–003, and WEQ–013
that relate to rollover rights. As
discussed above, these standards were
developed in part as a response to Order
No. 890,45 in which the Commission
directed public utilities, working
through NERC and NAESB, to develop
standards that establish a consistent
approach for determining the amount of
transfer capability that a transmission
provider can set aside for its native load
and other committed uses. However,
these standards also include business
practices relating to rollover rights; for
example, Standard 001–20 describes the
process by which Transmission
Customers may exercise their rollover
rights.46 The modifications to the
standards relating to rollover rights that
NAESB has included in its Version
42 Id.
43 Id.
P 1392.
November 14, 2008, NAESB reported that
these standards, among others, have been approved
by the WEQ Executive Committee and ratified by
the NAESB membership.
45 Order No. 890, P 243.
46 Although we have previously determined not
to incorporate Standard 001–9.7 dealing with
rollover rights and redirects, we are proposing to
incorporate by reference Standard 001–9.5.3, which
refers to the not-accepted Standard 001–9.7. The
reference, however, does not affect the meaning of
the Standard 001–9.5.3, and any redirect issues are
governed by the Commission’s pro forma Open
Access Transmission Tariff.
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44 On
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002.1 filing 47 are the result of only the
first part of a two part process through
which NAESB is working to develop
standards that are consistent with the
Commission’s policy on rollover rights
as described in Order Nos. 676, 890, and
890–A.48
10. Insufficient Transfer Capacity
36. Standard 001–4.7.1 provides the
OASIS posting procedure to be followed
when there is insufficient transfer
capacity to satisfy a customer’s request
and partial service is either not required
or is unavailable.49 While we propose to
incorporate this standard by reference
into our regulations, we note that it does
not address or otherwise limit other
obligations that might exist under the
pro forma OATT, such as the
requirement in section 15.2 to perform
a System Impact Study.50
11. Miscellaneous OASIS Standards
37. In Order No. 890, the Commission
decided that NAESB would be the best
entity to address the issue of making
OASIS platforms accessible on nonWindows/Explorer computers.51
NAESB has developed standards
concerning this issue as part of its
OASIS Standards. Additionally, in the
Version 002.1 standards NAESB
modified WEQ–002, WEQ–003, and
WEQ–013 to complement the new and
revised standards adopted in response
to Order No. 890. These revisions
support annotations for available
transfer capability, load forecast and
actual load, rebid of partial service, preconfirmation priority, and conditional
firm service. NAESB also added an
Appendix C to WEQ–001 that provides
a list of broad based OASIS exemptions
that have been granted to specific
groups in the electric industry by the
47 NAESB Version 002.1 cover letter filed on Feb.
19, 2009 at 7.
48 NAESB reports, id., that part one of this process
included revisions it made to the definition of
‘‘unexercised rollover rights’’ in WEQ–001, and
modifications to the existing standards in WEQ–
001, WEQ–003 and WEQ–013. NAESB further
reports, id., that in part two of this process it
intends to revise Standard 001–9.7 as part of its
Order No. 890 work plan, and to include this
revision in its Version 002.2 standards.
49 Standard 001–4.7.1 states: ‘‘If the Transmission
Provider determines there is insufficient transfer
capability available to grant the Transmission
Customer’s request and there is no obligation to
provide Partial Service (or Partial Service is also not
available in cases where the Transmission Provider
is obligated to provide Partial Service), the
Transmission Provider may respond by setting the
request status to REFUSED.’’
50 Section 15.2 of the pro forma OATT states that:
‘‘In the event sufficient transfer capability may not
exist to accommodate a service request, the
Transmission Provider will respond by performing
a System Impact Study.’’
51 Order No. 890, P 1392.
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Commission through its Orders and
regulations.
B. Business Practice Standards to
Coordinate With Reliability Standards
Unrelated to Order No. 890
38. In the Version 002.1 standards for
Coordinate Interchange, (WEQ–004),
Area Control Error (ACE) Equation
Special Cases (WEQ–005), Inadvertent
Interchange Payback (WEQ–007), and
Transmission Loading Relief—Eastern
Interconnection (WEQ–008), NAESB has
made minor modifications to the format
of the standards and has revised section
titles.
39. In the Version 002.1 standards,
NAESB added Standard 004–18 to the
Coordinate Interchange Standards
(WEQ–004), which describes the
requirements for submitting a Request
for Interchange that uses a Transmission
Provider’s capacity benefit margin to
support energy imports into a load
balancing authority area served by the
Transmission Provider. Additionally,
the Version 002.1 standards include
modifications to the timing table in
Appendix D of the Coordinate
Interchange Standards (WEQ–004). The
NERC/NAESB Joint Interchange
Scheduling Working Group modified
previous versions of this table by
dividing it into two separate tables, one
that provides the timing requirements
for the Western Electricity Coordinating
Council and one that provides the
timing requirements for all other
interconnections. These tables were
modified to reflect time changes for
Generator-Provider Entity, Load-Serving
Entity, and Purchase-Selling Entity
market assessments so that they are
concurrent with the Balancing
Authority and Transmission Service
Provider reliability assessments. Also,
timeline diagrams for each table were
added for clarification.52
40. In the Version 002.1 standards for
Manual Time Error Correction (WEQ–
006), NAESB has included revisions to
maintain conformance with NERC
Standard BAL–004.53 NAESB states that
NERC recently revised Standard BAL–
004 to remove inappropriate
requirements on reliability coordinators
that voluntarily agree to serve as
Interconnection Time Monitors.54 In
52 NAESB Version 002.1 cover letter filed on Feb.
19, 2009 at 8.
53 NAESB reports that this item was voted out of
the subcommittee on June 4, 2008, passed an
Executive Committee vote on Aug. 19, 2008, and
the ratification process will complete on Sep. 22,
2008. In its supplemental report dated Nov. 14,
2008, NAESB advised that this revision was ratified
on Sep. 22, 2008.
54 NERC filed Standard BAL–004–1 with the
Commission for approval in Docket Nos. RM09–13–
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addition, NAESB has revised a section
title in this standard.
41. In the Version 002.1 standards for
Transmission Loading Relief—Eastern
Interconnection (WEQ–008), NAESB
made a minor modification to a
standard to accommodate conditional
firm service and the use of capacity
benefit margin. Additionally, NAESB
modified these standards to clarify the
intended use of the nine Transmission
Loading Relief levels addressed in the
standards, and to ensure consistency
between WEQ–008 and the NERC
reliability standard IRO–006, both of
which address transmission loading
relief. We propose to update the
Commission’s regulations to incorporate
by reference Version 002.1 of these
standards.
C. Other Standards
1. Gas/Electric Coordination Standards
42. In the Version 002.1 standards for
Gas/Electric Coordination (WEQ–011),
NAESB made a minor correction to
rearrange the definitions so that they
appear in alphabetical order. We
propose to incorporate by reference into
the Commission’s regulations Version
002.1 of this standard.
2. Public Key Infrastructure (PKI)
Standards
43. In the Version 002.1 standards for
Public Key Infrastructure (WEQ–012),
NAESB made a minor revision to the
endnote. We propose to incorporate by
reference into the Commission’s
regulations the updated Version 002.1 of
this standard.
III. Notice of Use of Voluntary
Consensus Standards
44. Office of Management and Budget
Circular A–119 (section 11) (February
10, 1998) provides that federal agencies
should publish a request for comment in
a NOPR when the agency is seeking to
issue or revise a regulation proposing to
adopt a voluntary consensus standard or
a government-unique standard. In this
NOPR, the Commission is proposing to
incorporate by reference a voluntary
consensus standard developed by the
NAESB WEQ.
IV. Information Collection Statement
45. The following collections of
information contained in this proposed
Number of
respondents
Data collection
rule have been submitted to the Office
of Management and Budget (OMB) for
review under section 3507(d) of the
Paperwork Reduction Act of 1995, 44
U.S.C. 3507(d). The Commission solicits
comments on the Commission’s need for
this information, whether the
information will have practical utility,
the accuracy of the provided burden
estimates, ways to enhance the quality,
utility, and clarity of the information to
be collected, and any suggested methods
for minimizing respondents’ burden,
including the use of automated
information techniques. 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.
46. The following burden estimate is
based on the projected costs for the
industry to implement revisions to the
WEQ Standards currently incorporated
by reference into the Commission’s
regulations at 18 CFR 38.2 and to
implement the new standards adopted
by NAESB that we propose here to
incorporate by reference.
Number of
responses per
respondent
Hours per
response
Total number
of hours
FERC–516 .......................................................................................................
FERC–717 .......................................................................................................
176
176
1
1
6
12
1056
2112
Totals ........................................................................................................
........................
........................
........................
3168
Total Annual Hours for Collection:
(Reporting and Recordkeeping, (if
appropriate)) = 3168 hours.
Information Collection Costs: The
Commission seeks comments on the
costs to comply with these
requirements. It has projected the
average annualized cost for all
respondents to be the following: 55
FERC–516
FERC–717
$390,720
N/A
$781,440
Total Annualized Costs ....................................................................................................................................
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Annualized Capital/Startup Costs ............................................................................................................................
Annualized Costs (Operations & Maintenance) ......................................................................................................
390,720
781,440
47. OMB regulations 56 require OMB
to approve certain information
collection requirements imposed by
agency rule. The Commission is
submitting notification of this proposed
rule to OMB. These information
collections are mandatory requirements.
Title: Standards for Business Practices
and Communication Protocols for
Public Utilities (formerly Open Access
Same Time Information System) (FERC–
717); Electric Rate Schedule Filings
(FERC–516).
Action: Proposed collection.
OMB Control No.: 1902–0096 (FERC–
516); 1902–0173 (FERC–717).
Respondents: Business or other for
profit, (Public Utilities—Not applicable
to small businesses).
Frequency of Responses: One-time
implementation (business procedures,
capital/start-up).
Necessity of the Information: This
proposed rule, if implemented would
supplement the changes the
Commission required in Order Nos. 890,
890–A, and 890–B to require that
transmission services are provided on a
basis that is just, reasonable and not
unduly discriminatory. In addition this
proposed rule would upgrade the
Commission’s current business practice
and communication standards.
000 and RM06–16–000 on March 12, 2009 and this
filing is currently pending before the Commission.
55 The total annualized costs for the information
collection is $1,172,160. This number is reached by
multiplying the total hours to prepare responses
(3168) by an hourly wage estimate of $370 (a
composite estimate that includes legal, technical
and support staff rates, $250 + $95 + $25 = $370),
3168 hours × $370/hour = $1,172,160.
56 CFR 1320.11.
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Specifically, these standards include
several modifications to the existing
business practice standards as well as
creating new standards to provide
additional functionality for OASIS
transactions. These practices will ensure
that potential customers of open access
transmission service receive access to
information that will enable them to
obtain transmission service on a nondiscriminatory basis and will assist the
Commission in maintaining a safe and
reliable infrastructure. The
implementation of these standards and
regulations is necessary to increase the
efficiency of the wholesale electric
power grid.
48. The information collection
requirements of this proposed rule are
based on the transition from
transactions being made under the
existing business practice standards to
conducting such transactions under the
proposed revisions to these standards
and to account for the burden associated
with the new standards the Commission
proposes to incorporate in its
regulations.
49. Internal Review: The Commission
has reviewed the revised business
practice standards and has made a
preliminary determination that the
proposed revisions are necessary to
maintain consistency between the
business practice standards and
reliability standards on this subject. The
Commission has assured itself, by
means of its internal review, that there
is specific, objective support for the
burden estimate associated with the
information requirements.
50. Interested persons may obtain
information on the reporting
requirements by contacting the
following: Federal Energy Regulatory
Commission, Attn: Michael Miller,
Office of the Executive Director, 888
First Street, NE., Washington, DC 20426,
Tel: (202) 502–8415/Fax: (202) 273–
0873, e-mail: michael.miller@ferc.gov.
51. Comments concerning the
information collections proposed in this
NOPR and the associated burden
estimates, should be sent to the contact
listed above 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)
395–7345, fax: (202) 395–7285].
V. Environmental Analysis
52. 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
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environment.57 The Commission has
categorically excluded certain actions
from these requirements as not having a
significant effect on the human
environment.58 The actions proposed
here fall within categorical exclusions
in the Commission’s regulations for
rules that are clarifying, corrective, or
procedural, for information gathering,
analysis, and dissemination, and for
sales, exchange, and transportation of
electric power that requires no
construction of facilities.59 Therefore,
an environmental assessment is
unnecessary and has not been prepared
in this NOPR.
VI. Regulatory Flexibility Act
Certification
53. The Regulatory Flexibility Act of
1980 (RFA) 60 generally requires a
description and analysis of final rules
that will have significant economic
impact on a substantial number of small
entities. The regulations proposed here
impose requirements only on public
utilities, which generally are not small
businesses, and, these requirements are,
in fact, designed to benefit all
customers, including small businesses.
54. The Commission has followed the
provisions of both the RFA and the
Paperwork Reduction Act on potential
impact on small business and other
small entities. Specifically, the RFA
directs agencies to consider four
regulatory alternatives to be considered
in a rulemaking to lessen the impact on
small entities: tiering or establishment
of different compliance or reporting
requirements for small entities,
classification, consolidation,
clarification or simplification of
compliance and reporting requirements,
performance rather than design
standards, and exemptions. As the
Commission originally stated in Order
No. 889, the OASIS regulations now
known as Standards for Business
Practices and Communication Protocols
for Public Utilities, apply only to public
utilities that own, operate, or control
transmission facilities subject to the
Commission’s jurisdiction and should a
small entity be subject to the
Commission’s jurisdiction, it may file
for waiver of the requirements. This is
consistent with the exemption
provisions of the RFA. Accordingly,
pursuant to section 605(b) of the RFA,61
57 Regulations Implementing the National
Environmental Policy Act, Order No. 486, 52 FR
47,897 (Dec. 17, 1987), FERC Stats. & Regs.,
Regulations Preambles ¶ 30,783 (1987).
58 18 CFR 380.4.
59 See 18 CFR 380.4(a)(2)(ii), 380.4(a)(5),
380.4(a)(27).
60 5 U.S.C. 601–612.
61 5 U.S.C. 605(b).
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the Commission hereby certifies that the
regulations proposed herein will not
have a significant adverse impact on a
substantial number of small entities.
VII. Comment Procedures
55. 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 April 24, 2009.
Comments must refer to Docket No.
RM05–5–013, and must include the
commenter’s name, the organization
they represent, if applicable, and their
address. Comments may be filed either
in electronic or paper format.
56. Comments may 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
and commenters may attach additional
files with supporting information in
certain other file formats. Commenters
filing electronically do not need to make
a paper filing. Commenters that are not
able to file comments electronically
must send an original and 14 copies of
their comments to: Federal Energy
Regulatory Commission, Secretary of the
Commission, 888 First Street, NE.,
Washington, DC 20426.
57. All comments will be placed in
the Commission’s public files and may
be viewed, printed, or downloaded
remotely as described in the Document
Availability section below. Commenters
on this proposal are not required to
serve copies of their comments on other
commenters.
VIII. Document Availability
58. 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
FERC’s Home Page (https://www.ferc.gov)
and in FERC’s Public Reference Room
during normal business hours (8:30 a.m.
to 5 p.m. Eastern time) at 888 First
Street, NE., Room 2A, Washington, DC
20426.
59. From FERC’s Home Page on the
Internet, this information is available in
the eLibrary. The full text of this
document is available in the eLibrary
both in PDF and Microsoft Word format
for viewing, printing, and/or
downloading. To access this document
in eLibrary, type the docket number
E:\FR\FM\25MRP1.SGM
25MRP1
Federal Register / Vol. 74, No. 56 / Wednesday, March 25, 2009 / Proposed Rules
excluding the last three digits of this
document in the docket number field.62
60. User assistance is available for
eLibrary and the FERC’s web site during
our normal business hours. For
assistance contact FERC Online Support
at FERCOnlineSupport@ferc.gov or tollfree at (866) 208–3676, or for TTY,
contact (202) 502–8659.
List of Subjects in 18 CFR Part 38
Conflict of interests, Electric power
plants, Electric utilities, Incorporation
by reference, Reporting and
recordkeeping requirements.
By direction of the Commission.
Kimberly D. Bose,
Secretary.
In consideration of the foregoing, the
Commission proposes to amend Chapter
I, Title 18, part 38 of the Code of Federal
Regulations, as follows:
PART 38—BUSINESS PRACTICE
STANDARDS AND COMMUNICATION
PROTOCOLS FOR PUBLIC UTILITIES
1. The authority citation for part 38
continues to read as follows:
Authority: 16 U.S.C. 791–825r, 2601–2645;
31 U.S.C. 9701; 42 U.S.C. 7101–7352.
2. In § 38.2, paragraphs (a)(1) through
(11) are revised to read as follows:
§ 38.2 Incorporation by reference of North
American Energy Standards Board
Wholesale Electric Quadrant standards
(a) * * *
(1) Open Access Same-Time
Information Systems (OASIS), Version
1.5 (WEQ–001, Version 002.1, March 11,
2009) with the exception of Standards
001–0.1, 001–0.9 through 001–0.13,
001–1.0 through 001–1.8, and 001–9.7;
(2) Open Access Same-Time
Information Systems (OASIS) Standards
& Communication Protocols, Version 1.5
(WEQ–002, Version 002.1, March 11,
2009);
(3) Open Access Same-Time
Information Systems (OASIS) Data
Dictionary, Version 1.5 (WEQ–003,
Version 002.1, March 11, 2009);
(4) Coordinate Interchange (WEQ–
004, Version 002.1, March 11, 2009);
(5) Area Control Error (ACE) Equation
Special Cases (WEQ–005, Version 002.1,
March 11, 2009);
(6) Manual Time Error Correction
(WEQ–006, Version 002.1, March 11,
2009);
(7) Inadvertent Interchange Payback
(WEQ–007, Version 002.1, March 11,
2009);
(8) Transmission Loading Relief—
Eastern Interconnection (WEQ–008,
Version 002.1, March 11, 2009);
(9) Gas/Electric Coordination (WEQ–
011, Version 002.1, March 11, 2009);
(10) Public Key Infrastructure (PKI)
(WEQ–012, Version 002.1, March 11,
2009); and
(11) Open Access Same-Time
Information Systems (OASIS)
Implementation Guide, Version 1.5
(WEQ–013, Version 002.1, March 11,
2009).
*
*
*
*
*
[FR Doc. E9–6504 Filed 3–24–09; 8:45 am]
BILLING CODE 6717–01–P
DEPARTMENT OF ENERGY
Federal Energy Regulatory
Commission
18 CFR Part 40
[Docket Nos. RM08–19–000, RM08–19–001,
RM09–5–000, RM06–16–005]
Mandatory Reliability Standards for the
Calculation of Available Transfer
Capability, Capacity Benefit Margins,
Transmission Reliability Margins, Total
Transfer Capability, and Existing
Transmission Commitments and
Mandatory Reliability Standards for the
Bulk-Power System
Issued March 19, 2009.
AGENCY: Federal Energy Regulatory
Commission.
ACTION: Notice of Proposed Rulemaking.
SUMMARY: Pursuant to section 215 of the
Federal Power Act, the Commission
12747
proposes to approve six Modeling, Data,
and Analysis Reliability Standards
submitted to the Commission for
approval by the North American Electric
Reliability Corporation, the Electric
Reliability Organization certified by the
Commission. The proposed Reliability
Standards require certain users, owners,
and operators of the Bulk-Power System
to develop consistent methodologies for
the calculation of available transfer
capability or available flowgate
capability.
Comments are due May 26, 2009.
You may submit comments,
identified by docket number by any of
the following methods:
• Agency Web site: https://ferc.gov.
Documents created electronically using
word processing software should be
filed in native applications or print-toPDF format and not in a scanned format.
• Mail/Hand Delivery: Commenters
unable to file comments electronically
must mail or hand deliver an original
and 14 copies of their comments to:
Federal Energy Regulatory Commission,
Secretary of the Commission, 888 First
Street, NE., Washington, DC 20426.
FOR FURTHER INFORMATION CONTACT:
Mason Emnett (Legal Information),
Office of the General Counsel, Federal
Energy Regulatory Commission, 888
First Street, NE., Washington, DC 20426,
(202) 502–6540, Cory Lankford (Legal
Information), Office of the General
Counsel, Federal Energy Regulatory
Commission, 888 First Street, NE.,
Washington, DC 20426, (202) 502–6711,
Keith O’Neal (Technical Information),
Office of Electric Reliability, Federal
Energy Regulatory Commission, 888
First Street, NE., Washington, DC 20426,
(202) 502–6339, Christopher Young
(Technical Information), Office of
Electric Reliability, Federal Energy
Regulatory Commission, 888 First
Street, NE., Washington, DC 20426,
(202) 502–6403.
SUPPLEMENTARY INFORMATION:
DATES:
ADDRESSES:
Table of Contents
PWALKER on PROD1PC71 with PROPOSALS
Paragraph
numbers
I. Background ..........................................................................................................................................................................................
A. Order Nos. 888 and 889 ......................................................................................................................................................
B. Order Nos. 890 and 693 ......................................................................................................................................................
II. Proposed Reliability Standards .........................................................................................................................................................
A. Coordination with Business Practice Standards ...............................................................................................................
B. Available Transmission System Capability, MOD–001–1 ................................................................................................
C. Capacity Benefit Margin Methodology, MOD–004–1 ........................................................................................................
D. Transmission Reliability Margin Methodology, MOD–008–1 ..........................................................................................
62 NAESB’s August 29, 2008 submittal is also
available for viewing in eLibrary. The link to this
VerDate Nov<24>2008
01:22 Mar 25, 2009
Jkt 217001
file is as follows: https://elibrary.ferc.gov/idmws/
common/opennat.asp?fileID=11793503.
PO 00000
Frm 00013
Fmt 4702
Sfmt 4702
E:\FR\FM\25MRP1.SGM
25MRP1
4
4
8
12
17
19
26
41
]]>Agencies
[Federal Register Volume 74, Number 56 (Wednesday, March 25, 2009)]
[Proposed Rules]
[Pages 12739-12747]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-6504]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
18 CFR Part 38
[Docket No. RM05-5-013]
Standards for Business Practices and Communication Protocols for
Public Utilities
March 19, 2009.
AGENCY: Federal Energy Regulatory Commission.
ACTION: Notice of proposed rulemaking.
-----------------------------------------------------------------------
SUMMARY: The Federal Energy Regulatory Commission (Commission) proposes
to incorporate by reference in its regulations the latest version
(Version 002.1) of certain business practice standards adopted by the
Wholesale Electric Quadrant of the North American Energy Standards
Board (NAESB). NAESB's Version 002.1 Standards mainly modify NAESB's
Version 001 Standards in response to Order Nos. 890, 890-A, and 890-B.
DATES: Comments on the proposed rule are due April 24, 2009.
ADDRESSES: You may submit comments identified by Docket No. RM05-5-013,
by one of the following methods:
Agency Web Site: https://ferc.gov. Follow the instructions
for submitting comments via the eFiling link found in the Comment
Procedures Section of the preamble.
Mail: Commenters unable to file comments electronically
must mail or hand deliver an original and 14 copies of their comments
to the Federal Energy Regulatory Commission, Secretary of the
Commission, 888 First Street, NE., Washington, DC 20426. Please refer
to the Comment Procedures Section of the preamble for additional
information on how to file paper comments.
FOR FURTHER INFORMATION CONTACT:
Ryan M. Irwin (technical issues), Office of Energy Market Regulation,
Federal Energy Regulatory Commission, 888 First Street, NE.,
Washington, DC 20426, (202) 502-6454.
Valerie Roth (technical issues), Office of Energy Market Regulation,
Federal Energy Regulatory Commission, 888 First Street, NE.,
Washington, DC 20426, (202) 502-8538.
Gary D. Cohen (legal issues), Office of the General Counsel, Federal
Energy Regulatory Commission, 888 First Street, NE., Washington, DC
20426, (202) 502-8321.
SUPPLEMENTARY INFORMATION:
1. In this Notice of Proposed Rulemaking (NOPR), the Federal Energy
Regulatory Commission (Commission) proposes to amend its regulations at
18 CFR 38.2 under the Federal Power Act \1\ to incorporate by reference
the latest version (Version 002.1) of certain business practice
standards adopted by the Wholesale Electric Quadrant (WEQ) of the North
American Energy Standards Board (NAESB). These revised standards update
earlier versions that the Commission previously incorporated by
reference into its regulations at 18 CFR 38.2 in Order Nos. 676, 676-B,
698, and 676-C,\2\ as well as the Version 002.0 standards that NAESB
filed with the Commission on September 2, 2008. The new and revised
standards that NAESB adopted in its Version 002.0 and 002.1 standards
implement requirements of Order Nos. 890, 890-A, and 890-B.\3\ In
addition, NAESB developed standards to support the Commission's eTariff
program, modified the Commercial Timing Table (WEQ-004 Appendix D) and
Transmission Loading Relief Standards (WEQ-008) to provide clarity and
align NAESB's business practice standards with the reliability
standards adopted by the North American Electric Reliability
Corporation (NERC), revised the Manual Time Error Correction Standards
(WEQ-006) to maintain consistency with revised NERC Standard BAL-004,
and amended certain ancillary services definitions appearing in the
Open Access Same-Time Information Systems (OASIS) Standards (WEQ-001)
relating to the inclusion of demand resources as part of ancillary
services.
---------------------------------------------------------------------------
\1\ 16 U.S.C. 791a, et seq.
\2\ Standards for Business Practices and Communication Protocols
for Public Utilities, Order No. 676, 71 FR 26,199 (May 4, 2006),
FERC Stats. & Regs., Regulations Preambles ] 31,216 (Apr. 25, 2006),
reh'g denied, Order No. 676-A, 116 FERC ] 61,255 (2006), Order No.
676-B, 72 FR 21,095 (Apr. 30, 2007), FERC Stats. & Regs.,
Regulations Preambles ] 31,246 (Apr. 19, 2007), Order No. 676-C, 73
FR 43,848 (July 29, 2008), FERC Stats. & Regs., Regulations
Preambles ] 31,274 (July 21, 2008), Order No. 676-D, granting
clarification and denying reh'g, 124 FERC ] 61,317 (2008); Standards
for Business Practices for Interstate Natural Gas Pipelines, Order
No. 698, 72 FR 38,757 (July 16, 2007), FERC Stats. & Regs.,
Regulations Preambles ] 31,251 (June 25, 2007), order on
clarification and reh'g, Order No. 698-A, 121 FERC ] 61,264 (2007).
\3\ Preventing Undue Discrimination and Preference in
Transmission Service, Order No. 890, 72 FR 12,266 (March 15 2007),
FERC Stats. & Regs., Regulations Preambles ] 31,241 (2007) (Order
No. 890); order on reh'g, Order No. 890-A, 73 FR 2984 (Jan. 16,
2008), FERC Stats. & Regs., Regulations Preambles ] 31,261 (2007)
(Order No. 890-A); order on reh'g and clarification, Order No. 890-
B, 123 FERC ] 61,299 (2008).
---------------------------------------------------------------------------
I. Background
2. NAESB is a non-profit standards development organization
established in January 2002 that serves as an industry forum for the
development of business practice standards. These standards promote a
seamless marketplace for wholesale and retail natural gas and
electricity.\4\ Since 1995, NAESB and its predecessor, the Gas Industry
Standards Board, have been accredited members of the American National
Standards Institute (ANSI), complying with ANSI's requirements that its
standards reflect a consensus of the affected industries.\5\
---------------------------------------------------------------------------
\4\ See Standards for Business Practices and Communication
Protocols for Public Utilities, Notice of Proposed Rulemaking, 72 FR
8318 (Feb. 27, 2007), FERC Stats. & Regs., Proposed Regs. ] 32,612
at P 3 (Feb. 20, 2007).
\5\ Id.
---------------------------------------------------------------------------
3. NAESB's standards include business practices that streamline the
transactional processes of the natural gas and electric industries, as
well as communication protocols and related standards designed to
improve the efficiency of communication within each industry. NAESB
supports all four quadrants of the gas and electric industries--
wholesale gas, wholesale electric, retail gas, and retail electric. All
participants in the gas and electric industries are eligible to join
NAESB
[[Page 12740]]
and participate in standards development.\6\
---------------------------------------------------------------------------
\6\ Id. P 4.
---------------------------------------------------------------------------
4. NAESB develops its standards under a consensus process so that
the standards draw support from a wide range of industry members.
NAESB's procedures are designed to ensure that all industry members can
have input into the development of a standard, whether or not they are
members of NAESB.\7\ Furthermore, each standard the WEQ adopts is
supported by a consensus of the six industry segments: transmission,
generation, marketer/brokers, distribution/load serving entities, end
users, and independent grid operators/planners. Under the WEQ process,
for a standard to be approved, it must receive a super-majority vote of
67 percent of the members of the WEQ's Executive Committee with support
from at least 40 percent of each of the six industry segments. For
final approval, 67 percent of the WEQ's general membership must ratify
the standards.\8\
---------------------------------------------------------------------------
\7\ Id. P 5.
\8\ Standards for Business Practices and Communication Protocols
for Public Utilities, Notice of Proposed Rulemaking, 70 FR 28,222
((May 17, 2005), FERC Stats. & Regs., Proposed Regs. ] 32,582, P 13
(May 9, 2005).
---------------------------------------------------------------------------
5. In a series of Orders,\9\ the Commission has incorporated
certain of NAESB's standards into its regulations. These standards
include standards for business practices as well as standards and
protocols for electronic communication, and business practice standards
related to reliability standards promulgated by NERC and approved by
the Commission. In Order No. 698, the Commission also incorporated by
reference into its regulations the NAESB Gas/Electric Coordination
Standards (WEQ-011). These standards established communication
protocols between interstate natural gas pipelines and electric power
plant operators designed to enhance reliability by improving
communication between the gas and electric industries relating to the
scheduling of gas-fired generators.
---------------------------------------------------------------------------
\9\ See n.2 supra.
---------------------------------------------------------------------------
6. On September 2, 2008, NAESB reported to the Commission that its
WEQ Executive Committee had approved Version 002.0 of its business
practice standards.\10\ The standards were published on September 30,
2008. NAESB states that its leadership responded to Order Nos. 890,
890-A, and 890-B, by requesting that its Electronic Scheduling
Subcommittee/Information Technology Subcommittee (ESS/ITS) and its
Business Practice Subcommittee (BPS) coordinate efforts to address the
issues raised by those orders. NAESB also states that, in formulating
its work schedule, it distinguished between the findings in Order No.
890 that called for a specific completion date and other tasks that
were less time sensitive and developed a work schedule to allow
completion of the more time-sensitive items earlier in the process. As
part of this process, NAESB states that the ESS/ITS and BPS worked in
close coordination with the pertinent NERC committees to draft business
practice standards on Order No. 890 issues that complement NERC's
reliability standards related to these issues, so that the standards
for both organizations will be consistent.\11\
---------------------------------------------------------------------------
\10\ See NAESB supplemental report dated Nov. 14, 2008.
\11\ The Commission addresses the associated reliability
standards proposed by NERC in a companion Notice of Proposed
Rulemaking being issued in Docket No. RM08-19-000.
---------------------------------------------------------------------------
7. While the majority of the revisions made in NAESB's Version
002.0 Standards were adopted in response to Order Nos. 890, 890-A, and
890-B, the Version 002.0 Standards also include: (1) The eTariff
related standards developed by NAESB in coordination with Commission
staff and the electric, gas, and oil industries; (2) modifications to
WEQ's existing interconnection time monitor standards in the Manual
Time Error Corrections Standards (WEQ-006) to ensure the NAESB
standards remain consistent with NERC's BAL-004 standard; and (3) the
explicit inclusion of demand resources in the definitions of certain
ancillary services.
8. On February 19, 2009, NAESB notified the Commission that the WEQ
Executive Committee had approved its Version 002.1 standards, which
include both new standards and modifications to existing Version 002.0
standards.\12\ The Version 002.1 standards include new standards
related to capacity benefit margin and rollover rights, and were
developed in response to Order Nos. 890, 890-A, and 676. Additional
modifications included in the Version 002.1 standards include: (1)
Modifications to existing standards pertaining to rollover rights; (2)
modifications to the Coordinate Interchange Timing Tables contained in
Appendix D of the Coordinate Interchange Standards (WEQ-004) to clarify
the differences in timing requirements for the Western Electricity
Coordinating Council and all other interconnections, complementary to
the NERC reliability standards; and (3) modifications to the
Transmission Loading Relief--Eastern Interconnection Standards (WEQ-
008) to add clarity and ensure that the business practice standards are
consistent with NERC reliability standard IRO-006.
---------------------------------------------------------------------------
\12\ On March 12, 2009, NAESB submitted a report to the
Commission documenting its ratification of the Version 002.1
standards.
---------------------------------------------------------------------------
9. In total, NAESB's WEQ Version 002.1 business practice standards
include the following standards:
Open Access Same-Time Information Systems (OASIS), Version
1.5 (WEQ-001);
Open Access Same-Time Information Systems (OASIS)
Standards & Communications Protocols, Version 1.5 (WEQ-002);
Open Access Same-Time Information Systems (OASIS) Data
Dictionary, Version 1.5 (WEQ-003);
Coordinate Interchange (WEQ-004);
Area Control Error (ACE) Equation Special Cases (WEQ-005);
Manual Time Error Correction (WEQ-006);
Inadvertent Interchange Payback (WEQ-007);
Transmission Loading Relief--Eastern Interconnection (WEQ-
008);
Standards of Conduct for Electric Transmission Providers
(WEQ-009);
Contracts Related Standards (WEQ-010);
Gas/Electric Coordination (WEQ-011);
Public Key Infrastructure (PKI) (WEQ-012);
Open Access Same-Time Information Systems (OASIS)
Implementation Guide, Version 1.5 (WEQ-013); and
WEQ/WGQ eTariff Related Standards (WEQ-014).
II. Discussion
10. We propose to incorporate by reference into the Commission's
regulations the NAESB WEQ Version 002.1 standards, with certain
exceptions.\13\ The Version 002.1
[[Page 12741]]
standards will update the Version 001 standards currently incorporated
by reference into the Commission's regulations.\14\
---------------------------------------------------------------------------
\13\ We do not propose to incorporate by reference in the
Commission's regulations the following standards: Standards of
Conduct for Electric Transmission Providers (WEQ-009); Contracts
Related Standards (WEQ-010); and WEQ/WGQ eTariff Related Standards
(WEQ-014). We do not propose to incorporate WEQ-009 into the
Commission's regulations because it contains no substantive
standards and merely serves as a placeholder for future standards.
We do not propose to incorporate WEQ-010 because this standard
contains an optional NAESB contract regarding funds transfers and
the Commission does not require utilities to use such contracts. In
addition, we do not propose to incorporate WEQ-014, eTariff Related
Standards, because the Commission already has adopted standards and
protocols for electronic tariff filing based on the NAESB standards.
See Electronic Tariff Filings, 73 FR 57,515 (Oct. 3, 2008), FERC
Stats. & Regs. ] 31,276 (Sept. 19, 2008). Also, we do not propose to
incorporate NAESB's interpretation of its standards on Gas/Electric
Coordination (WEQ-011) by reference in the regulations. While
interpretations may provide useful guidance, they are not
determinative and we will not require utilities to comply with
interpretations. Lastly, as discussed more specifically in note 18,
infra, we do not propose to incorporate by reference certain
portions of WEQ-001.
\14\ In this NOPR, the Commission is proposing to incorporate by
reference into the Commission's regulations Version 002.1 of NAESB's
business practice standards. These standards have been updated to
include all revisions to the standards since Version 001. Thus, some
of the revisions included in Version 002.1 were made from the
Version 002.0 standards and others were made from the Version 001
standards. Given that NAESB's Version 002.1 Standards represent the
most up-to-date version of NAESB's business practice standards, we
believe it is more productive for this NOPR to address this set of
standards, rather than the Version 002.0 standards. Given our
proposals in this NOPR, we do not see the need to propose any
separate action addressing NAESB's Version 002.0 standards.
Therefore, the proceeding in Docket No. RM05-5-007 is moot.
---------------------------------------------------------------------------
11. NAESB adopted the majority of the changes in the Version 002.1
standards to support Order Nos. 890, 890-A, and 890-B, in which the
Commission addressed and remedied opportunities for undue
discrimination under the pro forma open access transmission tariff
(OATT). While many of the Version 002.1 standards simply revise or
update existing standards, some of these standards prescribe new
business practices to accommodate the reforms adopted in Order No. 890.
For example, NAESB has developed business practice and technical
standards to support conditional firm service. Additionally, NAESB
developed standards for the posting of narratives explaining changes in
available transfer capability and total transfer capability, underlying
load forecast assumptions for available transfer capability
calculations and actual peak load, as well as metrics relating to the
provision of transmission service and the completion of planning
studies. Specific additions and revisions included in the NAESB WEQ
Version 002.1 standards are discussed below.
12. NAESB approved the Version 002.1 standards under its consensus
procedures.\15\ Adoption of consensus standards is appropriate because
the consensus process helps to ensure the reasonableness of the
standards by requiring that the standards draw support from a broad
spectrum of all segments of the industry. Moreover, since the industry
itself has to conduct business under these standards, the Commission's
regulations should reflect those standards that have the widest
possible support. In section12(d) of the National Technology Transfer
and Advancement Act of 1995 (NTT&AA), Congress affirmatively requires
federal agencies to use technical standards developed by voluntary
consensus standards organizations, like NAESB, as a means to carry out
policy objectives or activities determined by the agencies unless use
of such standards would be inconsistent with applicable law or
otherwise impractical.\16\
---------------------------------------------------------------------------
\15\ See P 4 supra.
\16\ Pub L. No. 104-113, 12(d), 110 Stat. 775 (1996), 15 U.S.C.
272 note (1997).
---------------------------------------------------------------------------
13. We propose that, once the Commission incorporates these
standards by reference into its regulations, public utilities must
implement these standards even before they have updated their tariffs
to incorporate these changes. The Commission is also proposing,
consistent with our regulation at 18 CFR 35.28(c)(1)(vii), to require
each public utility to revise its OATT to include the Version 002.1 WEQ
standards that we are proposing to incorporate by reference herein. For
standards that do not require implementing tariff provisions, the
Commission is proposing to permit the public utility to incorporate the
WEQ standard by reference in its OATT. We are not, however, proposing
to require a separate tariff filing to accomplish this change.
Consistent with our prior practice, we are proposing to give public
utilities the option of including these changes as part of an unrelated
tariff filing.\17\
---------------------------------------------------------------------------
\17\ See Order No. 676, P 100.
---------------------------------------------------------------------------
A. OASIS Standards
14. In the NAESB WEQ Version 002.1 standards, NAESB has developed
new standards and revised existing standards relating to OASIS to
ensure consistency with certain policies articulated by the Commission
in Order Nos. 890, 890-A and 890-B. A number of standards that the
Commission directed transmission providers to develop have been
included by WEQ in the Version 002.1 OASIS Standards, which include:
(1) Open Access Same-Time Information Systems (OASIS), Version 1.5
(WEQ-001); (2) Open Access Same-Time Information Systems (OASIS)
Standards & Communication Protocols, Version 1.5 (WEQ-002); (3) Open
Access Same-Time Information Systems (OASIS) Data Dictionary, Version
1.5 (WEQ-003); and (4) Open Access Same-Time Information Systems
(OASIS) Implementation Guide, Version 1.5 (WEQ-013). In addition,
NAESB's WEQ Version 002.1 standards include various minor revisions to
the OASIS Standards.
15. In this NOPR, we propose to incorporate by reference into the
Commission's regulations the Version 002.1 OASIS Standards (i.e., WEQ-
001, WEQ-002, WEQ-003, and WEQ-013), with certain exceptions.\18\
---------------------------------------------------------------------------
\18\ Consistent with the Commission's determination in Order
Nos. 676 and 676-C, we are not proposing to incorporate by reference
Standards 001-0.1, 001-0.9 through 001-0.13, and 001-1.0 through
001-1.8 because these standards merely restate Commission
regulations and Standard 001-9.7 because it is not consistent with
the Commission's policy on redirects. Order No. 676, P 51 & n.40.
---------------------------------------------------------------------------
16. We note that Standard 001-13.1.2, which requires the posting of
Standards of Conduct-related information, contains references to
various Commission regulations that were subsequently revised in Order
No. 717.\19\ Thus, these references are no longer accurate and the
information required to be posted by this standard does not conform, in
some instances, to the Commission's current requirements. We understand
that NAESB is working on making a revision to this standard. Because
the standard contains posting requirements that are still applicable,
we propose to incorporate this standard by reference. However, we
clarify that, until we adopt a revised standard, we do not propose to
require public utilities to comply with any portion of the standard
that requires information to be posted in a manner inconsistent with
Order No. 717.
---------------------------------------------------------------------------
\19\ Standards of Conduct for Transmission Providers, Order No.
717, 73 FR 63,796 (Oct. 27, 2008), FERC Stats. & Regs ] 31,280
(2008), reh'g pending.
---------------------------------------------------------------------------
1. Conditional Firm Service
17. In the OASIS Standards, NAESB has included a number of
standards that support conditional firm service as envisioned by the
Commission in Order Nos. 890 and 890-A. NAESB has developed business
practice standards to facilitate the implementation of conditional firm
service, relying on the Commission's description of the attributes of
that service in Order No. 890.\20\ Specifically, NAESB developed
Standards 001-21 through 001-21.5.5 on the Conditional Curtailment
Option, the term that NAESB uses to describe conditional firm service.
These standards address: (1) The limitations and conditions under which
the Conditional Curtailment Option is offered; (2) the posting
requirements for information concerning a Conditional Curtailment
Option reservation and its curtailment criteria; (3) the process for
performing the biennial reassessment; (4) the curtailment of a
Conditional Curtailment Option reservation; and (5) the redirect,
transfer, and resale of a Conditional Curtailment Option reservation.
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\20\ Order No. 890, P 1043-47.
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[[Page 12742]]
18. Additionally, NAESB has developed other standards related to
conditional firm service in response to the Commission's requests for
the development of specific standards in Order Nos. 890 and 890-A.\21\
Specifically, NAESB has developed Standard 001-21.1.6, which requires
that transmission providers offer short-term firm service to
conditional firm customers as capacity (that would alleviate the
constraints associated with a Conditional Curtailment Option
reservation) becomes available. In response to Order No. 890-A, NAESB
has created and modified standards in WEQ-001, Appendix C to WEQ-001,
WEQ-002, WEQ-003, WEQ-008 and WEQ-013, to provide a consistent set of
tracking capabilities and business practices for tagging, as a means to
implement conditional firm service.
---------------------------------------------------------------------------
\21\ Order No. 890, P 1078; Order No. 890-A, P 592.
---------------------------------------------------------------------------
2. Available Transfer Capability
19. NAESB developed several standards related to available transfer
capability in response to Order No. 890. First, NAESB modified WEQ-001
to support the transparency reporting and related functions required by
Order No. 890. Second, in response to the available transfer capability
related posting requirements established by the Commission in Order No.
890, NAESB has developed business practice standards in WEQ-001
(including Standards 001-14, 001-15, 001-17, 001-18, 001-19, 001-20 and
Appendix D), WEQ-002, WEQ-003 and WEQ-013 (including Appendices A and
B).\22\
---------------------------------------------------------------------------
\22\ Order No. 890, P 369 and 371.
---------------------------------------------------------------------------
20. Standard 001-14 is designed to meet the requirement in Order
No. 890 for transmission providers to post a narrative with regard to
monthly or yearly available transfer capability values in instances
when available transfer capability remains unchanged at a value of zero
for six months or longer.\23\ Standard 001-15 is designed to meet the
requirement in Order No. 890 for transmission providers to post a
brief, but specific, narrative explanation of the reason for a change
in monthly and yearly available transfer capability values on a
constrained path when a monthly or yearly available transfer capability
value changes as a result of a 10 percent change in total transfer
capability. This standard requires the narrative explanation to include
the specific events that gave rise to the change and the new values for
available transfer capability on that path.\24\
---------------------------------------------------------------------------
\23\ Id. P 371.
\24\ Id. P 369.
---------------------------------------------------------------------------
21. Standard 001-16.1 requires Transmission Providers to respond to
questions about the methodology for calculating available transfer
capability and available flowgate capability. We interpret this
standard as requiring the Transmission Provider to provide data when
necessary to respond to the methodology questions in order to be
consistent with the requirement in Order No. 890 that transmission
providers must, upon request, ``make available all data used to
calculate [available transfer capability] and [total transfer
capability] for any constrained paths and any system planning studies
or specific network impact studies performed for customers.''\25\
---------------------------------------------------------------------------
\25\ Order No. 890, P 348.
---------------------------------------------------------------------------
22. Standard 001-17 governs the posting of the underlying load
forecast assumptions used by transmission providers to calculate
available transfer capability and, on a daily basis, their actual daily
peak load for the prior day.\26\
---------------------------------------------------------------------------
\26\ Id. P 413.
---------------------------------------------------------------------------
23. Another standard developed by NAESB in response to Order No.
890 is Standard 001-18, which relates to postbacks of capacity to
available transfer capability. In Order No. 890, the Commission
directed public utilities, working through NERC, to modify available
transfer capability related standards to require transmission providers
to account for postbacks of redirected services and counterflows in
their non-firm available transfer capability calculations.\27\ In
coordination with NERC, NAESB concluded that a business practice
standard addressing counterflows was unnecessary because NERC had
addressed it in the reliability standards, but that the postback issue
necessitated the creation of a related business practice standard.
Thus, NAESB developed Standard 001-18 and a related Appendix D to WEQ-
001 to account for postbacks of capacity to available transfer
capability.
---------------------------------------------------------------------------
\27\ Id. P 212.
---------------------------------------------------------------------------
24. Also in response to Order No. 890,\28\ NAESB has developed
standards that establish a consistent approach for determining the
amount of transfer capability that a transmission provider can set
aside for its native load and other committed uses. Specifically,
Standard 001-19 addresses grandfathered agreements and Standard 001-20
addresses rollover rights. Furthermore, NAESB has developed business
practice standards that complement NERC's reliability standards for
existing transmission commitments. These standards appear in WEQ-001,
WEQ-003, and WEQ-013.
---------------------------------------------------------------------------
\28\ Id. P 243.
---------------------------------------------------------------------------
25. One of the Commission's objectives in Order No. 890 was to
reduce the potential for transmission providers to unduly discriminate
when they provide transmission service by limiting their discretion to
calculate available transfer capability using unknown assumptions and
methodologies.\29\ For this reason, the Commission found that ``all
[Available Transfer Capability] components (i.e., [total transfer
capability], [existing transmission commitments], [capacity benefit
margin], and [transmission reliability margin]) and certain data
inputs, data exchange, and assumptions be consistent and that the
number of industry-wide ATC calculation formulas be few in number,
transparent and produce equivalent results.''\30\
---------------------------------------------------------------------------
\29\ The Commission reasoned that the potential for
discrimination does not lie primarily in the choice of an available
transfer capability calculation methodology, but rather in the
consistent application of its components. Id. P 208.
\30\ Order No. 890, P 207.
---------------------------------------------------------------------------
26. The standards establish a mechanism for posting available
transfer capacity for grandfathered agreements. The standards, however,
provide for a different approach to posting grandfathered agreements
using the Flowgate Methodology. Under Standard 001-19.1, transmission
providers using the other available transfer capability calculation
methodologies must post the aggregate MW value for the grandfathered
agreements and such data must be posted so that it can be viewed and
queried using the systemdata template. Standard 1-19.1.2 provides an
exception for transmission providers using the Flowgate Methodology
from the requirement to post an aggregate MW value that can be viewed
and queried using the systemdata template. Instead, it requires that
the transmission provider must post a list of Grandfathered Agreements
with MW values that are expected to be scheduled or expected to flow.
The standards, therefore, permit transmission providers using Available
Transfer Capability (ATC) calculation methodologies other than the
Flowgate Methodology to post less detailed information concerning
grandfathered agreements than those using the Flowgate Methodology, but
information concerning grandfathered agreements posted by those using
the Flowgate Methodology is not accessible through the systemdata
template.
3. ATC Information Link
27. The WEQ Version 002.1 standards establish the procedure for
input of total transfer capability and available transfer
[[Page 12743]]
capability methodologies and values to be used by public utilities in
calculating their total transfer capability and available transfer
capability. NAESB developed these business practice standards in close
coordination with the NERC available transfer capability drafting team.
Furthermore, NERC and NAESB determined that the standards contained in
NERC MOD-003 were better classified as business practice standards than
reliability standards. As a result, NAESB developed Standard 001-
13.1.5, which provides for an ATC Information Link on OASIS. This
standard requires that Transmission Providers post several links on the
ATC Information Link, including links to their Available Transfer
Capability Implementation Document (as specified in NERC reliability
standard MOD-001-1), Capacity Benefit Margin Implementation Document
(as specified in NERC reliability standard MOD-004-1), and Transmission
Reserve Margin Implementation Document (as specified in NERC
reliability standard MOD-008-1).\31\
---------------------------------------------------------------------------
\31\ These three implementation documents are described in the
NERC reliability standards, which are addressed in a companion
Notice of Proposed Rulemaking being issued in Docket No. RM08-19-
000.
---------------------------------------------------------------------------
28. Standard 001-13.1.5 provides that the posting of information on
the ATC Information Link would be ``subject to the Transmission
Provider's ability to redact certain provisions due to market, security
or reliability sensitivity concerns.'' In Order No. 890, the Commission
acknowledged that a transmission provider may require someone seeking
access to CEII materials or proprietary customer information to sign a
confidentiality agreement.\32\ We expect the provision in NAESB
Standard 001-13.1.5 for a transmission provider to redact sensitive
information from postings to be implemented by a transmission provider
subject to the OATT in a manner consistent with its obligation to make
that information available to those with a legitimate need to access
the information, subject to appropriate confidentiality
restrictions.\33\
---------------------------------------------------------------------------
\32\ Order No. 890, P 326.
\33\ See Order No. 890, P 403-04 (requiring the development of
standard disclosure for timely disclosure of CEII information to
those with a legitimate need for it).
---------------------------------------------------------------------------
4. Capacity Benefit Margin
29. In addition to requiring that transmission providers include a
link to their Capacity Benefit Margin Implementation Document on the
ATC Information Link, as discussed above, the Version 002.1 standards
allow for auditing of the use of capacity benefit margin using OASIS.
This standard was developed in response to Order No. 890 and 890-A,\34\
and necessitated modifications to WEQ-001, WEQ-002, WEQ-003, and WEQ-
013. While the Commission also directed that public utilities, working
through NERC and NAESB, ``develop clear standards for how the CBM value
shall be determined, allocated across transmission paths, and used'' in
Order No. 890,\35\ the NAESB subcommittees determined that the NERC
reliability standard MOD-004 adequately addressed this directive and
therefore it was not necessary to develop any supporting NAESB business
practice standards.\36\
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\34\ Order No. 890, P 262 and Order No. 890-A, P 68.
\35\ Order No. 890, P 257. See also, Order No. 890-A, P 68 and
83.
\36\ See, NAESB Version 002.1 cover letter filed on Feb. 19,
2009 at 69.
---------------------------------------------------------------------------
30. On March 6, 2009, NERC filed comments with the Commission
concerning Standard 004-18.2, suggesting that this Standard might be in
conflict with Requirement 12 of NERC Reliability Standard MOD-004-
1.\37\ After comparing the two standards, we do not believe that they
are in conflict. Incorporation by reference of the NAESB Standard would
not seem to relieve an entity from the independent obligation to comply
with the NERC Reliability Standard.
---------------------------------------------------------------------------
\37\ Standard 004-18.2 states that: ``The Transmission Provider
may require the specification of a unique Transmission Reservation
Number in association with any request for use of CBM. Such
requirement shall be fully documented in the Transmission Provider's
Business Practices posted on OASIS. The TSP reserves the right to
deny any RFI requesting use of CBM if the required Transmission
Reservation Number is not specified.''
Requirement 12 of Standard MOD-004-1 requires transmission
providers to approve, within the bounds of reliable operation, any
arranged interchange using CBM that is submitted by an energy
deficient entity under energy emergency alerts, if (1) CBM is
available, (2) an emergency alert is declared within the balancing
authority of the energy deficient entity, and (3) the energy
deficient entity is located within the transmission provider's
service area.
---------------------------------------------------------------------------
5. Performance Metrics
31. In response to several posting requirements in Order No. 890,
NAESB developed and adopted Standard 001-13.1.3, which describes the
Performance Metrics Link that transmission providers must have on the
OASIS. Under the ``Transmission Service Requests Metrics'' link,
transmission providers are required to post the information required by
the Commission's regulations at 18 CFR 37.6(i), which includes: (1) The
number of affiliate versus non-affiliate requests for transmission
service that have been rejected; and (2) the number of affiliate versus
non-affiliate requests for transmission service that have been made.
Furthermore, this posting is required to detail the length of service
request (e.g., short-term or long-term) and the type of service
requested (e.g., firm point-to-point, non-firm point-to-point or
network service).\38\ Under the ``Transmission Study Metrics'' link,
transmission providers must post the information concerning performance
metrics relating to system impact and facilities studies \39\ required
by the Commission's regulations at 18 CFR 37.6(h). Under the
``Redispatch Cost'' link, transmission providers must post information
required by the Commission's regulations at 18 CFR 37.6(j)(2) regarding
redispatch costs. This information must include each transmission
provider's monthly average cost of redispatch for each internal
congested transmission facility or interface over which it provides
redispatch service using planning redispatch or reliability redispatch
under the pro forma OATT and a high and low redispatch cost for the
month for each of these same transmission constraints.\40\
---------------------------------------------------------------------------
\38\ Order No. 890, P 413.
\39\ Id. P 1318.
\40\ Id. P 1162.
---------------------------------------------------------------------------
6. Rebid of Partial Service
32. The WEQ Version 002.1 standards cover the rebid of partial
service across a single transmission provider's system. In response to
Order No. 890, NAESB adopted business practice standards in its Version
002.1 standards to complement the OASIS Standards and Communication
Protocol standards that it had already developed for the rebid of
partial service across a single Transmission Provider's system. These
revisions appear in the OASIS Standards.
7. Pre-Confirmed Transmission Service Requests
33. In WEQ-001, WEQ-002 and WEQ-013, NAESB has developed business
practice standards to complement the Commission's policies regarding
pre-confirmed transmission service requests, as articulated in Order
No. 890. As required by Order No. 890, these standards ``give priority
only to pre-confirmed non-firm point-to-point transmission service
requests and short-term firm point-to-point transmission service
requests'' \41\ and provide that ``longer duration requests for
transmission service will continue to
[[Page 12744]]
have priority over shorter duration requests for transmission service,
with pre-confirmation serving as a tie-breaker for requests of equal
duration.'' \42\ In addition, as requested by the Commission in Order
No. 890, NAESB has developed a consensus solution to the question of
whether a transmission customer should be prohibited from changing a
request into a pre-confirmed request.\43\
---------------------------------------------------------------------------
\41\ Id. P 1401.
\42\ Id.
\43\ Id. P 1392.
---------------------------------------------------------------------------
8. Ancillary Services and Demand Response
34. NAESB amended the definitions of certain ancillary services
contained in WEQ-001 to reflect the definitions contained in the pro
forma OATT as revised by Order No. 890. These definitions describe the
types of ancillary services that are offered on OASIS. The revisions to
the definitions reflect the possible role of demand resources in the
provision of ancillary services by identifying non-generation resources
capable of providing a given ancillary service as potential providers
of the service. These modifications include revisions to Standards 001-
2.5.2 through 001-2.5.6.\44\
---------------------------------------------------------------------------
\44\ On November 14, 2008, NAESB reported that these standards,
among others, have been approved by the WEQ Executive Committee and
ratified by the NAESB membership.
---------------------------------------------------------------------------
9. Rollover Rights
35. In the Version 002.1 standards, NAESB has included new
standards and modifications to existing standards in WEQ-001, WEQ-003,
and WEQ-013 that relate to rollover rights. As discussed above, these
standards were developed in part as a response to Order No. 890,\45\ in
which the Commission directed public utilities, working through NERC
and NAESB, to develop standards that establish a consistent approach
for determining the amount of transfer capability that a transmission
provider can set aside for its native load and other committed uses.
However, these standards also include business practices relating to
rollover rights; for example, Standard 001-20 describes the process by
which Transmission Customers may exercise their rollover rights.\46\
The modifications to the standards relating to rollover rights that
NAESB has included in its Version 002.1 filing \47\ are the result of
only the first part of a two part process through which NAESB is
working to develop standards that are consistent with the Commission's
policy on rollover rights as described in Order Nos. 676, 890, and 890-
A.\48\
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\45\ Order No. 890, P 243.
\46\ Although we have previously determined not to incorporate
Standard 001-9.7 dealing with rollover rights and redirects, we are
proposing to incorporate by reference Standard 001-9.5.3, which
refers to the not-accepted Standard 001-9.7. The reference, however,
does not affect the meaning of the Standard 001-9.5.3, and any
redirect issues are governed by the Commission's pro forma Open
Access Transmission Tariff.
\47\ NAESB Version 002.1 cover letter filed on Feb. 19, 2009 at
7.
\48\ NAESB reports, id., that part one of this process included
revisions it made to the definition of ``unexercised rollover
rights'' in WEQ-001, and modifications to the existing standards in
WEQ-001, WEQ-003 and WEQ-013. NAESB further reports, id., that in
part two of this process it intends to revise Standard 001-9.7 as
part of its Order No. 890 work plan, and to include this revision in
its Version 002.2 standards.
---------------------------------------------------------------------------
10. Insufficient Transfer Capacity
36. Standard 001-4.7.1 provides the OASIS posting procedure to be
followed when there is insufficient transfer capacity to satisfy a
customer's request and partial service is either not required or is
unavailable.\49\ While we propose to incorporate this standard by
reference into our regulations, we note that it does not address or
otherwise limit other obligations that might exist under the pro forma
OATT, such as the requirement in section 15.2 to perform a System
Impact Study.\50\
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\49\ Standard 001-4.7.1 states: ``If the Transmission Provider
determines there is insufficient transfer capability available to
grant the Transmission Customer's request and there is no obligation
to provide Partial Service (or Partial Service is also not available
in cases where the Transmission Provider is obligated to provide
Partial Service), the Transmission Provider may respond by setting
the request status to REFUSED.''
\50\ Section 15.2 of the pro forma OATT states that: ``In the
event sufficient transfer capability may not exist to accommodate a
service request, the Transmission Provider will respond by
performing a System Impact Study.''
---------------------------------------------------------------------------
11. Miscellaneous OASIS Standards
37. In Order No. 890, the Commission decided that NAESB would be
the best entity to address the issue of making OASIS platforms
accessible on non-Windows/Explorer computers.\51\ NAESB has developed
standards concerning this issue as part of its OASIS Standards.
Additionally, in the Version 002.1 standards NAESB modified WEQ-002,
WEQ-003, and WEQ-013 to complement the new and revised standards
adopted in response to Order No. 890. These revisions support
annotations for available transfer capability, load forecast and actual
load, rebid of partial service, pre-confirmation priority, and
conditional firm service. NAESB also added an Appendix C to WEQ-001
that provides a list of broad based OASIS exemptions that have been
granted to specific groups in the electric industry by the Commission
through its Orders and regulations.
---------------------------------------------------------------------------
\51\ Order No. 890, P 1392.
---------------------------------------------------------------------------
B. Business Practice Standards to Coordinate With Reliability Standards
Unrelated to Order No. 890
38. In the Version 002.1 standards for Coordinate Interchange,
(WEQ-004), Area Control Error (ACE) Equation Special Cases (WEQ-005),
Inadvertent Interchange Payback (WEQ-007), and Transmission Loading
Relief--Eastern Interconnection (WEQ-008), NAESB has made minor
modifications to the format of the standards and has revised section
titles.
39. In the Version 002.1 standards, NAESB added Standard 004-18 to
the Coordinate Interchange Standards (WEQ-004), which describes the
requirements for submitting a Request for Interchange that uses a
Transmission Provider's capacity benefit margin to support energy
imports into a load balancing authority area served by the Transmission
Provider. Additionally, the Version 002.1 standards include
modifications to the timing table in Appendix D of the Coordinate
Interchange Standards (WEQ-004). The NERC/NAESB Joint Interchange
Scheduling Working Group modified previous versions of this table by
dividing it into two separate tables, one that provides the timing
requirements for the Western Electricity Coordinating Council and one
that provides the timing requirements for all other interconnections.
These tables were modified to reflect time changes for Generator-
Provider Entity, Load-Serving Entity, and Purchase-Selling Entity
market assessments so that they are concurrent with the Balancing
Authority and Transmission Service Provider reliability assessments.
Also, timeline diagrams for each table were added for
clarification.\52\
---------------------------------------------------------------------------
\52\ NAESB Version 002.1 cover letter filed on Feb. 19, 2009 at
8.
---------------------------------------------------------------------------
40. In the Version 002.1 standards for Manual Time Error Correction
(WEQ-006), NAESB has included revisions to maintain conformance with
NERC Standard BAL-004.\53\ NAESB states that NERC recently revised
Standard BAL-004 to remove inappropriate requirements on reliability
coordinators that voluntarily agree to serve as Interconnection Time
Monitors.\54\ In
[[Page 12745]]
addition, NAESB has revised a section title in this standard.
---------------------------------------------------------------------------
\53\ NAESB reports that this item was voted out of the
subcommittee on June 4, 2008, passed an Executive Committee vote on
Aug. 19, 2008, and the ratification process will complete on Sep.
22, 2008. In its supplemental report dated Nov. 14, 2008, NAESB
advised that this revision was ratified on Sep. 22, 2008.
\54\ NERC filed Standard BAL-004-1 with the Commission for
approval in Docket Nos. RM09-13-000 and RM06-16-000 on March 12,
2009 and this filing is currently pending before the Commission.
---------------------------------------------------------------------------
41. In the Version 002.1 standards for Transmission Loading
Relief--Eastern Interconnection (WEQ-008), NAESB made a minor
modification to a standard to accommodate conditional firm service and
the use of capacity benefit margin. Additionally, NAESB modified these
standards to clarify the intended use of the nine Transmission Loading
Relief levels addressed in the standards, and to ensure consistency
between WEQ-008 and the NERC reliability standard IRO-006, both of
which address transmission loading relief. We propose to update the
Commission's regulations to incorporate by reference Version 002.1 of
these standards.
C. Other Standards
1. Gas/Electric Coordination Standards
42. In the Version 002.1 standards for Gas/Electric Coordination
(WEQ-011), NAESB made a minor correction to rearrange the definitions
so that they appear in alphabetical order. We propose to incorporate by
reference into the Commission's regulations Version 002.1 of this
standard.
2. Public Key Infrastructure (PKI) Standards
43. In the Version 002.1 standards for Public Key Infrastructure
(WEQ-012), NAESB made a minor revision to the endnote. We propose to
incorporate by reference into the Commission's regulations the updated
Version 002.1 of this standard.
III. Notice of Use of Voluntary Consensus Standards
44. Office of Management and Budget Circular A-119 (section 11)
(February 10, 1998) provides that federal agencies should publish a
request for comment in a NOPR when the agency is seeking to issue or
revise a regulation proposing to adopt a voluntary consensus standard
or a government-unique standard. In this NOPR, the Commission is
proposing to incorporate by reference a voluntary consensus standard
developed by the NAESB WEQ.
IV. Information Collection Statement
45. The following collections of information contained in this
proposed rule have been submitted to the Office of Management and
Budget (OMB) for review under section 3507(d) of the Paperwork
Reduction Act of 1995, 44 U.S.C. 3507(d). The Commission solicits
comments on the Commission's need for this information, whether the
information will have practical utility, the accuracy of the provided
burden estimates, ways to enhance the quality, utility, and clarity of
the information to be collected, and any suggested methods for
minimizing respondents' burden, including the use of automated
information techniques. 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.
46. The following burden estimate is based on the projected costs
for the industry to implement revisions to the WEQ Standards currently
incorporated by reference into the Commission's regulations at 18 CFR
38.2 and to implement the new standards adopted by NAESB that we
propose here to incorporate by reference.
----------------------------------------------------------------------------------------------------------------
Number of
Data collection Number of responses per Hours per Total number
respondents respondent response of hours
----------------------------------------------------------------------------------------------------------------
FERC-516........................................ 176 1 6 1056
FERC-717........................................ 176 1 12 2112
---------------------------------------------------------------
Totals...................................... .............. .............. .............. 3168
----------------------------------------------------------------------------------------------------------------
Total Annual Hours for Collection:
(Reporting and Recordkeeping, (if appropriate)) = 3168 hours.
Information Collection Costs: The Commission seeks comments on the
costs to comply with these requirements. It has projected the average
annualized cost for all respondents to be the following: \55\
---------------------------------------------------------------------------
\55\ The total annualized costs for the information collection
is $1,172,160. This number is reached by multiplying the total hours
to prepare responses (3168) by an hourly wage estimate of $370 (a
composite estimate that includes legal, technical and support staff
rates, $250 + $95 + $25 = $370), 3168 hours x $370/hour =
$1,172,160.
------------------------------------------------------------------------
FERC-516 FERC-717
------------------------------------------------------------------------
Annualized Capital/Startup Costs........ $390,720 $781,440
Annualized Costs (Operations & N/A
Maintenance)...........................
-------------------------------
Total Annualized Costs.............. 390,720 781,440
------------------------------------------------------------------------
47. OMB regulations \56\ require OMB to approve certain information
collection requirements imposed by agency rule. The Commission is
submitting notification of this proposed rule to OMB. These information
collections are mandatory requirements.
---------------------------------------------------------------------------
\56\ CFR 1320.11.
---------------------------------------------------------------------------
Title: Standards for Business Practices and Communication Protocols
for Public Utilities (formerly Open Access Same Time Information
System) (FERC-717); Electric Rate Schedule Filings (FERC-516).
Action: Proposed collection.
OMB Control No.: 1902-0096 (FERC-516); 1902-0173 (FERC-717).
Respondents: Business or other for profit, (Public Utilities--Not
applicable to small businesses).
Frequency of Responses: One-time implementation (business
procedures, capital/start-up).
Necessity of the Information: This proposed rule, if implemented
would supplement the changes the Commission required in Order Nos. 890,
890-A, and 890-B to require that transmission services are provided on
a basis that is just, reasonable and not unduly discriminatory. In
addition this proposed rule would upgrade the Commission's current
business practice and communication standards.
[[Page 12746]]
Specifically, these standards include several modifications to the
existing business practice standards as well as creating new standards
to provide additional functionality for OASIS transactions. These
practices will ensure that potential customers of open access
transmission service receive access to information that will enable
them to obtain transmission service on a non-discriminatory basis and
will assist the Commission in maintaining a safe and reliable
infrastructure. The implementation of these standards and regulations
is necessary to increase the efficiency of the wholesale electric power
grid.
48. The information collection requirements of this proposed rule
are based on the transition from transactions being made under the
existing business practice standards to conducting such transactions
under the proposed revisions to these standards and to account for the
burden associated with the new standards the Commission proposes to
incorporate in its regulations.
49. Internal Review: The Commission has reviewed the revised
business practice standards and has made a preliminary determination
that the proposed revisions are necessary to maintain consistency
between the business practice standards and reliability standards on
this subject. The Commission has assured itself, by means of its
internal review, that there is specific, objective support for the
burden estimate associated with the information requirements.
50. Interested persons may obtain information on the reporting
requirements by contacting the following: Federal Energy Regulatory
Commission, Attn: Michael Miller, Office of the Executive Director, 888
First Street, NE., Washington, DC 20426, Tel: (202) 502-8415/Fax: (202)
273-0873, e-mail: michael.miller@ferc.gov.
51. Comments concerning the information collections proposed in
this NOPR and the associated burden estimates, should be sent to the
contact listed above 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)
395-7345, fax: (202) 395-7285].
V. Environmental Analysis
52. 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.\57\ The
Commission has categorically excluded certain actions from these
requirements as not having a significant effect on the human
environment.\58\ The actions proposed here fall within categorical
exclusions in the Commission's regulations for rules that are
clarifying, corrective, or procedural, for information gathering,
analysis, and dissemination, and for sales, exchange, and
transportation of electric power that requires no construction of
facilities.\59\ Therefore, an environmental assessment is unnecessary
and has not been prepared in this NOPR.
---------------------------------------------------------------------------
\57\ Regulations Implementing the National Environmental Policy
Act, Order No. 486, 52 FR 47,897 (Dec. 17, 1987), FERC Stats. &
Regs., Regulations Preambles ] 30,783 (1987).
\58\ 18 CFR 380.4.
\59\ See 18 CFR 380.4(a)(2)(ii), 380.4(a)(5), 380.4(a)(27).
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VI. Regulatory Flexibility Act Certification
53. The Regulatory Flexibility Act of 1980 (RFA) \60\ generally
requires a description and analysis of final rules that will have
significant economic impact on a substantial number of small entities.
The regulations proposed here impose requirements only on public
utilities, which generally are not small businesses, and, these
requirements are, in fact, designed to benefit all customers, including
small businesses.
---------------------------------------------------------------------------
\60\ 5 U.S.C. 601-612.
---------------------------------------------------------------------------
54. The Commission has followed the provisions of both the RFA and
the Paperwork Reduction Act on potential impact on small business and
other small entities. Specifically, the RFA directs agencies to
consider four regulatory alternatives to be considered in a rulemaking
to lessen the impact on small entities: tiering or establishment of
different compliance or reporting requirements for small entities,
classification, consolidation, clarification or simplification of
compliance and reporting requirements, performance rather than design
standards, and exemptions. As the Commission originally stated in Order
No. 889, the OASIS regulations now known as Standards for Business
Practices and Communication Protocols for Public Utilities, apply only
to public utilities that own, operate, or control transmission
facilities subject to the Commission's jurisdiction and should a small
entity be subject to the Commission's jurisdiction, it may file for
waiver of the requirements. This is consistent with the exemption
provisions of the RFA. Accordingly, pursuant to section 605(b) of the
RFA,\61\ the Commission hereby certifies that the regulations proposed
herein will not have a significant adverse impact on a substantial
number of small entities.
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\61\ 5 U.S.C. 605(b).
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VII. Comment Procedures
55. 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 April 24, 2009. Comments must refer to
Docket No. RM05-5-013, and must include the commenter's name, the
organization they represent, if applicable, and their address. Comments
may be filed either in electronic or paper format.
56. Comments may 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 and commenters may attach
additional files with supporting information in certain other file
formats. Commenters filing electronically do not need to make a paper
filing. Commenters that are not able to file comments electronically
must send an original and 14 copies of their comments to: Federal
Energy Regulatory Commission, Secretary of the Commission, 888 First
Street, NE., Washington, DC 20426.
57. All comments will be placed in the Commission's public files
and may be viewed, printed, or downloaded remotely as described in the
Document Availability section below. Commenters on this proposal are
not required to serve copies of their comments on other commenters.
VIII. Document Availability
58. 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 FERC's Home Page (https://www.ferc.gov) and in FERC's
Public Reference Room during normal business hours (8:30 a.m. to 5 p.m.
Eastern time) at 888 First Street, NE., Room 2A, Washington, DC 20426.
59. From FERC's Home Page on the Internet, this information is
available in the eLibrary. The full text of this document is available
in the eLibrary both in PDF and Microsoft Word format for viewing,
printing, and/or downloading. To access this document in eLibrary, type
the docket number
[[Page 12747]]
excluding the last three digits of this document in the docket number
field.\62\
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\62\ NAESB's August 29, 2008 submittal is also available for
viewing in eLibrary. The link to this f
