Revised Mandatory Reliability Standards for Interchange Scheduling and Coordination, 68372-68376 [E9-30587]
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Federal Register / Vol. 74, No. 246 / Thursday, December 24, 2009 / Rules and Regulations
786; Notice of August 13, 2009, 74 FR 41325
(August 14, 2009); Notice of November 6,
2009, 74 FR 58187 (November 10, 2009).
PART 745—[AMENDED]
7. The authority citation for 15 CFR
part 745 is revised to read as follows:
■
Authority: 50 U.S.C. 1701 et seq.; E.O.
12938, 59 FR 59099, 3 CFR, 1994 Comp., p.
950; Notice of November 6, 2009, 74 FR
58187 (November 10, 2009).
PART 754—[AMENDED]
8. The authority citation for 15 CFR
part 754 is revised to read as follows:
■
Authority: 50 U.S.C. app. 2401 et seq.; 50
U.S.C. 1701 et seq.; 10 U.S.C. 7420; 10 U.S.C.
7430(e); 30 U.S.C. 185(s), 185(u); 42 U.S.C.
6212; 43 U.S.C. 1354; 15 U.S.C. 1824a; E.O.
11912, 41 FR 15825, 3 CFR, 1976 Comp., p.
114; E.O. 13222, 66 FR 44025, 3 CFR, 2001
Comp., p. 783; Notice of August 13, 2009, 74
FR 41325 (August 14, 2009).
PART 774—[AMENDED]
9. The authority citation for 15 CFR
part 774 is revised to read as follows:
■
Authority: 50 U.S.C. app. 2401 et seq.; 50
U.S.C. 1701 et seq.; 10 U.S.C. 7420; 10 U.S.C.
7430(e); 22 U.S.C. 287c, 22 U.S.C. 3201 et
seq.; 22 U.S.C. 6004; 30 U.S.C. 185(s), 185(u);
42 U.S.C. 2139a; 42 U.S.C. 6212; 43 U.S.C.
1354; 15 U.S.C. 1824a; 50 U.S.C. app. 5; 22
U.S.C. 7201 et seq.; 22 U.S.C. 7210; E.O.
13026, 61 FR 58767, 3 CFR, 1996 Comp., p.
228; E.O. 13222, 66 FR 44025, 3 CFR, 2001
Comp., p. 783; Notice of August 13, 2009, 74
FR 41325 (August 14, 2009).
Dated: December 18, 2009.
Matthew S. Borman,
Deputy Assistant Secretary for Export
Administration.
[FR Doc. E9–30481 Filed 12–23–09; 8:45 am]
BILLING CODE 3510–33–P
DEPARTMENT OF ENERGY
Federal Energy Regulatory
Commission
18 CFR Part 40
[Docket No. RM09–8–000; Order No. 730]
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Revised Mandatory Reliability
Standards for Interchange Scheduling
and Coordination
Issued December 17, 2009.
AGENCY: Federal Energy Regulatory
Commission, DOE.
ACTION: Final rule.
15:17 Dec 23, 2009
Jkt 220001
Order No. 730
Final Rule
Issued December 17, 2009
1. Pursuant to section 215 of the
Federal Power Act (FPA), the
Commission hereby approves three
revised Interchange Scheduling and
Coordination (INT) Reliability
Standards developed by the North
American Electric Reliability
Corporation (NERC): INT–005–3,
Interchange Authority Distributes
Arranged Interchange; INT–006–3,
Response to Interchange Authority; and
INT–008–3, Interchange Authority
Distribution of Information.1 The
approved changes provide consistency
in responding to interchange requests by
clarifying timing requirements for all
affected entities, and facilitate the
reliable operation of the Bulk-Power
System by providing Western Electricity
Coordinating Council (WECC) entities
sufficient time to assess and respond to
requests for interchange service.
I. Background
SUMMARY: Pursuant to section 215 of the
Federal Power Act, the Federal Energy
Regulatory Commission hereby
approves the North American Electric
Reliability Corporation’s revision of
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three Commission-approved Reliability
Standards, designated INT–005–3,
Interchange Authority Distributes
Arranged Interchange; INT–006–3,
Response to Interchange Authority; and
INT–008–3, Interchange Authority
Distributes Status.
DATES: Effective Date: The Final Rule
will become effective January 25, 2010.
FOR FURTHER INFORMATION CONTACT:
Danny Johnson (Technical Information),
Office of Electric Reliability, Division
of Reliability Standards, Federal
Energy Regulatory Commission, 888
First Street, NE., Washington, DC
20426, Telephone: (202) 502–8892.
Rheta Johnson (Technical Information),
Office of Electric Reliability, Division
of Reliability Standards, Federal
Energy Regulatory Commission, 888
First Street, NE., Washington, DC
20426, Telephone: (202) 502–6503.
Richard M. Wartchow (Legal
Information), Office of the General
Counsel, Federal Energy Regulatory
Commission, 888 First Street, NE.,
Washington, DC 20426, Telephone:
(202) 502–8744.
SUPPLEMENTARY INFORMATION:
Before Commissioners: Jon
Wellinghoff, Chairman; Suedeen G.
Kelly, Marc Spitzer, and Philip D.
Moeller.
A. EPAct 2005 and Mandatory
Reliability Standards
2. Section 215 of the FPA requires a
Commission-certified Electric
1 16 U.S.C. 824o. The Commission is not adding
any new or modified text to its regulations.
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Reliability Organization (ERO) to
develop mandatory and enforceable
Reliability Standards, which are subject
to Commission review and approval.
Section 215(d)(2) of the FPA states that
the Commission may approve, by rule or
order, a proposed Reliability Standard
or modification to a Reliability Standard
if it determines that the Standard is just,
reasonable, not unduly discriminatory
or preferential, and in the public
interest.2 If the Commission disapproves
of the proposed Standard in whole or in
part, it must remand the proposed
Standard to the ERO for further
consideration.3 Section 215(d)(5) grants
the Commission authority, upon its own
motion or upon complaint, to order the
ERO to submit to the Commission a
proposed Reliability Standard or a
modification to a Reliability Standard
that addresses a specific matter if the
Commission considers such a modified
Reliability Standard appropriate to carry
out section 215. Once approved, the
Reliability Standards may be enforced
by the ERO, subject to Commission
oversight, or by the Commission
independently.4
3. Pursuant to section 215 of the FPA,
the Commission established a process to
select and certify an ERO 5 and,
subsequently, certified NERC as the
ERO.6 On April 4, 2006, as modified on
August 28, 2006, NERC submitted to the
Commission a petition seeking approval
of 107 proposed Reliability Standards.
On March 16, 2007, the Commission
issued a Final Rule, Order No. 693,
approving 83 of these 107 Reliability
Standards and directing other action
related to these Reliability Standards.7
In addition, pursuant to section
215(d)(5) of the FPA, the Commission
directed NERC to develop modifications
to 56 of the 83 approved Reliability
Standards.8
B. Order No. 713
4. In response to a February 7, 2007
urgent action request from WECC, NERC
developed the version 2 INT Reliability
Standards, which were approved by the
2 16
U.S.C. 824o(d)(2).
U.S.C. 824o(d)(4).
4 See 16 U.S.C. 824o(e)(3).
5 Rules Concerning Certification of the Electric
Reliability Organization; and Procedures for the
Establishment, Approval and Enforcement of
Electric Reliability Standards, Order No. 672, FERC
Stats. & Regs. ¶ 31,204, order on reh’g, Order No.
672–A, FERC Stats. & Regs. ¶ 31,212 (2006).
6 North American Electric Reliability Corp., 116
FERC ¶ 61,062, order on reh’g & compliance, 117
FERC ¶ 61,126 (2006), aff’d Alcoa, Inc. v. FERC, 564
F.3d 1342 (D.C. Cir. 2009).
7 Mandatory Reliability Standards for the BulkPower System, Order No. 693, FERC Stats. & Regs.
¶ 31,242, order on reh’g, Order No. 693–A, 120
FERC ¶ 61,053 (2007).
8 16 U.S.C. 824o(d)(5).
3 16
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Federal Register / Vol. 74, No. 246 / Thursday, December 24, 2009 / Rules and Regulations
Commission in Order No. 713.9 The
version 2 changes increased from five to
ten minutes the time for entities in the
Western Interconnection to assess
interchange requests submitted from 30
to 60 minutes before the requested start
time.10 The approved version 2
Reliability Standards responded to a
problem that balancing authorities and
transmission service providers in WECC
were unable to review certain
interchange service requests during the
then universal five minute assessment
time.11 This inability caused the e-Tag
requests to be denied, requiring
resubmission and creating both
frustration and inefficiencies.12
5. NERC’s action in response to an
urgent action request must be made
permanent, through a full vetting in the
regular standards-development process.
Shortly after receiving the urgent action
request, WECC and a joint NERC/
NAESB 13 work group submitted a
Standards Authorization Request to
NERC seeking permanent revisions to
the INT Reliability Standards to
accommodate the expanded WECC
timing requirements. In response, NERC
developed the permanent revisions
embodied in the version 2 INT
Reliability Standards, along with new
glossary terms, discussed more fully
below.14
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C. NERC Filing
6. On February 5, 2009, NERC filed a
petition for Commission approval of the
9 Modification of Interchange and Transmission
Loading Relief Reliability Standards; and Electric
Reliability Organization Interpretation of Specific
Requirements of Four Reliability Standards, Order
No. 713, 124 FERC ¶ 61,071, at P 58–67 (2008).
10 Interchange service refers to requests for energy
transfers that cross balancing authority boundaries.
See NERC Glossary of Terms Used in Reliability
Standards (as revised) (glossary), Interchange
(2009). The glossary was originally filed with
NERC’s April 4, 2006 Request for Approval of
Reliability Standards in Docket No. RM06–16–000
and was affirmed in Order No. 693, FERC Stats. and
Regs. ¶ 31,242. The glossary is appended to the
Reliability Standards and is available on the NERC
Web site, https://www.nerc.com.
11 It was originally anticipated that different
practices in the Western Interconnection would be
reflected in a regional difference. However the
regional difference was withdrawn, making WECC
entities subject to the same practices in effect for
the Eastern Interconnection. See NERC, Compliance
Filing, RM08–16–000 (Jun. 14, 2007) (responding to
Commission directive in Order No. 693, FERC Stats.
and Regs. ¶ 31,242 at P 825, and withdrawing
request for approval of regional difference for the
Western Interconnection).
12 Order No. 713, 124 FERC ¶ 61,071 at P 63.
13 North American Energy Standards Board.
14 As with Reliability Standards, the Commission
also reviews and approves revisions to the NERC
glossary pursuant to FPA section 215(d)(2). Further,
the Commission may direct a modification to
address a specific matter identified by the
Commission pursuant to section 215(d)(5). See, e.g.,
Order No. 693, FERC Stats. and Regs. ¶ 31,242 at
P 1893–98.
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version 3 INT Reliability Standards,
INT–005–3; INT–006–3; and INT–008–
3.15 Reliability Standard INT–005–3
applies to interchange authorities and is
intended to ‘‘ensure that the
implementation of Interchange between
Source and Sink Balancing Authorities
is distributed by an Interchange
Authority such that Interchange
information is available for reliability
assessments.’’ 16 Reliability Standard
INT–006–3 applies to balancing
authorities and transmission service
providers and is intended to ‘‘ensure
that each Arranged Interchange is
checked for reliability before it is
implemented.’’ 17 Reliability Standard
INT–008–3 applies to interchange
authorities and is intended to ‘‘ensure
that the implementation of Interchange
between Source and Sink Balancing
Authorities is coordinated by an
Interchange Authority.’’ 18 Thus, INT–
008–3 contains requirements
establishing an interchange authority’s
responsibilities to oversee and
coordinate the interchange of electricity
from one balancing authority to another.
7. The revised INT Reliability
Standards incorporate separate timing
tables for the Western Interconnection
and the Eastern Interconnections, which
includes Electric Reliability Council of
Texas (ERCOT) and Hydro-Quebec.
Consistent with Order No. 713, these
tables affirm and clarify the increase in
the reliability assessment times for
WECC from five minutes to ten minutes
for requests submitted less than 60
minutes and no less than 15 minutes
prior to ramp start time. The tables
specify Western Interconnection
response times and clarify that
balancing authorities and transmission
service providers may submit on-time eTags 19 up to 20 minutes prior to the
operating hour. NERC also makes minor
textual modifications to clarify that all
entities subject to the INT Reliability
Standards must respond to ‘‘on-time’’
requests, as well as to all requests for
15 The revised INT Reliability Standards are
provided in the petition and are available on the
Commission’s eLibrary document retrieval system
in Docket No. RM09–8–000 and also on NERC’s
Web site, https://www.nerc.com.
16 INT–005–3, Purpose Statement.
17 INT–006–3, Purpose Statement.
18 INT–008–3, Purpose Statement.
19 Electronic Tagging, or e-Tag, is a request to
implement a new interchange transaction as a
physical energy flow, i.e., an RFI. The e-Tag
documents the requested physical interchange
transaction and identifies participants. E-Tags
include expected flows, and the information
provided may be used in mitigating constraints,
when needed. See NERC’s Joint Interchange
Scheduling Work Group, Electronic Tagging
Functional Specification Version 1.8.0 (Nov. 7,
2007); see also Order No. 693, FERC Stats. & Regs.
¶ 31,242 at P 795.
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68373
emergency and reliability adjustment
interchange service.20 NERC revises the
version 3 tables to accommodate regions
in which a response to arranged
interchange is required, and clarifies
INT–006–3, Measure M1 to correspond
more closely to Requirement R1.
8. Revised Requirement R1 of INT–
006–003 clarifies that balancing
authorities and transmission service
providers in all interconnections must
respond to ‘‘on-time’’ requests for
interchange service, as well as to each
request for Emergency and Reliability
Adjustment interchange services. To
implement these requirements, NERC
proposes three related definitions for its
glossary: ‘‘After the Fact,’’ ‘‘Emergency
Request for Interchange (RFI),’’ and
‘‘Reliability Adjustment RFI,’’ and
specifies appropriate responses for
‘‘Late,’’ ‘‘On-time’’ and ‘‘After the Fact’’
requests for service referenced in the
timing tables:
After the Fact: A time classification
assigned to a Request for Interchange (RFI)
when the submittal time is greater than one
hour after the start time of the RFI.
Emergency Request for Interchange: RFI to
be initiated [for] Emergency or Energy
Emergency conditions.
Reliability Adjustment RFI: Request to
modify an Implemented Interchange
Schedule for reliability purposes.
9. NERC states that the version 3 INT
Reliability Standards (INT–005–3, INT–
006–3, and INT–008–3) ensure the safe
and reliable operation of the Bulk-Power
System. According to NERC, the
Reliability Standards improve BulkPower System reliability by providing
WECC entities sufficient time to assess
and respond to requests for interchange
service. In addition, establishing a
separate timing table for WECC clarifies
the timing requirements for the Western
Interconnection. The timing
requirements for the Eastern
Interconnections (including ERCOT and
Hydro-Quebec) are also modified by
adopting the on-time, late, and after-thefact classifications and proposing
appropriate responses under the
Reliability Standards. NERC reports that
the new terms incorporated in the
timing tables are consistent with
existing industry e-Tag specifications,
which are used to request and arrange
interchange service, and use of these
terms will ensure uniform treatment for
all entities subject to the INT Reliability
Standards.
10. Consistent with the NERC Rules,
a NERC-assembled ballot body,
consisting of industry stakeholders,
developed the revisions using the NERC
Reliability Standards Development
20 INT–006–003,
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Requirement R1.
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Federal Register / Vol. 74, No. 246 / Thursday, December 24, 2009 / Rules and Regulations
Procedure.21 The NERC Board of
Trustees (Board) approved the
revisions.22 NERC requests that the
revised INT Reliability Standards be
effective on the first day of the quarter,
three months after regulatory approval
is granted.23
D. Notice of Proposed Rulemaking
(NOPR) and Comment
11. On June 18, 2009, the Commission
issued a NOPR seeking comment on its
proposal to approve NERC’s revisions to
Reliability Standards INT–005–3, INT–
006–3 and INT–008–3.24
12. No participant filed comments
opposing the Commission’s proposal to
approve NERC’s revised INT Reliability
Standards. In fact, Ameren Services Co.
filed the sole comment, requesting
clarification that a NOPR reference to
‘‘transmission operators’’ was not
intended to modify the Reliability
Standard requirements, which apply to
transmission service providers. The
reference is corrected to refer to
‘‘transmission service providers’’ in the
discussion in this order.
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II. Discussion
13. Pursuant to section 215(d) of the
FPA, the Commission approves
Reliability Standards INT–005–3, INT–
006–3 and INT–008–3 and the related
glossary terms as mandatory and
enforceable. The revised INT Reliability
Standards facilitate the reliable
operation of the Bulk-Power System by
providing WECC entities sufficient time
to assess and respond to requests for
interchange service before the
underlying e-Tags for these requests
expire, and by clarifying timing
requirements for all affected entities.
14. These version 3 INT Reliability
Standards finalize and improve upon
the version 2 changes approved in Order
No. 713. The Commission agrees that
separating the WECC- and EasternInterconnection/ERCOT requirements in
the timing tables adds clarity for entities
operating in the WECC system. In
addition, retaining the slightly modified
versions of the prior timing tables for
the Eastern Interconnection and ERCOT
helps to ensure consistency in
responding to interchange requests in
those areas.
21 See
NERC’s Rules of Procedures, Appendix 3A.
petition at 3.
23 The petition makes no modification to the
violation risk factors or violation severity levels for
the revised INT Reliability Standards. Therefore,
the currently effective violation risk factors and
violation severity levels will continue to apply.
24 Electric Reliability Organization Revised
Mandatory Reliability Standards for Interchange
Scheduling and Coordination, Notice of Proposed
Rulemaking, 74 FR 30027 (Jun. 24, 2009), FERC
Stats. & Regs. ¶ 32,643 (2009) (NOPR).
22 NERC
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15. Accordingly, the Commission
finds that the ERO’s revisions are just,
reasonable, not unduly discriminatory
or preferential, and in the public
interest. Therefore, the Commission
approves the revised INT Reliability
Standards as mandatory and
enforceable, effective as requested.25
While we are accepting the revised INT
Reliability Standards, the Commission
will discuss below specific issues, in
particular the changes to Reliability
Standard INT–006–3 to highlight the
effect on reliability.
Specific Issues
16. INT–006–3, Requirement R1
requires communication between
balancing authorities, transmission
service providers, and an interchange
authority regarding when to respond to
a request for interchange service:
Requirement R1: Prior to the expiration of
the reliability assessment period defined in
the timing requirements tables in this
standard, Column B, the Balancing Authority
and the Transmission Service Provider shall
respond to each On-time Request for
Interchange (RFI), and to each Emergency RFI
and Reliability Adjustment RFI from an
Interchange Authority to transition an
Arranged Interchange to a Confirmed
Interchange.
17. Balancing authorities and
transmission service providers must
review proposed interchange
transactions to ensure that transmission
service is available and system limits
are not violated and must inform the
interchange authority whether a request
may be confirmed.26 Reliability
coordinators and transmission service
providers must review composite energy
interchange transaction information to
ensure that their systems can
accommodate the energy, generation is
available based on start-up
characteristics, and the scheduling path
is available on both local and adjacent
systems.
18. NERC’s proposal incorporates one
important change from the version 2
requirements. The prior revision,
reflected in version 2, requires
responsible entities to ‘‘respond to a
request from an Interchange Authority
to transition an Arranged Interchange to
a Confirmed Interchange.’’ This
language suggests that a response is
required for requests within the
designated time periods. In version 3,
25 The petition makes no modification to the
violation risk factors or violation severity levels for
the revised INT Reliability Standards. Therefore,
the currently effective violation risk factors and
violation severity levels will continue to apply.
26 See INT–005–3, Requirement R1; INT–006–3,
Requirement R1 (Response to Interchange
Authority).
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Requirement R1 is clarified, directing
the applicable entity to respond to ‘‘ontime’’ requests for interchange service
within a given time period, and also to
all Emergency and Reliability
Adjustment requests for interchange
service.27 Entities are required to
respond to each of these latter two
requests regardless of the timelines
identified in the timing tables, with
paperwork to follow later. Time
classifications and deadlines apply to
both initial arranged interchange
submittals and any subsequent
modifications to the arranged
interchange.
19. The Commission finds the
clarification to INT–006–3, Requirement
R1 acceptable. Responsible entities are
still required to respond to all on-time
requests for interchange service, as well
as all requests for Emergency
interchange service and Reliability
Adjustment interchange service.
20. In Order No. 713, the Commission
approved version 2 of the INT
Reliability Standards, noting that
NERC’s compliance with the Order No.
693 directive to modify Reliability
Standard INT–006–1 is ongoing.28
While we accept the current changes, in
light of NERC’s efforts to modify the
Reliability Standards, we remind NERC
to ensure the Commission’s outstanding
directives are addressed in future
changes to the INT Reliability
Standards.
21. Consistent with the NOPR, the
Commission finds the revisions to the
three revised INT Reliability Standards,
INT–005–3, INT–006–3 and INT–008–3,
and the associated glossary terms
reasonable in providing consistent and
clear rules for responding to interchange
service requests. The Commission
accepts the revised INT Reliability
Standards as mandatory and enforceable
and the related glossary terms, as
discussed.
III. Information Collection Statement
22. The Office of Management and
Budget (OMB) regulations require that
OMB approve certain reporting and
recordkeeping (collections of
information) imposed by an agency.29
The information contained here is also
subject to review under section 3507(d)
of the Paperwork Reduction Act of
1995.30
23. As stated above, the Commission
previously approved, in Order No. 693,
each of the Reliability Standards that are
27 See
INT–006–3, Measure M1.
No. 713, 124 FERC ¶ 61,071 at P 67
(citing Order No. 693, FERC Stats. & Regs. ¶ 31,242
at P 866).
29 5 CFR 1320.11.
30 44 U.S.C. 3507(d).
28 Order
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Federal Register / Vol. 74, No. 246 / Thursday, December 24, 2009 / Rules and Regulations
the subject of the current rulemaking.
This Final Rule approves revisions to
three previously approved Reliability
Standards (as revised) developed by
NERC as the ERO. The approved
revisions relate to existing Reliability
Standards and do not substantially
change the requirements or reporting
obligations established by these
standards; therefore, they do not add to
or otherwise increase entities’ current
reporting burden. Thus, the Final Rule
does not materially and adversely affect
the burden estimates relating to the
currently effective version of the
Reliability Standards presented in Order
No. 693.
24. Reliability Standards INT–005–3,
INT–006–3, and INT–008–3 that are the
subject of the approved revisions were
approved in Order No. 693, and the
related information collection
requirements were reviewed and
approved, accordingly.31 The approved
revisions do not modify or otherwise
affect the collection of information
already in place. With respect to the INT
Reliability Standards, the revisions are
mainly concerned with the timing of
responses to requests for service rather
than the required documentation.32
Under the existing requirements,
affected entities were required to
respond to all requests for service
covered by the INT Reliability
Standards, while the approved revisions
clarify that entities need not respond to
late requests for service (with
exceptions for services needed for
emergency or reliability purposes). As
we noted above, the revisions continue
to be consistent with existing industry
e-Tag specifications used to request and
arrange interchange service and will
ensure uniform treatment for all entities
subject to the INT Reliability Standards.
The revised provisions apply to
processing requests for service in the
next hour, typically for economy energy
exchanges, and should not result in a
noticeable change in the e-Tagging
practices for power sales or in the
fulfillment of exchanges or ability to
attain cost savings. In fact, the revisions
should facilitate cost saving by affirming
that utilities must respond to all
emergency or reliability exchange
services requests, providing parties
submitting late requests with an
opportunity to correct their error.
31 See Order No. 693, FERC Stats. & Regs.
¶ 31,242 at P 1901–07.
32 The OMB control number used in this analysis
was issued in Docket No. RM06–16–000, Order No.
693, FERC Stats. and Regs. ¶ 31,242 at P 1907 and
incorporated to support the information collection
statement in Order No. 713, 124 FERC ¶ 61,071 at
P 69.
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25. Finally, the revisions do not
establish any significant reporting
obligations. The Commission does not
consider this a significant burden. We
did not receive any comments on our
determination in the NOPR with respect
to the reporting burden. We will submit
this Final Rule to OMB for
informational purposes.
Title: FERC–725A, Electric Reliability
Organization Revised Mandatory
Reliability Standards for Interchange
Scheduling and Coordination.
Action: Final Rule.
OMB Control No.: 1902–0244.
Respondents: Businesses or other forprofit institutions; not-for-profit
institutions.
Frequency of Responses: On
Occasion.
Necessity of the Information: This
Final Rule approves revisions of three
Commission-approved Reliability
Standards. The Final Rule finds that the
revisions promote reliable operation of
the Bulk-Power System; are just,
reasonable, not unduly discriminatory
or preferential; and in the public
interest.
26. Interested persons may obtain
information on the reporting
requirements by contacting the
following: Federal Energy Regulatory
Commission, 888 First Street, NE.
Washington, DC 20426 [Attention:
Michael Miller, Office of the Executive
Director, Phone: (202) 502–8415, fax:
(202) 273–0873, e-mail:
michael.miller@ferc.gov].
27. For submitting comments
concerning the collection(s) of
information and the associated burden
estimate(s), please send your comments
to the contact listed above and to the
Office of Information and Regulatory
Affairs, Office of Information and
Regulatory Affairs, Washington, DC
20503 [Attention: Desk Officer for the
Federal Energy Regulatory Commission,
phone (202) 395–4638, fax: (202) 395–
7285, e-mail:
oira_submission@omb.eop.gov].
IV. Environmental Analysis
28. 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.33 The Commission has
categorically excluded certain actions
from this requirement as not having a
significant effect on the human
environment. Included in the exclusion
are rules that are clarifying, corrective,
33 Regulations Implementing National
Environmental Policy Act of 1969, Order No. 486,
FERC Stats. & Regs. ¶ 30,783 (1987).
PO 00000
Frm 00007
Fmt 4700
Sfmt 4700
68375
or procedural or that do not
substantially change the effect of the
regulations being amended.34 The
actions proposed herein fall within this
categorical exclusion in the
Commission’s regulations.
V. Regulatory Flexibility Act Analysis
29. The Regulatory Flexibility Act of
1980 (RFA) 35 generally requires a
description and analysis of final rules
that will have significant economic
impact on a substantial number of small
entities. The RFA mandates
consideration of regulatory alternatives
that accomplish the stated objectives of
a proposed rule and that minimize any
significant economic impact on a
substantial number of small entities.
The Small Business Administration’s
Office of Size Standards develops the
numerical definition of a small
business.36 For electric utilities, a firm
is small if, including its affiliates, it is
primarily engaged in the transmission,
generation and/or distribution of
electric energy for sale and its total
electric output for the preceding twelve
months did not exceed four million
megawatt hours. The RFA is not
implicated by this Final Rule because
the revisions discussed herein will not
have a significant economic impact on
a substantial number of small entities.
30. In Order No. 693, the Commission
adopted policies to minimize the
burden on small entities, including
approving the ERO compliance registry
process to identify those entities
responsible for complying with
mandatory and enforceable Reliability
Standards. The ERO registers only those
distribution providers or load serving
entities that have a peak load of 25 MW
or greater and are directly connected to
the bulk electric system or are
designated as a responsible entity as
part of a required under-frequency load
shedding program or a required undervoltage load shedding program.
Similarly, for generators, the ERO
registers only individual units of 20
MVA or greater that are directly
connected to the bulk electric system,
generating plants with an aggregate
rating of 75 MVA or greater, any
blackstart unit material to a restoration
plan, or any generator that is material to
the reliability of the Bulk-Power System.
Further, the ERO will not register an
entity that meets the above criteria if it
has transferred responsibility for
compliance with mandatory Reliability
Standards to a joint action agency or
other organization. The Commission
34 18
CFR 380.4(a)(2)(ii).
U.S.C. 601–12.
36 See 13 CFR 121.201.
35 5
E:\FR\FM\24DER1.SGM
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68376
Federal Register / Vol. 74, No. 246 / Thursday, December 24, 2009 / Rules and Regulations
estimated that the Reliability Standards
approved in Order No. 693 would apply
to approximately 682 small entities
(excluding entities in Alaska and
Hawaii), but also pointed out that the
ERO’s Compliance Registry Criteria
allow for a joint action agency,
generation and transmission (G&T)
cooperative or similar organization to
accept compliance responsibility on
behalf of its members. Once these
organizations register with the ERO, the
number of small entities registered with
the ERO will diminish and, thus,
significantly reduce the impact on small
entities.37
31. Finally, as noted above, this Final
Rule addresses revisions of the INT
Reliability Standards, which were
already approved in Order No. 693, and,
therefore, do not create an additional
regulatory impact on small entities.
wwoods2 on DSK1DXX6B1PROD with RULES_PART 1
VI. Document Availability
32. In addition to publishing the full
text of this document in the Federal
Register, the Commission provides all
interested persons an opportunity to
view and/or print the contents of this
document via the Internet through the
Commission’s Home Page (https://
www.ferc.gov) and in the Commission’s
Public Reference Room during normal
business hours (8:30 a.m. to 5 p.m.
Eastern time) at 888 First Street, NE.,
Room 2A, Washington, DC 20426.
33. From the Commission’s Home
Page on the Internet, this information is
available on eLibrary. The full text of
this document is available on eLibrary
in PDF and Microsoft Word format for
viewing, printing, and/or downloading.
To access this document in eLibrary,
type the docket number excluding the
last three digits of this document in the
docket number field.
34. User assistance is available for
eLibrary and the Commission’s Web site
during normal business hours from
FERC Online Support at (202) 502–6652
(toll free at 1–866–208–3676) or e-mail
at ferconlinesupport@ferc.gov, or the
Public Reference Room at
(202) 502–8371, TTY (202) 502–8659.
E-mail the Public Reference Room at
public.referenceroom@ferc.gov.
VII. Effective Date and Congressional
Notification
35. These regulations are effective
January 25, 2010. The Commission has
determined, with the concurrence of the
Administrator of the Office of
37 To be included in the compliance registry, the
ERO determines whether a specific small entity has
a material impact on the Bulk-Power System. If
these small entities should have such an impact
then their compliance is justifiable as necessary for
Bulk-Power System reliability.
VerDate Nov<24>2008
15:17 Dec 23, 2009
Jkt 220001
Information and Regulatory Affairs of
OMB, that this rule is not a ‘‘major rule’’
as defined in section 351 of the Small
Business Regulatory Enforcement
Fairness Act of 1996.
List of Subjects in 18 CFR Part 40
Electric power, Electric utilities,
Reporting and recordkeeping
requirements.
By the Commission.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. E9–30587 Filed 12–23–09; 8:45 am]
BILLING CODE 6717–01–P
DEPARTMENT OF HOMELAND
SECURITY
Bureau of Customs and Border
Protection
19 CFR Part 149
[Docket Number USCBP–2007–0077]
RIN 1651–AA70
Importer Security Filing and Additional
Carrier Requirements; Correction
AGENCY: Customs and Border Protection,
Department of Homeland Security.
ACTION: Correcting amendments.
SUMMARY: This document contains
correcting amendments to the interim
final rule entitled ‘‘Importer Security
Filing and Additional Carrier
Requirements’’ published in the Federal
Register on November 25, 2008. The
interim final rule, which requires the
submission of an Importer Security
Filing (ISF) for cargo arriving in the
United States by vessel and a bond to
secure compliance with the ISF
requirement, inadvertently omitted the
liability amounts for breach of the
importer security filing bond and
neglected to make provision for using
the importer security filing bond to
secure a single ISF transaction. This
document clarifies the bond terms
applicable to the importer security filing
bond as set forth in an Appendix to the
Customs and Border Protection bond
regulations by adding the liability
amounts for a breach of the bond and by
adding a paragraph to cover a single
transaction.
DATES: This amendment is effective on
December 24, 2009. The compliance
dates for the regulations are set forth in
19 CFR 4.7c(d), 4.7d(f), and 149.2(g).
FOR FURTHER INFORMATION CONTACT:
Richard Di Nucci, Office of Field
Operations, (202) 344–2513.
PO 00000
Frm 00008
Fmt 4700
Sfmt 4700
SUPPLEMENTARY INFORMATION:
I. Background
On November 25, 2008, Customs and
Border Protection (CBP) published an
interim final rule entitled ‘‘Importer
Security Filing and Additional Carrier
Requirements’’ in the Federal Register
(73 FR 71730). Pursuant to that interim
final rule, an Importer Security Filing
(ISF) must be submitted for cargo
arriving within the limits of a port in the
United States by vessel prior to arrival
of the cargo. Generally, with certain
exceptions, the ISF must be filed no
later than 24 hours before the cargo to
which the information relates is laden
aboard a vessel at a foreign port. The
rule was effective on January 26, 2009.
On July 14, 2009, CBP published a
correction to the interim final rule in the
Federal Register (74 FR 33920) that
amended the regulations by providing
the time frame for transmitting an ISF
for shipments intended to be
transported in-bond for immediate
exportation or for transportation and
exportation. The document also
corrected two CBP Responses to
comments in the preamble text to align
them with the regulatory text.
II. Clarification of the ISF Bond Terms
Under the rule, all ISF Importers must
possess a bond as security for the ISF
requirement. Specifically, 19 CFR
149.5(b) provides that the ISF Importer
must possess a basic importation and
entry bond containing all the provisions
of 19 CFR 113.62, a basic custodial bond
containing all the provisions of 19 CFR
113.63, an international carrier bond
containing all the provisions of 19 CFR
113.64, a foreign trade zone operator
bond containing all the provisions of 19
CFR 113.73, or an importer security
filing bond as provided in Appendix D
of part 113 of 19 CFR. In light of this
bond requirement, CBP amended 19
CFR 113.62, 113.63, 113.64, and 113.73,
to provide that the principal agrees to
comply with ISF requirements and in
the event of a breach of the bond, agrees
to pay liquidated damages in the
amount of $5,000 per violation. CBP
also amended Part 113 by adding
Appendix D, titled ‘‘Appendix D to Part
113—Importer Security Filing Bond’’,
which lists the terms of the ISF bond.
However, the liquidated damages
language contained in the Appendix D
ISF bond does not expressly provide for
the payment of liquidated damages in
the amount of $5,000 per violation.
Instead, the Appendix D ISF bond
contains broad language that requires
ISF Importers to pay any amount
prescribed by law or regulation upon
demand by CBP for a violation of 19
E:\FR\FM\24DER1.SGM
24DER1
]]>Agencies
[Federal Register Volume 74, Number 246 (Thursday, December 24, 2009)]
[Rules and Regulations]
[Pages 68372-68376]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-30587]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
18 CFR Part 40
[Docket No. RM09-8-000; Order No. 730]
Revised Mandatory Reliability Standards for Interchange
Scheduling and Coordination
Issued December 17, 2009.
AGENCY: Federal Energy Regulatory Commission, DOE.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: Pursuant to section 215 of the Federal Power Act, the Federal
Energy Regulatory Commission hereby approves the North American
Electric Reliability Corporation's revision of three Commission-
approved Reliability Standards, designated INT-005-3, Interchange
Authority Distributes Arranged Interchange; INT-006-3, Response to
Interchange Authority; and INT-008-3, Interchange Authority Distributes
Status.
DATES: Effective Date: The Final Rule will become effective January 25,
2010.
FOR FURTHER INFORMATION CONTACT:
Danny Johnson (Technical Information), Office of Electric Reliability,
Division of Reliability Standards, Federal Energy Regulatory
Commission, 888 First Street, NE., Washington, DC 20426, Telephone:
(202) 502-8892.
Rheta Johnson (Technical Information), Office of Electric Reliability,
Division of Reliability Standards, Federal Energy Regulatory
Commission, 888 First Street, NE., Washington, DC 20426, Telephone:
(202) 502-6503.
Richard M. Wartchow (Legal Information), Office of the General Counsel,
Federal Energy Regulatory Commission, 888 First Street, NE.,
Washington, DC 20426, Telephone: (202) 502-8744.
SUPPLEMENTARY INFORMATION:
Before Commissioners: Jon Wellinghoff, Chairman; Suedeen G. Kelly,
Marc Spitzer, and Philip D. Moeller.
Order No. 730
Final Rule
Issued December 17, 2009
1. Pursuant to section 215 of the Federal Power Act (FPA), the
Commission hereby approves three revised Interchange Scheduling and
Coordination (INT) Reliability Standards developed by the North
American Electric Reliability Corporation (NERC): INT-005-3,
Interchange Authority Distributes Arranged Interchange; INT-006-3,
Response to Interchange Authority; and INT-008-3, Interchange Authority
Distribution of Information.\1\ The approved changes provide
consistency in responding to interchange requests by clarifying timing
requirements for all affected entities, and facilitate the reliable
operation of the Bulk-Power System by providing Western Electricity
Coordinating Council (WECC) entities sufficient time to assess and
respond to requests for interchange service.
---------------------------------------------------------------------------
\1\ 16 U.S.C. 824o. The Commission is not adding any new or
modified text to its regulations.
---------------------------------------------------------------------------
I. Background
A. EPAct 2005 and Mandatory Reliability Standards
2. Section 215 of the FPA requires a Commission-certified Electric
Reliability Organization (ERO) to develop mandatory and enforceable
Reliability Standards, which are subject to Commission review and
approval. Section 215(d)(2) of the FPA states that the Commission may
approve, by rule or order, a proposed Reliability Standard or
modification to a Reliability Standard if it determines that the
Standard is just, reasonable, not unduly discriminatory or
preferential, and in the public interest.\2\ If the Commission
disapproves of the proposed Standard in whole or in part, it must
remand the proposed Standard to the ERO for further consideration.\3\
Section 215(d)(5) grants the Commission authority, upon its own motion
or upon complaint, to order the ERO to submit to the Commission a
proposed Reliability Standard or a modification to a Reliability
Standard that addresses a specific matter if the Commission considers
such a modified Reliability Standard appropriate to carry out section
215. Once approved, the Reliability Standards may be enforced by the
ERO, subject to Commission oversight, or by the Commission
independently.\4\
---------------------------------------------------------------------------
\2\ 16 U.S.C. 824o(d)(2).
\3\ 16 U.S.C. 824o(d)(4).
\4\ See 16 U.S.C. 824o(e)(3).
---------------------------------------------------------------------------
3. Pursuant to section 215 of the FPA, the Commission established a
process to select and certify an ERO \5\ and, subsequently, certified
NERC as the ERO.\6\ On April 4, 2006, as modified on August 28, 2006,
NERC submitted to the Commission a petition seeking approval of 107
proposed Reliability Standards. On March 16, 2007, the Commission
issued a Final Rule, Order No. 693, approving 83 of these 107
Reliability Standards and directing other action related to these
Reliability Standards.\7\ In addition, pursuant to section 215(d)(5) of
the FPA, the Commission directed NERC to develop modifications to 56 of
the 83 approved Reliability Standards.\8\
---------------------------------------------------------------------------
\5\ Rules Concerning Certification of the Electric Reliability
Organization; and Procedures for the Establishment, Approval and
Enforcement of Electric Reliability Standards, Order No. 672, FERC
Stats. & Regs. ] 31,204, order on reh'g, Order No. 672-A, FERC
Stats. & Regs. ] 31,212 (2006).
\6\ North American Electric Reliability Corp., 116 FERC ]
61,062, order on reh'g & compliance, 117 FERC ] 61,126 (2006), aff'd
Alcoa, Inc. v. FERC, 564 F.3d 1342 (D.C. Cir. 2009).
\7\ Mandatory Reliability Standards for the Bulk-Power System,
Order No. 693, FERC Stats. & Regs. ] 31,242, order on reh'g, Order
No. 693-A, 120 FERC ] 61,053 (2007).
\8\ 16 U.S.C. 824o(d)(5).
---------------------------------------------------------------------------
B. Order No. 713
4. In response to a February 7, 2007 urgent action request from
WECC, NERC developed the version 2 INT Reliability Standards, which
were approved by the
[[Page 68373]]
Commission in Order No. 713.\9\ The version 2 changes increased from
five to ten minutes the time for entities in the Western
Interconnection to assess interchange requests submitted from 30 to 60
minutes before the requested start time.\10\ The approved version 2
Reliability Standards responded to a problem that balancing authorities
and transmission service providers in WECC were unable to review
certain interchange service requests during the then universal five
minute assessment time.\11\ This inability caused the e-Tag requests to
be denied, requiring resubmission and creating both frustration and
inefficiencies.\12\
---------------------------------------------------------------------------
\9\ Modification of Interchange and Transmission Loading Relief
Reliability Standards; and Electric Reliability Organization
Interpretation of Specific Requirements of Four Reliability
Standards, Order No. 713, 124 FERC ] 61,071, at P 58-67 (2008).
\10\ Interchange service refers to requests for energy transfers
that cross balancing authority boundaries. See NERC Glossary of
Terms Used in Reliability Standards (as revised) (glossary),
Interchange (2009). The glossary was originally filed with NERC's
April 4, 2006 Request for Approval of Reliability Standards in
Docket No. RM06-16-000 and was affirmed in Order No. 693, FERC
Stats. and Regs. ] 31,242. The glossary is appended to the
Reliability Standards and is available on the NERC Web site, https://www.nerc.com.
\11\ It was originally anticipated that different practices in
the Western Interconnection would be reflected in a regional
difference. However the regional difference was withdrawn, making
WECC entities subject to the same practices in effect for the
Eastern Interconnection. See NERC, Compliance Filing, RM08-16-000
(Jun. 14, 2007) (responding to Commission directive in Order No.
693, FERC Stats. and Regs. ] 31,242 at P 825, and withdrawing
request for approval of regional difference for the Western
Interconnection).
\12\ Order No. 713, 124 FERC ] 61,071 at P 63.
---------------------------------------------------------------------------
5. NERC's action in response to an urgent action request must be
made permanent, through a full vetting in the regular standards-
development process. Shortly after receiving the urgent action request,
WECC and a joint NERC/NAESB \13\ work group submitted a Standards
Authorization Request to NERC seeking permanent revisions to the INT
Reliability Standards to accommodate the expanded WECC timing
requirements. In response, NERC developed the permanent revisions
embodied in the version 2 INT Reliability Standards, along with new
glossary terms, discussed more fully below.\14\
---------------------------------------------------------------------------
\13\ North American Energy Standards Board.
\14\ As with Reliability Standards, the Commission also reviews
and approves revisions to the NERC glossary pursuant to FPA section
215(d)(2). Further, the Commission may direct a modification to
address a specific matter identified by the Commission pursuant to
section 215(d)(5). See, e.g., Order No. 693, FERC Stats. and Regs. ]
31,242 at P 1893-98.
---------------------------------------------------------------------------
C. NERC Filing
6. On February 5, 2009, NERC filed a petition for Commission
approval of the version 3 INT Reliability Standards, INT-005-3; INT-
006-3; and INT-008-3.\15\ Reliability Standard INT-005-3 applies to
interchange authorities and is intended to ``ensure that the
implementation of Interchange between Source and Sink Balancing
Authorities is distributed by an Interchange Authority such that
Interchange information is available for reliability assessments.''
\16\ Reliability Standard INT-006-3 applies to balancing authorities
and transmission service providers and is intended to ``ensure that
each Arranged Interchange is checked for reliability before it is
implemented.'' \17\ Reliability Standard INT-008-3 applies to
interchange authorities and is intended to ``ensure that the
implementation of Interchange between Source and Sink Balancing
Authorities is coordinated by an Interchange Authority.'' \18\ Thus,
INT-008-3 contains requirements establishing an interchange authority's
responsibilities to oversee and coordinate the interchange of
electricity from one balancing authority to another.
---------------------------------------------------------------------------
\15\ The revised INT Reliability Standards are provided in the
petition and are available on the Commission's eLibrary document
retrieval system in Docket No. RM09-8-000 and also on NERC's Web
site, https://www.nerc.com.
\16\ INT-005-3, Purpose Statement.
\17\ INT-006-3, Purpose Statement.
\18\ INT-008-3, Purpose Statement.
---------------------------------------------------------------------------
7. The revised INT Reliability Standards incorporate separate
timing tables for the Western Interconnection and the Eastern
Interconnections, which includes Electric Reliability Council of Texas
(ERCOT) and Hydro-Quebec. Consistent with Order No. 713, these tables
affirm and clarify the increase in the reliability assessment times for
WECC from five minutes to ten minutes for requests submitted less than
60 minutes and no less than 15 minutes prior to ramp start time. The
tables specify Western Interconnection response times and clarify that
balancing authorities and transmission service providers may submit on-
time e-Tags \19\ up to 20 minutes prior to the operating hour. NERC
also makes minor textual modifications to clarify that all entities
subject to the INT Reliability Standards must respond to ``on-time''
requests, as well as to all requests for emergency and reliability
adjustment interchange service.\20\ NERC revises the version 3 tables
to accommodate regions in which a response to arranged interchange is
required, and clarifies INT-006-3, Measure M1 to correspond more
closely to Requirement R1.
---------------------------------------------------------------------------
\19\ Electronic Tagging, or e-Tag, is a request to implement a
new interchange transaction as a physical energy flow, i.e., an RFI.
The e-Tag documents the requested physical interchange transaction
and identifies participants. E-Tags include expected flows, and the
information provided may be used in mitigating constraints, when
needed. See NERC's Joint Interchange Scheduling Work Group,
Electronic Tagging Functional Specification Version 1.8.0 (Nov. 7,
2007); see also Order No. 693, FERC Stats. & Regs. ] 31,242 at P
795.
\20\ INT-006-003, Requirement R1.
---------------------------------------------------------------------------
8. Revised Requirement R1 of INT-006-003 clarifies that balancing
authorities and transmission service providers in all interconnections
must respond to ``on-time'' requests for interchange service, as well
as to each request for Emergency and Reliability Adjustment interchange
services. To implement these requirements, NERC proposes three related
definitions for its glossary: ``After the Fact,'' ``Emergency Request
for Interchange (RFI),'' and ``Reliability Adjustment RFI,'' and
specifies appropriate responses for ``Late,'' ``On-time'' and ``After
the Fact'' requests for service referenced in the timing tables:
After the Fact: A time classification assigned to a Request for
Interchange (RFI) when the submittal time is greater than one hour
after the start time of the RFI.
Emergency Request for Interchange: RFI to be initiated [for]
Emergency or Energy Emergency conditions.
Reliability Adjustment RFI: Request to modify an Implemented
Interchange Schedule for reliability purposes.
9. NERC states that the version 3 INT Reliability Standards (INT-
005-3, INT-006-3, and INT-008-3) ensure the safe and reliable operation
of the Bulk-Power System. According to NERC, the Reliability Standards
improve Bulk-Power System reliability by providing WECC entities
sufficient time to assess and respond to requests for interchange
service. In addition, establishing a separate timing table for WECC
clarifies the timing requirements for the Western Interconnection. The
timing requirements for the Eastern Interconnections (including ERCOT
and Hydro-Quebec) are also modified by adopting the on-time, late, and
after-the-fact classifications and proposing appropriate responses
under the Reliability Standards. NERC reports that the new terms
incorporated in the timing tables are consistent with existing industry
e-Tag specifications, which are used to request and arrange interchange
service, and use of these terms will ensure uniform treatment for all
entities subject to the INT Reliability Standards.
10. Consistent with the NERC Rules, a NERC-assembled ballot body,
consisting of industry stakeholders, developed the revisions using the
NERC Reliability Standards Development
[[Page 68374]]
Procedure.\21\ The NERC Board of Trustees (Board) approved the
revisions.\22\ NERC requests that the revised INT Reliability Standards
be effective on the first day of the quarter, three months after
regulatory approval is granted.\23\
---------------------------------------------------------------------------
\21\ See NERC's Rules of Procedures, Appendix 3A.
\22\ NERC petition at 3.
\23\ The petition makes no modification to the violation risk
factors or violation severity levels for the revised INT Reliability
Standards. Therefore, the currently effective violation risk factors
and violation severity levels will continue to apply.
---------------------------------------------------------------------------
D. Notice of Proposed Rulemaking (NOPR) and Comment
11. On June 18, 2009, the Commission issued a NOPR seeking comment
on its proposal to approve NERC's revisions to Reliability Standards
INT-005-3, INT-006-3 and INT-008-3.\24\
---------------------------------------------------------------------------
\24\ Electric Reliability Organization Revised Mandatory
Reliability Standards for Interchange Scheduling and Coordination,
Notice of Proposed Rulemaking, 74 FR 30027 (Jun. 24, 2009), FERC
Stats. & Regs. ] 32,643 (2009) (NOPR).
---------------------------------------------------------------------------
12. No participant filed comments opposing the Commission's
proposal to approve NERC's revised INT Reliability Standards. In fact,
Ameren Services Co. filed the sole comment, requesting clarification
that a NOPR reference to ``transmission operators'' was not intended to
modify the Reliability Standard requirements, which apply to
transmission service providers. The reference is corrected to refer to
``transmission service providers'' in the discussion in this order.
II. Discussion
13. Pursuant to section 215(d) of the FPA, the Commission approves
Reliability Standards INT-005-3, INT-006-3 and INT-008-3 and the
related glossary terms as mandatory and enforceable. The revised INT
Reliability Standards facilitate the reliable operation of the Bulk-
Power System by providing WECC entities sufficient time to assess and
respond to requests for interchange service before the underlying e-
Tags for these requests expire, and by clarifying timing requirements
for all affected entities.
14. These version 3 INT Reliability Standards finalize and improve
upon the version 2 changes approved in Order No. 713. The Commission
agrees that separating the WECC- and Eastern-Interconnection/ERCOT
requirements in the timing tables adds clarity for entities operating
in the WECC system. In addition, retaining the slightly modified
versions of the prior timing tables for the Eastern Interconnection and
ERCOT helps to ensure consistency in responding to interchange requests
in those areas.
15. Accordingly, the Commission finds that the ERO's revisions are
just, reasonable, not unduly discriminatory or preferential, and in the
public interest. Therefore, the Commission approves the revised INT
Reliability Standards as mandatory and enforceable, effective as
requested.\25\ While we are accepting the revised INT Reliability
Standards, the Commission will discuss below specific issues, in
particular the changes to Reliability Standard INT-006-3 to highlight
the effect on reliability.
---------------------------------------------------------------------------
\25\ The petition makes no modification to the violation risk
factors or violation severity levels for the revised INT Reliability
Standards. Therefore, the currently effective violation risk factors
and violation severity levels will continue to apply.
---------------------------------------------------------------------------
Specific Issues
16. INT-006-3, Requirement R1 requires communication between
balancing authorities, transmission service providers, and an
interchange authority regarding when to respond to a request for
interchange service:
Requirement R1: Prior to the expiration of the reliability
assessment period defined in the timing requirements tables in this
standard, Column B, the Balancing Authority and the Transmission
Service Provider shall respond to each On-time Request for
Interchange (RFI), and to each Emergency RFI and Reliability
Adjustment RFI from an Interchange Authority to transition an
Arranged Interchange to a Confirmed Interchange.
17. Balancing authorities and transmission service providers must
review proposed interchange transactions to ensure that transmission
service is available and system limits are not violated and must inform
the interchange authority whether a request may be confirmed.\26\
Reliability coordinators and transmission service providers must review
composite energy interchange transaction information to ensure that
their systems can accommodate the energy, generation is available based
on start-up characteristics, and the scheduling path is available on
both local and adjacent systems.
---------------------------------------------------------------------------
\26\ See INT-005-3, Requirement R1; INT-006-3, Requirement R1
(Response to Interchange Authority).
---------------------------------------------------------------------------
18. NERC's proposal incorporates one important change from the
version 2 requirements. The prior revision, reflected in version 2,
requires responsible entities to ``respond to a request from an
Interchange Authority to transition an Arranged Interchange to a
Confirmed Interchange.'' This language suggests that a response is
required for requests within the designated time periods. In version 3,
Requirement R1 is clarified, directing the applicable entity to respond
to ``on-time'' requests for interchange service within a given time
period, and also to all Emergency and Reliability Adjustment requests
for interchange service.\27\ Entities are required to respond to each
of these latter two requests regardless of the timelines identified in
the timing tables, with paperwork to follow later. Time classifications
and deadlines apply to both initial arranged interchange submittals and
any subsequent modifications to the arranged interchange.
---------------------------------------------------------------------------
\27\ See INT-006-3, Measure M1.
---------------------------------------------------------------------------
19. The Commission finds the clarification to INT-006-3,
Requirement R1 acceptable. Responsible entities are still required to
respond to all on-time requests for interchange service, as well as all
requests for Emergency interchange service and Reliability Adjustment
interchange service.
20. In Order No. 713, the Commission approved version 2 of the INT
Reliability Standards, noting that NERC's compliance with the Order No.
693 directive to modify Reliability Standard INT-006-1 is ongoing.\28\
While we accept the current changes, in light of NERC's efforts to
modify the Reliability Standards, we remind NERC to ensure the
Commission's outstanding directives are addressed in future changes to
the INT Reliability Standards.
---------------------------------------------------------------------------
\28\ Order No. 713, 124 FERC ] 61,071 at P 67 (citing Order No.
693, FERC Stats. & Regs. ] 31,242 at P 866).
---------------------------------------------------------------------------
21. Consistent with the NOPR, the Commission finds the revisions to
the three revised INT Reliability Standards, INT-005-3, INT-006-3 and
INT-008-3, and the associated glossary terms reasonable in providing
consistent and clear rules for responding to interchange service
requests. The Commission accepts the revised INT Reliability Standards
as mandatory and enforceable and the related glossary terms, as
discussed.
III. Information Collection Statement
22. The Office of Management and Budget (OMB) regulations require
that OMB approve certain reporting and recordkeeping (collections of
information) imposed by an agency.\29\ The information contained here
is also subject to review under section 3507(d) of the Paperwork
Reduction Act of 1995.\30\
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\29\ 5 CFR 1320.11.
\30\ 44 U.S.C. 3507(d).
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23. As stated above, the Commission previously approved, in Order
No. 693, each of the Reliability Standards that are
[[Page 68375]]
the subject of the current rulemaking. This Final Rule approves
revisions to three previously approved Reliability Standards (as
revised) developed by NERC as the ERO. The approved revisions relate to
existing Reliability Standards and do not substantially change the
requirements or reporting obligations established by these standards;
therefore, they do not add to or otherwise increase entities' current
reporting burden. Thus, the Final Rule does not materially and
adversely affect the burden estimates relating to the currently
effective version of the Reliability Standards presented in Order No.
693.
24. Reliability Standards INT-005-3, INT-006-3, and INT-008-3 that
are the subject of the approved revisions were approved in Order No.
693, and the related information collection requirements were reviewed
and approved, accordingly.\31\ The approved revisions do not modify or
otherwise affect the collection of information already in place. With
respect to the INT Reliability Standards, the revisions are mainly
concerned with the timing of responses to requests for service rather
than the required documentation.\32\ Under the existing requirements,
affected entities were required to respond to all requests for service
covered by the INT Reliability Standards, while the approved revisions
clarify that entities need not respond to late requests for service
(with exceptions for services needed for emergency or reliability
purposes). As we noted above, the revisions continue to be consistent
with existing industry e-Tag specifications used to request and arrange
interchange service and will ensure uniform treatment for all entities
subject to the INT Reliability Standards. The revised provisions apply
to processing requests for service in the next hour, typically for
economy energy exchanges, and should not result in a noticeable change
in the e-Tagging practices for power sales or in the fulfillment of
exchanges or ability to attain cost savings. In fact, the revisions
should facilitate cost saving by affirming that utilities must respond
to all emergency or reliability exchange services requests, providing
parties submitting late requests with an opportunity to correct their
error.
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\31\ See Order No. 693, FERC Stats. & Regs. ] 31,242 at P 1901-
07.
\32\ The OMB control number used in this analysis was issued in
Docket No. RM06-16-000, Order No. 693, FERC Stats. and Regs. ]
31,242 at P 1907 and incorporated to support the information
collection statement in Order No. 713, 124 FERC ] 61,071 at P 69.
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25. Finally, the revisions do not establish any significant
reporting obligations. The Commission does not consider this a
significant burden. We did not receive any comments on our
determination in the NOPR with respect to the reporting burden. We will
submit this Final Rule to OMB for informational purposes.
Title: FERC-725A, Electric Reliability Organization Revised
Mandatory Reliability Standards for Interchange Scheduling and
Coordination.
Action: Final Rule.
OMB Control No.: 1902-0244.
Respondents: Businesses or other for-profit institutions; not-for-
profit institutions.
Frequency of Responses: On Occasion.
Necessity of the Information: This Final Rule approves revisions of
three Commission-approved Reliability Standards. The Final Rule finds
that the revisions promote reliable operation of the Bulk-Power System;
are just, reasonable, not unduly discriminatory or preferential; and in
the public interest.
26. Interested persons may obtain information on the reporting
requirements by contacting the following: Federal Energy Regulatory
Commission, 888 First Street, NE. Washington, DC 20426 [Attention:
Michael Miller, Office of the Executive Director, Phone: (202) 502-
8415, fax: (202) 273-0873, e-mail: michael.miller@ferc.gov].
27. For submitting comments concerning the collection(s) of
information and the associated burden estimate(s), please send your
comments to the contact listed above and to the Office of Information
and Regulatory Affairs, Office of Information and Regulatory Affairs,
Washington, DC 20503 [Attention: Desk Officer for the Federal Energy
Regulatory Commission, phone (202) 395-4638, fax: (202) 395-7285, e-
mail: oira_submission@omb.eop.gov].
IV. Environmental Analysis
28. 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.\33\ The
Commission has categorically excluded certain actions from this
requirement as not having a significant effect on the human
environment. Included in the exclusion are rules that are clarifying,
corrective, or procedural or that do not substantially change the
effect of the regulations being amended.\34\ The actions proposed
herein fall within this categorical exclusion in the Commission's
regulations.
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\33\ Regulations Implementing National Environmental Policy Act
of 1969, Order No. 486, FERC Stats. & Regs. ] 30,783 (1987).
\34\ 18 CFR 380.4(a)(2)(ii).
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V. Regulatory Flexibility Act Analysis
29. The Regulatory Flexibility Act of 1980 (RFA) \35\ generally
requires a description and analysis of final rules that will have
significant economic impact on a substantial number of small entities.
The RFA mandates consideration of regulatory alternatives that
accomplish the stated objectives of a proposed rule and that minimize
any significant economic impact on a substantial number of small
entities. The Small Business Administration's Office of Size Standards
develops the numerical definition of a small business.\36\ For electric
utilities, a firm is small if, including its affiliates, it is
primarily engaged in the transmission, generation and/or distribution
of electric energy for sale and its total electric output for the
preceding twelve months did not exceed four million megawatt hours. The
RFA is not implicated by this Final Rule because the revisions
discussed herein will not have a significant economic impact on a
substantial number of small entities.
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\35\ 5 U.S.C. 601-12.
\36\ See 13 CFR 121.201.
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30. In Order No. 693, the Commission adopted policies to minimize
the burden on small entities, including approving the ERO compliance
registry process to identify those entities responsible for complying
with mandatory and enforceable Reliability Standards. The ERO registers
only those distribution providers or load serving entities that have a
peak load of 25 MW or greater and are directly connected to the bulk
electric system or are designated as a responsible entity as part of a
required under-frequency load shedding program or a required under-
voltage load shedding program. Similarly, for generators, the ERO
registers only individual units of 20 MVA or greater that are directly
connected to the bulk electric system, generating plants with an
aggregate rating of 75 MVA or greater, any blackstart unit material to
a restoration plan, or any generator that is material to the
reliability of the Bulk-Power System. Further, the ERO will not
register an entity that meets the above criteria if it has transferred
responsibility for compliance with mandatory Reliability Standards to a
joint action agency or other organization. The Commission
[[Page 68376]]
estimated that the Reliability Standards approved in Order No. 693
would apply to approximately 682 small entities (excluding entities in
Alaska and Hawaii), but also pointed out that the ERO's Compliance
Registry Criteria allow for a joint action agency, generation and
transmission (G&T) cooperative or similar organization to accept
compliance responsibility on behalf of its members. Once these
organizations register with the ERO, the number of small entities
registered with the ERO will diminish and, thus, significantly reduce
the impact on small entities.\37\
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\37\ To be included in the compliance registry, the ERO
determines whether a specific small entity has a material impact on
the Bulk-Power System. If these small entities should have such an
impact then their compliance is justifiable as necessary for Bulk-
Power System reliability.
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31. Finally, as noted above, this Final Rule addresses revisions of
the INT Reliability Standards, which were already approved in Order No.
693, and, therefore, do not create an additional regulatory impact on
small entities.
VI. Document Availability
32. In addition to publishing the full text of this document in the
Federal Register, the Commission provides all interested persons an
opportunity to view and/or print the contents of this document via the
Internet through the Commission's Home Page (https://www.ferc.gov) and
in the Commission's Public Reference Room during normal business hours
(8:30 a.m. to 5 p.m. Eastern time) at 888 First Street, NE., Room 2A,
Washington, DC 20426.
33. From the Commission's Home Page on the Internet, this
information is available on eLibrary. The full text of this document is
available on eLibrary in PDF and Microsoft Word format for viewing,
printing, and/or downloading. To access this document in eLibrary, type
the docket number excluding the last three digits of this document in
the docket number field.
34. User assistance is available for eLibrary and the Commission's
Web site during normal business hours from FERC Online Support at (202)
502-6652 (toll free at 1-866-208-3676) or e-mail at
ferconlinesupport@ferc.gov, or the Public Reference Room at (202) 502-
8371, TTY (202) 502-8659. E-mail the Public Reference Room at
public.referenceroom@ferc.gov.
VII. Effective Date and Congressional Notification
35. These regulations are effective January 25, 2010. The
Commission has determined, with the concurrence of the Administrator of
the Office of Information and Regulatory Affairs of OMB, that this rule
is not a ``major rule'' as defined in section 351 of the Small Business
Regulatory Enforcement Fairness Act of 1996.
List of Subjects in 18 CFR Part 40
Electric power, Electric utilities, Reporting and recordkeeping
requirements.
By the Commission.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. E9-30587 Filed 12-23-09; 8:45 am]
BILLING CODE 6717-01-P
