Interpretation of Protection System Reliability Standard, 81152-81157 [2010-32356]
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Federal Register / Vol. 75, No. 247 / Monday, December 27, 2010 / Proposed Rules
establish certain standards of
‘‘presumptive compliance’’ and allow an
opportunity for institutions that do not
meet those standards to rebut the
presumption of noncompliance, or
should FHFA devise an alternative
structure, such as one that incorporates
‘‘bright line’’ tests for each of the various
eligibility requirements and does not
create presumptions that an institution
would be permitted to rebut? 27
Question Sixteen: Should FHFA play
a role in resolving close membership
issues, or leave them to the discretion of
the Banks?
III. Request for Comments
FHFA invites comments on all of the
issue discussed above, and will consider
all comments in developing a proposed
rule to amend its membership
regulations.
Dated: December 20, 2010.
Edward J. DeMarco,
Acting Director, Federal Housing Finance
Agency.
[FR Doc. 2010–32467 Filed 12–23–10; 8:45 am]
BILLING CODE 8070–01–P
DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Parts 732, 738, 740, 743, 758,
and 774
[Docket No. 100923470–0626–02]
Comments must be received by
BIS no later than February 7, 2011.
ADDRESSES: Comments on this
correction may be submitted to the
Federal rulemaking portal (https://www.
regulations.gov). The regulations.gov ID
for this rule is: BIS–2010–0038.
Comments may also be submitted via email to publiccomments@bis.doc.gov or
on paper to Regulatory Policy Division,
Bureau of Industry and Security, Room
2705, U.S. Department of Commerce,
Washington, DC 20230. Please refer to
RIN 0694–AF03 in all comments and in
the subject line of e-mail comments.
FOR FURTHER INFORMATION CONTACT:
William H. Arvin, Regulatory Policy
Division, e-mail warvin@bis.doc.gov,
telephone 202–482–2440.
SUPPLEMENTARY INFORMATION: The
address for submitting e-mail comments
was incorrectly stated under the
ADDRESSES caption of a proposed rule
entitled ‘‘Export Control Modernization:
Strategic Trade Authorization License
Exception’’ (75 FR 76653, December 9,
2010). This correction notice states the
correct e-mail address in the ADDESSSES
caption, which is publiccomments@bis.
doc.gov.
In proposed rule FR Doc. 2010–30968,
beginning on page 76653 in the issue of
December 9, 2010, make the following
correction: On page 76654, in the
ADDRESSES section, correct
‘‘publiccomments.bis.doc.gov’’ to read
‘‘publiccomments@bis.doc.gov’’.
DATES:
Bernard Kritzer,
Director, Office of Exporter Services.
RIN 0694–AF03
Export Control Modernization:
Strategic Trade Authorization License
Exception
[FR Doc. 2010–32441 Filed 12–23–10; 8:45 am]
Bureau of Industry and
Security, Commerce.
ACTION: Proposed rule; correction.
DEPARTMENT OF ENERGY
AGENCY:
This document corrects a
typographical error in the address for
submitting e-mail comments that
appeared in a proposed rule, ‘‘Export
Control Modernization: Strategic Trade
Authorization License Exception,’’
published on December 9, 2010.
SUMMARY:
BILLING CODE 3510–33–P
Federal Energy Regulatory
Commission
18 CFR Part 40
[Docket No. RM10–5–000]
Interpretation of Protection System
Reliability Standard
December 16, 2010.
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27 In
January 2010, FHFA revised its membership
regulations to implement statutory amendments
authorizing CDFIs to become Bank members. As
part of those revisions, FHFA allowed CDFI
applicants that could not demonstrate compliance
with certain of the specific standards relating to
financial condition to provide alternative
information demonstrating that they are in sound
financial condition. By raising the larger issue of
the appropriate regulatory structure for the
membership regulations FHFA does not intend to
change its policy, as evidenced by the recent
revisions, that CDFI applicants are to be given
latitude in demonstrating the soundness of their
financial condition.
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Federal Energy Regulatory
Commission, Energy.
ACTION: Notice of proposed rulemaking.
AGENCY:
The North American Electric
Reliability Corporation (NERC) has
submitted a petition (Petition)
requesting approval of NERC’s
interpretation of Requirement R1 of
Commission-approved Reliability
Standard PRC–005–1 (Transmission and
Generation Protection System
SUMMARY:
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Maintenance and Testing). The
Commission proposes to accept the
NERC proposed interpretation of
Requirement R1 of Reliability Standard
PRC–005–1, and proposes to direct
NERC to develop modifications to the
PRC–005–1 Reliability Standard, as
discussed below, through its Reliability
Standards development process to
address gaps in the Protection System
maintenance and testing standard,
highlighted by the proposed
interpretation.
DATES: Comments are due February 25,
2011.
ADDRESSES: You may submit comments,
identified by docket number and in
accordance with the requirements
posted on the Commission’s Web site,
https://www.ferc.gov. Comments may be
submitted by any of the following
methods:
• Agency Web Site: Documents
created electronically using word
processing software should be filed in
native applications or print-to-PDF
format and not in a scanned format, at
https://www.ferc.gov.doc-filing/
efiling.asp.
• Mail/Hand Delivery: Commenters
unable to file comments electronically
must mail or hand deliver an original of
their comments to: Federal Energy
Regulatory Commission, Secretary of the
Commission, 888 First Street, NE.,
Washington, DC 20426.
FOR FURTHER INFORMATION CONTACT: Ron
LeComte (Legal Information), Office of
the General Counsel, 888 First Street,
NE., Washington, DC 20426. 202–502–
8405. Ron.lecomte@ferc.gov.
Danny Johnson (Technical
Information), Office of Electric
Reliability, Division of Reliability
Standards, 888 First Street, NE.,
Washington, DC 20426. 202–502–8892.
Danny.johnson@ferc.gov.
SUPPLEMENTARY INFORMATION:
NERC submitted the Petition
requesting approval of NERC’s
interpretation of Requirement R1 of
Commission-approved Reliability
Standard PRC–005–1 (Transmission and
Generation Protection System
Maintenance and Testing). NERC
developed the interpretation in response
to a request for interpretation submitted
to NERC by the Regional Entities
Compliance Monitoring Processes
Working Group (Working Group).1 The
Commission proposes to accept the
NERC proposed interpretation of
Requirement R1 of Reliability Standard
1 The Working Group is a subcommittee of the
Regional Entity Management Group which consists
of the executive management of the eight Regional
Entities.
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PRC–005–1, and proposes to direct
NERC to develop modifications to the
PRC–005–1 Reliability Standard, as
discussed below, through its Reliability
Standards development process to
address gaps in the Protection System
maintenance and testing standard
highlighted by the proposed
interpretation, as discussed below. The
Commission seeks comments on its
proposal.
I. Background
2. Section 215 of the Federal Power
Act (FPA) requires a Commissioncertified Electric Reliability
Organization (ERO) to develop
mandatory and enforceable Reliability
Standards, which are subject to
Commission review and approval.2
Specifically, the Commission may
approve, by rule or order, a proposed
Reliability Standard or modification to a
Reliability Standard if it determines that
the Standard is just, reasonable, not
unduly discriminatory or preferential,
and in the public interest.3 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.6 On April
4, 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. 693,7
approving 83 of the 107 Reliability
Standards, including Reliability
Standard PRC–005–1. In addition,
pursuant to section 215(d)(5) of the
FPA,8 the Commission directed NERC to
develop modifications to 56 of the 83
approved Reliability Standards,
including PRC–005–0.9
4. NERC’s Rules of Procedure provide
that a person that is ‘‘directly and
materially affected’’ by Bulk-Power
2 16
U.S.C. 824.
824o(d)(2).
4 Id. 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 sub nom. Alcoa, Inc. v.
FERC, 564 F.3d 1342 (DC 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).
9 Order No. 693, FERC Stats. & Regs. ¶ 31,242 at
P 1475.
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System reliability may request an
interpretation of a Reliability
Standard.10 In response, the ERO will
assemble a team with relevant expertise
to address the requested interpretation
and also form a ballot pool. NERC’s
Rules of Procedure provide that, within
45 days, the team will draft an
interpretation of the reliability standard
and submit it to the ballot pool. If
approved by the ballot pool and
subsequently by the NERC Board of
Trustees (Board), the interpretation is
appended to the Reliability Standard
and filed with the applicable regulatory
authorities for approval.
II. Reliability Standard PRC–005–1
5. The purpose of PRC–005–1 is to
‘‘ensure all transmission and generation
Protection Systems affecting the
reliability of the Bulk Electric System
(BES) are maintained and tested.’’ In
particular, Requirement R1, requires
that:
R1. Each Transmission Owner and
any Distribution Provider that owns a
transmission Protection System and
each Generator Owner that owns a
generation Protection System shall have
a Protection System maintenance and
testing program for Protection Systems
that affect the reliability of the BES. The
program shall include:
R1.1. Maintenance and testing
intervals and their basis.
R1.2. Summary of maintenance and
testing procedures.
6. NERC defines ‘‘Protection System’’
as follows: ‘‘Protective relays, associated
communication systems, voltage and
current sensing devices, station batteries
and DC control circuitry.’’ 11
III. NERC Proposed Interpretation
7. In the NERC Petition, NERC
explains that it received a request from
the Working Group for an interpretation
of Reliability Standard PRC–005–1,
Requirement R1, addressing five
specific questions. Specifically, the
Working Group questions and NERC
proposed interpretations include:
Request 1: ‘‘Does R1 require a
maintenance and testing program for the
battery chargers for the ‘station batteries’
that are considered part of the
Protection System?’’
Response: ‘‘While battery chargers are
vital for ensuring ‘station batteries’ are
available to support Protection System
functions, they are not identified within
the definition of ‘Protection Systems.’
10 NERC Rules of Procedure, Appendix 3A,
Reliability Standards Development Procedure,
Version 6.1, at 26–27 (2007).
11 See NERC Glossary of Terms Used in
Reliability Standards at https://www.nerc.com/docs/
standards/rs/Glossary_of_Terms_2010April20.pdf.
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Therefore, PRC–005–1 does not
currently require maintenance and
testing of battery chargers.’’
Request 2: ‘‘Does R1 require a
maintenance and testing program for
auxiliary relays and sensing devices? If
so, what types of auxiliary relays and
sensing devices? (i.e., transformer
sudden pressure relays).’’
Response: ‘‘The existing definition of
‘Protection System’ does not include
auxiliary relays; therefore, maintenance
and testing of such devices is not
explicitly required. Maintenance and
testing of such devices is addressed to
the degree that an entity’s maintenance
and testing program for DC control
circuits involves maintenance and
testing of imbedded auxiliary relays.
Maintenance and testing of devices that
respond to quantities other than
electrical quantities (for example,
sudden pressure relays) are not
included within Requirement R1.’’
Request 3: ‘‘Does R1 require
maintenance and testing of transmission
line re-closing relays?’’
Response: ‘‘No. ‘Protective Relays’
refer to devices that detect and take
action for abnormal conditions.
Automatic restoration of transmission
lines is not a ‘protective’ function.’’
Request 4: ‘‘Does R1 require a
maintenance and testing program for the
DC circuitry that is just the circuitry
with relays and devices that control
actions on breakers, etc., or does R1
require a program for the entire circuit
from the battery charger to the relays to
circuit breakers and all associated
wiring?’’
Response: ‘‘PRC–005–1 requires that
entities (1) address DC control circuitry
within their program, (2) have a basis
for the way they address this item, and
(3) execute the program. Specific
additional requirements relative to the
scope and/or methods are not
established.’’
Request 5: ‘‘For R1, what are examples
of ‘associated communications systems’
that are part of ‘Protection Systems’ that
require a maintenance and testing
program?’’
Response: ‘‘Associated
communication systems’’ refer to
communication systems used to convey
essential Protection System tripping
logic, sometimes referred to as pilot
relaying or teleprotection. Examples
include the following:
—Communications equipment involved
in power-line-carrier relaying;
—Communications equipment involved
in various types of permissive
protection system applications;
—Direct transfer-trip systems;
—Digital communication systems.
* * * ’’
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8. In support of its request for
approval, NERC states that it believes
that this interpretation both fairly
represents the language of the
Reliability Standard and clarifies what
components should be included in the
maintenance and testing programs
specified in the requirement. NERC
states that this interpretation supports
the reliability of the Bulk-Power System
by providing greater clarity regarding
the components that make up a
Protection System as defined in the
NERC Glossary of Terms.
9. NERC states that an interpretation
of a Reliability Standard requirement
cannot expand the intent or meaning of
the requirement.12 As such, NERC states
that any modifications to the language
in the requirements must be processed
through the NERC Reliability Standards
Development Procedure, Version 6.1.
With this in mind, NERC further states
that it must clarify the requirement
language in PRC–005–1a to provide a
complete framework for maintenance
and testing of equipment necessary to
ensure the reliability of the Bulk Power
System. NERC states that this activity is
already underway in the scope of
Project 2007–17—Protection System
Maintenance and Testing.13
IV. Discussion
10. The Commission proposes to
accept NERC’s proposed interpretation
of Reliability Standard PRC–005–1
Requirement R1. As discussed above,
NERC’s Glossary defines ‘‘Protection
System’’ as: ‘‘Protective relays,
associated communication systems,
voltage and current sensing devices,
station batteries and DC control
circuitry.’’ NERC’s proposed
interpretation essentially identifies what
equipment is considered to be a
‘‘protective relay,’’ ‘‘associated
communication system,’’ ‘‘sensing
device,’’ or ‘‘station battery.’’ None of
these terms or phrases within the NERC
definition of ‘‘Protection System’’ are
further defined any where else. NERC’s
interpretation provides further meaning
to these phrases, is not inconsistent
with the language of the Reliability
Standard and, therefore, appears
12 NERC
Request for Approval of Interpretation at
8.
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13 NERC
Project 2007–17, Protection System
Maintenance and Testing proposes to revise the
definition of Protection System as ‘‘protective relays
which respond to electrical quantities,
communication systems necessary for correct
operation of protective functions, voltage and
current sensing devices providing inputs to
protective relays, station dc supply associated with
protective functions (including station batteries,
battery chargers, and non-battery-based dc supply),
and control circuitry associated with protective
functions through the trip coils(s) of the circuit
breakers or other interrupting devices.’’
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reasonable. Further, the interpretation
should assist in providing a consistent
understanding of what constitutes a
‘‘Protection System’’ for those entities
that must comply with Reliability
Standard PRC–005–1. Accordingly, we
proposed to approve NERC’s
interpretation.
11. However, we are concerned that
the proposed interpretation highlights a
gap in the required Protection System
maintenance and testing pursuant to
Requirement R1 of PRC–005–1.14 In
support of our concern, we note that the
NERC Glossary includes protective
relays within the definition of
Protection System. As discussed below,
we believe that all components that
serve in some protective capacity to
ensure reliable operation of the BulkPower System should be included
within the definition of ‘‘Protection
System’’ and should be maintained and
tested accordingly—not just the limited
subset identified in the NERC
interpretation. We note that NERC’s
practice prior to mandatory and
enforceable Reliability Standards
included such elements, and we believe
that that understanding should be
restored in either the definition or the
Reliability Standard. In particular, prior
to the Version 0 standards, NERC’s
Compliance Template for NERC
Planning Standard III.A.M4—System
Protection and Control, Transmission
Protection System, S4 (Protection
system maintenance and testing
programs shall be developed and
implemented) stated that
‘‘[t]ransmission system protection
identification [components] shall
include, but are not limited to; relays,
instrument transformers,
communication systems where
appropriate, and batteries’’ (emphasis
added).15 The ‘‘but are not limited to’’
language was not translated into the
14 Because the term ‘‘Protection System’’ is present
in other approved Reliability Standards, the
interpretation affects other Reliability Standards not
addressed within the scope of the proposed
interpretation.
15 The Requirement R1.1 provisions in the
development of the Version 0 definition of
Protection System maintenance and testing program
requirements included:
R1.1. Transmission protection system
identification shall include but are not limited to
(emphasis added):
R1.1.1. Relays.
R1.1.2. Instrument transformers.
R1.1.3. Communications systems, where
appropriate.
R1.1.4. Batteries.
R1.2. Documentation of maintenance and testing
intervals and their basis.
R1.3. Summary of testing procedure.
R1.4. Schedule for system testing.
R1.5. Schedule for system maintenance.
R1.6. Date last tested/maintained.
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Version 0 Reliability Standards that
were filed for Commission approval. In
addition to NERC’s Glossary definition,
the Institute of Electronics and
Electrical Engineers (IEEE) defines
‘‘protective relay’’ as a relay whose
‘‘function is to detect defective lines or
apparatus or other power system
conditions of an abnormal or dangerous
nature and to initiate appropriate
control circuit action.’’ Therefore, to
prevent a gap in reliability, any
component that detects any quantity
needed to take an action, or that
initiates any control action (initial
tripping, reclosing, lockout, etc.)
affecting the reliability of the BulkPower System should be included as a
component of a Protection System.
Accordingly, to address our concern,
pursuant to section 215(d)(5) of the
FPA, we propose to direct NERC to
develop a modification to the Reliability
Standard to include any component or
device that is designed to detect
defective lines or apparatuses or other
power system conditions of an abnormal
or dangerous nature and to initiate
appropriate control circuit actions.
A. Request 2
12. In response to Request 2, NERC
stated that the existing definition of
‘‘Protection System’’ ‘‘does not include
auxiliary relays,’’ and that auxiliary
relays need only be maintained if an
entity’s maintenance and testing
program ‘‘for DC control circuits
involves maintenance and testing of
imbedded auxiliary relays.’’ Further, the
interpretation excludes the maintenance
of all devices that ‘‘respond to quantities
other then electrical quantities’’ and,
specifically, sudden pressure relays. We
are concerned that these exclusions
contradict the purpose statement of
PRC–005–1, which provides that ‘‘all
transmission and generation Protection
Systems affecting the reliability of the
BES are maintained and tested,’’ and, as
discussed below, will result in a gap in
the maintenance and testing of
Protection Systems affecting the
reliability of the Bulk-Power System.
13. If auxiliary relays are included
within the Protection System, in
conjunction with other protective relays
(e.g., as a contact multiplier or interface
between dissimilar protective systems),
or as part of the Protection System
scheme (e.g., as the relay that initiates
a protective action for Bulk-Power
System elements), they must be
maintained and tested to prevent a gap
in the reliability affecting the BulkPower System. This requirement is
consistent with NERC’s
recommendation of Protection System
components specified for performance
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tests based on NERC’s historical
standards, and experience from system
events.16 Components include
protective relays, AC current and
voltage sources, communication
channel, DC control circuitry, auxiliary
relay, breaker trip coil, and DC source
as components of a Protection System.
This requirement is also consistent with
the Commission’s understanding of the
term ‘‘protective relay’’ used in the
NERC Glossary definition of Protection
System as including all of the
individual devices that are either
programmed or set to respond to
specific conditions, provide input as to
the status of facilities, provide or receive
signals from communication channels,
and initiate actions as required to assure
faults, other abnormal conditions, and
any other automatic action associated
with a fault or abnormal action intended
to assure reliability. Auxiliary relays
that are used either within the DC
control circuitry of a Protection System
or in conjunction with other Protective
System components,17 such as those
used as part of the communication
channels to provide or receive signals to
interface with the DC control circuitry,
and are necessary for the correct
operation of the Protection System, and
the failure to maintain the auxiliary
relay will result in a gap in the
maintenance and testing of Protection
System affecting the reliability of the
Bulk-Power System.
14. As noted previously, we also are
concerned that the proposed
interpretation excludes non-electrical
sensing relays. ‘‘Protective relays’’ are
listed as a component in the NERC
definition of ‘‘Protection System.’’ Under
a plain reading, the term ‘‘protective’’
describes a relay that serves to protect
the Reliable Operation of the BulkPower System, and thus includes all
relays with no stipulation or
requirements on device inputs. Some
protective relays that do not respond to
electric quantities (e.g., sudden pressure
relays) nevertheless should be
considered as part of the Protection
System because they can be crucial for
ensuring reliable operation. If a
component is designed to sense or take
action against an abnormal system
condition that will affect the reliable
16 See NERC Protection System Maintenance, A
Technical Reference, September 13, 2007; NERC
Protection System Reliability, Redundancy of
Protection System Elements, November 2008.
17 Such auxiliary relays may include lockout
relays, timer relays, breaker status relays, and
transfer trip output contacts which form the
necessary logic and decisions of the Protection
System that ultimately result in a trip or reclose of
a Bulk-Power System element through the trip
coil(s) of the circuit breaker or other interrupting
devices.
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operation of the Bulk-Power System,
excluding that component results in a
gap in the maintenance and testing of
relays affecting the reliability of the
Bulk-Power System. Accordingly,
pursuant to section 215(d)(5) of the
FPA, we propose that NERC propose a
modification to the Reliability Standard
to address our concern. Specifically, we
propose to direct NERC to include any
device, including auxiliary and backup
protection devices, that is designed to
sense or take action against any
abnormal system condition that will
affect reliable operation.
properly maintained and coordinated,21
we are concerned that excluding the
maintenance and testing of these
reclosing relays will result in a gap in
the maintenance and testing of relays
affecting the reliability of the BulkPower System. Accordingly, pursuant to
section 215(d)(5) of the FPA, we
propose that NERC propose a
modification to the Reliability Standard
to include the maintenance and testing
of reclosing relays affecting the
reliability of the Bulk-Power System.
B. Request 3
16. In Request 4, the Working Group
asks whether maintenance and testing of
the entire DC control circuitry is
required under Requirement R1. As
discussed above, we understand that
maintenance and testing of DC control
circuitry includes all components of DC
control circuitry necessary for ensuring
Reliable Operation. For a Protection
System to operate reliably, the DC
control circuitry must both have
appropriate current carrying capability
and be insulated sufficiently to maintain
appropriate voltages within the
protection system. We are concerned
that not establishing the specific
requirements relative to the scope and/
or methods for a maintenance and
testing program for the DC circuitry
results in a gap in the maintenance and
testing of Protection System
components affecting the reliability of
the Bulk-Power System. Accordingly,
pursuant to section 215(d)(5) of the
FPA, we propose to direct NERC to
develop a modification to the Reliability
Standard to address our concern.
Specifically, we propose to direct NERC
to develop a modification to the
Reliability Standard that explicitly
includes maintenance and testing of all
DC control circuitry that is necessary to
ensure proper operation of the
Protection System, including voltage
and continuity.
15. In request 3, the Working Group
asks whether Requirement R1 requires
maintenance and testing of transmission
line re-closing relays. Reclosing relays
are typically used on the Bulk-Power
System to address concerns with system
stability, system security, or continuity
of service, and must be maintained to
ensure correct operation.18 In addition,
because the operation of such highspeed reclosing relays is usually
automatic and within one second of the
tripping of the Bulk-Power System
element,19 the operation of these relays
must also be coordinated with the initial
tripping of the Bulk-Power System
element. A misoperating or
miscoordinated reclosing relay may
result in the reclosure of a Bulk-Power
System element back onto a fault or that
a misoperating or miscoordinated
reclosing relay may fail to operate after
a fault has been cleared, thus failing to
restore the element to service. As a
result, not only is damage to the BulkPower System element a concern, but
where misoperation and
miscoordination is an issue, the
stability/reliability of the Bulk-Power
System is threatened. While a reclosing
relay is not identified as a specific
component of the Protection System, if
it either is used in coordination with a
Protection System to achieve or meet
system performance requirements
established in other Commission—
approved Reliability Standards,20 or can
exacerbate fault conditions when not
18 We further note that the operation of reclosing
relays are also used in the derivation of
Interconnection Reliability Operating Limits
(IROLs) if high speed reclosing is part of the
protection scheme associated with the transmission
lines, which system operators use in real-time to
maintain reliable operation of the Bulk-Power
System.
19 High-speed reclosing is generally not used for
certain Bulk-Power System elements, fault types,
and conditions, e.g., transformers and underground
cables.
20 For example, they may be needed to meet the
performance requirement of the TPL (transmission
planning) Reliability Standards.
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C. Request 4
D. Conclusion
17. As discussed above, we propose to
accept the proposed interpretation.
However, we are concerned that there
are gaps in Protection System
maintenance and testing, as highlighted
by the interpretation. To address our
concerns, the Commission proposes to
direct NERC to develop modifications to
the PRC–005–1 Reliability Standards
through its Reliability Standards
development process.
21 One such outage occurred in ReliabilityFirst
resulting in the loss of over 4,000 MW of generation
and multiple 765 kV lines.
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V. Information Collection Statement
18. The Office of Management and
Budget (OMB) regulations require that
OMB approve certain reporting and
recordkeeping (collections of
information) imposed by an agency.22
The information contained here is also
subject to review under section 3507(d)
of the Paperwork Reduction Act of
1995.23
19. As stated above, the Commission
previously approved, in Order No. 693,
the Reliability Standard that is the
subject of the current Notice of
Proposed Rulemaking (NOPR). This
NOPR accepts an interpretation of the
currently approved Reliability Standard
and does not change this standard. The
interpretation of the current Reliability
Standard at issue in this rulemaking is
not expected to change the reporting
burden nor impose any additional
information collection requirements.
20. For the purposes of reviewing this
interpretation, the Commission seeks
information concerning whether the
interim interpretation as approved will
cause respondents to alter reporting
frequencies and potentially impose an
additional burden.
21. We will submit this proposed rule
to OMB for informational purposes.
Title: Mandatory Reliability Standards
for the Bulk-Power System.
Action: Proposed Collection.
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
proposed rule would approve an
interpretation of the specific
requirements of a Commission-approved
Reliability Standard. The proposed rule
would find the interpretation just,
reasonable, not unduly discriminatory
or preferential, and in the public
interest.
22. Interested persons may obtain
information on the reporting
requirements by contacting the
following: Federal Energy Regulatory
Commission, 888 First Street, NE.,
Washington, DC 20426 [Attention: Ellen
Brown, Office of the Executive Director,
phone: (202) 502–8663, fax: (202) 273–
0873, e-mail: data.clearance@ferc.gov].
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,
22 5
CFR 1320.11.
U.S.C. 3507(d).
23 44
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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, email: oira_submission@omb.eop.gov].
VI. Environmental Analysis
23. 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.24 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.25 The
actions proposed herein fall within this
categorical exclusion in the
Commission’s regulations.
VII. Regulatory Flexibility Act
24. The Regulatory Flexibility Act of
1980 (RFA) 26 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
(SBA) Office of Size Standards develops
the numerical definition of a small
business.27 The SBA has established a
size standard for electric utilities,
stating that 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.28 The RFA
is not implicated by this NOPR because
the interpretation discussed herein is
being accepted. With no changes to the
Reliability Standard as approved, the
proposal in this NOPR will not have a
significant economic impact on a
substantial number of small entities.
25. 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
24 Regulations Implementing the National
Environmental Policy Act, Order No. 486, FERC
Stats. & Regs. ¶ 30,783 (1987).
25 18 CFR 380.4(a)(2)(ii).
26 5 U.S.C. 601–612.
27 13 CFR 121.201.
28 Id. n.1.
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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
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.29
26. Finally, as noted above, this NOPR
accepts the interpretation of the PRC–
005–0 Reliability Standard, which was
already approved in Order No. 693, and,
therefore, does not create an additional
regulatory impact on small entities.
VIII. Comment Procedures
27. 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 February 25, 2011.
You may submit comments, identified
by docket number and in accordance
with the requirements posted on the
Commission’s Web site, https://
www.ferc.gov. Comments may be
29 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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submitted by any of the following
methods:
• Agency Web Site: Documents
created electronically using word
processing software should be filed in
native applications or print-to-PDF
format and not in a scanned format, at
https://www.ferc.gov/docs-filing/
efiling.asp.
• Mail/Hand Delivery: Commenters
unable to file comments electronically
must mail or hand deliver an original
copy of their comments to: Federal
Energy Regulatory Commission,
Secretary of the Commission, 888 First
Street, NE., Washington, DC 20426.
These requirements can be found on the
Commission’s Web site, see, e.g., the
‘‘Quick Reference Guide for Paper
Submissions,’’ available at https://
www.ferc.gov/docs-filing/efiling.asp, or
via phone from FERC Online Support at
202–502–6652 or toll-free at 1–866–
208–3676.
28. 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.
List of Subjects in 18 CFR Part 40
Electric power; Electric utilities;
Reporting and recordkeeping
requirements by direction of the
Commission.
Kimberly D. Bose,
Secretary.
[FR Doc. 2010–32356 Filed 12–23–10; 8:45 am]
BILLING CODE 6717–01–P
DEPARTMENT OF ENERGY
Federal Energy Regulatory
Commission
18 CFR Part 40
[Docket No. RM09–14–000]
Version One Regional Reliability
Standard for Transmission Operations
December 16, 2010.
Federal Energy Regulatory
Commission.
ACTION: Notice of proposed rulemaking.
AGENCY:
Under section 215 of the
Federal Power Act (FPA), the Federal
Energy Regulatory Commission
(Commission) proposes to approve
TOP–007–WECC–1 (System Operating
Limits) developed by the Western
Electric Coordinating Council (WECC)
IX. Document Availability
and submitted to the Commission for
approval by the North American Electric
29. In addition to publishing the full
Reliability Corporation. The revised
text of this document in the Federal
regional Reliability Standard would
Register, the Commission provides all
replace the approved WECC TOP–STD–
interested persons an opportunity to
007–0. While we propose to approve the
view and/or print the contents of this
regional Reliability Standard, as
document via the Internet through
discussed in this Notice of Proposed
FERC’s Home Page (https://www.ferc.gov) Rulemaking, TOP–007–WECC–1 raises
and in FERC’s Public Reference Room
some concerns about which the
during normal business hours (8:30 a.m. Commission requests additional
to 5 p.m. Eastern time) at 888 First
information. The Commission also
Street, NE., Room 2A, Washington, DC
proposes to direct WECC to develop
20426.
certain limited modifications to the
30. From FERC’s Home Page on the
regional Reliability Standard and the
Internet, this information is available on associated violation risk factor and
eLibrary. The full text of this document
violation severity levels as discussed
is available on eLibrary in PDF and
herein.
Microsoft Word format for viewing,
DATES: Comments are due February 25,
printing, and/or downloading. To access 2011.
this document in eLibrary, type the
ADDRESSES: You may submit comments,
docket number excluding the last three
identified by docket number and in
digits of this document in the docket
accordance with the requirements
number field.
posted on the Commission’s Web site
31. User assistance is available for
https://www.ferc.gov. Comments may be
eLibrary and the FERC’s Web site during submitted by any of the following
normal business hours from FERC
methods:
Online Support at 202–502–6652 (toll
• Agency Web Site: Documents
free at 1–866–208–3676) or e-mail at
created electronically using word
ferconlinesupport@ferc.gov, or the
processing software should be filed in
Public Reference Room at (202) 502–
native applications or print-to-PDF
8371, TTY (202) 502–8659. E-mail the
format and not in a scanned format, at
Public Reference Room at
https://www.ferc.gov/docs-filing/
public.referenceroom@ferc.gov.
efiling.asp.
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SUMMARY:
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81157
• Mail/Hand Delivery: Commenters
unable to file comments electronically
must mail or hand deliver an original
copy of their comments to: Federal
Energy Regulatory Commission,
Secretary of the Commission, 888 First
Street, NE., Washington, DC 20426.
These requirements can be found on the
Commission’s Web site, see, e.g., the
‘‘Quick Reference Guide for Paper
Submissions,’’ available at https://
www.ferc.gov/docs-filing/efiling.asp or
via phone from FERC Online Support at
202–502–6652 or toll-free at 1–866–
208–3676.
FOR FURTHER INFORMATION CONTACT:
Mindi Sauter (Legal Information), Office
of the General Counsel, Federal
Energy Regulatory Commission, 888
First Street, NE., Washington, DC
20426, (202) 502–6830.
E. Nick Henery (Technical Information),
Office of Electric Reliability, Division
of Policy Analysis and Rulemaking,
Federal Energy Regulatory
Commission, 888 First Street, NE.,
Washington, DC 20426, (202) 502–
8636.
Danny Johnson (Technical Information),
Office of Electric Reliability, Division
of Reliability Standards, Federal
Energy Regulatory Commission, 888
First Street, NE., Washington, DC
20426, (202) 502–8892.
SUPPLEMENTARY INFORMATION:
Notice of Proposed Rulemaking
1. Under section 215 of the Federal
Power Act (FPA),1 the Commission
proposes to approve TOP–007–WECC–1
(System Operating Limits) developed by
the Western Electricity Coordinating
Council (WECC) and submitted to the
Commission for approval by the North
American Electric Reliability
Corporation (NERC), which the
Commission has certified as the Electric
Reliability Organization (ERO)
responsible for developing and
enforcing mandatory Reliability
Standards.2 The revised regional
Reliability Standard, designated by
WECC as TOP–007–WECC–1,3 would
replace WECC TOP–STD–007–0. While
we propose to approve the regional
Reliability Standard, we are concerned
about certain provisions of TOP–007–
WECC–1, about which we request
additional information in public
1 16
U.S.C. 824o.
American Electric Reliability Corp., 116
FERC ¶ 61,062, order on reh’g & compliance, 117
FERC ¶ 61,126 (2006), aff’d sub nom. Alcoa, Inc.
v. FERC, 564 F.3d 1342 (D.C. Cir. 2009).
3 NERC designates the version number of a
Reliability Standard as the last digit of the
Reliability Standard number. Therefore, original
Reliability Standards end with ‘‘–0’’ and modified
version one Reliability Standards end with ‘‘–1.’’
2 North
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]]>Agencies
[Federal Register Volume 75, Number 247 (Monday, December 27, 2010)]
[Proposed Rules]
[Pages 81152-81157]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-32356]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
18 CFR Part 40
[Docket No. RM10-5-000]
Interpretation of Protection System Reliability Standard
December 16, 2010.
AGENCY: Federal Energy Regulatory Commission, Energy.
ACTION: Notice of proposed rulemaking.
-----------------------------------------------------------------------
SUMMARY: The North American Electric Reliability Corporation (NERC) has
submitted a petition (Petition) requesting approval of NERC's
interpretation of Requirement R1 of Commission-approved Reliability
Standard PRC-005-1 (Transmission and Generation Protection System
Maintenance and Testing). The Commission proposes to accept the NERC
proposed interpretation of Requirement R1 of Reliability Standard PRC-
005-1, and proposes to direct NERC to develop modifications to the PRC-
005-1 Reliability Standard, as discussed below, through its Reliability
Standards development process to address gaps in the Protection System
maintenance and testing standard, highlighted by the proposed
interpretation.
DATES: Comments are due February 25, 2011.
ADDRESSES: You may submit comments, identified by docket number and in
accordance with the requirements posted on the Commission's Web site,
https://www.ferc.gov. Comments may be submitted by any of the following
methods:
Agency Web Site: Documents created electronically using
word processing software should be filed in native applications or
print-to-PDF format and not in a scanned format, at https://www.ferc.gov.doc-filing/efiling.asp.
Mail/Hand Delivery: Commenters unable to file comments
electronically must mail or hand deliver an original of their comments
to: Federal Energy Regulatory Commission, Secretary of the Commission,
888 First Street, NE., Washington, DC 20426.
FOR FURTHER INFORMATION CONTACT: Ron LeComte (Legal Information),
Office of the General Counsel, 888 First Street, NE., Washington, DC
20426. 202-502-8405. Ron.lecomte@ferc.gov.
Danny Johnson (Technical Information), Office of Electric
Reliability, Division of Reliability Standards, 888 First Street, NE.,
Washington, DC 20426. 202-502-8892. Danny.johnson@ferc.gov.
SUPPLEMENTARY INFORMATION:
NERC submitted the Petition requesting approval of NERC's
interpretation of Requirement R1 of Commission-approved Reliability
Standard PRC-005-1 (Transmission and Generation Protection System
Maintenance and Testing). NERC developed the interpretation in response
to a request for interpretation submitted to NERC by the Regional
Entities Compliance Monitoring Processes Working Group (Working
Group).\1\ The Commission proposes to accept the NERC proposed
interpretation of Requirement R1 of Reliability Standard
[[Page 81153]]
PRC-005-1, and proposes to direct NERC to develop modifications to the
PRC-005-1 Reliability Standard, as discussed below, through its
Reliability Standards development process to address gaps in the
Protection System maintenance and testing standard highlighted by the
proposed interpretation, as discussed below. The Commission seeks
comments on its proposal.
---------------------------------------------------------------------------
\1\ The Working Group is a subcommittee of the Regional Entity
Management Group which consists of the executive management of the
eight Regional Entities.
---------------------------------------------------------------------------
I. Background
2. Section 215 of the Federal Power Act (FPA) requires a
Commission-certified Electric Reliability Organization (ERO) to develop
mandatory and enforceable Reliability Standards, which are subject to
Commission review and approval.\2\ Specifically, the Commission may
approve, by rule or order, a proposed Reliability Standard or
modification to a Reliability Standard if it determines that the
Standard is just, reasonable, not unduly discriminatory or
preferential, and in the public interest.\3\ 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. 824.
\3\ Id. 824o(d)(2).
\4\ Id. 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.\6\ On April 4, 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,\7\ approving
83 of the 107 Reliability Standards, including Reliability Standard
PRC-005-1. In addition, pursuant to section 215(d)(5) of the FPA,\8\
the Commission directed NERC to develop modifications to 56 of the 83
approved Reliability Standards, including PRC-005-0.\9\
---------------------------------------------------------------------------
\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 sub nom. Alcoa, Inc. v. FERC, 564 F.3d 1342 (DC 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).
\9\ Order No. 693, FERC Stats. & Regs. ] 31,242 at P 1475.
---------------------------------------------------------------------------
4. NERC's Rules of Procedure provide that a person that is
``directly and materially affected'' by Bulk-Power System reliability
may request an interpretation of a Reliability Standard.\10\ In
response, the ERO will assemble a team with relevant expertise to
address the requested interpretation and also form a ballot pool.
NERC's Rules of Procedure provide that, within 45 days, the team will
draft an interpretation of the reliability standard and submit it to
the ballot pool. If approved by the ballot pool and subsequently by the
NERC Board of Trustees (Board), the interpretation is appended to the
Reliability Standard and filed with the applicable regulatory
authorities for approval.
---------------------------------------------------------------------------
\10\ NERC Rules of Procedure, Appendix 3A, Reliability Standards
Development Procedure, Version 6.1, at 26-27 (2007).
---------------------------------------------------------------------------
II. Reliability Standard PRC-005-1
5. The purpose of PRC-005-1 is to ``ensure all transmission and
generation Protection Systems affecting the reliability of the Bulk
Electric System (BES) are maintained and tested.'' In particular,
Requirement R1, requires that:
R1. Each Transmission Owner and any Distribution Provider that owns
a transmission Protection System and each Generator Owner that owns a
generation Protection System shall have a Protection System maintenance
and testing program for Protection Systems that affect the reliability
of the BES. The program shall include:
R1.1. Maintenance and testing intervals and their basis.
R1.2. Summary of maintenance and testing procedures.
6. NERC defines ``Protection System'' as follows: ``Protective
relays, associated communication systems, voltage and current sensing
devices, station batteries and DC control circuitry.'' \11\
---------------------------------------------------------------------------
\11\ See NERC Glossary of Terms Used in Reliability Standards at
https://www.nerc.com/docs/standards/rs/Glossary_of_Terms_2010April20.pdf.
---------------------------------------------------------------------------
III. NERC Proposed Interpretation
7. In the NERC Petition, NERC explains that it received a request
from the Working Group for an interpretation of Reliability Standard
PRC-005-1, Requirement R1, addressing five specific questions.
Specifically, the Working Group questions and NERC proposed
interpretations include:
Request 1: ``Does R1 require a maintenance and testing program for
the battery chargers for the `station batteries' that are considered
part of the Protection System?''
Response: ``While battery chargers are vital for ensuring `station
batteries' are available to support Protection System functions, they
are not identified within the definition of `Protection Systems.'
Therefore, PRC-005-1 does not currently require maintenance and testing
of battery chargers.''
Request 2: ``Does R1 require a maintenance and testing program for
auxiliary relays and sensing devices? If so, what types of auxiliary
relays and sensing devices? (i.e., transformer sudden pressure
relays).''
Response: ``The existing definition of `Protection System' does not
include auxiliary relays; therefore, maintenance and testing of such
devices is not explicitly required. Maintenance and testing of such
devices is addressed to the degree that an entity's maintenance and
testing program for DC control circuits involves maintenance and
testing of imbedded auxiliary relays. Maintenance and testing of
devices that respond to quantities other than electrical quantities
(for example, sudden pressure relays) are not included within
Requirement R1.''
Request 3: ``Does R1 require maintenance and testing of
transmission line re-closing relays?''
Response: ``No. `Protective Relays' refer to devices that detect
and take action for abnormal conditions. Automatic restoration of
transmission lines is not a `protective' function.''
Request 4: ``Does R1 require a maintenance and testing program for
the DC circuitry that is just the circuitry with relays and devices
that control actions on breakers, etc., or does R1 require a program
for the entire circuit from the battery charger to the relays to
circuit breakers and all associated wiring?''
Response: ``PRC-005-1 requires that entities (1) address DC control
circuitry within their program, (2) have a basis for the way they
address this item, and (3) execute the program. Specific additional
requirements relative to the scope and/or methods are not
established.''
Request 5: ``For R1, what are examples of `associated
communications systems' that are part of `Protection Systems' that
require a maintenance and testing program?''
Response: ``Associated communication systems'' refer to
communication systems used to convey essential Protection System
tripping logic, sometimes referred to as pilot relaying or
teleprotection. Examples include the following:
--Communications equipment involved in power-line-carrier relaying;
--Communications equipment involved in various types of permissive
protection system applications;
--Direct transfer-trip systems;
--Digital communication systems. * * * ''
[[Page 81154]]
8. In support of its request for approval, NERC states that it
believes that this interpretation both fairly represents the language
of the Reliability Standard and clarifies what components should be
included in the maintenance and testing programs specified in the
requirement. NERC states that this interpretation supports the
reliability of the Bulk-Power System by providing greater clarity
regarding the components that make up a Protection System as defined in
the NERC Glossary of Terms.
9. NERC states that an interpretation of a Reliability Standard
requirement cannot expand the intent or meaning of the requirement.\12\
As such, NERC states that any modifications to the language in the
requirements must be processed through the NERC Reliability Standards
Development Procedure, Version 6.1. With this in mind, NERC further
states that it must clarify the requirement language in PRC-005-1a to
provide a complete framework for maintenance and testing of equipment
necessary to ensure the reliability of the Bulk Power System. NERC
states that this activity is already underway in the scope of Project
2007-17--Protection System Maintenance and Testing.\13\
---------------------------------------------------------------------------
\12\ NERC Request for Approval of Interpretation at 8.
\13\ NERC Project 2007-17, Protection System Maintenance and
Testing proposes to revise the definition of Protection System as
``protective relays which respond to electrical quantities,
communication systems necessary for correct operation of protective
functions, voltage and current sensing devices providing inputs to
protective relays, station dc supply associated with protective
functions (including station batteries, battery chargers, and non-
battery-based dc supply), and control circuitry associated with
protective functions through the trip coils(s) of the circuit
breakers or other interrupting devices.''
---------------------------------------------------------------------------
IV. Discussion
10. The Commission proposes to accept NERC's proposed
interpretation of Reliability Standard PRC-005-1 Requirement R1. As
discussed above, NERC's Glossary defines ``Protection System'' as:
``Protective relays, associated communication systems, voltage and
current sensing devices, station batteries and DC control circuitry.''
NERC's proposed interpretation essentially identifies what equipment is
considered to be a ``protective relay,'' ``associated communication
system,'' ``sensing device,'' or ``station battery.'' None of these
terms or phrases within the NERC definition of ``Protection System''
are further defined any where else. NERC's interpretation provides
further meaning to these phrases, is not inconsistent with the language
of the Reliability Standard and, therefore, appears reasonable.
Further, the interpretation should assist in providing a consistent
understanding of what constitutes a ``Protection System'' for those
entities that must comply with Reliability Standard PRC-005-1.
Accordingly, we proposed to approve NERC's interpretation.
11. However, we are concerned that the proposed interpretation
highlights a gap in the required Protection System maintenance and
testing pursuant to Requirement R1 of PRC-005-1.\14\ In support of our
concern, we note that the NERC Glossary includes protective relays
within the definition of Protection System. As discussed below, we
believe that all components that serve in some protective capacity to
ensure reliable operation of the Bulk-Power System should be included
within the definition of ``Protection System'' and should be maintained
and tested accordingly--not just the limited subset identified in the
NERC interpretation. We note that NERC's practice prior to mandatory
and enforceable Reliability Standards included such elements, and we
believe that that understanding should be restored in either the
definition or the Reliability Standard. In particular, prior to the
Version 0 standards, NERC's Compliance Template for NERC Planning
Standard III.A.M4--System Protection and Control, Transmission
Protection System, S4 (Protection system maintenance and testing
programs shall be developed and implemented) stated that
``[t]ransmission system protection identification [components] shall
include, but are not limited to; relays, instrument transformers,
communication systems where appropriate, and batteries'' (emphasis
added).\15\ The ``but are not limited to'' language was not translated
into the Version 0 Reliability Standards that were filed for Commission
approval. In addition to NERC's Glossary definition, the Institute of
Electronics and Electrical Engineers (IEEE) defines ``protective
relay'' as a relay whose ``function is to detect defective lines or
apparatus or other power system conditions of an abnormal or dangerous
nature and to initiate appropriate control circuit action.'' Therefore,
to prevent a gap in reliability, any component that detects any
quantity needed to take an action, or that initiates any control action
(initial tripping, reclosing, lockout, etc.) affecting the reliability
of the Bulk-Power System should be included as a component of a
Protection System. Accordingly, to address our concern, pursuant to
section 215(d)(5) of the FPA, we propose to direct NERC to develop a
modification to the Reliability Standard to include any component or
device that is designed to detect defective lines or apparatuses or
other power system conditions of an abnormal or dangerous nature and to
initiate appropriate control circuit actions.
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\14\ Because the term ``Protection System'' is present in other
approved Reliability Standards, the interpretation affects other
Reliability Standards not addressed within the scope of the proposed
interpretation.
\15\ The Requirement R1.1 provisions in the development of the
Version 0 definition of Protection System maintenance and testing
program requirements included:
R1.1. Transmission protection system identification shall
include but are not limited to (emphasis added):
R1.1.1. Relays.
R1.1.2. Instrument transformers.
R1.1.3. Communications systems, where appropriate.
R1.1.4. Batteries.
R1.2. Documentation of maintenance and testing intervals and
their basis.
R1.3. Summary of testing procedure.
R1.4. Schedule for system testing.
R1.5. Schedule for system maintenance.
R1.6. Date last tested/maintained.
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A. Request 2
12. In response to Request 2, NERC stated that the existing
definition of ``Protection System'' ``does not include auxiliary
relays,'' and that auxiliary relays need only be maintained if an
entity's maintenance and testing program ``for DC control circuits
involves maintenance and testing of imbedded auxiliary relays.''
Further, the interpretation excludes the maintenance of all devices
that ``respond to quantities other then electrical quantities'' and,
specifically, sudden pressure relays. We are concerned that these
exclusions contradict the purpose statement of PRC-005-1, which
provides that ``all transmission and generation Protection Systems
affecting the reliability of the BES are maintained and tested,'' and,
as discussed below, will result in a gap in the maintenance and testing
of Protection Systems affecting the reliability of the Bulk-Power
System.
13. If auxiliary relays are included within the Protection System,
in conjunction with other protective relays (e.g., as a contact
multiplier or interface between dissimilar protective systems), or as
part of the Protection System scheme (e.g., as the relay that initiates
a protective action for Bulk-Power System elements), they must be
maintained and tested to prevent a gap in the reliability affecting the
Bulk-Power System. This requirement is consistent with NERC's
recommendation of Protection System components specified for
performance
[[Page 81155]]
tests based on NERC's historical standards, and experience from system
events.\16\ Components include protective relays, AC current and
voltage sources, communication channel, DC control circuitry, auxiliary
relay, breaker trip coil, and DC source as components of a Protection
System. This requirement is also consistent with the Commission's
understanding of the term ``protective relay'' used in the NERC
Glossary definition of Protection System as including all of the
individual devices that are either programmed or set to respond to
specific conditions, provide input as to the status of facilities,
provide or receive signals from communication channels, and initiate
actions as required to assure faults, other abnormal conditions, and
any other automatic action associated with a fault or abnormal action
intended to assure reliability. Auxiliary relays that are used either
within the DC control circuitry of a Protection System or in
conjunction with other Protective System components,\17\ such as those
used as part of the communication channels to provide or receive
signals to interface with the DC control circuitry, and are necessary
for the correct operation of the Protection System, and the failure to
maintain the auxiliary relay will result in a gap in the maintenance
and testing of Protection System affecting the reliability of the Bulk-
Power System.
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\16\ See NERC Protection System Maintenance, A Technical
Reference, September 13, 2007; NERC Protection System Reliability,
Redundancy of Protection System Elements, November 2008.
\17\ Such auxiliary relays may include lockout relays, timer
relays, breaker status relays, and transfer trip output contacts
which form the necessary logic and decisions of the Protection
System that ultimately result in a trip or reclose of a Bulk-Power
System element through the trip coil(s) of the circuit breaker or
other interrupting devices.
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14. As noted previously, we also are concerned that the proposed
interpretation excludes non-electrical sensing relays. ``Protective
relays'' are listed as a component in the NERC definition of
``Protection System.'' Under a plain reading, the term ``protective''
describes a relay that serves to protect the Reliable Operation of the
Bulk-Power System, and thus includes all relays with no stipulation or
requirements on device inputs. Some protective relays that do not
respond to electric quantities (e.g., sudden pressure relays)
nevertheless should be considered as part of the Protection System
because they can be crucial for ensuring reliable operation. If a
component is designed to sense or take action against an abnormal
system condition that will affect the reliable operation of the Bulk-
Power System, excluding that component results in a gap in the
maintenance and testing of relays affecting the reliability of the
Bulk-Power System. Accordingly, pursuant to section 215(d)(5) of the
FPA, we propose that NERC propose a modification to the Reliability
Standard to address our concern. Specifically, we propose to direct
NERC to include any device, including auxiliary and backup protection
devices, that is designed to sense or take action against any abnormal
system condition that will affect reliable operation.
B. Request 3
15. In request 3, the Working Group asks whether Requirement R1
requires maintenance and testing of transmission line re-closing
relays. Reclosing relays are typically used on the Bulk-Power System to
address concerns with system stability, system security, or continuity
of service, and must be maintained to ensure correct operation.\18\ In
addition, because the operation of such high-speed reclosing relays is
usually automatic and within one second of the tripping of the Bulk-
Power System element,\19\ the operation of these relays must also be
coordinated with the initial tripping of the Bulk-Power System element.
A misoperating or miscoordinated reclosing relay may result in the
reclosure of a Bulk-Power System element back onto a fault or that a
misoperating or miscoordinated reclosing relay may fail to operate
after a fault has been cleared, thus failing to restore the element to
service. As a result, not only is damage to the Bulk-Power System
element a concern, but where misoperation and miscoordination is an
issue, the stability/reliability of the Bulk-Power System is
threatened. While a reclosing relay is not identified as a specific
component of the Protection System, if it either is used in
coordination with a Protection System to achieve or meet system
performance requirements established in other Commission--approved
Reliability Standards,\20\ or can exacerbate fault conditions when not
properly maintained and coordinated,\21\ we are concerned that
excluding the maintenance and testing of these reclosing relays will
result in a gap in the maintenance and testing of relays affecting the
reliability of the Bulk-Power System. Accordingly, pursuant to section
215(d)(5) of the FPA, we propose that NERC propose a modification to
the Reliability Standard to include the maintenance and testing of
reclosing relays affecting the reliability of the Bulk-Power System.
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\18\ We further note that the operation of reclosing relays are
also used in the derivation of Interconnection Reliability Operating
Limits (IROLs) if high speed reclosing is part of the protection
scheme associated with the transmission lines, which system
operators use in real-time to maintain reliable operation of the
Bulk-Power System.
\19\ High-speed reclosing is generally not used for certain
Bulk-Power System elements, fault types, and conditions, e.g.,
transformers and underground cables.
\20\ For example, they may be needed to meet the performance
requirement of the TPL (transmission planning) Reliability
Standards.
\21\ One such outage occurred in ReliabilityFirst resulting in
the loss of over 4,000 MW of generation and multiple 765 kV lines.
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C. Request 4
16. In Request 4, the Working Group asks whether maintenance and
testing of the entire DC control circuitry is required under
Requirement R1. As discussed above, we understand that maintenance and
testing of DC control circuitry includes all components of DC control
circuitry necessary for ensuring Reliable Operation. For a Protection
System to operate reliably, the DC control circuitry must both have
appropriate current carrying capability and be insulated sufficiently
to maintain appropriate voltages within the protection system. We are
concerned that not establishing the specific requirements relative to
the scope and/or methods for a maintenance and testing program for the
DC circuitry results in a gap in the maintenance and testing of
Protection System components affecting the reliability of the Bulk-
Power System. Accordingly, pursuant to section 215(d)(5) of the FPA, we
propose to direct NERC to develop a modification to the Reliability
Standard to address our concern. Specifically, we propose to direct
NERC to develop a modification to the Reliability Standard that
explicitly includes maintenance and testing of all DC control circuitry
that is necessary to ensure proper operation of the Protection System,
including voltage and continuity.
D. Conclusion
17. As discussed above, we propose to accept the proposed
interpretation. However, we are concerned that there are gaps in
Protection System maintenance and testing, as highlighted by the
interpretation. To address our concerns, the Commission proposes to
direct NERC to develop modifications to the PRC-005-1 Reliability
Standards through its Reliability Standards development process.
[[Page 81156]]
V. Information Collection Statement
18. The Office of Management and Budget (OMB) regulations require
that OMB approve certain reporting and recordkeeping (collections of
information) imposed by an agency.\22\ The information contained here
is also subject to review under section 3507(d) of the Paperwork
Reduction Act of 1995.\23\
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\22\ 5 CFR 1320.11.
\23\ 44 U.S.C. 3507(d).
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19. As stated above, the Commission previously approved, in Order
No. 693, the Reliability Standard that is the subject of the current
Notice of Proposed Rulemaking (NOPR). This NOPR accepts an
interpretation of the currently approved Reliability Standard and does
not change this standard. The interpretation of the current Reliability
Standard at issue in this rulemaking is not expected to change the
reporting burden nor impose any additional information collection
requirements.
20. For the purposes of reviewing this interpretation, the
Commission seeks information concerning whether the interim
interpretation as approved will cause respondents to alter reporting
frequencies and potentially impose an additional burden.
21. We will submit this proposed rule to OMB for informational
purposes.
Title: Mandatory Reliability Standards for the Bulk-Power System.
Action: Proposed Collection.
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 proposed rule would approve an
interpretation of the specific requirements of a Commission-approved
Reliability Standard. The proposed rule would find the interpretation
just, reasonable, not unduly discriminatory or preferential, and in the
public interest.
22. Interested persons may obtain information on the reporting
requirements by contacting the following: Federal Energy Regulatory
Commission, 888 First Street, NE., Washington, DC 20426 [Attention:
Ellen Brown, Office of the Executive Director, phone: (202) 502-8663,
fax: (202) 273-0873, e-mail: data.clearance@ferc.gov]. 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)
395-7345, fax: (202) 395-7285, e-mail: oira_submission@omb.eop.gov].
VI. Environmental Analysis
23. 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.\24\ 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.\25\ The actions proposed
herein fall within this categorical exclusion in the Commission's
regulations.
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\24\ Regulations Implementing the National Environmental Policy
Act, Order No. 486, FERC Stats. & Regs. ] 30,783 (1987).
\25\ 18 CFR 380.4(a)(2)(ii).
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VII. Regulatory Flexibility Act
24. The Regulatory Flexibility Act of 1980 (RFA) \26\ 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 (SBA) Office of Size
Standards develops the numerical definition of a small business.\27\
The SBA has established a size standard for electric utilities, stating
that 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.\28\ The RFA is not
implicated by this NOPR because the interpretation discussed herein is
being accepted. With no changes to the Reliability Standard as
approved, the proposal in this NOPR will not have a significant
economic impact on a substantial number of small entities.
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\26\ 5 U.S.C. 601-612.
\27\ 13 CFR 121.201.
\28\ Id. n.1.
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25. 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 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.\29\
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\29\ 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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26. Finally, as noted above, this NOPR accepts the interpretation
of the PRC-005-0 Reliability Standard, which was already approved in
Order No. 693, and, therefore, does not create an additional regulatory
impact on small entities.
VIII. Comment Procedures
27. 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 February 25, 2011. You may submit
comments, identified by docket number and in accordance with the
requirements posted on the Commission's Web site, https://www.ferc.gov.
Comments may be
[[Page 81157]]
submitted by any of the following methods:
Agency Web Site: Documents created electronically using
word processing software should be filed in native applications or
print-to-PDF format and not in a scanned format, at https://www.ferc.gov/docs-filing/efiling.asp.
Mail/Hand Delivery: Commenters unable to file comments
electronically must mail or hand deliver an original copy of their
comments to: Federal Energy Regulatory Commission, Secretary of the
Commission, 888 First Street, NE., Washington, DC 20426. These
requirements can be found on the Commission's Web site, see, e.g., the
``Quick Reference Guide for Paper Submissions,'' available at https://www.ferc.gov/docs-filing/efiling.asp, or via phone from FERC Online
Support at 202-502-6652 or toll-free at 1-866-208-3676.
28. 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.
IX. Document Availability
29. 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.
30. From FERC'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.
31. User assistance is available for eLibrary and the FERC'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.
List of Subjects in 18 CFR Part 40
Electric power; Electric utilities; Reporting and recordkeeping
requirements by direction of the Commission.
Kimberly D. Bose,
Secretary.
[FR Doc. 2010-32356 Filed 12-23-10; 8:45 am]
BILLING CODE 6717-01-P
