Generator Relay Loadability and Revised Transmission Relay Loadability Reliability Standards, 17077-17082 [2014-06591]
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SUPPLEMENTARY INFORMATION:
146 FERC ¶ 61,189
Before Commissioners: Cheryl A. LaFleur,
Acting Chairman; Philip D. Moeller, John
R. Norris, and Tony Clark.
(Issued March 20, 2014)
DEPARTMENT OF ENERGY
Federal Energy Regulatory
Commission
18 CFR Part 40
[Docket No. RM13–19–000, RM14–3–000]
Generator Relay Loadability and
Revised Transmission Relay
Loadability Reliability Standards
Federal Energy Regulatory
Commission.
ACTION: Notice of proposed rulemaking.
AGENCY:
Pursuant to section 215 of the
Federal Power Act, the Commission
proposes to approve a new Reliability
Standard, PRC–025–1 (Generator Relay
Loadability), submitted by the North
American Electric Reliability
Corporation (NERC), the Commissionapproved Electric Reliability
Organization. In addition, the
Commission proposes to approve
Reliability Standard PRC–023–3
(Transmission Relay Loadability), also
submitted by NERC, which revises a
currently-effective standard pertaining
to transmission relay loadability.
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SUMMARY:
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1. Pursuant to section 215 of the
Federal Power Act (FPA),1 the
Commission proposes to approve a new
Reliability Standard, PRC–025–1
(Generator Relay Loadability), submitted
by the North American Electric
Reliability Corporation (NERC). In
addition, the Commission proposes to
approve Reliability Standard PRC–023–
3 (Transmission Relay Loadability), also
submitted by NERC, which revises a
currently-effective standard pertaining
to transmission relay loadability.
2. NERC developed proposed
Reliability Standard PRC–025–1 in
response to certain Commission
directives issued in Order No. 733,2 in
which the Commission approved an
initial version of a Reliability Standard
governing transmission relay
1 16
U.S.C. 824o (2012).
Relay Loadability Reliability
Standard, Order No. 733, 130 FERC ¶ 61,221 (2010)
(Order No. 733); order on reh’g and clarification,
Order No. 733–A, 134 FERC ¶ 61,127; clarified,
Order No. 733–B, 136 FERC ¶ 61,185 (2011).
2 Transmission
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loadability. We believe that the
proposed new standard on generator
relay loadability, Reliability Standard
PRC–025–1, will serve to enhance
reliability by imposing mandatory
requirements governing generator relay
loadability, thereby reducing the
likelihood of premature or unnecessary
tripping of generators during system
disturbances. In addition, we believe
that the proposed revisions to PRC–023–
2 are appropriate in that they clarify the
applicability of the two standards
governing relay loadability (PRC–025–1
and PRC–023–3), and prevent potential
compliance overlap due to
inconsistencies. Finally, we propose to
approve the violation risk factors and
violation severity levels as proposed for
PRC–025–1, as well as the proposed
implementation plans for the two
standards.
I. Background
A. Regulatory Background
3. Section 215 of the FPA requires a
Commission-certified Electric
Reliability Organization (ERO) to
develop mandatory and enforceable
Reliability Standards, subject to
Commission review and approval.3
Once approved, the Reliability
Standards may be enforced by the ERO
subject to Commission oversight, or by
the Commission independently.4 In
2006, the Commission certified NERC as
the ERO pursuant to FPA section 215.5
B. Relay Protection Systems
4. Protective relays are devices that
detect and initiate the removal of faults
on an electric system.6 They are
designed to read electrical
measurements, such as current, voltage,
and frequency, and can be set to
recognize certain measurements as
indicating a fault. When a protective
relay detects a fault on an element of the
system under its protection, it sends a
signal to an interrupting device, such as
a circuit breaker, to disconnect the
element from the rest of the system.
Impedance relays, which are the most
common type of relays used to protect
transmission lines, continuously
measure voltage and current on the
protected transmission line and operate
when the measured magnitude and
3 16
U.S.C. 824o(c) and (d).
id. at 824o(e).
5 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 (D.C. Cir. 2009).
6 A ‘‘fault’’ is defined in the NERC Glossary of
Terms used in Reliability Standards as ‘‘[a]n event
occurring on an electric system such as a short
circuit, a broken wire, or an intermittent
connection.’’
4 See
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phase angle of the impedance (voltage/
current) falls within the settings of the
relay.
C. Development of Reliability Standards
on Relay Loadability
5. Following the August 2003
blackout that affected parts of the
Midwest, the Northeast, and Ontario,
Canada, NERC and the U.S.-Canada
Power System Outage Task Force (Task
Force) concluded that a substantial
number of transmission lines
disconnected during the blackout when
load-responsive phase-protection
backup distance and phase relays
operated unnecessarily, i.e. under nonfault conditions. Although these relays
operated according to their settings, the
Task Force determined that the
operation of these relays for non-fault
conditions contributed to cascading
outages at the start of the blackout and
accelerated the geographic spread of the
cascade.7 Seeking to prevent or
minimize the scope of future blackouts,
both NERC and the Task Force
developed recommendations to ensure
that these types of protective relays do
not contribute to future blackouts.8
6. NERC developed Reliability
Standard PRC–023–1 (Transmission
Relay Loadability) to address these
recommendations, and submitted it for
Commission approval under FPA
section 215. On March 10, 2010, in
Order No. 733, the Commission
approved Reliability Standard PRC–
023–1.9 In addition, the Commission
directed NERC to (1) make certain
modifications to the Reliability
Standard, (2) submit a timeline for the
development of a new Reliability
Standard to address generator protective
relay loadability, and (3) develop a new
Reliability Standard addressing the
issue of protective relay operation
during stable power swings.
D. NERC Petition and Proposed
Standards PRC–025–1 and PRC–023–3
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1. Proposed Reliability Standard PRC–
025–1
7. On September 30, 2013, NERC
submitted a petition seeking approval of
Reliability Standard PRC–025–1
(Generator Relay Loadability).10 NERC
7 U.S.-Canada Power System Outage Task Force,
Final Report on the August 14, 2003 Blackout in the
United States and Canada: Causes and
Recommendations, at 80 (2004) (Final Blackout
Report).
8 See Final Blackout Report, Recommendation
21A; North American Electric Reliability Council,
August 14, 2003 Blackout: NERC Actions to Prevent
and Mitigate the Impacts of Future Cascading
Blackouts, at 13 and Recommendation 8a (2004).
9 Order No. 733, 130 FERC ¶ 61,221.
10 Proposed Reliability Standards PRC–025–1 and
PRC–023–3 are not attached to this Notice of
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states in its petition that the proposed
standard ‘‘is designed to prevent
generator tripping when conditions do
not pose a direct risk to the generator
and associated equipment and will
reduce the risk of unnecessary generator
tripping—events that increase the
severity of the disturbance.’’ 11 NERC
further states that the proposed standard
is intended to address the second part
of the Commission’s Order No. 733
directives, requiring development of a
standard governing generator protective
relay loadability.12 NERC notes that it
addressed the first Order No. 733
directive, requiring modification of
PRC–023–1, through its revised
standard PRC–023–2 (currently in
effect).13 NERC indicates that it is
addressing the third portion of the
Order No. 733 directives, relay
operation during stable power swings,
as part of a separate phase of the
project.14
8. The stated purpose of PRC–025–1
is ‘‘[t]o set load-responsive protective
relays associated with generation
Facilities at a level to prevent
unnecessary tripping of generators
during a system disturbance for
conditions that do not pose a risk of
damage to the associated equipment.’’ 15
Proposed Reliability Standard PRC–
025–1 would apply to any generator
owner, transmission owner, or
distribution provider ‘‘that applies loadresponsive protective relays at the
Proposed Rulemaking. The complete texts of these
proposed Reliability Standards are available on the
Commission’s eLibrary document retrieval system
in Docket Nos. RM13–19–000 and RM14–3–000,
and are posted on NERC’s Web site, available at:
https://www.nerc.com.
11 Petition of the North American Electric
Reliability Corp. for Approval of Proposed
Reliability Standard PRC–025–1 (Generator Relay
Loadability), Docket No. RM13–19–000, at 4 (Sept.
30, 2013) (Sept. 30 Petition or Petition). NERC
requested that the Commission delay its
consideration of PRC–025–1 until NERC could
finalize and submit for approval certain related
revisions to its transmission relay loadability
standard, PRC–023–2. Those revisions were
submitted on Dec. 17, 2013, as discussed further
below.
12 See id. at 8.
13 Id. (citing Transmission Relay Loadability
Reliability Standard, Order No. 759, 138 FERC
¶ 61,197 (2012)).
14 Id. NERC indicated that this third phase of its
response to Order No. 733 is tentatively scheduled
to be completed in December 2014. Id.
15 Sept. 30 Petition, Ex. A at 3. While NERC has
not proposed a definition for the term ‘‘loadresponsive protective relays,’’ Attachment A of
existing Reliability Standard PRC–023–2, which
also uses the term ‘‘load-responsive protective
relays’’ states that the standard includes ‘‘any
protective functions which could trip with or
without time delay, on load current.’’ NERC
Reliability Standard PRC–023–2, available at https://
www.nerc.com/_layouts/PrintStandard.aspx?
standardnumber=PRC-023-2&title=Transmission
%20Relay%20Loadability&jurisdiction=United%20
States.
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terminals of the Elements listed in 3.2,
Facilities.’’ 16 ‘‘Facilities,’’ in turn, are
defined in section 3.2 of the proposed
standard as:
Elements associated with Bulk Electric
System (BES) generating units and generating
plants, including those * * * identified as
Blackstart Resources in the Transmission
Operator’s system restoration plan:
3.2.1 Generating unit(s).
3.2.2 Generator step-up (i.e., GSU)
transformer(s).
3.2.3 Unit auxiliary transformer(s) (UAT)
that supply overall auxiliary power necessary
to keep generating unit(s) online.
3.2.4 Elements that connect the GSU
transformer(s) to the Transmission system
that are used exclusively to export energy
directly from a BES generating unit or
generating plant. Elements may also supply
generating plant loads.
3.2.5 Elements utilized in the aggregation
of dispersed power producing resources.
9. Proposed Reliability Standard PRC–
025–1 has only one requirement, that
each applicable entity ‘‘shall apply
settings that are in accordance with
PRC–025–1—Attachment 1: Relay
Settings, on each load-responsive
protective relay while maintaining
reliable fault protection.’’ 17 The relay
setting options are defined in Table 1 of
Attachment 1, and include the specific
bus voltage and other inputs to be used
depending on the application (e.g.,
synchronous or asynchronous generator,
generator step-up transformer, or unit
auxiliary transformer) and the type of
relay. For most applications of each type
of relay, the proposed standard would
give applicable entities the option of
adopting relay settings that meet the
stated criteria as determined through (1)
a relatively simple calculation, (2) a
more complex calculation, or (3) a
described simulation. As stated in the
standard, the criteria in Attachment 1
‘‘represent short-duration conditions
during which generation Facilities are
capable of providing system reactive
resources, and for which generation
Facilities have been historically
recorded to disconnect, causing events
to become more severe.’’ 18
10. NERC further explains in its
petition that the specific relay setting
criteria are based on system conditions
observed during the August 2003
Blackout.19 The criteria for relays
applied on synchronous generators, and
16 Sept. 30 Petition, Ex. A at 3. NERC further
explains that the standard should ‘‘include all loadresponsive protective relays that are affected by
increased generator output in response to system
disturbances.’’ Sept. 30 Petition, Ex. A at 25
(Guidelines and Technical Basis) (hereinafter
Guidelines).
17 Id. 18, and Ex. A at 4.
18 Id., Ex. A at 4 (Rationale for R1).
19 Id. 10.
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their associated generator step-up
transformers (GSUs) and connecting
elements, are based on the response of
the synchronous generator to depressed
transmission system voltage (with
allowances for reactive power losses
across the GSU transformer). The
criteria for relays applied on
asynchronous generators and their
associated GSU transformers and
connecting elements are based on the
more limited response of an
asynchronous generator to the
depressed voltage (with no allowance
for loss of reactive power across the
GSU transformer because such losses
are not significant).20 The criteria for
relays applied on unit auxiliary
transformers (UATs) that supply station
service are based on the increased
current requirements of station service
load during a depressed voltage
condition.
11. In its justification for approval of
the proposed standard, NERC explains
that ‘‘[a]nalyses of power system
disturbances over the past twenty-five
years have found generators to have
tripped unnecessarily—an occurrence
that has the potential to extend the
scope and duration of a disturbance.’’ 21
According to NERC, during the recovery
phase of a disturbance, system voltage
may be widely depressed and may
fluctuate. To support the system during
this phase of a disturbance, NERC
explains that the proposed standard
‘‘establishes criteria for setting loadresponsive relays such that individual
generators may provide Reactive Power
within their dynamic capability during
transient time periods,’’ thereby
avoiding unnecessary tripping of
generators and ensuring that ‘‘dynamic
capability is available to support system
recovery.’’ 22
12. NERC proposes Requirement R1 of
PRC–025–1 be assigned a ‘‘High’’
violation risk factor, and a ‘‘Severe’’
violation severity level for failure to
apply settings as required. NERC’s
Implementation Plan proposes that
applicable entities must be in
compliance with the new standard: (1)
60 months after regulatory approval
where compliance can be achieved
without replacement or removal of
relays; or (2) 84 months after regulatory
approval if replacement or removal of
relays is necessary.23
20 Id.
11.
9.
22 Id. 9–10.
23 See Sept. 30 Petition, Ex. B (Implementation
Plan).
21 Id.
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2. Proposed Reliability Standard PRC–
023–3
13. On December 17, 2013, NERC
submitted proposed clarifying changes
to Reliability Standard PRC–023–2, as
reflected in PRC–023–3, as
‘‘Supplemental Information’’ to its Sept.
30 Petition.24 NERC explains in its
Supplemental Filing that these changes
were identified during development of
PRC–025–1 as ‘‘necessary to establish a
bright-line distinction between the
applicability of load-responsive
protective relays in the transmission
and generator relay loadability
Reliability Standards.’’ 25 NERC
explains that stakeholders became
concerned about potential compliance
overlap between the new generator relay
loadability standard, PRC–025–1, and
existing standard PRC–023–2, which
currently applies to certain elements
that connect GSU transformers to the
transmission system.
14. In order to clarify that proposed
standard PRC–025–1 is intended to
cover ‘‘all load responsive protective
relays applied at the terminals of
generators and GSU transformers,’’ 26
NERC proposes to remove Criteria 6 of
Requirement R1 from PRC–023–2 in its
entirety. That sub-requirement currently
requires applicable entities to:
Set transmission line relays applied on
transmission lines connected to generation
stations remote to load so they do not operate
at or below 230% of the aggregated
generation nameplate capability.27
NERC also proposes to change the
applicability section of PRC–023–2 to
exclude ‘‘Elements that connect the
GSU transformer(s) to the Transmission
system that are used exclusively to
export energy directly from a BES
generating unit or generating plant.’’ 28
15. NERC explains in its
Supplemental Filing that the two relay
loadability standards, as revised, would
be based on the location where the
relays are applied and not on the
intended protection functions, which it
believes is advantageous because it:
(i) Facilitates the establishment of
generator relay loadability requirements
based on the physics associated with
increased generator output during stressed
system conditions.
24 Supplemental Information to the Petition of the
North American Electric Reliability Corp. for
Approval of Proposed Reliability Standard PRC–
025–1 (Generator Relay Loadability), Docket No.
RM14–3–000 (Dec. 17, 2013) (Supplemental Filing).
25 Id. 1–2.
26 See id. at 4.
27 See Supplemental Filing, Ex. A, Redline of
PRC–023–2 at 6.
28 See Supplemental Filing at 4, and Ex. A,
Proposed Reliability Standard PRC–023–3, Sections
4.2.1.1 and 4.2.2.1.
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(ii) Avoids ambiguity as to whether the
intended protection function is for the
generating unit or the Transmission System.
. . .
(iii) Provides clear division of applicability
between the Generator and Transmission
Relay Loadability Reliability Standards based
on the physical location, independent of the
entity that owns the relay.29
16. Under NERC’s proposed
implementation plan, Reliability
Standard PRC–023–3 will become
effective on the first day of the first
calendar quarter beyond the date that
the standard is approved by the
applicable regulatory authority.
Reliability Standard PRC–023–2 would
be retired immediately prior to the
effective date of PRC–023–3, except that
Criterion 6 of Requirement R1 would
remain in effect until the effective date
of PRC–025–1. Any implementation
dates or milestones established under
PRC–023–2 would remain in place.30
II. Discussion
17. Pursuant to section 215(d)(2) of
the FPA, the Commission proposes to
approve Reliability Standard PRC–025–
1, including its associated violation risk
factors and violation severity levels,
Reliability Standard PRC–023–3, and
NERC’s proposed implementation plans
for the new and revised standards. PRC–
025–1 appears to adequately address the
Commission directive in Order No. 733
that NERC develop a separate Reliability
Standard that addresses generator stepup and auxiliary transformer
loadability, and do so ‘‘in a way that is
coordinated with the Requirements and
expected outcomes of PRC–023–1.’’ 31 In
addition, we believe that PRC–025–1
will enhance reliability by imposing
mandatory requirements governing
generator relay loadability settings,
thereby reducing the likelihood of
premature or unnecessary tripping of
generators during system disturbances.
18. We also propose to approve the
clarifying modifications reflected in
Reliability Standard PRC–023–3,
29 Supplemental
Filing at 5.
part of its Supplemental Filing, NERC also
submitted a report on UAT relay loadability to
address concerns raised by minority commenters
during the development of PRC–025–1 as to
whether UAT relays on the low-voltage side should
be included. See id. at 6 and Ex. E. The report
concludes that there is no adverse reliability impact
from Reliability Standard PRC–025–1 as proposed,
and finds that ‘‘based on a comparison of the
simulation models and the actual event data, the
simulation results are conservative. The model
results, coupled with the NERC Generating
Availability Data System (GADS) analysis, are
indicative that a reliability gap does not result from
excluding relays on the low-voltage side of the UAT
from PRC–025–1.’’ Supplemental Filing at 6, Ex. E
at 6.
31 See Order No. 733, 130 FERC ¶ 61,221 at PP
104–106.
30 As
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because we agree they serve to clarify
the applicability of the two standards
governing relay loadability and prevent
potential compliance overlap due to
inconsistencies.
III. Information Collection Statement
19. The collection of information
contained in this Notice of Proposed
Rulemaking is subject to review by the
Office of Management and Budget
(OMB) under section 3507(d) of the
Paperwork Reduction Act of 1995.32
OMB’s regulations require approval of
certain information collection
requirements imposed by agency
rules.33 Upon approval of a collection(s)
of information, OMB will assign an
OMB control number and an expiration
date. Respondents subject to the filing
requirements of a rule will not be
penalized for failing to respond to these
collections of information unless the
collections of information display a
valid OMB control number.
20. We solicit comments on the need
for this information, whether the
information will have practical utility,
the accuracy of the burden estimates,
ways to enhance the quality, utility, and
clarity of the information to be collected
or retained, and any suggested methods
for minimizing respondents’ burden,
including the use of automated
information techniques. Specifically,
the Commission asks that any revised
burden or cost estimates submitted by
commenters be supported by sufficient
detail to understand how the estimates
are generated.
21. The Commission proposes to
approve Reliability Standard PRC–025–
1 and to approve revisions to PRC–023–
2. Proposed Reliability Standard PRC–
025–1 will impose new requirements to
set certain generator protective relays in
accordance with prescribed criteria, and
will apply to transmission owners,
distribution providers, and generator
owners with applicable relays. Affected
entities will have to ensure that their
relays are set in accordance with these
criteria and maintain records or other
evidence demonstrating their
compliance with the standard’s
requirements. The revisions to PRC–
023–2 will result in a change in how
relay settings are calculated for certain
kinds of relays, but will not result in
reporting or recordkeeping requirements
or burden.
Public Reporting Burden: Proposed
Reliability Standard PRC–025–1 does
not require responsible entities to file
information with the Commission.
However, the Reliability Standard
requires applicable entities to develop
and maintain certain information,
subject to audit by a Regional Entity. In
particular, transmission owners,
generator owners and distribution
providers must ‘‘have evidence’’ to
show that each of its load-responsive
protective relays are set according to
one of the options in Attachment 1 to
Reliability Standard PRC–025–1. Our
estimate below regarding the number of
respondents is based on the NERC
compliance registry as of January 31,
2014. According to the NERC
compliance registry, NERC has
registered 539 distribution providers,
903 generator owners and 344
transmission owners. However, under
NERC’s compliance registration
program, entities may be registered for
multiple functions, so these numbers
incorporate some double counting. The
number of unique entities responding
will be approximately 1,019 34 entities
registered as a transmission owner, a
distribution provider, or a generator
owner that is also a transmission owner
and/or a distribution owner. The
Commission estimates the annual
reporting burden and cost as follows:
FERC–725Q, 35 AS MODIFIED IN NOPR IN RM13–19 AND RM14–3
Number and
type of
respondents 36
(1)
(One-time) Review & documentation of relay settings to ensure
compliance.
(On-going) Record Retention (of
compliance records for R1 and
M1, for 3 years or until mitigation complete).
Annual
number of
responses per
respondent
(2)
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(1) × (2) × (3)
Cost per
respondent 37
1
1,019
20 hrs. &
$59.62/hour.
20,380 hours &
$1,215,056.
$1192
1,019 GO/DP/
TO.
1
1,019
2 hrs. & $28.95/
hour.
2,038 hours &
$59,000.
$57.90
32 44
U.S.C. 3507(d) (2012).
CFR 1320.11 (2013).
34 This estimate assumes all of the unique entities
apply load-responsive protective relays.
35 Normally these reporting and recordkeeping
requirements would be included under FERC–725G
(OMB Control No. 1902–0252). However, only one
request per OMB Control Number can be pending
OMB review at a time. Because a pending and
33 5
16:58 Mar 26, 2014
Total annual
burden hours
and total
annual cost
1,019 GO/DP/
TO.
Title: Mandatory Reliability Standards
for the Bulk-Power System.
Action: Proposed FERC–725Q.
OMB Control No: To Be Determined.
Respondents: Businesses or other forprofit institutions; not-for-profit
institutions.
Frequency of Responses: One-time
and ongoing.
Necessity of the Information: The
Generator Relay Loadability Reliability
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burden and
cost per
response
(3)
Total number
of responses
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Standard, if adopted, would implement
the Congressional mandate of the
Energy Policy Act of 2005 to develop
mandatory and enforceable Reliability
Standards to better ensure the reliability
of the nation’s Bulk-Power System.
Specifically, the purpose of the
proposed Reliability Standard is to set
load-responsive protective relays
associated with generation facilities at a
level to prevent unnecessary tripping of
generators during a system disturbance
for conditions that do not pose a risk of
damage to the associated equipment.
The proposed Reliability Standard
requires entities to maintain records
subject to review by the Commission
and NERC to ensure compliance with
the Reliability Standard.
unrelated rulemaking also affects other aspects of
FERC–725G, the reporting and record retention
requirements for this NOPR in RM13–19 and
RM14–3 will be submitted to OMB for review under
FERC–725Q.
36 GO = Generator Owner, DP = Distribution
Provider, TO = Transmission Owner, each of whom
applies load-responsive protective relays at the
terminals of the Elements listed (in the Standard)
3.2, Facilities.
37 The estimated hourly costs (salary plus
benefits) are based on Bureau of Labor and Statistics
(BLS) information (available at https://bls.gov/oes/
current/naics3_221000.htm#17–0000) for an
electrical engineer ($59.62/hour for review and
documentation), and for a file clerk ($28.95/hour for
record retention).
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Internal Review: The Commission has
reviewed the requirements pertaining to
the proposed Reliability Standard for
the Bulk-Power System and determined
that the proposed requirements are
necessary to meet the statutory
provisions of the Energy Policy Act of
2005. These requirements conform to
the Commission’s plan for efficient
information collection, communication
and management within the energy
industry. The Commission has assured
itself, by means of internal review, that
there is specific, objective support for
the burden estimates associated with the
information requirements.
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,
email: DataClearance@ferc.gov, phone:
(202) 502–8663, fax: (202) 273–0873].
23. Comments concerning the
information collections proposed in this
NOPR and the associated burden
estimates should be sent to the
Commission in these dockets and may
also be sent to the Office of Management
and Budget, Office of Information and
Regulatory Affairs [Attention: Desk
Officer for the Federal Energy
Regulatory Commission]. For security
reasons, comments should be sent by
email to OMB at the following email
address: oira_submission@omb.eop.gov.
Please reference FERC–725Q and the
docket numbers of this Notice of
Proposed Rulemaking (Docket Nos.
RM13–19–000 and RM14–3–000) in
your submission.
IV. Regulatory Flexibility Act
Certification
24. The Regulatory Flexibility Act of
1980 (RFA) 38 generally requires a
description and analysis of proposed
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’s) Office of Size
Standards develops the numerical
definition of a small business.39 The
SBA recently revised its size standard
for electric utilities (effective January
22, 2014) to a standard based on the
number of employees, including
affiliates (from a standard based on
38 5
U.S.C. 601–612 (2012).
CFR 121.101 (2013).
39 13
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megawatt hours).40 Under SBA’s new
size standards, generator owners,
distribution providers, and transmission
owners likely come under one of the
following categories and associated size
thresholds: 41
• Hydroelectric power generation, at
500 employees.
• Fossil fuel electric power
generation, at 750 employees.
• Nuclear power generation, at 750
employees.
• Other electric power generation
(e.g. solar, wind, geothermal, and
others), at 250 employees.
• Electric bulk power transmission
and control, at 500 employees.
• Electric power distribution, at 1,000
employees.
25. Based on U.S. economic census
data,42 the approximate percentages of
small firms in these categories varies
from 24 percent to 94 percent. However,
currently FERC does not have
information on how the economic
census data compares with entities
registered with NERC and is unable to
estimate the number of small GOs, DPs,
and TOs using the new SBA
definitions.43 Regardless, FERC
recognizes that the rule will likely
impact small GOs, DPs, and TOs and
estimates the economic impact on each
entity below.
26. Proposed Reliability Standard
PRC–025–1 will serve to enhance
reliability by imposing mandatory
requirements governing generator relay
loadability, thereby reducing the
likelihood of premature or unnecessary
tripping of generators during system
disturbances. The Commission
estimates that each of the small entities
to whom the proposed Reliability
Standard PRC–025–1 applies will incur
one-time compliance costs of $4,480
(i.e., the cost of re-setting any relays
found to be out of compliance),44 plus
paperwork and record retention costs of
$1,192 (one-time implementation) and
40 SBA Final Rule on ‘‘Small Business Size
Standards: Utilities,’’ 78 FR 77343 (12/23/2013).
41 13 CFR 121.201, Sector 22, Utilities.
42 Data and further information are available from
SBA available at https://www.sba.gov/advocacy/
849/12162.
43 Using the previous SBA definition, 230 of the
1,019 entities affected by the proposed PRC–025–
1 would have qualified as small entities.
44 These are non-paperwork related costs, which
are not reflected in the burden described in the
Information Collection Section above, and instead
reflect the burden of re-setting relays in order to
comply with the new requirements of PRC–025–1.
Specifically, this figure reflects an estimated time
of 8 hours per relay, assuming an average of 8
digital relays which will need to be re-set per small
entity, at a cost of $70 per hour (the average of the
salary plus benefits for a manager and an engineer,
from Bureau of Labor and Statistics available at
https://bls.gov/oes/current/naics3_221000.htm and
https://www.bls.gov/news.release/ecec.nr0.htm).
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$57.90 (annual ongoing).45 Per entity,
the total one-time implementation costs
are estimated to be $5,672 (including
paperwork and non-paperwork costs)
and the annual ongoing costs are
estimated to be $57.90.
27. The Commission does not
consider the estimated costs per small
entity to have a significant economic
impact on a substantial number of small
entities. Accordingly, the Commission
certifies that this NOPR will not have a
significant economic impact on a
substantial number of small entities.
V. 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.46 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.47 The
actions proposed herein fall within this
categorical exclusion in the
Commission’s regulations.
VI. Comment Procedures
29. The Commission invites interested
persons to submit comments on the
matters and issues proposed in this
notice to be adopted, including any
related matters or alternative proposals
that commenters may wish to discuss.
Comments are due April 28, 2014.
Comments must refer to Docket Nos.
RM13–19–000 and RM14–3–000, and
must include the commenter’s name,
the organization they represent, if
applicable, and address.
30. The Commission encourages
comments to be filed electronically via
the eFiling link on the Commission’s
Web site at https://www.ferc.gov. The
Commission accepts most standard
word processing formats. Documents
created electronically using word
processing software should be filed in
native applications or print-to-PDF
format and not in a scanned format.
Commenters filing electronically do not
need to make a paper filing.
45 The one-time paperwork-related
implementation cost estimate is based on a burden
of 20 hours at $59.62/hour, and the annual recordkeeping cost estimate is based on a burden of 2
hours at $28.95/hour. See supra at 21 and P 1 note/
39.
46 Regulations Implementing the National
Environmental Policy Act of 1969, Order No. 486,
FERC Stats. & Regs. ¶ 30,783 (1987).
47 18 CFR 380.4(a)(2)(ii).
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31. Commenters that are not able to
file comments electronically must send
an original of their comments to:
Federal Energy Regulatory Commission,
Secretary of the Commission, 888 First
Street NE., Washington, DC 20426.
32. All comments will be placed in
the Commission’s public files and may
be viewed, printed, or downloaded
remotely as described in the Document
Availability section below. Commenters
on this proposal are not required to
serve copies of their comments on other
commenters.
VII. Document Availability
33. In addition to publishing the full
text of this document in the Federal
Register, the Commission provides all
interested persons an opportunity to
view and/or print the contents of this
document via the Internet through the
Commission’s Home Page (https://
www.ferc.gov) and in the Commission’s
Public Reference Room during normal
business hours (8:30 a.m. to 5:00 p.m.
Eastern time) at 888 First Street NE.,
Room 2A, Washington, DC 20426.
34. 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.
35. User assistance is available for
eLibrary and the Commission’s Web site
during normal business hours from the
Commission’s Online Support at 202–
502–6652 (toll free at 1–866–208–3676)
or email at ferconlinesupport@ferc.gov,
or the Public Reference Room at (202)
502–8371, TTY (202) 502–8659. Email
the Public Reference Room at
public.referenceroom@ferc.gov.
By direction of the Commission.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2014–06591 Filed 3–26–14; 8:45 am]
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BILLING CODE 6717–01–P
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
public hearing scheduled for April 11,
2014, is cancelled.
26 CFR Part 1
Martin V. Franks,
Chief, Publications and Regulations Branch,
Legal Processing Division, Associate Chief
Counsel, (Procedure and Administration).
[REG–120282–10]
[FR Doc. 2014–06712 Filed 3–26–14; 8:45 am]
BILLING CODE 4830–01–P
RIN 1545–BJ56
Dividend Equivalents From Sources
Within the United States; Hearing
Cancellation
DEPARTMENT OF HOMELAND
SECURITY
Coast Guard
Internal Revenue Service (IRS),
Treasury.
AGENCY:
33 CFR Part 100
Cancellation of notice of public
hearing on proposed rulemaking.
[Docket Number USCG–2014–0138]
This document cancels a
public hearing on proposed regulations
that provides guidance to nonresident
alien individuals and foreign
corporations that hold certain financial
products providing for payments that
are contingent upon or determined by
reference to U.S. source dividend
payments and to withholding agents.
Special Local Regulations for Marine
Events, Nanticoke River; Bivalve, MD
ACTION:
SUMMARY:
The public hearing originally
scheduled for April 11, 2014 at 10 a.m.
is cancelled.
DATES:
FOR FURTHER INFORMATION CONTACT:
Oluwafunmilayo Taylor of the
Publications and Regulations Branch,
Legal Processing Division, Associate
Chief Counsel (Procedure and
Administration) at (202) 317–6901 (not
a toll-free number).
A
withdrawal notice of proposed
rulemaking, notice of proposed
rulemaking and notice of public hearing
that appeared in the Federal Register on
Thursday, December 5, 2013 (78 FR
73128) announced that a public hearing
was scheduled for April 11, 2014, at 10
a.m. in the IRS Auditorium, Internal
Revenue Building, 1111 Constitution
Avenue NW., Washington, DC. The
subject of the public hearing is under
section 871(m) of the Internal Revenue
Code.
The public comment period for these
regulations expired on March 5, 2014.
The withdrawal notice of proposed
rulemaking, notice of proposed
rulemaking and notice of public hearing
instructed those interested in testifying
at the public hearing to submit a request
to speak and an outline of the topics to
be addressed by March 5, 2014. As of
Wednesday, March 19, 2014, no one has
requested to speak. Therefore, the
SUPPLEMENTARY INFORMATION:
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Coast Guard, DHS.
Notice of Proposed Rulemaking.
AGENCY:
ACTION:
The Coast Guard proposes to
establish special local regulations
during the ‘‘Coastal Aquatics Swim
Team Open Water Summer Shore
Swim’’, a marine event to be held on the
waters of the Nanticoke River at Bivalve,
MD on June 29, 2014. These special
local regulations are necessary to
provide for the safety of life on
navigable waters during the event. This
action is intended to temporarily restrict
vessel traffic in a portion of the
Nanticoke River during the event.
DATES: Comments and related material
must be received by the Coast Guard on
or before April 28, 2014. The Coast
Guard anticipates that this proposed
rule will be effective on June 29, 2014.
ADDRESSES: You may submit comments
identified by docket number using any
one of the following methods:
(1) Federal eRulemaking Portal:
https://www.regulations.gov.
(2) Fax: 202–493–2251.
(3) Mail or Delivery: Docket
Management Facility (M–30), U.S.
Department of Transportation, West
Building Ground Floor, Room W12–140,
1200 New Jersey Avenue SE.,
Washington, DC 20590–0001. Deliveries
accepted between 9 a.m. and 5 p.m.,
Monday through Friday, except federal
holidays. The telephone number is 202–
366–9329. See the ‘‘Public Participation
and Request for Comments’’ portion of
the SUPPLEMENTARY INFORMATION section
below for further instructions on
submitting comments. To avoid
duplication, please use only one of
these three methods.
FOR FURTHER INFORMATION CONTACT: If
you have questions on this rule, call or
SUMMARY:
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]]>Agencies
[Federal Register Volume 79, Number 59 (Thursday, March 27, 2014)]
[Proposed Rules]
[Pages 17077-17082]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-06591]
=======================================================================
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DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
18 CFR Part 40
[Docket No. RM13-19-000, RM14-3-000]
Generator Relay Loadability and Revised Transmission Relay
Loadability Reliability Standards
AGENCY: Federal Energy Regulatory Commission.
ACTION: Notice of proposed rulemaking.
-----------------------------------------------------------------------
SUMMARY: Pursuant to section 215 of the Federal Power Act, the
Commission proposes to approve a new Reliability Standard, PRC-025-1
(Generator Relay Loadability), submitted by the North American Electric
Reliability Corporation (NERC), the Commission-approved Electric
Reliability Organization. In addition, the Commission proposes to
approve Reliability Standard PRC-023-3 (Transmission Relay
Loadability), also submitted by NERC, which revises a currently-
effective standard pertaining to transmission relay loadability.
DATES: Comments are due April 28, 2014.
ADDRESSES: Comments, identified by docket number, may be filed in the
following ways:
Electronic Filing through https://www.ferc.gov. Documents
created electronically using word processing software should be filed
in native applications or print-to-PDF format and not in a scanned
format.
Mail/Hand Delivery: Those unable to file electronically
may mail or hand-deliver comments to: Federal Energy Regulatory
Commission, Secretary of the Commission, 888 First Street NE.,
Washington, DC 20426.
Instructions: For detailed instructions on submitting comments and
additional information on the rulemaking process, see the Comment
Procedures Section of this document.
FOR FURTHER INFORMATION CONTACT:
Syed Ahmad (Technical Information), Office of Electric Reliability,
Federal Energy Regulatory Commission, 888 First Street NE., Washington,
DC 20426, (202) 502-8718, syed.ahmad@ferc.gov.
Julie Greenisen (Legal Information), Office of the General Counsel,
Federal Energy Regulatory Commission, 888 First Street NE., Washington,
DC 20426, (202) 502-6362, julie.greenisen@ferc.gov.
SUPPLEMENTARY INFORMATION:
146 FERC ] 61,189
Before Commissioners: Cheryl A. LaFleur, Acting Chairman; Philip D.
Moeller, John R. Norris, and Tony Clark.
(Issued March 20, 2014)
1. Pursuant to section 215 of the Federal Power Act (FPA),\1\ the
Commission proposes to approve a new Reliability Standard, PRC-025-1
(Generator Relay Loadability), submitted by the North American Electric
Reliability Corporation (NERC). In addition, the Commission proposes to
approve Reliability Standard PRC-023-3 (Transmission Relay
Loadability), also submitted by NERC, which revises a currently-
effective standard pertaining to transmission relay loadability.
---------------------------------------------------------------------------
\1\ 16 U.S.C. 824o (2012).
---------------------------------------------------------------------------
2. NERC developed proposed Reliability Standard PRC-025-1 in
response to certain Commission directives issued in Order No. 733,\2\
in which the Commission approved an initial version of a Reliability
Standard governing transmission relay loadability. We believe that the
proposed new standard on generator relay loadability, Reliability
Standard PRC-025-1, will serve to enhance reliability by imposing
mandatory requirements governing generator relay loadability, thereby
reducing the likelihood of premature or unnecessary tripping of
generators during system disturbances. In addition, we believe that the
proposed revisions to PRC-023-2 are appropriate in that they clarify
the applicability of the two standards governing relay loadability
(PRC-025-1 and PRC-023-3), and prevent potential compliance overlap due
to inconsistencies. Finally, we propose to approve the violation risk
factors and violation severity levels as proposed for PRC-025-1, as
well as the proposed implementation plans for the two standards.
---------------------------------------------------------------------------
\2\ Transmission Relay Loadability Reliability Standard, Order
No. 733, 130 FERC ] 61,221 (2010) (Order No. 733); order on reh'g
and clarification, Order No. 733-A, 134 FERC ] 61,127; clarified,
Order No. 733-B, 136 FERC ] 61,185 (2011).
---------------------------------------------------------------------------
I. Background
A. Regulatory Background
3. Section 215 of the FPA requires a Commission-certified Electric
Reliability Organization (ERO) to develop mandatory and enforceable
Reliability Standards, subject to Commission review and approval.\3\
Once approved, the Reliability Standards may be enforced by the ERO
subject to Commission oversight, or by the Commission independently.\4\
In 2006, the Commission certified NERC as the ERO pursuant to FPA
section 215.\5\
---------------------------------------------------------------------------
\3\ 16 U.S.C. 824o(c) and (d).
\4\ See id. at 824o(e).
\5\ 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 (D.C. Cir. 2009).
---------------------------------------------------------------------------
B. Relay Protection Systems
4. Protective relays are devices that detect and initiate the
removal of faults on an electric system.\6\ They are designed to read
electrical measurements, such as current, voltage, and frequency, and
can be set to recognize certain measurements as indicating a fault.
When a protective relay detects a fault on an element of the system
under its protection, it sends a signal to an interrupting device, such
as a circuit breaker, to disconnect the element from the rest of the
system. Impedance relays, which are the most common type of relays used
to protect transmission lines, continuously measure voltage and current
on the protected transmission line and operate when the measured
magnitude and
[[Page 17078]]
phase angle of the impedance (voltage/current) falls within the
settings of the relay.
---------------------------------------------------------------------------
\6\ A ``fault'' is defined in the NERC Glossary of Terms used in
Reliability Standards as ``[a]n event occurring on an electric
system such as a short circuit, a broken wire, or an intermittent
connection.''
---------------------------------------------------------------------------
C. Development of Reliability Standards on Relay Loadability
5. Following the August 2003 blackout that affected parts of the
Midwest, the Northeast, and Ontario, Canada, NERC and the U.S.-Canada
Power System Outage Task Force (Task Force) concluded that a
substantial number of transmission lines disconnected during the
blackout when load-responsive phase-protection backup distance and
phase relays operated unnecessarily, i.e. under non-fault conditions.
Although these relays operated according to their settings, the Task
Force determined that the operation of these relays for non-fault
conditions contributed to cascading outages at the start of the
blackout and accelerated the geographic spread of the cascade.\7\
Seeking to prevent or minimize the scope of future blackouts, both NERC
and the Task Force developed recommendations to ensure that these types
of protective relays do not contribute to future blackouts.\8\
---------------------------------------------------------------------------
\7\ U.S.-Canada Power System Outage Task Force, Final Report on
the August 14, 2003 Blackout in the United States and Canada: Causes
and Recommendations, at 80 (2004) (Final Blackout Report).
\8\ See Final Blackout Report, Recommendation 21A; North
American Electric Reliability Council, August 14, 2003 Blackout:
NERC Actions to Prevent and Mitigate the Impacts of Future Cascading
Blackouts, at 13 and Recommendation 8a (2004).
---------------------------------------------------------------------------
6. NERC developed Reliability Standard PRC-023-1 (Transmission
Relay Loadability) to address these recommendations, and submitted it
for Commission approval under FPA section 215. On March 10, 2010, in
Order No. 733, the Commission approved Reliability Standard PRC-023-
1.\9\ In addition, the Commission directed NERC to (1) make certain
modifications to the Reliability Standard, (2) submit a timeline for
the development of a new Reliability Standard to address generator
protective relay loadability, and (3) develop a new Reliability
Standard addressing the issue of protective relay operation during
stable power swings.
---------------------------------------------------------------------------
\9\ Order No. 733, 130 FERC ] 61,221.
---------------------------------------------------------------------------
D. NERC Petition and Proposed Standards PRC-025-1 and PRC-023-3
1. Proposed Reliability Standard PRC-025-1
7. On September 30, 2013, NERC submitted a petition seeking
approval of Reliability Standard PRC-025-1 (Generator Relay
Loadability).\10\ NERC states in its petition that the proposed
standard ``is designed to prevent generator tripping when conditions do
not pose a direct risk to the generator and associated equipment and
will reduce the risk of unnecessary generator tripping--events that
increase the severity of the disturbance.'' \11\ NERC further states
that the proposed standard is intended to address the second part of
the Commission's Order No. 733 directives, requiring development of a
standard governing generator protective relay loadability.\12\ NERC
notes that it addressed the first Order No. 733 directive, requiring
modification of PRC-023-1, through its revised standard PRC-023-2
(currently in effect).\13\ NERC indicates that it is addressing the
third portion of the Order No. 733 directives, relay operation during
stable power swings, as part of a separate phase of the project.\14\
---------------------------------------------------------------------------
\10\ Proposed Reliability Standards PRC-025-1 and PRC-023-3 are
not attached to this Notice of Proposed Rulemaking. The complete
texts of these proposed Reliability Standards are available on the
Commission's eLibrary document retrieval system in Docket Nos. RM13-
19-000 and RM14-3-000, and are posted on NERC's Web site, available
at: https://www.nerc.com.
\11\ Petition of the North American Electric Reliability Corp.
for Approval of Proposed Reliability Standard PRC-025-1 (Generator
Relay Loadability), Docket No. RM13-19-000, at 4 (Sept. 30, 2013)
(Sept. 30 Petition or Petition). NERC requested that the Commission
delay its consideration of PRC-025-1 until NERC could finalize and
submit for approval certain related revisions to its transmission
relay loadability standard, PRC-023-2. Those revisions were
submitted on Dec. 17, 2013, as discussed further below.
\12\ See id. at 8.
\13\ Id. (citing Transmission Relay Loadability Reliability
Standard, Order No. 759, 138 FERC ] 61,197 (2012)).
\14\ Id. NERC indicated that this third phase of its response to
Order No. 733 is tentatively scheduled to be completed in December
2014. Id.
---------------------------------------------------------------------------
8. The stated purpose of PRC-025-1 is ``[t]o set load-responsive
protective relays associated with generation Facilities at a level to
prevent unnecessary tripping of generators during a system disturbance
for conditions that do not pose a risk of damage to the associated
equipment.'' \15\ Proposed Reliability Standard PRC-025-1 would apply
to any generator owner, transmission owner, or distribution provider
``that applies load-responsive protective relays at the terminals of
the Elements listed in 3.2, Facilities.'' \16\ ``Facilities,'' in turn,
are defined in section 3.2 of the proposed standard as:
---------------------------------------------------------------------------
\15\ Sept. 30 Petition, Ex. A at 3. While NERC has not proposed
a definition for the term ``load-responsive protective relays,''
Attachment A of existing Reliability Standard PRC-023-2, which also
uses the term ``load-responsive protective relays'' states that the
standard includes ``any protective functions which could trip with
or without time delay, on load current.'' NERC Reliability Standard
PRC-023-2, available at https://www.nerc.com/_layouts/PrintStandard.aspx?standardnumber=PRC-023-2&title=Transmission%20Relay%20Loadability&jurisdiction=United%20States.
\16\ Sept. 30 Petition, Ex. A at 3. NERC further explains that
the standard should ``include all load-responsive protective relays
that are affected by increased generator output in response to
system disturbances.'' Sept. 30 Petition, Ex. A at 25 (Guidelines
and Technical Basis) (hereinafter Guidelines).
Elements associated with Bulk Electric System (BES) generating
units and generating plants, including those * * * identified as
Blackstart Resources in the Transmission Operator's system
---------------------------------------------------------------------------
restoration plan:
3.2.1 Generating unit(s).
3.2.2 Generator step-up (i.e., GSU) transformer(s).
3.2.3 Unit auxiliary transformer(s) (UAT) that supply overall
auxiliary power necessary to keep generating unit(s) online.
3.2.4 Elements that connect the GSU transformer(s) to the
Transmission system that are used exclusively to export energy
directly from a BES generating unit or generating plant. Elements
may also supply generating plant loads.
3.2.5 Elements utilized in the aggregation of dispersed power
producing resources.
9. Proposed Reliability Standard PRC-025-1 has only one
requirement, that each applicable entity ``shall apply settings that
are in accordance with PRC-025-1--Attachment 1: Relay Settings, on each
load-responsive protective relay while maintaining reliable fault
protection.'' \17\ The relay setting options are defined in Table 1 of
Attachment 1, and include the specific bus voltage and other inputs to
be used depending on the application (e.g., synchronous or asynchronous
generator, generator step-up transformer, or unit auxiliary
transformer) and the type of relay. For most applications of each type
of relay, the proposed standard would give applicable entities the
option of adopting relay settings that meet the stated criteria as
determined through (1) a relatively simple calculation, (2) a more
complex calculation, or (3) a described simulation. As stated in the
standard, the criteria in Attachment 1 ``represent short-duration
conditions during which generation Facilities are capable of providing
system reactive resources, and for which generation Facilities have
been historically recorded to disconnect, causing events to become more
severe.'' \18\
---------------------------------------------------------------------------
\17\ Id. 18, and Ex. A at 4.
\18\ Id., Ex. A at 4 (Rationale for R1).
---------------------------------------------------------------------------
10. NERC further explains in its petition that the specific relay
setting criteria are based on system conditions observed during the
August 2003 Blackout.\19\ The criteria for relays applied on
synchronous generators, and
[[Page 17079]]
their associated generator step-up transformers (GSUs) and connecting
elements, are based on the response of the synchronous generator to
depressed transmission system voltage (with allowances for reactive
power losses across the GSU transformer). The criteria for relays
applied on asynchronous generators and their associated GSU
transformers and connecting elements are based on the more limited
response of an asynchronous generator to the depressed voltage (with no
allowance for loss of reactive power across the GSU transformer because
such losses are not significant).\20\ The criteria for relays applied
on unit auxiliary transformers (UATs) that supply station service are
based on the increased current requirements of station service load
during a depressed voltage condition.
---------------------------------------------------------------------------
\19\ Id. 10.
\20\ Id. 11.
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11. In its justification for approval of the proposed standard,
NERC explains that ``[a]nalyses of power system disturbances over the
past twenty-five years have found generators to have tripped
unnecessarily--an occurrence that has the potential to extend the scope
and duration of a disturbance.'' \21\ According to NERC, during the
recovery phase of a disturbance, system voltage may be widely depressed
and may fluctuate. To support the system during this phase of a
disturbance, NERC explains that the proposed standard ``establishes
criteria for setting load-responsive relays such that individual
generators may provide Reactive Power within their dynamic capability
during transient time periods,'' thereby avoiding unnecessary tripping
of generators and ensuring that ``dynamic capability is available to
support system recovery.'' \22\
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\21\ Id. 9.
\22\ Id. 9-10.
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12. NERC proposes Requirement R1 of PRC-025-1 be assigned a
``High'' violation risk factor, and a ``Severe'' violation severity
level for failure to apply settings as required. NERC's Implementation
Plan proposes that applicable entities must be in compliance with the
new standard: (1) 60 months after regulatory approval where compliance
can be achieved without replacement or removal of relays; or (2) 84
months after regulatory approval if replacement or removal of relays is
necessary.\23\
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\23\ See Sept. 30 Petition, Ex. B (Implementation Plan).
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2. Proposed Reliability Standard PRC-023-3
13. On December 17, 2013, NERC submitted proposed clarifying
changes to Reliability Standard PRC-023-2, as reflected in PRC-023-3,
as ``Supplemental Information'' to its Sept. 30 Petition.\24\ NERC
explains in its Supplemental Filing that these changes were identified
during development of PRC-025-1 as ``necessary to establish a bright-
line distinction between the applicability of load-responsive
protective relays in the transmission and generator relay loadability
Reliability Standards.'' \25\ NERC explains that stakeholders became
concerned about potential compliance overlap between the new generator
relay loadability standard, PRC-025-1, and existing standard PRC-023-2,
which currently applies to certain elements that connect GSU
transformers to the transmission system.
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\24\ Supplemental Information to the Petition of the North
American Electric Reliability Corp. for Approval of Proposed
Reliability Standard PRC-025-1 (Generator Relay Loadability), Docket
No. RM14-3-000 (Dec. 17, 2013) (Supplemental Filing).
\25\ Id. 1-2.
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14. In order to clarify that proposed standard PRC-025-1 is
intended to cover ``all load responsive protective relays applied at
the terminals of generators and GSU transformers,'' \26\ NERC proposes
to remove Criteria 6 of Requirement R1 from PRC-023-2 in its entirety.
That sub-requirement currently requires applicable entities to:
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\26\ See id. at 4.
Set transmission line relays applied on transmission lines
connected to generation stations remote to load so they do not
operate at or below 230% of the aggregated generation nameplate
capability.\27\
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\27\ See Supplemental Filing, Ex. A, Redline of PRC-023-2 at 6.
NERC also proposes to change the applicability section of PRC-023-2 to
exclude ``Elements that connect the GSU transformer(s) to the
Transmission system that are used exclusively to export energy directly
from a BES generating unit or generating plant.'' \28\
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\28\ See Supplemental Filing at 4, and Ex. A, Proposed
Reliability Standard PRC-023-3, Sections 4.2.1.1 and 4.2.2.1.
---------------------------------------------------------------------------
15. NERC explains in its Supplemental Filing that the two relay
loadability standards, as revised, would be based on the location where
the relays are applied and not on the intended protection functions,
which it believes is advantageous because it:
(i) Facilitates the establishment of generator relay loadability
requirements based on the physics associated with increased
generator output during stressed system conditions.
(ii) Avoids ambiguity as to whether the intended protection
function is for the generating unit or the Transmission System. . .
.
(iii) Provides clear division of applicability between the
Generator and Transmission Relay Loadability Reliability Standards
based on the physical location, independent of the entity that owns
the relay.\29\
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\29\ Supplemental Filing at 5.
16. Under NERC's proposed implementation plan, Reliability Standard
PRC-023-3 will become effective on the first day of the first calendar
quarter beyond the date that the standard is approved by the applicable
regulatory authority. Reliability Standard PRC-023-2 would be retired
immediately prior to the effective date of PRC-023-3, except that
Criterion 6 of Requirement R1 would remain in effect until the
effective date of PRC-025-1. Any implementation dates or milestones
established under PRC-023-2 would remain in place.\30\
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\30\ As part of its Supplemental Filing, NERC also submitted a
report on UAT relay loadability to address concerns raised by
minority commenters during the development of PRC-025-1 as to
whether UAT relays on the low-voltage side should be included. See
id. at 6 and Ex. E. The report concludes that there is no adverse
reliability impact from Reliability Standard PRC-025-1 as proposed,
and finds that ``based on a comparison of the simulation models and
the actual event data, the simulation results are conservative. The
model results, coupled with the NERC Generating Availability Data
System (GADS) analysis, are indicative that a reliability gap does
not result from excluding relays on the low-voltage side of the UAT
from PRC-025-1.'' Supplemental Filing at 6, Ex. E at 6.
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II. Discussion
17. Pursuant to section 215(d)(2) of the FPA, the Commission
proposes to approve Reliability Standard PRC-025-1, including its
associated violation risk factors and violation severity levels,
Reliability Standard PRC-023-3, and NERC's proposed implementation
plans for the new and revised standards. PRC-025-1 appears to
adequately address the Commission directive in Order No. 733 that NERC
develop a separate Reliability Standard that addresses generator step-
up and auxiliary transformer loadability, and do so ``in a way that is
coordinated with the Requirements and expected outcomes of PRC-023-1.''
\31\ In addition, we believe that PRC-025-1 will enhance reliability by
imposing mandatory requirements governing generator relay loadability
settings, thereby reducing the likelihood of premature or unnecessary
tripping of generators during system disturbances.
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\31\ See Order No. 733, 130 FERC ] 61,221 at PP 104-106.
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18. We also propose to approve the clarifying modifications
reflected in Reliability Standard PRC-023-3,
[[Page 17080]]
because we agree they serve to clarify the applicability of the two
standards governing relay loadability and prevent potential compliance
overlap due to inconsistencies.
III. Information Collection Statement
19. The collection of information contained in this Notice of
Proposed Rulemaking is subject to review by the Office of Management
and Budget (OMB) under section 3507(d) of the Paperwork Reduction Act
of 1995.\32\ OMB's regulations require approval of certain information
collection requirements imposed by agency rules.\33\ Upon approval of a
collection(s) of information, OMB will assign an OMB control number and
an expiration date. Respondents subject to the filing requirements of a
rule will not be penalized for failing to respond to these collections
of information unless the collections of information display a valid
OMB control number.
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\32\ 44 U.S.C. 3507(d) (2012).
\33\ 5 CFR 1320.11 (2013).
---------------------------------------------------------------------------
20. We solicit comments on the need for this information, whether
the information will have practical utility, the accuracy of the burden
estimates, ways to enhance the quality, utility, and clarity of the
information to be collected or retained, and any suggested methods for
minimizing respondents' burden, including the use of automated
information techniques. Specifically, the Commission asks that any
revised burden or cost estimates submitted by commenters be supported
by sufficient detail to understand how the estimates are generated.
21. The Commission proposes to approve Reliability Standard PRC-
025-1 and to approve revisions to PRC-023-2. Proposed Reliability
Standard PRC-025-1 will impose new requirements to set certain
generator protective relays in accordance with prescribed criteria, and
will apply to transmission owners, distribution providers, and
generator owners with applicable relays. Affected entities will have to
ensure that their relays are set in accordance with these criteria and
maintain records or other evidence demonstrating their compliance with
the standard's requirements. The revisions to PRC-023-2 will result in
a change in how relay settings are calculated for certain kinds of
relays, but will not result in reporting or recordkeeping requirements
or burden.
Public Reporting Burden: Proposed Reliability Standard PRC-025-1
does not require responsible entities to file information with the
Commission. However, the Reliability Standard requires applicable
entities to develop and maintain certain information, subject to audit
by a Regional Entity. In particular, transmission owners, generator
owners and distribution providers must ``have evidence'' to show that
each of its load-responsive protective relays are set according to one
of the options in Attachment 1 to Reliability Standard PRC-025-1. Our
estimate below regarding the number of respondents is based on the NERC
compliance registry as of January 31, 2014. According to the NERC
compliance registry, NERC has registered 539 distribution providers,
903 generator owners and 344 transmission owners. However, under NERC's
compliance registration program, entities may be registered for
multiple functions, so these numbers incorporate some double counting.
The number of unique entities responding will be approximately 1,019
\34\ entities registered as a transmission owner, a distribution
provider, or a generator owner that is also a transmission owner and/or
a distribution owner. The Commission estimates the annual reporting
burden and cost as follows:
---------------------------------------------------------------------------
\34\ This estimate assumes all of the unique entities apply
load-responsive protective relays.
\35\ Normally these reporting and recordkeeping requirements
would be included under FERC-725G (OMB Control No. 1902-0252).
However, only one request per OMB Control Number can be pending OMB
review at a time. Because a pending and unrelated rulemaking also
affects other aspects of FERC-725G, the reporting and record
retention requirements for this NOPR in RM13-19 and RM14-3 will be
submitted to OMB for review under FERC-725Q.
\36\ GO = Generator Owner, DP = Distribution Provider, TO =
Transmission Owner, each of whom applies load-responsive protective
relays at the terminals of the Elements listed (in the Standard)
3.2, Facilities.
\37\ The estimated hourly costs (salary plus benefits) are based
on Bureau of Labor and Statistics (BLS) information (available at
https://bls.gov/oes/current/naics3_221000.htm#17-0000) for an
electrical engineer ($59.62/hour for review and documentation), and
for a file clerk ($28.95/hour for record retention).
FERC-725Q, \35\ as Modified in NOPR in RM13-19 and RM14-3
--------------------------------------------------------------------------------------------------------------------------------------------------------
Annual number Total annual burden
Number and type of of responses Total number Averge burden and hours and total Cost per
respondents \36\ per respondent of responses cost per response annual cost respondent \37\
(1).................. (2) (3).................. (1) x (2) x (3).....
--------------------------------------------------------------------------------------------------------------------------------------------------------
(One-time) Review & documentation 1,019 GO/DP/TO....... 1 1,019 20 hrs. & $59.62/hour 20,380 hours & $1192
of relay settings to ensure $1,215,056.
compliance.
(On-going) Record Retention (of 1,019 GO/DP/TO....... 1 1,019 2 hrs. & $28.95/hour. 2,038 hours & $57.90
compliance records for R1 and M1, $59,000.
for 3 years or until mitigation
complete).
--------------------------------------------------------------------------------------------------------------------------------------------------------
Title: Mandatory Reliability Standards for the Bulk-Power System.
Action: Proposed FERC-725Q.
OMB Control No: To Be Determined.
Respondents: Businesses or other for-profit institutions; not-for-
profit institutions.
Frequency of Responses: One-time and ongoing.
Necessity of the Information: The Generator Relay Loadability
Reliability Standard, if adopted, would implement the Congressional
mandate of the Energy Policy Act of 2005 to develop mandatory and
enforceable Reliability Standards to better ensure the reliability of
the nation's Bulk-Power System. Specifically, the purpose of the
proposed Reliability Standard is to set load-responsive protective
relays associated with generation facilities at a level to prevent
unnecessary tripping of generators during a system disturbance for
conditions that do not pose a risk of damage to the associated
equipment. The proposed Reliability Standard requires entities to
maintain records subject to review by the Commission and NERC to ensure
compliance with the Reliability Standard.
[[Page 17081]]
Internal Review: The Commission has reviewed the requirements
pertaining to the proposed Reliability Standard for the Bulk-Power
System and determined that the proposed requirements are necessary to
meet the statutory provisions of the Energy Policy Act of 2005. These
requirements conform to the Commission's plan for efficient information
collection, communication and management within the energy industry.
The Commission has assured itself, by means of internal review, that
there is specific, objective support for the burden estimates
associated with the information requirements.
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, email:
DataClearance@ferc.gov, phone: (202) 502-8663, fax: (202) 273-0873].
23. Comments concerning the information collections proposed in
this NOPR and the associated burden estimates should be sent to the
Commission in these dockets and may also be sent to the Office of
Management and Budget, Office of Information and Regulatory Affairs
[Attention: Desk Officer for the Federal Energy Regulatory Commission].
For security reasons, comments should be sent by email to OMB at the
following email address: oira_submission@omb.eop.gov. Please reference
FERC-725Q and the docket numbers of this Notice of Proposed Rulemaking
(Docket Nos. RM13-19-000 and RM14-3-000) in your submission.
IV. Regulatory Flexibility Act Certification
24. The Regulatory Flexibility Act of 1980 (RFA) \38\ generally
requires a description and analysis of proposed 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's) Office of Size
Standards develops the numerical definition of a small business.\39\
The SBA recently revised its size standard for electric utilities
(effective January 22, 2014) to a standard based on the number of
employees, including affiliates (from a standard based on megawatt
hours).\40\ Under SBA's new size standards, generator owners,
distribution providers, and transmission owners likely come under one
of the following categories and associated size thresholds: \41\
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\38\ 5 U.S.C. 601-612 (2012).
\39\ 13 CFR 121.101 (2013).
\40\ SBA Final Rule on ``Small Business Size Standards:
Utilities,'' 78 FR 77343 (12/23/2013).
\41\ 13 CFR 121.201, Sector 22, Utilities.
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Hydroelectric power generation, at 500 employees.
Fossil fuel electric power generation, at 750 employees.
Nuclear power generation, at 750 employees.
Other electric power generation (e.g. solar, wind,
geothermal, and others), at 250 employees.
Electric bulk power transmission and control, at 500
employees.
Electric power distribution, at 1,000 employees.
25. Based on U.S. economic census data,\42\ the approximate
percentages of small firms in these categories varies from 24 percent
to 94 percent. However, currently FERC does not have information on how
the economic census data compares with entities registered with NERC
and is unable to estimate the number of small GOs, DPs, and TOs using
the new SBA definitions.\43\ Regardless, FERC recognizes that the rule
will likely impact small GOs, DPs, and TOs and estimates the economic
impact on each entity below.
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\42\ Data and further information are available from SBA
available at https://www.sba.gov/advocacy/849/12162.
\43\ Using the previous SBA definition, 230 of the 1,019
entities affected by the proposed PRC-025-1 would have qualified as
small entities.
---------------------------------------------------------------------------
26. Proposed Reliability Standard PRC-025-1 will serve to enhance
reliability by imposing mandatory requirements governing generator
relay loadability, thereby reducing the likelihood of premature or
unnecessary tripping of generators during system disturbances. The
Commission estimates that each of the small entities to whom the
proposed Reliability Standard PRC-025-1 applies will incur one-time
compliance costs of $4,480 (i.e., the cost of re-setting any relays
found to be out of compliance),\44\ plus paperwork and record retention
costs of $1,192 (one-time implementation) and $57.90 (annual
ongoing).\45\ Per entity, the total one-time implementation costs are
estimated to be $5,672 (including paperwork and non-paperwork costs)
and the annual ongoing costs are estimated to be $57.90.
---------------------------------------------------------------------------
\44\ These are non-paperwork related costs, which are not
reflected in the burden described in the Information Collection
Section above, and instead reflect the burden of re-setting relays
in order to comply with the new requirements of PRC-025-1.
Specifically, this figure reflects an estimated time of 8 hours per
relay, assuming an average of 8 digital relays which will need to be
re-set per small entity, at a cost of $70 per hour (the average of
the salary plus benefits for a manager and an engineer, from Bureau
of Labor and Statistics available at https://bls.gov/oes/current/naics3_221000.htm and https://www.bls.gov/news.release/ecec.nr0.htm).
\45\ The one-time paperwork-related implementation cost estimate
is based on a burden of 20 hours at $59.62/hour, and the annual
record-keeping cost estimate is based on a burden of 2 hours at
$28.95/hour. See supra at 21 and P 1 note/39.
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27. The Commission does not consider the estimated costs per small
entity to have a significant economic impact on a substantial number of
small entities. Accordingly, the Commission certifies that this NOPR
will not have a significant economic impact on a substantial number of
small entities.
V. 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.\46\ 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.\47\ The actions proposed
herein fall within this categorical exclusion in the Commission's
regulations.
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\46\ Regulations Implementing the National Environmental Policy
Act of 1969, Order No. 486, FERC Stats. & Regs. ] 30,783 (1987).
\47\ 18 CFR 380.4(a)(2)(ii).
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VI. Comment Procedures
29. The Commission invites interested persons to submit comments on
the matters and issues proposed in this notice to be adopted, including
any related matters or alternative proposals that commenters may wish
to discuss. Comments are due April 28, 2014. Comments must refer to
Docket Nos. RM13-19-000 and RM14-3-000, and must include the
commenter's name, the organization they represent, if applicable, and
address.
30. The Commission encourages comments to be filed electronically
via the eFiling link on the Commission's Web site at https://www.ferc.gov. The Commission accepts most standard word processing
formats. Documents created electronically using word processing
software should be filed in native applications or print-to-PDF format
and not in a scanned format. Commenters filing electronically do not
need to make a paper filing.
[[Page 17082]]
31. Commenters that are not able to file comments electronically
must send an original of their comments to: Federal Energy Regulatory
Commission, Secretary of the Commission, 888 First Street NE.,
Washington, DC 20426.
32. All comments will be placed in the Commission's public files
and may be viewed, printed, or downloaded remotely as described in the
Document Availability section below. Commenters on this proposal are
not required to serve copies of their comments on other commenters.
VII. Document Availability
33. In addition to publishing the full text of this document in the
Federal Register, the Commission provides all interested persons an
opportunity to view and/or print the contents of this document via the
Internet through the Commission's Home Page (https://www.ferc.gov) and
in the Commission's Public Reference Room during normal business hours
(8:30 a.m. to 5:00 p.m. Eastern time) at 888 First Street NE., Room 2A,
Washington, DC 20426.
34. 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.
35. User assistance is available for eLibrary and the Commission's
Web site during normal business hours from the Commission's Online
Support at 202-502-6652 (toll free at 1-866-208-3676) or email at
ferconlinesupport@ferc.gov, or the Public Reference Room at (202) 502-
8371, TTY (202) 502-8659. Email the Public Reference Room at
public.referenceroom@ferc.gov.
By direction of the Commission.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2014-06591 Filed 3-26-14; 8:45 am]
BILLING CODE 6717-01-P
