North American Electric Reliability Corporation; Order Approving Reliability Standards, 66952-66956 [2016-23519]

Download as PDF 66952 Federal Register / Vol. 81, No. 189 / Thursday, September 29, 2016 / Notices Comments Due: 5 p.m. ET 10/14/16. DEPARTMENT OF ENERGY Federal Energy Regulatory Commission mstockstill on DSK3G9T082PROD with NOTICES Combined Notice of Filings #2 Take notice that the Commission received the following electric corporate filings: Docket Numbers: EC16–187–000. Applicants: Quantum Pasco Power, LP, Rockland Pasco Holdings, LLC. Description: Joint Application of Quantum Pasco Power, LP, et. al. for Authorization of Disposition of Jurisdictional Facilities Under Section 203 of the FPA and Requests for Waivers, Expedited Action and Privileged Treatment. Filed Date: 9/23/16. Accession Number: 20160923–5248. Comments Due: 5 p.m. ET 10/14/16. Docket Numbers: EC16–188–000. Applicants: Bluco Energy, LLC. Description: Application for Authorization Under Section 203 of the Federal Power Act of BluCo Energy, LLC. Filed Date: 9/23/16. Accession Number: 20160923–5261. Comments Due: 5 p.m. ET 10/14/16. Take notice that the Commission received the following electric rate filings: Docket Numbers: ER16–2298–001. Applicants: Duke Energy Kentucky, Inc. Description: Tariff Amendment: Revised DEK Rate Schedule No. 14 to be effective 10/1/2016. Filed Date: 9/23/16. Accession Number: 20160923–5180. Comments Due: 5 p.m. ET 10/14/16. Docket Numbers: ER16–2653–000. Applicants: Cimarron Bend Wind Project I, LLC. Description: Baseline eTariff Filing: MBR Tariff to be effective 11/10/2016. Filed Date: 9/23/16. Accession Number: 20160923–5114. Comments Due: 5 p.m. ET 10/14/16. Docket Numbers: ER16–2654–000. Applicants: City Point Energy Center, LLC. Description: Baseline eTariff Filing: Baseline new to be effective 12/31/9998. Filed Date: 9/23/16. Accession Number: 20160923–5183. Comments Due: 5 p.m. ET 10/14/16. Docket Numbers: ER16–2655–000. Applicants: Southwestern Public Service Company. Description: §205(d) Rate Filing: SPS– GSEC–Ltr Agrmt–676–0.1.0–NOC to be effective 11/22/2016. Filed Date: 9/23/16. Accession Number: 20160923–5201. VerDate Sep<11>2014 18:51 Sep 28, 2016 Jkt 238001 DEPARTMENT OF ENERGY Docket Numbers: ER16–2656–000. Applicants: Arizona Public Service Company. Description: §205(d) Rate Filing: OATT Administrative Filing to be effective 11/23/2016. Filed Date: 9/23/16. Accession Number: 20160923–5240. Comments Due: 5 p.m. ET 10/14/16. Federal Energy Regulatory Commission Docket Numbers: ER16–2657–000. Applicants: Duke Energy Florida, LLC. Description: §205(d) Rate Filing: CostBased Power Sales Agreements to be effective 12/1/2016. Filed Date: 9/23/16. Accession Number: 20160923–5276. Comments Due: 5 p.m. ET 10/14/16. 1. On May 26, 2016, the North American Electric Reliability Corporation (NERC) submitted a petition seeking approval of proposed Reliability Standards IRO–018–1 (Reliability Coordinator Real-time Reliability Monitoring and Analysis Capabilities) and TOP–010–1 (Real-time Reliability Monitoring and Analysis Capabilities). As discussed in this order, the Commission approves Reliability Standards IRO–018–1 and TOP–010–1 and NERC’s proposed implementation plan, violation severity levels and, with the exceptions identified below, violation risk factors. 2. The Commission, as discussed below, directs NERC to submit a compliance filing within 60 days of the date of this order to modify the violation risk factor designations for Requirement R1 of Reliability Standard IRO–018–1 and Requirements R1 and R2 of Reliability Standard TOP–010–1 to ‘‘high.’’ Docket Numbers: ER16–2658–000. Applicants: Pacific Gas and Electric Company. Description: Tariff Cancellation: Notice of Termination of PG&E OATT and BART Agreements to be effective 12/31/2016. Filed Date: 9/23/16. Accession Number: 20160923–5300. Comments Due: 5 p.m. ET 10/14/16. The filings are accessible in the Commission’s eLibrary system by clicking on the links or querying the docket number. Any person desiring to intervene or protest in any of the above proceedings must file in accordance with Rules 211 and 214 of the Commission’s Regulations (18 CFR 385.211 and § 385.214) on or before 5:00 p.m. Eastern time on the specified comment date. Protests may be considered, but intervention is necessary to become a party to the proceeding. eFiling is encouraged. More detailed information relating to filing requirements, interventions, protests, service, and qualifying facilities filings can be found at: http://www.ferc.gov/ docs-filing/efiling/filing-req.pdf. For other information, call (866) 208–3676 (toll free). For TTY, call (202) 502–8659. Dated: September 23, 2016. Nathaniel J. Davis, Sr., Deputy Secretary. PO 00000 Frm 00034 Fmt 4703 Sfmt 4703 North American Electric Reliability Corporation; Order Approving Reliability Standards Before Commissioners: Norman C. Bay, Chairman; Cheryl A. LaFleur, Tony Clark, and Colette D. Honorable I. Background and NERC Petition 3. The Commission certified NERC as the Electric Reliability Organization, as defined in section 215 of the Federal Power Act (FPA),1 in July 2006.2 In Order No. 693, the Commission approved 83 of 107 proposed Reliability Standards submitted by NERC, including the original Transmission Operations (TOP) and Interconnection Reliability Operations and Coordination (IRO) Reliability Standards. The Commission also directed NERC to address issues with respect to the TOP and IRO Reliability Standards regarding monitoring and analysis capabilities. 4. NERC contends that the proposed Reliability Standards address: (1) The directives in Order No. 693 requiring operators to have a minimum set of capabilities; (2) recommendations contained in the NERC Operating Committee Real-time Tools Best 1 16 [FR Doc. 2016–23542 Filed 9–28–16; 8:45 am] BILLING CODE 6717–01–P [Docket No. RD16–6–000] U.S.C. 824o(d) (2012). American Electric Reliability Corp., 116 FERC ¶ 61,062, order on reh’g and compliance, 117 FERC ¶ 61,126 (2006), order on compliance, 118 FERC ¶ 61,190, order on reh’g 119 FERC ¶ 61,046 (2007), rev. denied sub nom. Alcoa Inc. v. FERC, 564 F.3d 1342 (D.C. Cir. 2009). 2 North E:\FR\FM\29SEN1.SGM 29SEN1 mstockstill on DSK3G9T082PROD with NOTICES Federal Register / Vol. 81, No. 189 / Thursday, September 29, 2016 / Notices Practices Task Force Report published in 2008; and (3) a recommendation from the joint Commission-NERC report on the 2011 Arizona-Southern California outage. NERC explains that it developed the proposed Reliability Standards to improve real-time situational awareness capabilities and enhance reliable operations by requiring reliability coordinators, transmission operators, and balancing authorities to provide operators with awareness of monitoring and analysis capabilities, including alarm availability, so that operators may take appropriate steps to protect reliability. NERC states that the 2003 Blackout Report identified inadequate situational awareness as one of the key causes of that blackout, leading to a recommendation (Recommendation 22) for the evaluation of existing and adoption of new and better real-time tools for transmission operators and reliability coordinators. NERC adds that a recommendation (Recommendation 12) from the joint report on the 2011 Arizona-Southern California outage provided that entities ‘‘should take measures to ensure their real-time tools are adequate, operational, and run frequently enough to provide their operators the situational awareness necessary to identify and plan for contingencies and reliably operate their systems.’’ 5. NERC states that, while existing Reliability Standards contain requirements to perform monitoring and real-time assessments, proposed Reliability Standards IRO–018–1 and TOP–010–1 build on these requirements to support effective situational awareness. NERC explains that the proposed Reliability Standards accomplish this by requiring applicable entities to: (1) Provide notification to operators of real-time monitoring alarm failures; (2) provide operators with indications of the quality of information being provided by their monitoring and analysis capabilities; and (3) address deficiencies in the quality of information being provided by their monitoring and analysis capabilities. 6. Specifically, NERC states that proposed Reliability Standards IRO– 018–1, Requirement R3 and TOP–010– 1, Requirement R4 address situational awareness objectives by providing for operator awareness when key alarming tools are not performing as intended. Proposed Reliability Standard IRO–018– 1, Requirement R3 requires reliability coordinators to have an alarm process monitor that provides notification to system operators when the failure of a real-time monitoring alarm processor has occurred. Proposed Reliability Standard TOP–010–1, Requirement R4 VerDate Sep<11>2014 18:51 Sep 28, 2016 Jkt 238001 contains an identical requirement applicable to transmission operators and balancing authorities. 7. In addition, NERC states that proposed Reliability Standard IRO–018– 1, Requirement R1 obligates each reliability coordinator to implement an operating process or procedure to address the quality of the real-time data necessary to perform its real-time monitoring and real-time assessments. Proposed Reliability Standard TOP– 010–1, Requirement R1 contains identical requirements applicable to transmission operators; Requirement R2 requires the same of balancing authorities. 8. Further, NERC explains that Reliability Standards IRO–018–1, Requirement R2 and TOP–010–1, Requirement R3 ensure that reliability coordinators and transmission operators, respectively, implement operating processes or procedures to address issues related to the quality of the analysis used in real-time assessments. 9. NERC submits that proposed Reliability Standards IRO–018–1 and TOP–010–1, together with other currently-effective and Commissionapproved IRO and TOP Reliability Standards address the relevant reliability concerns underlying the Commission’s Order No. 693 directives requiring operators to have a minimum set of capabilities. NERC’s implementation plan provides that the proposed Reliability Standards would become effective the first day of the first calendar quarter that is 18 months following Commission approval. II. Notice of Filing and Responsive Pleading 10. Notice of NERC’s Petition was published on June 8, 2016 in the Federal Register, 81 FR 36,910 (2016), with comments, protests and motions to intervene due on or before June 22, 2016. Dominion Resources Services, Inc. (Dominion) filed a timely motion to intervene. III. Discussion 11. Pursuant to Rule 214 of the Commission’s Rules of Practice and Procedure, 18 CFR 385.214 (2016), the timely motion to intervene filed by Dominion serves to make it a party to this proceeding. A. Reliability Standards IRO–018–1 and TOP–010–1 12. Pursuant to section 215(d)(2) of the FPA, the Commission approves Reliability Standards IRO–018–1 and TOP–010–1 as just, reasonable, not unduly discriminatory or preferential PO 00000 Frm 00035 Fmt 4703 Sfmt 4703 66953 and in the public interest. Reliability Standards IRO–018–1 and TOP–010–1 improve real-time situational awareness capabilities and enhance reliable operations by requiring reliability coordinators, transmission operators, and balancing authorities to provide operators with an improved awareness of system conditions analysis capabilities, including alarm availability, so that operators may take appropriate steps to ensure reliability. The Reliability Standards accomplish this by requiring that applicable entities provide notification to operators of realtime system awareness and monitoring alarm failures. We agree with NERC that requiring applicable entities to implement operating processes or operating procedures governing the quality of the information they are providing on monitoring and analysis capabilities will enhance reliability. Further, we determine that Reliability Standards IRO–018–1 and TOP–010–1, together with existing Commissionapproved Reliability Standards, adequately address the relevant directives in Order No. 693. We also approve NERC’s proposed implementation plan, violation severity levels and, with the exceptions discussed below, violation risk factors. B. Violation Risk Factors 13. On May 18, 2007, the Commission established guidelines for determining whether to approve violation risk factors proposed by NERC.3 The Commission identified the following five factors for evaluating violation risk factors: (1) Consistency with the conclusions of the 2003 Blackout Report; (2) consistency within a Reliability Standard, (3) consistency among Reliability Standards with similar requirements; (4) consistency with NERC’s definition of the violation risk factor level; and (5) assignment of violation risk factor levels to those requirements in certain Reliability Standards that co-mingle a higher risk reliability objective and a lower risk reliability objective.4 14. NERC contends that it is appropriate, under the Commission’s guidelines, to assign ‘‘medium’’ violation risk factors to Requirement R1 of Reliability Standard IRO–018–1 and Requirements R1 and R2 of Reliability Standard TOP–010–1. Regarding the 3 See North American Electric Reliability Corp., 119 FERC ¶ 61,145, order on reh’g, 120 FERC ¶ 61,145 (2007); North American Electric Reliability Corp., 123 FERC ¶ 61,284, at PP 20–35, order on reh’g & compliance, 125 FERC ¶ 61,212 (2008); North American Electric Reliability Corp., 135 FERC ¶ 61,166 (2011). 4 North American Electric Reliability Corp., 119 FERC ¶ 61,145 at P 16. E:\FR\FM\29SEN1.SGM 29SEN1 mstockstill on DSK3G9T082PROD with NOTICES 66954 Federal Register / Vol. 81, No. 189 / Thursday, September 29, 2016 / Notices first guideline, NERC maintains that the requirements are not directly connected to the conclusions or critical areas identified in the 2003 Blackout Report but, rather, address specific recommendations from a NERC technical committee. 15. NERC also contends that a ‘‘medium’’ violation risk factor for these requirements satisfies the second and third guidelines because it is consistent within the Reliability Standards and among other Reliability Standards with similar requirements. Specifically, NERC states that a ‘‘medium’’ violation risk factor comports with the second guideline because the Reliability Standards contain similar responsibilities for different applicable entities. NERC also explains that such a designation is consistent with other Reliability Standards that involve effective monitoring and control of the bulk electric system. As examples, NERC points to ‘‘medium’’ violation risk factor designations for Reliability Standards TOP–003–3, Requirement R5 and IRO–010–2, Requirement R3, which provide that applicable entities shall provide the data necessary for transmission operators and reliability coordinators to perform real-time monitoring and real-time assessments. In addition, NERC cites Reliability Standard TOP–001–3, Requirement R9, which requires transmission operators and balancing authorities to notify reliability coordinators and others of planned and unplanned outages of monitoring and assessment capabilities, which has also been assigned a ‘‘medium’’ violation risk factor. 16. NERC contends that the proposed designations are also consistent with NERC’s definition of ‘‘medium’’ violation risk factor, and thus consistent with the fourth Commission guideline. NERC explains that the purpose of these Reliability Standards is to address recommendations regarding real-time situational awareness and to require entities to take steps to address data or analysis quality concerns to the extent that it affects their ability to perform real-time monitoring and analysis. NERC believes that violation of any of these requirements could directly affect the ability to effectively monitor and control the bulk electric system, but is unlikely to lead to bulk electric system instability, separation, or cascading failures. 17. With respect to the fifth guideline, NERC states that the proposed violation risk factor assignments do not reflect the lower of multiple reliability objectives as each applicable requirement contains one reliability objective. VerDate Sep<11>2014 18:51 Sep 28, 2016 Jkt 238001 18. We determine that the ‘‘medium’’ violation risk factors NERC proposes to assign to Requirement R1 of Reliability Standard IRO–018–1 and Requirements R1 and R2 of Reliability Standard TOP– 010–1 are not consistent with the Commission’s guidelines. As discussed below, NERC has not adequately justified the proposed ‘‘medium’’ violation risk factor designations. Specifically, we find that the proposed designations are inconsistent with NERC’s definition of violation risk factor; the recommendations contained in the 2003 Blackout Report; and other Reliability Standards with similar requirements. Accordingly, we direct NERC to raise these violation risk factor designations to ‘‘high.’’ 19. The fourth Commission guideline calls for consistency with NERC’s definition of the appropriate violation risk factor level.5 The Commissionapproved NERC definition for ‘‘high’’ violation risk factor states, in pertinent part, that a requirement should be ‘‘high’’ if a violation of the requirement ‘‘could place the bulk electric system at an unacceptable risk of instability, separation or cascading failures.’’ In contrast, the Commission-approved NERC definition of ‘‘medium’’ violation risk factor provides that the violation of the underlying requirement ‘‘could directly affect the electrical state or the capability of the Bulk Electric System, or the ability to effectively monitor and control the Bulk Electric System . . . [but] is unlikely to lead to Bulk Electric System instability, separation, or cascading failures.’’ While NERC states that violation of any of the requirements could directly affect the ability to effectively monitor and control the bulk electric system, NERC contends that violation of these requirements is unlikely to lead to bulk electric system instability, separation, or cascading failures. 20. NERC’s assertion that a violation of Requirement R1 of Reliability Standard IRO–018–1 and Requirements R1 and R2 of Reliability Standard TOP– 010–1 is unlikely to lead to bulk electric system instability, separation, or cascading failures is unpersuasive. The 2003 Blackout Report identified four groups of causes of the blackout, one of which was failure of the interconnected transmission network’s reliability organizations to provide effective realtime diagnostic support.6 As NERC noted in its petition, Recommendation 22 of the 2003 Blackout Report stated that NERC should ‘‘evaluate . . . the real-time operating tools necessary for reliability [sic] operation and reliability coordination, including backup capabilities . . . .’’ 7 The 2003 Blackout Report also stated that NERC should require its Operating Committee to ‘‘give particular attention in its report to the development of guidance to control areas and reliability coordinators on the use of wide-area situation display systems and the integrity of data used in those systems.’’ 8 Real-time data quality is essential to ensure reliable operation of the interconnected transmission network. Given the importance of effective real-time diagnostic support recognized by NERC’s Operating Committee and consistent with the 2003 Blackout Report, we conclude that first and fourth Commission guidelines support raising the violation risk factor designations for Requirement 1 of Reliability Standard IRO–018–1 and Requirements R1 and R2 of Reliability Standard TOP–010–1 to ‘‘high.’’ 21. Regarding the third guideline, existing Reliability Standards require real-time monitoring and assessments by reliability coordinators (IRO–002–4 and IRO–008–2), transmission operators (TOP–001–3), and balancing authorities (TOP–001–3). Reliability Standards IRO–002–4, Requirements R3 and R4, IRO–008–2, Requirement R4, and TOP– 001–3, Requirement R13 require monitoring and analysis of the bulk electric system and have ‘‘high’’ violation risk factors. The requirements of Reliability Standards IRO–018–1 and TOP–010–1 are designed to ensure the accuracy of the data used in these existing Reliability Standards to perform the required monitoring and analysis activities of the bulk electric system. The quality of the data is an essential element of the monitoring and analysis process.9 Accordingly, it would be incongruous to designate requirements mandating monitoring and assessments as ‘‘high’’ while designating requirements meant to ensure the accuracy of the data on which those assessments rely with a lower ‘‘medium’’ violation risk factor. 22. We are not persuaded by NERC’s reliance on the violation risk factors in existing Reliability Standards TOP–003– 3 and IRO–010–2 to support assigning a ‘‘medium’’ violation risk factor to 7 Id. at 159 (Recommendation 22). 8 Id. 5 See North American Electric Reliability Corp., 119 FERC ¶ 61,145 at PP 28–31. 6 U.S.-Canada Power System Outage Task Force, Final Blackout Report (April 2004) at 18, http:// www.ferc.gov/industries/electric/indus-act/ reliability/blackout/ch1-3.pdf. PO 00000 Frm 00036 Fmt 4703 Sfmt 4703 9 NERC Petition at 14 (‘‘maintaining adequate situational awareness is essential for the reliable operation of the Bulk Power System . . . situational awareness means ‘ensuring that accurate information on current system conditions . . . is continuously available . . .’ ’’). E:\FR\FM\29SEN1.SGM 29SEN1 Federal Register / Vol. 81, No. 189 / Thursday, September 29, 2016 / Notices Requirement 1 of Reliability Standard IRO–018–1 and Requirements R1 and R2 of Reliability Standard TOP–010–1. Reliability Standards TOP–003–3 and IRO–010–2 address documentation and specification of data.10 In contrast, Reliability Standards IRO–018–1, Requirement R1 and TOP–010–1, Requirements R1 and R2 go beyond documentation and specification of data and require the development of an operating process or operating procedure to evaluate ‘‘the quality of the Real-time data necessary to perform [ ] Real-time data monitoring and Real-time Assessments or analysis functions.’’ 11 This distinction justifies assigning a higher violation risk factor to Reliability Standards IRO–018–1, Requirement R1 and TOP–010–1, Requirements R1 and R2. 23. Nor are we persuaded by NERC’s citation of a ‘‘medium’’ violation risk factor for Reliability Standard TOP– 001–3, Requirement R9. This requirement mandates that each transmission operator and balancing authority notify its reliability coordinator and known impacted interconnected entities of, among other things, all planned outages, and unplanned outages of 30 minutes or more, for monitoring and assessment capabilities, and associated communication channels between the affected entities. This is a notification requirement, not a real-time performance requirement. The notified entity already is subject to performance requirements relating to its real-time monitoring and assessment capabilities. IV. Information Collection Statement 24. The Paperwork Reduction Act (PRA) requires each federal agency to seek and obtain Office of Management and Budget (OMB) approval before undertaking a collection of information directed to ten or more persons or contained in a rule of general applicability.12 OMB regulations require approval of certain information collection requirements imposed by agency rules.13 Upon approval of a collection of information, OMB will assign an OMB control number and an expiration date. Respondents subject to the filing requirements of an agency rule will not be penalized for failing to respond to the collection of information unless the collection of information displays a valid OMB control number. 25. The Commission will submit the information collection requirements to OMB for its review and approval. The Commission solicits public comments on its need for this information, whether the information will have practical utility, the accuracy of burden and cost 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. Comments are due November 28, 2016. 26. The Commission is approving the proposed Reliability Standards IRO– 018–01 (Reliability Coordinator Realtime Reliability Monitoring and Analysis Capabilities, associated with FERC–725Z (Mandatory Reliability Standards: IRO Reliability Standards)) and TOP–010–1 (Real-time Reliability Monitoring and Analysis Capabilities, associated with FERC–725A (Mandatory Reliability Standards for the Bulk Power System)). 27. The Commission finds that the new TOP and IRO Reliability Standards improve reliability by providing rigorous functional requirements for real-time monitoring and analysis. Reliability Standards IRO–018–1 and TOP–010–1 were created to improve real-time situational awareness capabilities and enhance reliable operations by requiring reliability coordinators, transmission operators, and balancing authorities to provide operators with awareness of monitoring and analysis capabilities, including 66955 alarm availability, so that entities may take appropriate steps to ensure reliability. 28. The Commission approves Reliability Standards IRO–018–1 and TOP–010–1, which enhance reliability by accomplishing Blackout Report Recommendation 22 to evaluate and adopt better real-time tools for operators and reliability coordinators and establish requirements to perform realtime monitoring and analysis capabilities to support reliable system operations. The new Reliability Standards build upon existing requirements to support effective realtime monitoring and analysis and improved situational awareness, and thereby enhance reliable operations. Reliability Standard IRO–018–1 is applicable to reliability coordinators. Reliability Standard TOP–010–1 applies to transmission operators and balancing authorities. Public Reporting Burden: The new TOP and IRO Reliability Standards require applicable entities to provide notification to operators of real-time monitoring of alarm failures. The new standards also require applicable entities to implement operating processes or operating procedures to: (i) Provide operators with indication(s) of the quality of information being provided by their monitoring and analysis capabilities; and (ii) address deficiencies in the quality of information being provided by their monitoring and analysis capabilities. Our estimates regarding the number of respondents are based on the NERC Compliance Registry as of April 21, 2016. According to the NERC Compliance Registry, there are 11 reliability coordinators, 100 balancing authorities and 171 transmission operators registered. The additional estimated burden and cost related to the changes in Docket No. RD16–6 are as follows: FERC–725Z—CHANGES DUE TO RELIABILITY STANDARD IRO–018–1 RC 16 ........ mstockstill on DSK3G9T082PROD with NOTICES Requirements and period Number of respondents 14 Annual number of responses per respondent Total number of responses (1) Entity (2) (1) * (2) = (3) Year 1 Implementation (reporting) Starting in Year 2 (annual reporting). Annual Record Retention ............ 20:38 Sep 28, 2016 Jkt 238001 Cost per respondent ($) (5) ÷ (1) (4) (3) * (4) = (5) 11 11 1 1 11 11 60 hrs.; $3,852.00 ......... 32 hrs.; $2,054.40 ......... 660 hrs.; $42,372.00 ..... 352 hrs.; $22,598.40 ..... $3,852.00 2,054.40 11 10 The data specifications in Reliability Standards TOP–003–2, Requirement R5 and IRO–010–2, Requirement R3, cited by NERC, are for ‘‘mutually agreeable’’ formats, processes for resolving conflicts, and security protocols. These mutually VerDate Sep<11>2014 Total annual burden hours and total annual cost Average burden and cost per response 15 1 11 2 hrs.; $75.38 ................ 22 hrs.; $829.18 ............ 75.38 agreeable procedural aspects likely would not be developed in Real-time. 11 NERC Petition at 18. NERC emphasizes the importance of the quality of this type of data by noting that ‘‘[e]ntities continue to address lower- PO 00000 Frm 00037 Fmt 4703 Sfmt 4703 priority data quality issues (i.e., data quality issues not affecting Real-time monitoring or analysis) according to their operating practices.’’ Id. 12 44 U.S.C. 3507(d) (2012). 13 5 CFR 1320 (2016). E:\FR\FM\29SEN1.SGM 29SEN1 66956 Federal Register / Vol. 81, No. 189 / Thursday, September 29, 2016 / Notices FERC–725Z—CHANGES DUE TO RELIABILITY STANDARD IRO–018–1—Continued Requirements and period Total burden hrs. per year .......................... Number of respondents 14 Annual number of responses per respondent Total number of responses Average burden and cost per response 15 Total annual burden hours and total annual cost Cost per respondent ($) (1) Entity (2) (1) * (2) = (3) (4) (3) * (4) = (5) (5) ÷ (1) ........................ ........................ ...................... ....................................... 682 hrs. in Year 1; 374 hrs. per year starting in Year 2. .................. FERC–725A—CHANGES DUE TO TOP–010–1 IN DOCKET NO. RD16–6–000 Number of respondents 17 Annual number of responses per respondent Total number of responses (1) (2) (1) * (2) = (3) Total annual burden hours and total annual cost Average burden and cost per response 18 Entity Requirements and period BA 19 ......... TOP 20 ...... Year 1 Implementation (reporting) Starting in Year 2 (annual reporting). Year 1 implementation (reporting) Starting in Year 2 (annual reporting). Annual Record Retention ............ 171 1 171 BA/TOP .... 271 1 271 Total burden hours per year ....................... ........................ ........................ ...................... ....................................... 19,512 hrs. in Year 1; 11,582 hrs. per year, starting in Year 2. mstockstill on DSK3G9T082PROD with NOTICES Jkt 238001 (3) * (4) = (5) 1 1 100 100 70 hrs.; $4,494.00 ......... 42 hrs.; $2,696.40 ......... 7,000 hrs.; $449,400.00 4,200 hrs.; $269,640.00 $4,494.00 2,696.40 171 14 The number of respondents is the estimated number of entities for which there is a change in burden from the current standards to the proposed standards, not the total number of entities from the current or proposed standards that are applicable. 15 The estimated hourly costs (salary plus benefits) are based on Bureau of Labor Statistics (BLS) information, as of May 2015 (at http:// www.bls.gov/oes/current/naics2_22.htm, with updated benefits information for March 2016 at http://www.bls.gov/news.release/ecec.nr0.htm), for an electrical engineer (code 17–2071, $64.20/hour), and for information and record clerks (code 43– 4199, $37.69/hour). The hourly figure for engineers is used for reporting; the hourly figure for information and record clerks is used for document retention. 16 The following Requirements and the associated measures apply to RCs: Requirement R1: A revised data specification and writing the required operating Process/Operating Procedure; Requirement R2: Quality monitoring logs and the data errors and corrective action logs; and Requirement R3: Alarm process monitor performance logs. 17 The number of respondents is the number of entities in which a change in burden from the current standards to the proposed exists, not the total number of entities from the current or proposed standards that are applicable. 18 The estimated hourly costs (salary plus benefits) are based on Bureau of Labor Statistics (BLS) information, as of May 2015 (at http:// www.bls.gov/oes/current/naics2_22.htm, with updated benefits information for March 2016 at http://www.bls.gov/news.release/ecec.nr0.htm), for 20:38 Sep 28, 2016 (5) ÷ (1) (4) 100 100 29. The Commission finds that that the new standards clarify and improve upon the currently-effective TOP and IRO Reliability Standards by designating requirements in the new standards that apply to transmission operators and balancing authorities for the TOP standards and reliability coordinators for the IRO standards. Thus, the Commission finds that there are benefits VerDate Sep<11>2014 Cost per respondent ($) 1 171 70 hrs.; $4,494.00 ......... 4,494.00 40 hrs. $2,568.00 .......... 11,970 hrs.; $768,474.00. 6,840 hrs.; $439,128.00 2 hrs $75.38 .................. 542 hrs. $20,427.98 ...... to clarifying and bringing efficiencies to the TOP and IRO Reliability Standards, consistent with the Commission’s policy promoting increased efficiencies in Reliability Standards and reducing requirements that are either redundant with other currently-effective requirements or have little reliability benefit. Title: FERC–725Z (Mandatory Reliability Standards: IRO Reliability Standards) and FERC–725A (Mandatory Reliability Standards for the Bulk-Power System). Action: Proposed revisions to existing information collections. OMB Control No: 1902–0276 (FERC– 725Z); 1902–0244 (FERC–725A). Respondents: Businesses or other forprofit institutions; not-for-profit institutions. Frequency of Responses: One-time implementation and ongoing. an electrical engineer (code 17–2071, $64.20/hour), and for information and record clerks record keeper (code 43–4199, $37.69/hour). The hourly figure for engineers is used for reporting; the hourly figure for information and record clerks is used for document retention. 19 The following Requirements and associated measures apply to balancing authorities: Requirement R1: A revised data specification and writing the required operating process/operating procedure; and Requirement R2: Quality monitoring logs and the data errors and corrective action logs. 20 The following Requirements and associated measures apply to transmission operators: Requirement R1: A revised data specification and writing the required operating process/operating procedure; and Requirement R3: Alarm process monitor performance logs to maintain performance logs and corrective action plans. PO 00000 Frm 00038 Fmt 4703 Sfmt 4703 2,568.00 75.338 .................. Necessity of the Information: Reliability Standards IRO–018–1 and TOP–010–1 enhance reliability by adopting better real-time tools for reliability coordinators, transmission operators, and balancing authorities and also establish requirements for real-time monitoring and analysis capabilities to support reliable system operations. 30. Interested persons may obtain information on the reporting requirements by contacting: 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]. V. Effective Date 31. This order will become effective upon issuance. The Commission orders: (A) Reliability Standards IRO–018–1 and TOP–010–1 are hereby approved, as discussed in the body of this order. (B) NERC is hereby directed to submit a compliance filing within 60 days of the date of this order designating the violation risk factors for Requirement R1 of Reliability Standard IRO–018–1 and Requirements R1 and R2 of Reliability Standard TOP–010–1 as ‘‘high,’’ as discussed in the body of this order. By the Commission. Issued: September 22, 2016. Kimberly D. Bose, Secretary. [FR Doc. 2016–23519 Filed 9–28–16; 8:45 am] BILLING CODE 6717–01–P E:\FR\FM\29SEN1.SGM 29SEN1

Agencies

[Federal Register Volume 81, Number 189 (Thursday, September 29, 2016)]
[Notices]
[Pages 66952-66956]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-23519]


-----------------------------------------------------------------------

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. RD16-6-000]


North American Electric Reliability Corporation; Order Approving 
Reliability Standards

    Before Commissioners: Norman C. Bay, Chairman; Cheryl A. 
LaFleur, Tony Clark, and Colette D. Honorable

    1. On May 26, 2016, the North American Electric Reliability 
Corporation (NERC) submitted a petition seeking approval of proposed 
Reliability Standards IRO-018-1 (Reliability Coordinator Real-time 
Reliability Monitoring and Analysis Capabilities) and TOP-010-1 (Real-
time Reliability Monitoring and Analysis Capabilities). As discussed in 
this order, the Commission approves Reliability Standards IRO-018-1 and 
TOP-010-1 and NERC's proposed implementation plan, violation severity 
levels and, with the exceptions identified below, violation risk 
factors.
    2. The Commission, as discussed below, directs NERC to submit a 
compliance filing within 60 days of the date of this order to modify 
the violation risk factor designations for Requirement R1 of 
Reliability Standard IRO-018-1 and Requirements R1 and R2 of 
Reliability Standard TOP-010-1 to ``high.''

I. Background and NERC Petition

    3. The Commission certified NERC as the Electric Reliability 
Organization, as defined in section 215 of the Federal Power Act 
(FPA),\1\ in July 2006.\2\ In Order No. 693, the Commission approved 83 
of 107 proposed Reliability Standards submitted by NERC, including the 
original Transmission Operations (TOP) and Interconnection Reliability 
Operations and Coordination (IRO) Reliability Standards. The Commission 
also directed NERC to address issues with respect to the TOP and IRO 
Reliability Standards regarding monitoring and analysis capabilities.
---------------------------------------------------------------------------

    \1\ 16 U.S.C. 824o(d) (2012).
    \2\ North American Electric Reliability Corp., 116 FERC ] 
61,062, order on reh'g and compliance, 117 FERC ] 61,126 (2006), 
order on compliance, 118 FERC ] 61,190, order on reh'g 119 FERC ] 
61,046 (2007), rev. denied sub nom. Alcoa Inc. v. FERC, 564 F.3d 
1342 (D.C. Cir. 2009).
---------------------------------------------------------------------------

    4. NERC contends that the proposed Reliability Standards address: 
(1) The directives in Order No. 693 requiring operators to have a 
minimum set of capabilities; (2) recommendations contained in the NERC 
Operating Committee Real-time Tools Best

[[Page 66953]]

Practices Task Force Report published in 2008; and (3) a recommendation 
from the joint Commission-NERC report on the 2011 Arizona-Southern 
California outage. NERC explains that it developed the proposed 
Reliability Standards to improve real-time situational awareness 
capabilities and enhance reliable operations by requiring reliability 
coordinators, transmission operators, and balancing authorities to 
provide operators with awareness of monitoring and analysis 
capabilities, including alarm availability, so that operators may take 
appropriate steps to protect reliability. NERC states that the 2003 
Blackout Report identified inadequate situational awareness as one of 
the key causes of that blackout, leading to a recommendation 
(Recommendation 22) for the evaluation of existing and adoption of new 
and better real-time tools for transmission operators and reliability 
coordinators. NERC adds that a recommendation (Recommendation 12) from 
the joint report on the 2011 Arizona-Southern California outage 
provided that entities ``should take measures to ensure their real-time 
tools are adequate, operational, and run frequently enough to provide 
their operators the situational awareness necessary to identify and 
plan for contingencies and reliably operate their systems.''
    5. NERC states that, while existing Reliability Standards contain 
requirements to perform monitoring and real-time assessments, proposed 
Reliability Standards IRO-018-1 and TOP-010-1 build on these 
requirements to support effective situational awareness. NERC explains 
that the proposed Reliability Standards accomplish this by requiring 
applicable entities to: (1) Provide notification to operators of real-
time monitoring alarm failures; (2) provide operators with indications 
of the quality of information being provided by their monitoring and 
analysis capabilities; and (3) address deficiencies in the quality of 
information being provided by their monitoring and analysis 
capabilities.
    6. Specifically, NERC states that proposed Reliability Standards 
IRO-018-1, Requirement R3 and TOP-010-1, Requirement R4 address 
situational awareness objectives by providing for operator awareness 
when key alarming tools are not performing as intended. Proposed 
Reliability Standard IRO-018-1, Requirement R3 requires reliability 
coordinators to have an alarm process monitor that provides 
notification to system operators when the failure of a real-time 
monitoring alarm processor has occurred. Proposed Reliability Standard 
TOP-010-1, Requirement R4 contains an identical requirement applicable 
to transmission operators and balancing authorities.
    7. In addition, NERC states that proposed Reliability Standard IRO-
018-1, Requirement R1 obligates each reliability coordinator to 
implement an operating process or procedure to address the quality of 
the real-time data necessary to perform its real-time monitoring and 
real-time assessments. Proposed Reliability Standard TOP-010-1, 
Requirement R1 contains identical requirements applicable to 
transmission operators; Requirement R2 requires the same of balancing 
authorities.
    8. Further, NERC explains that Reliability Standards IRO-018-1, 
Requirement R2 and TOP-010-1, Requirement R3 ensure that reliability 
coordinators and transmission operators, respectively, implement 
operating processes or procedures to address issues related to the 
quality of the analysis used in real-time assessments.
    9. NERC submits that proposed Reliability Standards IRO-018-1 and 
TOP-010-1, together with other currently-effective and Commission-
approved IRO and TOP Reliability Standards address the relevant 
reliability concerns underlying the Commission's Order No. 693 
directives requiring operators to have a minimum set of capabilities. 
NERC's implementation plan provides that the proposed Reliability 
Standards would become effective the first day of the first calendar 
quarter that is 18 months following Commission approval.

II. Notice of Filing and Responsive Pleading

    10. Notice of NERC's Petition was published on June 8, 2016 in the 
Federal Register, 81 FR 36,910 (2016), with comments, protests and 
motions to intervene due on or before June 22, 2016. Dominion Resources 
Services, Inc. (Dominion) filed a timely motion to intervene.

III. Discussion

    11. Pursuant to Rule 214 of the Commission's Rules of Practice and 
Procedure, 18 CFR 385.214 (2016), the timely motion to intervene filed 
by Dominion serves to make it a party to this proceeding.

A. Reliability Standards IRO-018-1 and TOP-010-1

    12. Pursuant to section 215(d)(2) of the FPA, the Commission 
approves Reliability Standards IRO-018-1 and TOP-010-1 as just, 
reasonable, not unduly discriminatory or preferential and in the public 
interest. Reliability Standards IRO-018-1 and TOP-010-1 improve real-
time situational awareness capabilities and enhance reliable operations 
by requiring reliability coordinators, transmission operators, and 
balancing authorities to provide operators with an improved awareness 
of system conditions analysis capabilities, including alarm 
availability, so that operators may take appropriate steps to ensure 
reliability. The Reliability Standards accomplish this by requiring 
that applicable entities provide notification to operators of real-time 
system awareness and monitoring alarm failures. We agree with NERC that 
requiring applicable entities to implement operating processes or 
operating procedures governing the quality of the information they are 
providing on monitoring and analysis capabilities will enhance 
reliability. Further, we determine that Reliability Standards IRO-018-1 
and TOP-010-1, together with existing Commission-approved Reliability 
Standards, adequately address the relevant directives in Order No. 693. 
We also approve NERC's proposed implementation plan, violation severity 
levels and, with the exceptions discussed below, violation risk 
factors.

B. Violation Risk Factors

    13. On May 18, 2007, the Commission established guidelines for 
determining whether to approve violation risk factors proposed by 
NERC.\3\ The Commission identified the following five factors for 
evaluating violation risk factors: (1) Consistency with the conclusions 
of the 2003 Blackout Report; (2) consistency within a Reliability 
Standard, (3) consistency among Reliability Standards with similar 
requirements; (4) consistency with NERC's definition of the violation 
risk factor level; and (5) assignment of violation risk factor levels 
to those requirements in certain Reliability Standards that co-mingle a 
higher risk reliability objective and a lower risk reliability 
objective.\4\
---------------------------------------------------------------------------

    \3\ See North American Electric Reliability Corp., 119 FERC ] 
61,145, order on reh'g, 120 FERC ] 61,145 (2007); North American 
Electric Reliability Corp., 123 FERC ] 61,284, at PP 20-35, order on 
reh'g & compliance, 125 FERC ] 61,212 (2008); North American 
Electric Reliability Corp., 135 FERC ] 61,166 (2011).
    \4\ North American Electric Reliability Corp., 119 FERC ] 61,145 
at P 16.
---------------------------------------------------------------------------

    14. NERC contends that it is appropriate, under the Commission's 
guidelines, to assign ``medium'' violation risk factors to Requirement 
R1 of Reliability Standard IRO-018-1 and Requirements R1 and R2 of 
Reliability Standard TOP-010-1. Regarding the

[[Page 66954]]

first guideline, NERC maintains that the requirements are not directly 
connected to the conclusions or critical areas identified in the 2003 
Blackout Report but, rather, address specific recommendations from a 
NERC technical committee.
    15. NERC also contends that a ``medium'' violation risk factor for 
these requirements satisfies the second and third guidelines because it 
is consistent within the Reliability Standards and among other 
Reliability Standards with similar requirements. Specifically, NERC 
states that a ``medium'' violation risk factor comports with the second 
guideline because the Reliability Standards contain similar 
responsibilities for different applicable entities. NERC also explains 
that such a designation is consistent with other Reliability Standards 
that involve effective monitoring and control of the bulk electric 
system. As examples, NERC points to ``medium'' violation risk factor 
designations for Reliability Standards TOP-003-3, Requirement R5 and 
IRO-010-2, Requirement R3, which provide that applicable entities shall 
provide the data necessary for transmission operators and reliability 
coordinators to perform real-time monitoring and real-time assessments. 
In addition, NERC cites Reliability Standard TOP-001-3, Requirement R9, 
which requires transmission operators and balancing authorities to 
notify reliability coordinators and others of planned and unplanned 
outages of monitoring and assessment capabilities, which has also been 
assigned a ``medium'' violation risk factor.
    16. NERC contends that the proposed designations are also 
consistent with NERC's definition of ``medium'' violation risk factor, 
and thus consistent with the fourth Commission guideline. NERC explains 
that the purpose of these Reliability Standards is to address 
recommendations regarding real-time situational awareness and to 
require entities to take steps to address data or analysis quality 
concerns to the extent that it affects their ability to perform real-
time monitoring and analysis. NERC believes that violation of any of 
these requirements could directly affect the ability to effectively 
monitor and control the bulk electric system, but is unlikely to lead 
to bulk electric system instability, separation, or cascading failures.
    17. With respect to the fifth guideline, NERC states that the 
proposed violation risk factor assignments do not reflect the lower of 
multiple reliability objectives as each applicable requirement contains 
one reliability objective.
    18. We determine that the ``medium'' violation risk factors NERC 
proposes to assign to Requirement R1 of Reliability Standard IRO-018-1 
and Requirements R1 and R2 of Reliability Standard TOP-010-1 are not 
consistent with the Commission's guidelines. As discussed below, NERC 
has not adequately justified the proposed ``medium'' violation risk 
factor designations. Specifically, we find that the proposed 
designations are inconsistent with NERC's definition of violation risk 
factor; the recommendations contained in the 2003 Blackout Report; and 
other Reliability Standards with similar requirements. Accordingly, we 
direct NERC to raise these violation risk factor designations to 
``high.''
    19. The fourth Commission guideline calls for consistency with 
NERC's definition of the appropriate violation risk factor level.\5\ 
The Commission-approved NERC definition for ``high'' violation risk 
factor states, in pertinent part, that a requirement should be ``high'' 
if a violation of the requirement ``could place the bulk electric 
system at an unacceptable risk of instability, separation or cascading 
failures.'' In contrast, the Commission-approved NERC definition of 
``medium'' violation risk factor provides that the violation of the 
underlying requirement ``could directly affect the electrical state or 
the capability of the Bulk Electric System, or the ability to 
effectively monitor and control the Bulk Electric System . . . [but] is 
unlikely to lead to Bulk Electric System instability, separation, or 
cascading failures.'' While NERC states that violation of any of the 
requirements could directly affect the ability to effectively monitor 
and control the bulk electric system, NERC contends that violation of 
these requirements is unlikely to lead to bulk electric system 
instability, separation, or cascading failures.
---------------------------------------------------------------------------

    \5\ See North American Electric Reliability Corp., 119 FERC ] 
61,145 at PP 28-31.
---------------------------------------------------------------------------

    20. NERC's assertion that a violation of Requirement R1 of 
Reliability Standard IRO-018-1 and Requirements R1 and R2 of 
Reliability Standard TOP-010-1 is unlikely to lead to bulk electric 
system instability, separation, or cascading failures is unpersuasive. 
The 2003 Blackout Report identified four groups of causes of the 
blackout, one of which was failure of the interconnected transmission 
network's reliability organizations to provide effective real-time 
diagnostic support.\6\ As NERC noted in its petition, Recommendation 22 
of the 2003 Blackout Report stated that NERC should ``evaluate . . . 
the real-time operating tools necessary for reliability [sic] operation 
and reliability coordination, including backup capabilities . . . .'' 
\7\ The 2003 Blackout Report also stated that NERC should require its 
Operating Committee to ``give particular attention in its report to the 
development of guidance to control areas and reliability coordinators 
on the use of wide-area situation display systems and the integrity of 
data used in those systems.'' \8\ Real-time data quality is essential 
to ensure reliable operation of the interconnected transmission 
network. Given the importance of effective real-time diagnostic support 
recognized by NERC's Operating Committee and consistent with the 2003 
Blackout Report, we conclude that first and fourth Commission 
guidelines support raising the violation risk factor designations for 
Requirement 1 of Reliability Standard IRO-018-1 and Requirements R1 and 
R2 of Reliability Standard TOP-010-1 to ``high.''
---------------------------------------------------------------------------

    \6\ U.S.-Canada Power System Outage Task Force, Final Blackout 
Report (April 2004) at 18, http://www.ferc.gov/industries/electric/indus-act/reliability/blackout/ch1-3.pdf.
    \7\ Id. at 159 (Recommendation 22).
    \8\ Id.
---------------------------------------------------------------------------

    21. Regarding the third guideline, existing Reliability Standards 
require real-time monitoring and assessments by reliability 
coordinators (IRO-002-4 and IRO-008-2), transmission operators (TOP-
001-3), and balancing authorities (TOP-001-3). Reliability Standards 
IRO-002-4, Requirements R3 and R4, IRO-008-2, Requirement R4, and TOP-
001-3, Requirement R13 require monitoring and analysis of the bulk 
electric system and have ``high'' violation risk factors. The 
requirements of Reliability Standards IRO-018-1 and TOP-010-1 are 
designed to ensure the accuracy of the data used in these existing 
Reliability Standards to perform the required monitoring and analysis 
activities of the bulk electric system. The quality of the data is an 
essential element of the monitoring and analysis process.\9\ 
Accordingly, it would be incongruous to designate requirements 
mandating monitoring and assessments as ``high'' while designating 
requirements meant to ensure the accuracy of the data on which those 
assessments rely with a lower ``medium'' violation risk factor.
---------------------------------------------------------------------------

    \9\ NERC Petition at 14 (``maintaining adequate situational 
awareness is essential for the reliable operation of the Bulk Power 
System . . . situational awareness means `ensuring that accurate 
information on current system conditions . . . is continuously 
available . . .' '').
---------------------------------------------------------------------------

    22. We are not persuaded by NERC's reliance on the violation risk 
factors in existing Reliability Standards TOP-003-3 and IRO-010-2 to 
support assigning a ``medium'' violation risk factor to

[[Page 66955]]

Requirement 1 of Reliability Standard IRO-018-1 and Requirements R1 and 
R2 of Reliability Standard TOP-010-1. Reliability Standards TOP-003-3 
and IRO-010-2 address documentation and specification of data.\10\ In 
contrast, Reliability Standards IRO-018-1, Requirement R1 and TOP-010-
1, Requirements R1 and R2 go beyond documentation and specification of 
data and require the development of an operating process or operating 
procedure to evaluate ``the quality of the Real-time data necessary to 
perform [ ] Real-time data monitoring and Real-time Assessments or 
analysis functions.'' \11\ This distinction justifies assigning a 
higher violation risk factor to Reliability Standards IRO-018-1, 
Requirement R1 and TOP-010-1, Requirements R1 and R2.
---------------------------------------------------------------------------

    \10\ The data specifications in Reliability Standards TOP-003-2, 
Requirement R5 and IRO-010-2, Requirement R3, cited by NERC, are for 
``mutually agreeable'' formats, processes for resolving conflicts, 
and security protocols. These mutually agreeable procedural aspects 
likely would not be developed in Real-time.
    \11\ NERC Petition at 18. NERC emphasizes the importance of the 
quality of this type of data by noting that ``[e]ntities continue to 
address lower-priority data quality issues (i.e., data quality 
issues not affecting Real-time monitoring or analysis) according to 
their operating practices.'' Id.
---------------------------------------------------------------------------

    23. Nor are we persuaded by NERC's citation of a ``medium'' 
violation risk factor for Reliability Standard TOP-001-3, Requirement 
R9. This requirement mandates that each transmission operator and 
balancing authority notify its reliability coordinator and known 
impacted interconnected entities of, among other things, all planned 
outages, and unplanned outages of 30 minutes or more, for monitoring 
and assessment capabilities, and associated communication channels 
between the affected entities. This is a notification requirement, not 
a real-time performance requirement. The notified entity already is 
subject to performance requirements relating to its real-time 
monitoring and assessment capabilities.

IV. Information Collection Statement

    24. The Paperwork Reduction Act (PRA) requires each federal agency 
to seek and obtain Office of Management and Budget (OMB) approval 
before undertaking a collection of information directed to ten or more 
persons or contained in a rule of general applicability.\12\ OMB 
regulations require approval of certain information collection 
requirements imposed by agency rules.\13\ Upon approval of a collection 
of information, OMB will assign an OMB control number and an expiration 
date. Respondents subject to the filing requirements of an agency rule 
will not be penalized for failing to respond to the collection of 
information unless the collection of information displays a valid OMB 
control number.
---------------------------------------------------------------------------

    \12\ 44 U.S.C. 3507(d) (2012).
    \13\ 5 CFR 1320 (2016).
---------------------------------------------------------------------------

    25. The Commission will submit the information collection 
requirements to OMB for its review and approval. The Commission 
solicits public comments on its need for this information, whether the 
information will have practical utility, the accuracy of burden and 
cost 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. Comments are due November 28, 2016.
    26. The Commission is approving the proposed Reliability Standards 
IRO-018-01 (Reliability Coordinator Real-time Reliability Monitoring 
and Analysis Capabilities, associated with FERC-725Z (Mandatory 
Reliability Standards: IRO Reliability Standards)) and TOP-010-1 (Real-
time Reliability Monitoring and Analysis Capabilities, associated with 
FERC-725A (Mandatory Reliability Standards for the Bulk Power System)).
    27. The Commission finds that the new TOP and IRO Reliability 
Standards improve reliability by providing rigorous functional 
requirements for real-time monitoring and analysis. Reliability 
Standards IRO-018-1 and TOP-010-1 were created to improve real-time 
situational awareness capabilities and enhance reliable operations by 
requiring reliability coordinators, transmission operators, and 
balancing authorities to provide operators with awareness of monitoring 
and analysis capabilities, including alarm availability, so that 
entities may take appropriate steps to ensure reliability.
    28. The Commission approves Reliability Standards IRO-018-1 and 
TOP-010-1, which enhance reliability by accomplishing Blackout Report 
Recommendation 22 to evaluate and adopt better real-time tools for 
operators and reliability coordinators and establish requirements to 
perform real-time monitoring and analysis capabilities to support 
reliable system operations. The new Reliability Standards build upon 
existing requirements to support effective real-time monitoring and 
analysis and improved situational awareness, and thereby enhance 
reliable operations. Reliability Standard IRO-018-1 is applicable to 
reliability coordinators. Reliability Standard TOP-010-1 applies to 
transmission operators and balancing authorities.
    Public Reporting Burden: The new TOP and IRO Reliability Standards 
require applicable entities to provide notification to operators of 
real-time monitoring of alarm failures. The new standards also require 
applicable entities to implement operating processes or operating 
procedures to: (i) Provide operators with indication(s) of the quality 
of information being provided by their monitoring and analysis 
capabilities; and (ii) address deficiencies in the quality of 
information being provided by their monitoring and analysis 
capabilities. Our estimates regarding the number of respondents are 
based on the NERC Compliance Registry as of April 21, 2016. According 
to the NERC Compliance Registry, there are 11 reliability coordinators, 
100 balancing authorities and 171 transmission operators registered. 
The additional estimated burden and cost related to the changes in 
Docket No. RD16-6 are as follows:

                                                FERC-725Z--Changes Due to Reliability Standard IRO-018-1
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                          Number of     Annual number                 Average burden and     Total annual      Cost per
             Entity                 Requirements and     respondents    of responses   Total number   cost per response    burden hours and   respondent
                                         period             \14\       per respondent  of responses          \15\          total annual cost      ($)
                                                                  (1)             (2)   (1) * (2) =  (4)................  (3) * (4) = (5)...   (5) / (1)
                                                                                                (3)
--------------------------------------------------------------------------------------------------------------------------------------------------------
RC \16\.........................  Year 1                           11               1            11  60 hrs.; $3,852.00.  660 hrs.;            $3,852.00
                                   Implementation                                                                          $42,372.00.
                                   (reporting).
                                  Starting in Year 2               11               1            11  32 hrs.; $2,054.40.  352 hrs.;             2,054.40
                                   (annual reporting).                                                                     $22,598.40.
                                  Annual Record                    11               1            11  2 hrs.; $75.38.....  22 hrs.; $829.18..       75.38
                                   Retention.
--------------------------------------------------------------------------------------------------------------------------------------------------------

[[Page 66956]]

 
    Total burden hrs. per year.......................  ..............  ..............  ............  ...................  682 hrs. in Year    ..........
                                                                                                                           1; 374 hrs. per
                                                                                                                           year starting in
                                                                                                                           Year 2.
--------------------------------------------------------------------------------------------------------------------------------------------------------


                                              FERC-725A--Changes Due to TOP-010-1 in Docket No. RD16-6-000
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                          Number of     Annual number                 Average burden and     Total annual      Cost per
             Entity                 Requirements and     respondents    of responses   Total number   cost per response    burden hours and   respondent
                                         period             \17\       per respondent  of responses          \18\          total annual cost      ($)
                                                                  (1)             (2)   (1) * (2) =  (4)................  (3) * (4) = (5)...   (5) / (1)
                                                                                                (3)
--------------------------------------------------------------------------------------------------------------------------------------------------------
BA \19\.........................  Year 1                          100               1           100  70 hrs.; $4,494.00.  7,000 hrs.;          $4,494.00
                                   Implementation                                                                          $449,400.00.
                                   (reporting).
                                  Starting in Year 2              100               1           100  42 hrs.; $2,696.40.  4,200 hrs.;           2,696.40
                                   (annual reporting).                                                                     $269,640.00.
TOP \20\........................  Year 1                          171               1           171  70 hrs.; $4,494.00.  11,970 hrs.;          4,494.00
                                   implementation                                                                          $768,474.00.
                                   (reporting).
                                  Starting in Year 2              171               1           171  40 hrs. $2,568.00..  6,840 hrs.;           2,568.00
                                   (annual reporting).                                                                     $439,128.00.
BA/TOP..........................  Annual Record                   271               1           271  2 hrs $75.38.......  542 hrs.                75.338
                                   Retention.                                                                              $20,427.98.
--------------------------------------------------------------------------------------------------------------------------------------------------------
    Total burden hours per year......................  ..............  ..............  ............  ...................  19,512 hrs. in      ..........
                                                                                                                           Year 1; 11,582
                                                                                                                           hrs. per year,
                                                                                                                           starting in Year
                                                                                                                           2.
--------------------------------------------------------------------------------------------------------------------------------------------------------

    29. The Commission finds that that the new standards clarify and 
improve upon the currently-effective TOP and IRO Reliability Standards 
by designating requirements in the new standards that apply to 
transmission operators and balancing authorities for the TOP standards 
and reliability coordinators for the IRO standards. Thus, the 
Commission finds that there are benefits to clarifying and bringing 
efficiencies to the TOP and IRO Reliability Standards, consistent with 
the Commission's policy promoting increased efficiencies in Reliability 
Standards and reducing requirements that are either redundant with 
other currently-effective requirements or have little reliability 
benefit.
---------------------------------------------------------------------------

    \14\ The number of respondents is the estimated number of 
entities for which there is a change in burden from the current 
standards to the proposed standards, not the total number of 
entities from the current or proposed standards that are applicable.
    \15\ The estimated hourly costs (salary plus benefits) are based 
on Bureau of Labor Statistics (BLS) information, as of May 2015 (at 
http://www.bls.gov/oes/current/naics2_22.htm, with updated benefits 
information for March 2016 at http://www.bls.gov/news.release/ecec.nr0.htm), for an electrical engineer (code 17-2071, $64.20/
hour), and for information and record clerks (code 43-4199, $37.69/
hour). The hourly figure for engineers is used for reporting; the 
hourly figure for information and record clerks is used for document 
retention.
    \16\ The following Requirements and the associated measures 
apply to RCs: Requirement R1: A revised data specification and 
writing the required operating Process/Operating Procedure; 
Requirement R2: Quality monitoring logs and the data errors and 
corrective action logs; and Requirement R3: Alarm process monitor 
performance logs.
    \17\ The number of respondents is the number of entities in 
which a change in burden from the current standards to the proposed 
exists, not the total number of entities from the current or 
proposed standards that are applicable.
    \18\ The estimated hourly costs (salary plus benefits) are based 
on Bureau of Labor Statistics (BLS) information, as of May 2015 (at 
http://www.bls.gov/oes/current/naics2_22.htm, with updated benefits 
information for March 2016 at http://www.bls.gov/news.release/ecec.nr0.htm), for an electrical engineer (code 17-2071, $64.20/
hour), and for information and record clerks record keeper (code 43-
4199, $37.69/hour). The hourly figure for engineers is used for 
reporting; the hourly figure for information and record clerks is 
used for document retention.
    \19\ The following Requirements and associated measures apply to 
balancing authorities: Requirement R1: A revised data specification 
and writing the required operating process/operating procedure; and 
Requirement R2: Quality monitoring logs and the data errors and 
corrective action logs.
    \20\ The following Requirements and associated measures apply to 
transmission operators: Requirement R1: A revised data specification 
and writing the required operating process/operating procedure; and 
Requirement R3: Alarm process monitor performance logs to maintain 
performance logs and corrective action plans.
---------------------------------------------------------------------------

    Title: FERC-725Z (Mandatory Reliability Standards: IRO Reliability 
Standards) and FERC-725A (Mandatory Reliability Standards for the Bulk-
Power System).
    Action: Proposed revisions to existing information collections.
    OMB Control No: 1902-0276 (FERC-725Z); 1902-0244 (FERC-725A).
    Respondents: Businesses or other for-profit institutions; not-for-
profit institutions.
    Frequency of Responses: One-time implementation and ongoing.
    Necessity of the Information: Reliability Standards IRO-018-1 and 
TOP-010-1 enhance reliability by adopting better real-time tools for 
reliability coordinators, transmission operators, and balancing 
authorities and also establish requirements for real-time monitoring 
and analysis capabilities to support reliable system operations.
    30. Interested persons may obtain information on the reporting 
requirements by contacting: 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].

V. Effective Date

    31. This order will become effective upon issuance.
    The Commission orders:
    (A) Reliability Standards IRO-018-1 and TOP-010-1 are hereby 
approved, as discussed in the body of this order.
    (B) NERC is hereby directed to submit a compliance filing within 60 
days of the date of this order designating the violation risk factors 
for Requirement R1 of Reliability Standard IRO-018-1 and Requirements 
R1 and R2 of Reliability Standard TOP-010-1 as ``high,'' as discussed 
in the body of this order.

    By the Commission.

    Issued: September 22, 2016.
Kimberly D. Bose,
Secretary.
[FR Doc. 2016-23519 Filed 9-28-16; 8:45 am]
 BILLING CODE 6717-01-P