WECC Regional Reliability Standard BAL-002-WECC-3 (Contingency Reserve), 22588-22596 [2021-08571]
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WECC Regional Reliability Standard
BAL–002–WECC–3 (Contingency
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DEPARTMENT OF ENERGY
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Federal Energy Regulatory
Commission.
ACTION: Final action.
The Federal Energy
Regulatory Commission (Commission)
approves regional Reliability Standard
BAL–002–WECC–3 (Contingency
Reserve) submitted jointly by the North
American Electric Reliability
Corporation (NERC), the Commissioncertified Electric Reliability
Organization, and the Western
Electricity Coordinating Council
(WECC). In addition, the Commission
directs NERC and WECC to submit an
informational filing.
DATES: This final action is effective June
28, 2021.
FOR FURTHER INFORMATION CONTACT:
Susan Morris (Technical Information),
Office of Electric Reliability, Division of
Operations and Planning Standards,
Federal Energy Regulatory Commission,
888 First Street NE, Washington, DC
20426, Telephone: (202) 502–6803,
Susan.Morris@ferc.gov.
Syed Ahmad (Technical Information),
Office of Electric Reliability, Division of
Operations and Planning Standards,
Federal Energy Regulatory Commission,
888 First Street NE, Washington, DC
20426, Telephone: (202) 502–8718,
Syed.Ahmad@ferc.gov.
Mark Bennett (Legal Information),
Office of the General Counsel, Federal
Energy Regulatory Commission, 888
First Street NE, Washington, DC 20426,
Telephone: (202) 502–8524,
Mark.Bennett@ferc.gov.
SUPPLEMENTARY INFORMATION:
1. Pursuant to section 215(d)(2) of the
Federal Power Act (FPA), the
Commission approves regional
Reliability Standard BAL–002–WECC–3
(Contingency Reserve). The North
American Electric Reliability
Corporation (NERC), the Commissioncertified Electric Reliability
Organization (ERO), and Western
Electricity Coordinating Council
(WECC) jointly submitted the regional
Reliability Standard to the Commission
for approval. Additionally, as discussed
below, the Commission directs NERC
and WECC to submit an informational
SUMMARY:
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filing 30 months following
implementation of regional Reliability
Standard BAL–002–WECC–3.
2. Regional Reliability Standard BAL–
002–WECC–3 applies to balancing
authorities and reserve sharing groups
in the Western Interconnection, and it
specifies the quantity and types of
contingency reserves required to ensure
reliability under normal and abnormal
conditions.1 Regional Reliability
Standard BAL–002–WECC–3 eliminates
Requirement R2 from the prior version
because, as discussed in the joint
petition, the implementation of the
continent-wide Reliability Standard
BAL–003–1.1 (Frequency Response and
Frequency Bias Setting), Requirement
R1 makes Requirement R2 redundant.2
Based on Requirement R1 of the
continent-wide Reliability Standard
BAL–003–1.1 and the results of field
tests NERC and WECC conducted to
assess the potential impact of the
retirement of regional Reliability
Standard BAL–002–WECC–2a,
Requirement R2 on contingency
reserves in the Western Interconnection,
the Commission approves regional
Reliability Standard BAL–002–WECC–3
and the retirement of the currentlyeffective version of the regional
Reliability Standard.
3. In addition, as proposed in the
notice of proposed rulemaking (NOPR),
the Commission believes it is
appropriate to monitor the potential
impacts of retiring Requirement R2 to
ensure that this action does not
adversely impact the adequacy of
contingency reserves in the Western
Interconnection.3 Therefore, as
discussed below, the Commission
directs NERC and WECC to submit an
informational filing 30 months
following implementation of regional
Reliability Standard BAL–002–WECC–3
that addresses the adequacy of
contingency reserves in the Western
Interconnection.
I. Background
A. Section 215 and Regional Reliability
Standards
4. Section 215 of the FPA requires a
Commission-certified ERO to develop
1 Reserve sharing group is defined in the Glossary
of Terms Used in NERC Reliability Standards
(NERC Glossary) as, ‘‘[a] group whose members
consist of two or more Balancing Authorities that
collectively maintain, allocate, and supply
operating reserves required for each Balancing
Authority’s use in recovering from contingencies
within the group. . . .’’
2 Reliability Standard BAL–003–1.1, Requirement
R1 became effective on April 1, 2016.
3 WECC Regional Reliability Standard BAL–002–
WECC–3 (Contingency Reserve), Notice of Proposed
Rulemaking, 85 FR 68809 (Oct. 30, 2020), 173 FERC
¶ 61,032, at P 3 (2020) (NOPR).
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mandatory and enforceable Reliability
Standards that are subject to
Commission review and approval.4
Once approved, the Reliability
Standards may be enforced by NERC,
subject to Commission oversight, or by
the Commission independently.5
5. A Regional Entity may develop a
regional Reliability Standard for
Commission approval to be effective in
that region only.6 In Order No. 672, the
Commission stated that as a general
matter, we will accept the following two
types of regional differences, provided
they are otherwise just, reasonable, not
unduly discriminatory or preferential
and in the public interest, as required
under the statute: (1) A regional
difference that is more stringent than
the continent-wide Reliability Standard,
including a regional difference that
addresses matters that the continentwide Reliability Standard does not; and
(2) a regional Reliability Standard that is
necessitated by a physical difference in
the Bulk-Power System.7
While a Regional Entity may propose
regional Reliability Standards that
address specific, unique regional
conditions and circumstances, such
regional Reliability Standards can be
retired if those justifications are no
longer relevant. Accordingly, the
Commission may approve retirement of
a more stringent regional requirement
‘‘if the Regional Entity demonstrates
that the continent-wide Reliability
Standard is sufficient to ensure the
reliability of that region.’’ 8
B. Regional Reliability Standard BAL–
002–WECC–2
6. On November 21, 2013, the
Commission approved regional
Reliability Standard BAL–002–WECC–2,
specifying the quantity and types of
contingency reserve required to ensure
reliability under normal and abnormal
4 16
U.S.C. 824o.
U.S.C. 824o(e).
6 16 U.S.C. 824o(e)(4). A Regional Entity is an
entity that has been approved by the Commission
to enforce Reliability Standards under delegated
authority from the ERO. See 16 U.S.C. 824o(a)(7)
and (e)(4). On April 19, 2007, the Commission
accepted delegation agreements between NERC and
eight Regional Entities, including WECC. North
American Electric Reliability Corp., 119 FERC
¶ 61,060, order on reh’g, 120 FERC ¶ 61,260 (2007).
7 Rules Concerning Certification of the Electric
Reliability Organization; and Procedures for the
Establishment, Approval and Enforcement of
Electric Reliability Standards, Order No. 672, 71 FR
8662 (Feb. 17, 2006), 114 FERC ¶ 61,104, at P 291,
order on reh’g, Order No. 672–A, 71 FR 19814
(April 18, 2006), 114 FERC ¶ 61,328 (2006).
8 Version One Regional Reliability Standard for
Resource and Demand Balancing, Order No. 740, 75
FR 65964 (Oct. 27, 2010), 133 FERC ¶ 61,063, P 30
(2010).
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conditions.9 Regional Reliability
Standard BAL–002–WECC–2 is more
stringent than continent-wide
Reliability Standard BAL–002–1
because the regional Reliability
Standard requires applicable entities to
restore contingency reserve within 60
minutes following an event requiring
the activation of contingency reserve, 30
minutes less than the 90 minutes
allowed by the continent-wide
Reliability Standard.10 In addition, the
method for calculating minimum
contingency reserve in the regional
Reliability Standard is more stringent
than Requirement R3.1 in Reliability
Standard BAL–002–1, because it
requires minimum contingency reserve
levels that will be at least equal to the
Reliability Standard minimum (i.e.,
equal to the most severe single
contingency) and more often will be
greater.11
C. Reliability Standard BAL–003–1
7. Reliability Standard BAL–003–1
(Frequency Response and Frequency
Bias Setting) addressed Commission
directives, during the approval of
Reliability Standard BAL–003–0
(Frequency Response and Bias), issued
in Order No. 693.12 The Commission
directed NERC to modify Reliability
Standard BAL–003–0 to ‘‘define[ ] the
necessary amount of Frequency
Response needed for Reliable Operation
of each balancing authority with
methods of obtaining and measuring
that the frequency response is
achieved.’’ 13 On January 16, 2014, the
Commission approved continent-wide
Reliability Standard BAL–003–1.14 The
9 Regional Reliability Standard BAL–002–WECC–
2, Order No. 789, 145 FERC ¶ 61,141 (2013). On
January 24, 2017, by delegated letter order, the
Commission approved regional Reliability Standard
BAL–002–WECC–2a, which added an interpretation
to Requirement R2. North American Electric
Reliability Corporation, Docket. No. RD17–3–000
(Jan. 24, 2017) (delegated order).
10 Reliability Standard BAL–002–3, approved on
September 25, 2018, is the current version of the
continent-wide Reliability Standard. North
American Electric Reliability Corp., Docket No.
RD18–7–000 (Sep. 25, 2018) (delegated letter order).
11 Order No. 789, 145 FERC ¶ 61,141 at P 26.
12 Mandatory Reliability Standards for the BulkPower System, Order No. 693, 72 FR 16416 (April
4, 2007), 118 FERC 61,218, order on reh’g, Order
No. 693–A, 120 FERC ¶ 61,053, at P 375 (2007).
13 Id.
14 Frequency Response and Frequency Bias
Setting Reliability Standard, Order No. 794, 79 FR
3723 (Jan. 23, 2014), 146 FERC ¶ 61,024 (2014).
Reliability Standard BAL–003–1.1 was
subsequently approved by delegated letter order on
November 13, 2015 and contained non-substantive
changes over the prior version, Reliability Standard
BAL–003–1. North American Electric Reliability
Corp., Docket No. RD15–6–000 (Nov. 13, 2015)
(delegated order). Reliability Standard BAL–003–2
was approved by delegated order on July 15, 2020
with modifications in Attachment A (BAL–003–2
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Commission explained that Reliability
Standard BAL–003–1 defines the
amount of frequency response needed
from balancing authorities to maintain
Interconnection frequency within
predefined bounds, and includes
requirements for the measurement and
provision of frequency response. In
particular, Order No. 794 determined
that Reliability Standard BAL–003–1
‘‘establishes a minimum Frequency
Response Obligation for each balancing
authority; provides a uniform
calculation of frequency response;
establishes Frequency Bias Settings that
are closer to actual balancing authority
frequency response; and encourages
coordinated automatic generation
control operation.’’ 15
D. NERC and WECC Joint Petition
8. On September 6, 2019, NERC and
WECC submitted a joint petition seeking
approval of proposed regional
Reliability Standard BAL–002–WECC–3,
the associated violation risk factors and
violation severity levels, effective date,
and implementation plan.16 The joint
petition also requests retirement of the
currently-effective regional Reliability
Standard BAL–002–WECC–2a.
9. In the joint petition, NERC and
WECC explain that the principal
modification in the proposed regional
Reliability Standard is the retirement of
Requirement R2 in currently-effective
regional Reliability Standard BAL–002–
WECC–2a. Requirement R2 provides
that balancing authorities and reserve
sharing groups in the WECC Region
‘‘shall maintain at least half of its
minimum amount of Contingency
Reserve identified in Requirement R1,
as Operating Reserve—Spinning.’’ NERC
and WECC maintain that the 50 percent
minimum contingency reserve amount
was carried forward from the Reliability
Management System of WECC’s
predecessor, the Western Systems
Coordinating Council, and is no longer
relevant.
10. NERC and WECC contend that
continent-wide Reliability Standard
BAL–003–1.1 ‘‘helps ensure that
sufficient Frequency Response is
Frequency Response and Frequency Bias Setting
Standard Supporting Document), which addresses
the establishment of the Interconnection frequency
response obligation. The requirements in Reliability
Standard BAL–003–2 are identical to the previous
version, Reliability Standard BAL–003–1.1. North
American Electric Reliability Corp., Docket No.
RD20–9–000 (Jul. 15, 2020) (delegated order).
15 Order No. 794, 146 FERC ¶ 61,024 at P 22.
16 Regional Reliability Standard BAL–002–
WECC–3 is not attached to this final action. The
regional Reliability Standard is available on the
Commission’s eLibrary document retrieval system
in the identified docket and on the NERC website,
www.nerc.com.
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provided to maintain Interconnection
frequency in support of the reliable
operation of the Interconnection,’’ and
therefore renders regional Reliability
Standard BAL–002–WECC–2a,
Requirement R2 ‘‘redundant and no
longer needed for reliability in the
Western Interconnection.’’ 17 NERC and
WECC assert that Reliability Standard
BAL–003–1.1 ‘‘addresses the same
frequency response components covered
in currently effective Regional
Reliability Standard BAL–002–WECC–
2a Requirement R2 but in a resultsbased manner.’’ 18
11. In particular, NERC and WECC
state that Reliability Standard BAL–
003–1.1, Requirement R1 requires that
balancing authorities (or groups of
balancing authorities known as
frequency response sharing groups)
‘‘achieve an annual Frequency Response
Measure that is equal to or more
negative than its Frequency Response
Obligation to ensure that it is providing
sufficient Frequency Response.’’ 19
Moreover, NERC and WECC explain that
retention of the regional minimum
operating reserve—spinning
requirement, alongside the continentwide frequency response requirement,
could lead to confusion and the
procurement of more spinning reserves
than necessary for entities to meet their
frequency response obligation, thereby
increasing costs without providing
additional reliability benefits.20
12. NERC and WECC also state that to
evaluate the potential reliability impacts
of retiring Requirement R2, WECC
conducted a field test from May 1, 2017
through April 30, 2018, obtaining data
from each balancing authority and each
reserve sharing group. 21 NERC and
WECC explain that the field test
measured the effect of retiring
Requirement R2 using two metrics:
Disturbance control standard (DCS)
performance and frequency response in
the Western Interconnection.22 The first
metric measured, for each reportable
DCS event,23 whether an entity was
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17 Joint
Petition at 4.
18 Id. at 13.
19 Id at 4.
20 Id. at 12–13.
21 Id. at 13. A report containing the results of the
field test is appended to the joint petition as Exhibit
C. Joint Petition, Exhibit C (Field Test Results,
WECC–0115 BAL–002–WECC–2a Request to Retire
Requirement R2).
22 Disturbance control standard is defined in the
NERC Glossary as, ‘‘[t]he reliability standard that
sets the time limit following a Disturbance within
which a Balancing Authority must return its Area
Control Error to within a specified range.’’ See also
Joint Petition, Exhibit C at 5.
23 We understand the reference to ‘‘reportable
DCS event’’ in the joint petition corresponds to the
NERC Glossary term ‘‘Reportable Balancing
Contingency Event’’ that appears in Reliability
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unable to meet the contingency event
recovery period. The second metric
monitored system performance for any
loss of resources greater than 700 MW
and for any adverse effects on frequency
response.24
13. NERC and WECC assert that
‘‘analysis of the data demonstrates that
all 66 DCS events occurring during the
field test period had a 100 percent pass
rate, showing no degradation to DCS
performance. Entities carried and
deployed enough reserves for post
disturbance Area Control Area
recovery.’’ 25 NERC and WECC also note
that the 2018 NERC State of Reliability
Report indicates that frequency
response performance ‘‘did not degrade
in the Western Interconnection during
the field test period.’’ 26
14. Notwithstanding the elimination
of Requirement R2, NERC and WECC
assert that proposed regional Reliability
Standard BAL–002–WECC–3 retains the
other existing requirements because
they are needed to maintain reliability
and ‘‘continue[ ] to represent a more
stringent set of requirements for entities
in the Western Interconnection than
those found in the continent-wide
disturbance control standard, Reliability
Standard BAL–002–3.’’ 27
15. To supplement the field test data
provided in the joint petition, on
February 18, 2020, the Director of the
Office of Electric Reliability issued a
data request to NERC and WECC
seeking: (1) Data for the remainder of
the field test term not provided in the
joint petition (i.e., from May 1, 2018 to
September 30, 2019); and (2) supporting
data for NERC’s frequency response
metric (Metric M–4) pertaining to the
Western Interconnection during the
field test period (i.e., from May 1, 2017
to September 30, 2019). In addition,
NERC and WECC were asked to provide
the amount of spinning reserve above or
below 50 percent during non-event
times on an hourly basis from the
Standard BAL–002–3. The NERC Glossary defines
Reportable Balancing Contingency Event as: ‘‘[a]ny
Balancing Contingency Event occurring within a
one-minute interval of an initial sudden decline in
ACE based on EMS scan rate data that results in a
loss of MW output less than or equal to the Most
Severe Single Contingency, and greater than or
equal to the lesser amount of: (i) 80% of the Most
Severe Single Contingency, or (ii) the amount listed
below for the applicable Interconnection. Prior to
any given calendar quarter, the 80% threshold may
be reduced by the responsible entity upon written
notification to the Regional Entity. (Eastern
Interconnection—900 MW, Western
Interconnection—500 MW, ERCOT—800 MW, and
Quebec—500 MW).’’
24 Joint Petition at 13–14.
25 Id. at 14.
26 Id. at 15.
27 Id. at 10.
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beginning of the field test period (May
1, 2017) through September 30, 2019.28
16. On May 18, 2020, NERC and
WECC submitted data in response to the
February 18 data request, indicating
results that were generally consistent
with the results presented in the field
test report. The additional data provided
a complete record for the joint petition.
E. Notice of Proposed Rulemaking
17. On October 30, 2020, the
Commission issued a NOPR proposing
to approve regional Reliability Standard
BAL–002–WECC–3 as just, reasonable,
not unduly discriminatory or
preferential, and in the public interest.29
In addition, the Commission proposed
to direct NERC and WECC to submit an
informational filing 27 months
following implementation of the
proposed regional Reliability Standard,
stating that it is ‘‘appropriate in this
case to monitor the potential impacts of
retiring Requirement R2 on the
adequacy of contingency reserves in the
Western Interconnection.’’ 30 The
proposed informational filing would
require NERC and WECC to provide an
analysis of 24 months of data pertaining
to the amount and deliverability of
contingency reserves following
implementation of the proposed
regional Reliability Standard to monitor
the potential reliability impacts of
retiring Requirement R2 on the
adequacy of contingency reserves in the
Western Interconnection.
18. In response to the NOPR, the
Commission received four sets of
comments from NERC and WECC,
jointly; Northwest Power Pool Reserve
Sharing Group (NWPP RSG); Bonneville
Power Administration (BPA); and
Southwest Reserve Sharing Group
(SRSG). All commenters support the
approval of regional Reliability
Standard BAL–002–WECC–3. In
addition, all commenters raise issues
regarding the timing and need for an
informational filing, and whether data
from individual balancing authorities,
as opposed to aggregated data from the
reserve sharing group they participate
in, is necessary. We address below the
issues raised by commenters.
28 According to Measure M2, ‘‘Each Balancing
Authority and each Reserve Sharing Group will
have dated documentation that demonstrates it
maintained at least half of the Contingency Reserve
identified in Requirement R1 as Operating
Reserve—Spinning, averaged over each Clock Hour,
that met both of the reserve characteristics
identified in Requirement R2, Part 2.1 and
Requirement R2, Part 2.2.’’
29 WECC Regional Reliability Standard BAL–002–
WECC–3 (Contingency Reserve), NOPR, 173 FERC
¶ 61,032.
30 Id. at P 3.
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II. Discussion
19. Pursuant to FPA section 215(d)(2),
the Commission approves WECC
regional Reliability Standard BAL–002–
WECC–3 as just, reasonable, not unduly
discriminatory or preferential, and in
the public interest. For applicable
entities in the Western Interconnection,
regional Reliability Standard BAL–002–
WECC–3 eliminates the requirement in
the currently-effective version that at
least half of the minimum amount of
contingency reserve shall be Operating
Reserve—Spinning that meets certain
reserve characteristics. The justification
set forth in the joint petition combined
with the field test results support NERC
and WECC’s contention that the
continent-wide Reliability Standard
BAL–003–1.1 renders the existing 50
percent Operating Reserve—Spinning
obligation redundant. Additionally,
regional Reliability Standard BAL–002–
WECC–3, even without Requirement R2,
will continue to provide protections
beyond those contained in the
continent-wide disturbance control
Reliability Standard BAL–002–3.
20. We discuss below the following
issues raised by commenters: (A) The
need for an informational filing; (B) an
extension of time to submit the
informational filing; and (C) submission
of individual balancing authority data.
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A. Need for Informational Filing
1. NOPR
21. In the NOPR, the Commission
proposed to direct NERC and WECC to
submit an informational filing following
the implementation of regional
Reliability Standard BAL–002–WECC–3.
The NOPR proposed that the
informational filing contain for a 24month period after implementation of
the regional Reliability Standard the
following categories of data: (1) For any
reportable balancing contingency event,
the date, time and required amount of
contingency reserves at the time of the
event, the actual amount of Operating
Reserves—Spinning at the time of the
event, and the actual DCS performance;
(2) for events involving a loss of 700
MW or greater, whether it is a reportable
balancing contingency event or not, the
date and time of the event, the name of
the resource(s), and the total MW; (3)
the amount of spinning reserve above or
below 50 percent during non-event
times on an hourly basis for twenty-four
months following implementation; and
(4) supporting data for NERC’s
frequency response metric (Metric M–4)
as it pertains to the Western
Interconnection. The NOPR indicated
that the informational filing was
necessary to monitor the reliability
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impacts that the retirement of regional
Reliability Standard BAL–002–WECC–
2a, Requirement R2 may have on
contingency reserves in the Western
Interconnection.
22. In addition to the data categories
identified above, the NOPR proposed
that NERC and WECC provide: (1) The
DCS performance—as described in
request (1) in the paragraph above—on
an individual balancing authority basis;
and (2) the hourly amount of
contingency reserve and the fraction of
that contingency reserve that is
classified as spinning for each hour by
balancing authority (not reserve sharing
group).31 The NOPR stated that this data
is necessary to assess the amount of
contingency reserves held by each
balancing authority within a reserve
sharing group, because the contingency
reserve data provided for a reserve
sharing group are the aggregated sum of
the contingency reserves of the
participating balancing authorities.
2. Comments
23. SRSG supports requiring an
informational filing, and NERC/WECC
do not oppose an informational filing.
BPA and NWPP RSG, however,
maintain that the proposed
informational filing is not necessary to
understand the impacts of retiring
Requirement R2. BPA and NWPP RSG
contend that WECC has ‘‘provided
similar data to the Commission for the
past two years . . . [and] the data
already submitted shows that BAL–002–
WECC–3 will not have adverse effects
on Contingency Reserves in the Western
Interconnection.’’ 32
3. Commission Determination
24. As explained in the NOPR, it is
important to monitor the reliability
impacts that the retirement of
Requirement R2 may have on
contingency reserves in the Western
Interconnection.33 We agree that the
data already provided to the
Commission supports the retirement of
Requirement R2 from the currentlyeffective Reliability Standard. However,
we believe that a post-implementation
informational filing is a prudent
measure to confirm that the retirement
of Requirement R2 from the existing
31 As clarified in the discussion below, member
balancing authorities should report for those events
that meet the Reportable Balancing Contingency
Event threshold for their respective reserve sharing
groups. In addition, the contingency event recovery
data can specify individual member balancing
authority contingency reserve data plus
contingency reserves from the reserve sharing
group, if any.
32 BPA Comments at 2; see also NWPP RSG
Comments at 3.
33 NOPR, 173 FERC ¶ 61,032 at P 19.
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regional Reliability Standard has not
resulted in any unexpected, adverse
impacts on contingency reserves.34
B. Extension of Time To Submit
Informational Filing
1. NOPR
25. In the NOPR, the Commission
proposed to direct NERC and WECC to
submit the informational filing 27
months following implementation of
regional Reliability Standard BAL–002–
WECC–3.
2. Comments
26. NERC and WECC contend that the
27-month deadline proposed in the
NOPR is insufficient because it provides
NERC and WECC with only three
months to analyze the 24 months of data
before submitting the informational
filing. Therefore, NERC and WECC seek
an additional three months, or a 30month deadline for submission of the
informational filing. NERC and WECC
reiterate that they would, under any
circumstances, promptly make the
Commission aware of any adverse
impacts resulting from the retirement of
Requirement R2 prior to submission.
3. Commission Determination
27. Based on NERC and WECC’s
concern that the 27-month deadline
proposed in the NOPR provides them
with only three months to analyze the
data and submit the informational filing,
we will extend the deadline for
submission of the informational filing
by an additional three months.
Accordingly, we direct NERC and
WECC to submit the informational filing
30 months following implementation of
regional Reliability Standard BAL–002–
WECC–3.
C. Submission of Individual Balancing
Authority Data
1. NOPR
28. As described above, the NOPR
proposed that NERC and WECC provide
certain data on a balancing authority
level in the informational filing.
34 See Real Power Balancing Control Performance
Reliability Standard, Order No. 810, 80 FR 22395
(Apr. 22, 2015), 151 FERC ¶ 61,048, at P 20 (2015)
(directing an informational filing to assess the
impact of implementing Reliability Standard BAL–
001–2); see also Order No. 794, 146 FERC ¶ 61,024
at P 60 (directing entities to report on resources
available to each balancing authority and Frequency
Response Sharing Group to meet its Frequency
Response Obligation because the ‘‘new
methodology for determining the Frequency
Response Obligation and the results when applied
are not yet known . . . [and] the ability of balancing
authorities and Frequency Response Sharing
Groups to meet the obligation is untested.’’).
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2. Comments
29. All four commenters raise
concerns with the NOPR’s proposal to
require certain data to be submitted by
individual balancing authority. NERC
and WECC caution that analyzing data
on a balancing authority basis ‘‘may not
present a complete and accurate picture
of conditions in the Western
Interconnection.’’ 35 NERC and WECC
explain that a U.S.-based balancing
authority ‘‘may, through a Reserve
Sharing Group, rely on spinning
reserves carried by a Balancing
Authority that is located outside the
United States . . . [thus] NERC and
WECC may only be able to provide U.S.
Balancing Authority information and
Reserve Sharing Group information that
represents only the U.S. portion of the
Reserve Sharing Group.’’ 36
30. SRSG asserts that reserve sharing
group data provides ‘‘sufficient
information to address adequacy of
contingency reserves and the impact of
the retirement of R2 on reliability,
particularly when coupled with an
analysis of BAL–003 and M4 events.’’ 37
BPA adds that reporting by reserve
sharing group ‘‘ensures that the
Commission receives an accurate
depiction of the adequacy of
Contingency Reserves for the Western
Interconnection.’’ 38 BPA states that
‘‘[r]equiring data on an individual
Balancing Authority level may skew the
data, as each Balancing Authority may
appear deficient, even though the
Reserve Sharing Group met its
obligation to provide Contingency
Reserves to its members.’’ 39 BPA also
contends that reporting data at the
balancing authority level would impose
an additional burden without any
corresponding benefit.
31. In response to the NOPR’s
concerns regarding deliverability of
contingency reserves in the Western
Interconnection, NWPP RSG states that
it addresses deliverability of
contingency reserves among its
participants through a well-documented
operating process, the Northwest Power
Pool Reserve Sharing Program
Documentation. According to NWPP
RSG, the program addresses how
balancing authority members can access
contingency reserves through an
automated Reserve Sharing Computer
System that has direct communication
to their data and related deployment
signals between the computer system
and each participating balancing
35 NERC
authority. The program defines eight
reserve sharing zones in the NWPP RSG
area, assigning each a contingency
reserve obligation based on constrained
inter-zone transmission facilities. When
a participating balancing authority is
separated from the remaining balancing
authorities due to constrained
transmission facilities, the effect of the
constraint is reflected in the
establishment of each reserve sharing
zone’s contingency reserve obligation.40
32. NWPP RSG contends that the
price spike event in March 2019,
referenced in the NOPR, did not cause
any contingency reserve issues and
there was no deliverability issue related
to hydroelectric resources. Further,
NWPP RSG states that since the
inception of the NWPP reserve sharing
program in 2001 and the beginning of
mandatory compliance related to the
disturbance contingency recovery
period in 2007, the NWPP RSG has
never failed in event recovery.41
33. In addition, NWPP RSG and BPA
maintain that the request for
information by balancing authority is
inconsistent with regional Reliability
Standard BAL–002–WECC–3, because
balancing authorities are not required to
meet DCS recovery or carry contingency
reserves. Rather, NWPP RSG states that
it has an obligation to meet DCS
recovery from a balancing contingency
event among its participants under
Reliability Standard BAL–002–3.
Further, NWPP RSG asserts that
balancing authority and reserve sharing
group area control error (ACE)
measurements differ and, therefore,
relying on balancing authority ACE to
assess reliability could be misleading.
Accordingly, NWPP RSG states that the
Commission should clarify the
Contingency Event Recovery Period
reported by the balancing authority
should use the reserve sharing group’s
ACE values.42
34. NWPP RSG also asserts that,
because the NERC definition of a
Reportable Balancing Contingency
Event applies to the responsible entity
(the reserve sharing group under
Reliability Standard BAL–002–WECC–
3), balancing authority members of a
reserve sharing group are not the
responsible entity. Therefore, each
balancing authority should only report
for those events that meet the
Reportable Balancing Contingency
Event threshold for its reserve sharing
group.43
Comments at 5.
36 Id.
40 NWPP
37 SRSG
41 Id.
RSG Comments at 1–2.
at 2.
42 Id. at 3.
43 Id.
Comments at 1.
38 BPA Comments at 3.
39 Id.
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3. Commission Determination
35. We adopt the NOPR proposal for
NERC and WECC to include certain
balancing authority-level data in their
informational filing. As explained
below, we are not persuaded by the
comments that oppose the Commission
obtaining balancing authority-level data.
36. As explained in the NOPR,
obtaining balancing authority-level data
will provide the Commission with an
understanding of the amount of
contingency reserves held by each
balancing authority within a reserve
sharing group. Although commenters
raise concerns that the Commission may
misuse or misinterpret the balancing
authority-level data, we clarify that the
Commission has not proposed and does
not intend to use such data for any
purpose other than to better understand
how contingency reserves are
apportioned within reserve sharing
groups. The Commission has not
proposed and does not intend, for
example, to use such data for any
compliance purpose or to direct the
development of new or modified
Reliability Standards.
37. Similarly, we do not agree with
the concern that the Commission could
misinterpret or draw the wrong
conclusions from balancing authoritylevel data for purposes outside of
compliance or development of
Reliability Standards. We fully
understand that contingency reserves
are not equally apportioned within
reserve sharing groups, and any
conclusions drawn from the
informational filing will also consider
relevant reserve sharing group data and
any analysis of such data that may be
provided by NERC and WECC. To be
clear, we do not intend to base our
understanding of contingency reserves
in the Western Interconnection solely,
or even primarily, on balancing
authority-level data. Moreover, to
address NERC and WECC’s concern that
reporting on United States-based
balancing authorities could present an
incomplete picture by excluding
Canadian balancing authorities, we
clarify that NERC and WECC can
identify and explain in the
informational filing any discrepancies
in the data resulting from some reserve
sharing group member balancing
authorities being located outside the
United States.
38. To address certain questions
raised in the comments, we clarify
certain aspects of the balancing
authority-portion of the informational
filing directed in this final action. First,
we clarify that the member balancing
authority data portion of the data
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request should be based on each
member balancing authority’s obligation
as a member of its reserve sharing
group. This is in keeping with our
statement that the Commission intends
to examine and compare both member
balancing authority and reserve sharing
group data. Second, for each balancing
authority, NERC and WECC should only
report for those events that meet the
Reportable Balancing Contingency
Event threshold for their respective
reserve sharing groups, as suggested by
NWPP RSG. The contingency event
recovery data can specify individual
member balancing authority
contingency reserve data plus
contingency reserves from the reserve
sharing group, if any.
39. Accordingly, we adopt the NOPR
proposal and direct NERC and WECC to
submit an informational filing 30
months following implementation of
regional Reliability Standard BAL–002–
WECC–3 containing a report that
addresses the adequacy of contingency
reserves in the Western Interconnection.
We further accept NERC and WECC’s
plan to make the Commission
immediately aware of any adverse
impacts resulting from the retirement of
Requirement R2, if they become
apparent prior to the end of the
reporting period, and any corrective
actions taken or being considered.
III. Information Collection Statement
40. The FERC–725E information
collection requirements contained in
this final action are subject to review by
the Office of Management and Budget
(OMB) under section 3507(d) of the
Paperwork Reduction Act of 1995
(PRA).44 OMB’s regulations require
approval of certain information
collection requirements imposed by
agency rules.45 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.
41. In the NOPR, the Commission
solicited comments on the
Commission’s 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
44 44
45 5
U.S.C. 3507(d).
CFR 1320.11.
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information techniques. Specifically,
the Commission asked that any revised
burden or cost estimates submitted by
commenters be supported by sufficient
detail to understand how the estimates
are generated. The Commission did not
receive any comments regarding the
Commission’s burden estimates.
42. The Commission approves
regional Reliability Standard BAL–002–
WECC–3 (Contingency Reserve), which
replaces currently-effective regional
Reliability Standard BAL–002–WECC–
2a. The principal difference between
currently-effective regional Reliability
Standard BAL–002–WECC–2a and
BAL–002–WECC–3 is the elimination of
Requirement R2 from the currentlyeffective version.
43. Public Reporting Burden: The
burden and cost estimates below are
based on the need for applicable entities
to revise documentation, already
required by the current WECC regional
Reliability Standard BAL–002–WECC–
2a,46 to reflect the retirement of
Requirement R2 in WECC regional
Reliability Standard BAL–002–WECC–3.
Our estimates are based on the NERC
Compliance Registry as of September 3,
2020, which indicates that 34 balancing
authorities, 2 reserve sharing groups, 2
reliability coordinators, 265 generator
owners, 256 generator operators, 78
transmission owners and 47
transmission operators are registered
within WECC.
44. In addition to the changes
identified in this final action, the
Commission is adjusting burden
estimates for the other WECC regional
Reliability Standards in the FERC–725E
information collection. These
adjustments are warranted based on
updates to the number of applicable
registered entities that have changed
due to normal industry fluctuations
(e.g., companies merging or splitting,
going into or leaving the industry, or
filling more or fewer roles in the NERC
Compliance Registry).
45. There are several regional
Reliability Standards in the WECC
region. These regional Reliability
Standards generally require entities to
document compliance with substantive
46 BAL–002–WECC–2 is included in the OMBapproved inventory for FERC–725E. On November
9, 2016, NERC and WECC submitted a joint petition
for approval of an interpretation of BAL–002–
WECC–2, to be designated BAL–002–WECC–2a.
BAL–002–WECC–2a was approved by order in
Docket No. RD17–3–000 on January 24, 2017. The
Order determined: ‘‘The proposed interpretation
provides clarification regarding the types of
resources that may be used to satisfy Contingency
Reserve requirements in regional Reliability
Standard BAL–002–WECC–2.’’ BAL–002–WECC–2a
did not trigger the Paperwork Reduction Act and
did not affect the burden estimate.
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22593
requirements, retain documentation,
and submit reports to WECC. The
following standards will be continuing
without change.
• BAL–004–WECC–3 (Automatic
Time Error Correction) requires
balancing authorities to document that
time error corrections and primary
inadvertent interchange payback were
conducted according to the
requirements in the standard.
• FAC–501–WECC–2 (Transmission
Maintenance) requires transmission
owners with certain transmission paths
to have a transmission maintenance and
inspection plan and to document
maintenance and inspection activities
according to the plan.
• VAR–501–WECC–3.1 (Power
System Stabilizer [PSS]) 47 requires
generator owners and operators to
ensure the Western Interconnection is
operated in a coordinated manner by
establishing the performance criteria for
WECC power system stabilizers.
46. The associated reporting and
recordkeeping requirements included in
the regional Reliability Standards above
are not being revised, and the
Commission will be submitting a
request to OMB to extend these
requirements for three years. The
Commission’s request to OMB will also
reflect the following:
• Implement the regional Reliability
Standard BAL–002–WECC–3 (addressed
in this final action, Docket No. RM19–
20), and
• Adjustments to the burden
estimates due to changes in the NERC
Compliance Registry for regional
Reliability Standards BAL–002–WECC–
3 (Contingency Reserve) and IRO–006–
WECC–3 (Qualified Path Unscheduled
Flow (USF) Relief).48
47 VAR–501–WECC–3.1 was approved by order in
Docket No. RD17–7–000 on September 26, 2017.
The August 18, 2017 petition requested
Commission approval of errata to mandatory and
enforceable regional Reliability VAR–501–WECC–3
(Power System Stabilizer). Because the reporting
burden for VAR–501–WECC–3.1 did not increase
for entities that operate within the Western
Interconnection, FERC submitted the order to OMB
for information only. The burden related to VAR–
501–WECC–3.1 does not differ from the burden of
VAR–501–WECC–3, which is included in the OMBapproved inventory. VAR–501–WECC–3.1 is being
included in this document and the Commission’s
submittal to OMB as part of FERC–725E.
48 IRO–006–WECC–3 was approved by order in
Docket No. RD19–4–000 on May 10, 2019. The
March 6, 2019 petition states that WECC revised the
regional Reliability Standard to clarify the purpose
statement, replace certain defined terms, account
for multiple reliability coordinators in the Western
Interconnection, and conform the regional
Reliability Standard to the current drafting
conventions and template. Because the reporting
burden for IRO–006–WECC–3 did not increase for
entities that operate within the Western
Interconnection, FERC submitted the order to OMB
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47. Changes Due to Docket No. RM19–
20. The Commission estimates the
reduction in the annual public reporting
burden for the FERC–725E (due to the
retirement of BAL–002–WECC–2a,
Requirement R2) as follows:
FERC–725E, MANDATORY RELIABILITY STANDARDS FOR THE WESTERN ELECTRIC COORDINATING COUNCIL, REDUCTIONS
DUE TO DOCKET NO. RM19–20
Number of
respondents
Annual number
of responses
per respondent
Total number
of responses
Average burden hours &
cost 49 per response
Total annual burden hours &
total annual cost
(1)
(2)
(1) * (2) = (3)
(4)
(3) * (4) = (5)
Balancing Authorities Years 1 and
....................
Balancing Authorities Year 3 and Ongoing ..............
0 (no change)
34 ...................
0 (no change)
1 .....................
0 (no change)
34 ...................
0 hrs.; $0 (no change) ....
1 hr.; $83.67 (reduction)
0 hrs.; $0 (no change).
34 hrs.; $2,844.78 (reduction).
Sub-Total, Reduction (Due to Docket No.
RM19–20) in Year 3 and Ongoing.
........................
........................
........................
.........................................
34 hrs.; $2,844.78 (reduction).
Information collection requirements and entity
2 50
48. Adjustments Due to normal
industry fluctuations. The Commission
estimates the changes in the annual
public reporting burden for the FERC–
725E (due to the number of applicable
registered entities) as follows: 51
FERC–725E, MANDATORY RELIABILITY STANDARDS FOR THE WESTERN ELECTRIC COORDINATING COUNCIL,
ADJUSTMENTS DUE TO NORMAL INDUSTRY FLUCTUATIONS
Number of
respondents
Annual number
of responses
per respondent
Total number
of responses
Average burden hours &
cost 49 per response
Total annual burden hours &
total annual cost
(1)
(2)
(1) * (2) = (3)
(4)
(3) * (4) = (5)
Reliability Coordinators (IRO–006–WECC–3) Reporting Requirement.
Reliability
Coordinators
(IRO–006–WECC–3)
Record Keeping Requirement.
Reserve Sharing Groups (BAL–002–WECC–3) Reporting Requirement.
1 (increase) ....
1 .....................
1 .....................
1 hr.; $83.67 (increase) ..
1 hr.; $83.67 (increase).
1 (increase) ....
1 .....................
1 .....................
1 hr.; $34.79 (increase) ..
1 hr.; $34.79 (increase).
1 (reduction) ...
1 .....................
1 .....................
1 hr.; $83.67 (reduction)
1 hr.; $83.67 (reduction).
Sub-Total, (Net Due to Adjustments) ................
........................
........................
........................
.........................................
1 hr.; $34.79 (net change).
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Information collection requirements and entity
49. Estimate of Continuing Annual
Burden for Renewal: 52 The Commission
estimates the annual public reporting
burden and cost as follows for FERC–
725E. (This information will be
submitted to OMB for approval.) These
estimates reflect:
• Reliability Standards in FERC–725E
which continue and remain unchanged
(BAL–004–WECC–3, FAC–501–WECC–
2, and VAR–002–WECC–3.1);
• Implement the regional Reliability
Standard BAL–002–WECC–3 (addressed
in this final action, Docket No. RM19–
20–000); and
• Adjustments to the burden
estimates for regional Reliability
Standards BAL–002–WECC–3
(Contingency Reserve) and IRO–006–
WECC–3 (Qualified Path Unscheduled
Flow (USF) Relief).
for information only. The burden related to IRO–
006–WECC–3 does not differ from the burden of
IRO–006–WECC–2, which is included in the OMBapproved inventory. IRO–006–WECC–3 is being
included in this document and the Commission’s
submittal to OMB as part of FERC–725E.
49 The hourly cost (for salary plus benefits) uses
the figures from the Bureau of Labor Statistics (BLS)
for three positions involved in the reporting and
recordkeeping requirements. These figures include
salary (based on BLS data for May 2019, https://
bls.gov/oes/current/naics2_22.htm) and benefits
(based on BLS data for December 2019; issued
March 19, 2020, https://www.bls.gov/news.release/
ecec.nr0.htm) and are Manager (Code 11–0000
$97.15/hour), Electrical Engineer (Code 17–2071
$70.19/hour), and File Clerk (Code 43–4071 $34.79/
hour). The hourly cost for the reporting
requirements ($83.67) is an average of the cost of
a manager and engineer. The hourly cost for
recordkeeping requirements uses the cost of a file
clerk.
50 The reduction in burden is zero for the first two
years due to the directive in this final action to
continue to report hourly contingency reserve data
for 24 months.
51 The number of applicable entities is based on
the NERC Compliance Registry as of September 3,
2020.
52 The Commission is also removing 1746 onetime burden hours associated with the requirements
in Docket No. RD17–5 for regional Reliability
Standard VAR–501–WECC–3 (Power System
Stabilizer [PSS]). The one-time burden has been
completed and will now be administratively
removed on submittal to OMB. Those hours are not
included in the table.
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FERC–725E, MANDATORY RELIABILITY STANDARDS FOR THE WESTERN ELECTRIC COORDINATING COUNCIL
[New and continuing information collection requirements]
Entity
Number of
respondents 53
Annual number
of responses
per respondent
Annual number
of responses
Average burden
hours & cost 49
per response
($)
Total annual
burden hours &
total annual cost
($)
Cost per
respondent
($)
(1)
(2)
(1) * (2) = (3)
(4)
(3) * (4) = (5)
(5) ÷ (1) = (6)
Reporting Requirements
Balancing Authorities Years 1 and
2 (BAL–002–WECC–3; BAL–
004–WECC–3;
IRO–006–
WECC–3).
Balancing Authorities Year 3 and
Ongoing (BAL–002–WECC–3;
BAL–004–WECC–3; IRO–006–
WECC–3).
Reserve Sharing Groups (BAL–
002–WECC–3).
Reliability Coordinators (IRO–
006–WECC–3).
Transmission Owners that operate
qualified transfer paths (FAC–
501–WECC–2).
Generator Owners and/or Operators (VAR–501–WECC–3.1).
Sub-Total for Reporting Requirements in Years 1 and
2.
Sub-Total for Reporting Requirements in Year 3 & ongoing.
34
1
34
21 hrs.;
$1,757.07.
714 hrs.;
$59,740.38.
1,757.07
34
1
34
20 hrs.;
$1,673.40.
680 hrs.;
$56,895.60.
1,673.40
2
1
2
1 hr.; $83.67 ......
2 hrs.; $167.34 ..
83.67
2
1
2
1 hr.; $83.67 ......
2 hrs.; $167.34 ..
83.67
5
1
5
40 hrs.;
$3,346.80.
200 hrs.;
$16,734.00.
3,346.80
291
2
582
1 hr.; $83.67 ......
582 hrs.;
$48,695.94.
167.34
........................
..........................
625
...........................
1,500 hrs.;
$125,505.00.
........................
........................
..........................
625
...........................
1,466 hrs.;
$122,660.22.
........................
Recordkeeping Requirements
Balancing Authorities (BAL–002–
WECC–3; BAL–004–WECC–3;
IRO–006–WECC–3).
Reliability Coordinator (IRO–006–
WECC–3).
Transmission Owners that operate
qualified transfer paths (FAC–
501–WECC–2).
Generator Owners and/or Operators (VAR–501–WECC–3.1).
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Sub-Total for Recordkeeping
Requirements.
Total for FERC–725E, in
YR. 1 and YR. 2.
Total for FERC–725E, in
YR. 3 & Ongoing.
34
1
34
3.1 hrs.; $107.85
105.4 hrs.;
$3,666.87.
2
1
2
1 hr.; $34.79 ......
2 hrs.; $69.58 ....
5
1
5
6 hrs.; $208.74 ..
30 hrs.;
$1043.70.
291
2
582
0.5 hrs.; $17.40
291 hrs.;
$10,123.89.
........................
..........................
623
...........................
........................
..........................
1248
...........................
........................
..........................
1248
...........................
428.4 hrs.;
$14,904.04.
1,928.4 hrs.;
$140,409.04.
1,894.4 hrs.;
$137,564.26.
50. Interested persons may obtain
information on the reporting
requirements by contacting Ellen
Brown, Office of the Executive Director,
Federal Energy Regulatory Commission,
888 First Street NE, Washington, DC
20426 via email (DataClearance@
ferc.gov) or telephone ((202) 502–8663).
51. The Commission solicits
comments on the Commission’s need for
this information, whether the
information will have practical utility,
the accuracy of the burden estimates,
53 The number of respondents is derived from the
NERC Compliance Registry as of September 3, 2020.
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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.
52. Please send comments concerning
the collection of information and the
associated burden estimates to: Office of
Information and Regulatory Affairs,
Office of Management and Budget, 725
17th Street NW, Washington, DC 20503
[Attention: Desk Officer for the Federal
Energy Regulatory Commission]. Due to
security concerns, comments should be
sent electronically to the following
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107.85
34.79
208.74
34.79
........................
........................
........................
email address: oira_submission@
omb.eop.gov. Comments submitted to
OMB should refer to OMB Control Nos.
1902–0246.
53. Please submit a copy of your
comments on the information
collections to the Commission via the
eFiling link on the Commission’s
website at https://www.ferc.gov. If you
are not able to file comments
electronically, please send a copy of
your comments to: Federal Energy
Regulatory Commission, Secretary of the
Commission, 888 First Street NE,
Washington, DC 20426. Comments on
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the information collection that are sent
to FERC should refer to RM19–20–000.
Title: FERC–725E, Mandatory
Reliability Standards-WECC (Western
Electric Coordinating Council).
Action: Three-year approval of the
FERC–725E information collection
requirements, as modified by Docket
No. RM19–20–000 and due to normal
industry fluctuations.
OMB Control No: 1902–0246 (FERC–
725E).
Respondents: Business or other forprofit, and not-for-profit institutions.
Frequency of Responses: One-time.
Necessity of the Information: The
regional Reliability Standard BAL–002–
WECC–3, 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 proposal ensures that
balancing authorities and reserve
sharing groups in the WECC Region
have the quantity and types of
contingency reserve required to ensure
reliability under normal and abnormal
conditions.
Internal review: The Commission has
reviewed regional Reliability Standard
BAL–002–WECC–3 and determined that
its action is necessary to implement
section 215 of the FPA. The
Commission has assured itself, by
means of its internal review, that there
is specific, objective support for the
burden estimates associated with the
information requirements.
IV. Environmental Analysis
jbell on DSKJLSW7X2PROD with RULES
54. 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.54 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.55 The
actions finalized here fall within this
categorical exclusion in the
Commission’s regulations.
54 Regulations Implementing the National
Environmental Policy Act of 1969, Order No. 486,
52 FR 47897 (Dec. 17, 1987), FERC Stats. & Regs.
¶ 30,783 (1987) (cross-referenced at 41 FERC
61,284).
55 18 CFR 380.4(a)(2)(ii).
VerDate Sep<11>2014
16:16 Apr 28, 2021
Jkt 253001
V. Regulatory Flexibility Act
55. The Regulatory Flexibility Act of
1980 (RFA) 56 generally requires a
description and analysis of rules that
will have significant economic impact
on a substantial number of small
entities. The Small Business
Administration’s (SBA) Office of Size
Standards develops the numerical
definition of a small entity.57 These
standards are provided in the SBA
regulations at 13 CFR 121.201.58
56. Under SBA’s size standards,59
balancing authorities, reserve sharing
groups, generator operators, generator
owners, transmission owners, and
transmission operators all fall under the
category of NAICS code 221111Hydroelectric Power Generation (500)
and NAICS code 221118-Other Electric
Power Generation (250), with a total size
threshold of 750 employees (including
the entity and its associates).60
57. This final action applies to
registered balancing authorities and
reserve sharing groups in the NERC
Compliance Registry with data
submitted to the Energy Information
Administration on Form EIA–861
indicating that, of the 36 entities, 34 are
registered balancing authorities and two
are reserve sharing groups, two may
qualify as small entities.61
58. Using the list from the NERC
Compliance Registry (dated September
3, 2020), we estimate that approximately
22% of those entities are small entities.
59. The Commission estimates that,
on average, each of the two affected
small entities will have no further
ongoing costs after year 3. These figures
are based on information collection
costs plus additional costs for
compliance.
60. The Commission does not
consider this to be a significant
economic impact for small entities
56 5
U.S.C. 601–612.
CFR 121.101.
58 13 CFR 121.201. See also U.S. Small Business
Administration, Table of Small Business Size
Standards Matched to North American Industry
Classification System Codes (effective Feb. 26,
2016), https://www.ecfr.gov/cgi-bin/textidx?SID=0ff5f0839abff4eec707b4478ed733c6&
mc=true&node=pt13.1.121&rgn=div5#se13.1.121_
1110.
59 13 CFR 121.201.
60 The threshold for the number of employees
indicates the maximum allowed for a concern and
its affiliates to be considered small.
61 The RFA definition of ‘‘small entity’’ refers to
the definition provided in the Small Business Act
(SBA), which defines a ‘‘small business concern’’ as
a business that is independently owned and
operated and that is not dominant in its field of
operation. See 15 U.S.C. 632 (2006). According to
the Small Business Administration, an electric
utility is defined as ‘‘small’’ if, including its
affiliates, the number of employees indicates the
maximum allowed for a concern and its affiliates
to be considered small.
57 13
PO 00000
Frm 00016
Fmt 4700
Sfmt 9990
because it should not represent a
significant percentage of the operating
budget. Accordingly, the Commission
certifies that this final action will not
have a significant economic impact on
a substantial number of small entities.
The Commission seeks comment on this
certification.
VI. Document Availability
61. 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). At this time, the
Commission has suspended access to
the Commission’s Public Reference
Room due to the President’s March 13,
2020 proclamation declaring a National
Emergency concerning the Novel
Coronavirus Disease (COVID–19).
62. 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.
63. User assistance is available for
eLibrary and the Commission’s website
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.
VII. Effective Date and Congressional
Notification
64. This final action is effective June
28, 2021. The Commission has
determined, with the concurrence of the
Administrator of the Office of
Information and Regulatory Affairs of
OMB, that this action is not a ‘‘major
rule’’ as defined in section 351 of the
Small Business Regulatory Enforcement
Fairness Act of 1996. This final action
is being submitted to the Senate, House,
and Government Accountability Office.
By direction of the Commission.
Issued: April 15, 2021.
Kimberly D. Bose,
Secretary.
[FR Doc. 2021–08571 Filed 4–28–21; 8:45 am]
BILLING CODE 6717–01–P
E:\FR\FM\29APR1.SGM
29APR1
]]>Agencies
[Federal Register Volume 86, Number 81 (Thursday, April 29, 2021)]
[Rules and Regulations]
[Pages 22588-22596]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-08571]
=======================================================================
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DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
18 CFR Part 40
[Docket No. RM19-20-000]
WECC Regional Reliability Standard BAL-002-WECC-3 (Contingency
Reserve)
AGENCY: Federal Energy Regulatory Commission.
ACTION: Final action.
-----------------------------------------------------------------------
SUMMARY: The Federal Energy Regulatory Commission (Commission) approves
regional Reliability Standard BAL-002-WECC-3 (Contingency Reserve)
submitted jointly by the North American Electric Reliability
Corporation (NERC), the Commission-certified Electric Reliability
Organization, and the Western Electricity Coordinating Council (WECC).
In addition, the Commission directs NERC and WECC to submit an
informational filing.
DATES: This final action is effective June 28, 2021.
FOR FURTHER INFORMATION CONTACT: Susan Morris (Technical Information),
Office of Electric Reliability, Division of Operations and Planning
Standards, Federal Energy Regulatory Commission, 888 First Street NE,
Washington, DC 20426, Telephone: (202) 502-6803, [email protected].
Syed Ahmad (Technical Information), Office of Electric Reliability,
Division of Operations and Planning Standards, Federal Energy
Regulatory Commission, 888 First Street NE, Washington, DC 20426,
Telephone: (202) 502-8718, [email protected].
Mark Bennett (Legal Information), Office of the General Counsel,
Federal Energy Regulatory Commission, 888 First Street NE, Washington,
DC 20426, Telephone: (202) 502-8524, [email protected].
SUPPLEMENTARY INFORMATION:
1. Pursuant to section 215(d)(2) of the Federal Power Act (FPA),
the Commission approves regional Reliability Standard BAL-002-WECC-3
(Contingency Reserve). The North American Electric Reliability
Corporation (NERC), the Commission-certified Electric Reliability
Organization (ERO), and Western Electricity Coordinating Council (WECC)
jointly submitted the regional Reliability Standard to the Commission
for approval. Additionally, as discussed below, the Commission directs
NERC and WECC to submit an informational filing 30 months following
implementation of regional Reliability Standard BAL-002-WECC-3.
2. Regional Reliability Standard BAL-002-WECC-3 applies to
balancing authorities and reserve sharing groups in the Western
Interconnection, and it specifies the quantity and types of contingency
reserves required to ensure reliability under normal and abnormal
conditions.\1\ Regional Reliability Standard BAL-002-WECC-3 eliminates
Requirement R2 from the prior version because, as discussed in the
joint petition, the implementation of the continent-wide Reliability
Standard BAL-003-1.1 (Frequency Response and Frequency Bias Setting),
Requirement R1 makes Requirement R2 redundant.\2\ Based on Requirement
R1 of the continent-wide Reliability Standard BAL-003-1.1 and the
results of field tests NERC and WECC conducted to assess the potential
impact of the retirement of regional Reliability Standard BAL-002-WECC-
2a, Requirement R2 on contingency reserves in the Western
Interconnection, the Commission approves regional Reliability Standard
BAL-002-WECC-3 and the retirement of the currently-effective version of
the regional Reliability Standard.
---------------------------------------------------------------------------
\1\ Reserve sharing group is defined in the Glossary of Terms
Used in NERC Reliability Standards (NERC Glossary) as, ``[a] group
whose members consist of two or more Balancing Authorities that
collectively maintain, allocate, and supply operating reserves
required for each Balancing Authority's use in recovering from
contingencies within the group. . . .''
\2\ Reliability Standard BAL-003-1.1, Requirement R1 became
effective on April 1, 2016.
---------------------------------------------------------------------------
3. In addition, as proposed in the notice of proposed rulemaking
(NOPR), the Commission believes it is appropriate to monitor the
potential impacts of retiring Requirement R2 to ensure that this action
does not adversely impact the adequacy of contingency reserves in the
Western Interconnection.\3\ Therefore, as discussed below, the
Commission directs NERC and WECC to submit an informational filing 30
months following implementation of regional Reliability Standard BAL-
002-WECC-3 that addresses the adequacy of contingency reserves in the
Western Interconnection.
---------------------------------------------------------------------------
\3\ WECC Regional Reliability Standard BAL-002-WECC-3
(Contingency Reserve), Notice of Proposed Rulemaking, 85 FR 68809
(Oct. 30, 2020), 173 FERC ] 61,032, at P 3 (2020) (NOPR).
---------------------------------------------------------------------------
I. Background
A. Section 215 and Regional Reliability Standards
4. Section 215 of the FPA requires a Commission-certified ERO to
develop
[[Page 22589]]
mandatory and enforceable Reliability Standards that are subject to
Commission review and approval.\4\ Once approved, the Reliability
Standards may be enforced by NERC, subject to Commission oversight, or
by the Commission independently.\5\
---------------------------------------------------------------------------
\4\ 16 U.S.C. 824o.
\5\ 16 U.S.C. 824o(e).
---------------------------------------------------------------------------
5. A Regional Entity may develop a regional Reliability Standard
for Commission approval to be effective in that region only.\6\ In
Order No. 672, the Commission stated that as a general matter, we will
accept the following two types of regional differences, provided they
are otherwise just, reasonable, not unduly discriminatory or
preferential and in the public interest, as required under the statute:
(1) A regional difference that is more stringent than the continent-
wide Reliability Standard, including a regional difference that
addresses matters that the continent-wide Reliability Standard does
not; and (2) a regional Reliability Standard that is necessitated by a
physical difference in the Bulk-Power System.\7\
---------------------------------------------------------------------------
\6\ 16 U.S.C. 824o(e)(4). A Regional Entity is an entity that
has been approved by the Commission to enforce Reliability Standards
under delegated authority from the ERO. See 16 U.S.C. 824o(a)(7) and
(e)(4). On April 19, 2007, the Commission accepted delegation
agreements between NERC and eight Regional Entities, including WECC.
North American Electric Reliability Corp., 119 FERC ] 61,060, order
on reh'g, 120 FERC ] 61,260 (2007).
\7\ Rules Concerning Certification of the Electric Reliability
Organization; and Procedures for the Establishment, Approval and
Enforcement of Electric Reliability Standards, Order No. 672, 71 FR
8662 (Feb. 17, 2006), 114 FERC ] 61,104, at P 291, order on reh'g,
Order No. 672-A, 71 FR 19814 (April 18, 2006), 114 FERC ] 61,328
(2006).
---------------------------------------------------------------------------
While a Regional Entity may propose regional Reliability Standards
that address specific, unique regional conditions and circumstances,
such regional Reliability Standards can be retired if those
justifications are no longer relevant. Accordingly, the Commission may
approve retirement of a more stringent regional requirement ``if the
Regional Entity demonstrates that the continent-wide Reliability
Standard is sufficient to ensure the reliability of that region.'' \8\
---------------------------------------------------------------------------
\8\ Version One Regional Reliability Standard for Resource and
Demand Balancing, Order No. 740, 75 FR 65964 (Oct. 27, 2010), 133
FERC ] 61,063, P 30 (2010).
---------------------------------------------------------------------------
B. Regional Reliability Standard BAL-002-WECC-2
6. On November 21, 2013, the Commission approved regional
Reliability Standard BAL-002-WECC-2, specifying the quantity and types
of contingency reserve required to ensure reliability under normal and
abnormal conditions.\9\ Regional Reliability Standard BAL-002-WECC-2 is
more stringent than continent-wide Reliability Standard BAL-002-1
because the regional Reliability Standard requires applicable entities
to restore contingency reserve within 60 minutes following an event
requiring the activation of contingency reserve, 30 minutes less than
the 90 minutes allowed by the continent-wide Reliability Standard.\10\
In addition, the method for calculating minimum contingency reserve in
the regional Reliability Standard is more stringent than Requirement
R3.1 in Reliability Standard BAL-002-1, because it requires minimum
contingency reserve levels that will be at least equal to the
Reliability Standard minimum (i.e., equal to the most severe single
contingency) and more often will be greater.\11\
---------------------------------------------------------------------------
\9\ Regional Reliability Standard BAL-002-WECC-2, Order No. 789,
145 FERC ] 61,141 (2013). On January 24, 2017, by delegated letter
order, the Commission approved regional Reliability Standard BAL-
002-WECC-2a, which added an interpretation to Requirement R2. North
American Electric Reliability Corporation, Docket. No. RD17-3-000
(Jan. 24, 2017) (delegated order).
\10\ Reliability Standard BAL-002-3, approved on September 25,
2018, is the current version of the continent-wide Reliability
Standard. North American Electric Reliability Corp., Docket No.
RD18-7-000 (Sep. 25, 2018) (delegated letter order).
\11\ Order No. 789, 145 FERC ] 61,141 at P 26.
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C. Reliability Standard BAL-003-1
7. Reliability Standard BAL-003-1 (Frequency Response and Frequency
Bias Setting) addressed Commission directives, during the approval of
Reliability Standard BAL-003-0 (Frequency Response and Bias), issued in
Order No. 693.\12\ The Commission directed NERC to modify Reliability
Standard BAL-003-0 to ``define[ ] the necessary amount of Frequency
Response needed for Reliable Operation of each balancing authority with
methods of obtaining and measuring that the frequency response is
achieved.'' \13\ On January 16, 2014, the Commission approved
continent-wide Reliability Standard BAL-003-1.\14\ The Commission
explained that Reliability Standard BAL-003-1 defines the amount of
frequency response needed from balancing authorities to maintain
Interconnection frequency within predefined bounds, and includes
requirements for the measurement and provision of frequency response.
In particular, Order No. 794 determined that Reliability Standard BAL-
003-1 ``establishes a minimum Frequency Response Obligation for each
balancing authority; provides a uniform calculation of frequency
response; establishes Frequency Bias Settings that are closer to actual
balancing authority frequency response; and encourages coordinated
automatic generation control operation.'' \15\
---------------------------------------------------------------------------
\12\ Mandatory Reliability Standards for the Bulk-Power System,
Order No. 693, 72 FR 16416 (April 4, 2007), 118 FERC 61,218, order
on reh'g, Order No. 693-A, 120 FERC ] 61,053, at P 375 (2007).
\13\ Id.
\14\ Frequency Response and Frequency Bias Setting Reliability
Standard, Order No. 794, 79 FR 3723 (Jan. 23, 2014), 146 FERC ]
61,024 (2014). Reliability Standard BAL-003-1.1 was subsequently
approved by delegated letter order on November 13, 2015 and
contained non-substantive changes over the prior version,
Reliability Standard BAL-003-1. North American Electric Reliability
Corp., Docket No. RD15-6-000 (Nov. 13, 2015) (delegated order).
Reliability Standard BAL-003-2 was approved by delegated order on
July 15, 2020 with modifications in Attachment A (BAL-003-2
Frequency Response and Frequency Bias Setting Standard Supporting
Document), which addresses the establishment of the Interconnection
frequency response obligation. The requirements in Reliability
Standard BAL-003-2 are identical to the previous version,
Reliability Standard BAL-003-1.1. North American Electric
Reliability Corp., Docket No. RD20-9-000 (Jul. 15, 2020) (delegated
order).
\15\ Order No. 794, 146 FERC ] 61,024 at P 22.
---------------------------------------------------------------------------
D. NERC and WECC Joint Petition
8. On September 6, 2019, NERC and WECC submitted a joint petition
seeking approval of proposed regional Reliability Standard BAL-002-
WECC-3, the associated violation risk factors and violation severity
levels, effective date, and implementation plan.\16\ The joint petition
also requests retirement of the currently-effective regional
Reliability Standard BAL-002-WECC-2a.
---------------------------------------------------------------------------
\16\ Regional Reliability Standard BAL-002-WECC-3 is not
attached to this final action. The regional Reliability Standard is
available on the Commission's eLibrary document retrieval system in
the identified docket and on the NERC website, www.nerc.com.
---------------------------------------------------------------------------
9. In the joint petition, NERC and WECC explain that the principal
modification in the proposed regional Reliability Standard is the
retirement of Requirement R2 in currently-effective regional
Reliability Standard BAL-002-WECC-2a. Requirement R2 provides that
balancing authorities and reserve sharing groups in the WECC Region
``shall maintain at least half of its minimum amount of Contingency
Reserve identified in Requirement R1, as Operating Reserve--Spinning.''
NERC and WECC maintain that the 50 percent minimum contingency reserve
amount was carried forward from the Reliability Management System of
WECC's predecessor, the Western Systems Coordinating Council, and is no
longer relevant.
10. NERC and WECC contend that continent-wide Reliability Standard
BAL-003-1.1 ``helps ensure that sufficient Frequency Response is
[[Page 22590]]
provided to maintain Interconnection frequency in support of the
reliable operation of the Interconnection,'' and therefore renders
regional Reliability Standard BAL-002-WECC-2a, Requirement R2
``redundant and no longer needed for reliability in the Western
Interconnection.'' \17\ NERC and WECC assert that Reliability Standard
BAL-003-1.1 ``addresses the same frequency response components covered
in currently effective Regional Reliability Standard BAL-002-WECC-2a
Requirement R2 but in a results-based manner.'' \18\
---------------------------------------------------------------------------
\17\ Joint Petition at 4.
\18\ Id. at 13.
---------------------------------------------------------------------------
11. In particular, NERC and WECC state that Reliability Standard
BAL-003-1.1, Requirement R1 requires that balancing authorities (or
groups of balancing authorities known as frequency response sharing
groups) ``achieve an annual Frequency Response Measure that is equal to
or more negative than its Frequency Response Obligation to ensure that
it is providing sufficient Frequency Response.'' \19\ Moreover, NERC
and WECC explain that retention of the regional minimum operating
reserve--spinning requirement, alongside the continent-wide frequency
response requirement, could lead to confusion and the procurement of
more spinning reserves than necessary for entities to meet their
frequency response obligation, thereby increasing costs without
providing additional reliability benefits.\20\
---------------------------------------------------------------------------
\19\ Id at 4.
\20\ Id. at 12-13.
---------------------------------------------------------------------------
12. NERC and WECC also state that to evaluate the potential
reliability impacts of retiring Requirement R2, WECC conducted a field
test from May 1, 2017 through April 30, 2018, obtaining data from each
balancing authority and each reserve sharing group. \21\ NERC and WECC
explain that the field test measured the effect of retiring Requirement
R2 using two metrics: Disturbance control standard (DCS) performance
and frequency response in the Western Interconnection.\22\ The first
metric measured, for each reportable DCS event,\23\ whether an entity
was unable to meet the contingency event recovery period. The second
metric monitored system performance for any loss of resources greater
than 700 MW and for any adverse effects on frequency response.\24\
---------------------------------------------------------------------------
\21\ Id. at 13. A report containing the results of the field
test is appended to the joint petition as Exhibit C. Joint Petition,
Exhibit C (Field Test Results, WECC-0115 BAL-002-WECC-2a Request to
Retire Requirement R2).
\22\ Disturbance control standard is defined in the NERC
Glossary as, ``[t]he reliability standard that sets the time limit
following a Disturbance within which a Balancing Authority must
return its Area Control Error to within a specified range.'' See
also Joint Petition, Exhibit C at 5.
\23\ We understand the reference to ``reportable DCS event'' in
the joint petition corresponds to the NERC Glossary term
``Reportable Balancing Contingency Event'' that appears in
Reliability Standard BAL-002-3. The NERC Glossary defines Reportable
Balancing Contingency Event as: ``[a]ny Balancing Contingency Event
occurring within a one-minute interval of an initial sudden decline
in ACE based on EMS scan rate data that results in a loss of MW
output less than or equal to the Most Severe Single Contingency, and
greater than or equal to the lesser amount of: (i) 80% of the Most
Severe Single Contingency, or (ii) the amount listed below for the
applicable Interconnection. Prior to any given calendar quarter, the
80% threshold may be reduced by the responsible entity upon written
notification to the Regional Entity. (Eastern Interconnection--900
MW, Western Interconnection--500 MW, ERCOT--800 MW, and Quebec--500
MW).''
\24\ Joint Petition at 13-14.
---------------------------------------------------------------------------
13. NERC and WECC assert that ``analysis of the data demonstrates
that all 66 DCS events occurring during the field test period had a 100
percent pass rate, showing no degradation to DCS performance. Entities
carried and deployed enough reserves for post disturbance Area Control
Area recovery.'' \25\ NERC and WECC also note that the 2018 NERC State
of Reliability Report indicates that frequency response performance
``did not degrade in the Western Interconnection during the field test
period.'' \26\
---------------------------------------------------------------------------
\25\ Id. at 14.
\26\ Id. at 15.
---------------------------------------------------------------------------
14. Notwithstanding the elimination of Requirement R2, NERC and
WECC assert that proposed regional Reliability Standard BAL-002-WECC-3
retains the other existing requirements because they are needed to
maintain reliability and ``continue[ ] to represent a more stringent
set of requirements for entities in the Western Interconnection than
those found in the continent-wide disturbance control standard,
Reliability Standard BAL-002-3.'' \27\
---------------------------------------------------------------------------
\27\ Id. at 10.
---------------------------------------------------------------------------
15. To supplement the field test data provided in the joint
petition, on February 18, 2020, the Director of the Office of Electric
Reliability issued a data request to NERC and WECC seeking: (1) Data
for the remainder of the field test term not provided in the joint
petition (i.e., from May 1, 2018 to September 30, 2019); and (2)
supporting data for NERC's frequency response metric (Metric M-4)
pertaining to the Western Interconnection during the field test period
(i.e., from May 1, 2017 to September 30, 2019). In addition, NERC and
WECC were asked to provide the amount of spinning reserve above or
below 50 percent during non-event times on an hourly basis from the
beginning of the field test period (May 1, 2017) through September 30,
2019.\28\
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\28\ According to Measure M2, ``Each Balancing Authority and
each Reserve Sharing Group will have dated documentation that
demonstrates it maintained at least half of the Contingency Reserve
identified in Requirement R1 as Operating Reserve--Spinning,
averaged over each Clock Hour, that met both of the reserve
characteristics identified in Requirement R2, Part 2.1 and
Requirement R2, Part 2.2.''
---------------------------------------------------------------------------
16. On May 18, 2020, NERC and WECC submitted data in response to
the February 18 data request, indicating results that were generally
consistent with the results presented in the field test report. The
additional data provided a complete record for the joint petition.
E. Notice of Proposed Rulemaking
17. On October 30, 2020, the Commission issued a NOPR proposing to
approve regional Reliability Standard BAL-002-WECC-3 as just,
reasonable, not unduly discriminatory or preferential, and in the
public interest.\29\ In addition, the Commission proposed to direct
NERC and WECC to submit an informational filing 27 months following
implementation of the proposed regional Reliability Standard, stating
that it is ``appropriate in this case to monitor the potential impacts
of retiring Requirement R2 on the adequacy of contingency reserves in
the Western Interconnection.'' \30\ The proposed informational filing
would require NERC and WECC to provide an analysis of 24 months of data
pertaining to the amount and deliverability of contingency reserves
following implementation of the proposed regional Reliability Standard
to monitor the potential reliability impacts of retiring Requirement R2
on the adequacy of contingency reserves in the Western Interconnection.
---------------------------------------------------------------------------
\29\ WECC Regional Reliability Standard BAL-002-WECC-3
(Contingency Reserve), NOPR, 173 FERC ] 61,032.
\30\ Id. at P 3.
---------------------------------------------------------------------------
18. In response to the NOPR, the Commission received four sets of
comments from NERC and WECC, jointly; Northwest Power Pool Reserve
Sharing Group (NWPP RSG); Bonneville Power Administration (BPA); and
Southwest Reserve Sharing Group (SRSG). All commenters support the
approval of regional Reliability Standard BAL-002-WECC-3. In addition,
all commenters raise issues regarding the timing and need for an
informational filing, and whether data from individual balancing
authorities, as opposed to aggregated data from the reserve sharing
group they participate in, is necessary. We address below the issues
raised by commenters.
[[Page 22591]]
II. Discussion
19. Pursuant to FPA section 215(d)(2), the Commission approves WECC
regional Reliability Standard BAL-002-WECC-3 as just, reasonable, not
unduly discriminatory or preferential, and in the public interest. For
applicable entities in the Western Interconnection, regional
Reliability Standard BAL-002-WECC-3 eliminates the requirement in the
currently-effective version that at least half of the minimum amount of
contingency reserve shall be Operating Reserve--Spinning that meets
certain reserve characteristics. The justification set forth in the
joint petition combined with the field test results support NERC and
WECC's contention that the continent-wide Reliability Standard BAL-003-
1.1 renders the existing 50 percent Operating Reserve--Spinning
obligation redundant. Additionally, regional Reliability Standard BAL-
002-WECC-3, even without Requirement R2, will continue to provide
protections beyond those contained in the continent-wide disturbance
control Reliability Standard BAL-002-3.
20. We discuss below the following issues raised by commenters: (A)
The need for an informational filing; (B) an extension of time to
submit the informational filing; and (C) submission of individual
balancing authority data.
A. Need for Informational Filing
1. NOPR
21. In the NOPR, the Commission proposed to direct NERC and WECC to
submit an informational filing following the implementation of regional
Reliability Standard BAL-002-WECC-3. The NOPR proposed that the
informational filing contain for a 24-month period after implementation
of the regional Reliability Standard the following categories of data:
(1) For any reportable balancing contingency event, the date, time and
required amount of contingency reserves at the time of the event, the
actual amount of Operating Reserves--Spinning at the time of the event,
and the actual DCS performance; (2) for events involving a loss of 700
MW or greater, whether it is a reportable balancing contingency event
or not, the date and time of the event, the name of the resource(s),
and the total MW; (3) the amount of spinning reserve above or below 50
percent during non-event times on an hourly basis for twenty-four
months following implementation; and (4) supporting data for NERC's
frequency response metric (Metric M-4) as it pertains to the Western
Interconnection. The NOPR indicated that the informational filing was
necessary to monitor the reliability impacts that the retirement of
regional Reliability Standard BAL-002-WECC-2a, Requirement R2 may have
on contingency reserves in the Western Interconnection.
22. In addition to the data categories identified above, the NOPR
proposed that NERC and WECC provide: (1) The DCS performance--as
described in request (1) in the paragraph above--on an individual
balancing authority basis; and (2) the hourly amount of contingency
reserve and the fraction of that contingency reserve that is classified
as spinning for each hour by balancing authority (not reserve sharing
group).\31\ The NOPR stated that this data is necessary to assess the
amount of contingency reserves held by each balancing authority within
a reserve sharing group, because the contingency reserve data provided
for a reserve sharing group are the aggregated sum of the contingency
reserves of the participating balancing authorities.
---------------------------------------------------------------------------
\31\ As clarified in the discussion below, member balancing
authorities should report for those events that meet the Reportable
Balancing Contingency Event threshold for their respective reserve
sharing groups. In addition, the contingency event recovery data can
specify individual member balancing authority contingency reserve
data plus contingency reserves from the reserve sharing group, if
any.
---------------------------------------------------------------------------
2. Comments
23. SRSG supports requiring an informational filing, and NERC/WECC
do not oppose an informational filing. BPA and NWPP RSG, however,
maintain that the proposed informational filing is not necessary to
understand the impacts of retiring Requirement R2. BPA and NWPP RSG
contend that WECC has ``provided similar data to the Commission for the
past two years . . . [and] the data already submitted shows that BAL-
002-WECC-3 will not have adverse effects on Contingency Reserves in the
Western Interconnection.'' \32\
---------------------------------------------------------------------------
\32\ BPA Comments at 2; see also NWPP RSG Comments at 3.
---------------------------------------------------------------------------
3. Commission Determination
24. As explained in the NOPR, it is important to monitor the
reliability impacts that the retirement of Requirement R2 may have on
contingency reserves in the Western Interconnection.\33\ We agree that
the data already provided to the Commission supports the retirement of
Requirement R2 from the currently-effective Reliability Standard.
However, we believe that a post-implementation informational filing is
a prudent measure to confirm that the retirement of Requirement R2 from
the existing regional Reliability Standard has not resulted in any
unexpected, adverse impacts on contingency reserves.\34\
---------------------------------------------------------------------------
\33\ NOPR, 173 FERC ] 61,032 at P 19.
\34\ See Real Power Balancing Control Performance Reliability
Standard, Order No. 810, 80 FR 22395 (Apr. 22, 2015), 151 FERC ]
61,048, at P 20 (2015) (directing an informational filing to assess
the impact of implementing Reliability Standard BAL-001-2); see also
Order No. 794, 146 FERC ] 61,024 at P 60 (directing entities to
report on resources available to each balancing authority and
Frequency Response Sharing Group to meet its Frequency Response
Obligation because the ``new methodology for determining the
Frequency Response Obligation and the results when applied are not
yet known . . . [and] the ability of balancing authorities and
Frequency Response Sharing Groups to meet the obligation is
untested.'').
---------------------------------------------------------------------------
B. Extension of Time To Submit Informational Filing
1. NOPR
25. In the NOPR, the Commission proposed to direct NERC and WECC to
submit the informational filing 27 months following implementation of
regional Reliability Standard BAL-002-WECC-3.
2. Comments
26. NERC and WECC contend that the 27-month deadline proposed in
the NOPR is insufficient because it provides NERC and WECC with only
three months to analyze the 24 months of data before submitting the
informational filing. Therefore, NERC and WECC seek an additional three
months, or a 30-month deadline for submission of the informational
filing. NERC and WECC reiterate that they would, under any
circumstances, promptly make the Commission aware of any adverse
impacts resulting from the retirement of Requirement R2 prior to
submission.
3. Commission Determination
27. Based on NERC and WECC's concern that the 27-month deadline
proposed in the NOPR provides them with only three months to analyze
the data and submit the informational filing, we will extend the
deadline for submission of the informational filing by an additional
three months. Accordingly, we direct NERC and WECC to submit the
informational filing 30 months following implementation of regional
Reliability Standard BAL-002-WECC-3.
C. Submission of Individual Balancing Authority Data
1. NOPR
28. As described above, the NOPR proposed that NERC and WECC
provide certain data on a balancing authority level in the
informational filing.
[[Page 22592]]
2. Comments
29. All four commenters raise concerns with the NOPR's proposal to
require certain data to be submitted by individual balancing authority.
NERC and WECC caution that analyzing data on a balancing authority
basis ``may not present a complete and accurate picture of conditions
in the Western Interconnection.'' \35\ NERC and WECC explain that a
U.S.-based balancing authority ``may, through a Reserve Sharing Group,
rely on spinning reserves carried by a Balancing Authority that is
located outside the United States . . . [thus] NERC and WECC may only
be able to provide U.S. Balancing Authority information and Reserve
Sharing Group information that represents only the U.S. portion of the
Reserve Sharing Group.'' \36\
---------------------------------------------------------------------------
\35\ NERC Comments at 5.
\36\ Id.
---------------------------------------------------------------------------
30. SRSG asserts that reserve sharing group data provides
``sufficient information to address adequacy of contingency reserves
and the impact of the retirement of R2 on reliability, particularly
when coupled with an analysis of BAL-003 and M4 events.'' \37\ BPA adds
that reporting by reserve sharing group ``ensures that the Commission
receives an accurate depiction of the adequacy of Contingency Reserves
for the Western Interconnection.'' \38\ BPA states that ``[r]equiring
data on an individual Balancing Authority level may skew the data, as
each Balancing Authority may appear deficient, even though the Reserve
Sharing Group met its obligation to provide Contingency Reserves to its
members.'' \39\ BPA also contends that reporting data at the balancing
authority level would impose an additional burden without any
corresponding benefit.
---------------------------------------------------------------------------
\37\ SRSG Comments at 1.
\38\ BPA Comments at 3.
\39\ Id.
---------------------------------------------------------------------------
31. In response to the NOPR's concerns regarding deliverability of
contingency reserves in the Western Interconnection, NWPP RSG states
that it addresses deliverability of contingency reserves among its
participants through a well-documented operating process, the Northwest
Power Pool Reserve Sharing Program Documentation. According to NWPP
RSG, the program addresses how balancing authority members can access
contingency reserves through an automated Reserve Sharing Computer
System that has direct communication to their data and related
deployment signals between the computer system and each participating
balancing authority. The program defines eight reserve sharing zones in
the NWPP RSG area, assigning each a contingency reserve obligation
based on constrained inter-zone transmission facilities. When a
participating balancing authority is separated from the remaining
balancing authorities due to constrained transmission facilities, the
effect of the constraint is reflected in the establishment of each
reserve sharing zone's contingency reserve obligation.\40\
---------------------------------------------------------------------------
\40\ NWPP RSG Comments at 1-2.
---------------------------------------------------------------------------
32. NWPP RSG contends that the price spike event in March 2019,
referenced in the NOPR, did not cause any contingency reserve issues
and there was no deliverability issue related to hydroelectric
resources. Further, NWPP RSG states that since the inception of the
NWPP reserve sharing program in 2001 and the beginning of mandatory
compliance related to the disturbance contingency recovery period in
2007, the NWPP RSG has never failed in event recovery.\41\
---------------------------------------------------------------------------
\41\ Id. at 2.
---------------------------------------------------------------------------
33. In addition, NWPP RSG and BPA maintain that the request for
information by balancing authority is inconsistent with regional
Reliability Standard BAL-002-WECC-3, because balancing authorities are
not required to meet DCS recovery or carry contingency reserves.
Rather, NWPP RSG states that it has an obligation to meet DCS recovery
from a balancing contingency event among its participants under
Reliability Standard BAL-002-3. Further, NWPP RSG asserts that
balancing authority and reserve sharing group area control error (ACE)
measurements differ and, therefore, relying on balancing authority ACE
to assess reliability could be misleading. Accordingly, NWPP RSG states
that the Commission should clarify the Contingency Event Recovery
Period reported by the balancing authority should use the reserve
sharing group's ACE values.\42\
---------------------------------------------------------------------------
\42\ Id. at 3.
---------------------------------------------------------------------------
34. NWPP RSG also asserts that, because the NERC definition of a
Reportable Balancing Contingency Event applies to the responsible
entity (the reserve sharing group under Reliability Standard BAL-002-
WECC-3), balancing authority members of a reserve sharing group are not
the responsible entity. Therefore, each balancing authority should only
report for those events that meet the Reportable Balancing Contingency
Event threshold for its reserve sharing group.\43\
---------------------------------------------------------------------------
\43\ Id.
---------------------------------------------------------------------------
3. Commission Determination
35. We adopt the NOPR proposal for NERC and WECC to include certain
balancing authority-level data in their informational filing. As
explained below, we are not persuaded by the comments that oppose the
Commission obtaining balancing authority-level data.
36. As explained in the NOPR, obtaining balancing authority-level
data will provide the Commission with an understanding of the amount of
contingency reserves held by each balancing authority within a reserve
sharing group. Although commenters raise concerns that the Commission
may misuse or misinterpret the balancing authority-level data, we
clarify that the Commission has not proposed and does not intend to use
such data for any purpose other than to better understand how
contingency reserves are apportioned within reserve sharing groups. The
Commission has not proposed and does not intend, for example, to use
such data for any compliance purpose or to direct the development of
new or modified Reliability Standards.
37. Similarly, we do not agree with the concern that the Commission
could misinterpret or draw the wrong conclusions from balancing
authority-level data for purposes outside of compliance or development
of Reliability Standards. We fully understand that contingency reserves
are not equally apportioned within reserve sharing groups, and any
conclusions drawn from the informational filing will also consider
relevant reserve sharing group data and any analysis of such data that
may be provided by NERC and WECC. To be clear, we do not intend to base
our understanding of contingency reserves in the Western
Interconnection solely, or even primarily, on balancing authority-level
data. Moreover, to address NERC and WECC's concern that reporting on
United States-based balancing authorities could present an incomplete
picture by excluding Canadian balancing authorities, we clarify that
NERC and WECC can identify and explain in the informational filing any
discrepancies in the data resulting from some reserve sharing group
member balancing authorities being located outside the United States.
38. To address certain questions raised in the comments, we clarify
certain aspects of the balancing authority-portion of the informational
filing directed in this final action. First, we clarify that the member
balancing authority data portion of the data
[[Page 22593]]
request should be based on each member balancing authority's obligation
as a member of its reserve sharing group. This is in keeping with our
statement that the Commission intends to examine and compare both
member balancing authority and reserve sharing group data. Second, for
each balancing authority, NERC and WECC should only report for those
events that meet the Reportable Balancing Contingency Event threshold
for their respective reserve sharing groups, as suggested by NWPP RSG.
The contingency event recovery data can specify individual member
balancing authority contingency reserve data plus contingency reserves
from the reserve sharing group, if any.
39. Accordingly, we adopt the NOPR proposal and direct NERC and
WECC to submit an informational filing 30 months following
implementation of regional Reliability Standard BAL-002-WECC-3
containing a report that addresses the adequacy of contingency reserves
in the Western Interconnection. We further accept NERC and WECC's plan
to make the Commission immediately aware of any adverse impacts
resulting from the retirement of Requirement R2, if they become
apparent prior to the end of the reporting period, and any corrective
actions taken or being considered.
III. Information Collection Statement
40. The FERC-725E information collection requirements contained in
this final action are subject to review by the Office of Management and
Budget (OMB) under section 3507(d) of the Paperwork Reduction Act of
1995 (PRA).\44\ OMB's regulations require approval of certain
information collection requirements imposed by agency rules.\45\ 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.
---------------------------------------------------------------------------
\44\ 44 U.S.C. 3507(d).
\45\ 5 CFR 1320.11.
---------------------------------------------------------------------------
41. In the NOPR, the Commission solicited comments on the
Commission's 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 asked that any revised burden
or cost estimates submitted by commenters be supported by sufficient
detail to understand how the estimates are generated. The Commission
did not receive any comments regarding the Commission's burden
estimates.
42. The Commission approves regional Reliability Standard BAL-002-
WECC-3 (Contingency Reserve), which replaces currently-effective
regional Reliability Standard BAL-002-WECC-2a. The principal difference
between currently-effective regional Reliability Standard BAL-002-WECC-
2a and BAL-002-WECC-3 is the elimination of Requirement R2 from the
currently-effective version.
43. Public Reporting Burden: The burden and cost estimates below
are based on the need for applicable entities to revise documentation,
already required by the current WECC regional Reliability Standard BAL-
002-WECC-2a,\46\ to reflect the retirement of Requirement R2 in WECC
regional Reliability Standard BAL-002-WECC-3. Our estimates are based
on the NERC Compliance Registry as of September 3, 2020, which
indicates that 34 balancing authorities, 2 reserve sharing groups, 2
reliability coordinators, 265 generator owners, 256 generator
operators, 78 transmission owners and 47 transmission operators are
registered within WECC.
---------------------------------------------------------------------------
\46\ BAL-002-WECC-2 is included in the OMB-approved inventory
for FERC-725E. On November 9, 2016, NERC and WECC submitted a joint
petition for approval of an interpretation of BAL-002-WECC-2, to be
designated BAL-002-WECC-2a. BAL-002-WECC-2a was approved by order in
Docket No. RD17-3-000 on January 24, 2017. The Order determined:
``The proposed interpretation provides clarification regarding the
types of resources that may be used to satisfy Contingency Reserve
requirements in regional Reliability Standard BAL-002-WECC-2.'' BAL-
002-WECC-2a did not trigger the Paperwork Reduction Act and did not
affect the burden estimate.
---------------------------------------------------------------------------
44. In addition to the changes identified in this final action, the
Commission is adjusting burden estimates for the other WECC regional
Reliability Standards in the FERC-725E information collection. These
adjustments are warranted based on updates to the number of applicable
registered entities that have changed due to normal industry
fluctuations (e.g., companies merging or splitting, going into or
leaving the industry, or filling more or fewer roles in the NERC
Compliance Registry).
45. There are several regional Reliability Standards in the WECC
region. These regional Reliability Standards generally require entities
to document compliance with substantive requirements, retain
documentation, and submit reports to WECC. The following standards will
be continuing without change.
BAL-004-WECC-3 (Automatic Time Error Correction) requires
balancing authorities to document that time error corrections and
primary inadvertent interchange payback were conducted according to the
requirements in the standard.
FAC-501-WECC-2 (Transmission Maintenance) requires
transmission owners with certain transmission paths to have a
transmission maintenance and inspection plan and to document
maintenance and inspection activities according to the plan.
VAR-501-WECC-3.1 (Power System Stabilizer [PSS]) \47\
requires generator owners and operators to ensure the Western
Interconnection is operated in a coordinated manner by establishing the
performance criteria for WECC power system stabilizers.
---------------------------------------------------------------------------
\47\ VAR-501-WECC-3.1 was approved by order in Docket No. RD17-
7-000 on September 26, 2017. The August 18, 2017 petition requested
Commission approval of errata to mandatory and enforceable regional
Reliability VAR-501-WECC-3 (Power System Stabilizer). Because the
reporting burden for VAR-501-WECC-3.1 did not increase for entities
that operate within the Western Interconnection, FERC submitted the
order to OMB for information only. The burden related to VAR-501-
WECC-3.1 does not differ from the burden of VAR-501-WECC-3, which is
included in the OMB-approved inventory. VAR-501-WECC-3.1 is being
included in this document and the Commission's submittal to OMB as
part of FERC-725E.
---------------------------------------------------------------------------
46. The associated reporting and recordkeeping requirements
included in the regional Reliability Standards above are not being
revised, and the Commission will be submitting a request to OMB to
extend these requirements for three years. The Commission's request to
OMB will also reflect the following:
Implement the regional Reliability Standard BAL-002-WECC-3
(addressed in this final action, Docket No. RM19-20), and
Adjustments to the burden estimates due to changes in the
NERC Compliance Registry for regional Reliability Standards BAL-002-
WECC-3 (Contingency Reserve) and IRO-006-WECC-3 (Qualified Path
Unscheduled Flow (USF) Relief).\48\
---------------------------------------------------------------------------
\48\ IRO-006-WECC-3 was approved by order in Docket No. RD19-4-
000 on May 10, 2019. The March 6, 2019 petition states that WECC
revised the regional Reliability Standard to clarify the purpose
statement, replace certain defined terms, account for multiple
reliability coordinators in the Western Interconnection, and conform
the regional Reliability Standard to the current drafting
conventions and template. Because the reporting burden for IRO-006-
WECC-3 did not increase for entities that operate within the Western
Interconnection, FERC submitted the order to OMB for information
only. The burden related to IRO-006-WECC-3 does not differ from the
burden of IRO-006-WECC-2, which is included in the OMB-approved
inventory. IRO-006-WECC-3 is being included in this document and the
Commission's submittal to OMB as part of FERC-725E.
---------------------------------------------------------------------------
[[Page 22594]]
47. Changes Due to Docket No. RM19-20. The Commission estimates the
reduction in the annual public reporting burden for the FERC-725E (due
to the retirement of BAL-002-WECC-2a, Requirement R2) as follows:
FERC-725E, Mandatory Reliability Standards for the Western Electric Coordinating Council, Reductions Due to Docket No. RM19-20
--------------------------------------------------------------------------------------------------------------------------------------------------------
Annual number of
Information collection Number of responses per Total number of Average burden hours & cost Total annual burden hours & total
requirements and entity respondents respondent responses \49\ per response annual cost
(1)............... (2).............. (1) * (2) = (3).. (4)........................ (3) * (4) = (5)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Balancing Authorities Years 1 0 (no change)..... 0 (no change).... 0 (no change).... 0 hrs.; $0 (no change)..... 0 hrs.; $0 (no change).
and 2 \50\.
Balancing Authorities Year 3 34................ 1................ 34............... 1 hr.; $83.67 (reduction).. 34 hrs.; $2,844.78 (reduction).
and Ongoing.
-------------------------------------------------------------------------------------------------------------------------
Sub-Total, Reduction (Due .................. ................. ................. ........................... 34 hrs.; $2,844.78 (reduction).
to Docket No. RM19-20) in
Year 3 and Ongoing.
--------------------------------------------------------------------------------------------------------------------------------------------------------
48. Adjustments Due to normal industry fluctuations. The Commission
estimates the changes in the annual public reporting burden for the
FERC-725E (due to the number of applicable registered entities) as
follows: \51\
---------------------------------------------------------------------------
\49\ The hourly cost (for salary plus benefits) uses the figures
from the Bureau of Labor Statistics (BLS) for three positions
involved in the reporting and recordkeeping requirements. These
figures include salary (based on BLS data for May 2019, https://bls.gov/oes/current/naics2_22.htm) and benefits (based on BLS data
for December 2019; issued March 19, 2020, https://www.bls.gov/news.release/ecec.nr0.htm) and are Manager (Code 11-0000 $97.15/
hour), Electrical Engineer (Code 17-2071 $70.19/hour), and File
Clerk (Code 43-4071 $34.79/hour). The hourly cost for the reporting
requirements ($83.67) is an average of the cost of a manager and
engineer. The hourly cost for recordkeeping requirements uses the
cost of a file clerk.
\50\ The reduction in burden is zero for the first two years due
to the directive in this final action to continue to report hourly
contingency reserve data for 24 months.
\51\ The number of applicable entities is based on the NERC
Compliance Registry as of September 3, 2020.
FERC-725E, Mandatory Reliability Standards for the Western Electric Coordinating Council, Adjustments Due to Normal Industry Fluctuations
--------------------------------------------------------------------------------------------------------------------------------------------------------
Annual number of
Information collection Number of responses per Total number of Average burden hours & cost Total annual burden hours & total
requirements and entity respondents respondent responses \49\ per response annual cost
(1)............... (2).............. (1) * (2) = (3).. (4)........................ (3) * (4) = (5)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Reliability Coordinators (IRO- 1 (increase)...... 1................ 1................ 1 hr.; $83.67 (increase)... 1 hr.; $83.67 (increase).
006-WECC-3) Reporting
Requirement.
Reliability Coordinators (IRO- 1 (increase)...... 1................ 1................ 1 hr.; $34.79 (increase)... 1 hr.; $34.79 (increase).
006-WECC-3) Record Keeping
Requirement.
Reserve Sharing Groups (BAL- 1 (reduction)..... 1................ 1................ 1 hr.; $83.67 (reduction).. 1 hr.; $83.67 (reduction).
002-WECC-3) Reporting
Requirement.
-------------------------------------------------------------------------------------------------------------------------
Sub-Total, (Net Due to .................. ................. ................. ........................... 1 hr.; $34.79 (net change).
Adjustments).
--------------------------------------------------------------------------------------------------------------------------------------------------------
49. Estimate of Continuing Annual Burden for Renewal: \52\ The
Commission estimates the annual public reporting burden and cost as
follows for FERC-725E. (This information will be submitted to OMB for
approval.) These estimates reflect:
---------------------------------------------------------------------------
\52\ The Commission is also removing 1746 one-time burden hours
associated with the requirements in Docket No. RD17-5 for regional
Reliability Standard VAR-501-WECC-3 (Power System Stabilizer [PSS]).
The one-time burden has been completed and will now be
administratively removed on submittal to OMB. Those hours are not
included in the table.
---------------------------------------------------------------------------
Reliability Standards in FERC-725E which continue and
remain unchanged (BAL-004-WECC-3, FAC-501-WECC-2, and VAR-002-WECC-
3.1);
Implement the regional Reliability Standard BAL-002-WECC-3
(addressed in this final action, Docket No. RM19-20-000); and
Adjustments to the burden estimates for regional
Reliability Standards BAL-002-WECC-3 (Contingency Reserve) and IRO-006-
WECC-3 (Qualified Path Unscheduled Flow (USF) Relief).
[[Page 22595]]
FERC-725E, Mandatory Reliability Standards for the Western Electric Coordinating Council
[New and continuing information collection requirements]
--------------------------------------------------------------------------------------------------------------------------------------------------------
Number of Annual number Average burden hours & Total annual burden Cost per
Entity respondents 53 of responses Annual number cost 49 per response hours & total annual respondent
per respondent of responses ($) cost ($) ($)
(1) (2) (1) * (2) = (3) (4).................... (3) * (4) = (5)........ (5) / (1) =
(6)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Reporting Requirements
--------------------------------------------------------------------------------------------------------------------------------------------------------
Balancing Authorities Years 1 and 2 34 1 34 21 hrs.; $1,757.07..... 714 hrs.; $59,740.38... 1,757.07
(BAL-002-WECC-3; BAL-004-WECC-3;
IRO-006-WECC-3).
Balancing Authorities Year 3 and 34 1 34 20 hrs.; $1,673.40..... 680 hrs.; $56,895.60... 1,673.40
Ongoing (BAL-002-WECC-3; BAL-004-
WECC-3; IRO-006-WECC-3).
Reserve Sharing Groups (BAL-002-WECC- 2 1 2 1 hr.; $83.67.......... 2 hrs.; $167.34........ 83.67
3).
Reliability Coordinators (IRO-006- 2 1 2 1 hr.; $83.67.......... 2 hrs.; $167.34........ 83.67
WECC-3).
Transmission Owners that operate 5 1 5 40 hrs.; $3,346.80..... 200 hrs.; $16,734.00... 3,346.80
qualified transfer paths (FAC-501-
WECC-2).
Generator Owners and/or Operators 291 2 582 1 hr.; $83.67.......... 582 hrs.; $48,695.94... 167.34
(VAR-501-WECC-3.1).
-------------------------------------------------------------------------------------------------------------------
Sub-Total for Reporting .............. ............... 625 ....................... 1,500 hrs.; $125,505.00 ..............
Requirements in Years 1 and 2.
Sub-Total for Reporting .............. ............... 625 ....................... 1,466 hrs.; $122,660.22 ..............
Requirements in Year 3 &
ongoing.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Recordkeeping Requirements
--------------------------------------------------------------------------------------------------------------------------------------------------------
Balancing Authorities (BAL-002-WECC- 34 1 34 3.1 hrs.; $107.85...... 105.4 hrs.; $3,666.87.. 107.85
3; BAL-004-WECC-3; IRO-006-WECC-3).
Reliability Coordinator (IRO-006- 2 1 2 1 hr.; $34.79.......... 2 hrs.; $69.58......... 34.79
WECC-3).
Transmission Owners that operate 5 1 5 6 hrs.; $208.74........ 30 hrs.; $1043.70...... 208.74
qualified transfer paths (FAC-501-
WECC-2).
Generator Owners and/or Operators 291 2 582 0.5 hrs.; $17.40....... 291 hrs.; $10,123.89... 34.79
(VAR-501-WECC-3.1).
-------------------------------------------------------------------------------------------------------------------
Sub-Total for Recordkeeping .............. ............... 623 ....................... 428.4 hrs.; $14,904.04. ..............
Requirements.
Total for FERC-725E, in YR. .............. ............... 1248 ....................... 1,928.4 hrs.; ..............
1 and YR. 2. $140,409.04.
Total for FERC-725E, in YR. .............. ............... 1248 ....................... 1,894.4 hrs.; ..............
3 & Ongoing. $137,564.26.
--------------------------------------------------------------------------------------------------------------------------------------------------------
50. Interested persons may obtain information on the reporting
requirements by contacting Ellen Brown, Office of the Executive
Director, Federal Energy Regulatory Commission, 888 First Street NE,
Washington, DC 20426 via email ([email protected]) or telephone
((202) 502-8663).
---------------------------------------------------------------------------
\53\ The number of respondents is derived from the NERC
Compliance Registry as of September 3, 2020.
---------------------------------------------------------------------------
51. The Commission solicits comments on the Commission's 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.
52. Please send comments concerning the collection of information
and the associated burden estimates to: Office of Information and
Regulatory Affairs, Office of Management and Budget, 725 17th Street
NW, Washington, DC 20503 [Attention: Desk Officer for the Federal
Energy Regulatory Commission]. Due to security concerns, comments
should be sent electronically to the following email address:
[email protected]. Comments submitted to OMB should refer to
OMB Control Nos. 1902-0246.
53. Please submit a copy of your comments on the information
collections to the Commission via the eFiling link on the Commission's
website at https://www.ferc.gov. If you are not able to file comments
electronically, please send a copy of your comments to: Federal Energy
Regulatory Commission, Secretary of the Commission, 888 First Street
NE, Washington, DC 20426. Comments on
[[Page 22596]]
the information collection that are sent to FERC should refer to RM19-
20-000.
Title: FERC-725E, Mandatory Reliability Standards-WECC (Western
Electric Coordinating Council).
Action: Three-year approval of the FERC-725E information collection
requirements, as modified by Docket No. RM19-20-000 and due to normal
industry fluctuations.
OMB Control No: 1902-0246 (FERC-725E).
Respondents: Business or other for-profit, and not-for-profit
institutions.
Frequency of Responses: One-time.
Necessity of the Information: The regional Reliability Standard
BAL-002-WECC-3, 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 proposal ensures that balancing authorities
and reserve sharing groups in the WECC Region have the quantity and
types of contingency reserve required to ensure reliability under
normal and abnormal conditions.
Internal review: The Commission has reviewed regional Reliability
Standard BAL-002-WECC-3 and determined that its action is necessary to
implement section 215 of the FPA. The Commission has assured itself, by
means of its internal review, that there is specific, objective support
for the burden estimates associated with the information requirements.
IV. Environmental Analysis
54. 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.\54\ 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.\55\ The actions finalized here
fall within this categorical exclusion in the Commission's regulations.
---------------------------------------------------------------------------
\54\ Regulations Implementing the National Environmental Policy
Act of 1969, Order No. 486, 52 FR 47897 (Dec. 17, 1987), FERC Stats.
& Regs. ] 30,783 (1987) (cross-referenced at 41 FERC 61,284).
\55\ 18 CFR 380.4(a)(2)(ii).
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V. Regulatory Flexibility Act
55. The Regulatory Flexibility Act of 1980 (RFA) \56\ generally
requires a description and analysis of rules that will have significant
economic impact on a substantial number of small entities. The Small
Business Administration's (SBA) Office of Size Standards develops the
numerical definition of a small entity.\57\ These standards are
provided in the SBA regulations at 13 CFR 121.201.\58\
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\56\ 5 U.S.C. 601-612.
\57\ 13 CFR 121.101.
\58\ 13 CFR 121.201. See also U.S. Small Business
Administration, Table of Small Business Size Standards Matched to
North American Industry Classification System Codes (effective Feb.
26, 2016), https://www.ecfr.gov/cgi-bin/text-idx?SID=0ff5f0839abff4eec707b4478ed733c6&mc=true&node=pt13.1.121&rgn=div5#se13.1.121_1110.
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56. Under SBA's size standards,\59\ balancing authorities, reserve
sharing groups, generator operators, generator owners, transmission
owners, and transmission operators all fall under the category of NAICS
code 221111-Hydroelectric Power Generation (500) and NAICS code 221118-
Other Electric Power Generation (250), with a total size threshold of
750 employees (including the entity and its associates).\60\
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\59\ 13 CFR 121.201.
\60\ The threshold for the number of employees indicates the
maximum allowed for a concern and its affiliates to be considered
small.
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57. This final action applies to registered balancing authorities
and reserve sharing groups in the NERC Compliance Registry with data
submitted to the Energy Information Administration on Form EIA-861
indicating that, of the 36 entities, 34 are registered balancing
authorities and two are reserve sharing groups, two may qualify as
small entities.\61\
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\61\ The RFA definition of ``small entity'' refers to the
definition provided in the Small Business Act (SBA), which defines a
``small business concern'' as a business that is independently owned
and operated and that is not dominant in its field of operation. See
15 U.S.C. 632 (2006). According to the Small Business
Administration, an electric utility is defined as ``small'' if,
including its affiliates, the number of employees indicates the
maximum allowed for a concern and its affiliates to be considered
small.
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58. Using the list from the NERC Compliance Registry (dated
September 3, 2020), we estimate that approximately 22% of those
entities are small entities.
59. The Commission estimates that, on average, each of the two
affected small entities will have no further ongoing costs after year
3. These figures are based on information collection costs plus
additional costs for compliance.
60. The Commission does not consider this to be a significant
economic impact for small entities because it should not represent a
significant percentage of the operating budget. Accordingly, the
Commission certifies that this final action will not have a significant
economic impact on a substantial number of small entities. The
Commission seeks comment on this certification.
VI. Document Availability
61. 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). At
this time, the Commission has suspended access to the Commission's
Public Reference Room due to the President's March 13, 2020
proclamation declaring a National Emergency concerning the Novel
Coronavirus Disease (COVID-19).
62. 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.
63. User assistance is available for eLibrary and the Commission's
website during normal business hours from the Commission's Online
Support at 202-502-6652 (toll free at 1-866-208-3676) or email at
[email protected], or the Public Reference Room at (202) 502-
8371, TTY (202) 502-8659. Email the Public Reference Room at
[email protected].
VII. Effective Date and Congressional Notification
64. This final action is effective June 28, 2021. The Commission
has determined, with the concurrence of the Administrator of the Office
of Information and Regulatory Affairs of OMB, that this action is not a
``major rule'' as defined in section 351 of the Small Business
Regulatory Enforcement Fairness Act of 1996. This final action is being
submitted to the Senate, House, and Government Accountability Office.
By direction of the Commission.
Issued: April 15, 2021.
Kimberly D. Bose,
Secretary.
[FR Doc. 2021-08571 Filed 4-28-21; 8:45 am]
BILLING CODE 6717-01-P
