Standards for Business Practices and Communication Protocols for Public Utilities, 29491-29503 [2021-11352]
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Federal Register / Vol. 86, No. 104 / Wednesday, June 2, 2021 / Rules and Regulations
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Issued in Washington, DC, on May 25,
2021.
George Gonzalez,
Acting Manager, Rules and Regulations
Group.
[FR Doc. 2021–11429 Filed 6–1–21; 8:45 am]
BILLING CODE 4910–13–P
DEPARTMENT OF ENERGY
Federal Energy Regulatory
Commission
18 CFR Parts 37 and 38
[Docket Nos. RM05–5–029 and RM05–5–
030; Order No. 676–J]
Standards for Business Practices and
Communication Protocols for Public
Utilities
Federal Energy Regulatory
Commission, Department of Energy.
ACTION: Final rule.
AGENCY:
The Federal Energy
Regulatory Commission (Commission) is
revising its regulations to incorporate by
reference the latest version (Version
003.3) of the Standards for Business
Practices and Communication Protocols
for Public Utilities adopted by the
Wholesale Electric Quadrant (WEQ) of
the North American Energy Standards
Board (NAESB). The WEQ Version
003.3 Standards include, in their
entirety, the WEQ–023 Modeling
Business Practice Standards contained
in the WEQ Version 003.1 Standards,
which address the technical issues
affecting Available Transfer Capability
(ATC) and Available Flowgate
Capability (AFC) calculation for
wholesale electric transmission services,
with the addition of certain revisions
and corrections. The Commission also
revises its regulations to provide that
transmission providers must avoid
unduly discriminatory and preferential
treatment in the calculation of ATC.
DATES: Effective date: This rule is
effective August 2, 2021.
Incorporation by reference: The
incorporation by reference of certain
publications listed in this rule is
approved by the Director of the Federal
Register as of August 2, 2021. The
incorporation by reference of certain
other publications listed in this rule was
approved by the Director of the Federal
Register as of April 27, 2020.
SUMMARY:
29491
Compliance date: Public utilities must
make a compliance filing to comply
with the requirements of this final rule
through eTariff twelve months after
implementation of the WEQ Version
003.2 Standards, but no earlier than
October 27, 2022. Compliance filings for
cybersecurity and Parallel Flow
Visualization standards are due March
2, 2022.
FOR FURTHER INFORMATION CONTACT:
Michael P. Lee (technical issues), Office
of Energy Policy and Innovation,
Federal Energy Regulatory
Commission, 888 First Street NE,
Washington, DC 20426, (202) 502–
6548.
Peter Whitman (technical issues), Office
of Energy Policy and Innovation,
Federal Energy Regulatory
Commission, 888 First Street NE,
Washington, DC 20426, (202) 502–
6225.
Michael A. Chase (legal issues), Office
of the General Counsel, Federal
Energy Regulatory Commission, 888
First Street NE, Washington, DC
20426, (202) 502–6205.
Mark Bennett (legal issues), Office of the
General Counsel, Federal Energy
Regulatory Commission, 888 First
Street NE, Washington, DC 20426,
(202) 502–8524.
SUPPLEMENTARY INFORMATION:
Table of Contents
Paragraph
Nos.
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I. Background ..........................................................................................................................................................................................
A. NAESB and Past Standards .......................................................................................................................................................
B. Summary of NAESB WEQ Version 003.3 .................................................................................................................................
II. Discussion ..........................................................................................................................................................................................
A. Overview .....................................................................................................................................................................................
B. Issues Raised by Commenters ....................................................................................................................................................
1. Changes to OASIS ................................................................................................................................................................
2. Incorporation of WEQ–023 Standards 1.4 and 1.4.1 .........................................................................................................
3. Changes to the Regulatory Text ..........................................................................................................................................
III. Waiver Requests and Implementation Issues ..................................................................................................................................
A. Waiver Requests .........................................................................................................................................................................
1. Comments .............................................................................................................................................................................
2. Commission Determination .................................................................................................................................................
B. Implementation ...........................................................................................................................................................................
1. NOPR Proposal .....................................................................................................................................................................
2. Comments .............................................................................................................................................................................
3. Commission Determination .................................................................................................................................................
IV. Notice of Use of Voluntary Consensus Standards ..........................................................................................................................
V. Incorporation by Reference ...............................................................................................................................................................
VI. Information Collection Statement ...................................................................................................................................................
VII. Environmental Analysis ..................................................................................................................................................................
VIII. Regulatory Flexibility Act .............................................................................................................................................................
IX. Document Availability .....................................................................................................................................................................
X. Effective Date and Congressional Notification .................................................................................................................................
1. The Federal Energy Regulatory
Commission (Commission) is amending
its regulations under the Federal Power
Act (FPA) 1 to incorporate by reference
into its regulations as mandatory
enforceable requirements, the latest
1 16
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version (Version 003.3) of the Standards
for Business Practices and
Communication Protocols for Public
Utilities adopted by the Wholesale
Electric Quadrant (WEQ) of the North
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Federal Register / Vol. 86, No. 104 / Wednesday, June 2, 2021 / Rules and Regulations
American Energy Standards Board
(NAESB), filed with the Commission on
March 30, 2020 (March 30 Filing). The
WEQ Version 003.3 Standards build
upon an earlier version of the standards
that the Commission previously
included and incorporated by reference
into its regulations at 18 CFR parts 2
and 38, respectively, in Order No. 676–
I.2
2. The WEQ Version 003.3 Standards
include newly created standards as well
as modifications to existing standards
developed through the NAESB Business
Practice Standards development or
minor correction processes. The WEQ
Version 003.3 Standards include
revisions related to the surety
assessment on cybersecurity performed
by Sandia National Laboratories
(Sandia) designed to strengthen the
practices and cybersecurity protections
established within the standards.
NAESB also revised its Open Access
Same-Time Information System (OASIS)
suite of standards,3 including revisions
to support new OASIS functionality that
will allow for the posting of third party
offers of planning redispatch services as
well as providing additional
information regarding the curtailment of
firm transmission service. In addition,
the WEQ Version 003.3 Standards
include revisions to the NAESB WEQ–
023 Modeling Business Practice
Standards. The Commission also revises
18 CFR 37.6(b)(2)(i) to codify that the
calculation of Available Transfer
Capability (ATC) must be conducted in
manner that is transparent, consistent
with system conditions and outages for
the relevant timeframe, and not unduly
discriminatory or preferential.
I. Background
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A. NAESB and Past Standards
3. NAESB is a non-profit standards
development organization established in
late 2001 (as the successor to the Gas
Industry Standards Board (GISB), which
was established in 1994) and serves as
an industry forum for the development
of business practice standards and
communication protocols for the
wholesale and retail natural gas and
electricity industry sectors. Since 1995,
NAESB’s predecessor GISB and
subsequently NAESB itself have been
accredited members of the American
2 Standards for Bus. Practices & Commc’n
Protocols for Pub. Utils., Order No. 676–I, 85 FR
10,571 (Feb. 25, 2020), 170 FERC ¶ 61,062 (2020).
3 The OASIS suite of standards are the WEQ–001
OASIS Business Practice Standards, the WEQ–002
OASIS Standards and Communication Protocols
Business Practice Standards, the WEQ–003 OASIS
Data Dictionary Business Practice Standards, and
the WEQ–013 OASIS Implementation Guide
Business Practice Standards.
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National Standards Institute (ANSI),
complying with ANSI’s requirements
that its standards reflect a consensus of
the affected industries.4
4. NAESB’s standards include
business practices intended to
standardize and streamline the
transactional processes of the natural
gas and electric industries, as well as
communication protocols and related
standards designed to improve the
efficiency of communication within
each industry. NAESB supports all three
‘‘quadrants’’ of the gas and electric
industries: wholesale gas, wholesale
electric, and retail markets.5 All
participants in the gas and electric
industries are eligible to join NAESB
and participate in standards
development.
5. NAESB develops its standards
under a consensus process so that the
standards draw support from a wide
range of industry members. NAESB’s
procedures are designed to ensure that
all persons choosing to participate can
have input into the development of a
standard, regardless of whether they are
members of NAESB, and each standard
NAESB adopts must be supported by a
consensus of the relevant industry
segments. Standards that fail to gain
consensus support are not adopted.
NAESB’s consistent practice has been to
submit a report to the Commission after
it has revised existing business practice
standards or has developed and adopted
new business practice standards.
NAESB’s standards are initially
voluntary standards, which become
mandatory for public utilities upon
incorporation by reference by the
Commission.
6. NAESB filed its WEQ Version 003.2
Business Practices Standards (WEQ
Version 003.2 Standards) on December
8, 2017 (December 8 Filing), in Docket
No. RM05–5–027.6 After consideration
of the December 8 Filing, the
Commission issued the WEQ Version
4 Prior to the establishment of NAESB in 2001,
the Commission’s development of business practice
standards for the wholesale electric industry was
aided by two ad hoc industry working groups
established during the rulemaking proceeding that
resulted in issuance of Order No. 889 and the
creation of the OASIS, while GISB’s efforts involved
the development of business practice standards for
the wholesale natural gas industry. Once formally
established, NAESB took over the standards
development previously handled by GISB and by
the electric working groups.
5 The retail gas quadrant and the retail electric
quadrant were combined into the retail markets
quadrant. NAESB continues to refer to these
working groups as ‘‘quadrants’’ even though there
are now only three quadrants.
6 See Docket No. RM05–5–027, Report of the
North American Energy Standards Board on
Wholesale Electric Quadrant Business Practice
Standards Version 003.2 under RM05–5 (Dec. 8,
2017) (NAESB WEQ Version 003.2 Report).
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003.2 NOPR on May 16, 2019, wherein
the Commission proposed to revise its
regulations to incorporate by reference
the WEQ Version 003.2 Standards, with
certain enumerated exceptions.7 The
Commission announced that NAESB’s
WEQ–023 Modeling Business Practice
Standards would be addressed
separately, proposing only to
incorporate by reference the WEQ–023
Modeling Business Practice Standards
that were moved from the WEQ–001
OASIS Business Practice Standards by
the changes made to the WEQ Version
003.1 Standards.8
7. On February 4, 2020, the
Commission issued Order No. 676–I, in
which it amended its regulations under
the FPA to incorporate by reference into
its regulations as mandatory enforceable
requirements, with certain enumerated
exceptions, the WEQ Version 003.2
Standards. The WEQ Version 003.2
Standards included the changes
proposed in WEQ Version 003.1
Standards, which were the subject of an
earlier notice of proposed rulemaking.9
All of these standards, except for the
WEQ–022 and WEQ–023 Business
Practice Standards, update and replace
standards that the Commission
previously incorporated by reference in
Order No. 676–H.
8. Among the NAESB Business
Practice Standards incorporated by
reference in Order No. 676–I, the
Commission incorporated the WEQ–022
Electric Industry Registry (EIR) Business
Practice Standards, but did not
incorporate by reference in its entirety
the WEQ–023 Modeling Business
Practice Standards. The Commission
only incorporated by reference the
WEQ–023 Modeling Business Practice
Standards that were moved from the
WEQ–001 OASIS Business Practice
Standards by the changes made to the
WEQ Version 003.1 Standards.10 The
Commission also did not adopt the
NOPR proposal to incorporate by
7 See Standards for Bus. Practices & Commc’n
Protocols for Pub. Utils., Notice of Proposed
Rulemaking, 84 FR 24050 (May 16, 2019), 167 FERC
¶ 61,127 (2019) (WEQ Version 003.2 NOPR).
8 WEQ Version 003.2 NOPR, 167 FERC ¶ 61,127
at P 12. See also Standards for Bus. Practices &
Commc’n Protocols for Pub. Utils., Notice of
Proposed Rulemaking, 81 FR 49580 (Jul. 28, 2016),
156 FERC ¶ 61,055, at P 42 (2016) (WEQ Version
003.1 NOPR).
9 NAESB filed the WEQ Version 003.1 Standards
on October 26, 2015 (October 2015 Filing). See, e.g.,
WEQ Version 003.1 NOPR, 156 FERC ¶ 61,055.
10 The following WEQ–023 Modeling Business
Practice Standards were incorporated by reference
in Order No. 676–I: WEQ–023–5; WEQ–023–5.1;
WEQ–023–5.1.1; WEQ–023–5.1.2; WEQ–023–
5.1.2.1; WEQ–023–5.1.2.2; WEQ–023–5.1.2.3;
WEQ–023–5.1.3; WEQ–023–5.2; WEQ–023–6;
WEQ–023–6.1; WEQ–023–6.1.1; WEQ–023–6.1.2;
and WEQ–023–A Appendix A.
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reference NAESB’s latest version of the
WEQ–006 Manual Time Error
Correction Business Practice Standards.
B. Summary of NAESB WEQ Version
003.3
9. On March 30, 2020, NAESB filed
the WEQ Version 003.3 Standards.11
The WEQ Version 003.3 Standards build
upon the standards included in the
WEQ Version 003.2 Standards. After
consideration of the March 30 Filing,
the Commission issued the WEQ
Version 003.3 NOPR on July 16, 2020,
wherein the Commission proposed to
incorporate the WEQ Version 003.3
Standards, with certain enumerated
exceptions.12
10. NAESB’s WEQ Version 003.3
Standards include newly created
standards as well as modifications to
existing standards developed through
the NAESB Business Practice Standards
development or minor correction
processes.13 The WEQ Version 003.3
Standards also include additions and
revisions to the NAESB WEQ–023
Modeling Business Practice Standards,
which the Commission addresses
herein.
11. The WEQ Version 003.3 Standards
include revisions related to the surety
assessment on cybersecurity performed
by Sandia. NAESB responded to a U.S.
Department of Energy (DOE) request
that NAESB act on an expedited basis to
ensure the WEQ cybersecurity standards
developed in response to the surety
assessment were included in the WEQ
Version 003.3 Standards.14 NAESB
reports that the changes strengthen the
practices and cybersecurity protections
established within the standards by
aligning security requirements with
other cybersecurity guidelines,
mitigating potential vulnerabilities, and
incorporating more secure
communication and encryption
methodologies.
12. In support of directives contained
in Order No. 890,15 NAESB also revised
the OASIS suite of standards. The WEQ
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11 See
NAESB WEQ Version 003.3 Report (filed
March 30, 2020).
12 Standards for Bus. Practices & Commc’n
Protocols for Pub. Utils., 85 FR 55201 (Sept. 4,
2020) 172 FERC ¶ 61,047 (2020) (WEQ Version
003.3 NOPR).
13 See NAESB WEQ Version 003.3 Report,
Transmittal at 1–2.
14 Id. at 3–4.
15 Preventing Undue Discrimination & Preference
in Transmission Serv., Order No. 890, 72 FR 12266
(Mar. 15, 2007), 118 FERC ¶ 61,119, order on reh’g,
Order No. 890–A, 73 FR 2984 (Jan. 16, 2008), 121
FERC ¶ 61,297 (2007), order on reh’g, Order No.
890–B, 123 FERC ¶ 61,299 (2008), order on reh’g,
Order No. 890–C, 74 FERC 12540 (Mar. 25 2009),
126 FERC ¶ 61,228, order on clarification, Order
No. 890–D, 74 FR 61511 (Nov. 25, 2009), 129 FERC
¶ 61,126 (2009).
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Version 003.3 Standards include
additions and revisions to support new
OASIS functionality that will allow for
the posting of third party offers of
planning redispatch services (WEQ–
001–13.2) as well as providing
additional information regarding the
curtailment of firm transmission service
(WEQ–001–28) prescribed in the OASIS
suite of standards.16 In response to
Order No. 676–I, NAESB also revised
the standards as necessary to conform
with the Commission’s Dynegy policy,
and stated that any standards from these
efforts will be incorporated into future
versions of the WEQ Business Practice
Standards.17
13. The WEQ Version 003.3 Standards
also include changes that were made to
support consistency with the North
American Electric Reliability
Corporation (NERC) Reliability
Standards, including NERC’s retirement
of the NERC Interchange Scheduling
and Coordination Reliability Standards
and retirement of the NERC Modeling,
Data, and Analysis Reliability
Standards. NAESB coordinated with
NERC to make modifications and
revisions pertaining to electronic
tagging (e-Tagging),18 and to the
calculation of ATC and AFC.19
14. The WEQ Version 003.3 Standards
also include additions, revisions, and
reservations made to the WEQ–008
Transmission Load Relief (TLR)—
Eastern Interconnection Business
Practice Standards, which NAESB
advises completes the standards
development effort for the Parallel Flow
Visualization (PFV) enhanced
congestion management process (PFV
Standards).20 The PFV Standards are the
culmination of a multi-year
coordination effort between NAESB,
NERC, and the Eastern Interconnect
Data Sharing Network (EIDSN), Inc.,21
16 NAESB WEQ Version 003.3 Report, Transmittal
at 4. WEQ–001–13.2 adds new Third Party Offers
for Planning Redispatch Services Business Practice
Standards to allow for posting of third-party offers
of planning redispatch services. WEQ–001–28 adds
new Curtailment Posting Requirements Business
Practice Standards for the posting of additional
information on OASIS regarding firm transmission
curtailments.
17 In Dynegy Power Marketing, Inc, 99 FERC
¶ 61,054 (2002) (Dynegy), the Commission
established its policy on a customer’s right to keep
its contractual rights to point-to-point firm
transmission service on the original path it has
reserved while the customer’s request for a redirect
is pending.
18 With respect to e-Tagging, NAESB also
modified the WEQ–004 Coordinate Interchange
Business Practice Standards’ Commercial Timing
Tables to clarify commercial timing requirements.
19 NAESB WEQ Version 003.3 Report, Transmittal
at 4.
20 Id.
21 Comprised of North American Reliability
Coordinators, Transmission Operators,
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and the standards are designed to
improve upon the congestion
management procedures for the Eastern
Interconnection through the use of realtime data in calculations for
transmission loading relief obligations.
15. Moreover, as part of the standards
development process, NAESB made five
additional revisions to the OASIS suite
of standards that were not made in
response to Commission orders.22 First,
NAESB modified the OASIS suite of
standards to improve OASIS query
functionalities. Second, NAESB
modified the OASIS suite of standards
for new OASIS functionality to fully
document all encumbrances to
unconditional firm transmission service,
such as untagged pseudo-ties. Third,
NAESB modified the OASIS suite of
standards to expand notice functionality
and establish standards for providing
dynamic notification to transmission
customers of the renewal deadline for
rollover rights for point-to-point
transmission service. Fourth, NAESB
modified WEQ–001 OASIS Business
Practice Standards for use of Next Hour
Market Service and the 0–NX
transmission product codes. Fifth,
NAESB modified the OASIS suite of
standards to modify Network Integration
Transmission Service (NITS)
requirements. Finally, NAESB revised
the OASIS suite of standards to make
three minor corrections.23
16. The WEQ Version 003.3 Standards
include the WEQ–023 Modeling
Business Practice Standards that
provide technical details concerning the
calculation of ATC for wholesale
electric transmission services. The
WEQ–023 Modeling Business Practice
Standards address aspects of certain of
the NERC MOD A Reliability Standards
relating to modeling, data and analysis
that are included in the NERC’s
proposed retirement of its MOD A
Reliability Standards.
II. Discussion
A. Overview
17. NAESB’s WEQ Version 003.3
Standards, which we are incorporating
by reference in this final rule, include
modifications, reservations, and/or
Transmission Owners, and Balancing Authorities,
EIDSN, Inc. manages the Electric Information
Network (EInet), a data-sharing network for its
members to promote the reliable and efficient
operation of the Eastern and Quebec
Interconnections. See EIDSN, Inc., Our Mission, at
https://eidsn.org/.
22 NAESB WEQ Version 003.3 Report, Transmittal
at 5.
23 Minor corrections were made to the WEQ–001
OASIS Business Practice Standards and the WEQ–
003 OASIS Data Dictionary Business Practice
Standards.
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additions to the following set of existing
standards: 24
WEQ
Business practice standards
000 ...............
Abbreviations, Acronyms, and
Definition of Terms.
Open Access Same-Time Information System (OASIS).
OASIS Standards and Communication Protocols
(S&CP).
OASIS S&CP Data Dictionaries.
Coordinate Interchange.
Transmission Loading Relief
(TLR)—Eastern Interconnection Business Practice Standards.
OASIS Implementation Guide.
Modeling.
001 ...............
002 ...............
003 ...............
004 ...............
008 ...............
013 ...............
023 ...............
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18. The specific NAESB standards
that we are incorporating by reference in
this final rule establish a set of business
practice standards and communication
protocols for the electric industry that
will continue to enable industry
members to achieve efficiencies by
streamlining utility business and
transactional processes and
communication procedures. All of these
standards, except for portions of the
WEQ–023 Modeling Business Practice
Standards, update and replace standards
that the Commission previously
incorporated by reference in Order No.
676–I.
19. As the Commission has explained
in prior orders, NAESB approved the
standards under its consensus
procedures.25 Adoption of consensus
standards is appropriate because the
consensus process helps ensure the
reasonableness of the standards by
requiring that the standards draw
support from a broad spectrum of all
segments of the industry. Moreover,
since the industry itself must conduct
business under these standards, the
Commission’s regulations should reflect
those standards that have the widest
24 See NAESB WEQ Version 003.3 Report,
Transmittal at 3.
25 Standards for Business Practices and
Communication Protocols for Public Utilities, Order
No. 676–H, 79 FR 56939 (Sept. 24, 2015), 148 FERC
¶ 61,205, at P 21, n.27 (2014). (‘‘WEQ’s procedures
ensure that all industry members can have input
into the development of a business practice
standard, whether or not they are members of
NAESB, and each standard it adopts is supported
by a consensus of the seven industry segments:
Transmission, generation, marketer/brokers,
distribution/load serving entities, end users,
independent grid operators/planners, and
technology services. Under the WEQ process, for a
standard to be approved, it must receive a supermajority vote of 67 percent of the members of the
WEQ’s Executive Committee with support from at
least 40 percent of each of the seven industry
segments. For final approval, 67 percent of the
WEQ’s general membership must ratify the
standards.’’).
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possible support. In section 12(d) of the
National Technology Transfer and
Advancement Act of 1995, Congress
affirmatively requires federal agencies to
use technical standards developed by
voluntary consensus standards
organizations, like NAESB, to carry out
policy objectives or activities.26
B. Issues Raised by Commenters
20. Comments in response to the WEQ
Version 003.3 NOPR were filed by four
commenters. Commenters expressed
general support for the Commission’s
proposals,27 and no comments opposed
the basic direction of the NOPR,
although some commenters took issue
with specific details of the NOPR
proposal. Specifically, commenters
raised discrete concerns regarding the
WEQ–023 Business Practice Standards
and the Commission’s proposed
regulatory text regarding nondiscriminatory ATC calculations.
Commenters also commented on
whether the Commission should require
industry to implement WEQ Version
003.2 prior to WEQ Version 003.3, or
instead should cancel the
implementation obligation of WEQ
Version 003.2 and require
implementation of all accepted WEQ
Version 003.3 Business Practice
Standards (including WEQ 003.2
changes) within 18 months. We will
incorporate by reference into the
Commission’s regulations all of the
WEQ Version 003.3 Standards and
amend the regulatory text at
§ 37.6(b)(2)(i) as described below. We
will separately discuss each of the
issues raised by commenters.
1. Changes to OASIS
a. Background
21. Order No. 890 requires
transmission providers to post to OASIS
‘‘all circumstances and events
contributing to the need for a firm
service curtailment, specific services
and customers curtailed (including the
transmission provider’s own retail
loads), and the duration of the
curtailment.’’ 28 As the Commission
explained in the NOPR, NAESB made
additional modifications to the OASIS
suite of standards, as well as
consistency changes to WEQ–000
Abbreviations, Acronyms, and
Definition of Terms Business Practice
26 Public Law 104–113, 12(d), 110 Stat. 775
(1996), 15 U.S.C. 272 note (1997).
27 The ISO/RTO Council specifically endorsed the
WEQ Version 003.3 NOPR proposal to incorporate
by reference business practice standards necessary
to effectuate the PFV enhanced congestion
management process. ISO/RTO Council Comments
at 2, 4–5.
28 Order No. 890, 118 FERC ¶ 61,119 at P 1627.
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Standards. NAESB’s changes to the
standards included modifications to
existing templates and the creation of
two new templates to provide the
mechanism for transmission providers
to post the required additional
information regarding the curtailment of
firm transmission service, including the
curtailment of non-firm transmission
service that preceded any firm
transmission curtailments.
22. The information needed to meet
the posting requirements is contained in
two separate tools: The Interchange
Distribution Calculator (IDC) tool for the
Eastern Interconnection, managed by
EIDSN, Inc., and the Enhanced
Curtailment Calculator (ECC) tool for
the Western Interconnection, managed
by the California Independent System
Operator. Although both the IDC and
ECC tools produce information to be
posted to OASIS in accordance with the
standards, NAESB states that its
members determined that the need for a
mechanism to transfer data from the
tools to OASIS should be addressed as
part of any industry implementation
rather than through standards
modifications.
b. Comments
23. The ISO/RTO Council states that
it supports an automated mechanism to
transfer data from the IDC/ECC tools to
the firm transmission curtailment
templates.29 The ISO/RTO Council
states that it currently is unclear
whether firm curtailment information
must be posted manually prior to the
implementation of an automated data
transfer mechanism.30 The ISO/RTO
Council contends that manually
populating firm curtailment data into
the templates is administratively
burdensome and introduces the
potential for human (data entry) error,
and automated data transfer results in a
more reliable, accurate and equitable
posting process.31 The ISO/RTO
Council requests that the Commission
clarify that manual postings will not be
required as an interim means to achieve
compliance while the automated data
transfer mechanism is being developed
per the implementation schedule for the
WEQ Version 003.3 Standards.
c. Commission Determination
24. Because of the importance of
posting information regarding firm
curtailments, we will not delay
implementation while industry
develops a more automated data transfer
mechanism. NAESB states that its
29 ISO/RTO
Council Comments at 13.
30 Id.
31 Id.
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members determined that the need for a
mechanism to transfer data from the
tools to OASIS should be addressed as
part of any industry implementation
rather than as part of the standards
modifications. While we encourage the
industry to develop automated tools as
quickly as possible, we agree that this
effort should be independent from the
development and implementation of the
standards.
2. Incorporation of WEQ–023 Standards
1.4 and 1.4.1
a. Background
25. The WEQ–023 Business Practice
Standards include two new standards
related to contract path management not
previously included in the NERC MOD
A Reliability Standards. These two
Business Practice Standards, WEQ–023–
1.4 and WEQ–023–1.4.1, limit the
amount of firm transmission service
granted on an ATC Path and limit the
interchange schedule (both firm and
non-firm) between balancing authority
areas to the contract path limit for that
given path, respectively.32
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b. Comments
26. Bonneville Power Administration
(Bonneville) and the ISO/RTO Council
ask the Commission to decline to
incorporate by reference these
Standards. Bonneville asserts that the
WEQ–023–1.4 and WEQ–023–1.4.1
Business Practice Standards need
further refinement by the industry
before they are ready for incorporation
by reference, if at all. Bonneville states
that these Standards appear to be
inconsistent with how Bonneville and
other transmission service providers
and system operators in the Western
Interconnection operate their systems.
Bonneville explains that, for itself and
others, an ATC Path is allowed to be
overscheduled up to twenty minutes
prior to flow, at which point
interruptions of non-firm service,
32 WEQ–023 1.4 states, ‘‘[e]ach Transmission
Service Provider shall not grant a request for Firm
Transmission Service on an ATC Path that serves
as an interface with another BAA if the net of the
Firm Transmission Service transactions into and
out of the Transmission Service Provider’s BAA
would exceed the sum of the Facility Ratings of Tie
Facilities, to which Transmission Service Providers
mutually agree they have the right to use Tie
Facilities that comprise the ATC Path, between the
two BAAs.’’
WEQ–023 1.4.1 states, ‘‘[e]ach Transmission
Service Provider shall limit the Interchange
Schedule (both Firm and non-Firm) of the
reservations on an ATC path into and out of
Transmission Service Provider’s BAA on an
interface with another BAA such that the Net
Interchange Schedule does not exceed the sum of
the Facility Ratings of Tie Facilities, to which
Transmission Service Providers mutually agree they
have the right to use the Tie Facilities that comprise
the ATC Path, between the two BAAs.
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curtailments, or economic dispatches,
are then performed to ensure that path
limits are not exceeded. Bonneville
further states that this practice allows it
to maximize transmission utilization
including the integration of variable
resources scheduled within the hour,
and that these requirements, if
incorporated by reference as drafted,
would restrict energy supply and
transmission availability.33
27. Bonneville contends that its
concerns with Business Practice
Standards WEQ–023–1.4 and 1.4.1 are
particularly relevant in light of the
recent heat wave events of August and
September 2020 in California.
Bonneville asserts that eliminating the
practice of over-scheduling until the
final twenty minutes prior to flow on
transmission facilities such as the
California-Oregon Intertie could
artificially restrict energy supply and
transmission availability.34
28. The ISO/RTO Council joins
Bonneville in opposing WEQ–023–1.4
and 1.4.1 Business Practice Standards,
stating that requiring transmission
service providers to assume all firm
transmission service reservations will be
used in full, without accounting for the
transmission customer’s scheduling
activity, ‘‘will undoubtedly result in less
efficient use of the transmission
system.’’ The ISO/RTO Council also
expresses concern that under system
conditions which include the sudden,
unexpected outage or de-rate of a
transmission facility associated with an
ATC path, there may not be sufficient
time to adjust posted ATC or modify the
current interchange, which could lead
to a violation of the requirement.35
29. The ISO/RTO Council notes that
WEQ–023–1.4 and 1.4.1 Business
Practice Standards were initially
rejected by the NAESB Business
Practices Subcommittee, and that the
ISO/RTO Council and other entities,
including PJM Interconnection LLC,
Midcontinent Independent System
Operator, Inc., Southwest Power Pool,
Electric Reliability Council Of Texas,
Inc., and the Independent Electricity
System Operator of Ontario, raised
concerns that remain unresolved.36
c. Commission Determination
30. We incorporate by reference all of
the WEQ–023 Modeling Business
Practice Standards. The WEQ–023
Business Practice Standards were filed
in October 2015 and were the product
of an extensive development process by
33 Bonneville
Comments at 4.
at 5.
35 ISO/RTO Council Comments at 9.
36 Id.
34 Id.
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29495
a NAESB subcommittee with the
necessary expertise to address the
relevant technical issues. Although
WEQ–023–1.4 and 1.4.1 Business
Practice Standards were not in NERC’s
MOD A Reliability Standards, they were
proposed to help address differences in
how contract paths are treated that
would have existed among the three
methods for calculating ATC: Rated
System Path Methodology, Area
Interchange Methodology, and Flowgate
Methodology. Declining to adopt these
standards at this point could potentially
loosen the requirements for nondiscriminatory calculation of ATC and
may require changes to specific
standards regarding particular contract
paths. Given the deliberately broad
nature of these standards, the record
does not show that current business
practices, such as a response to a
sudden de-rate or outage referenced by
the ISO/RTO Council, would
necessarily be considered a violation of
the standards.
31. Moreover, a consensus of the
industry approved these standards with
Bonneville, MISO and ISO–NE voting in
favor at the WEQ stakeholders meeting,
while no ISO/RTO and only one utility
voted in opposition. In reviewing these
standards, the Commission relies
heavily on the consensus expertise of
the NAESB membership.37 Concerns
with the NAESB Business Practice
Standards therefore should be raised
within the NAESB process, and the
industry should seek to resolve any
issues therein and, if they cannot, the
parties need to provide a factual record
for the Commission to consider the
issue.38
32. Bonneville and the ISO/RTO
Council have raised concerns with
whether implementation of these
standards in all cases will result in a
loss of scheduling flexibility without the
risk of overscheduling. We therefore
remind these parties that, as further
discussed in P 41, we remain open to
examining requests for waivers of these
standards when utilities make
compliance filings.39 Such requests
37 Standards for Business Practices of Interstate
Natural Gas Pipelines; Order No. 587, 61 FR 39,053,
39057 (July 26, 1996), FERC Stats. & Regs. ¶ 31,038,
at 30.059 (1996) (cross-referenced at 76 FERC
¶ 61042) (‘‘Since it is the industry that must operate
under these standards, deferring to the considered
judgment of the consensus of the industry is both
reasonable and appropriate.’’).
38 See Standards for Bus. Practices of Interstate
Nat. Gas Pipelines, Order No. 587–G, 63 FR 20072,
20076–80 (Apr. 23, 1998), FERC Stats. & Regs.
¶ 31,062, at 30,668–74 (1998) (cross-referenced at 83
FERC ¶ 61,029) (Commission resolved issue on
which NAESB’s predecessor, the Gas Industry
Standards Board, could not reach consensus).
39 Order No. 676–H, 148 FERC ¶ 61,205 at P 80.
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should explain why the filing parties
believe their current practices violate
the standards and why their practices
should be considered equal or superior
to the standards in preventing
overscheduling while providing for
more flexibility or other benefits in
scheduling. We urge NAESB to consider
the issues raised by Bonneville and the
ISO/RTO Council and whether revisions
to these standards are warranted. The
Commission also is mindful of the
consideration of the potential benefits of
maximizing the use of transmission
when appropriate, without
compromising reliability, and
maintaining flexibility to maximize
transmission utilization as conditions
change, and has scheduled a workshop
that may consider these issues.40
3. Changes to the Regulatory Text
a. Background
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33. The Commission sought comment
on proposed additional regulatory text
in 18 CFR 37.6 (information to be posted
on the OASIS) stating that transmission
provider ATC calculations must be
transparent, consistent, and not unduly
discriminatory or preferential.
Specifically, the Commission proposed
to make the revisions indicated below to
the regulatory text in 18 CFR
37.6(b)(2)(i):
Information used to calculate any
posting of ATC and TTC must be dated
and time-stamped and all calculations
shall be performed according to
consistently applied methodologies
referenced in the Transmission
Provider’s transmission tariff and shall
be based on Commission-approved
[Reliability Standards,] business
practice and electronic communication
standards, and related implementation
documents, as well as current industry
practices, standards and criteria.
Transmission Providers shall calculate
ATC and TTC in coordination with and
consistent with capability and usage on
neighboring systems, calculate system
capability using factors derived from
operations and planning data for the
time frame for which data are being
posted (including anticipated outages),
and update ATC and TTC calculations
as inputs change. Such calculations
shall be conducted in a manner that is
transparent, consistent, and not unduly
discriminatory or preferential.41
40 Electric Transmission Incentives Policy Under
Section 219 of the Federal Power Act, Notice of
Workshop, RM20–10–000 & AD19–19–000 (Apr. 15,
2021). The workshop is scheduled for September
10, 2021.
41 Additions to the regulatory text are indicated
by italics. Deletions from the regulatory text are
indicated by [brackets.]
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34. The NOPR explained that ‘‘this
proposed regulation, in conjunction
with the WEQ–023 Modeling Business
Practice Standards, will help ensure that
all transmission customers will be
treated fairly when seeking alternative
power supplies, and will provide for
comparable and not unduly
discriminatory or preferential treatment
of native load customers and
transmission service customers.’’ 42 The
Commission also sought comment on
whether it should develop new
regulations outside of the NAESB
standards development process ‘‘to
maintain the current level of detail
related to ATC calculations; if so, what
level of detail those regulations should
have.’’ 43
b. Comments
35. Four commenters oppose the
Commission’s proposed changes to the
regulatory text. No commenters filed in
support of the proposal. Bonneville and
the Edison Electric Institute (EEI) assert
that the Commission’s proposed
language is unnecessary. Bonneville
further asserts that the regulatory
changes circumvent the NAESB process
sanctioned by the Commission for the
development of standards, and that the
Commission’s regulations are not the
appropriate place to address technical
details involving the calculation of ATC
and TTC. In particular, Bonneville
maintains that the Commission’s
proposed language includes ambiguous
references to technical concepts such as
‘‘factors derived from operations and
planning data’’ in the calculation of
ATC and TTC.44 EEI contends that
revisions should occur through
NAESB’s standard development
process, and that the directives in Order
No. 890 and related provisions in the
pro forma OATT are sufficient to ensure
that ATC calculation is consistent and
non-discriminatory. EEI also notes that
in Order No. 890, the Commission
acknowledged its reliance on NAESB for
the development of business practice
standards.45
36. The ISO/RTO Council disagrees
with the concerns expressed in the
NOPR about the opportunity for
discriminatory practices and
transmission provider discretion in the
42 WEQ Version 003.3 NOPR, 172 FERC ¶ 61,047
at P 49 (citing Mandatory Reliability Standards for
the Calculation of Available Transfer Capability,
Capacity Benefit Margins, Transmission Reliability
Margins, Total Transfer Capability, & Existing
Transmission Commitments & Mandatory
Reliability Standards for the Bulk-Power Sys., Order
No. 729, 74 FR 64884 (Dec. 8, 2009), 129 FERC
¶ 61,155, at P 2 (2009)).
43 Id.
44 Bonneville Comments at 3.
45 EEI Comments at 3.
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calculation of ATC and AFC, stating that
the WEQ–023 Modeling Business
Practice Standards ‘‘were extensively
vetted through NAESB’s industry-wide
standards development process where
any comments received regarding the
lesser degree of detail in the standards
were successfully addressed prior to
NAESB ratification.’’ 46 The ISO/RTO
Council contends that the WEQ–023
Modeling Business Practice Standards
ensure non-discriminatory practices and
limit transmission provider discretion
by requiring each transmission service
provider to publish its ATC calculation
methodology, and to describe its
methodology in its ATC implementation
document such that, given the same
information used by the transmission
service provider, the ATC calculations
are reproducible and can be validated.47
37. Similarly, Open Access
Technology International, Inc. (OATI)
maintains that the NAESB standards
development process is the best way to
draft standards through an open,
transparent, and industry participant
driven process. It states that standards
developed through this process would
help the Commission avoid the
imposition of unintentional and
unnecessary regulatory changes.48 All
four commenters agree that, if the
Commission determines that the WEQ–
023 Modeling Business Practice
Standards are insufficient, it should
encourage NAESB to provide additional
details and specific standards to address
those shortcomings.
c. Commission Determination
38. We adopt the NOPR proposal,
with certain revisions. We recognize
that commenters oppose adding these
criteria to the Commission’s regulations,
but after consideration of their
arguments we continue to believe that
revisions to the Commission’s
regulations are necessary to ensure that
transmission provider ATC calculations
are transparent, consistent with
anticipated system conditions and
outages for the relevant timeframe, and
not unduly discriminatory or
preferential. However, in response to
concerns raised in comments, we will
not include detailed technical criteria in
the regulations, but we will instead
include the fundamentals of Order No.
890 requirements for calculating ATC,
which is consistent with what the
Commission proposed in the NOPR. The
46 ISO/RTO
Council Comments at 7.
at 7–8.
48 OATI Comments at 5.
47 Id.
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regulatory text will read as shown
below.49
Information used to calculate any posting
of ATC and TTC must be dated and timestamped and all calculations shall be
performed according to consistently applied
methodologies referenced in the
Transmission Provider’s transmission tariff
and shall be based on Commission-approved
[Reliability Standards,] business practice and
electronic communication standards, and
related implementation documents, as well
as current industry practices, standards and
criteria. Such calculations shall be conducted
in a manner that is transparent, consistent
with anticipated system conditions and
outages for the relevant timeframe, and not
unduly discriminatory or preferential.
39. The revised regulatory text
properly references the WEQ Business
Practice Standards in place of the NERC
Mod A Reliability Standards that have
been proposed for retirement. It also
includes in the regulation Order No.
890’s fundamental requirement that
transmission provider ATC calculations
must be transparent, consistent with
anticipated system conditions and
outages for the relevant timeframe, and
not unduly discriminatory or
preferential, but without introducing
specific technical concepts that may be
subject to differing interpretations.50 We
adopt this regulatory text because it has
the advantage of removing the most
objectionable language opposed by
commenters while including the
fundamental requirements in Order No.
890, including that the determination of
ATC must not be unduly discriminatory
or preferential.
40. Commenters do not indicate a
need at this time for additional ATC
standards or for the Commission to
develop further regulations outside of
the NAESB standards development
process. The industry, through the
NAESB process, should continue to
consider further refinements to these
standards to improve the accuracy of
these calculations.
III. Waiver Requests and
Implementation Issues
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A. Waiver Requests
1. Comments
41. The ISO/RTO Council asks the
Commission to continue to acknowledge
in its final rule that, consistent with
Commission precedent and currentlyeffective policy, each public utility may
seek as part of its compliance filing
waiver of new or revised standards in
49 Additions to the current regulatory text at 18
CFR 37.6(b)(2)(i) are indicated by italics. Deletions
to the regulatory text are indicated by [brackets.]
50 See, e.g., Order No. 890, 118 FERC ¶ 61,119 at
P 2.
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the WEQ Version 003.3 Standards, and
renewal of existing waivers previously
granted by the Commission. The ISO/
RTO Council requests a similar
clarification be included in the final
rule for this proceeding.51
2. Commission Determination
42. Public utilities may seek waiver of
the standards for newly developed or
newly revised standards and for the
renewal of existing waivers. Our policy
on when these waivers will be granted
or denied is not being changed in this
final rule. The Commission has
previously stated that if a public utility
asserts that its circumstances warrant a
continued waiver of the regulations, the
public utility may file a request for a
waiver wherein the public utility can
detail the circumstances that it believes
warrant a waiver.52 In its request for
continued waiver, the public utility
must include the date, docket number,
and explanation for why the waiver was
initially granted by the Commission.
The Commission will decide on any
such waiver request on a case-by-case
basis, and absent a Commissionapproved waiver, compliance with the
standards is required by all public
utilities.
B. Implementation
1. NOPR Proposal
43. In the WEQ Version 003.3 NOPR,
the Commission proposed to implement
the WEQ Version 003.3 Standards, other
than those related to cybersecurity,
under an 18-month implementation
timeline. The Commission requested
comments on how best to proceed with
the implementation of the remaining
WEQ 003.3 Standards, including the
standards related to PFV and those
related to OASIS. Specifically, the
Commission requested comments on
whether the Commission should require
the industry to implement WEQ Version
003.2 prior to WEQ Version 003.3, or,
alternatively, cancel the implementation
obligation of WEQ Version 003.2 and
instead require implementation of all
accepted WEQ Version 003.3 Standards,
including the WEQ Version 003.2
Standards, within 18 months.53
51 ISO/RTO
Council Comments at 13–14.
Standards for Business Practices and
Communication Protocols for Public Utilities, Order
No. 676–E, 74 FERC 63288 (Dec. 3, 2009), 129 FERC
¶ 61,162, at P 107 (2009).
53 This would include all WEQ Version 003.3
Standards except for the WEQ cybersecurity
standards which have an earlier implementation
timeline, as discussed in the NOPR, as well as the
implementation of the NAESB ATC-related
standards contained in WEQ–023, which will be
coordinated with the retirement of the NERC MOD
A Reliability Standards.
52 See
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29497
2. Comments
44. Bonneville, EEI and OATI states
the WEQ Version 003.2 Standards and
the WEQ Version 003.3 Standards
should have distinct, sequential
implementation timelines that are
separate and do not overlap.54
Bonneville states work is underway
within the industry to implement the
WEQ Version 003.2 Standards which
should not be interrupted due to the
Commission’s adoption of the WEQ
Version 003.3 Standards.55 EEI states
the implementation of the different
versions simultaneously are not
necessarily simple upgrades, and OASIS
updates, training and testing are
required for successful
implementation.56 OATI states separate
implementation schedules will prevent
wasted industry effort and cost.57
45. OATI states that the Commission’s
proposed 18 month implementation
period for the WEQ Version 003.3
Standards should begin after the
implementation period for WEQ Version
003.2 Standards ends.58 Bonneville,
however, recommends a shorter
implementation period of at least 12
months, also starting no sooner than the
final compliance deadline for the WEQ
Version 003.2 Standards.59 The ISO/
RTO Council also supports an
implementation date in October 2022
for the WEQ Version 3.3 Standards and
recommends that the Commission
provide public utilities with the option
of implementing the WEQ Version 003.2
Standards either: (a) In October 2021
under the current implementation
timeline for the WEQ Version 003.2
Standards and prior to WEQ Version
003.3 Standards; or (b) in October 2022
simultaneously with the WEQ Version
003.3 Standards.60 The ISO/RTO
Council states that the Commission
should also permit parties to submit a
single compliance filing and intended
implementation schedule for both WEQ
Version 003.2 Standards and WEQ
Version 003.3 Standards.61
46. The ISO/RTO Council also
requests that the PFV Standards be
implemented on an expedited timeline
similar to the timeframe for the WEQ
cybersecurity standards that is separate
from the rest of the proposed
modifications in the WEQ Version 003.3
54 Bonneville Comments at 5; EEI Comments at 2–
3, 6; OATI Comments at 2.
55 Bonneville Comments at 5.
56 EEI Comments at 6.
57 OATI Comments at 3.
58 Id. at 4.
59 Bonneville Comments at 5.
60 ISO/RTO Council Comments at 3.
61 Id. at 11–12.
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Standards.62 The ISO/RTO Council
states that the PFV Standards’ enhanced
congestion process will more accurately
account for internal flows (i.e., network
and native load calculations) by
incorporating the use of real-time data
into relief obligations calculated by the
IDC.
47. Moreover, the ISO/RTO Council
requests that the Commission ensure
that the implementation timeline
account for any external dependencies
and system changes beyond a public
utility’s control but necessary for a
public utility’s implementation and
compliance with the WEQ Version
003.3 Standards.63 For example,
Bonneville and the ISO/RTO Council
reference new requirements for posting
TLR curtailment on a public utilities’
OASIS. This new TLR requirement
necessitates certain changes to and/or
information sourced from the
Interchange Distribution Calculator/
Enhanced Curtailment Calculator (IDC/
ECC) tools 64 in order to coordinate with
the OASIS system enhancements.65
With respect to the modification of
WEQ–001 addressing the OASIS
curtailment postings, which requires
data from the ECC tool to meet the
posting requirements, Bonneville states
the implementation timeline should be
at least six months from the time that a
mechanism is made available to access
data from the ECC.66
3. Commission Determination
48. The Commission recognized in the
WEQ Version 003.3 NOPR the potential
for confusion through implementation
of Version 003.3 either immediately
after or simultaneously with Version
003.2 implementation. In light of
commenters’ explanations as to the time
needed and complexities involved to
plan and complete the tasks associated
in implementing the WEQ Version 003.2
Standards, we will not require the two
implementation timelines for the WEQ
Version 003.2 Standards and the WEQ
Version 003.3 Standards to run
concurrently. Accordingly, public
utilities will continue to implement the
changes incorporated by reference in
Order No. 676–I, for the WEQ Version
003.2 Standards, under the current
implementation timeline ending
October 2021.67 For the WEQ Version
003.3 Standards incorporated by
reference in this final rule,68 we
conclude that a 15-month
implementation period, beginning after
the completion of the implementation
timeline for the WEQ Version 003.2
Standards, is sufficient for
implementation of the WEQ Version
003.3 Standards..69 As a result, public
utilities will submit two compliance
filings: the compliance filing for the
WEQ Version 003.2 Standards will
remain due July 27, 2021, with
implementation no earlier than October
27, 2021, and the compliance filing for
the WEQ Version 003.3 Standards,
which we incorporate by reference in
this final rule, will be due 12 months
after implementation of the WEQ
Version 003.2 Standards, or no earlier
than October 27, 2022. Again, the
Commission will determine an
implementation date for the WEQ
Version 003.3 Standards following the
acceptance of the compliance filings, no
earlier than three months following
their submission (i.e., not before January
27, 2023), resulting in a 15-month
implementation period. We decline to
adopt the ISO/RTO Council’s proposal
to require both the WEQ Version 003.2
Standards and the WEQ Version 003.3
Standards to be incorporated using the
same timeline, with both due to be
implemented by October 2022. Delaying
the current implementation timeline for
the WEQ Version 003.2 Standards could
result in additional industry effort and
complicate implementation of the WEQ
Version 003.3 Standards.
49. As noted above, for the revisions
related to the surety assessment on
cybersecurity performed by Sandia,
which were included in the WEQ
Version 003.3 Standards,70 we will
require industry filers to submit
compliance filings for these revised
WEQ cybersecurity standards nine
months after the publication of a final
rule in this proceeding, with
implementation required no sooner than
three months after compliance filings
are submitted to the Commission, for a
total implementation period of at least
12 months from the issuance of this
final rule. Moreover, we agree with the
ISO/RTO Council request that the PFV
Standards be implemented on the same
expedited timeline provided for the
WEQ cybersecurity standards, that is,
separate and apart from the
implementation of the rest of the
proposed modifications in the WEQ
Version 003.3 Standards. As a result, we
will require industry filers to also
submit compliance filings for the PFV
Standards, nine months after the
publication of this final rule, with
implementation required no sooner than
three months after compliance filings
are submitted to the Commission, for a
total implementation period of at least
twelve months.
50. SUMMARY OF COMPLIANCE FILINGS AND IMPLEMENTATION DEADLINES
Business practice standards
WEQ Version 003.3 71 .........
Cybersecurity .......................
PFV ......................................
Compliance filings due
12 months after implementation of the WEQ Version No earlier than 3 months following compliance filings
003.2 Standards, or no earlier than October 27, 2022.
submission (no earlier than January 27, 2023).
9 months after publication of this final rule in the Fed- No sooner than 12 months after publication of this final
eral Register.
rule in Federal Register.
9 months after publication of this final rule in the Fed- No sooner than 12 months after publication of this final
eral Register.
rule in Federal Register.
62 Id.
at 2, 5, 11.
at 12.
64 Specifically, the WEQ–001–28 business
practice standard defines new requirements for
posting TLR curtailment information on a public
utility’s OASIS website, and IDC changes required
before a public utility may implement and comply
with the PFV Standards.
65 Bonneville Comments at 5–6; ISO/RTO Council
Comments at 12.
66 Bonneville Comments at 5–6.
67 On April 3, 2020, the Commission granted an
extension of time for public utilities to make the
compliance filings required by Order No. 676–I. By
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63 Id.
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this extension, the deadline for public utilities
required to make a compliance filing through eTariff is extended from May 25, 2020, up to and
including July 27, 2021. In its order(s) on
compliance filings, the Commission will determine
an implementation date for all utilities, including
utilities whose tariffs incorporate each version of
the NAESB standards, without modification, when
the version is accepted by the Commission, no
sooner than three months following the submission
of compliance filings (i.e., October 27, 2021). See
Notice of Extension of Time at 2, Docket No. RM05–
5–028 (issued Apr. 3, 2020).
68 With two exceptions for the WEQ cybersecurity
standards and PFV Standards, as described in P 49.
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69 By providing a fifteen-month implementation
period, we account for any external dependencies
and system changes beyond the control of a public
utility but necessary for a public utility’s
implementation and compliance with the WEQ
Version 003.3 Standards. However, if a public
utility is unable to comply with the fifteen-month
implementation timeline, it may file a request for
extension of time. The Commission will consider
such requests on a case-by-case basis.
70 For the specific WEQ cybersecurity standards
to be implemented under this separate timeline,
please see Appendix I.
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51.In keeping with the prior practice
that the Commission adopted in Order
No. 676–H, we are requiring public
utilities and those entities with
reciprocity tariffs to modify their open
access transmission tariffs (OATT) to
include the WEQ standards that we are
incorporating by reference. In order to
comply with this final rule, public
utilities and entities with reciprocity
tariffs must make a compliance filing
through eTariff no later than 90 days
from the date the final rule is published
in the Federal Register, using an
indeterminant effective date (12/31/
9998) for the tariff records. The
Commission will establish an effective
date for the tariff changes in the order(s)
on the compliance filings no earlier than
five months from the date the final rule
is published in the Federal Register.72
Should any public utility that has
previously been granted a waiver of the
regulations believe that its
circumstances warrant a continued
waiver, the public utility may file a
request for a waiver wherein the public
utility can detail the circumstances that
it believes warrant a waiver.73 In its
request for continued waiver, the public
utility must include the date, docket
number of the order(s) previously
granting the waiver(s), and an
explanation for why the waiver(s) was
initially granted by the Commission.
Any waiver requests must be filed at the
same time with the public utility’s
compliance filing or in a separate FPA
section 205 filing.
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IV. Notice of Use of Voluntary
Consensus Standards
52. Office of Management and Budget
Circular A–119 (section 11) (Feb. 10,
1998) provides that when a federal
agency issues or revises a regulation
containing a standard, the agency
should publish a statement in the final
rule stating whether the adopted
71 These include all of the WEQ Version 003.3
Standards except for the Business Practice
Standards that address the cybersecurity and
parallel flow visualization, as discussed in the body
of this final rule.
72 As we explained in Order No. 676–H, 148
FERC ¶ 61,205 at n.26, to the extent a public
utility’s OASIS obligations are administered by an
independent system operator (ISO) or regional
transmission operator (RTO) and are not covered in
the public utility’s OATT, the public utility will not
need to modify its OATT to include the OASIS
standards. Such a public utility will, however, be
required to comply with these standards unless
granted a waiver by the Commission. The business
practice standards that we incorporate by reference
into our regulations in this final rule govern the
terms and conditions that public utilities must
include in their OATTs and the transactions that
entities enter with public utilities under these
OATTs must be in accordance with the
incorporated standards.
73 Order No. 676–E, 129 FERC ¶ 61,162 at P 107.
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standard is a voluntary consensus
standard or a government-unique
standard. In this final rule, the
Commission is incorporating by
reference voluntary consensus standards
adopted by NAESB’s WEQ.
V. Incorporation by Reference
53. The Office of the Federal Register
requires agencies incorporating material
by reference in final rules to discuss, in
the preamble of the final rule, the ways
that the materials it incorporates by
reference are reasonably available to
interested parties and how interested
parties can obtain the materials.74 The
regulations also require agencies to
summarize, in the preamble of the final
rule, the material it incorporates by
reference. The standards we are
incorporating by reference in this final
rule 75 can be summarized as follows:
54. The WEQ–000 Abbreviations,
Acronyms, and Definition of Terms
Business Practice Standards provide a
single location for all abbreviations,
acronyms, and defined terms referenced
in the WEQ Business Practice
Standards. These standards provide
common nomenclature for terms within
the wholesale electric industry, thereby
reducing confusion and opportunities
for misinterpretation or
misunderstandings among industry
participants.
55. The WEQ–001 OASIS Business
Practice Standards define the general
and specific transaction processing
requirements and related business
processes required for OASIS. The
standards detail requirements related to
standard terminology for transmission
and ancillary services, attribute values
defining transmission service class and
type, ancillary and other services
definitions, OASIS registration
procedures, procurement of ancillary
and other services, path naming, next
hour market service, identical
transmission service requests, redirects,
resales, transfers, OASIS postings,
procedures for addressing ATC or AFC
methodology questions, rollover rights,
conditional curtailment option
reservations, auditing usage of Capacity
Benefit Margin, coordination of requests
for service across multiple transmission
systems, consolidation, preemption and
right-of-first refusal process, and NITS
requests.
56. The WEQ–002 OASIS Standards
and Communication Protocols Business
Practice Standards define the technical
74 1 CFR 51.5. See Incorporation by Reference, 79
FR 66267 (Nov. 7, 2014).
75 WEQ–000 Version 003.1 and WEQ–006 Version
003.1 were previously approved for incorporation
by reference and continue to be referenced without
change.
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standards for OASIS. These standards
detail network architecture
requirements, information access
requirements, OASIS and point-to-point
interface requirements, implementation,
and NITS interface requirements.
57. The WEQ–003 OASIS Data
Dictionary Business Practice Standards
define the data element specifications
for OASIS.
58. The WEQ–004 Coordinate
Interchange Business Practice Standards
define the commercial processes
necessary to facilitate interchange
transactions via Request for Interchange
and specify the arrangements and data
to be communicated by the entity
responsible for authorizing the
implementation of such transactions
(the entities responsible for balancing
load and generation).
59. The WEQ–005 Area Control Error
(ACE) Equation Special Cases Business
Practice Standards define commercial
based requirements regarding the
obligations of a balancing authority to
manage the difference between
scheduled and actual electrical
generation within its control area. Each
balancing authority manages its ACE in
accordance with the NERC Reliability
Standards. These standards detail
requirements for jointly owned utilities,
supplemental regulation service, and
load or generation transfer by telemetry.
60. The WEQ–007 Inadvertent
Interchange Payback Business Practice
Standards define the methods in which
inadvertent energy is paid back,
mitigating the potential for financial
gain through the misuse of paybacks for
inadvertent interchange. Inadvertent
interchange is interchange that occurs
when a balancing authority cannot fully
balance generation and load within its
area. The standards allow for the
repayment of any imbalances through
bilateral in-kind payback, unilateral inkind payback, or other methods as
agreed to.
61. The WEQ–008 Transmission
Loading Relief—Eastern Interconnection
Business Practice Standards define the
business practices for cutting
transmission service during a TLR
event. These standards detail
requirements for the use of
interconnection-wide TLR procedures,
interchange transaction priorities for use
with interconnection-wide TLR
procedures, and the Eastern
Interconnection procedure for physical
curtailment of interchange transactions.
62. The WEQ–011 Gas/Electric
Coordination Business Practice
Standards define communication
protocols intended to improve
coordination between the gas and
electric industries in daily operational
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Federal Register / Vol. 86, No. 104 / Wednesday, June 2, 2021 / Rules and Regulations
communications between transportation
service providers and gas-fired power
plants. The standards include
requirements for communicating
anticipated power generation fuel for
the upcoming day as well as any
operating problems that might hinder
gas-fired power plants from receiving
contractual gas quantities.
63. The WEQ–012 Public Key
Infrastructure (PKI) Business Practice
Standards establish the cybersecurity
framework for parties partaking in
transactions via a transmission
provider’s OASIS or e-Tagging system.
The NAESB PKI framework secures
wholesale electric market electronic
commercial communications via
encryption of data and the electronic
authentication of parties to a transaction
through the use of a digital certificate
issued by a NAESB certified certificate
authority. The standards define the
requirements for parties utilizing the
digital certificates issued by the NAESB
certificate authorities.
64. The WEQ–013 OASIS
Implementation Guide Business Practice
Standards detail the implementation of
the OASIS Business Practice Standards.
The standards detail requirements
related to point-to-point OASIS
transaction processing, OASIS template
implementation, preemption and rightof-first-refusal processing, NITS
application and modification of service
processing, and secondary network
transmission service.
65. The WEQ–015 Measurement and
Verification of Wholesale Electricity
Demand Response Business Practice
Standards define a common framework
for transparency, consistency, and
accountability applicable to the
measurement and verification of
wholesale electric market demand
response practices. The standards
describe performance evaluation
methodology and criteria for the use of
equipment, technology, and procedures
to quantify the demand reduction
value—the measurement of reduced
electrical usage by a demand resource.
66. The WEQ–021 Measurement and
Verification of Energy Efficiency
Products Business Practice Standards
define a common framework for
transparency, consistency, and
accountability applicable to the
measurement and verification of
wholesale electric market energy
efficiency practices. The standards
establish energy efficiency measurement
and verification criteria and define
requirements for energy efficiency
resource providers for the measurement
and verification of energy efficiency
products and services offered in the
wholesale electric markets.
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67. The WEQ–022 EIR Business
Practice Standards define the business
requirements for entities utilizing the
NAESB managed EIR, a wholesale
electric industry tool that serves as the
central repository for information
needed in the scheduling of
transmission through electronic
transactions. The standards describe the
roles within EIR, registration
requirements, and cybersecurity.
68. The WEQ–023 Modeling Business
Practice Standards specify the
requirements for calculation of ATCs
and AFCs using the methodology
selected. In the event of a conflict
between these Business Practice
Standards and the Transmission Service
Provider’s tariff or FERC approved
seams agreement(s), the tariff or FERC
approved seams agreement(s) shall have
precedence.76
69. Copies of the standards
incorporated by reference may be
obtained from NAESB, whose offices are
located at 801 Travis Street, Suite 1675,
Houston, TX 77002, Phone: (713) 356–
0060. NAESB’s website can be accessed
at https://www.naesb.org. Once COVID
restrictions are lifted, copies of the
standards may be inspected at the
Federal Energy Regulatory Commission,
Public Reference and Files Maintenance
Branch, 888 First Street NE,
Washington, DC 20426, Phone: (202)
502–8371, https://www.ferc.gov.
70. NAESB is a private, consensus
standards developer that develops
voluntary wholesale and retail
standards related to the energy industry.
The procedures utilized by NAESB
make its standards reasonably available
to those affected by the Commission’s
regulations.77 Participants can join
76 The suites of NAESB business practice
standards we are not incorporating by reference in
this final rule are: (1) The WEQ–009 Standards of
Conduct for Electric Transmission Providers, which
NAESB has eliminated as they duplicate the
Commission’s regulations; (2) the WEQ–010
Contracts Related Business Practice Standards that
establish model contracts for the wholesale electric
industry, which the Commission has not
incorporated as they are not mandatory; (3) the
WEQ–014 WEQ/WGQ eTariff Related Business
Practice Standards, which provide an
implementation guide describing the various
mechanisms, data tables, code values/reference
tables, and technical specifications used in the
submission of electronic tariff filings to the
Commission, which the Commission has not
incorporated as these submittals are governed by
the Commission’s eTariff regulations; and (4) the
WEQ–016, WEQ–017, WEQ–018, WEQ–019, and
WEQ–020 Business Practice Standards that were
developed as part of the Smart Grid implementation
and which the Commission adopted as nonmandatory guidance in 18 CFR 2.27 (2019). See
Order No. 676–H, 148 FERC ¶ 61,205; Order No.
676–I, 170 FERC ¶ 61,062, at n.102.
77 As a private, consensus standards developer,
NAESB needs the funds obtained from its
membership fees and sales of its Individual
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NAESB, for an annual membership cost
of $8,000, which entitles them to full
participation in NAESB and enables
them to obtain these standards at no
additional cost.78 Non-members may
obtain the Individual Standards Manual
or Booklet for $250 per manual or
booklet.79 Non-members also may
obtain the complete set of Business
Practice Standards on USB flash drive
for $2,000. NAESB also provides a free
electronic read-only version of the
standards for a three-business day
period or, in the case of a regulatory
comment period, through the end of the
comment period.80 In addition, NAESB
considers requests for waivers of the
charges on a case-by-case basis based on
need.
VI. Information Collection Statement
71. The following collection of
information contained in this final rule
is subject to review by the Office of
Management and Budget (OMB) under
section 3507(d) of the Paperwork
Reduction Act of 1995, 44 U.S.C.
3507(d).81 OMB’s regulations require
approval of certain information
collection requirements imposed by
agency rules.82 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 this 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.
72. The Commission solicits
comments on the Commission’s need for
this information, whether the
information will have practical utility,
the accuracy of the provided burden
estimates, ways to enhance the quality,
utility, and clarity of the information to
be collected, and any suggested methods
for minimizing respondents’ burden,
including the use of automated
information techniques.
73. The following burden estimate is
based on the projected costs for the
industry to implement the new and
revised business practice standards
Standards Manual or Booklet to finance the
organization. The parties affected by these
Commission regulations generally are highly
sophisticated and have the means to acquire the
information they need to effectively participate in
Commission proceedings.
78 NAESB, NAESB Membership Application,
https://www.naesb.org/pdf4/naesbapp.pdf.
79 NAESB, NAESB Materials Order Form, https://
www.naesb.org/pdf/ordrform.pdf.
80 Procedures for non-members to evaluate work
products before purchasing are available at https://
www.naesb.org/misc/NAESB_Nonmember_
Evaluation.pdf.
81 44 U.S.C. 3507(d).
82 5 CFR 1320.11.
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adopted by NAESB and proposed to be
incorporated by reference in this final
rule.83 The NERC Compliance Registry,
as of March 5, 2021, identifies
29501
approximately 162 entities in the United
States that are subject to this final rule.
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DOCKET NOS. RM05–5–029 AND RM05–05–030
Number of
respondents
Annual number
of responses
per respondent
Total number
of responses
Average burden (hrs.)
& cost ($)
per response
Total annual burden
hrs. & total
annual cost ($)
(1)
(2)
(1) * (2) = (3)
(4)
(3) * (4) = (5)
FERC–516E ...............................................
FERC–717 .................................................
162
162
1
1
162
162
6 hrs.; $498 ...............
30 hrs.; $2,490 ..........
972 hrs.; $80,676.
4,860 hrs.; $403,380.
Total ....................................................
........................
..........................
324
$2,988 .......................
5,832 hrs.; $484,056.
affecting ATC and AFC calculation for
wholesale electric transmission services,
with the addition of certain revisions
and corrections. The revisions made by
NAESB in the WEQ Version 003.3
Standards are designed to aid public
utilities with the consistent and uniform
implementation of requirements
promulgated by the Commission as part
of the pro forma Open Access
Transmission Tariff.
Internal review: The Commission has
reviewed NAESB’s proposal and has
made a preliminary determination that
the proposed revisions are both
necessary and useful. In addition, 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.
74. Interested persons may obtain
information on the reporting
requirements by contacting the Federal
Energy Regulatory Commission, Office
of the Executive Director, 888 First
Street NE, Washington, DC 20426
[Attention: Ellen Brown, email:
DataClearance@ferc.gov, phone: (202)
502–8663].
Costs to Comply with Paperwork
Requirements:
The estimated annual costs are as
follows:
FERC–516E: 162 entities × 1 response/
entity (6 hours/response × $83.00/hour)
= $80,676.
FERC–717: 162 entities × 1 response/
entity (30 hours/response × $83.00/
hour) = $403,380.
Titles: FERC–516E, Electric Rate
Schedule and Tariff Filings and FERC–
717, Standards for Business Practices
and Communication Protocols for
Public Utilities.
Action: Final rule.
OMB Control Nos: 1902–0290 (FERC–
516E) and 1902–0173 (FERC–717).
Respondents: Business or other for
profit, and not for profit institutions.
Frequency of Responses: One-time.
Necessity of the Information: This
rule will amend its regulations to
incorporate by reference the latest
version (Version 003.3) of the Standards
for Business Practices and
Communication Protocols for Public
Utilities adopted by the Wholesale
Electric Quadrant (WEQ) of the North
American Energy Standards Board
(NAESB). WEQ Version 003.3 includes
standards developed in accordance with
recommendations of the Department of
Energy sponsored cybersecurity surety
assessment of the NAESB Business
Practice Standards that was conducted
in 2019. Additional standards were
developed in response to the directives
from FERC Order No. 890, such as the
standards developed to support Parallel
Flow Visualization, intended to improve
congestion management procedures for
the Eastern Interconnection. The WEQ
Version 003.3 Standards also include, in
their entirety, the WEQ–023 Modeling
Business Practice Standards contained
in the WEQ Version 003.1 Standards,
which address the technical issues
VII. Environmental Analysis
75. 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.84 The Commission has
categorically excluded certain actions
from these requirements as not having a
significant effect on the human
environment.85 The actions adopted
here fall within categorical exclusions
in the Commission’s regulations for
rules that are clarifying, corrective, or
procedural, for information gathering
analysis, and dissemination, and for
sales, exchange, and transportation of
83 Commission staff estimates that industry is
similarly situated in terms of hourly cost (wages
plus benefits). Based on the Commission average
cost (wages plus benefits) for 2020, $83.00/hour is
used.
84 Regulations Implementing the Nat’l Envt’l Pol’y
Act, Order No. 486, 52 FR 47897 (Dec. 17, 1987),
FERC Stats. & Regs. ¶ 30,783 (1987) (crossreferenced at 41 FERC ¶ 61,284).
85 18 CFR 380.4.
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natural gas and electric power that
requires no construction of facilities.
Therefore, an environmental assessment
is unnecessary and has not been
prepared in this final rule.
VIII. Regulatory Flexibility Act
76. The Regulatory Flexibility Act of
1980 (RFA) 86 generally requires a
description and analysis of final rules
that will have significant economic
impact on a substantial number of small
entities. The RFA does not mandate any
particular outcome in a rulemaking. It
only requires consideration of
alternatives that are less burdensome to
small entities and an agency
explanation of why alternatives were
rejected.
77. The Small Business
Administration (SBA) revised its size
standards (effective January 22, 2014)
for electric utilities from a standard
based on megawatt hours to a standard
based on the number of employees,
including affiliates. Under SBA’s
standards, some transmission owners
will fall under the following category
and associated size threshold: electric
bulk power transmission and control, at
500 employees.87 The Commission
estimates that 24 of the 162 respondents
are small or 14.8 percent of the
respondents affected by this final rule.
78. The Commission estimates that
the impact on these entities is consistent
with the paperwork burden of $2,988
per entity used above.88 The
Commission does not consider $2,988 to
be a significant economic impact. Based
on the above, the Commission certifies
that implementation of the proposed
Business Practice Standards will not
have a significant impact on a
substantial number of small entities.
Accordingly, no initial regulatory
flexibility analysis is required.
86 5
U.S.C. 601–612.
CFR 121.201, Sector 22 (Utilities), NAICS
code 221121 (Electric Bulk Power Transmission and
Control).
88 36 hours at $83.00/hour = $2,988.
87 13
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IX. Document Availability
79. In addition to publishing the full
text of this document in the Federal
Register, the Commission provides all
interested persons an opportunity to
view and/or print the contents of this
document via the internet through
FERC’s Home Page (https://
www.ferc.gov). 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).
80. From FERC’s Home Page on the
internet, this information is available on
eLibrary. The full text of this document
is available on eLibrary in PDF and
Microsoft Word format for viewing,
printing, and/or downloading. To access
this document in eLibrary, type the
docket number excluding the last three
digits of this document in the docket
number field.
81. User assistance is available for
eLibrary and the FERC’s website during
normal business hours from FERC
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.
X. Effective Date and Congressional
Notification
82. These regulations are effective
August 2, 2021. The Commission has
determined, with the concurrence of the
Administrator of the Office of
Information and Regulatory Affairs of
OMB, that this rule is not a ‘‘major rule’’
as defined in section 351 of the Small
Business Regulatory Enforcement
Fairness Act of 1996. The Final Rule
will be submitted to the Senate, House,
and Government Accountability Office.
List of Subjects
18 CFR Part 37
Electric power, Electric utilities.
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18 CFR Part 38
Business practice standards, Electric
utilities, Incorporation by reference,
Reporting and recordkeeping
requirements.
By the Commission.
Issued: May 20, 2021.
Kimberly D. Bose,
Secretary.
In consideration of the foregoing, the
Commission amends parts 37 and 38,
chapter I, title 18, Code of Federal
Regulations, as follows:
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PART 37—OPEN ACCESS SAME–TIME
INFORMATION SYSTEMS
1. The authority citation for part 37
continues to read as follows:
■
Authority: 16 U.S.C. 791–825r, 2601–
2645; 31 U.S.C. 9701; 42 U.S.C. 7101–7352.
2. Amend § 37.6 by revising paragraph
(b)(2)(i) to read as follows:
■
§ 37.6 Information to be posted on the
OASIS.
*
*
*
*
*
(b) * * *
(2) * * *
(i) Information used to calculate any
posting of ATC and TTC must be dated
and time-stamped and all calculations
shall be performed according to
consistently applied methodologies
referenced in the Transmission
Provider’s transmission tariff and shall
be based on Commission-approved
Reliability Standards, business practice
and electronic communication
standards, and related implementation
documents, as well as current industry
practices, standards and criteria. Such
calculations shall be conducted in a
manner that is transparent, consistent
with anticipated system conditions and
outages for the relevant timeframe, and
not unduly discriminatory or
preferential.
*
*
*
*
*
PART 38—STANDARDS FOR PUBLIC
UTILITY BUSINESS OPERATIONS AND
COMMUNICATIONS
3. The authority citation for part 38
continues to read as follows:
■
Authority: 16 U.S.C. 791–825r, 2601–2645;
31 U.S.C. 9701; 42 U.S.C. 7101–7352.
■
4. Revise § 38.1 to read as follows:
§ 38.1 Incorporation by reference of North
American Energy Standards Board
Wholesale Electric Quadrant standards.
(a) Any public utility that owns,
operates, or controls facilities used for
the transmission of electric energy in
interstate commerce or for the sale of
electric energy at wholesale in interstate
commerce and any non-public utility
that seeks voluntary compliance with
jurisdictional transmission tariff
reciprocity conditions must comply
with the business practice and
electronic communication standards
promulgated by the North American
Energy Standards Board (NAESB)
Wholesale Electric Quadrant (WEQ) that
are incorporated by reference in
paragraph (b) of this section.
(b)(1) The material incorporated by
reference in this section was approved
by the Director of the Federal Register
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in accordance with 5 U.S.C. 552(a) and
1 CFR part 51. All approved material
may be inspected at the Federal Energy
Regulatory Commission, Public
Reference and Files Maintenance
Branch, 888 First Street NE,
Washington, DC 20426, Tel: (202) 502–
8371, www.ferc.gov, and is available
from the sources listed in paragraph
(b)(2) of this section. It is also available
for inspection at the National Archives
and Records Administration (NARA).
For information on the availability of
this material at NARA, email
fedreg.legal@nara.gov, or go to: https://
www.archives.gov/federal-register/cfr/
ibr-locations.html .
(2) North American Energy Standards
Board (NAESB), 801 Travis Street, Suite
1675, Houston, TX 77002, Tel: (713)
356–0060. NAESB’s website is at
https://www.naesb.org/. The NAESB
WEQ Business Practice Standards;
Standards and Models the Commission
incorporates by reference are as follows:
(i) WEQ–000, Abbreviations,
Acronyms, and Definition of Terms
(WEQ Version 003.1, September 30,
2015) (including only the definitions of
Interconnection Time Monitor, Time
Error, and Time Error Correction);
(ii) WEQ–000, Abbreviations,
Acronyms, and Definition of Terms
(WEQ Version 003.3, March 30, 2020);
(iii) WEQ–001, Open Access SameTime Information Systems (OASIS),
(WEQ Version 003.3, March 30, 2020);
(iv) WEQ–002, Open Access SameTime Information Systems (OASIS)
Business Practice Standards and
Communication Protocols (S&CP),
(WEQ Version 003.3, March 30, 2020);
(v) WEQ–003, Open Access SameTime Information Systems (OASIS) Data
Dictionary, (WEQ Version 003.3, March
30, 2020);
(vi) WEQ–004, Coordinate
Interchange (WEQ Version 003.3, March
30, 2020);
(vii) WEQ–005, Area Control Error
(ACE) Equation Special Cases (WEQ
Version 003.3, March 30, 2020);
(viii) WEQ–006, Manual Time Error
Correction (WEQ Version 003.1, Sept.
30, 2015);
(ix) WEQ–007, Inadvertent
Interchange Payback (WEQ Version
003.3, March 30, 2020);
(x) WEQ–008, Transmission Loading
Relief (TLR)—Eastern Interconnection
(WEQ Version 003.3, March 30, 2020);
(xi) WEQ–011, Gas/Electric
Coordination (WEQ Version 003.3,
March 30, 2020);
(xii) WEQ–012, Public Key
Infrastructure (PKI) (WEQ Version
003.3, March 30, 2020);
(xiii) WEQ–013, Open Access SameTime Information Systems (OASIS)
E:\FR\FM\02JNR1.SGM
02JNR1
Federal Register / Vol. 86, No. 104 / Wednesday, June 2, 2021 / Rules and Regulations
Implementation Guide, (WEQ Version
003.3, March 30, 2020);
(xiv) WEQ–015, Measurement and
Verification of Wholesale Electricity
Demand Response (WEQ Version 003.3,
March 30, 2020);
(xv) WEQ–021, Measurement and
Verification of Energy Efficiency
Products (WEQ Version 003.3, March
30, 2020);
(xvi) WEQ–022, Electric Industry
Registry (WEQ Version 003.3, March 30,
2020); and
29503
(xvii) WEQ–023, Modeling. (WEQ
Version 003.3, March 30, 2020).
Note: The following appendix will not be
published in the Code of Federal Regulations
Appendix I
STANDARDS AFFECTED BY THE REVISIONS TO IMPLEMENT RECOMMENDATIONS FOLLOWING SANDIA’S SURETY
ASSESSMENT ON CYBERSECURITY
Standard
Revisions
WEQ–000–1
Deleted seven abbreviations/acronyms ...................................................
Added one abbreviation/acronym .............................................................
DNS—Domain Name Service.
IPCP—Internet Protocol Control Protocol.
NTP—Network Time Protocol.
PPP—Point to Point Protocol.
SLIP—Serial Line Internet Protocol.
SNMP—Simple Network Management Protocol.
SSL—Secure Sockets Layer.
OWASP—Open Web Application Security Project.
WEQ–001
Revised one standard ..............................................................................
WEQ–001–13.1.3.3.
WEQ–002
Revised 14 standards ...............................................................................
[FR Doc. 2021–11352 Filed 6–1–21; 8:45 am]
BILLING CODE 6717–01–P
DEPARTMENT OF ENERGY
Federal Energy Regulatory
Commission
18 CFR Parts 154, 260, and 284
[Docket Nos. RM18–11–002 and RP18–415–
002; Order No. 849–B]
Interstate and Intrastate Natural Gas
Pipelines; Rate Changes Relating to
Federal Income Tax Rate American
Forest & Paper Association
Federal Energy Regulatory
Commission, Department of Energy.
ACTION: Final rule.
jbell on DSKJLSW7X2PROD with RULES
AGENCY:
VerDate Sep<11>2014
17:10 Jun 01, 2021
Jkt 253001
rates in light of the income tax
reductions provided by the Tax Cuts
and Jobs Act and the Commission’s
revised policy and precedent
concerning tax allowances to address
the double recovery issue identified by
United Airlines, Inc. v. FERC. These
procedures also allowed interstate
natural gas pipelines to voluntarily
reduce their rates. In this final rule, the
Commission finds that there are no
more expected filings that will make use
of these special procedures, which are
uniquely tied to the Tax Cuts and Jobs
Act, and that all existing proceedings
under these procedures have closed.
Therefore, the Commission removes the
procedures from the Code of Federal
Regulations as obsolete.
DATES:
This rule is effective August 2,
2021.
Order No. 849 adopted
procedures for determining which
jurisdictional natural gas pipelines may
be collecting unjust and unreasonable
SUMMARY:
WEQ–002–2.3.
WEQ–002–2.4.
WEQ–002–4.2.1.1.
WEQ–002–4.2.1.2.
WEQ–002–4.2.1.3.
WEQ–002–4.2.2.
WEQ–002–5.
WEQ–002–5.1.1.
WEQ–002–5.1.2.
WEQ–002–5.1.3.
WEQ–002–5.6.
WEQ–002–101.2.3.1.
WEQ–002–101.3.3.2.
WEQ–002–101.3.3.3.
FOR FURTHER INFORMATION CONTACT:
Vince Mareino (Legal Information),
Office of the General Counsel, 888 First
PO 00000
Frm 00021
Fmt 4700
Sfmt 4700
Street NE, Washington, DC 20426, (202)
502–6167, Vince.Mareino@ferc.gov.
Laura Kane (Technical Information),
Office of Energy Market Regulation, 888
First Street NE, Washington, DC 20426,
(202) 502–8653, Laura.Kane@ferc.gov.
SUPPLEMENTARY INFORMATION:
I. Background
1. On July 18, 2018, the Commission
issued a final rule 1 (Order No. 849)
adopting procedures for determining
which jurisdictional natural gas
pipelines may be collecting unjust and
unreasonable rates in light of the
income tax reductions provided by the
Tax Cuts and Jobs Act 2 and the
Commission’s Revised Policy
1 Interstate & Intrastate Nat. Gas Pipelines; Rate
Changes Relating to Fed. Income Tax Rate, Order
No. 849, 83 FR 36672 (July 30, 2018), 164 FERC
¶ 61,031 (2018).
2 An Act to provide for reconciliation pursuant to
titles II and V of the concurrent resolution on the
budget for fiscal year 2018, Public Law 115–97, 131
Stat. 2054 (2017) (Tax Cuts and Jobs Act).
E:\FR\FM\02JNR1.SGM
02JNR1
]]>Agencies
[Federal Register Volume 86, Number 104 (Wednesday, June 2, 2021)]
[Rules and Regulations]
[Pages 29491-29503]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-11352]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
18 CFR Parts 37 and 38
[Docket Nos. RM05-5-029 and RM05-5-030; Order No. 676-J]
Standards for Business Practices and Communication Protocols for
Public Utilities
AGENCY: Federal Energy Regulatory Commission, Department of Energy.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Federal Energy Regulatory Commission (Commission) is
revising its regulations to incorporate by reference the latest version
(Version 003.3) of the Standards for Business Practices and
Communication Protocols for Public Utilities adopted by the Wholesale
Electric Quadrant (WEQ) of the North American Energy Standards Board
(NAESB). The WEQ Version 003.3 Standards include, in their entirety,
the WEQ-023 Modeling Business Practice Standards contained in the WEQ
Version 003.1 Standards, which address the technical issues affecting
Available Transfer Capability (ATC) and Available Flowgate Capability
(AFC) calculation for wholesale electric transmission services, with
the addition of certain revisions and corrections. The Commission also
revises its regulations to provide that transmission providers must
avoid unduly discriminatory and preferential treatment in the
calculation of ATC.
DATES: Effective date: This rule is effective August 2, 2021.
Incorporation by reference: The incorporation by reference of
certain publications listed in this rule is approved by the Director of
the Federal Register as of August 2, 2021. The incorporation by
reference of certain other publications listed in this rule was
approved by the Director of the Federal Register as of April 27, 2020.
Compliance date: Public utilities must make a compliance filing to
comply with the requirements of this final rule through eTariff twelve
months after implementation of the WEQ Version 003.2 Standards, but no
earlier than October 27, 2022. Compliance filings for cybersecurity and
Parallel Flow Visualization standards are due March 2, 2022.
FOR FURTHER INFORMATION CONTACT:
Michael P. Lee (technical issues), Office of Energy Policy and
Innovation, Federal Energy Regulatory Commission, 888 First Street NE,
Washington, DC 20426, (202) 502-6548.
Peter Whitman (technical issues), Office of Energy Policy and
Innovation, Federal Energy Regulatory Commission, 888 First Street NE,
Washington, DC 20426, (202) 502-6225.
Michael A. Chase (legal issues), Office of the General Counsel, Federal
Energy Regulatory Commission, 888 First Street NE, Washington, DC
20426, (202) 502-6205.
Mark Bennett (legal issues), Office of the General Counsel, Federal
Energy Regulatory Commission, 888 First Street NE, Washington, DC
20426, (202) 502-8524.
SUPPLEMENTARY INFORMATION:
Table of Contents
Paragraph
Nos.
I. Background.............................................. 3.
A. NAESB and Past Standards............................ 3.
B. Summary of NAESB WEQ Version 003.3.................. 9.
II. Discussion............................................. 17.
A. Overview............................................ 17.
B. Issues Raised by Commenters......................... 20.
1. Changes to OASIS................................ 21.
2. Incorporation of WEQ-023 Standards 1.4 and 1.4.1 25.
3. Changes to the Regulatory Text.................. 33.
III. Waiver Requests and Implementation Issues............. 41.
A. Waiver Requests..................................... 41.
1. Comments........................................ 41.
2. Commission Determination........................ 42.
B. Implementation...................................... 43.
1. NOPR Proposal................................... 43.
2. Comments........................................ 44.
3. Commission Determination........................ 48.
IV. Notice of Use of Voluntary Consensus Standards......... 52.
V. Incorporation by Reference.............................. 53.
VI. Information Collection Statement....................... 71.
VII. Environmental Analysis................................ 75.
VIII. Regulatory Flexibility Act........................... 76.
IX. Document Availability.................................. 79.
X. Effective Date and Congressional Notification........... 82.
1. The Federal Energy Regulatory Commission (Commission) is
amending its regulations under the Federal Power Act (FPA) \1\ to
incorporate by reference into its regulations as mandatory enforceable
requirements, the latest version (Version 003.3) of the Standards for
Business Practices and Communication Protocols for Public Utilities
adopted by the Wholesale Electric Quadrant (WEQ) of the North
[[Page 29492]]
American Energy Standards Board (NAESB), filed with the Commission on
March 30, 2020 (March 30 Filing). The WEQ Version 003.3 Standards build
upon an earlier version of the standards that the Commission previously
included and incorporated by reference into its regulations at 18 CFR
parts 2 and 38, respectively, in Order No. 676-I.\2\
---------------------------------------------------------------------------
\1\ 16 U.S.C. 791a, et seq. (2018).
\2\ Standards for Bus. Practices & Commc'n Protocols for Pub.
Utils., Order No. 676-I, 85 FR 10,571 (Feb. 25, 2020), 170 FERC ]
61,062 (2020).
---------------------------------------------------------------------------
2. The WEQ Version 003.3 Standards include newly created standards
as well as modifications to existing standards developed through the
NAESB Business Practice Standards development or minor correction
processes. The WEQ Version 003.3 Standards include revisions related to
the surety assessment on cybersecurity performed by Sandia National
Laboratories (Sandia) designed to strengthen the practices and
cybersecurity protections established within the standards. NAESB also
revised its Open Access Same-Time Information System (OASIS) suite of
standards,\3\ including revisions to support new OASIS functionality
that will allow for the posting of third party offers of planning
redispatch services as well as providing additional information
regarding the curtailment of firm transmission service. In addition,
the WEQ Version 003.3 Standards include revisions to the NAESB WEQ-023
Modeling Business Practice Standards. The Commission also revises 18
CFR 37.6(b)(2)(i) to codify that the calculation of Available Transfer
Capability (ATC) must be conducted in manner that is transparent,
consistent with system conditions and outages for the relevant
timeframe, and not unduly discriminatory or preferential.
---------------------------------------------------------------------------
\3\ The OASIS suite of standards are the WEQ-001 OASIS Business
Practice Standards, the WEQ-002 OASIS Standards and Communication
Protocols Business Practice Standards, the WEQ-003 OASIS Data
Dictionary Business Practice Standards, and the WEQ-013 OASIS
Implementation Guide Business Practice Standards.
---------------------------------------------------------------------------
I. Background
A. NAESB and Past Standards
3. NAESB is a non-profit standards development organization
established in late 2001 (as the successor to the Gas Industry
Standards Board (GISB), which was established in 1994) and serves as an
industry forum for the development of business practice standards and
communication protocols for the wholesale and retail natural gas and
electricity industry sectors. Since 1995, NAESB's predecessor GISB and
subsequently NAESB itself have been accredited members of the American
National Standards Institute (ANSI), complying with ANSI's requirements
that its standards reflect a consensus of the affected industries.\4\
---------------------------------------------------------------------------
\4\ Prior to the establishment of NAESB in 2001, the
Commission's development of business practice standards for the
wholesale electric industry was aided by two ad hoc industry working
groups established during the rulemaking proceeding that resulted in
issuance of Order No. 889 and the creation of the OASIS, while
GISB's efforts involved the development of business practice
standards for the wholesale natural gas industry. Once formally
established, NAESB took over the standards development previously
handled by GISB and by the electric working groups.
---------------------------------------------------------------------------
4. NAESB's standards include business practices intended to
standardize and streamline the transactional processes of the natural
gas and electric industries, as well as communication protocols and
related standards designed to improve the efficiency of communication
within each industry. NAESB supports all three ``quadrants'' of the gas
and electric industries: wholesale gas, wholesale electric, and retail
markets.\5\ All participants in the gas and electric industries are
eligible to join NAESB and participate in standards development.
---------------------------------------------------------------------------
\5\ The retail gas quadrant and the retail electric quadrant
were combined into the retail markets quadrant. NAESB continues to
refer to these working groups as ``quadrants'' even though there are
now only three quadrants.
---------------------------------------------------------------------------
5. NAESB develops its standards under a consensus process so that
the standards draw support from a wide range of industry members.
NAESB's procedures are designed to ensure that all persons choosing to
participate can have input into the development of a standard,
regardless of whether they are members of NAESB, and each standard
NAESB adopts must be supported by a consensus of the relevant industry
segments. Standards that fail to gain consensus support are not
adopted. NAESB's consistent practice has been to submit a report to the
Commission after it has revised existing business practice standards or
has developed and adopted new business practice standards. NAESB's
standards are initially voluntary standards, which become mandatory for
public utilities upon incorporation by reference by the Commission.
6. NAESB filed its WEQ Version 003.2 Business Practices Standards
(WEQ Version 003.2 Standards) on December 8, 2017 (December 8 Filing),
in Docket No. RM05-5-027.\6\ After consideration of the December 8
Filing, the Commission issued the WEQ Version 003.2 NOPR on May 16,
2019, wherein the Commission proposed to revise its regulations to
incorporate by reference the WEQ Version 003.2 Standards, with certain
enumerated exceptions.\7\ The Commission announced that NAESB's WEQ-023
Modeling Business Practice Standards would be addressed separately,
proposing only to incorporate by reference the WEQ-023 Modeling
Business Practice Standards that were moved from the WEQ-001 OASIS
Business Practice Standards by the changes made to the WEQ Version
003.1 Standards.\8\
---------------------------------------------------------------------------
\6\ See Docket No. RM05-5-027, Report of the North American
Energy Standards Board on Wholesale Electric Quadrant Business
Practice Standards Version 003.2 under RM05-5 (Dec. 8, 2017) (NAESB
WEQ Version 003.2 Report).
\7\ See Standards for Bus. Practices & Commc'n Protocols for
Pub. Utils., Notice of Proposed Rulemaking, 84 FR 24050 (May 16,
2019), 167 FERC ] 61,127 (2019) (WEQ Version 003.2 NOPR).
\8\ WEQ Version 003.2 NOPR, 167 FERC ] 61,127 at P 12. See also
Standards for Bus. Practices & Commc'n Protocols for Pub. Utils.,
Notice of Proposed Rulemaking, 81 FR 49580 (Jul. 28, 2016), 156 FERC
] 61,055, at P 42 (2016) (WEQ Version 003.1 NOPR).
---------------------------------------------------------------------------
7. On February 4, 2020, the Commission issued Order No. 676-I, in
which it amended its regulations under the FPA to incorporate by
reference into its regulations as mandatory enforceable requirements,
with certain enumerated exceptions, the WEQ Version 003.2 Standards.
The WEQ Version 003.2 Standards included the changes proposed in WEQ
Version 003.1 Standards, which were the subject of an earlier notice of
proposed rulemaking.\9\ All of these standards, except for the WEQ-022
and WEQ-023 Business Practice Standards, update and replace standards
that the Commission previously incorporated by reference in Order No.
676-H.
---------------------------------------------------------------------------
\9\ NAESB filed the WEQ Version 003.1 Standards on October 26,
2015 (October 2015 Filing). See, e.g., WEQ Version 003.1 NOPR, 156
FERC ] 61,055.
---------------------------------------------------------------------------
8. Among the NAESB Business Practice Standards incorporated by
reference in Order No. 676-I, the Commission incorporated the WEQ-022
Electric Industry Registry (EIR) Business Practice Standards, but did
not incorporate by reference in its entirety the WEQ-023 Modeling
Business Practice Standards. The Commission only incorporated by
reference the WEQ-023 Modeling Business Practice Standards that were
moved from the WEQ-001 OASIS Business Practice Standards by the changes
made to the WEQ Version 003.1 Standards.\10\ The Commission also did
not adopt the NOPR proposal to incorporate by
[[Page 29493]]
reference NAESB's latest version of the WEQ-006 Manual Time Error
Correction Business Practice Standards.
---------------------------------------------------------------------------
\10\ The following WEQ-023 Modeling Business Practice Standards
were incorporated by reference in Order No. 676-I: WEQ-023-5; WEQ-
023-5.1; WEQ-023-5.1.1; WEQ-023-5.1.2; WEQ-023-5.1.2.1; WEQ-023-
5.1.2.2; WEQ-023-5.1.2.3; WEQ-023-5.1.3; WEQ-023-5.2; WEQ-023-6;
WEQ-023-6.1; WEQ-023-6.1.1; WEQ-023-6.1.2; and WEQ-023-A Appendix A.
---------------------------------------------------------------------------
B. Summary of NAESB WEQ Version 003.3
9. On March 30, 2020, NAESB filed the WEQ Version 003.3
Standards.\11\ The WEQ Version 003.3 Standards build upon the standards
included in the WEQ Version 003.2 Standards. After consideration of the
March 30 Filing, the Commission issued the WEQ Version 003.3 NOPR on
July 16, 2020, wherein the Commission proposed to incorporate the WEQ
Version 003.3 Standards, with certain enumerated exceptions.\12\
---------------------------------------------------------------------------
\11\ See NAESB WEQ Version 003.3 Report (filed March 30, 2020).
\12\ Standards for Bus. Practices & Commc'n Protocols for Pub.
Utils., 85 FR 55201 (Sept. 4, 2020) 172 FERC ] 61,047 (2020) (WEQ
Version 003.3 NOPR).
---------------------------------------------------------------------------
10. NAESB's WEQ Version 003.3 Standards include newly created
standards as well as modifications to existing standards developed
through the NAESB Business Practice Standards development or minor
correction processes.\13\ The WEQ Version 003.3 Standards also include
additions and revisions to the NAESB WEQ-023 Modeling Business Practice
Standards, which the Commission addresses herein.
---------------------------------------------------------------------------
\13\ See NAESB WEQ Version 003.3 Report, Transmittal at 1-2.
---------------------------------------------------------------------------
11. The WEQ Version 003.3 Standards include revisions related to
the surety assessment on cybersecurity performed by Sandia. NAESB
responded to a U.S. Department of Energy (DOE) request that NAESB act
on an expedited basis to ensure the WEQ cybersecurity standards
developed in response to the surety assessment were included in the WEQ
Version 003.3 Standards.\14\ NAESB reports that the changes strengthen
the practices and cybersecurity protections established within the
standards by aligning security requirements with other cybersecurity
guidelines, mitigating potential vulnerabilities, and incorporating
more secure communication and encryption methodologies.
---------------------------------------------------------------------------
\14\ Id. at 3-4.
---------------------------------------------------------------------------
12. In support of directives contained in Order No. 890,\15\ NAESB
also revised the OASIS suite of standards. The WEQ Version 003.3
Standards include additions and revisions to support new OASIS
functionality that will allow for the posting of third party offers of
planning redispatch services (WEQ-001-13.2) as well as providing
additional information regarding the curtailment of firm transmission
service (WEQ-001-28) prescribed in the OASIS suite of standards.\16\ In
response to Order No. 676-I, NAESB also revised the standards as
necessary to conform with the Commission's Dynegy policy, and stated
that any standards from these efforts will be incorporated into future
versions of the WEQ Business Practice Standards.\17\
---------------------------------------------------------------------------
\15\ Preventing Undue Discrimination & Preference in
Transmission Serv., Order No. 890, 72 FR 12266 (Mar. 15, 2007), 118
FERC ] 61,119, order on reh'g, Order No. 890-A, 73 FR 2984 (Jan. 16,
2008), 121 FERC ] 61,297 (2007), order on reh'g, Order No. 890-B,
123 FERC ] 61,299 (2008), order on reh'g, Order No. 890-C, 74 FERC
12540 (Mar. 25 2009), 126 FERC ] 61,228, order on clarification,
Order No. 890-D, 74 FR 61511 (Nov. 25, 2009), 129 FERC ] 61,126
(2009).
\16\ NAESB WEQ Version 003.3 Report, Transmittal at 4. WEQ-001-
13.2 adds new Third Party Offers for Planning Redispatch Services
Business Practice Standards to allow for posting of third-party
offers of planning redispatch services. WEQ-001-28 adds new
Curtailment Posting Requirements Business Practice Standards for the
posting of additional information on OASIS regarding firm
transmission curtailments.
\17\ In Dynegy Power Marketing, Inc, 99 FERC ] 61,054 (2002)
(Dynegy), the Commission established its policy on a customer's
right to keep its contractual rights to point-to-point firm
transmission service on the original path it has reserved while the
customer's request for a redirect is pending.
---------------------------------------------------------------------------
13. The WEQ Version 003.3 Standards also include changes that were
made to support consistency with the North American Electric
Reliability Corporation (NERC) Reliability Standards, including NERC's
retirement of the NERC Interchange Scheduling and Coordination
Reliability Standards and retirement of the NERC Modeling, Data, and
Analysis Reliability Standards. NAESB coordinated with NERC to make
modifications and revisions pertaining to electronic tagging (e-
Tagging),\18\ and to the calculation of ATC and AFC.\19\
---------------------------------------------------------------------------
\18\ With respect to e-Tagging, NAESB also modified the WEQ-004
Coordinate Interchange Business Practice Standards' Commercial
Timing Tables to clarify commercial timing requirements.
\19\ NAESB WEQ Version 003.3 Report, Transmittal at 4.
---------------------------------------------------------------------------
14. The WEQ Version 003.3 Standards also include additions,
revisions, and reservations made to the WEQ-008 Transmission Load
Relief (TLR)--Eastern Interconnection Business Practice Standards,
which NAESB advises completes the standards development effort for the
Parallel Flow Visualization (PFV) enhanced congestion management
process (PFV Standards).\20\ The PFV Standards are the culmination of a
multi-year coordination effort between NAESB, NERC, and the Eastern
Interconnect Data Sharing Network (EIDSN), Inc.,\21\ and the standards
are designed to improve upon the congestion management procedures for
the Eastern Interconnection through the use of real-time data in
calculations for transmission loading relief obligations.
---------------------------------------------------------------------------
\20\ Id.
\21\ Comprised of North American Reliability Coordinators,
Transmission Operators, Transmission Owners, and Balancing
Authorities, EIDSN, Inc. manages the Electric Information Network
(EInet), a data-sharing network for its members to promote the
reliable and efficient operation of the Eastern and Quebec
Interconnections. See EIDSN, Inc., Our Mission, at https://eidsn.org/.
---------------------------------------------------------------------------
15. Moreover, as part of the standards development process, NAESB
made five additional revisions to the OASIS suite of standards that
were not made in response to Commission orders.\22\ First, NAESB
modified the OASIS suite of standards to improve OASIS query
functionalities. Second, NAESB modified the OASIS suite of standards
for new OASIS functionality to fully document all encumbrances to
unconditional firm transmission service, such as untagged pseudo-ties.
Third, NAESB modified the OASIS suite of standards to expand notice
functionality and establish standards for providing dynamic
notification to transmission customers of the renewal deadline for
rollover rights for point-to-point transmission service. Fourth, NAESB
modified WEQ-001 OASIS Business Practice Standards for use of Next Hour
Market Service and the 0-NX transmission product codes. Fifth, NAESB
modified the OASIS suite of standards to modify Network Integration
Transmission Service (NITS) requirements. Finally, NAESB revised the
OASIS suite of standards to make three minor corrections.\23\
---------------------------------------------------------------------------
\22\ NAESB WEQ Version 003.3 Report, Transmittal at 5.
\23\ Minor corrections were made to the WEQ-001 OASIS Business
Practice Standards and the WEQ-003 OASIS Data Dictionary Business
Practice Standards.
---------------------------------------------------------------------------
16. The WEQ Version 003.3 Standards include the WEQ-023 Modeling
Business Practice Standards that provide technical details concerning
the calculation of ATC for wholesale electric transmission services.
The WEQ-023 Modeling Business Practice Standards address aspects of
certain of the NERC MOD A Reliability Standards relating to modeling,
data and analysis that are included in the NERC's proposed retirement
of its MOD A Reliability Standards.
II. Discussion
A. Overview
17. NAESB's WEQ Version 003.3 Standards, which we are incorporating
by reference in this final rule, include modifications, reservations,
and/or
[[Page 29494]]
additions to the following set of existing standards: \24\
---------------------------------------------------------------------------
\24\ See NAESB WEQ Version 003.3 Report, Transmittal at 3.
------------------------------------------------------------------------
WEQ Business practice standards
------------------------------------------------------------------------
000.............................. Abbreviations, Acronyms, and
Definition of Terms.
001.............................. Open Access Same-Time Information
System (OASIS).
002.............................. OASIS Standards and Communication
Protocols (S&CP).
003.............................. OASIS S&CP Data Dictionaries.
004.............................. Coordinate Interchange.
008.............................. Transmission Loading Relief (TLR)--
Eastern Interconnection Business
Practice Standards.
013.............................. OASIS Implementation Guide.
023.............................. Modeling.
------------------------------------------------------------------------
18. The specific NAESB standards that we are incorporating by
reference in this final rule establish a set of business practice
standards and communication protocols for the electric industry that
will continue to enable industry members to achieve efficiencies by
streamlining utility business and transactional processes and
communication procedures. All of these standards, except for portions
of the WEQ-023 Modeling Business Practice Standards, update and replace
standards that the Commission previously incorporated by reference in
Order No. 676-I.
19. As the Commission has explained in prior orders, NAESB approved
the standards under its consensus procedures.\25\ Adoption of consensus
standards is appropriate because the consensus process helps ensure the
reasonableness of the standards by requiring that the standards draw
support from a broad spectrum of all segments of the industry.
Moreover, since the industry itself must conduct business under these
standards, the Commission's regulations should reflect those standards
that have the widest possible support. In section 12(d) of the National
Technology Transfer and Advancement Act of 1995, Congress affirmatively
requires federal agencies to use technical standards developed by
voluntary consensus standards organizations, like NAESB, to carry out
policy objectives or activities.\26\
---------------------------------------------------------------------------
\25\ Standards for Business Practices and Communication
Protocols for Public Utilities, Order No. 676-H, 79 FR 56939 (Sept.
24, 2015), 148 FERC ] 61,205, at P 21, n.27 (2014). (``WEQ's
procedures ensure that all industry members can have input into the
development of a business practice standard, whether or not they are
members of NAESB, and each standard it adopts is supported by a
consensus of the seven industry segments: Transmission, generation,
marketer/brokers, distribution/load serving entities, end users,
independent grid operators/planners, and technology services. Under
the WEQ process, for a standard to be approved, it must receive a
super-majority vote of 67 percent of the members of the WEQ's
Executive Committee with support from at least 40 percent of each of
the seven industry segments. For final approval, 67 percent of the
WEQ's general membership must ratify the standards.'').
\26\ Public Law 104-113, 12(d), 110 Stat. 775 (1996), 15 U.S.C.
272 note (1997).
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B. Issues Raised by Commenters
20. Comments in response to the WEQ Version 003.3 NOPR were filed
by four commenters. Commenters expressed general support for the
Commission's proposals,\27\ and no comments opposed the basic direction
of the NOPR, although some commenters took issue with specific details
of the NOPR proposal. Specifically, commenters raised discrete concerns
regarding the WEQ-023 Business Practice Standards and the Commission's
proposed regulatory text regarding non-discriminatory ATC calculations.
Commenters also commented on whether the Commission should require
industry to implement WEQ Version 003.2 prior to WEQ Version 003.3, or
instead should cancel the implementation obligation of WEQ Version
003.2 and require implementation of all accepted WEQ Version 003.3
Business Practice Standards (including WEQ 003.2 changes) within 18
months. We will incorporate by reference into the Commission's
regulations all of the WEQ Version 003.3 Standards and amend the
regulatory text at Sec. 37.6(b)(2)(i) as described below. We will
separately discuss each of the issues raised by commenters.
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\27\ The ISO/RTO Council specifically endorsed the WEQ Version
003.3 NOPR proposal to incorporate by reference business practice
standards necessary to effectuate the PFV enhanced congestion
management process. ISO/RTO Council Comments at 2, 4-5.
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1. Changes to OASIS
a. Background
21. Order No. 890 requires transmission providers to post to OASIS
``all circumstances and events contributing to the need for a firm
service curtailment, specific services and customers curtailed
(including the transmission provider's own retail loads), and the
duration of the curtailment.'' \28\ As the Commission explained in the
NOPR, NAESB made additional modifications to the OASIS suite of
standards, as well as consistency changes to WEQ-000 Abbreviations,
Acronyms, and Definition of Terms Business Practice Standards. NAESB's
changes to the standards included modifications to existing templates
and the creation of two new templates to provide the mechanism for
transmission providers to post the required additional information
regarding the curtailment of firm transmission service, including the
curtailment of non-firm transmission service that preceded any firm
transmission curtailments.
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\28\ Order No. 890, 118 FERC ] 61,119 at P 1627.
---------------------------------------------------------------------------
22. The information needed to meet the posting requirements is
contained in two separate tools: The Interchange Distribution
Calculator (IDC) tool for the Eastern Interconnection, managed by
EIDSN, Inc., and the Enhanced Curtailment Calculator (ECC) tool for the
Western Interconnection, managed by the California Independent System
Operator. Although both the IDC and ECC tools produce information to be
posted to OASIS in accordance with the standards, NAESB states that its
members determined that the need for a mechanism to transfer data from
the tools to OASIS should be addressed as part of any industry
implementation rather than through standards modifications.
b. Comments
23. The ISO/RTO Council states that it supports an automated
mechanism to transfer data from the IDC/ECC tools to the firm
transmission curtailment templates.\29\ The ISO/RTO Council states that
it currently is unclear whether firm curtailment information must be
posted manually prior to the implementation of an automated data
transfer mechanism.\30\ The ISO/RTO Council contends that manually
populating firm curtailment data into the templates is administratively
burdensome and introduces the potential for human (data entry) error,
and automated data transfer results in a more reliable, accurate and
equitable posting process.\31\ The ISO/RTO Council requests that the
Commission clarify that manual postings will not be required as an
interim means to achieve compliance while the automated data transfer
mechanism is being developed per the implementation schedule for the
WEQ Version 003.3 Standards.
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\29\ ISO/RTO Council Comments at 13.
\30\ Id.
\31\ Id.
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c. Commission Determination
24. Because of the importance of posting information regarding firm
curtailments, we will not delay implementation while industry develops
a more automated data transfer mechanism. NAESB states that its
[[Page 29495]]
members determined that the need for a mechanism to transfer data from
the tools to OASIS should be addressed as part of any industry
implementation rather than as part of the standards modifications.
While we encourage the industry to develop automated tools as quickly
as possible, we agree that this effort should be independent from the
development and implementation of the standards.
2. Incorporation of WEQ-023 Standards 1.4 and 1.4.1
a. Background
25. The WEQ-023 Business Practice Standards include two new
standards related to contract path management not previously included
in the NERC MOD A Reliability Standards. These two Business Practice
Standards, WEQ-023-1.4 and WEQ-023-1.4.1, limit the amount of firm
transmission service granted on an ATC Path and limit the interchange
schedule (both firm and non-firm) between balancing authority areas to
the contract path limit for that given path, respectively.\32\
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\32\ WEQ-023 1.4 states, ``[e]ach Transmission Service Provider
shall not grant a request for Firm Transmission Service on an ATC
Path that serves as an interface with another BAA if the net of the
Firm Transmission Service transactions into and out of the
Transmission Service Provider's BAA would exceed the sum of the
Facility Ratings of Tie Facilities, to which Transmission Service
Providers mutually agree they have the right to use Tie Facilities
that comprise the ATC Path, between the two BAAs.''
WEQ-023 1.4.1 states, ``[e]ach Transmission Service Provider
shall limit the Interchange Schedule (both Firm and non-Firm) of the
reservations on an ATC path into and out of Transmission Service
Provider's BAA on an interface with another BAA such that the Net
Interchange Schedule does not exceed the sum of the Facility Ratings
of Tie Facilities, to which Transmission Service Providers mutually
agree they have the right to use the Tie Facilities that comprise
the ATC Path, between the two BAAs.
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b. Comments
26. Bonneville Power Administration (Bonneville) and the ISO/RTO
Council ask the Commission to decline to incorporate by reference these
Standards. Bonneville asserts that the WEQ-023-1.4 and WEQ-023-1.4.1
Business Practice Standards need further refinement by the industry
before they are ready for incorporation by reference, if at all.
Bonneville states that these Standards appear to be inconsistent with
how Bonneville and other transmission service providers and system
operators in the Western Interconnection operate their systems.
Bonneville explains that, for itself and others, an ATC Path is allowed
to be overscheduled up to twenty minutes prior to flow, at which point
interruptions of non-firm service, curtailments, or economic
dispatches, are then performed to ensure that path limits are not
exceeded. Bonneville further states that this practice allows it to
maximize transmission utilization including the integration of variable
resources scheduled within the hour, and that these requirements, if
incorporated by reference as drafted, would restrict energy supply and
transmission availability.\33\
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\33\ Bonneville Comments at 4.
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27. Bonneville contends that its concerns with Business Practice
Standards WEQ-023-1.4 and 1.4.1 are particularly relevant in light of
the recent heat wave events of August and September 2020 in California.
Bonneville asserts that eliminating the practice of over-scheduling
until the final twenty minutes prior to flow on transmission facilities
such as the California-Oregon Intertie could artificially restrict
energy supply and transmission availability.\34\
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\34\ Id. at 5.
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28. The ISO/RTO Council joins Bonneville in opposing WEQ-023-1.4
and 1.4.1 Business Practice Standards, stating that requiring
transmission service providers to assume all firm transmission service
reservations will be used in full, without accounting for the
transmission customer's scheduling activity, ``will undoubtedly result
in less efficient use of the transmission system.'' The ISO/RTO Council
also expresses concern that under system conditions which include the
sudden, unexpected outage or de-rate of a transmission facility
associated with an ATC path, there may not be sufficient time to adjust
posted ATC or modify the current interchange, which could lead to a
violation of the requirement.\35\
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\35\ ISO/RTO Council Comments at 9.
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29. The ISO/RTO Council notes that WEQ-023-1.4 and 1.4.1 Business
Practice Standards were initially rejected by the NAESB Business
Practices Subcommittee, and that the ISO/RTO Council and other
entities, including PJM Interconnection LLC, Midcontinent Independent
System Operator, Inc., Southwest Power Pool, Electric Reliability
Council Of Texas, Inc., and the Independent Electricity System Operator
of Ontario, raised concerns that remain unresolved.\36\
---------------------------------------------------------------------------
\36\ Id.
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c. Commission Determination
30. We incorporate by reference all of the WEQ-023 Modeling
Business Practice Standards. The WEQ-023 Business Practice Standards
were filed in October 2015 and were the product of an extensive
development process by a NAESB subcommittee with the necessary
expertise to address the relevant technical issues. Although WEQ-023-
1.4 and 1.4.1 Business Practice Standards were not in NERC's MOD A
Reliability Standards, they were proposed to help address differences
in how contract paths are treated that would have existed among the
three methods for calculating ATC: Rated System Path Methodology, Area
Interchange Methodology, and Flowgate Methodology. Declining to adopt
these standards at this point could potentially loosen the requirements
for non-discriminatory calculation of ATC and may require changes to
specific standards regarding particular contract paths. Given the
deliberately broad nature of these standards, the record does not show
that current business practices, such as a response to a sudden de-rate
or outage referenced by the ISO/RTO Council, would necessarily be
considered a violation of the standards.
31. Moreover, a consensus of the industry approved these standards
with Bonneville, MISO and ISO-NE voting in favor at the WEQ
stakeholders meeting, while no ISO/RTO and only one utility voted in
opposition. In reviewing these standards, the Commission relies heavily
on the consensus expertise of the NAESB membership.\37\ Concerns with
the NAESB Business Practice Standards therefore should be raised within
the NAESB process, and the industry should seek to resolve any issues
therein and, if they cannot, the parties need to provide a factual
record for the Commission to consider the issue.\38\
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\37\ Standards for Business Practices of Interstate Natural Gas
Pipelines; Order No. 587, 61 FR 39,053, 39057 (July 26, 1996), FERC
Stats. & Regs. ] 31,038, at 30.059 (1996) (cross-referenced at 76
FERC ] 61042) (``Since it is the industry that must operate under
these standards, deferring to the considered judgment of the
consensus of the industry is both reasonable and appropriate.'').
\38\ See Standards for Bus. Practices of Interstate Nat. Gas
Pipelines, Order No. 587-G, 63 FR 20072, 20076-80 (Apr. 23, 1998),
FERC Stats. & Regs. ] 31,062, at 30,668-74 (1998) (cross-referenced
at 83 FERC ] 61,029) (Commission resolved issue on which NAESB's
predecessor, the Gas Industry Standards Board, could not reach
consensus).
---------------------------------------------------------------------------
32. Bonneville and the ISO/RTO Council have raised concerns with
whether implementation of these standards in all cases will result in a
loss of scheduling flexibility without the risk of overscheduling. We
therefore remind these parties that, as further discussed in P 41, we
remain open to examining requests for waivers of these standards when
utilities make compliance filings.\39\ Such requests
[[Page 29496]]
should explain why the filing parties believe their current practices
violate the standards and why their practices should be considered
equal or superior to the standards in preventing overscheduling while
providing for more flexibility or other benefits in scheduling. We urge
NAESB to consider the issues raised by Bonneville and the ISO/RTO
Council and whether revisions to these standards are warranted. The
Commission also is mindful of the consideration of the potential
benefits of maximizing the use of transmission when appropriate,
without compromising reliability, and maintaining flexibility to
maximize transmission utilization as conditions change, and has
scheduled a workshop that may consider these issues.\40\
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\39\ Order No. 676-H, 148 FERC ] 61,205 at P 80.
\40\ Electric Transmission Incentives Policy Under Section 219
of the Federal Power Act, Notice of Workshop, RM20-10-000 & AD19-19-
000 (Apr. 15, 2021). The workshop is scheduled for September 10,
2021.
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3. Changes to the Regulatory Text
a. Background
33. The Commission sought comment on proposed additional regulatory
text in 18 CFR 37.6 (information to be posted on the OASIS) stating
that transmission provider ATC calculations must be transparent,
consistent, and not unduly discriminatory or preferential.
Specifically, the Commission proposed to make the revisions indicated
below to the regulatory text in 18 CFR 37.6(b)(2)(i):
Information used to calculate any posting of ATC and TTC must be
dated and time-stamped and all calculations shall be performed
according to consistently applied methodologies referenced in the
Transmission Provider's transmission tariff and shall be based on
Commission-approved [Reliability Standards,] business practice and
electronic communication standards, and related implementation
documents, as well as current industry practices, standards and
criteria. Transmission Providers shall calculate ATC and TTC in
coordination with and consistent with capability and usage on
neighboring systems, calculate system capability using factors derived
from operations and planning data for the time frame for which data are
being posted (including anticipated outages), and update ATC and TTC
calculations as inputs change. Such calculations shall be conducted in
a manner that is transparent, consistent, and not unduly discriminatory
or preferential.\41\
---------------------------------------------------------------------------
\41\ Additions to the regulatory text are indicated by italics.
Deletions from the regulatory text are indicated by [brackets.]
---------------------------------------------------------------------------
34. The NOPR explained that ``this proposed regulation, in
conjunction with the WEQ-023 Modeling Business Practice Standards, will
help ensure that all transmission customers will be treated fairly when
seeking alternative power supplies, and will provide for comparable and
not unduly discriminatory or preferential treatment of native load
customers and transmission service customers.'' \42\ The Commission
also sought comment on whether it should develop new regulations
outside of the NAESB standards development process ``to maintain the
current level of detail related to ATC calculations; if so, what level
of detail those regulations should have.'' \43\
---------------------------------------------------------------------------
\42\ WEQ Version 003.3 NOPR, 172 FERC ] 61,047 at P 49 (citing
Mandatory Reliability Standards for the Calculation of Available
Transfer Capability, Capacity Benefit Margins, Transmission
Reliability Margins, Total Transfer Capability, & Existing
Transmission Commitments & Mandatory Reliability Standards for the
Bulk-Power Sys., Order No. 729, 74 FR 64884 (Dec. 8, 2009), 129 FERC
] 61,155, at P 2 (2009)).
\43\ Id.
---------------------------------------------------------------------------
b. Comments
35. Four commenters oppose the Commission's proposed changes to the
regulatory text. No commenters filed in support of the proposal.
Bonneville and the Edison Electric Institute (EEI) assert that the
Commission's proposed language is unnecessary. Bonneville further
asserts that the regulatory changes circumvent the NAESB process
sanctioned by the Commission for the development of standards, and that
the Commission's regulations are not the appropriate place to address
technical details involving the calculation of ATC and TTC. In
particular, Bonneville maintains that the Commission's proposed
language includes ambiguous references to technical concepts such as
``factors derived from operations and planning data'' in the
calculation of ATC and TTC.\44\ EEI contends that revisions should
occur through NAESB's standard development process, and that the
directives in Order No. 890 and related provisions in the pro forma
OATT are sufficient to ensure that ATC calculation is consistent and
non-discriminatory. EEI also notes that in Order No. 890, the
Commission acknowledged its reliance on NAESB for the development of
business practice standards.\45\
---------------------------------------------------------------------------
\44\ Bonneville Comments at 3.
\45\ EEI Comments at 3.
---------------------------------------------------------------------------
36. The ISO/RTO Council disagrees with the concerns expressed in
the NOPR about the opportunity for discriminatory practices and
transmission provider discretion in the calculation of ATC and AFC,
stating that the WEQ-023 Modeling Business Practice Standards ``were
extensively vetted through NAESB's industry-wide standards development
process where any comments received regarding the lesser degree of
detail in the standards were successfully addressed prior to NAESB
ratification.'' \46\ The ISO/RTO Council contends that the WEQ-023
Modeling Business Practice Standards ensure non-discriminatory
practices and limit transmission provider discretion by requiring each
transmission service provider to publish its ATC calculation
methodology, and to describe its methodology in its ATC implementation
document such that, given the same information used by the transmission
service provider, the ATC calculations are reproducible and can be
validated.\47\
---------------------------------------------------------------------------
\46\ ISO/RTO Council Comments at 7.
\47\ Id. at 7-8.
---------------------------------------------------------------------------
37. Similarly, Open Access Technology International, Inc. (OATI)
maintains that the NAESB standards development process is the best way
to draft standards through an open, transparent, and industry
participant driven process. It states that standards developed through
this process would help the Commission avoid the imposition of
unintentional and unnecessary regulatory changes.\48\ All four
commenters agree that, if the Commission determines that the WEQ-023
Modeling Business Practice Standards are insufficient, it should
encourage NAESB to provide additional details and specific standards to
address those shortcomings.
---------------------------------------------------------------------------
\48\ OATI Comments at 5.
---------------------------------------------------------------------------
c. Commission Determination
38. We adopt the NOPR proposal, with certain revisions. We
recognize that commenters oppose adding these criteria to the
Commission's regulations, but after consideration of their arguments we
continue to believe that revisions to the Commission's regulations are
necessary to ensure that transmission provider ATC calculations are
transparent, consistent with anticipated system conditions and outages
for the relevant timeframe, and not unduly discriminatory or
preferential. However, in response to concerns raised in comments, we
will not include detailed technical criteria in the regulations, but we
will instead include the fundamentals of Order No. 890 requirements for
calculating ATC, which is consistent with what the Commission proposed
in the NOPR. The
[[Page 29497]]
regulatory text will read as shown below.\49\
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\49\ Additions to the current regulatory text at 18 CFR
37.6(b)(2)(i) are indicated by italics. Deletions to the regulatory
text are indicated by [brackets.]
Information used to calculate any posting of ATC and TTC must be
dated and time-stamped and all calculations shall be performed
according to consistently applied methodologies referenced in the
Transmission Provider's transmission tariff and shall be based on
Commission-approved [Reliability Standards,] business practice and
electronic communication standards, and related implementation
documents, as well as current industry practices, standards and
criteria. Such calculations shall be conducted in a manner that is
transparent, consistent with anticipated system conditions and
outages for the relevant timeframe, and not unduly discriminatory or
---------------------------------------------------------------------------
preferential.
39. The revised regulatory text properly references the WEQ
Business Practice Standards in place of the NERC Mod A Reliability
Standards that have been proposed for retirement. It also includes in
the regulation Order No. 890's fundamental requirement that
transmission provider ATC calculations must be transparent, consistent
with anticipated system conditions and outages for the relevant
timeframe, and not unduly discriminatory or preferential, but without
introducing specific technical concepts that may be subject to
differing interpretations.\50\ We adopt this regulatory text because it
has the advantage of removing the most objectionable language opposed
by commenters while including the fundamental requirements in Order No.
890, including that the determination of ATC must not be unduly
discriminatory or preferential.
---------------------------------------------------------------------------
\50\ See, e.g., Order No. 890, 118 FERC ] 61,119 at P 2.
---------------------------------------------------------------------------
40. Commenters do not indicate a need at this time for additional
ATC standards or for the Commission to develop further regulations
outside of the NAESB standards development process. The industry,
through the NAESB process, should continue to consider further
refinements to these standards to improve the accuracy of these
calculations.
III. Waiver Requests and Implementation Issues
A. Waiver Requests
1. Comments
41. The ISO/RTO Council asks the Commission to continue to
acknowledge in its final rule that, consistent with Commission
precedent and currently-effective policy, each public utility may seek
as part of its compliance filing waiver of new or revised standards in
the WEQ Version 003.3 Standards, and renewal of existing waivers
previously granted by the Commission. The ISO/RTO Council requests a
similar clarification be included in the final rule for this
proceeding.\51\
---------------------------------------------------------------------------
\51\ ISO/RTO Council Comments at 13-14.
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2. Commission Determination
42. Public utilities may seek waiver of the standards for newly
developed or newly revised standards and for the renewal of existing
waivers. Our policy on when these waivers will be granted or denied is
not being changed in this final rule. The Commission has previously
stated that if a public utility asserts that its circumstances warrant
a continued waiver of the regulations, the public utility may file a
request for a waiver wherein the public utility can detail the
circumstances that it believes warrant a waiver.\52\ In its request for
continued waiver, the public utility must include the date, docket
number, and explanation for why the waiver was initially granted by the
Commission. The Commission will decide on any such waiver request on a
case-by-case basis, and absent a Commission-approved waiver, compliance
with the standards is required by all public utilities.
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\52\ See Standards for Business Practices and Communication
Protocols for Public Utilities, Order No. 676-E, 74 FERC 63288 (Dec.
3, 2009), 129 FERC ] 61,162, at P 107 (2009).
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B. Implementation
1. NOPR Proposal
43. In the WEQ Version 003.3 NOPR, the Commission proposed to
implement the WEQ Version 003.3 Standards, other than those related to
cybersecurity, under an 18-month implementation timeline. The
Commission requested comments on how best to proceed with the
implementation of the remaining WEQ 003.3 Standards, including the
standards related to PFV and those related to OASIS. Specifically, the
Commission requested comments on whether the Commission should require
the industry to implement WEQ Version 003.2 prior to WEQ Version 003.3,
or, alternatively, cancel the implementation obligation of WEQ Version
003.2 and instead require implementation of all accepted WEQ Version
003.3 Standards, including the WEQ Version 003.2 Standards, within 18
months.\53\
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\53\ This would include all WEQ Version 003.3 Standards except
for the WEQ cybersecurity standards which have an earlier
implementation timeline, as discussed in the NOPR, as well as the
implementation of the NAESB ATC-related standards contained in WEQ-
023, which will be coordinated with the retirement of the NERC MOD A
Reliability Standards.
---------------------------------------------------------------------------
2. Comments
44. Bonneville, EEI and OATI states the WEQ Version 003.2 Standards
and the WEQ Version 003.3 Standards should have distinct, sequential
implementation timelines that are separate and do not overlap.\54\
Bonneville states work is underway within the industry to implement the
WEQ Version 003.2 Standards which should not be interrupted due to the
Commission's adoption of the WEQ Version 003.3 Standards.\55\ EEI
states the implementation of the different versions simultaneously are
not necessarily simple upgrades, and OASIS updates, training and
testing are required for successful implementation.\56\ OATI states
separate implementation schedules will prevent wasted industry effort
and cost.\57\
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\54\ Bonneville Comments at 5; EEI Comments at 2-3, 6; OATI
Comments at 2.
\55\ Bonneville Comments at 5.
\56\ EEI Comments at 6.
\57\ OATI Comments at 3.
---------------------------------------------------------------------------
45. OATI states that the Commission's proposed 18 month
implementation period for the WEQ Version 003.3 Standards should begin
after the implementation period for WEQ Version 003.2 Standards
ends.\58\ Bonneville, however, recommends a shorter implementation
period of at least 12 months, also starting no sooner than the final
compliance deadline for the WEQ Version 003.2 Standards.\59\ The ISO/
RTO Council also supports an implementation date in October 2022 for
the WEQ Version 3.3 Standards and recommends that the Commission
provide public utilities with the option of implementing the WEQ
Version 003.2 Standards either: (a) In October 2021 under the current
implementation timeline for the WEQ Version 003.2 Standards and prior
to WEQ Version 003.3 Standards; or (b) in October 2022 simultaneously
with the WEQ Version 003.3 Standards.\60\ The ISO/RTO Council states
that the Commission should also permit parties to submit a single
compliance filing and intended implementation schedule for both WEQ
Version 003.2 Standards and WEQ Version 003.3 Standards.\61\
---------------------------------------------------------------------------
\58\ Id. at 4.
\59\ Bonneville Comments at 5.
\60\ ISO/RTO Council Comments at 3.
\61\ Id. at 11-12.
---------------------------------------------------------------------------
46. The ISO/RTO Council also requests that the PFV Standards be
implemented on an expedited timeline similar to the timeframe for the
WEQ cybersecurity standards that is separate from the rest of the
proposed modifications in the WEQ Version 003.3
[[Page 29498]]
Standards.\62\ The ISO/RTO Council states that the PFV Standards'
enhanced congestion process will more accurately account for internal
flows (i.e., network and native load calculations) by incorporating the
use of real-time data into relief obligations calculated by the IDC.
---------------------------------------------------------------------------
\62\ Id. at 2, 5, 11.
---------------------------------------------------------------------------
47. Moreover, the ISO/RTO Council requests that the Commission
ensure that the implementation timeline account for any external
dependencies and system changes beyond a public utility's control but
necessary for a public utility's implementation and compliance with the
WEQ Version 003.3 Standards.\63\ For example, Bonneville and the ISO/
RTO Council reference new requirements for posting TLR curtailment on a
public utilities' OASIS. This new TLR requirement necessitates certain
changes to and/or information sourced from the Interchange Distribution
Calculator/Enhanced Curtailment Calculator (IDC/ECC) tools \64\ in
order to coordinate with the OASIS system enhancements.\65\ With
respect to the modification of WEQ-001 addressing the OASIS curtailment
postings, which requires data from the ECC tool to meet the posting
requirements, Bonneville states the implementation timeline should be
at least six months from the time that a mechanism is made available to
access data from the ECC.\66\
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\63\ Id. at 12.
\64\ Specifically, the WEQ-001-28 business practice standard
defines new requirements for posting TLR curtailment information on
a public utility's OASIS website, and IDC changes required before a
public utility may implement and comply with the PFV Standards.
\65\ Bonneville Comments at 5-6; ISO/RTO Council Comments at 12.
\66\ Bonneville Comments at 5-6.
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3. Commission Determination
48. The Commission recognized in the WEQ Version 003.3 NOPR the
potential for confusion through implementation of Version 003.3 either
immediately after or simultaneously with Version 003.2 implementation.
In light of commenters' explanations as to the time needed and
complexities involved to plan and complete the tasks associated in
implementing the WEQ Version 003.2 Standards, we will not require the
two implementation timelines for the WEQ Version 003.2 Standards and
the WEQ Version 003.3 Standards to run concurrently. Accordingly,
public utilities will continue to implement the changes incorporated by
reference in Order No. 676-I, for the WEQ Version 003.2 Standards,
under the current implementation timeline ending October 2021.\67\ For
the WEQ Version 003.3 Standards incorporated by reference in this final
rule,\68\ we conclude that a 15-month implementation period, beginning
after the completion of the implementation timeline for the WEQ Version
003.2 Standards, is sufficient for implementation of the WEQ Version
003.3 Standards..\69\ As a result, public utilities will submit two
compliance filings: the compliance filing for the WEQ Version 003.2
Standards will remain due July 27, 2021, with implementation no earlier
than October 27, 2021, and the compliance filing for the WEQ Version
003.3 Standards, which we incorporate by reference in this final rule,
will be due 12 months after implementation of the WEQ Version 003.2
Standards, or no earlier than October 27, 2022. Again, the Commission
will determine an implementation date for the WEQ Version 003.3
Standards following the acceptance of the compliance filings, no
earlier than three months following their submission (i.e., not before
January 27, 2023), resulting in a 15-month implementation period. We
decline to adopt the ISO/RTO Council's proposal to require both the WEQ
Version 003.2 Standards and the WEQ Version 003.3 Standards to be
incorporated using the same timeline, with both due to be implemented
by October 2022. Delaying the current implementation timeline for the
WEQ Version 003.2 Standards could result in additional industry effort
and complicate implementation of the WEQ Version 003.3 Standards.
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\67\ On April 3, 2020, the Commission granted an extension of
time for public utilities to make the compliance filings required by
Order No. 676-I. By this extension, the deadline for public
utilities required to make a compliance filing through e-Tariff is
extended from May 25, 2020, up to and including July 27, 2021. In
its order(s) on compliance filings, the Commission will determine an
implementation date for all utilities, including utilities whose
tariffs incorporate each version of the NAESB standards, without
modification, when the version is accepted by the Commission, no
sooner than three months following the submission of compliance
filings (i.e., October 27, 2021). See Notice of Extension of Time at
2, Docket No. RM05-5-028 (issued Apr. 3, 2020).
\68\ With two exceptions for the WEQ cybersecurity standards and
PFV Standards, as described in P 49.
\69\ By providing a fifteen-month implementation period, we
account for any external dependencies and system changes beyond the
control of a public utility but necessary for a public utility's
implementation and compliance with the WEQ Version 003.3 Standards.
However, if a public utility is unable to comply with the fifteen-
month implementation timeline, it may file a request for extension
of time. The Commission will consider such requests on a case-by-
case basis.
---------------------------------------------------------------------------
49. As noted above, for the revisions related to the surety
assessment on cybersecurity performed by Sandia, which were included in
the WEQ Version 003.3 Standards,\70\ we will require industry filers to
submit compliance filings for these revised WEQ cybersecurity standards
nine months after the publication of a final rule in this proceeding,
with implementation required no sooner than three months after
compliance filings are submitted to the Commission, for a total
implementation period of at least 12 months from the issuance of this
final rule. Moreover, we agree with the ISO/RTO Council request that
the PFV Standards be implemented on the same expedited timeline
provided for the WEQ cybersecurity standards, that is, separate and
apart from the implementation of the rest of the proposed modifications
in the WEQ Version 003.3 Standards. As a result, we will require
industry filers to also submit compliance filings for the PFV
Standards, nine months after the publication of this final rule, with
implementation required no sooner than three months after compliance
filings are submitted to the Commission, for a total implementation
period of at least twelve months.
---------------------------------------------------------------------------
\70\ For the specific WEQ cybersecurity standards to be
implemented under this separate timeline, please see Appendix I.
50. Summary of Compliance Filings and Implementation Deadlines
------------------------------------------------------------------------
Compliance filings
Business practice standards due Implementation date
------------------------------------------------------------------------
WEQ Version 003.3 \71\...... 12 months after No earlier than 3
implementation of months following
the WEQ Version compliance filings
003.2 Standards, or submission (no
no earlier than earlier than
October 27, 2022. January 27, 2023).
Cybersecurity............... 9 months after No sooner than 12
publication of this months after
final rule in the publication of this
Federal Register. final rule in
Federal Register.
PFV......................... 9 months after No sooner than 12
publication of this months after
final rule in the publication of this
Federal Register. final rule in
Federal Register.
------------------------------------------------------------------------
[[Page 29499]]
51. In keeping with the prior practice that the Commission adopted
in Order No. 676-H, we are requiring public utilities and those
entities with reciprocity tariffs to modify their open access
transmission tariffs (OATT) to include the WEQ standards that we are
incorporating by reference. In order to comply with this final rule,
public utilities and entities with reciprocity tariffs must make a
compliance filing through eTariff no later than 90 days from the date
the final rule is published in the Federal Register, using an
indeterminant effective date (12/31/9998) for the tariff records. The
Commission will establish an effective date for the tariff changes in
the order(s) on the compliance filings no earlier than five months from
the date the final rule is published in the Federal Register.\72\
Should any public utility that has previously been granted a waiver of
the regulations believe that its circumstances warrant a continued
waiver, the public utility may file a request for a waiver wherein the
public utility can detail the circumstances that it believes warrant a
waiver.\73\ In its request for continued waiver, the public utility
must include the date, docket number of the order(s) previously
granting the waiver(s), and an explanation for why the waiver(s) was
initially granted by the Commission. Any waiver requests must be filed
at the same time with the public utility's compliance filing or in a
separate FPA section 205 filing.
---------------------------------------------------------------------------
\71\ These include all of the WEQ Version 003.3 Standards except
for the Business Practice Standards that address the cybersecurity
and parallel flow visualization, as discussed in the body of this
final rule.
\72\ As we explained in Order No. 676-H, 148 FERC ] 61,205 at
n.26, to the extent a public utility's OASIS obligations are
administered by an independent system operator (ISO) or regional
transmission operator (RTO) and are not covered in the public
utility's OATT, the public utility will not need to modify its OATT
to include the OASIS standards. Such a public utility will, however,
be required to comply with these standards unless granted a waiver
by the Commission. The business practice standards that we
incorporate by reference into our regulations in this final rule
govern the terms and conditions that public utilities must include
in their OATTs and the transactions that entities enter with public
utilities under these OATTs must be in accordance with the
incorporated standards.
\73\ Order No. 676-E, 129 FERC ] 61,162 at P 107.
---------------------------------------------------------------------------
IV. Notice of Use of Voluntary Consensus Standards
52. Office of Management and Budget Circular A-119 (section 11)
(Feb. 10, 1998) provides that when a federal agency issues or revises a
regulation containing a standard, the agency should publish a statement
in the final rule stating whether the adopted standard is a voluntary
consensus standard or a government-unique standard. In this final rule,
the Commission is incorporating by reference voluntary consensus
standards adopted by NAESB's WEQ.
V. Incorporation by Reference
53. The Office of the Federal Register requires agencies
incorporating material by reference in final rules to discuss, in the
preamble of the final rule, the ways that the materials it incorporates
by reference are reasonably available to interested parties and how
interested parties can obtain the materials.\74\ The regulations also
require agencies to summarize, in the preamble of the final rule, the
material it incorporates by reference. The standards we are
incorporating by reference in this final rule \75\ can be summarized as
follows:
---------------------------------------------------------------------------
\74\ 1 CFR 51.5. See Incorporation by Reference, 79 FR 66267
(Nov. 7, 2014).
\75\ WEQ-000 Version 003.1 and WEQ-006 Version 003.1 were
previously approved for incorporation by reference and continue to
be referenced without change.
---------------------------------------------------------------------------
54. The WEQ-000 Abbreviations, Acronyms, and Definition of Terms
Business Practice Standards provide a single location for all
abbreviations, acronyms, and defined terms referenced in the WEQ
Business Practice Standards. These standards provide common
nomenclature for terms within the wholesale electric industry, thereby
reducing confusion and opportunities for misinterpretation or
misunderstandings among industry participants.
55. The WEQ-001 OASIS Business Practice Standards define the
general and specific transaction processing requirements and related
business processes required for OASIS. The standards detail
requirements related to standard terminology for transmission and
ancillary services, attribute values defining transmission service
class and type, ancillary and other services definitions, OASIS
registration procedures, procurement of ancillary and other services,
path naming, next hour market service, identical transmission service
requests, redirects, resales, transfers, OASIS postings, procedures for
addressing ATC or AFC methodology questions, rollover rights,
conditional curtailment option reservations, auditing usage of Capacity
Benefit Margin, coordination of requests for service across multiple
transmission systems, consolidation, preemption and right-of-first
refusal process, and NITS requests.
56. The WEQ-002 OASIS Standards and Communication Protocols
Business Practice Standards define the technical standards for OASIS.
These standards detail network architecture requirements, information
access requirements, OASIS and point-to-point interface requirements,
implementation, and NITS interface requirements.
57. The WEQ-003 OASIS Data Dictionary Business Practice Standards
define the data element specifications for OASIS.
58. The WEQ-004 Coordinate Interchange Business Practice Standards
define the commercial processes necessary to facilitate interchange
transactions via Request for Interchange and specify the arrangements
and data to be communicated by the entity responsible for authorizing
the implementation of such transactions (the entities responsible for
balancing load and generation).
59. The WEQ-005 Area Control Error (ACE) Equation Special Cases
Business Practice Standards define commercial based requirements
regarding the obligations of a balancing authority to manage the
difference between scheduled and actual electrical generation within
its control area. Each balancing authority manages its ACE in
accordance with the NERC Reliability Standards. These standards detail
requirements for jointly owned utilities, supplemental regulation
service, and load or generation transfer by telemetry.
60. The WEQ-007 Inadvertent Interchange Payback Business Practice
Standards define the methods in which inadvertent energy is paid back,
mitigating the potential for financial gain through the misuse of
paybacks for inadvertent interchange. Inadvertent interchange is
interchange that occurs when a balancing authority cannot fully balance
generation and load within its area. The standards allow for the
repayment of any imbalances through bilateral in-kind payback,
unilateral in-kind payback, or other methods as agreed to.
61. The WEQ-008 Transmission Loading Relief--Eastern
Interconnection Business Practice Standards define the business
practices for cutting transmission service during a TLR event. These
standards detail requirements for the use of interconnection-wide TLR
procedures, interchange transaction priorities for use with
interconnection-wide TLR procedures, and the Eastern Interconnection
procedure for physical curtailment of interchange transactions.
62. The WEQ-011 Gas/Electric Coordination Business Practice
Standards define communication protocols intended to improve
coordination between the gas and electric industries in daily
operational
[[Page 29500]]
communications between transportation service providers and gas-fired
power plants. The standards include requirements for communicating
anticipated power generation fuel for the upcoming day as well as any
operating problems that might hinder gas-fired power plants from
receiving contractual gas quantities.
63. The WEQ-012 Public Key Infrastructure (PKI) Business Practice
Standards establish the cybersecurity framework for parties partaking
in transactions via a transmission provider's OASIS or e-Tagging
system. The NAESB PKI framework secures wholesale electric market
electronic commercial communications via encryption of data and the
electronic authentication of parties to a transaction through the use
of a digital certificate issued by a NAESB certified certificate
authority. The standards define the requirements for parties utilizing
the digital certificates issued by the NAESB certificate authorities.
64. The WEQ-013 OASIS Implementation Guide Business Practice
Standards detail the implementation of the OASIS Business Practice
Standards. The standards detail requirements related to point-to-point
OASIS transaction processing, OASIS template implementation, preemption
and right-of-first-refusal processing, NITS application and
modification of service processing, and secondary network transmission
service.
65. The WEQ-015 Measurement and Verification of Wholesale
Electricity Demand Response Business Practice Standards define a common
framework for transparency, consistency, and accountability applicable
to the measurement and verification of wholesale electric market demand
response practices. The standards describe performance evaluation
methodology and criteria for the use of equipment, technology, and
procedures to quantify the demand reduction value--the measurement of
reduced electrical usage by a demand resource.
66. The WEQ-021 Measurement and Verification of Energy Efficiency
Products Business Practice Standards define a common framework for
transparency, consistency, and accountability applicable to the
measurement and verification of wholesale electric market energy
efficiency practices. The standards establish energy efficiency
measurement and verification criteria and define requirements for
energy efficiency resource providers for the measurement and
verification of energy efficiency products and services offered in the
wholesale electric markets.
67. The WEQ-022 EIR Business Practice Standards define the business
requirements for entities utilizing the NAESB managed EIR, a wholesale
electric industry tool that serves as the central repository for
information needed in the scheduling of transmission through electronic
transactions. The standards describe the roles within EIR, registration
requirements, and cybersecurity.
68. The WEQ-023 Modeling Business Practice Standards specify the
requirements for calculation of ATCs and AFCs using the methodology
selected. In the event of a conflict between these Business Practice
Standards and the Transmission Service Provider's tariff or FERC
approved seams agreement(s), the tariff or FERC approved seams
agreement(s) shall have precedence.\76\
---------------------------------------------------------------------------
\76\ The suites of NAESB business practice standards we are not
incorporating by reference in this final rule are: (1) The WEQ-009
Standards of Conduct for Electric Transmission Providers, which
NAESB has eliminated as they duplicate the Commission's regulations;
(2) the WEQ-010 Contracts Related Business Practice Standards that
establish model contracts for the wholesale electric industry, which
the Commission has not incorporated as they are not mandatory; (3)
the WEQ-014 WEQ/WGQ eTariff Related Business Practice Standards,
which provide an implementation guide describing the various
mechanisms, data tables, code values/reference tables, and technical
specifications used in the submission of electronic tariff filings
to the Commission, which the Commission has not incorporated as
these submittals are governed by the Commission's eTariff
regulations; and (4) the WEQ-016, WEQ-017, WEQ-018, WEQ-019, and
WEQ-020 Business Practice Standards that were developed as part of
the Smart Grid implementation and which the Commission adopted as
non-mandatory guidance in 18 CFR 2.27 (2019). See Order No. 676-H,
148 FERC ] 61,205; Order No. 676-I, 170 FERC ] 61,062, at n.102.
---------------------------------------------------------------------------
69. Copies of the standards incorporated by reference may be
obtained from NAESB, whose offices are located at 801 Travis Street,
Suite 1675, Houston, TX 77002, Phone: (713) 356-0060. NAESB's website
can be accessed at https://www.naesb.org. Once COVID restrictions are
lifted, copies of the standards may be inspected at the Federal Energy
Regulatory Commission, Public Reference and Files Maintenance Branch,
888 First Street NE, Washington, DC 20426, Phone: (202) 502-8371,
https://www.ferc.gov.
70. NAESB is a private, consensus standards developer that develops
voluntary wholesale and retail standards related to the energy
industry. The procedures utilized by NAESB make its standards
reasonably available to those affected by the Commission's
regulations.\77\ Participants can join NAESB, for an annual membership
cost of $8,000, which entitles them to full participation in NAESB and
enables them to obtain these standards at no additional cost.\78\ Non-
members may obtain the Individual Standards Manual or Booklet for $250
per manual or booklet.\79\ Non-members also may obtain the complete set
of Business Practice Standards on USB flash drive for $2,000. NAESB
also provides a free electronic read-only version of the standards for
a three-business day period or, in the case of a regulatory comment
period, through the end of the comment period.\80\ In addition, NAESB
considers requests for waivers of the charges on a case-by-case basis
based on need.
---------------------------------------------------------------------------
\77\ As a private, consensus standards developer, NAESB needs
the funds obtained from its membership fees and sales of its
Individual Standards Manual or Booklet to finance the organization.
The parties affected by these Commission regulations generally are
highly sophisticated and have the means to acquire the information
they need to effectively participate in Commission proceedings.
\78\ NAESB, NAESB Membership Application, https://www.naesb.org/pdf4/naesbapp.pdf.
\79\ NAESB, NAESB Materials Order Form, https://www.naesb.org/pdf/ordrform.pdf.
\80\ Procedures for non-members to evaluate work products before
purchasing are available at https://www.naesb.org/misc/NAESB_Nonmember_Evaluation.pdf.
---------------------------------------------------------------------------
VI. Information Collection Statement
71. The following collection of information contained in this final
rule is subject to review by the Office of Management and Budget (OMB)
under section 3507(d) of the Paperwork Reduction Act of 1995, 44 U.S.C.
3507(d).\81\ OMB's regulations require approval of certain information
collection requirements imposed by agency rules.\82\ 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
this 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.
---------------------------------------------------------------------------
\81\ 44 U.S.C. 3507(d).
\82\ 5 CFR 1320.11.
---------------------------------------------------------------------------
72. The Commission solicits comments on the Commission's need for
this information, whether the information will have practical utility,
the accuracy of the provided burden estimates, ways to enhance the
quality, utility, and clarity of the information to be collected, and
any suggested methods for minimizing respondents' burden, including the
use of automated information techniques.
73. The following burden estimate is based on the projected costs
for the industry to implement the new and revised business practice
standards
[[Page 29501]]
adopted by NAESB and proposed to be incorporated by reference in this
final rule.\83\ The NERC Compliance Registry, as of March 5, 2021,
identifies approximately 162 entities in the United States that are
subject to this final rule.
---------------------------------------------------------------------------
\83\ Commission staff estimates that industry is similarly
situated in terms of hourly cost (wages plus benefits). Based on the
Commission average cost (wages plus benefits) for 2020, $83.00/hour
is used.
Docket Nos. RM05-5-029 and RM05-05-030
--------------------------------------------------------------------------------------------------------------------------------------------------------
Annual number
Number of of responses Total number Average burden (hrs.) & cost ($) Total annual burden hrs. & total
respondents per respondent of responses per response annual cost ($)
(1) (2) (1) * (2) = (4)............................. (3) * (4) = (5)
(3)
--------------------------------------------------------------------------------------------------------------------
FERC-516E.......................... 162 1 162 6 hrs.; $498.................... 972 hrs.; $80,676.
FERC-717........................... 162 1 162 30 hrs.; $2,490................. 4,860 hrs.; $403,380.
--------------------------------------------------------------------------------------------------------------------
Total.......................... .............. ............... 324 $2,988.......................... 5,832 hrs.; $484,056.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Costs to Comply with Paperwork Requirements:
The estimated annual costs are as follows:
FERC-516E: 162 entities x 1 response/entity (6 hours/response x
$83.00/hour) = $80,676.
FERC-717: 162 entities x 1 response/entity (30 hours/response x
$83.00/hour) = $403,380.
Titles: FERC-516E, Electric Rate Schedule and Tariff Filings and
FERC-717, Standards for Business Practices and Communication Protocols
for Public Utilities.
Action: Final rule.
OMB Control Nos: 1902-0290 (FERC-516E) and 1902-0173 (FERC-717).
Respondents: Business or other for profit, and not for profit
institutions.
Frequency of Responses: One-time.
Necessity of the Information: This rule will amend its regulations
to incorporate by reference the latest version (Version 003.3) of the
Standards for Business Practices and Communication Protocols for Public
Utilities adopted by the Wholesale Electric Quadrant (WEQ) of the North
American Energy Standards Board (NAESB). WEQ Version 003.3 includes
standards developed in accordance with recommendations of the
Department of Energy sponsored cybersecurity surety assessment of the
NAESB Business Practice Standards that was conducted in 2019.
Additional standards were developed in response to the directives from
FERC Order No. 890, such as the standards developed to support Parallel
Flow Visualization, intended to improve congestion management
procedures for the Eastern Interconnection. The WEQ Version 003.3
Standards also include, in their entirety, the WEQ-023 Modeling
Business Practice Standards contained in the WEQ Version 003.1
Standards, which address the technical issues affecting ATC and AFC
calculation for wholesale electric transmission services, with the
addition of certain revisions and corrections. The revisions made by
NAESB in the WEQ Version 003.3 Standards are designed to aid public
utilities with the consistent and uniform implementation of
requirements promulgated by the Commission as part of the pro forma
Open Access Transmission Tariff.
Internal review: The Commission has reviewed NAESB's proposal and
has made a preliminary determination that the proposed revisions are
both necessary and useful. In addition, 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.
74. Interested persons may obtain information on the reporting
requirements by contacting the Federal Energy Regulatory Commission,
Office of the Executive Director, 888 First Street NE, Washington, DC
20426 [Attention: Ellen Brown, email: [email protected], phone:
(202) 502-8663].
VII. Environmental Analysis
75. 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.\84\ The
Commission has categorically excluded certain actions from these
requirements as not having a significant effect on the human
environment.\85\ The actions adopted here fall within categorical
exclusions in the Commission's regulations for rules that are
clarifying, corrective, or procedural, for information gathering
analysis, and dissemination, and for sales, exchange, and
transportation of natural gas and electric power that requires no
construction of facilities. Therefore, an environmental assessment is
unnecessary and has not been prepared in this final rule.
---------------------------------------------------------------------------
\84\ Regulations Implementing the Nat'l Envt'l Pol'y Act, Order
No. 486, 52 FR 47897 (Dec. 17, 1987), FERC Stats. & Regs. ] 30,783
(1987) (cross-referenced at 41 FERC ] 61,284).
\85\ 18 CFR 380.4.
---------------------------------------------------------------------------
VIII. Regulatory Flexibility Act
76. The Regulatory Flexibility Act of 1980 (RFA) \86\ generally
requires a description and analysis of final rules that will have
significant economic impact on a substantial number of small entities.
The RFA does not mandate any particular outcome in a rulemaking. It
only requires consideration of alternatives that are less burdensome to
small entities and an agency explanation of why alternatives were
rejected.
---------------------------------------------------------------------------
\86\ 5 U.S.C. 601-612.
---------------------------------------------------------------------------
77. The Small Business Administration (SBA) revised its size
standards (effective January 22, 2014) for electric utilities from a
standard based on megawatt hours to a standard based on the number of
employees, including affiliates. Under SBA's standards, some
transmission owners will fall under the following category and
associated size threshold: electric bulk power transmission and
control, at 500 employees.\87\ The Commission estimates that 24 of the
162 respondents are small or 14.8 percent of the respondents affected
by this final rule.
---------------------------------------------------------------------------
\87\ 13 CFR 121.201, Sector 22 (Utilities), NAICS code 221121
(Electric Bulk Power Transmission and Control).
---------------------------------------------------------------------------
78. The Commission estimates that the impact on these entities is
consistent with the paperwork burden of $2,988 per entity used
above.\88\ The Commission does not consider $2,988 to be a significant
economic impact. Based on the above, the Commission certifies that
implementation of the proposed Business Practice Standards will not
have a significant impact on a substantial number of small entities.
Accordingly, no initial regulatory flexibility analysis is required.
---------------------------------------------------------------------------
\88\ 36 hours at $83.00/hour = $2,988.
---------------------------------------------------------------------------
[[Page 29502]]
IX. Document Availability
79. In addition to publishing the full text of this document in the
Federal Register, the Commission provides all interested persons an
opportunity to view and/or print the contents of this document via the
internet through FERC's Home Page (https://www.ferc.gov). 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).
80. From FERC's Home Page on the internet, this information is
available on eLibrary. The full text of this document is available on
eLibrary in PDF and Microsoft Word format for viewing, printing, and/or
downloading. To access this document in eLibrary, type the docket
number excluding the last three digits of this document in the docket
number field.
81. User assistance is available for eLibrary and the FERC's
website during normal business hours from FERC 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].
X. Effective Date and Congressional Notification
82. These regulations are effective August 2, 2021. The Commission
has determined, with the concurrence of the Administrator of the Office
of Information and Regulatory Affairs of OMB, that this rule is not a
``major rule'' as defined in section 351 of the Small Business
Regulatory Enforcement Fairness Act of 1996. The Final Rule will be
submitted to the Senate, House, and Government Accountability Office.
List of Subjects
18 CFR Part 37
Electric power, Electric utilities.
18 CFR Part 38
Business practice standards, Electric utilities, Incorporation by
reference, Reporting and recordkeeping requirements.
By the Commission.
Issued: May 20, 2021.
Kimberly D. Bose,
Secretary.
In consideration of the foregoing, the Commission amends parts 37
and 38, chapter I, title 18, Code of Federal Regulations, as follows:
PART 37--OPEN ACCESS SAME-TIME INFORMATION SYSTEMS
0
1. The authority citation for part 37 continues to read as follows:
Authority: 16 U.S.C. 791-825r, 2601-2645; 31 U.S.C. 9701; 42
U.S.C. 7101-7352.
0
2. Amend Sec. 37.6 by revising paragraph (b)(2)(i) to read as follows:
Sec. 37.6 Information to be posted on the OASIS.
* * * * *
(b) * * *
(2) * * *
(i) Information used to calculate any posting of ATC and TTC must
be dated and time-stamped and all calculations shall be performed
according to consistently applied methodologies referenced in the
Transmission Provider's transmission tariff and shall be based on
Commission-approved Reliability Standards, business practice and
electronic communication standards, and related implementation
documents, as well as current industry practices, standards and
criteria. Such calculations shall be conducted in a manner that is
transparent, consistent with anticipated system conditions and outages
for the relevant timeframe, and not unduly discriminatory or
preferential.
* * * * *
PART 38--STANDARDS FOR PUBLIC UTILITY BUSINESS OPERATIONS AND
COMMUNICATIONS
0
3. The authority citation for part 38 continues to read as follows:
Authority: 16 U.S.C. 791-825r, 2601-2645; 31 U.S.C. 9701; 42
U.S.C. 7101-7352.
0
4. Revise Sec. 38.1 to read as follows:
Sec. 38.1 Incorporation by reference of North American Energy
Standards Board Wholesale Electric Quadrant standards.
(a) Any public utility that owns, operates, or controls facilities
used for the transmission of electric energy in interstate commerce or
for the sale of electric energy at wholesale in interstate commerce and
any non-public utility that seeks voluntary compliance with
jurisdictional transmission tariff reciprocity conditions must comply
with the business practice and electronic communication standards
promulgated by the North American Energy Standards Board (NAESB)
Wholesale Electric Quadrant (WEQ) that are incorporated by reference in
paragraph (b) of this section.
(b)(1) The material incorporated by reference in this section was
approved by the Director of the Federal Register in accordance with 5
U.S.C. 552(a) and 1 CFR part 51. All approved material may be inspected
at the Federal Energy Regulatory Commission, Public Reference and Files
Maintenance Branch, 888 First Street NE, Washington, DC 20426, Tel:
(202) 502-8371, www.ferc.gov, and is available from the sources listed
in paragraph (b)(2) of this section. It is also available for
inspection at the National Archives and Records Administration (NARA).
For information on the availability of this material at NARA, email
[email protected], or go to: https://www.archives.gov/federal-register/cfr/ibr-locations.html .
(2) North American Energy Standards Board (NAESB), 801 Travis
Street, Suite 1675, Houston, TX 77002, Tel: (713) 356-0060. NAESB's
website is at https://www.naesb.org/. The NAESB WEQ Business Practice
Standards; Standards and Models the Commission incorporates by
reference are as follows:
(i) WEQ-000, Abbreviations, Acronyms, and Definition of Terms (WEQ
Version 003.1, September 30, 2015) (including only the definitions of
Interconnection Time Monitor, Time Error, and Time Error Correction);
(ii) WEQ-000, Abbreviations, Acronyms, and Definition of Terms (WEQ
Version 003.3, March 30, 2020);
(iii) WEQ-001, Open Access Same-Time Information Systems (OASIS),
(WEQ Version 003.3, March 30, 2020);
(iv) WEQ-002, Open Access Same-Time Information Systems (OASIS)
Business Practice Standards and Communication Protocols (S&CP), (WEQ
Version 003.3, March 30, 2020);
(v) WEQ-003, Open Access Same-Time Information Systems (OASIS) Data
Dictionary, (WEQ Version 003.3, March 30, 2020);
(vi) WEQ-004, Coordinate Interchange (WEQ Version 003.3, March 30,
2020);
(vii) WEQ-005, Area Control Error (ACE) Equation Special Cases (WEQ
Version 003.3, March 30, 2020);
(viii) WEQ-006, Manual Time Error Correction (WEQ Version 003.1,
Sept. 30, 2015);
(ix) WEQ-007, Inadvertent Interchange Payback (WEQ Version 003.3,
March 30, 2020);
(x) WEQ-008, Transmission Loading Relief (TLR)--Eastern
Interconnection (WEQ Version 003.3, March 30, 2020);
(xi) WEQ-011, Gas/Electric Coordination (WEQ Version 003.3, March
30, 2020);
(xii) WEQ-012, Public Key Infrastructure (PKI) (WEQ Version 003.3,
March 30, 2020);
(xiii) WEQ-013, Open Access Same-Time Information Systems (OASIS)
[[Page 29503]]
Implementation Guide, (WEQ Version 003.3, March 30, 2020);
(xiv) WEQ-015, Measurement and Verification of Wholesale
Electricity Demand Response (WEQ Version 003.3, March 30, 2020);
(xv) WEQ-021, Measurement and Verification of Energy Efficiency
Products (WEQ Version 003.3, March 30, 2020);
(xvi) WEQ-022, Electric Industry Registry (WEQ Version 003.3, March
30, 2020); and
(xvii) WEQ-023, Modeling. (WEQ Version 003.3, March 30, 2020).
Note: The following appendix will not be published in the Code
of Federal Regulations
Appendix I
Standards Affected by the Revisions To Implement Recommendations
Following Sandia's Surety Assessment on Cybersecurity
------------------------------------------------------------------------
Standard Revisions
------------------------------------------------------------------------
WEQ-000-1
------------------------------------------------------------------------
Deleted seven abbreviations/acronyms... DNS--Domain Name Service.
IPCP--Internet Protocol Control
Protocol.
NTP--Network Time Protocol.
PPP--Point to Point Protocol.
SLIP--Serial Line Internet
Protocol.
SNMP--Simple Network Management
Protocol.
SSL--Secure Sockets Layer.
Added one abbreviation/acronym......... OWASP--Open Web Application
Security Project.
------------------------------------------------------------------------
WEQ-001
------------------------------------------------------------------------
Revised one standard................... WEQ-001-13.1.3.3.
------------------------------------------------------------------------
WEQ-002
------------------------------------------------------------------------
Revised 14 standards................... WEQ-002-2.3.
WEQ-002-2.4.
WEQ-002-4.2.1.1.
WEQ-002-4.2.1.2.
WEQ-002-4.2.1.3.
WEQ-002-4.2.2.
WEQ-002-5.
WEQ-002-5.1.1.
WEQ-002-5.1.2.
WEQ-002-5.1.3.
WEQ-002-5.6.
WEQ-002-101.2.3.1.
WEQ-002-101.3.3.2.
WEQ-002-101.3.3.3.
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[FR Doc. 2021-11352 Filed 6-1-21; 8:45 am]
BILLING CODE 6717-01-P
