Electric Reliability Organization Proposal To Retire Requirements in Reliability Standards Under the NERC Standards Efficiency Review, 74879-74884 [2023-24095]
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Rules and Regulations
Federal Register
Vol. 88, No. 210
Wednesday, November 1, 2023
This section of the FEDERAL REGISTER
contains regulatory documents having general
applicability and legal effect, most of which
are keyed to and codified in the Code of
Federal Regulations, which is published under
50 titles pursuant to 44 U.S.C. 1510.
Reliability Standards) 2 in their entirety
is just, reasonable, not unduly
discriminatory or preferential, and in
the public interest.
The Code of Federal Regulations is sold by
the Superintendent of Documents.
A. Section 215 of the FPA and the
Mandatory Reliability Standards
2. Section 215 of the FPA provides
that the Commission may certify an
ERO, the purpose of which is to develop
mandatory and enforceable Reliability
Standards, subject to Commission
review and approval.3 Reliability
Standards may be enforced by the ERO,
subject to Commission oversight, or by
the Commission independently.4
Pursuant to section 215 of the FPA, the
Commission established a process to
select and certify an ERO,5 and
subsequently certified NERC.6
DEPARTMENT OF ENERGY
Federal Energy Regulatory
Commission
18 CFR Part 40
[Docket No. RM19–17–001; Order No. 902]
Electric Reliability Organization
Proposal To Retire Requirements in
Reliability Standards Under the NERC
Standards Efficiency Review
Federal Energy Regulatory
Commission, Department of Energy.
ACTION: Final action.
AGENCY:
The Federal Energy
Regulatory Commission (Commission)
approves the retirement of six
Reliability Standards and their
requirements proposed by the North
American Electric Reliability
Corporation, the Commission-certified
Electric Reliability Organization.
DATES: This action is effective February
1, 2024.
FOR FURTHER INFORMATION CONTACT:
Michael Gandolfo (Technical
Information), Office of Electric
Reliability, Federal Energy Regulatory
Commission, 888 First Street NE,
Washington, DC 20426, Telephone:
(202) 502–6817
Mark Bennett (Legal Information), Office
of the General Counsel, Federal
Energy Regulatory Commission, 888
First Street NE, Washington, DC
20426, Telephone: (202) 502–8524
SUPPLEMENTARY INFORMATION: 1.
Pursuant to section 215(d)(2) of the
Federal Power Act (FPA),1 the
Commission approves the North
American Electric Reliability
Corporation’s (NERC) request to retire
six Reliability Standards with a
combined total of 56 requirements. For
the reasons discussed below, we
determine that the retirement of six
Reliability Standards (the MOD A
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SUMMARY:
1 16
U.S.C. 824o(d)(2).
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I. Background
B. NERC Petition
3. On June 7, 2019, NERC submitted
a petition proposing, among other
things, the retirement of the MOD A
Reliability Standards, in their entirety
without replacement (NERC Petition).
NERC explained that these requirements
are administrative in nature or relate
expressly to commercial or business
practices and provide little or no
reliability benefit.7 NERC explained that
the MOD A Reliability Standards were
submitted in response to Commission’s
directives in Order No. 890 and Order
No. 693 to develop Reliability Standards
‘‘to provide for consistency and
transparency in the methodologies used
by transmission providers to calculate
[Available Transfer Capability].’’ 8 NERC
2 Reliability Standards MOD–001–1a (Available
Transmission System Capability), MOD–004–1
(Capacity Benefit Margin), MOD–008–1
(Transmission Reliability Margin Calculation
Methodology), MOD–028–2 (Area Interchange
Methodology), MOD–029–2a (Rated System Path
Methodology), and MOD–030–3 (Flowgate
Methodology).
3 16 U.S.C. 824o(c).
4 Id. 824o(e).
5 Rules Concerning Certification of the Elec.
Reliability Org. & Procedures for the Establishment,
Approval, & Enf’t. of Elec. Reliability Standards,
Order No. 672, 114 FERC ¶ 61,104, order on reh’g,
Order No. 672–A, 114 FERC ¶ 61,328 (2006).
6 N. Am. Elec. Reliability Corp., 116 FERC
¶ 61,062, order on reh’g and compliance, 117 FERC
¶ 61,126 (2006), aff’d sub nom. Alcoa, Inc. v. FERC,
564 F.3d 1342 (D.C. Cir. 2009).
7 Id. at 21–22.
8 NERC Petition at 18 (citing 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
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clarified that ‘‘[Available Transfer
Capability] and [Available Flowgate
Methodology], as well as e-Tags, are
commercially-focused elements
facilitating interchange and balancing of
interchange,’’ and that system operators
maintain reliability by monitoring Realtime flows based on System Operating
Limits and Interconnection Reliability
Operating Limits.9
C. Notice of Proposed Rulemaking
4. On January 23, 2020, the
Commission issued a NOPR proposing
to approve the retirement of 74 of the 77
Reliability Standard requirements
requested by NERC.10 In the NOPR, the
Commission proposed, inter alia, to
approve the retirement of the MOD A
Reliability Standards, but noted that, if
approved, the Commission intended to
coordinate the effective dates for the
retirement of the MOD A Reliability
Standards with successor North
American Energy Standards Board
(NAESB) business practice standards.11
The Commission explained that
equivalent NAESB business practice
standards are expected to replace the
MOD A Reliability Standards proposed
for retirement.12
5. The Commission noted that NERC’s
proposed retirements ‘‘are largely
consistent with the Commissionapproved bases for retiring Reliability
Standard requirements articulated in
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 FR
12540 (Mar. 25, 2009), 126 FERC ¶ 61,228 (2009);
Mandatory Reliability Standards for the Bulk-Power
Sys., Order No. 693, 72 FR 16416 (Apr. 4, 2007),
118 FERC ¶ 61,218, at PP 1020–1126 order on reh’g,
Order No. 693–A, 120 FERC ¶ 61,053 (2007)). In
2009, the Commission approved the six MOD
Reliability Standards containing methodologies for
calculating Available Transfer Capability (ATC) or
Available Flowgate Capacity (AFC). See, 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 (2009), order on
reh’g, Order No. 729–A,75 FR 26057 (May 11, 131
FERC ¶ 61,109 (2010).
9 NERC Petition at 21.
10 Elec. Reliability Org. Proposal to Retire
Requirements in Reliability Standards Under the
NERC Standards Efficiency Rev., Notice of
Proposed Rulemaking, 170 FERC ¶ 61,032 (Jan. 23,
2020) (NOPR).
11 Id. P 21 n.35.
12 Id.
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prior proceedings.’’ 13 In proposing to
approve NERC’s request, the
Commission stated that NERC
‘‘provided an adequate basis to
conclude that the requirements
proposed for retirement: (1) provide
little or no reliability benefit; (2) are
administrative in nature or relate
expressly to commercial or business
practices; or (3) are redundant with
other Reliability Standards.’’ 14 Further,
the Commission acknowledged NERC’s
assertion that retiring the MOD A
Reliability Standards is justified
because, being primarily administrative
or related to commercial or business
practices, they ‘‘no longer serve a
reliability purpose.’’ 15 Specifically, the
Commission noted NERC’s assertion
that the MOD A Reliability Standards
contain ‘‘commercially-focused
elements facilitating interchange and
balancing of interchange,’’ and system
operators maintain reliability by
monitoring Real-time flows based on
System Operating Limits and
Interconnection Reliability Operating
Limits.16
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D. NOPR Comments
6. The Commission received five sets
of comments—two of which were
specific to the proposed retirement of
the MOD A Reliability Standards.17
Neither of the two comments the
Commission received in response to
NERC’s proposed retirement of the MOD
A Reliability Standards opposed NERC’s
proposal. In its comments, Bonneville
states that it appreciates the
Commission’s recognition of the
relationship between the MOD A
retirements and the publication of
Business Practice Standards by NAESB
to replace the commercial aspects of the
MOD requirements.18 Further,
Bonneville believes ‘‘it will be
important to continue the efforts to
avoid commercial requirements in the
NERC Reliability Standards and,
likewise, avoid reliability requirements
in NAESB Business Practice
Standards.’’ 19 Similarly, WAPA
expressed its support for the direction of
the industry and the work performed by
13 Id. P 1 (citing N. Am. Elec. Reliability Corp.,
138 FERC ¶ 61,193, at P 81 (March 2012 Order),
order on reh’g and clarification, 139 FERC ¶ 61,168
(2012); Elec. Reliability Org. Proposal to Retire
Requirements in Reliability Standards, Order No.
788, 78 FR 73424 (Dec. 6, 2013), 145 FERC ¶ 61,147,
at P 1 (2013)).
14 Id. P 25.
15 Id. P 21.
16 See id. P 22 (citing NERC Petition at 21).
17 These two comments were received from the
Bonneville Power Administration (Bonneville) and
the Western Area Power Administration (WAPA).
18 Bonneville Comments at 3.
19 Id.
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the Standards Efficiency Review project.
More specifically, WAPA agreed with
NERC’s assertion that Available Transfer
Capability/Available Flowgate
Capability, along with e-Tags, ‘‘are
commercially-focused elements
facilitating interchange and balancing of
interchange.’’ 20 WAPA also asked the
Commission to ensure that ‘‘appropriate
measures are in place to ensure
stakeholder[s] can provide input into
the development of the new business
practices.’’ 21
E. Order No. 873 and the Prior
Retirements of Other Reliability
Standard Requirements
7. On September 17, 2020, the
Commission issued Order No. 873,22
approving the retirement of 18
Reliability Standard requirements,23
remanding two requirements for further
consideration by NERC, and taking no
action on the proposed retirement of the
MOD A Reliability Standards.24 In
Order No. 873, the Commission
confirmed the approach proposed in the
NOPR and provided developments since
then, noting that on March 30, 2020,
NAESB submitted Version 003.3 of the
Standards for Business Practices and
Communication Protocols for Public
Utilities, including the Modeling
business practices intended to replace
the MOD A Reliability Standards upon
their retirement, for which the
Commission had issued a NOPR.25 The
Commission concluded that ‘‘[i]n light
of these developments, this final action
does not address the retirement of MOD
A Reliability Standards. The
Commission will determine the
appropriate action regarding the
proposed retirement of the MOD A
Reliability Standards at a later time.’’ 26
F. NAESB Standards for Business
Practices and Communications
Protocols for Public Utilities
8. In Order No. 676–J, the
Commission revised its regulations to
incorporate by reference, as mandatory
enforceable requirements, the current
version of NAESB’s Standards for
Business Practices and Communication
Protocols for Public Utilities adopted by
20 WAPA
Comments at 3.
at 5.
22 Elec. Reliability Org. Proposal to Retire
Requirements in Reliability Standards Under the
NERC Standards Efficiency Rev., Order No. 873,
172 FERC ¶ 61,225 (2020).
23 NERC withdrew the originally requested
retirement of Reliability Standard VAR–001–6,
Requirement R2 on May 14, 2020.
24 Id. P 4.
25 Id. (citing Standards for Bus. Pracs. & Commc’n
Protocols for Pub. Utils., Notice of Proposed
Rulemaking, 172 FERC ¶ 61,047 (2020)).
26 Id.
21 Id.
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the Wholesale Electric Quadrant (WEQ)
of NAESB, Version 003.3 of the NAESB
WEQ Business Practice Standards (WEQ
Version 003.3 Standards).27 Among
other things, the WEQ Version 003.3
Standards address the technical issues
affecting Available Transfer Capability
and Available Flowgate Capability
calculation for wholesale transmission
services, with the addition of certain
revisions and corrections. The
Commission also revised its regulations
to provide that transmission providers
must avoid unduly discriminatory and
preferential treatment in the calculation
of Available Transfer Capability.28
9. The first compliance filing
concerned the cybersecurity and
Parallel Flow Visualization standards
included in Version 003.3. The
Commission directed utilities to make
the second compliance filing reflecting
the remainder of the revisions in
Version 003.3 12 months after
implementation of the WEQ Version
003.2 Standards, or no earlier than
October 27, 2022, with an
implementation date no earlier than
three months following compliance
filings submission (no earlier than
January 27, 2023), resulting in a 15month implementation period.29
II. Commission Determination
10. Pursuant to section 215(d)(2) of
the FPA,30 the Commission approves
the proposed retirement of the MOD A
Reliability Standards, to be coordinated
with the effective date of the tariff
records accepted in the orders on the
second set of Order No. 676–J
compliance filings, February 1, 2024.31
As explained herein, we are satisfied
with NERC’s justification for these
retirements. In particular, we note
NERC’s explanation that the MOD A
Reliability Standards are no longer
necessary because Available Transfer
Capability, Available Flowgate
Capability, and e-Tags fundamentally
pertain to commercial and business
operations, and that system operators
27 Standards for Bus. Pracs. & Commc’n Protocols
for Pub. Utils., Order No. 676–J, 86 FR 29491 (June
2, 2021), 175 FERC ¶ 61,139 (2021).
28 Id. P 33.
29 Id. PP 48, 50. The Commission noted that the
implementation of the NAESB Available Transfer
Capability -related standards contained in WEQ–
023 will be coordinated with the retirement of the
NERC MOD A Reliability Standards. Id. P 43 n.53.
30 16 U.S.C. 824o(d)(2).
31 See ISO-New England, 185 FERC ¶ 61,070
(2023); N.Y. Indep. Sys. Operator, Inc., 185 FERC
¶ 61,067 (2023); PJM Interconnection, L.L.C., 185
FERC ¶ 61,068 (2023); Ala. Power Co., 185 FERC
¶ 61,073; Versant Power, 185 FERC ¶ 61,065 (2023);
Cal. Indep. Sys. Operator Corp., 185 FERC ¶ 61,072
(2023); MATL LLP, 185 FERC ¶ 61,074 (2023);
Golden Spread Elec. Coop., Inc., 185 FERC ¶ 61,071
(2023).
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maintain reliability by monitoring Realtime flows based on System Operating
Limits and Interconnection Reliability
Operating Limits. We are further
persuaded that retiring the MOD A
Reliability Standards will not result in
a reliability gap.
11. Regarding WAPA’s comments
focused on the importance of ensuring
stakeholders’ ability to provide input.32
Order No. 676–J explained that NAESB
has procedures to ensure that interested
persons have input into NAESB’s
standard development regardless of the
interested persons’ NAESB membership
and that ‘‘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.’’ 33 Therefore, we believe
WAPA’s concerns were fully addressed.
III. Information Collection Statement
12. The information collection
requirements contained in this final
action are subject to review by the
Office of Management and Budget
(OMB) under section 3507(d) of the
Paperwork Reduction Act of 1995.34
OMB’s regulations require approval of
certain information collection
requirements imposed by agency
rules.35 Upon approval of a collection of
information, OMB will assign an OMB
control number and expiration date.
Comments on the collection of
information are due within 60 days of
the date this order is published in the
Federal Register. 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. The Commission
solicits comments on the Commission’s
need for this information, whether the
information will have practical utility,
the accuracy of the burden estimates,
ways to enhance the quality, utility, and
clarity of the information to be collected
or retained, and any suggested methods
for minimizing respondents’ burden,
including the use of automated
information techniques.
13. These MOD Standards are
currently located in the FERC–725A
(OMB Control No. 1902–0244)
collection. The collection is currently
approved by OMB and contains
Reliability Standards MOD–0001–1a,
MOD–004–1, MOD–008–1, MOD–028–
74881
2, MOD–029–2a and MOD–030–3 (the
MOD A Reliability Standards), along
with other Reliability Standards. In
Docket No. RM19–17–001, the
Commission approves the retirement of
these six current OMB-approved MOD
Reliability Standards and their
associated requirements. The
retirements will be coordinated with the
effective dates for the successor NAESB
business practice standards, which
mirror the retired responsibilities from
the MOD–A Reliability Standards.
14. Reliability Standards MOD–001–
1a, MOD–004–1, MOD–008–1, MOD–
028–2, MOD–029–2a, and MOD–030–3
are all currently approved within the
FERC–725A information collection. The
number of respondents below is based
on an estimate of the NERC compliance
registry for transmission service
providers (TSP), transmission operators
(TOP), transmission planners (TP),
resource planners (RP), and balancing
authorities (BA).36 As these entities still
have obligation to other NERC
Reliability Standards when updating the
FERC–725A for this collection the
number respondents shall remain the
same and only the man-hours will be
reduced.
MOD–001–1a—AVAILABLE TRANSMISSION SYSTEM CAPABILITY—RETIREMENT
[Burden reduction]
Applicable entity
(respondent)
Number of
respondents
Annual
number of
responses per
respondent
(1)
(2)
I
Annual number of
responses
I
(1) * (2) = (3)
Average burden hours
and cost per response
Total annual burden hours
and cost reduction
(rounded)
(4) 37
(3) * (4) = (5)
I
FERC–725A, OMB Control No. 1902–0244
TSP—Retired ..........................................................
TOP—Retired .........................................................
71
165
1
1
71
165
120 hrs.; $8,144.40 ....
120 hrs.; $8,144.40 ....
8,520 hrs.; $578,252.4.
19,800 hrs.; $1,343,826.
FERC–725A for MOD–001–1a Total Retired ..
........................
........................
..............................
.....................................
28,320 hrs.; $1,922,078.40.
MOD–004–1—CAPACITY BENEFIT MARGIN—RETIREMENT
[Burden reduction] 38
Applicable entity
(respondent)
Number of
respondents
Annual
number of
responses per
respondent
Annual number of
responses
Average burden hours
and cost per response
Total annual burden hours
and cost reduction
(rounded)
(1)
(2)
(1) * (2) = (3)
(4) 39
(3) * (4) = (5)
RP—Retired ............................................................
TSP—Retired ..........................................................
BA—Retired ............................................................
32 WAPA
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33 See
Comments at 5.
Order No. 676–J, 175 FERC ¶ 61,139
at P 5.
34 44 U.S.C. 3507(d).
35 5 CFR 1320.
36 The number of TSP (71), TOP (165), TP (98),
RP (159), and BA (98) are taken based on the NERC
Compliance Registry information as of August 17,
2023, and represent U.S. registered entities.
37 The estimated hourly cost (salary plus benefits)
is a combination based on the Bureau of Labor
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159
71
98
1
1
1
159
71
98
60 hrs.; $4,072.20 ......
60 hrs.; $4,072.20. .....
60 hrs.; $4,072.20 ......
Statistics (BLS), as of 2022, for 75% of the average
of an Electrical Engineer (17–2071) $77.29/hr, 77.29
× .75 = 57.9675 ($57.97-rounded) ($57.97/hour) and
25% of an Information and Record Clerk (43–4199)
$39.58/hr × .25% = 9.895 ($9.90 rounded) ($9.90/
hour), for a total ($57.97 + $9.90 = $67.87/hour).
38 In 2015 the Commission approved the
retirement of the load-serving entity function. See
N. Am. Elec. Reliability Corp., 150 FERC ¶ 61,213
(2015); N. Am. Elec. Reliability Corp., 153 FERC
¶ 61,024 (2015). NERC has an ongoing standard
drafting team project to replace this function as an
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9,540 hrs.; $647,479.80.
4,260 hrs.; $289,126.20.
5,880 hrs.; $399,075.60.
applicable entity in the Reliability Standards with
the distribution provider function. See Project2022–02 Modifications to TPL–001 and MOD–032.
39 The estimated hourly cost (salary plus benefits)
is a combination based on the Bureau of Labor
Statistics (BLS), as of 2022, for 75% of the average
of an Electrical Engineer (17–2071) $77.29/hr, 72.29
× .75 = 57.9576 ($57.96-rounded) ($57.96/hour) and
25% of an Information and Record Clerk (43–4199)
$39.58/hr, $39.58 × .25% = 9.895 ($9.90 rounded)
($9.90/hour), for a total ($57.96+$9.90 = $67.86/
hour).
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MOD–004–1—CAPACITY BENEFIT MARGIN—RETIREMENT—Continued
[Burden reduction] 38
Applicable entity
(respondent)
Number of
respondents
Annual
number of
responses per
respondent
Annual number of
responses
Average burden hours
and cost per response
Total annual burden hours
and cost reduction
(rounded)
(1)
(2)
(1) * (2) = (3)
(4) 39
(3) * (4) = (5)
TP—Retired ............................................................
203
1
203
60 hrs.; $4,072.20 ......
12,180 hrs.; $826,656.60.
FERC–725A for MOD–004–1 Total Retired ....
........................
........................
..............................
.....................................
31,860 hrs.; $2,162,338.20.
MOD–008–1—TRANSMISSION RELIABILITY MARGIN CALCULATION METHODOLOGY—RETIREMENT
[Burden reduction]
Applicable entity
(respondent)
Number of
respondents
Annual
number of
responses per
respondent
Annual number of
responses
Average burden hours
and cost per response
Total annual burden hours
and cost reduction
(rounded)
(1)
(2)
(1) * (2) = (3)
(4) 40
(3) * (4) = (5)
FERC–725A, OMB Control No. 1902–0244
TOP—Retired .........................................................
165
1
165
60 hrs.; $4,072.20 ......
9,900 hrs.; $671,913.
FERC–725A for MOD–008–1 Total Retired ....
........................
........................
..............................
.....................................
9,900 hrs.; $671,913.
MOD–028–2—AREA INTERCHANGE METHODOLOGY PROPOSED FOR RETIREMENT
[Burden reduction]
Applicable entity
(respondent)
Number of
respondents
Annual
number of
responses per
respondent
Annual number of
responses
Average burden hours
and cost per response
Total annual burden hours
and cost reduction
(rounded)
(1)
(2)
(1) * (2) = (3)
(4) 41
(3) * (4) = (5)
FERC–725A, OMB Control No. 1902–0244
TOP—Retired .........................................................
TSP—Retired ..........................................................
165
71
1
1
165
71
60 hrs.; $4,072.20 ......
60 hrs.; $4,072.20 ......
9,900 hrs.; $671,913.
4,260 hrs.; $289,126.20.
FERC–725A for MOD–028–2 Total Retired ....
........................
........................
..............................
.....................................
14,160 hrs.; $961,039.20.
MOD–029–2a—FLOWGATE METHODOLOGY—RETIREMENT
[Burden reduction]
Applicable entity
(respondent)
Number of
respondents
Annual
number of
responses per
respondent
Annual number of
response
Average burden hours
and cost per responses
Total annual burden hours
and cost reduction
(rounded)
(1)
(2)
(1) * (2) = (3)
(4) 42
(3) * (4) = (5)
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FERC–725A, OMB Control No. 1902–0244
TOP—Retired .........................................................
TSP—Retired ..........................................................
165
71
1
1
165
71
60 hrs.; $4,072.20 ......
60 hrs.; $4,072.20 ......
9,900 hrs.; $671,913.
4,260 hrs.; $289,126.20.
Total for MOD–029–2a for Retired ..................
........................
........................
..............................
.....................................
14,160 hrs.; $961,039.20.
40 Id.
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74883
MOD–030–2—FLOWGATE METHODOLOGY—RETIREMENT
[Burden reduction]
Applicable entity
(respondent)
Number of
respondents
Annual
number of
responses per
respondent
(1)
(2)
I
Annual number of
responses
I
(1) * (2) = (3)
Average burden
hours and cost
per response 43
Total annual burden hours
and cost reduction
(rounded)
(4)
(3) * (4) = (5)
I
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FERC–725A, OMB Control No. 1902–0244
TOP—Retired .........................................................
TSP—Retired ..........................................................
165
71
1
1
165
71
60 hrs.; $4,072.20 ......
60 hrs.; $4,072.20 ......
9,900 hrs.; $671,913.
4,260 hrs.; $289,126.20.
Total for MOD–030–2 for Retired ....................
........................
........................
..............................
.....................................
14,160 hrs.; $961,039.20.
Title: FERC–725A, Mandatory
Reliability Standards for the Bulk-Power
System.
Action: Modifications to Existing
Collections of Information in FERC–
725A.
OMB Control No: 1902–0244 (FERC–
725A).
Respondents: Business or other for
profit, and not for profit institutions.
Frequency of Responses: On occasion
(and proposed for deletion).
Necessity of the Information:
Reliability Standards MOD–001–1a
(Available Transmission System
Capability), MOD–004–1 (Capacity
Benefit Margin), MOD–008–1
(Transmission Reliability Margin
Calculation Methodology), MOD–028–2
(Area Interchange Methodology), MOD–
029–2a (Rated System Path
Methodology), and MOD030–3
(Flowgate Methodology) (the MOD A
Reliability Standards) were part of the
implementation of the Congressional
mandate of the Energy Policy Act of
2005 to develop mandatory and
enforceable Reliability Standards to
better ensure the reliability of the
nation’s Bulk-Power system. As these
Reliability Standards are retired, their
purpose and requirements have been
moved into the NAESB business
practice standards.
Internal review: The Commission has
reviewed NERC’s proposal and
determined that this action is necessary
to implement section 215 of the FPA.
15. 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, fax: (202) 273–0873].
16. Comments concerning the
information collections and
requirements approved for retirement in
this final action and the associated
burden estimates, should be sent to the
43 Id.
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16:48 Oct 31, 2023
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Commission in this docket and may also
be sent to the Office of Management and
Budget, Office of Information and
Regulatory Affairs [Attention: Desk
Officer for the Federal Energy
Regulatory Commission]. For security
reasons, comments should be sent by
email to OMB at the following email
address: oira_submission@omb.eop.gov.
IV. Environmental Analysis
17. 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.44 The Commission has
categorically excluded certain actions
from this requirement as not having a
significant effect on the human
environment. Included in the exclusion
are rules that are clarifying, corrective,
or procedural or that do not
substantially change the effect of the
regulations being amended.45 The
actions approved here fall within this
categorical exclusion in the
Commission’s regulations.
V. Regulatory Flexibility Act
18. The Regulatory Flexibility Act of
1980 (RFA) 46 generally requires a
description and analysis of final rules
that will have significant economic
impact on a substantial number of small
entities.
19. The RFA mandates consideration
of regulatory alternatives that
accomplish the stated objectives of a
rule and that minimize any significant
economic impact on a substantial
number of small entities. The Small
Business Administration’s Office of Size
Standards develops the numerical
definition of a small business.47 The
Small Business Administration has
established size standards, for the types
44 Reguls. Implementing the Nat’l Env’t Policy
Act, Order No. 486, FERC Stats. & Regs. Preambles
1986–1990 ¶ 30,783 (1987) (cross-referenced at 41
FERC ¶ 61,284).
45 18 CFR 380.4(a)(2)(ii).
46 5 U.S.C. 601–612.
47 13 CFR 121.101.
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of affected entities that range from a
maximum of 250–1,000 employees for
an entity and its affiliates to be
considered small.
20. This final action accepts the
request of NERC, the Commissioncertified ERO, to retire the MOD A
Reliability Standards and recognizes
that NAESB business practice standards
will cover the obligations. This final
action reduces paperwork burdens for
both large and small business entities.
The Commission estimates the total
industry reduction in burden for all
entities (large and small) to be 112,560
hours or 68.5 hours per response.
21. Based on the information above,
the Commission certifies that the
proposed reductions will not have a
significant impact on a substantial
number of small entities. Accordingly,
no initial regulatory flexibility analysis
is required. The Commission certifies
that this final action will not have a
significant economic impact on a
substantial number of small entities.
VI. Document Availability
22. In addition to publishing the full
text of this document in the Federal
Register, the Commission provides all
interested persons an opportunity to
view and/or print the contents of this
document via the internet through the
Commission’s Home Page (https://
www.ferc.gov).
23. 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.
24. 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
E:\FR\FM\01NOR1.SGM
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74884
Federal Register / Vol. 88, No. 210 / Wednesday, November 1, 2023 / Rules and Regulations
Public Reference Room at
public.referenceroom@ferc.gov.
VII. Effective Date and Congressional
Notification
25. These regulations are effective
February 1, 2024. 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.
By the Commission.
Issued October 26, 2023.
Debbie-Anne A. Reese,
Deputy Secretary.
[FR Doc. 2023–24095 Filed 10–31–23; 8:45 am]
BILLING CODE 6717–01–P
DEPARTMENT OF THE TREASURY
Bureau of the Fiscal Service
31 CFR Part 240
RIN 1530–AA22
Indorsement and Payment of Checks
Drawn on the United States Treasury
Bureau of the Fiscal Service,
Treasury.
ACTION: Final rule.
AGENCY:
The Bureau of the Fiscal
Service (Fiscal Service) of the
Department of the Treasury (Treasury) is
amending its regulations that govern the
payment of checks drawn on the United
States Treasury (Treasury checks). The
amendments coincide with the
development of Fiscal Service’s
enhanced check post payment
processing system, which will provide
Treasury check return information to
financial institutions more quickly than
today. Financial institutions will receive
this information through their existing
communication channels with the
Federal Reserve Banks (FRBs), generally
prior to the expiration of the time
periods in which financial institutions
must make Treasury check deposits
available for withdrawal as prescribed
by Regulation CC, Availability of Funds
and Collection of Checks. Accordingly,
Fiscal Service is amending its
regulations so that, with certain
exceptions, a financial institution will
be liable if it pays a canceled Treasury
check, also known as a payment over
cancellation (POC), without waiting to
receive the return information that
would enable the financial institution to
know the check has been canceled.
DATES: Effective December 1, 2023.
ddrumheller on DSK120RN23PROD with RULES1
SUMMARY:
VerDate Sep<11>2014
16:48 Oct 31, 2023
Jkt 262001
Currently, when either Fiscal Service
or a payment certifying agency puts a
‘‘stop payment’’ (also known as a
‘‘check stop’’) on a Treasury check to
cancel it, there is a possibility that the
canceled check may still be paid. Fiscal
Service or an agency may put a ‘‘stop
payment’’ on a check payment because
the payee submitted a check claim (i.e.,
claimed that the check was either lost or
stolen), because the certifying agency
realized the payment was incorrect, or
because it was otherwise improper.
When a canceled or ‘‘stopped’’ check is
subsequently paid, this leads to what is
known as a payment over cancellation
(POC). POCs are improper payments,
which can amount to $100 million or
more each year.
Fiscal Service is developing
enhancements to its post payment
processing system that will result in
Treasury check return information being
made available to financial institutions
sooner than is the case today. With
Fiscal Service’s current post payment
processing system, several days often
pass before Fiscal Service can provide
information on Treasury check returns
that the Federal Reserve Banks (FRBs)
transmit to financial institutions
through existing communication
channels. The system enhancements
will enable Fiscal Service to provide
check return information to financial
institutions through these existing
channels within the time periods
prescribed by Regulation CC,
Availability of Funds and Collection of
Checks (12 CFR part 229), for when a
financial institution must make funds
deposited by Treasury check available
for withdrawal.
Under the current regulations at 31
CFR part 240, a financial institution
generally is not liable for a POC if the
institution has taken ‘‘reasonable
efforts’’ to ensure the check is
authentic.1 The final rule amends the
definition of ‘‘reasonable efforts’’ found
at 31 CFR 240.2 to include a
requirement that financial institutions
wait for check return information within
the time periods set out by Regulation
CC to help verify that a Treasury check
is valid 2 and authentic. It is also making
conforming changes to 31 CFR part 240
to require that financial institutions
ensure a Treasury check has not been
canceled before making the funds
associated with that check available for
withdrawal.
In those instances where a financial
institution has taken reasonable efforts
but check return information for a POC
on a properly presented check is not
transmitted to the financial institution
prior the funds availability timeframe
specified in Regulation CC, the financial
institution would not be liable for
releasing the funds associated with the
Treasury check. While Fiscal Service
expects this circumstance to be
uncommon, it understands that
compliance with Regulation CC requires
the release of the funds within certain
timeframes, and thus under the final
rule a financial institution will not be
liable for a POC due to complying with
Regulation CC. (Note, however, that this
does not affect the presentment
guarantees found in 31 CFR 240.4. As is
currently the case, if Fiscal Service
declines a check due to improper
presentment and reverses the
provisional credit, the presenting
financial institution may still be liable
for payment on the check regardless of
Regulation CC’s requirements.)
After enhancements to Treasury’s post
payment processing system have been
implemented and the final rule’s
requirements become effective (no
sooner than 30 days after publication of
the final rule), the system and rule
changes should greatly reduce payment
issues involving Treasury checks and
more closely align the treatment of
canceled Treasury checks with industry
practices for other canceled checks in
the banking system. The changes will
eliminate many POCs, because they will
allow a certifying agency to place a
‘‘true stop’’ on a Treasury check. The
system changes will also help reduce
instances where a Treasury check (or an
item purporting to be a Treasury check)
may be charged back to the financial
institution, because they will allow the
financial institution to verify that the
check is not counterfeit, that the amount
has not been altered, that the check is
not stale-dated, and that the check has
not been previously negotiated. For
these non-POC circumstances, financial
institutions are already liable for
accepting such instruments. While the
final rule does not impact a financial
institution’s liability in these other
circumstances, Fiscal Service’s
enhanced post payment processing
1 ‘‘Authenticity’’ is a presentment guaranty, as
described by 31 CFR 240.4.
2 ‘‘Validity’’ and ‘‘valid check’’ are defined in the
final rule. See section III.B., below.
Gary
Swasey, Director, Post Payment Division
at (215) 816–8230 or gary.swasey@
fiscal.treasury.gov; or Thomas Kearns,
Senior Counsel, at (202) 874–6680 or
thomas.kearns@fiscal.treasury.gov.
FOR FURTHER INFORMATION CONTACT:
SUPPLEMENTARY INFORMATION:
I. Background
PO 00000
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]]>Agencies
[Federal Register Volume 88, Number 210 (Wednesday, November 1, 2023)]
[Rules and Regulations]
[Pages 74879-74884]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-24095]
========================================================================
Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
========================================================================
Federal Register / Vol. 88, No. 210 / Wednesday, November 1, 2023 /
Rules and Regulations
[[Page 74879]]
DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
18 CFR Part 40
[Docket No. RM19-17-001; Order No. 902]
Electric Reliability Organization Proposal To Retire Requirements
in Reliability Standards Under the NERC Standards Efficiency Review
AGENCY: Federal Energy Regulatory Commission, Department of Energy.
ACTION: Final action.
-----------------------------------------------------------------------
SUMMARY: The Federal Energy Regulatory Commission (Commission) approves
the retirement of six Reliability Standards and their requirements
proposed by the North American Electric Reliability Corporation, the
Commission-certified Electric Reliability Organization.
DATES: This action is effective February 1, 2024.
FOR FURTHER INFORMATION CONTACT:
Michael Gandolfo (Technical Information), Office of Electric
Reliability, Federal Energy Regulatory Commission, 888 First Street NE,
Washington, DC 20426, Telephone: (202) 502-6817
Mark Bennett (Legal Information), Office of the General Counsel,
Federal Energy Regulatory Commission, 888 First Street NE, Washington,
DC 20426, Telephone: (202) 502-8524
SUPPLEMENTARY INFORMATION: 1. Pursuant to section 215(d)(2) of the
Federal Power Act (FPA),\1\ the Commission approves the North American
Electric Reliability Corporation's (NERC) request to retire six
Reliability Standards with a combined total of 56 requirements. For the
reasons discussed below, we determine that the retirement of six
Reliability Standards (the MOD A Reliability Standards) \2\ in their
entirety is just, reasonable, not unduly discriminatory or
preferential, and in the public interest.
---------------------------------------------------------------------------
\1\ 16 U.S.C. 824o(d)(2).
\2\ Reliability Standards MOD-001-1a (Available Transmission
System Capability), MOD-004-1 (Capacity Benefit Margin), MOD-008-1
(Transmission Reliability Margin Calculation Methodology), MOD-028-2
(Area Interchange Methodology), MOD-029-2a (Rated System Path
Methodology), and MOD-030-3 (Flowgate Methodology).
---------------------------------------------------------------------------
I. Background
A. Section 215 of the FPA and the Mandatory Reliability Standards
2. Section 215 of the FPA provides that the Commission may certify
an ERO, the purpose of which is to develop mandatory and enforceable
Reliability Standards, subject to Commission review and approval.\3\
Reliability Standards may be enforced by the ERO, subject to Commission
oversight, or by the Commission independently.\4\ Pursuant to section
215 of the FPA, the Commission established a process to select and
certify an ERO,\5\ and subsequently certified NERC.\6\
---------------------------------------------------------------------------
\3\ 16 U.S.C. 824o(c).
\4\ Id. 824o(e).
\5\ Rules Concerning Certification of the Elec. Reliability Org.
& Procedures for the Establishment, Approval, & Enf't. of Elec.
Reliability Standards, Order No. 672, 114 FERC ] 61,104, order on
reh'g, Order No. 672-A, 114 FERC ] 61,328 (2006).
\6\ N. Am. Elec. Reliability Corp., 116 FERC ] 61,062, order on
reh'g and compliance, 117 FERC ] 61,126 (2006), aff'd sub nom.
Alcoa, Inc. v. FERC, 564 F.3d 1342 (D.C. Cir. 2009).
---------------------------------------------------------------------------
B. NERC Petition
3. On June 7, 2019, NERC submitted a petition proposing, among
other things, the retirement of the MOD A Reliability Standards, in
their entirety without replacement (NERC Petition). NERC explained that
these requirements are administrative in nature or relate expressly to
commercial or business practices and provide little or no reliability
benefit.\7\ NERC explained that the MOD A Reliability Standards were
submitted in response to Commission's directives in Order No. 890 and
Order No. 693 to develop Reliability Standards ``to provide for
consistency and transparency in the methodologies used by transmission
providers to calculate [Available Transfer Capability].'' \8\ NERC
clarified that ``[Available Transfer Capability] and [Available
Flowgate Methodology], as well as e-Tags, are commercially-focused
elements facilitating interchange and balancing of interchange,'' and
that system operators maintain reliability by monitoring Real-time
flows based on System Operating Limits and Interconnection Reliability
Operating Limits.\9\
---------------------------------------------------------------------------
\7\ Id. at 21-22.
\8\ NERC Petition at 18 (citing 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 FR 12540 (Mar. 25, 2009), 126 FERC ] 61,228 (2009); Mandatory
Reliability Standards for the Bulk-Power Sys., Order No. 693, 72 FR
16416 (Apr. 4, 2007), 118 FERC ] 61,218, at PP 1020-1126 order on
reh'g, Order No. 693-A, 120 FERC ] 61,053 (2007)). In 2009, the
Commission approved the six MOD Reliability Standards containing
methodologies for calculating Available Transfer Capability (ATC) or
Available Flowgate Capacity (AFC). See, 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 (2009), order on reh'g, Order
No. 729-A,75 FR 26057 (May 11, 131 FERC ] 61,109 (2010).
\9\ NERC Petition at 21.
---------------------------------------------------------------------------
C. Notice of Proposed Rulemaking
4. On January 23, 2020, the Commission issued a NOPR proposing to
approve the retirement of 74 of the 77 Reliability Standard
requirements requested by NERC.\10\ In the NOPR, the Commission
proposed, inter alia, to approve the retirement of the MOD A
Reliability Standards, but noted that, if approved, the Commission
intended to coordinate the effective dates for the retirement of the
MOD A Reliability Standards with successor North American Energy
Standards Board (NAESB) business practice standards.\11\ The Commission
explained that equivalent NAESB business practice standards are
expected to replace the MOD A Reliability Standards proposed for
retirement.\12\
---------------------------------------------------------------------------
\10\ Elec. Reliability Org. Proposal to Retire Requirements in
Reliability Standards Under the NERC Standards Efficiency Rev.,
Notice of Proposed Rulemaking, 170 FERC ] 61,032 (Jan. 23, 2020)
(NOPR).
\11\ Id. P 21 n.35.
\12\ Id.
---------------------------------------------------------------------------
5. The Commission noted that NERC's proposed retirements ``are
largely consistent with the Commission-approved bases for retiring
Reliability Standard requirements articulated in
[[Page 74880]]
prior proceedings.'' \13\ In proposing to approve NERC's request, the
Commission stated that NERC ``provided an adequate basis to conclude
that the requirements proposed for retirement: (1) provide little or no
reliability benefit; (2) are administrative in nature or relate
expressly to commercial or business practices; or (3) are redundant
with other Reliability Standards.'' \14\ Further, the Commission
acknowledged NERC's assertion that retiring the MOD A Reliability
Standards is justified because, being primarily administrative or
related to commercial or business practices, they ``no longer serve a
reliability purpose.'' \15\ Specifically, the Commission noted NERC's
assertion that the MOD A Reliability Standards contain ``commercially-
focused elements facilitating interchange and balancing of
interchange,'' and system operators maintain reliability by monitoring
Real-time flows based on System Operating Limits and Interconnection
Reliability Operating Limits.\16\
---------------------------------------------------------------------------
\13\ Id. P 1 (citing N. Am. Elec. Reliability Corp., 138 FERC ]
61,193, at P 81 (March 2012 Order), order on reh'g and
clarification, 139 FERC ] 61,168 (2012); Elec. Reliability Org.
Proposal to Retire Requirements in Reliability Standards, Order No.
788, 78 FR 73424 (Dec. 6, 2013), 145 FERC ] 61,147, at P 1 (2013)).
\14\ Id. P 25.
\15\ Id. P 21.
\16\ See id. P 22 (citing NERC Petition at 21).
---------------------------------------------------------------------------
D. NOPR Comments
6. The Commission received five sets of comments--two of which were
specific to the proposed retirement of the MOD A Reliability
Standards.\17\ Neither of the two comments the Commission received in
response to NERC's proposed retirement of the MOD A Reliability
Standards opposed NERC's proposal. In its comments, Bonneville states
that it appreciates the Commission's recognition of the relationship
between the MOD A retirements and the publication of Business Practice
Standards by NAESB to replace the commercial aspects of the MOD
requirements.\18\ Further, Bonneville believes ``it will be important
to continue the efforts to avoid commercial requirements in the NERC
Reliability Standards and, likewise, avoid reliability requirements in
NAESB Business Practice Standards.'' \19\ Similarly, WAPA expressed its
support for the direction of the industry and the work performed by the
Standards Efficiency Review project. More specifically, WAPA agreed
with NERC's assertion that Available Transfer Capability/Available
Flowgate Capability, along with e-Tags, ``are commercially-focused
elements facilitating interchange and balancing of interchange.'' \20\
WAPA also asked the Commission to ensure that ``appropriate measures
are in place to ensure stakeholder[s] can provide input into the
development of the new business practices.'' \21\
---------------------------------------------------------------------------
\17\ These two comments were received from the Bonneville Power
Administration (Bonneville) and the Western Area Power
Administration (WAPA).
\18\ Bonneville Comments at 3.
\19\ Id.
\20\ WAPA Comments at 3.
\21\ Id. at 5.
---------------------------------------------------------------------------
E. Order No. 873 and the Prior Retirements of Other Reliability
Standard Requirements
7. On September 17, 2020, the Commission issued Order No. 873,\22\
approving the retirement of 18 Reliability Standard requirements,\23\
remanding two requirements for further consideration by NERC, and
taking no action on the proposed retirement of the MOD A Reliability
Standards.\24\ In Order No. 873, the Commission confirmed the approach
proposed in the NOPR and provided developments since then, noting that
on March 30, 2020, NAESB submitted Version 003.3 of the Standards for
Business Practices and Communication Protocols for Public Utilities,
including the Modeling business practices intended to replace the MOD A
Reliability Standards upon their retirement, for which the Commission
had issued a NOPR.\25\ The Commission concluded that ``[i]n light of
these developments, this final action does not address the retirement
of MOD A Reliability Standards. The Commission will determine the
appropriate action regarding the proposed retirement of the MOD A
Reliability Standards at a later time.'' \26\
---------------------------------------------------------------------------
\22\ Elec. Reliability Org. Proposal to Retire Requirements in
Reliability Standards Under the NERC Standards Efficiency Rev.,
Order No. 873, 172 FERC ] 61,225 (2020).
\23\ NERC withdrew the originally requested retirement of
Reliability Standard VAR-001-6, Requirement R2 on May 14, 2020.
\24\ Id. P 4.
\25\ Id. (citing Standards for Bus. Pracs. & Commc'n Protocols
for Pub. Utils., Notice of Proposed Rulemaking, 172 FERC ] 61,047
(2020)).
\26\ Id.
---------------------------------------------------------------------------
F. NAESB Standards for Business Practices and Communications Protocols
for Public Utilities
8. In Order No. 676-J, the Commission revised its regulations to
incorporate by reference, as mandatory enforceable requirements, the
current version of NAESB's Standards for Business Practices and
Communication Protocols for Public Utilities adopted by the Wholesale
Electric Quadrant (WEQ) of NAESB, Version 003.3 of the NAESB WEQ
Business Practice Standards (WEQ Version 003.3 Standards).\27\ Among
other things, the WEQ Version 003.3 Standards address the technical
issues affecting Available Transfer Capability and Available Flowgate
Capability calculation for wholesale transmission services, with the
addition of certain revisions and corrections. The Commission also
revised its regulations to provide that transmission providers must
avoid unduly discriminatory and preferential treatment in the
calculation of Available Transfer Capability.\28\
---------------------------------------------------------------------------
\27\ Standards for Bus. Pracs. & Commc'n Protocols for Pub.
Utils., Order No. 676-J, 86 FR 29491 (June 2, 2021), 175 FERC ]
61,139 (2021).
\28\ Id. P 33.
---------------------------------------------------------------------------
9. The first compliance filing concerned the cybersecurity and
Parallel Flow Visualization standards included in Version 003.3. The
Commission directed utilities to make the second compliance filing
reflecting the remainder of the revisions in Version 003.3 12 months
after implementation of the WEQ Version 003.2 Standards, or no earlier
than October 27, 2022, with an implementation date no earlier than
three months following compliance filings submission (no earlier than
January 27, 2023), resulting in a 15-month implementation period.\29\
---------------------------------------------------------------------------
\29\ Id. PP 48, 50. The Commission noted that the implementation
of the NAESB Available Transfer Capability -related standards
contained in WEQ-023 will be coordinated with the retirement of the
NERC MOD A Reliability Standards. Id. P 43 n.53.
---------------------------------------------------------------------------
II. Commission Determination
10. Pursuant to section 215(d)(2) of the FPA,\30\ the Commission
approves the proposed retirement of the MOD A Reliability Standards, to
be coordinated with the effective date of the tariff records accepted
in the orders on the second set of Order No. 676-J compliance filings,
February 1, 2024.\31\ As explained herein, we are satisfied with NERC's
justification for these retirements. In particular, we note NERC's
explanation that the MOD A Reliability Standards are no longer
necessary because Available Transfer Capability, Available Flowgate
Capability, and e-Tags fundamentally pertain to commercial and business
operations, and that system operators
[[Page 74881]]
maintain reliability by monitoring Real-time flows based on System
Operating Limits and Interconnection Reliability Operating Limits. We
are further persuaded that retiring the MOD A Reliability Standards
will not result in a reliability gap.
---------------------------------------------------------------------------
\30\ 16 U.S.C. 824o(d)(2).
\31\ See ISO-New England, 185 FERC ] 61,070 (2023); N.Y. Indep.
Sys. Operator, Inc., 185 FERC ] 61,067 (2023); PJM Interconnection,
L.L.C., 185 FERC ] 61,068 (2023); Ala. Power Co., 185 FERC ] 61,073;
Versant Power, 185 FERC ] 61,065 (2023); Cal. Indep. Sys. Operator
Corp., 185 FERC ] 61,072 (2023); MATL LLP, 185 FERC ] 61,074 (2023);
Golden Spread Elec. Coop., Inc., 185 FERC ] 61,071 (2023).
---------------------------------------------------------------------------
11. Regarding WAPA's comments focused on the importance of ensuring
stakeholders' ability to provide input.\32\ Order No. 676-J explained
that NAESB has procedures to ensure that interested persons have input
into NAESB's standard development regardless of the interested persons'
NAESB membership and that ``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.'' \33\ Therefore,
we believe WAPA's concerns were fully addressed.
---------------------------------------------------------------------------
\32\ WAPA Comments at 5.
\33\ See Order No. 676-J, 175 FERC ] 61,139 at P 5.
---------------------------------------------------------------------------
III. Information Collection Statement
12. The information collection requirements contained in this final
action are subject to review by the Office of Management and Budget
(OMB) under section 3507(d) of the Paperwork Reduction Act of 1995.\34\
OMB's regulations require approval of certain information collection
requirements imposed by agency rules.\35\ Upon approval of a collection
of information, OMB will assign an OMB control number and expiration
date. Comments on the collection of information are due within 60 days
of the date this order is published in the Federal Register.
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. The Commission solicits comments on the Commission's need for
this information, whether the information will have practical utility,
the accuracy of the burden estimates, ways to enhance the quality,
utility, and clarity of the information to be collected or retained,
and any suggested methods for minimizing respondents' burden, including
the use of automated information techniques.
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\34\ 44 U.S.C. 3507(d).
\35\ 5 CFR 1320.
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13. These MOD Standards are currently located in the FERC-725A (OMB
Control No. 1902-0244) collection. The collection is currently approved
by OMB and contains Reliability Standards MOD-0001-1a, MOD-004-1, MOD-
008-1, MOD-028-2, MOD-029-2a and MOD-030-3 (the MOD A Reliability
Standards), along with other Reliability Standards. In Docket No. RM19-
17-001, the Commission approves the retirement of these six current
OMB-approved MOD Reliability Standards and their associated
requirements. The retirements will be coordinated with the effective
dates for the successor NAESB business practice standards, which mirror
the retired responsibilities from the MOD-A Reliability Standards.
14. Reliability Standards MOD-001-1a, MOD-004-1, MOD-008-1, MOD-
028-2, MOD-029-2a, and MOD-030-3 are all currently approved within the
FERC-725A information collection. The number of respondents below is
based on an estimate of the NERC compliance registry for transmission
service providers (TSP), transmission operators (TOP), transmission
planners (TP), resource planners (RP), and balancing authorities
(BA).\36\ As these entities still have obligation to other NERC
Reliability Standards when updating the FERC-725A for this collection
the number respondents shall remain the same and only the man-hours
will be reduced.
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\36\ The number of TSP (71), TOP (165), TP (98), RP (159), and
BA (98) are taken based on the NERC Compliance Registry information
as of August 17, 2023, and represent U.S. registered entities.
\37\ The estimated hourly cost (salary plus benefits) is a
combination based on the Bureau of Labor Statistics (BLS), as of
2022, for 75% of the average of an Electrical Engineer (17-2071)
$77.29/hr, 77.29 x .75 = 57.9675 ($57.97-rounded) ($57.97/hour) and
25% of an Information and Record Clerk (43-4199) $39.58/hr x .25% =
9.895 ($9.90 rounded) ($9.90/hour), for a total ($57.97 + $9.90 =
$67.87/hour).
\38\ In 2015 the Commission approved the retirement of the load-
serving entity function. See N. Am. Elec. Reliability Corp., 150
FERC ] 61,213 (2015); N. Am. Elec. Reliability Corp., 153 FERC ]
61,024 (2015). NERC has an ongoing standard drafting team project to
replace this function as an applicable entity in the Reliability
Standards with the distribution provider function. See Project-2022-
02 Modifications to TPL-001 and MOD-032.
\39\ The estimated hourly cost (salary plus benefits) is a
combination based on the Bureau of Labor Statistics (BLS), as of
2022, for 75% of the average of an Electrical Engineer (17-2071)
$77.29/hr, 72.29 x .75 = 57.9576 ($57.96-rounded) ($57.96/hour) and
25% of an Information and Record Clerk (43-4199) $39.58/hr, $39.58 x
.25% = 9.895 ($9.90 rounded) ($9.90/hour), for a total ($57.96+$9.90
= $67.86/hour).
MOD-001-1a--Available Transmission System Capability--Retirement
[Burden reduction]
--------------------------------------------------------------------------------------------------------------------------------------------------------
Annual number
Applicable entity (respondent) Number of of responses Annual number of Average burden hours and Total annual burden hours and cost
respondents per respondent responses cost per response reduction (rounded)
(1) (2) (1) * (2) = (3) (4) \37\.................... (3) * (4) = (5)
--------------------------------------------------------------------------------------------------------------------------------------------------------
FERC-725A, OMB Control No. 1902-0244
--------------------------------------------------------------------------------------------------------------------------------------------------------
TSP--Retired.................... 71 1 71 120 hrs.; $8,144.40......... 8,520 hrs.; $578,252.4.
TOP--Retired.................... 165 1 165 120 hrs.; $8,144.40......... 19,800 hrs.; $1,343,826.
-----------------------------------------------------------------------------------------------------------------------
FERC-725A for MOD-001-1a .............. .............. ................. ............................ 28,320 hrs.; $1,922,078.40.
Total Retired.
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MOD-004-1--Capacity Benefit Margin--Retirement
[Burden reduction] \38\
--------------------------------------------------------------------------------------------------------------------------------------------------------
Annual number
Applicable entity (respondent) Number of of responses Annual number of Average burden hours and Total annual burden hours and cost
respondents per respondent responses cost per response reduction (rounded)
(1) (2) (1) * (2) = (3) (4) \39\.................... (3) * (4) = (5)
--------------------------------------------------------------------------------------------------------------------------------------------------------
RP--Retired..................... 159 1 159 60 hrs.; $4,072.20.......... 9,540 hrs.; $647,479.80.
TSP--Retired.................... 71 1 71 60 hrs.; $4,072.20.......... 4,260 hrs.; $289,126.20.
BA--Retired..................... 98 1 98 60 hrs.; $4,072.20.......... 5,880 hrs.; $399,075.60.
[[Page 74882]]
TP--Retired..................... 203 1 203 60 hrs.; $4,072.20.......... 12,180 hrs.; $826,656.60.
-----------------------------------------------------------------------------------------------------------------------
FERC-725A for MOD-004-1 .............. .............. ................. ............................ 31,860 hrs.; $2,162,338.20.
Total Retired.
--------------------------------------------------------------------------------------------------------------------------------------------------------
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\40\ Id.
MOD-008-1--Transmission Reliability Margin Calculation Methodology--Retirement
[Burden reduction]
--------------------------------------------------------------------------------------------------------------------------------------------------------
Annual number
Applicable entity (respondent) Number of of responses Annual number of Average burden hours and Total annual burden hours and cost
respondents per respondent responses cost per response reduction (rounded)
(1) (2) (1) * (2) = (3) (4) \40\.................... (3) * (4) = (5)
--------------------------------------------------------------------------------------------------------------------------------------------------------
FERC-725A, OMB Control No. 1902-0244
--------------------------------------------------------------------------------------------------------------------------------------------------------
TOP--Retired.................... 165 1 165 60 hrs.; $4,072.20.......... 9,900 hrs.; $671,913.
-----------------------------------------------------------------------------------------------------------------------
FERC-725A for MOD-008-1 .............. .............. ................. ............................ 9,900 hrs.; $671,913.
Total Retired.
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\41\ Id.
MOD-028-2--Area Interchange Methodology Proposed for Retirement
[Burden reduction]
--------------------------------------------------------------------------------------------------------------------------------------------------------
Annual number
Applicable entity (respondent) Number of of responses Annual number of Average burden hours and Total annual burden hours and cost
respondents per respondent responses cost per response reduction (rounded)
(1) (2) (1) * (2) = (3) (4) \41\.................... (3) * (4) = (5)
--------------------------------------------------------------------------------------------------------------------------------------------------------
FERC-725A, OMB Control No. 1902-0244
--------------------------------------------------------------------------------------------------------------------------------------------------------
TOP--Retired.................... 165 1 165 60 hrs.; $4,072.20.......... 9,900 hrs.; $671,913.
TSP--Retired.................... 71 1 71 60 hrs.; $4,072.20.......... 4,260 hrs.; $289,126.20.
-----------------------------------------------------------------------------------------------------------------------
FERC-725A for MOD-028-2 .............. .............. ................. ............................ 14,160 hrs.; $961,039.20.
Total Retired.
--------------------------------------------------------------------------------------------------------------------------------------------------------
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\42\ Id.
MOD-029-2a--Flowgate Methodology--Retirement
[Burden reduction]
--------------------------------------------------------------------------------------------------------------------------------------------------------
Annual number
Applicable entity (respondent) Number of of responses Annual number of Average burden hours and Total annual burden hours and cost
respondents per respondent response cost per responses reduction (rounded)
(1) (2) (1) * (2) = (3) (4) \42\.................... (3) * (4) = (5)
--------------------------------------------------------------------------------------------------------------------------------------------------------
FERC-725A, OMB Control No. 1902-0244
--------------------------------------------------------------------------------------------------------------------------------------------------------
TOP--Retired.................... 165 1 165 60 hrs.; $4,072.20.......... 9,900 hrs.; $671,913.
TSP--Retired.................... 71 1 71 60 hrs.; $4,072.20.......... 4,260 hrs.; $289,126.20.
-----------------------------------------------------------------------------------------------------------------------
Total for MOD-029-2a for .............. .............. ................. ............................ 14,160 hrs.; $961,039.20.
Retired.
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[[Page 74883]]
MOD-030-2--Flowgate Methodology--Retirement
[Burden reduction]
--------------------------------------------------------------------------------------------------------------------------------------------------------
Annual number
Applicable entity (respondent) Number of of responses Annual number of Average burden hours and Total annual burden hours and cost
respondents per respondent responses cost per response \43\ reduction (rounded)
(1) (2) (1) * (2) = (3) (4)......................... (3) * (4) = (5)
--------------------------------------------------------------------------------------------------------------------------------------------------------
FERC-725A, OMB Control No. 1902-0244
--------------------------------------------------------------------------------------------------------------------------------------------------------
TOP--Retired.................... 165 1 165 60 hrs.; $4,072.20.......... 9,900 hrs.; $671,913.
TSP--Retired.................... 71 1 71 60 hrs.; $4,072.20.......... 4,260 hrs.; $289,126.20.
-----------------------------------------------------------------------------------------------------------------------
Total for MOD-030-2 for .............. .............. ................. ............................ 14,160 hrs.; $961,039.20.
Retired.
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Title: FERC-725A, Mandatory Reliability Standards for the Bulk-
Power System.
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\43\ Id.
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Action: Modifications to Existing Collections of Information in
FERC-725A.
OMB Control No: 1902-0244 (FERC-725A).
Respondents: Business or other for profit, and not for profit
institutions.
Frequency of Responses: On occasion (and proposed for deletion).
Necessity of the Information: Reliability Standards MOD-001-1a
(Available Transmission System Capability), MOD-004-1 (Capacity Benefit
Margin), MOD-008-1 (Transmission Reliability Margin Calculation
Methodology), MOD-028-2 (Area Interchange Methodology), MOD-029-2a
(Rated System Path Methodology), and MOD030-3 (Flowgate Methodology)
(the MOD A Reliability Standards) were part of the implementation of
the Congressional mandate of the Energy Policy Act of 2005 to develop
mandatory and enforceable Reliability Standards to better ensure the
reliability of the nation's Bulk-Power system. As these Reliability
Standards are retired, their purpose and requirements have been moved
into the NAESB business practice standards.
Internal review: The Commission has reviewed NERC's proposal and
determined that this action is necessary to implement section 215 of
the FPA.
15. 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, fax: (202) 273-0873].
16. Comments concerning the information collections and
requirements approved for retirement in this final action and the
associated burden estimates, should be sent to the Commission in this
docket and may also be sent to the Office of Management and Budget,
Office of Information and Regulatory Affairs [Attention: Desk Officer
for the Federal Energy Regulatory Commission]. For security reasons,
comments should be sent by email to OMB at the following email address:
[email protected].
IV. Environmental Analysis
17. 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.\44\ The
Commission has categorically excluded certain actions from this
requirement as not having a significant effect on the human
environment. Included in the exclusion are rules that are clarifying,
corrective, or procedural or that do not substantially change the
effect of the regulations being amended.\45\ The actions approved here
fall within this categorical exclusion in the Commission's regulations.
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\44\ Reguls. Implementing the Nat'l Env't Policy Act, Order No.
486, FERC Stats. & Regs. Preambles 1986-1990 ] 30,783 (1987) (cross-
referenced at 41 FERC ] 61,284).
\45\ 18 CFR 380.4(a)(2)(ii).
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V. Regulatory Flexibility Act
18. The Regulatory Flexibility Act of 1980 (RFA) \46\ generally
requires a description and analysis of final rules that will have
significant economic impact on a substantial number of small entities.
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\46\ 5 U.S.C. 601-612.
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19. The RFA mandates consideration of regulatory alternatives that
accomplish the stated objectives of a rule and that minimize any
significant economic impact on a substantial number of small entities.
The Small Business Administration's Office of Size Standards develops
the numerical definition of a small business.\47\ The Small Business
Administration has established size standards, for the types of
affected entities that range from a maximum of 250-1,000 employees for
an entity and its affiliates to be considered small.
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\47\ 13 CFR 121.101.
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20. This final action accepts the request of NERC, the Commission-
certified ERO, to retire the MOD A Reliability Standards and recognizes
that NAESB business practice standards will cover the obligations. This
final action reduces paperwork burdens for both large and small
business entities. The Commission estimates the total industry
reduction in burden for all entities (large and small) to be 112,560
hours or 68.5 hours per response.
21. Based on the information above, the Commission certifies that
the proposed reductions will not have a significant impact on a
substantial number of small entities. Accordingly, no initial
regulatory flexibility analysis is required. The Commission certifies
that this final action will not have a significant economic impact on a
substantial number of small entities.
VI. Document Availability
22. In addition to publishing the full text of this document in the
Federal Register, the Commission provides all interested persons an
opportunity to view and/or print the contents of this document via the
internet through the Commission's Home Page (https://www.ferc.gov).
23. 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.
24. 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
[[Page 74884]]
Public Reference Room at [email protected].
VII. Effective Date and Congressional Notification
25. These regulations are effective February 1, 2024. 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.
By the Commission.
Issued October 26, 2023.
Debbie-Anne A. Reese,
Deputy Secretary.
[FR Doc. 2023-24095 Filed 10-31-23; 8:45 am]
BILLING CODE 6717-01-P
