North American Electric Reliability Corporation; Order Approving Extreme Cold Weather Reliability Standards EOP-011-4 and TOP-002-5, 13324-13330 [2024-03608]
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Federal Register / Vol. 89, No. 36 / Thursday, February 22, 2024 / Notices
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Technical Conference
Dated: February 15, 2024.
On Friday, March 22, 2024, from 10
Debbie-Anne A. Reese,
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will hold a technical conference. The
[FR Doc. 2024–03611 Filed 2–21–24; 8:45 am]
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DEPARTMENT OF ENERGY
Federal Energy Regulatory
Commission
[Docket No. RD24–1–000]
North American Electric Reliability
Corporation; Order Approving Extreme
Cold Weather Reliability Standards
EOP–011–4 and TOP–002–5
1. On October 30, 2023, the North
American Electric Reliability
Corporation (NERC), the Commissioncertified Electric Reliability
Organization (ERO), submitted a
petition seeking approval of proposed
Reliability Standards EOP–011–4
(Emergency Operations) and TOP–002–
5 (Operations Planning). As discussed
in this order, we approve proposed
Reliability Standards EOP–011–4 and
TOP–002–5 and their associated
violation risk factors and violation
severity levels.
2. It is essential to the reliable
operation of the Bulk-Power System to
protect critical natural gas infrastructure
loads that serve gas-fired generation.1
As the November 2021 Report found,
natural gas fuel issues were the second
largest cause of generation outages
during Winter Storm Uri.2 Proposed
Reliability Standards EOP–011–4 and
TOP–002–5 address the concerns raised
by the November 2021 Report.3
Accordingly, we approve proposed
Reliability Standards EOP–011–4 and
TOP–002–5 as just, reasonable, not
unduly discriminatory or preferential,
and in the public interest.
I. Background
A. Section 215 and Mandatory
Reliability Standards
3. 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.4 Reliability
Standards may be enforced by the ERO,
subject to Commission oversight, or by
the Commission independently.5
Pursuant to section 215 of the FPA, the
1 See FERC, NERC, and Regional Entity Staff, The
February 2021 Cold Weather Outages in Texas and
the South Central United States, 19 (Nov. 16, 2021)
(November 2021 Report), https://www.ferc.gov/
media/february-2021-cold-weather-outages-texasand-south-central-united-states-ferc-nerc-and; see
also id. at 19 n.30 (‘‘‘Natural gas infrastructure’
refers to natural gas production, gathering,
processing, intrastate and interstate pipelines,
storage and other infrastructure used to move
natural gas from wellhead to burner tip.’’).
2 Id. at 18.
3 See id. at 6, 24, 41–43.
4 16 U.S.C. 824o(c).
5 Id. 824o(e).
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Commission established a process to
select and certify an ERO,6 and
subsequently certified NERC.7
B. The February 2021 Cold Weather
Reliability Event
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4. On February 16, 2021, the
Commission, NERC, and Regional Entity
staff initiated a joint inquiry into the
circumstances surrounding a February
2021 cold weather reliability event that
affected Texas and the South Central
United States that culminated in a
report identifying, among other things,
recommendations for Reliability
Standard improvements.8 The
November 2021 Report found that the
February 2021 cold weather reliability
event was the largest controlled firm
load shed event in U.S. history; over 4.5
million people lost power and at least
210 people lost their lives.9 The
November 2021 Report provided an
assessment of the event as well as
recommendations including, inter alia,
Reliability Standard enhancements to
improve extreme cold weather
operations, preparedness, and
coordination.10
5. After the February 2021 cold
weather reliability event and before the
November 2021 Report was issued,
NERC filed a petition for approval of
cold weather Reliability Standards
addressing recommendations from a
2018 cold weather event report.11 In
August 2021, the Commission approved
NERC’s modifications to Reliability
Standards EOP–011–2 (Emergency
Preparedness and Operations), IRO–
010–4 (Reliability Coordinator Data
Specification and Collection), and TOP–
003–5 (Operational Reliability Data).12
Reliability Standards IRO–010–4 and
TOP–003–5 require that reliability
coordinators, transmission operators,
and balancing authorities develop,
maintain, and share generator cold
6 Rules Concerning Certification of the Elec.
Reliability Org.; and Procs for the Establishment,
Approval, & Enforcement of Elec. Reliability
Standards, Order No. 672, 114 FERC ¶ 61,104, order
on reh’g, Order No. 672–A, 114 FERC ¶ 61,328
(2006).
7 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).
8 See November 2021 Report at 9.
9 Id.
10 Id. at 184–212 (Key recommendations 1a
through 1j).
11 FERC and NERC Staff, The South Central
United States Cold Weather Bulk Electric System
Event of January 17, 2018, 89 (July 2019), https://
www.ferc.gov/sites/default/files/2020-05/07-18-19ferc-nerc-report_0.pdf.
12 See generally N. Am. Elec. Reliability Corp.,
176 FERC ¶ 61,119 (2021) (noting that the
Reliability Standards become enforceable on April
1, 2023).
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weather data.13 Reliability Standard
EOP–011–2 requires generator owners to
have generating unit cold weather
preparedness plans and generator
owners and generator operators to
provide training for implementing the
cold weather preparedness plans.14
6. On October 28, 2022, NERC filed a
petition seeking approval, on an
expedited basis, of Reliability Standards
EOP–011–3 (Emergency Operations) and
EOP–012–1 (Extreme Cold Weather
Preparedness and Operations), the
Reliability Standards’ associated
violation risk factors and violation
severity levels, three newly-defined
terms (Extreme Cold Weather
Temperature, Generator Cold Weather
Critical Component, and Generator Cold
Weather Reliability Event), NERC’s
proposed implementation plan, and the
retirement of Reliability Standard EOP–
011–2.15 On February 16, 2023, the
Commission approved Reliability
Standards EOP–011–3 and EOP–012–1,
and also directed NERC to develop and
submit modifications to Reliability
Standard EOP–012–1 and to submit a
plan on how NERC will collect and
assess data surrounding the
implementation of Reliability Standard
EOP–012–1.16
C. NERC’s Petition and Proposed
Reliability Standards EOP–011–4 and
TOP–002–5
7. On October 30, 2023, NERC filed a
petition seeking approval on an
expedited basis of proposed Reliability
Standards EOP–011–4 and TOP–002–
5,17 the Reliability Standards’ associated
violation risk factors and violation
severity levels, NERC’s proposed
implementation plan, and the
retirement of currently approved EOP–
011–3 and TOP–002–4.18 NERC
explains that proposed Reliability
Standards EOP–011–4 and TOP–002–5
build on the 2021 and 2023-approved
cold weather Reliability Standards,
further reducing the risks posed by
extreme cold weather to the reliability
13 Id.
14 Id.
15 NERC, Petition, Docket No. RD23–1–000, at 1–
2 (filed Oct. 28, 2022).
16 See N. Am. Elec. Reliability Corp., 182 FERC
¶ 61,094, at PP 3–11 (February 2023 Order), order
on reh’g, 183 FERC ¶ 61,222 (2023).
17 The proposed Reliability Standards are not
attached to this order. The proposed Reliability
Standards are available on the Commission’s
eLibrary document retrieval system in Docket No.
RD24–1–000 and on the NERC website, https://
www.nerc.com.
18 NERC Petition at 1–2, 48, 54 (stating that, in the
alternative, should Reliability Standard EOP–011–
2 be in effect at the time of proposed Reliability
Standard EOP–011–4’s approval, then NERC seeks
retirement of EOP–011–2).
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of the Bulk-Power System.19 NERC
maintains that proposed Reliability
Standards EOP–011–4 and TOP–002–5
are consistent with key
recommendations from the November
2021 Report.20
8. NERC explains that it adopted a
two-phase standard development
project to develop, draft, and revise the
extreme cold weather Reliability
Standards in accordance with the
November 2021 Report due to the
extensive scope and demonstrated
urgency of new and improved cold
weather Reliability Standards. NERC
states that its October 30, 2023, petition
represents the portions of its phase two
standard development project
pertaining to Key Recommendations 1g,
1h, and 1i.21
9. NERC states that proposed
Reliability Standard EOP–011–4
advances reliability by requiring
transmission operators to consider the
impacts of load shedding during
emergency conditions on the natural gas
infrastructure that fuels a significant
portion of bulk electric system
generation.22 NERC explains that the
purpose of proposed Reliability
Standard EOP–011–4 is unchanged from
EOP–011–3, and is to ensure that each
transmission operator and balancing
authority implements plans to mitigate
operating emergencies and that such
plans are coordinated within the
reliability coordinator area. According
to NERC, proposed Reliability Standard
EOP–011–4 addresses Key
Recommendation 1h and 1i from the
November 2021 Report.23
10. NERC proposes to modify the
approved, but not yet effective,
Reliability Standard EOP–011–3 in
multiple ways.24 First, NERC proposes
to add distribution providers,
Underfrequency Load Shed (UFLS)-only
distribution providers, and transmission
owners to the list of applicable entities
that must comply with the Reliability
Standard EOP–011–4.25 Second, under
proposed Reliability Standard EOP–
011–4, each transmission operator will
be required to include operating plan
19 Id.
at 1–2.
at 6; see also November 2021 Report at 190–
91, 208–09 (Key Recommendations 1g, 1h, and 1i).
21 NERC Petition at 21–22, 51.
22 Id. at 26–27.
23 See id. at 27 (citing the November 2021 Report
at 208–09).
24 Reliability Standard EOP–011–3, Requirements
R3, R4, and R5 are unchanged from the approved
version. See N. Am. Elec. Reliability Corp., 176
FERC ¶ 61,119 (approving Reliability Standard
EOP–011–2).
25 The applicability section of Reliability
Standard EOP–011–3 identifies only balancing
authorities, reliability coordinators, and
transmission operators as the applicable entities.
20 Id.
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provisions that identify and prioritize
designated critical natural gas
infrastructure loads that are ‘‘essential
to the reliability of the bulk electric
system.’’ 26 Third, balancing authorities
must develop, maintain, and implement
one or more reliability coordinatorreviewed operating plans with
provisions for excluding critical natural
gas infrastructure loads that are
essential to the reliability of the bulk
electric system as interruptible load,
curtailable load, and demand response
during extreme cold weather periods
within each balancing authority area.27
11. Proposed Reliability Standard
EOP–011–4 Requirement R1 would also
require that transmission operators
implement operator-controlled manual
load shed, Undervoltage Load Shed
(UVLS), or UFLS in operating plans.28
Proposed Requirement R7 requires
transmission operators to annually
identify and notify distribution
providers, UFLS-only distribution
providers, and transmission owners that
that they are required to assist with the
mitigation of operating emergencies in
its transmission operator area.29 Finally,
proposed Requirement R8 states that
each distribution provider, UFLS-only
distribution provider, and transmission
owner notified by a transmission
operator per proposed Requirement R7
to assist with the mitigation of operating
emergencies must develop, maintain,
and implement a load shedding plan.30
12. NERC also requests approval of
proposed Reliability Standard TOP–
002–5 to provide greater specificity
regarding the balancing authority’s
responsibilities in extreme cold
weather. According to NERC, this
proposed Reliability Standard would
address parts of Key Recommendation
1g of the November 2021 Report.31
13. According to NERC, proposed
Reliability Standard TOP–002–5 is
unchanged from the prior version
except for the addition of one new
requirement, Requirement R8.32
Proposed Requirement R8 would
26 NERC
Petition at 30–31; see also id. Ex. C–1 at
5.
27 Id.
at 39.
28 Id.
29 Id.
at 35.
at 35–36.
31 See id. at 41–42 (citing the November 2021
Report at 190–91, which states that key
recommendation 1g proposes enhancements to
Reliability Standard TOP–003 to provide greater
specificity about the relative roles of the generator
owner, generator operator, and balancing authority
in determining the generating unit capacity that can
be relied upon during ‘‘local forecasted cold
weather’’).
32 Proposed Reliability Standard TOP–002–5,
Requirements R1, R2, R3, R4, R5, R6, and R7 are
unchanged from the mandatory and enforceable
version, Reliability Standard TOP–002–4.
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require each balancing authority to have
an operating process 33 for extreme cold
weather that includes: (1) a
methodology for identifying ‘‘extreme
cold weather conditions’’ in the area; (2)
a methodology for determining an
appropriate extreme cold weather
reserve margin for the area, considering
the types of operating limitations that
have been known to limit resource
availability in cold weather; and (3) a
methodology for determining a five-day
hourly forecast that accounts for all
relevant operational considerations,
including resource availability, demand,
reserve requirements, and forecasted
weather.34
14. NERC requests that the
Commission approve the proposed
violation risk factors and violation
severity levels for proposed Reliability
Standards EOP–011–4 and TOP–002–5.
Further, NERC proposes an effective
date for proposed Reliability Standard
EOP–011–4 beginning on the first day of
the first calendar quarter that is six
months following regulatory approval.35
Once identified and notified to assist by
their transmission operators pursuant to
proposed Requirement R7, the newly
applicable entities (distribution
providers, UFLS-only distribution
providers, and transmission owners)
will have 30 months to develop a load
shedding plan pursuant to proposed
Requirement R8. Transmission
operators and balancing authorities
would also have 30 months from the
effective date of proposed Reliability
Standard EOP–011–4 to comply with
the revised provisions specific to UFLS,
UVLS, and critical gas infrastructure
loads.36 NERC also requests that the
Commission approve the retirement of
Reliability Standard EOP–011–3
immediately prior to the effective date
of Reliability Standard EOP–011–4; or,
of Reliability Standard EOP–011–2 if it
is the version of EOP–011 in effect at the
time that proposed Reliability Standard
EOP–011–4 becomes effective. NERC
explains that this proposed
implementation plan is necessary given
the large amount of interaction that will
be required between the applicable
entities and natural gas entities to
identify critical natural gas
infrastructure loads and account for
them as required in manual shedding
and underfrequency and undervoltage
load shedding schemes.37
15. NERC proposes an effective date
for proposed Reliability Standard TOP–
002–5 beginning on the first day of the
first calendar quarter that is 18 months
following regulatory approval. NERC
requests that the Commission approve
the retirement of Reliability Standard
TOP–002–4 immediately prior to the
effective date of Reliability Standard
TOP–002–5. NERC states that the
proposed implementation plan reflects
consideration of the time needed to
develop an extreme cold weather
operating process, with the required
methodologies reflecting the minimum
cold weather reliability considerations
identified in proposed Requirement
R8.38
16. Finally, NERC requests that the
Commission approve the proposed
Reliability Standards in an expedited
manner. NERC explains that, among
other things, expedited approval would
provide regulatory certainty to entities
seeking to implement the proposed
Reliability Standards ahead of the
mandatory and enforceable dates.39
33 NERC defines the term ‘‘operating process’’ as
a ‘‘document that identifies general steps for
achieving a generic operating goal. An operating
process includes steps with options that may be
selected depending upon Real-time
conditions. . . .’’ NERC, Glossary of Terms Used in
NERC Reliability Standards, 21 (Dec. 2023), https://
www.nerc.com/pa/Stand/GlossaryofTerms/
Glossary_of_Terms.pdf.
34 NERC Petition at 43–48.
35 See id. at Ex. B at 2–4; see also id. at 49 n.96
(observing that transmission operators will be
required to comply with proposed Reliability
Standard EOP–011–4 Requirement R7 and perform
their first annual identification and notification to
newly applicable entities by the effective date of the
Reliability Standard).
36 Proposed Reliability Standard EOP–011–4
Requirements R1, Part 1.2.5 (transmission operator),
Requirement R2 Part 2.2.8 and Part 2.2.9 (balancing
authority).
III. Determination
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II. Notice of Filing and Responsive
Pleadings
17. Notice of NERC’s October 30,
2023, petition was published in the
Federal Register, 88 FR 76,201 (Nov. 6,
2023), with comments, protests, and
motions to intervene due on or before
November 30, 2023.
18. There were no comments or
protests. Ameren Service Company, as
an agent for Union Electric Company,
filed a motion to intervene.
A. Procedural Matters
19. Pursuant to Rule 214 of the
Commission’s Rules of Practice and
Procedure, 18 CFR 385.214 (2023), the
timely, unopposed motions to intervene
serve to make the entities that filed
them parties to this proceeding.
B. Substantive Matters
20. Pursuant to section 215(d)(2) of
the FPA, we approve proposed
Reliability Standards EOP–011–4 and
37 NERC
Petition at 48–49.
at 50.
39 Id. at 53.
38 Id.
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TOP–002–5 as just, reasonable, not
unduly discriminatory or preferential,
and in the public interest. We also
approve the proposed Reliability
Standards’ associated violation risk
factors and violation severity levels,
proposed Reliability Standard TOP–
002–5 implementation plan, and the
retirement of currently effective
Reliability Standard TOP–002–4. We
agree with NERC that the proposed
modifications to the Reliability
Standards are consistent with and
respond to Key Recommendations 1g,
1h, and 1i from the November 2021
Report.40 Given the importance of these
revised Reliability Standards to
maintaining the reliable operation of the
Bulk-Power System, we strongly
encourage entities that are capable of
complying earlier than the mandatory
and enforceable date to do so.
21. We defer our decision on whether
to approve or modify NERC’s proposed
implementation plan for proposed
Reliability Standard EOP–011–4 (and
the proposed retirement of Reliability
Standard EOP–011–2) until NERC
submits the revised applicability section
for Reliability Standard EOP–012–1.41
As mentioned in the Commission’s
February 2023 Order,42 allowing
Reliability Standard EOP–011–2
requirements to remain mandatory and
enforceable until such time as the
revised applicability is effective for
Reliability Standard EOP–012–1 will
ensure all bulk electric system
generating units are required to
maintain cold weather preparedness
plans and associated trainings.
22. We find that proposed Reliability
Standard EOP–011–4 materially
improves the reliable operation of the
Bulk-Power System, is an improvement
over the 2021 and 2023-approved cold
weather Reliability Standards, and
enhances reliability by requiring
balancing authorities, transmission
operators, and load shedding entities to
account for critical natural gas
infrastructure loads in the demand
response and emergency load shedding
programs they oversee. Doing so will
help ensure that deploying these
programs in extreme cold weather
conditions will not exacerbate natural
gas fuel supply issues, which could
constrain generating unit capacity and
thereby threaten the reliable operation
of the Bulk-Power System. Accordingly,
40 See
November 2021 Report at 190–91, 208–09.
41 NERC states that it will submit a revised EOP–
012 Reliability Standard, specifically, Reliability
Standard EOP–012–2, by the Commission’s
February 2024 deadline. See NERC Petition at 21,
51.
42 See February 2023 Order, 182 FERC ¶ 61,094 at
PP 5, 59.
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we approve Reliability Standard EOP–
011–4 as proposed.
23. Under Reliability Standard EOP–
011–4, Requirement R1, each
transmission operator must include
provisions in its operating plan(s) for
the identification of designated critical
natural gas infrastructure loads that are
essential to the reliability of the bulk
electric system.43 This Reliability
Standard also requires that each
distribution provider, UFLS-only
distribution provider, and transmission
owner include provisions in its load
shedding plan(s) for the identification of
designated critical natural gas
infrastructure loads that are ‘‘essential
to the reliability of the bulk electric
system.’’ 44 While Reliability Standard
EOP–011–4 employs a flexible approach
for the above entities to identify critical
natural gas infrastructure loads, this
Reliability Standard may require
coordination and communication
between electric and natural gas entities
pertaining to extreme cold weather
beyond what has historically
occurred.45 As such, we strongly
encourage the electric and natural gas
entities that play a role in these
Reliability Standards to voluntarily
begin enhancing their coordination and
communication this winter season, prior
to the Reliability Standard’s mandatory
and enforceable effective date.
24. We find that proposed Reliability
Standard TOP–002–5 materially
improves the reliable operation of the
Bulk-Power System, represents an
improvement to the existing Reliability
Standards, and enhances reliability by
requiring that balancing authorities have
comprehensive operating processes for
extreme cold weather periods in their
areas. Proposed Reliability Standard
TOP–002–5 also requires each balancing
authority to notify the entities identified
in these operating plans of their
respective roles and to provide the
operating plans to its reliability
coordinator for visibility. Proposed
Reliability Standard TOP–002–5
recognizes that there have been several
past extreme cold weather events where
load and resource balancing issues have
occurred due to unexpected generator
trips and higher loads than forecasted.
Proposed Requirement R8 formalizes
the balancing authority’s process to
review and respond to oncoming
43 Reliability Standard EOP–011–4, Requirement
R1, Part 1.2.5.5.
44 Id., Requirement R8, Part 8.1.5.
45 See NERC Petition at 32–33 (stating that one
method for identifying such loads may include
distributing criteria to natural gas infrastructure
entities to identify the critical facilities that would
likely affect bulk electric system reliability
adversely if de-energized).
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conditions that may affect generation
availability and capability, to forecast
load, and to determine whether
additional capability or reserves should
be ready to serve loads during extreme
cold weather. These changes will be
beneficial by providing greater
specificity about the relative roles of
generators and the balancing authority
in preparing for reliable cold weather
operations. Accordingly, we approve
Reliability Standard TOP–002–5 as
proposed.
IV. Information Collection Statement
25. The information collection
requirements contained in this Order
are subject to review by the Office of
Management and Budget (OMB) under
section 3507(d) of the Paperwork
Reduction Act of 1995.46 OMB’s
regulations require approval of certain
information collection requirements
imposed by agency rules.47 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.
26. 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.
27. The EOP Reliability Standards are
currently located in the FERC–725S
(OMB Control No. 1902–0270)
collection. The collection is currently
approved by OMB and contains
Reliability Standards EOP–010–1, EOP–
011–2, EOP–004–4, EOP–005–3, EOP–
006–3, EOP–008–2, and EOP–012–1.
There is one Reliability Standard that is
being updated within the FERC–725S
due to the revisions in Docket No.
RD24–1–000: Reliability Standard EOP–
011–4. The currently approved
Reliability Standard is EOP–011–3,
which is being replaced by Reliability
Standard EOP–011–4 (Table 1).
28. The TOP Reliability Standards are
currently located in FERC–725A (OMB
Control No. 1902–0270) collection. This
46 44
47 5
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CFR 1320 (2023).
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Federal Register / Vol. 89, No. 36 / Thursday, February 22, 2024 / Notices
collection is currently approved by
OMB and contains Reliability Standards
TOP–001–4, TOP–002–4, TOP–003–4,
FAC–008–5, FAC–003–2, and
‘‘Mandatory Reliability Standards’’
recordkeeping and reporting. There are
six information collections within the
FERC–725A that will remain unchanged
from the revisions in Docket No. RD24–
1–000. These six collections include the
Reliability Standards: TOP–001–4,
TOP–003–4, FAC–008–5, FAC–003–2,
and ‘‘Mandatory Reliability Standards’’
recordkeeping and reporting. There is
one Reliability Standard being updated
within the FERC–725A due to revisions
in Docket No. RD24–1–000: Reliability
Standard TOP–002–4, which is being
replaced by Reliability Standard TOP–
002–5 (Table 2).
29. The number of respondents below
is based on an estimate of the NERC
compliance registry for balancing
authorities, transmission operators,
reliability coordinators, transmission
owners, distribution providers and
UFLS-Only distribution providers.
Reliability Standard EOP–011–4 applies
to balancing authorities, transmission
operators, reliability coordinators,
transmission owners, distribution
providers and UFLS-Only distribution
providers. Reliability Standard TOP–
002–5 applies to transmission operators
and balancing authorities, for this
estimate new Requirement R8 applies to
the balancing authorities. The
Commission based its paperwork
burden estimates on the NERC
compliance registry as of December 15,
2023. According to the registry there are
98 balancing authorities, 165
transmission operators, and 12
reliability coordinators. The estimates in
the tables below are based on the change
in burden from the Reliability Standards
approved in this order. The Commission
based the burden estimates in the tables
below on staff experience, knowledge,
and expertise.
30. Public Reporting Burden: The
estimated costs and burden for the
revisions in Docket No. RD24–1–000 are
shown in the tables below.
TABLE 1—PROPOSED CHANGES TO FERC 725S DUE TO MODIFICATIONS IN DOCKET NO. RD24–1–000
Reliability standard & requirement
Type 48 and
number of entity
Number of
annual
responses
per entity
Total number
of responses
Average number of burden
hours per response 49
Total burden hours
(1)
(2)
(1) * (2) = (3)
(4)
(3) * (4) = (5)
FERC–725S—Proposed estimates due to RD24–1 for EOP–011–4
One Time Estimate—Years 1 and 2 in EOP–011–4
EOP–011–4
EOP–011–4
EOP–011–4
EOP–011–4
EOP–011–4
EOP–011–4
................................................
................................................
................................................
................................................
................................................
................................................
165 (TOP) ..................
98 (BA) ......................
12 (RC) ......................
72 (UFLS-Only DP) ...
300 (DP) ....................
324 (TO) ....................
1
1
1
1
1
1
165 ....................
98 ......................
12 ......................
72 ......................
300 ....................
324 ....................
40
20
20
40
40
40
hrs.,
hrs.,
hrs.,
hrs.,
hrs.,
hrs.,
$3,031.60
$1,515.80
$1,515.80
$3,031.60
$3,031.60
$3,031.60
..............
..............
..............
..............
..............
..............
6,600 hrs., $500,214.00.
1,960 hrs., $148,548.40.
240 hrs., $18,189.60.
2,880 hrs., $218,275.20.
12,000 hrs., $909,480.00.
12,960 hrs., $982,238.40.
Sub-total of EOP–011–4 (One time) ...
....................................
........................
971 ....................
.............................................
36,640 hrs., $2,776,945.60.
Annualized One-Time Costs (average cost
per year is calculated by the sub-total divided by 3).
....................................
........................
323.67 (rounded)
.............................................
12,213 hrs. (rounded),
$925,623.27.
Ongoing Estimate—Year 3 ongoing EOP–011–4
lotter on DSK11XQN23PROD with NOTICES1
EOP–011–4
EOP–011–4
EOP–011–4
EOP–011–4
EOP–011–4
EOP–011–4
................................................
................................................
................................................
................................................
................................................
................................................
165 (TOP) ..................
98 (BA) ......................
12 (RC) ......................
72 (UFLS-Only DP) ...
300 (DP) ....................
324 (TO) ....................
1
1
1
1
1
1
165 ....................
98 ......................
12 ......................
72 ......................
300 ....................
324 ....................
20 hrs., $1,515.80 ..............
4 hrs., $303.16 ...................
4 hrs., $303.16 ...................
10 hrs., $757.90 .................
10 hrs., $757.90 .................
10 hrs., $757.90 .................
3,300 hrs., $250,107.00.
392 hrs., $29,709.68.
48 hrs., $3,637.92.
720 hrs., $54,568.80.
3,000 hrs., $227,370.00.
3,240 hrs., $245,559.60.
Sub-Total of EOP–011–4 (ongoing) ....
Sub-Total of ongoing burden averaged
over three years.
....................................
....................................
........................
........................
971 ....................
323.67 (rounded)
.............................................
.............................................
10,700, $810,953.00
3,566.67 hrs. (rounded),
$270,317.92.
Proposed Total Annual Burden Estimate of
EOP–011–4 (one-time plus ongoing).
....................................
........................
647.34 ...............
.............................................
15,779.67 hrs.,
$1,195,941.19 (rounded).
48 TOP = Transmission Operator, BA = Balancing
Authority, RC = Reliability Coordinator, UFLS-Only
DP = Underfrequency Load Shed-Only Distribution
Provider, DP = Distribution Provider, and TO =
Transmission Owner.
VerDate Sep<11>2014
17:10 Feb 21, 2024
Jkt 262001
49 The estimated hourly cost (salary plus benefits)
is a combination based on the Bureau of Labor
Statistics (BLS), as of 2023, for 75% of the average
of an Electrical Engineer (17–2071)¥$77.29,
mechanical engineers (17–2141)¥$87.38. $77.29 +
PO 00000
Frm 00020
Fmt 4703
Sfmt 4703
$87.38/2 = 82.335 × .75 = 54.303 ($61.75 rounded)
($61.75/hour) and 25% of an Information and
Record Clerk (43–4199) $56.14 × .25% = 14.035
($14.04 rounded) ($14.04/hour), for a total ($61.75
+ $14.04 = $75.79/hour).
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Federal Register / Vol. 89, No. 36 / Thursday, February 22, 2024 / Notices
TABLE 2—PROPOSED CHANGES TO FERC 725A DUE TO MODIFICATIONS IN DOCKET NO. RD24–1–000
Requirement change
Type 50 and
number of
respondents
Annual
number of
responses per
respondent
Total number
of responses
Average burden & cost
per response 51
Total annual burden hours &
total annual cost
(1)
(2)
(1) * (2) = (3)
(4)
(3) * (4) = (5)
FERC–725A—Proposed estimates due to RD24–1
One Time Estimate—Years 1 and 2 in TOP–002–5
TOP–002–5 ........................................................
98 (BA)
1
98 ....................
40 hrs., $3,031.60 ....................
3,920 hrs., $297,096.80.
Ongoing Estimate—Year 3 ongoing TOP–002–5
TOP–002–5 ........................................................
Sub-Total of One-Time estimate for years
1 and 2.
Sub-Total for Ongoing estimate of year 3
and beyond.
Annualized one-time Total burden for years 1
and 2 (one-time sub-total divided by 3).
Annualized ongoing total burden for years 3
and beyond (ongoing sub-total divided by 3).
Annualized Total Burden Estimate of TOP–
002–5.
98 (BA)
1
98 ....................
20 hrs., $1,515.80 ....................
1,960 hrs., $148,548.40.
....................
........................
98 ....................
40 hrs., $3,031.60 ....................
3,920 hrs., $297,096.80.
....................
........................
98 ....................
20 hrs., $1,515.80 ....................
1,960 hrs., $148,548.40.
....................
........................
32.67 (rounded)
....................
........................
32.67 (rounded)
13.33 hrs. (rounded),
$1,010.28.
6.67 hrs., $505.52 (rounded) ...
....................
........................
65.34 ...............
20 hrs., $1,515.80 ....................
1,306.67 hrs., $99,032.52
(rounded).
653.33 hrs., $49,515.88
(rounded).
1,960 hrs., $148,548.40.
Titles: FERC–725S (Mandatory
Reliability Standards: Emergency
Preparedness and Operations (EOP)
Reliability Standards)); FERC–725A
(Mandatory Reliability Standards for the
Bulk-Power System).
Action: Revision to Existing
Collections of Information in FERC–
725S and FERC–725A.
OMB Control Nos: 1902–0270 (FERC
725S); 1902–0244 (FERC–725A).
Respondents: Business or other for
profit, and not for profit institutions.
Frequency of Responses: Annually.
Necessity of the Information:
Reliability Standards EOP–011–4
(Emergency Operations) and TOP–002–
5 (Operations Planning) are 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.
Specifically, the revised Reliability
Standard EOP–011–4 addresses the
effects of operating emergencies by
ensuring that each transmission
operator and balancing authority has
developed plan(s) to mitigate operating
emergencies and that those plans are
implemented and coordinated within
the reliability coordinator area. Further,
50 BA
= Balancing Authority.
estimated hourly cost (salary plus benefits)
is a combination based on the Bureau of Labor
Statistics (BLS), as of 2023, for 75% of the average
of an Electrical Engineer (17–2071)¥$77.29,
mechanical engineers (17–2141)¥$87.38. $77.29 +
$87.38/2 = 82.335 × .75 = 54.303 ($61.75 rounded)
($61.75/hour) and 25% of an Information and
Record Clerk (43–4199) $56.14 × .25% = 14.035
($14.04 rounded) ($14.04/hour), for a total
($61.75+$14.04 = $75.79/hour).
lotter on DSK11XQN23PROD with NOTICES1
51 The
VerDate Sep<11>2014
17:10 Feb 21, 2024
Jkt 262001
revised Reliability Standard TOP–002–5
ensures that transmission operators and
balancing authorities have plans for
operating within specified limits.
Internal review: The Commission has
reviewed the revised Reliability
Standards and made a determination
that its action is necessary to implement
section 215 of the FPA. The
Commission has assured itself, by
means of its internal review, that there
is specific, objective support for the
burden estimates associated with the
information requirements.
a. Description of the Revision to
FERC–725S: The FERC–725S (OMB
Control No. 1902–0270) is an existing
information collection that contains the
requirements for the EOP–011–3
Reliability Standard. As described in the
Docket No. RD24–1–000 above, the
Reliability Standard (EOP–011–3) is
proposed to be retired and replaced by
EOP–011–4.
b. Description of the Revision to
FERC–725A: The FERC–725A (OMB
Control No. 1902–0244) is an existing
information collection that contains the
requirements for the TOP–002–4
Reliability Standard.52 As described in
Docket No. RD24–1–000 above,
Reliability Standard TOP–002–4 is
approved to be retired and replaced by
TOP–002–5.
31. 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
52 This
collection is currently pending at OMB for
an unrelated matter.
PO 00000
Frm 00021
Fmt 4703
Sfmt 4703
[Attention: Jean Sonneman, email:
DataClearance@ferc.gov, phone: (202)
502–8663, fax: (202) 273–0873].
32. Comments concerning the
information collections and
requirements approved for retirement in
this order and the associated burden
estimates, should be sent to the
Commission (identified by Docket No.
RD24–1–000), using the following
methods: Electronic filing through
https://www.ferc.gov is preferred.
Electronic Filing should be filed in
acceptable native applications and
print-to-PDF, but not in scanned or
picture format. For those unable to file
electronically, comments may be filed
by USPS mail or by hand (including
courier) delivery: Mail via U.S. Postal
Service Only: Addressed to: Federal
Energy Regulatory Commission,
Secretary of the Commission, 888 First
Street NE, Washington, DC 20426. Hand
(including courier) delivery: Deliver to:
Federal Energy Regulatory Commission,
12225 Wilkins Avenue, Rockville, MD
20852.
V. Environmental Analysis
33. 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.53 The Commission has
categorically excluded certain actions
from this requirement as not having a
significant effect on the human
environment. Included in the exclusion
53 Reguls. Implementing the Nat’l Env’t Pol’y Act,
Order No. 486, FERC Stats. & Regs. ¶ 30,783 (1987)
(cross-referenced at 41 FERC ¶ 61,284).
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Federal Register / Vol. 89, No. 36 / Thursday, February 22, 2024 / Notices
are rules that are clarifying, corrective,
or procedural or that do not
substantially change the effect of the
regulations being amended.54 The
actions directed herein fall within this
categorical exclusion in the
Commission’s regulations.
VI. Document Availability
lotter on DSK11XQN23PROD with NOTICES1
34. 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).
35. From the Commission’s Home
Page on the internet, this information is
available on eLibrary. The full text of
this document is available on eLibrary
in PDF and Microsoft Word format for
viewing, printing, and/or downloading.
To access this document in eLibrary,
type the docket number excluding the
last three digits of this document in the
docket number field.
36. User assistance is available for
eLibrary and the Commission’s website
during normal business hours from the
Commission’s Online Support at (202)
502–6652 (toll free at 1–866–208–3676)
or email at ferconlinesupport@ferc.gov,
or the Public Reference Room at (202)
502–8371, TTY (202) 502–8659. Email
the Public Reference Room at
public.referenceroom@ferc.gov.
The Commission orders:
(A) Reliability Standards EOP–011–4
and TOP–002–5 and their associated
violation risk factors and violation
severity levels are hereby approved, as
discussed in the body of this order.
(B) The decision on whether to
approve or modify NERC’s proposed
implementation date for Reliability
Standard EOP–011–4 (and the proposed
retirement of Reliability Standard EOP–
011–2 and EOP–011–3) is hereby
deferred until NERC submits its revised
applicability section for Reliability
Standard EOP–012–2.
By the Commission. Commissioner
Clements is concurring with a separate
statement attached.
54 18
CFR 380.4(a)(2)(ii) (2023).
VerDate Sep<11>2014
17:10 Feb 21, 2024
Jkt 262001
Issued: February 15, 2024.
Debbie-Anne A. Reese,
Acting Secretary.
United States of America
Federal Energy Regulatory Commission
North American Electric Reliability
Corporation
Docket No. RD24–1–000
(Issued February 14, 2024)
CLEMENTS, Commissioner, concurring:
1. While I am voting with my
colleagues to approve these revised
Reliability Standards, I am writing
separately to express my concern with
the delayed implementation timeline for
EOP–011–4.
2. Today’s order highlights ‘‘the
importance of these revised Reliability
Standards to maintaining the reliable
operation of the Bulk-Power System.’’ 1
But this stated importance is undercut
by the extended time granted to affected
Registered Entities to implement the
new requirements. Specifically, NERC
proposed that EOP–011–4 become
effective on the first day of the first
calendar quarter that is six months
following regulatory approval,2 and
then for each affected Registered Entity
to have at least 30 months after this
effective date to comply with the new
and revised provisions of the
requirement.3 Under the best of
scenarios, this would mean that these
new and revised provisions would be
implemented no sooner than April 1,
2027—three years, and crucially, three
winters from today.4
3. Three years after regulatory
approval to implement changes to a
Reliability Standard is an awfully long
time. By the time these standards are
implemented, recent experience has
taught us that we are likely to face one
or more dangerous winter storms. As
with Uri in February 2021, Elliott in
December 2022, and Gerri/Heather in
January 2024, widespread, long duration
winter storms that threaten the
reliability of our system are no longer
1 Order,
2 By
186 FERC ¶ 61,115, at P 20 (2024).
my calculation, this would mean October 1,
2024.
3 NERC, Petition, Docket No. RD24–1–000,
Exhibit B ‘‘Implementation Plan’’ at 3 (filed Oct. 30,
2023).
4 However, as discussed in the draft order, the
actual effective date and implementation plan for
EOP–011–4 hinges on NERC’s upcoming
submission, and Commission approval, of a revised
applicability section for EOP–012. If the
Commission was to reject the revised applicability
section of EOP–012, it is unclear to me when we
can expect the requirements to EOP–011–4 (and the
preceding, but also yet to be effective, EOP–011–3)
to be implemented.
PO 00000
Frm 00022
Fmt 4703
Sfmt 4703
rare events, but rather nearly annual
occurrences.
4. I appreciate that NERC has
continually worked with its
stakeholders to advance improved
Reliability Standards for cold weather
operations and preparedness following
Winter Storm Uri and the subsequent
Staff Report.5 I also recognize that the
30-month implementation timeframe is
responsive to some stakeholders’
concerns about the potential time
needed to implement any physical
changes necessary to comply with the
requirements of the revised standard.
However, considering the urgency of the
winter storm risk that faces our system,
this is not the first time that I have been
left wondering if our processes for
drafting and implementing needed
Reliability Standards, whether they be
cold weather standards or cybersecurity
standards, are too slow to keep up with
needed change.6
For these reasons, I respectfully
concur.
Allison Clements,
Commissioner.
[FR Doc. 2024–03608 Filed 2–21–24; 8:45 am]
BILLING CODE 6717–01–P
DEPARTMENT OF ENERGY
Federal Energy Regulatory
Commission
[Project No. 7987–016]
Up Property 2, LLC; Notice of Intent To
Prepare an Environmental Assessment
On October 5, 2023, as supplemented
on October 20, 2023, November 3, 2023,
and November 13, 2023, UP Property 2,
LLC filed an application to surrender
the exemption for and remove the High
5 See FERC, NERC, and Regional Entity Staff, The
February 2021 Cold Weather Outages in Texas and
the South Central United States, 19 (Nov. 16, 2021)
(November 2021 Report), https://www.ferc.gov/
media/february-2021-cold-weather-outages-texasand-south-central-united-states-ferc-nerc-and.
6 See, e.g., Transcript of the 1097th Meeting,
FERC, at 21 (Jan. 19, 2023), https://www.ferc.gov/
media/transcript-january-2023-commission-meeting
(‘‘I’m very pleased that we are directing a firm 15month deadline for NERC to propose the
standards. . . . The processes take time, but it is
imperative that we get this important cybersecurity
measure in place as quickly as it is feasible.’’);
Transcript of the 1098th Meeting, FERC, at 23–24
(Feb. 16, 2023), https://www.ferc.gov/media/
transcript-february-2023-commission-meeting
(‘‘[T]he critical generator weatherization
requirements as proposed are, to be frank, not up
to the task. The proposal before us requires existing
generators to weatherize so they are capable of
operating for one hour at extreme cold temperatures
beginning in April of 2027. . . . [W]aiting [for] four
additional winters before weatherization
requirements actually kick in does not reflect the
urgency we feel.’’).
E:\FR\FM\22FEN1.SGM
22FEN1
Agencies
[Federal Register Volume 89, Number 36 (Thursday, February 22, 2024)]
[Notices]
[Pages 13324-13330]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-03608]
-----------------------------------------------------------------------
DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
[Docket No. RD24-1-000]
North American Electric Reliability Corporation; Order Approving
Extreme Cold Weather Reliability Standards EOP-011-4 and TOP-002-5
1. On October 30, 2023, the North American Electric Reliability
Corporation (NERC), the Commission-certified Electric Reliability
Organization (ERO), submitted a petition seeking approval of proposed
Reliability Standards EOP-011-4 (Emergency Operations) and TOP-002-5
(Operations Planning). As discussed in this order, we approve proposed
Reliability Standards EOP-011-4 and TOP-002-5 and their associated
violation risk factors and violation severity levels.
2. It is essential to the reliable operation of the Bulk-Power
System to protect critical natural gas infrastructure loads that serve
gas-fired generation.\1\ As the November 2021 Report found, natural gas
fuel issues were the second largest cause of generation outages during
Winter Storm Uri.\2\ Proposed Reliability Standards EOP-011-4 and TOP-
002-5 address the concerns raised by the November 2021 Report.\3\
Accordingly, we approve proposed Reliability Standards EOP-011-4 and
TOP-002-5 as just, reasonable, not unduly discriminatory or
preferential, and in the public interest.
---------------------------------------------------------------------------
\1\ See FERC, NERC, and Regional Entity Staff, The February 2021
Cold Weather Outages in Texas and the South Central United States,
19 (Nov. 16, 2021) (November 2021 Report), https://www.ferc.gov/media/february-2021-cold-weather-outages-texas-and-south-central-united-states-ferc-nerc-and; see also id. at 19 n.30 (```Natural gas
infrastructure' refers to natural gas production, gathering,
processing, intrastate and interstate pipelines, storage and other
infrastructure used to move natural gas from wellhead to burner
tip.'').
\2\ Id. at 18.
\3\ See id. at 6, 24, 41-43.
---------------------------------------------------------------------------
I. Background
A. Section 215 and Mandatory Reliability Standards
3. 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.\4\
Reliability Standards may be enforced by the ERO, subject to Commission
oversight, or by the Commission independently.\5\ Pursuant to section
215 of the FPA, the
[[Page 13325]]
Commission established a process to select and certify an ERO,\6\ and
subsequently certified NERC.\7\
---------------------------------------------------------------------------
\4\ 16 U.S.C. 824o(c).
\5\ Id. 824o(e).
\6\ Rules Concerning Certification of the Elec. Reliability
Org.; and Procs for the Establishment, Approval, & Enforcement of
Elec. Reliability Standards, Order No. 672, 114 FERC ] 61,104, order
on reh'g, Order No. 672-A, 114 FERC ] 61,328 (2006).
\7\ 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. The February 2021 Cold Weather Reliability Event
4. On February 16, 2021, the Commission, NERC, and Regional Entity
staff initiated a joint inquiry into the circumstances surrounding a
February 2021 cold weather reliability event that affected Texas and
the South Central United States that culminated in a report
identifying, among other things, recommendations for Reliability
Standard improvements.\8\ The November 2021 Report found that the
February 2021 cold weather reliability event was the largest controlled
firm load shed event in U.S. history; over 4.5 million people lost
power and at least 210 people lost their lives.\9\ The November 2021
Report provided an assessment of the event as well as recommendations
including, inter alia, Reliability Standard enhancements to improve
extreme cold weather operations, preparedness, and coordination.\10\
---------------------------------------------------------------------------
\8\ See November 2021 Report at 9.
\9\ Id.
\10\ Id. at 184-212 (Key recommendations 1a through 1j).
---------------------------------------------------------------------------
5. After the February 2021 cold weather reliability event and
before the November 2021 Report was issued, NERC filed a petition for
approval of cold weather Reliability Standards addressing
recommendations from a 2018 cold weather event report.\11\ In August
2021, the Commission approved NERC's modifications to Reliability
Standards EOP-011-2 (Emergency Preparedness and Operations), IRO-010-4
(Reliability Coordinator Data Specification and Collection), and TOP-
003-5 (Operational Reliability Data).\12\ Reliability Standards IRO-
010-4 and TOP-003-5 require that reliability coordinators, transmission
operators, and balancing authorities develop, maintain, and share
generator cold weather data.\13\ Reliability Standard EOP-011-2
requires generator owners to have generating unit cold weather
preparedness plans and generator owners and generator operators to
provide training for implementing the cold weather preparedness
plans.\14\
---------------------------------------------------------------------------
\11\ FERC and NERC Staff, The South Central United States Cold
Weather Bulk Electric System Event of January 17, 2018, 89 (July
2019), https://www.ferc.gov/sites/default/files/2020-05/07-18-19-ferc-nerc-report_0.pdf.
\12\ See generally N. Am. Elec. Reliability Corp., 176 FERC ]
61,119 (2021) (noting that the Reliability Standards become
enforceable on April 1, 2023).
\13\ Id.
\14\ Id.
---------------------------------------------------------------------------
6. On October 28, 2022, NERC filed a petition seeking approval, on
an expedited basis, of Reliability Standards EOP-011-3 (Emergency
Operations) and EOP-012-1 (Extreme Cold Weather Preparedness and
Operations), the Reliability Standards' associated violation risk
factors and violation severity levels, three newly-defined terms
(Extreme Cold Weather Temperature, Generator Cold Weather Critical
Component, and Generator Cold Weather Reliability Event), NERC's
proposed implementation plan, and the retirement of Reliability
Standard EOP-011-2.\15\ On February 16, 2023, the Commission approved
Reliability Standards EOP-011-3 and EOP-012-1, and also directed NERC
to develop and submit modifications to Reliability Standard EOP-012-1
and to submit a plan on how NERC will collect and assess data
surrounding the implementation of Reliability Standard EOP-012-1.\16\
---------------------------------------------------------------------------
\15\ NERC, Petition, Docket No. RD23-1-000, at 1-2 (filed Oct.
28, 2022).
\16\ See N. Am. Elec. Reliability Corp., 182 FERC ] 61,094, at
PP 3-11 (February 2023 Order), order on reh'g, 183 FERC ] 61,222
(2023).
---------------------------------------------------------------------------
C. NERC's Petition and Proposed Reliability Standards EOP-011-4 and
TOP-002-5
7. On October 30, 2023, NERC filed a petition seeking approval on
an expedited basis of proposed Reliability Standards EOP-011-4 and TOP-
002-5,\17\ the Reliability Standards' associated violation risk factors
and violation severity levels, NERC's proposed implementation plan, and
the retirement of currently approved EOP-011-3 and TOP-002-4.\18\ NERC
explains that proposed Reliability Standards EOP-011-4 and TOP-002-5
build on the 2021 and 2023-approved cold weather Reliability Standards,
further reducing the risks posed by extreme cold weather to the
reliability of the Bulk-Power System.\19\ NERC maintains that proposed
Reliability Standards EOP-011-4 and TOP-002-5 are consistent with key
recommendations from the November 2021 Report.\20\
---------------------------------------------------------------------------
\17\ The proposed Reliability Standards are not attached to this
order. The proposed Reliability Standards are available on the
Commission's eLibrary document retrieval system in Docket No. RD24-
1-000 and on the NERC website, https://www.nerc.com.
\18\ NERC Petition at 1-2, 48, 54 (stating that, in the
alternative, should Reliability Standard EOP-011-2 be in effect at
the time of proposed Reliability Standard EOP-011-4's approval, then
NERC seeks retirement of EOP-011-2).
\19\ Id. at 1-2.
\20\ Id. at 6; see also November 2021 Report at 190-91, 208-09
(Key Recommendations 1g, 1h, and 1i).
---------------------------------------------------------------------------
8. NERC explains that it adopted a two-phase standard development
project to develop, draft, and revise the extreme cold weather
Reliability Standards in accordance with the November 2021 Report due
to the extensive scope and demonstrated urgency of new and improved
cold weather Reliability Standards. NERC states that its October 30,
2023, petition represents the portions of its phase two standard
development project pertaining to Key Recommendations 1g, 1h, and
1i.\21\
---------------------------------------------------------------------------
\21\ NERC Petition at 21-22, 51.
---------------------------------------------------------------------------
9. NERC states that proposed Reliability Standard EOP-011-4
advances reliability by requiring transmission operators to consider
the impacts of load shedding during emergency conditions on the natural
gas infrastructure that fuels a significant portion of bulk electric
system generation.\22\ NERC explains that the purpose of proposed
Reliability Standard EOP-011-4 is unchanged from EOP-011-3, and is to
ensure that each transmission operator and balancing authority
implements plans to mitigate operating emergencies and that such plans
are coordinated within the reliability coordinator area. According to
NERC, proposed Reliability Standard EOP-011-4 addresses Key
Recommendation 1h and 1i from the November 2021 Report.\23\
---------------------------------------------------------------------------
\22\ Id. at 26-27.
\23\ See id. at 27 (citing the November 2021 Report at 208-09).
---------------------------------------------------------------------------
10. NERC proposes to modify the approved, but not yet effective,
Reliability Standard EOP-011-3 in multiple ways.\24\ First, NERC
proposes to add distribution providers, Underfrequency Load Shed
(UFLS)-only distribution providers, and transmission owners to the list
of applicable entities that must comply with the Reliability Standard
EOP-011-4.\25\ Second, under proposed Reliability Standard EOP-011-4,
each transmission operator will be required to include operating plan
[[Page 13326]]
provisions that identify and prioritize designated critical natural gas
infrastructure loads that are ``essential to the reliability of the
bulk electric system.'' \26\ Third, balancing authorities must develop,
maintain, and implement one or more reliability coordinator-reviewed
operating plans with provisions for excluding critical natural gas
infrastructure loads that are essential to the reliability of the bulk
electric system as interruptible load, curtailable load, and demand
response during extreme cold weather periods within each balancing
authority area.\27\
---------------------------------------------------------------------------
\24\ Reliability Standard EOP-011-3, Requirements R3, R4, and R5
are unchanged from the approved version. See N. Am. Elec.
Reliability Corp., 176 FERC ] 61,119 (approving Reliability Standard
EOP-011-2).
\25\ The applicability section of Reliability Standard EOP-011-3
identifies only balancing authorities, reliability coordinators, and
transmission operators as the applicable entities.
\26\ NERC Petition at 30-31; see also id. Ex. C-1 at 5.
\27\ Id. at 39.
---------------------------------------------------------------------------
11. Proposed Reliability Standard EOP-011-4 Requirement R1 would
also require that transmission operators implement operator-controlled
manual load shed, Undervoltage Load Shed (UVLS), or UFLS in operating
plans.\28\ Proposed Requirement R7 requires transmission operators to
annually identify and notify distribution providers, UFLS-only
distribution providers, and transmission owners that that they are
required to assist with the mitigation of operating emergencies in its
transmission operator area.\29\ Finally, proposed Requirement R8 states
that each distribution provider, UFLS-only distribution provider, and
transmission owner notified by a transmission operator per proposed
Requirement R7 to assist with the mitigation of operating emergencies
must develop, maintain, and implement a load shedding plan.\30\
---------------------------------------------------------------------------
\28\ Id.
\29\ Id. at 35.
\30\ Id. at 35-36.
---------------------------------------------------------------------------
12. NERC also requests approval of proposed Reliability Standard
TOP-002-5 to provide greater specificity regarding the balancing
authority's responsibilities in extreme cold weather. According to
NERC, this proposed Reliability Standard would address parts of Key
Recommendation 1g of the November 2021 Report.\31\
---------------------------------------------------------------------------
\31\ See id. at 41-42 (citing the November 2021 Report at 190-
91, which states that key recommendation 1g proposes enhancements to
Reliability Standard TOP-003 to provide greater specificity about
the relative roles of the generator owner, generator operator, and
balancing authority in determining the generating unit capacity that
can be relied upon during ``local forecasted cold weather'').
---------------------------------------------------------------------------
13. According to NERC, proposed Reliability Standard TOP-002-5 is
unchanged from the prior version except for the addition of one new
requirement, Requirement R8.\32\ Proposed Requirement R8 would require
each balancing authority to have an operating process \33\ for extreme
cold weather that includes: (1) a methodology for identifying ``extreme
cold weather conditions'' in the area; (2) a methodology for
determining an appropriate extreme cold weather reserve margin for the
area, considering the types of operating limitations that have been
known to limit resource availability in cold weather; and (3) a
methodology for determining a five-day hourly forecast that accounts
for all relevant operational considerations, including resource
availability, demand, reserve requirements, and forecasted weather.\34\
---------------------------------------------------------------------------
\32\ Proposed Reliability Standard TOP-002-5, Requirements R1,
R2, R3, R4, R5, R6, and R7 are unchanged from the mandatory and
enforceable version, Reliability Standard TOP-002-4.
\33\ NERC defines the term ``operating process'' as a ``document
that identifies general steps for achieving a generic operating
goal. An operating process includes steps with options that may be
selected depending upon Real-time conditions. . . .'' NERC, Glossary
of Terms Used in NERC Reliability Standards, 21 (Dec. 2023), https://www.nerc.com/pa/Stand/GlossaryofTerms/Glossary_of_Terms.pdf.
\34\ NERC Petition at 43-48.
---------------------------------------------------------------------------
14. NERC requests that the Commission approve the proposed
violation risk factors and violation severity levels for proposed
Reliability Standards EOP-011-4 and TOP-002-5. Further, NERC proposes
an effective date for proposed Reliability Standard EOP-011-4 beginning
on the first day of the first calendar quarter that is six months
following regulatory approval.\35\ Once identified and notified to
assist by their transmission operators pursuant to proposed Requirement
R7, the newly applicable entities (distribution providers, UFLS-only
distribution providers, and transmission owners) will have 30 months to
develop a load shedding plan pursuant to proposed Requirement R8.
Transmission operators and balancing authorities would also have 30
months from the effective date of proposed Reliability Standard EOP-
011-4 to comply with the revised provisions specific to UFLS, UVLS, and
critical gas infrastructure loads.\36\ NERC also requests that the
Commission approve the retirement of Reliability Standard EOP-011-3
immediately prior to the effective date of Reliability Standard EOP-
011-4; or, of Reliability Standard EOP-011-2 if it is the version of
EOP-011 in effect at the time that proposed Reliability Standard EOP-
011-4 becomes effective. NERC explains that this proposed
implementation plan is necessary given the large amount of interaction
that will be required between the applicable entities and natural gas
entities to identify critical natural gas infrastructure loads and
account for them as required in manual shedding and underfrequency and
undervoltage load shedding schemes.\37\
---------------------------------------------------------------------------
\35\ See id. at Ex. B at 2-4; see also id. at 49 n.96 (observing
that transmission operators will be required to comply with proposed
Reliability Standard EOP-011-4 Requirement R7 and perform their
first annual identification and notification to newly applicable
entities by the effective date of the Reliability Standard).
\36\ Proposed Reliability Standard EOP-011-4 Requirements R1,
Part 1.2.5 (transmission operator), Requirement R2 Part 2.2.8 and
Part 2.2.9 (balancing authority).
\37\ NERC Petition at 48-49.
---------------------------------------------------------------------------
15. NERC proposes an effective date for proposed Reliability
Standard TOP-002-5 beginning on the first day of the first calendar
quarter that is 18 months following regulatory approval. NERC requests
that the Commission approve the retirement of Reliability Standard TOP-
002-4 immediately prior to the effective date of Reliability Standard
TOP-002-5. NERC states that the proposed implementation plan reflects
consideration of the time needed to develop an extreme cold weather
operating process, with the required methodologies reflecting the
minimum cold weather reliability considerations identified in proposed
Requirement R8.\38\
---------------------------------------------------------------------------
\38\ Id. at 50.
---------------------------------------------------------------------------
16. Finally, NERC requests that the Commission approve the proposed
Reliability Standards in an expedited manner. NERC explains that, among
other things, expedited approval would provide regulatory certainty to
entities seeking to implement the proposed Reliability Standards ahead
of the mandatory and enforceable dates.\39\
---------------------------------------------------------------------------
\39\ Id. at 53.
---------------------------------------------------------------------------
II. Notice of Filing and Responsive Pleadings
17. Notice of NERC's October 30, 2023, petition was published in
the Federal Register, 88 FR 76,201 (Nov. 6, 2023), with comments,
protests, and motions to intervene due on or before November 30, 2023.
18. There were no comments or protests. Ameren Service Company, as
an agent for Union Electric Company, filed a motion to intervene.
III. Determination
A. Procedural Matters
19. Pursuant to Rule 214 of the Commission's Rules of Practice and
Procedure, 18 CFR 385.214 (2023), the timely, unopposed motions to
intervene serve to make the entities that filed them parties to this
proceeding.
B. Substantive Matters
20. Pursuant to section 215(d)(2) of the FPA, we approve proposed
Reliability Standards EOP-011-4 and
[[Page 13327]]
TOP-002-5 as just, reasonable, not unduly discriminatory or
preferential, and in the public interest. We also approve the proposed
Reliability Standards' associated violation risk factors and violation
severity levels, proposed Reliability Standard TOP-002-5 implementation
plan, and the retirement of currently effective Reliability Standard
TOP-002-4. We agree with NERC that the proposed modifications to the
Reliability Standards are consistent with and respond to Key
Recommendations 1g, 1h, and 1i from the November 2021 Report.\40\ Given
the importance of these revised Reliability Standards to maintaining
the reliable operation of the Bulk-Power System, we strongly encourage
entities that are capable of complying earlier than the mandatory and
enforceable date to do so.
---------------------------------------------------------------------------
\40\ See November 2021 Report at 190-91, 208-09.
---------------------------------------------------------------------------
21. We defer our decision on whether to approve or modify NERC's
proposed implementation plan for proposed Reliability Standard EOP-011-
4 (and the proposed retirement of Reliability Standard EOP-011-2) until
NERC submits the revised applicability section for Reliability Standard
EOP-012-1.\41\ As mentioned in the Commission's February 2023
Order,\42\ allowing Reliability Standard EOP-011-2 requirements to
remain mandatory and enforceable until such time as the revised
applicability is effective for Reliability Standard EOP-012-1 will
ensure all bulk electric system generating units are required to
maintain cold weather preparedness plans and associated trainings.
---------------------------------------------------------------------------
\41\ NERC states that it will submit a revised EOP-012
Reliability Standard, specifically, Reliability Standard EOP-012-2,
by the Commission's February 2024 deadline. See NERC Petition at 21,
51.
\42\ See February 2023 Order, 182 FERC ] 61,094 at PP 5, 59.
---------------------------------------------------------------------------
22. We find that proposed Reliability Standard EOP-011-4 materially
improves the reliable operation of the Bulk-Power System, is an
improvement over the 2021 and 2023-approved cold weather Reliability
Standards, and enhances reliability by requiring balancing authorities,
transmission operators, and load shedding entities to account for
critical natural gas infrastructure loads in the demand response and
emergency load shedding programs they oversee. Doing so will help
ensure that deploying these programs in extreme cold weather conditions
will not exacerbate natural gas fuel supply issues, which could
constrain generating unit capacity and thereby threaten the reliable
operation of the Bulk-Power System. Accordingly, we approve Reliability
Standard EOP-011-4 as proposed.
23. Under Reliability Standard EOP-011-4, Requirement R1, each
transmission operator must include provisions in its operating plan(s)
for the identification of designated critical natural gas
infrastructure loads that are essential to the reliability of the bulk
electric system.\43\ This Reliability Standard also requires that each
distribution provider, UFLS-only distribution provider, and
transmission owner include provisions in its load shedding plan(s) for
the identification of designated critical natural gas infrastructure
loads that are ``essential to the reliability of the bulk electric
system.'' \44\ While Reliability Standard EOP-011-4 employs a flexible
approach for the above entities to identify critical natural gas
infrastructure loads, this Reliability Standard may require
coordination and communication between electric and natural gas
entities pertaining to extreme cold weather beyond what has
historically occurred.\45\ As such, we strongly encourage the electric
and natural gas entities that play a role in these Reliability
Standards to voluntarily begin enhancing their coordination and
communication this winter season, prior to the Reliability Standard's
mandatory and enforceable effective date.
---------------------------------------------------------------------------
\43\ Reliability Standard EOP-011-4, Requirement R1, Part
1.2.5.5.
\44\ Id., Requirement R8, Part 8.1.5.
\45\ See NERC Petition at 32-33 (stating that one method for
identifying such loads may include distributing criteria to natural
gas infrastructure entities to identify the critical facilities that
would likely affect bulk electric system reliability adversely if
de-energized).
---------------------------------------------------------------------------
24. We find that proposed Reliability Standard TOP-002-5 materially
improves the reliable operation of the Bulk-Power System, represents an
improvement to the existing Reliability Standards, and enhances
reliability by requiring that balancing authorities have comprehensive
operating processes for extreme cold weather periods in their areas.
Proposed Reliability Standard TOP-002-5 also requires each balancing
authority to notify the entities identified in these operating plans of
their respective roles and to provide the operating plans to its
reliability coordinator for visibility. Proposed Reliability Standard
TOP-002-5 recognizes that there have been several past extreme cold
weather events where load and resource balancing issues have occurred
due to unexpected generator trips and higher loads than forecasted.
Proposed Requirement R8 formalizes the balancing authority's process to
review and respond to oncoming conditions that may affect generation
availability and capability, to forecast load, and to determine whether
additional capability or reserves should be ready to serve loads during
extreme cold weather. These changes will be beneficial by providing
greater specificity about the relative roles of generators and the
balancing authority in preparing for reliable cold weather operations.
Accordingly, we approve Reliability Standard TOP-002-5 as proposed.
IV. Information Collection Statement
25. The information collection requirements contained in this Order
are subject to review by the Office of Management and Budget (OMB)
under section 3507(d) of the Paperwork Reduction Act of 1995.\46\ OMB's
regulations require approval of certain information collection
requirements imposed by agency rules.\47\ 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.
---------------------------------------------------------------------------
\46\ 44 U.S.C. 3507(d).
\47\ 5 CFR 1320 (2023).
---------------------------------------------------------------------------
26. 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.
27. The EOP Reliability Standards are currently located in the
FERC-725S (OMB Control No. 1902-0270) collection. The collection is
currently approved by OMB and contains Reliability Standards EOP-010-1,
EOP-011-2, EOP-004-4, EOP-005-3, EOP-006-3, EOP-008-2, and EOP-012-1.
There is one Reliability Standard that is being updated within the
FERC-725S due to the revisions in Docket No. RD24-1-000: Reliability
Standard EOP-011-4. The currently approved Reliability Standard is EOP-
011-3, which is being replaced by Reliability Standard EOP-011-4 (Table
1).
28. The TOP Reliability Standards are currently located in FERC-
725A (OMB Control No. 1902-0270) collection. This
[[Page 13328]]
collection is currently approved by OMB and contains Reliability
Standards TOP-001-4, TOP-002-4, TOP-003-4, FAC-008-5, FAC-003-2, and
``Mandatory Reliability Standards'' recordkeeping and reporting. There
are six information collections within the FERC-725A that will remain
unchanged from the revisions in Docket No. RD24-1-000. These six
collections include the Reliability Standards: TOP-001-4, TOP-003-4,
FAC-008-5, FAC-003-2, and ``Mandatory Reliability Standards''
recordkeeping and reporting. There is one Reliability Standard being
updated within the FERC-725A due to revisions in Docket No. RD24-1-000:
Reliability Standard TOP-002-4, which is being replaced by Reliability
Standard TOP-002-5 (Table 2).
29. The number of respondents below is based on an estimate of the
NERC compliance registry for balancing authorities, transmission
operators, reliability coordinators, transmission owners, distribution
providers and UFLS-Only distribution providers. Reliability Standard
EOP-011-4 applies to balancing authorities, transmission operators,
reliability coordinators, transmission owners, distribution providers
and UFLS-Only distribution providers. Reliability Standard TOP-002-5
applies to transmission operators and balancing authorities, for this
estimate new Requirement R8 applies to the balancing authorities. The
Commission based its paperwork burden estimates on the NERC compliance
registry as of December 15, 2023. According to the registry there are
98 balancing authorities, 165 transmission operators, and 12
reliability coordinators. The estimates in the tables below are based
on the change in burden from the Reliability Standards approved in this
order. The Commission based the burden estimates in the tables below on
staff experience, knowledge, and expertise.
30. Public Reporting Burden: The estimated costs and burden for the
revisions in Docket No. RD24-1-000 are shown in the tables below.
---------------------------------------------------------------------------
\48\ TOP = Transmission Operator, BA = Balancing Authority, RC =
Reliability Coordinator, UFLS-Only DP = Underfrequency Load Shed-
Only Distribution Provider, DP = Distribution Provider, and TO =
Transmission Owner.
\49\ The estimated hourly cost (salary plus benefits) is a
combination based on the Bureau of Labor Statistics (BLS), as of
2023, for 75% of the average of an Electrical Engineer (17-2071)-
$77.29, mechanical engineers (17-2141)-$87.38. $77.29 + $87.38/2 =
82.335 x .75 = 54.303 ($61.75 rounded) ($61.75/hour) and 25% of an
Information and Record Clerk (43-4199) $56.14 x .25% = 14.035
($14.04 rounded) ($14.04/hour), for a total ($61.75 + $14.04 =
$75.79/hour).
Table 1--Proposed Changes to FERC 725S Due to Modifications in Docket No. RD24-1-000
--------------------------------------------------------------------------------------------------------------------------------------------------------
Number of
Type \48\ and number of annual Average number of
Reliability standard & requirement entity responses per Total number of responses burden hours per Total burden hours
entity response \49\
(1).................... (2) (1) * (2) = (3).......... (4)................... (3) * (4) = (5)
--------------------------------------------------------------------------------------------------------------------------------------------------------
FERC-725S--Proposed estimates due to RD24-1 for EOP-011-4
--------------------------------------------------------------------------------------------------------------------------------------------------------
One Time Estimate--Years 1 and 2 in EOP-011-4
--------------------------------------------------------------------------------------------------------------------------------------------------------
EOP-011-4........................... 165 (TOP).............. 1 165...................... 40 hrs., $3,031.60.... 6,600 hrs.,
$500,214.00.
EOP-011-4........................... 98 (BA)................ 1 98....................... 20 hrs., $1,515.80.... 1,960 hrs.,
$148,548.40.
EOP-011-4........................... 12 (RC)................ 1 12....................... 20 hrs., $1,515.80.... 240 hrs., $18,189.60.
EOP-011-4........................... 72 (UFLS-Only DP)...... 1 72....................... 40 hrs., $3,031.60.... 2,880 hrs.,
$218,275.20.
EOP-011-4........................... 300 (DP)............... 1 300...................... 40 hrs., $3,031.60.... 12,000 hrs.,
$909,480.00.
EOP-011-4........................... 324 (TO)............... 1 324...................... 40 hrs., $3,031.60.... 12,960 hrs.,
$982,238.40.
-------------------------------------------------------------------------------------------------------------------
Sub-total of EOP-011-4 (One ....................... .............. 971...................... ...................... 36,640 hrs.,
time). $2,776,945.60.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Annualized One-Time Costs (average ....................... .............. 323.67 (rounded)......... ...................... 12,213 hrs. (rounded),
cost per year is calculated by the $925,623.27.
sub-total divided by 3).
--------------------------------------------------------------------------------------------------------------------------------------------------------
Ongoing Estimate--Year 3 ongoing EOP-011-4
--------------------------------------------------------------------------------------------------------------------------------------------------------
EOP-011-4........................... 165 (TOP).............. 1 165...................... 20 hrs., $1,515.80.... 3,300 hrs.,
$250,107.00.
EOP-011-4........................... 98 (BA)................ 1 98....................... 4 hrs., $303.16....... 392 hrs., $29,709.68.
EOP-011-4........................... 12 (RC)................ 1 12....................... 4 hrs., $303.16....... 48 hrs., $3,637.92.
EOP-011-4........................... 72 (UFLS-Only DP)...... 1 72....................... 10 hrs., $757.90...... 720 hrs., $54,568.80.
EOP-011-4........................... 300 (DP)............... 1 300...................... 10 hrs., $757.90...... 3,000 hrs.,
$227,370.00.
EOP-011-4........................... 324 (TO)............... 1 324...................... 10 hrs., $757.90...... 3,240 hrs.,
$245,559.60.
-------------------------------------------------------------------------------------------------------------------
Sub-Total of EOP-011-4 (ongoing) ....................... .............. 971...................... ...................... 10,700, $810,953.00
Sub-Total of ongoing burden ....................... .............. 323.67 (rounded)......... ...................... 3,566.67 hrs.
averaged over three years. (rounded),
$270,317.92.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Proposed Total Annual Burden ....................... .............. 647.34................... ...................... 15,779.67 hrs.,
Estimate of EOP-011-4 (one-time $1,195,941.19
plus ongoing). (rounded).
--------------------------------------------------------------------------------------------------------------------------------------------------------
[[Page 13329]]
Table 2--Proposed Changes to FERC 725A Due to Modifications in Docket No. RD24-1-000
----------------------------------------------------------------------------------------------------------------
Type \50\ Total annual
and number Annual number Total number of Average burden & burden hours &
Requirement change of of responses responses cost per total annual
respondents per respondent response \51\ cost
(1) (2) (1) * (2) = (3).. (4)............. (3) * (4) = (5)
----------------------------------------------------------------------------------------------------------------
FERC-725A--Proposed estimates due to RD24-1
----------------------------------------------------------------------------------------------------------------
One Time Estimate--Years 1 and 2 in TOP-002-5
----------------------------------------------------------------------------------------------------------------
TOP-002-5.................... 98 (BA) 1 98............... 40 hrs., 3,920 hrs.,
$3,031.60. $297,096.80.
----------------------------------------------------------------------------------------------------------------
Ongoing Estimate--Year 3 ongoing TOP-002-5
----------------------------------------------------------------------------------------------------------------
TOP-002-5.................... 98 (BA) 1 98............... 20 hrs., 1,960 hrs.,
$1,515.80. $148,548.40.
----------------------------------------------------------------------------------
Sub-Total of One-Time ........... .............. 98............... 40 hrs., 3,920 hrs.,
estimate for years 1 and $3,031.60. $297,096.80.
2.
Sub-Total for Ongoing ........... .............. 98............... 20 hrs., 1,960 hrs.,
estimate of year 3 and $1,515.80. $148,548.40.
beyond.
----------------------------------------------------------------------------------------------------------------
Annualized one-time Total ........... .............. 32.67 (rounded).. 13.33 hrs. 1,306.67 hrs.,
burden for years 1 and 2 (rounded), $99,032.52
(one-time sub-total divided $1,010.28. (rounded).
by 3).
Annualized ongoing total ........... .............. 32.67 (rounded).. 6.67 hrs., 653.33 hrs.,
burden for years 3 and $505.52 $49,515.88
beyond (ongoing sub-total (rounded). (rounded).
divided by 3).
Annualized Total Burden ........... .............. 65.34............ 20 hrs., 1,960 hrs.,
Estimate of TOP-002-5. $1,515.80. $148,548.40.
----------------------------------------------------------------------------------------------------------------
Titles: FERC-725S (Mandatory Reliability Standards: Emergency
Preparedness and Operations (EOP) Reliability Standards)); FERC-725A
(Mandatory Reliability Standards for the Bulk-Power System).
---------------------------------------------------------------------------
\50\ BA = Balancing Authority.
\51\ The estimated hourly cost (salary plus benefits) is a
combination based on the Bureau of Labor Statistics (BLS), as of
2023, for 75% of the average of an Electrical Engineer (17-2071)-
$77.29, mechanical engineers (17-2141)-$87.38. $77.29 + $87.38/2 =
82.335 x .75 = 54.303 ($61.75 rounded) ($61.75/hour) and 25% of an
Information and Record Clerk (43-4199) $56.14 x .25% = 14.035
($14.04 rounded) ($14.04/hour), for a total ($61.75+$14.04 = $75.79/
hour).
---------------------------------------------------------------------------
Action: Revision to Existing Collections of Information in FERC-
725S and FERC-725A.
OMB Control Nos: 1902-0270 (FERC 725S); 1902-0244 (FERC-725A).
Respondents: Business or other for profit, and not for profit
institutions.
Frequency of Responses: Annually.
Necessity of the Information: Reliability Standards EOP-011-4
(Emergency Operations) and TOP-002-5 (Operations Planning) are 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.
Specifically, the revised Reliability Standard EOP-011-4 addresses the
effects of operating emergencies by ensuring that each transmission
operator and balancing authority has developed plan(s) to mitigate
operating emergencies and that those plans are implemented and
coordinated within the reliability coordinator area. Further, revised
Reliability Standard TOP-002-5 ensures that transmission operators and
balancing authorities have plans for operating within specified limits.
Internal review: The Commission has reviewed the revised
Reliability Standards and made a determination that its action is
necessary to implement section 215 of the FPA. The Commission has
assured itself, by means of its internal review, that there is
specific, objective support for the burden estimates associated with
the information requirements.
a. Description of the Revision to FERC-725S: The FERC-725S (OMB
Control No. 1902-0270) is an existing information collection that
contains the requirements for the EOP-011-3 Reliability Standard. As
described in the Docket No. RD24-1-000 above, the Reliability Standard
(EOP-011-3) is proposed to be retired and replaced by EOP-011-4.
b. Description of the Revision to FERC-725A: The FERC-725A (OMB
Control No. 1902-0244) is an existing information collection that
contains the requirements for the TOP-002-4 Reliability Standard.\52\
As described in Docket No. RD24-1-000 above, Reliability Standard TOP-
002-4 is approved to be retired and replaced by TOP-002-5.
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\52\ This collection is currently pending at OMB for an
unrelated matter.
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31. 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: Jean Sonneman, email: [email protected], phone:
(202) 502-8663, fax: (202) 273-0873].
32. Comments concerning the information collections and
requirements approved for retirement in this order and the associated
burden estimates, should be sent to the Commission (identified by
Docket No. RD24-1-000), using the following methods: Electronic filing
through https://www.ferc.gov is preferred. Electronic Filing should be
filed in acceptable native applications and print-to-PDF, but not in
scanned or picture format. For those unable to file electronically,
comments may be filed by USPS mail or by hand (including courier)
delivery: Mail via U.S. Postal Service Only: Addressed to: Federal
Energy Regulatory Commission, Secretary of the Commission, 888 First
Street NE, Washington, DC 20426. Hand (including courier) delivery:
Deliver to: Federal Energy Regulatory Commission, 12225 Wilkins Avenue,
Rockville, MD 20852.
V. Environmental Analysis
33. 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.\53\ The
Commission has categorically excluded certain actions from this
requirement as not having a significant effect on the human
environment. Included in the exclusion
[[Page 13330]]
are rules that are clarifying, corrective, or procedural or that do not
substantially change the effect of the regulations being amended.\54\
The actions directed herein fall within this categorical exclusion in
the Commission's regulations.
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\53\ Reguls. Implementing the Nat'l Env't Pol'y Act, Order No.
486, FERC Stats. & Regs. ] 30,783 (1987) (cross-referenced at 41
FERC ] 61,284).
\54\ 18 CFR 380.4(a)(2)(ii) (2023).
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VI. Document Availability
34. 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).
35. From the Commission's Home Page on the internet, this
information is available on eLibrary. The full text of this document is
available on eLibrary in PDF and Microsoft Word format for viewing,
printing, and/or downloading. To access this document in eLibrary, type
the docket number excluding the last three digits of this document in
the docket number field.
36. User assistance is available for eLibrary and the Commission's
website during normal business hours from the Commission's Online
Support at (202) 502-6652 (toll free at 1-866-208-3676) or email at
[email protected], or the Public Reference Room at (202) 502-
8371, TTY (202) 502-8659. Email the Public Reference Room at
[email protected].
The Commission orders:
(A) Reliability Standards EOP-011-4 and TOP-002-5 and their
associated violation risk factors and violation severity levels are
hereby approved, as discussed in the body of this order.
(B) The decision on whether to approve or modify NERC's proposed
implementation date for Reliability Standard EOP-011-4 (and the
proposed retirement of Reliability Standard EOP-011-2 and EOP-011-3) is
hereby deferred until NERC submits its revised applicability section
for Reliability Standard EOP-012-2.
By the Commission. Commissioner Clements is concurring with a
separate statement attached.
Issued: February 15, 2024.
Debbie-Anne A. Reese,
Acting Secretary.
United States of America
Federal Energy Regulatory Commission
North American Electric Reliability Corporation
Docket No. RD24-1-000
(Issued February 14, 2024)
CLEMENTS, Commissioner, concurring:
1. While I am voting with my colleagues to approve these revised
Reliability Standards, I am writing separately to express my concern
with the delayed implementation timeline for EOP-011-4.
2. Today's order highlights ``the importance of these revised
Reliability Standards to maintaining the reliable operation of the
Bulk-Power System.'' \1\ But this stated importance is undercut by the
extended time granted to affected Registered Entities to implement the
new requirements. Specifically, NERC proposed that EOP-011-4 become
effective on the first day of the first calendar quarter that is six
months following regulatory approval,\2\ and then for each affected
Registered Entity to have at least 30 months after this effective date
to comply with the new and revised provisions of the requirement.\3\
Under the best of scenarios, this would mean that these new and revised
provisions would be implemented no sooner than April 1, 2027--three
years, and crucially, three winters from today.\4\
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\1\ Order, 186 FERC ] 61,115, at P 20 (2024).
\2\ By my calculation, this would mean October 1, 2024.
\3\ NERC, Petition, Docket No. RD24-1-000, Exhibit B
``Implementation Plan'' at 3 (filed Oct. 30, 2023).
\4\ However, as discussed in the draft order, the actual
effective date and implementation plan for EOP-011-4 hinges on
NERC's upcoming submission, and Commission approval, of a revised
applicability section for EOP-012. If the Commission was to reject
the revised applicability section of EOP-012, it is unclear to me
when we can expect the requirements to EOP-011-4 (and the preceding,
but also yet to be effective, EOP-011-3) to be implemented.
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3. Three years after regulatory approval to implement changes to a
Reliability Standard is an awfully long time. By the time these
standards are implemented, recent experience has taught us that we are
likely to face one or more dangerous winter storms. As with Uri in
February 2021, Elliott in December 2022, and Gerri/Heather in January
2024, widespread, long duration winter storms that threaten the
reliability of our system are no longer rare events, but rather nearly
annual occurrences.
4. I appreciate that NERC has continually worked with its
stakeholders to advance improved Reliability Standards for cold weather
operations and preparedness following Winter Storm Uri and the
subsequent Staff Report.\5\ I also recognize that the 30-month
implementation timeframe is responsive to some stakeholders' concerns
about the potential time needed to implement any physical changes
necessary to comply with the requirements of the revised standard.
However, considering the urgency of the winter storm risk that faces
our system, this is not the first time that I have been left wondering
if our processes for drafting and implementing needed Reliability
Standards, whether they be cold weather standards or cybersecurity
standards, are too slow to keep up with needed change.\6\
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\5\ See FERC, NERC, and Regional Entity Staff, The February 2021
Cold Weather Outages in Texas and the South Central United States,
19 (Nov. 16, 2021) (November 2021 Report), https://www.ferc.gov/media/february-2021-cold-weather-outages-texas-and-south-central-united-states-ferc-nerc-and.
\6\ See, e.g., Transcript of the 1097th Meeting, FERC, at 21
(Jan. 19, 2023), https://www.ferc.gov/media/transcript-january-2023-commission-meeting (``I'm very pleased that we are directing a firm
15-month deadline for NERC to propose the standards. . . . The
processes take time, but it is imperative that we get this important
cybersecurity measure in place as quickly as it is feasible.'');
Transcript of the 1098th Meeting, FERC, at 23-24 (Feb. 16, 2023),
https://www.ferc.gov/media/transcript-february-2023-commission-meeting (``[T]he critical generator weatherization requirements as
proposed are, to be frank, not up to the task. The proposal before
us requires existing generators to weatherize so they are capable of
operating for one hour at extreme cold temperatures beginning in
April of 2027. . . . [W]aiting [for] four additional winters before
weatherization requirements actually kick in does not reflect the
urgency we feel.'').
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For these reasons, I respectfully concur.
Allison Clements,
Commissioner.
[FR Doc. 2024-03608 Filed 2-21-24; 8:45 am]
BILLING CODE 6717-01-P