NERC Petition [without Exhibits]

UNITED STATES OF AMERICA
BEFORE THE
FEDERAL ENERGY REGULATORY COMMISSION

NORTH AMERICAN ELECTRIC
RELIABILITY CORPORATION

)
)

Docket No. _____

PETITION OF THE
NORTH AMERICAN ELECTRIC RELIABILITY CORPORATION
FOR APPROVAL OF PROPOSED RELIABILITY STANDARDS FOR FACILITY
CONNECTION REQUIREMENTS
FAC-001-2 AND FAC-002-2

Gerald W. Cauley
President and Chief Executive Officer
North American Electric Reliability Corporation
3353 Peachtree Road, N.E.
Suite 600, North Tower
Atlanta, GA 30326
(404) 446-2560
(404) 446-2595– facsimile

Charles A. Berardesco
Senior Vice President and General Counsel
Holly A. Hawkins
Associate General Counsel
Stacey Tyrewala
Senior Counsel
North American Electric Reliability Corporation
1325 G Street, N.W., Suite 600
Washington, D.C. 20005
(202) 400-3000
(202) 644-8099– facsimile
charlie.berardesco@nerc.net
holly.hawkins@nerc.net
stacey.tyrewala@nerc.net
Counsel for the North American Electric
Reliability Corporation

August 22, 2014

TABLE OF CONTENTS

I.

EXECUTIVE SUMMARY ..................................................................................................... 3

II. NOTICES AND COMMUNICATIONS................................................................................. 4
A. Regulatory Framework ........................................................................................................ 5
B. NERC Reliability Standards Development Process ............................................................ 6
C. History of Project 2010-02: Connecting New Facilities to the Grid .................................. 7
III.

JUSTIFICATION FOR APPROVAL ................................................................................. 7

A. Reliability Standard FAC-001-2 – Facility Interconnection Requirements ........................ 7
1. Procedural Background .................................................................................................... 8
2. Requirement-by-Requirement Justification ..................................................................... 8
B. Reliability Standard FAC-002-2 –Facility Interconnection Studies .................................. 11
1. Procedural Background .................................................................................................. 12
2. Requirement-by-Requirement Justification ................................................................... 12
3. Commission Directives Addressed ................................................................................ 15
C. Enforceability of Proposed Reliability Standards FAC-001-2 and FAC-002-2 ................ 15
IV. CONCLUSION ..................................................................................................................... 17

Exhibit A

Proposed Reliability Standards, FAC-001-2 and FAC-002-2

Exhibit B

Implementation Plan

Exhibit C

Order No. 672 Criteria for FAC-001-2 and FAC-002-2

Exhibit D

Mapping Document

Exhibit E

Analysis of Violation Risk Factors and Violation Severity Levels

Exhibit F

Consideration of Issues and Directives

Exhibit G

Summary of Development History and Complete Record of Development

Exhibit H

Standard Drafting Team Roster for Project 2008-12, Connecting New Facilities to
the Grid

i

UNITED STATES OF AMERICA
BEFORE THE
FEDERAL ENERGY REGULATORY COMMISSION
North American Electric Reliability
Corporation

)
)

Docket No. _______

PETITION OF THE
NORTH AMERICAN ELECTRIC RELIABILITY CORPORATION
FOR APPROVAL OF PROPOSED RELIABILITY STANDARDS
FOR FACILITY CONNECTION REQUIREMENTS
FAC-001-2 AND FAC-002-2
Pursuant to Section 215(d)(1) of the Federal Power Act (“FPA”)1 and Section 39.52 of the
Federal Energy Regulatory Commission’s (“FERC” or “Commission”) regulations, the North
American Electric Reliability Corporation (“NERC”)3 hereby submits proposed Reliability
Standards FAC-001-2 and FAC-002-2 for Commission approval. NERC requests that the
Commission approve the proposed Reliability Standards (Exhibit A) and find that the proposed
Reliability Standards are just, reasonable, not unduly discriminatory or preferential, and in the
public interest.4 NERC also requests approval of the associated implementation plan (Exhibit
B), Violation Risk Factors (“VRFs”) and Violation Severity Levels (“VSLs”) (Exhibit E), as
detailed in this petition.
As required by Section 39.5(a)5 of the Commission’s regulations, this petition presents
the technical basis and purpose of proposed Reliability Standards FAC-001-2 and FAC-002-2, a

1

16 U.S.C. § 824o (2012).
18 C.F.R. § 39.5 (2014).
3
The Commission certified NERC as the electric reliability organization (“ERO”) in accordance with
Section 215 of the FPA on July 20, 2006. N. Am. Elec. Reliability Corp., 116 FERC ¶ 61,062 (2006) (“ERO
Certification Order”).
4
Unless otherwise designated, all capitalized terms shall have the meaning set forth in the Glossary of Terms
Used in NERC Reliability Standards, available at http://www.nerc.com/files/Glossary_of_Terms.pdf. Throughout
the proposed FAC-001-2 and FAC-002-2 Reliability Standards, the lowercase term “interconnection” is deliberately
used and does not refer to the defined term “Interconnection” in the Glossary of Terms Used in NERC Reliability
Standards.
5
18 C.F.R. § 39.5(a) (2014).
2

2

demonstration that the proposed Reliability Standards meet the criteria identified by the
Commission in Order No. 6726 (Exhibit C) and a summary of the development history (Exhibit
G). Proposed Reliability Standards FAC-001-2 and FAC-002-2 were approved by the NERC
Board of Trustees on August 14, 2014.
I.

EXECUTIVE SUMMARY
The Facility Design, Connections, and Maintenance (“FAC”) Reliability Standards

address topics such as facility interconnection requirements, facility ratings, system operating
limits, and transfer capabilities. The FAC Reliability Standards also establish requirements for
maintaining equipment and rights-of-way, including vegetation management. Proposed
Reliability Standard FAC-001-2 requires that Transmission Owners and applicable Generator
Owners document and make Facility interconnection requirements available so that entities
seeking to interconnect have the necessary information. Proposed Reliability Standard FAC002-2 ensures that the reliability impact of interconnecting new or materially modified Facilities
is studied. Collectively, proposed Reliability Standards FAC-001-2 and FAC-002-2 ensure that
there is appropriate coordination and communication regarding the interconnection of Facilities,
which improves the reliability of the Bulk-Power System. These reliability objectives are also
consistent with Commission precedent regarding the need for standardized procedures for
interconnecting generators.7

6

The Commission specified in Order No. 672 certain general factors it would consider when assessing
whether a particular Reliability Standard is just and reasonable. See Rules Concerning Certification of the Electric
Reliability Organization; and Procedures for the Establishment, Approval, and Enforcement of Electric Reliability
Standards, Order No. 672, FERC Stats. & Regs. ¶ 31,204, at P 262, 321-37, order on reh’g, Order No. 672-A,
FERC Stats. & Regs. ¶ 31,212 (2006).
7
See Standardization of Generator Interconnection Agreements and Procedures, Order No. 2003, FERC
Stats. & Regs. ¶ 31,146 (2003), order on reh'g, Order 2003-A, FERC Stats. & Regs. ¶ 31,160 (2004), order on
reh'g, Order No. 2003-B, FERC Stats. & Regs. ¶ 31,171 (2004), order on reh'g, Order No. 2003-C, FERC Stats. &
Regs. ¶ 31,190 (2005), affirmed sub. nom. Nat'l Ass‘n of Regulatory Util. Comm'rs v. FERC, 475 F.3d 1277 (D.C.
Cir. 2007).

3

The proposed revisions to Reliability Standards FAC-001-2 and FAC-002-2 are
consistent with the principles of Paragraph 81, which involve the examination for duplication
across the NERC body of Reliability Standards and the technical basis and necessity for each and
every requirement.8 For example, revisions are proposed to Requirement R1 of Reliability
Standard FAC-001-2 to eliminate redundancies with FAC-002-2 and to clarify the actions
required. The proposed revisions are designed to maintain the existing reliability goals, while
providing responsible entities with flexibility regarding how they fulfill the actions required.
NERC requests that the Commission approve proposed Reliability Standards FAC-001-2
and FAC-002-2 and find that the proposed standards are just, reasonable, not unduly
discriminatory or preferential, and in the public interest.
II.

NOTICES AND COMMUNICATIONS
Notices and communications with respect to this filing may be addressed to the

following:9

8

See Electric Reliability Organization Proposal to Retire Requirements in Reliability Standards, Order No.
788, 145 FERC ¶ 61,147 (2013).
9
Persons to be included on the Commission’s service list are identified by an asterisk. NERC respectfully
requests a waiver of Rule 203 of the Commission’s regulations, 18 C.F.R. § 385.203 (2013), to allow the inclusion
of more than two persons on the service list in this proceeding.

4

Charles A. Berardesco*
Senior Vice President and General Counsel
Holly A. Hawkins*
Associate General Counsel
Stacey Tyrewala*
Senior Counsel
North American Electric Reliability Corporation
1325 G Street, N.W., Suite 600
Washington, D.C. 20005
(202) 400-3000
(202) 644-8099 – facsimile
charlie.berardesco@nerc.net
holly.hawkins@nerc.net
stacey.tyrewala@nerc.net
A.

Valerie Agnew*
Director of Standards
Laura Hussey*
Director of Standards Development
North American Electric Reliability Corporation
3353 Peachtree Road, N.E.
Suite 600, North Tower
Atlanta, GA 30326
(404) 446-2560
(404) 446-2595 – facsimile
valerie.agnew@nerc.net
laura.hussey@nerc.net

Regulatory Framework

By enacting the Energy Policy Act of 2005,10 Congress entrusted the Commission with
the duties of approving and enforcing rules to ensure the reliability of the Nation’s Bulk-Power
System, and with the duties of certifying an Electric Reliability Organization (“ERO”) that
would be charged with developing and enforcing mandatory Reliability Standards, subject to
Commission approval. Section 215(b)(1)11 of the FPA states that all users, owners, and
operators of the Bulk-Power System in the United States will be subject to Commissionapproved Reliability Standards. Section 215(d)(5)12 of the FPA authorizes the Commission to
order the ERO to submit a new or modified Reliability Standard. Section 39.5(a)13 of the
Commission’s regulations requires the ERO to file with the Commission for its approval each
Reliability Standard that the ERO proposes should become mandatory and enforceable in the
United States, and each modification to a Reliability Standard that the ERO proposes should be
made effective.

10
11
12
13

16 U.S.C. § 824o (2006).
Id. § 824o(b)(1).
Id. § 824o(d)(5).
18 C.F.R. § 39.5(a) (2014).

5

The Commission has the regulatory responsibility to approve Reliability Standards that
protect the reliability of the Bulk-Power System and to ensure that such Reliability Standards are
just, reasonable, not unduly discriminatory or preferential, and in the public interest. Pursuant to
Section 215(d)(2) of the FPA14 and Section 39.5(c)15 of the Commission’s regulations, the
Commission will give due weight to the technical expertise of the ERO with respect to the
content of a Reliability Standard.
B.

NERC Reliability Standards Development Process

The proposed Reliability Standards were developed in an open and fair manner and in
accordance with the Commission-approved Reliability Standard development process.16 NERC
develops Reliability Standards in accordance with Section 300 (“Reliability Standards
Development”) of its Rules of Procedure and the NERC Standard Processes Manual.17 In its
ERO Certification Order, the Commission found that NERC’s proposed rules provide for
reasonable notice and opportunity for public comment, due process, openness, and a balance of
interests in developing Reliability Standards and thus satisfies certain of the criteria for
approving Reliability Standards.18 The development process is open to any person or entity with
a legitimate interest in the reliability of the Bulk-Power System. NERC considers the comments
of all stakeholders, and a vote of stakeholders and the NERC Board of Trustees is required to
approve a Reliability Standard before the Reliability Standard is submitted to the Commission
for approval.

14

16 U.S.C. § 824o(d)(2) (2006).
18 C.F.R. § 39.5(c)(1) (2012).
16
Rules Concerning Certification of the Electric Reliability Organization; and Procedures for the
Establishment, Approval, and Enforcement of Electric Reliability Standards, Order No. 672, FERC Stats. & Regs. ¶
31,204, order on reh’g, Order No. 672-A, FERC Stats. & Regs. ¶ 31,212 (2006).
17
The NERC Rules of Procedure are available at http://www.nerc.com/AboutNERC/Pages/Rules-ofProcedure.aspx. The NERC Standard Processes Manual is available at
http://www.nerc.com/comm/SC/Documents/Appendix_3A_StandardsProcessesManual.pdf.
18
116 FERC ¶ 61,062 at P 250 (2006).
15

6

C.

History of Project 2010-02: Connecting New Facilities to the Grid

The NERC Standard Processes Manual requires NERC to conduct periodic reviews of
Reliability Standards19 and consistent with this requirement, a periodic review was conducted of
the Facilities Design, Connections, and Maintenance (“FAC”) body of Reliability Standards.
The NERC Standards Committee appointed six industry experts to serve on the FAC
five-year review team on April 22, 2013. The review team recommended revisions to Reliability
Standards FAC-001-1 and FAC-002-1 and affirmed FAC-003-3, FAC-008-3 and FAC-013-2.20
A Standards Authorization Request was then initiated to revise Reliability Standards FAC-001-1
and FAC-002-1 and a standard drafting team was appointed.
III.

JUSTIFICATION FOR APPROVAL
As discussed in detail in Exhibit C, proposed Reliability Standards FAC-001-2 and

FAC-002-2 satisfy the Commission’s criteria in Order No. 672 and are just, reasonable, not
unduly discriminatory or preferential, and in the public interest. Provided below is the
following: (A) a description of each proposed Reliability Standard and discussion of how
applicable Commission directives are satisfied; and (B) justification for the proposed Reliability
Standards on a Requirement-by-Requirement basis.
A.

Reliability Standard FAC-001-2 – Facility Interconnection Requirements

The purpose of FAC-001 is to avoid adverse impacts on the reliability of the Bulk
Electric System by requiring Transmission Owners and applicable Generator Owners to

19
Section 13.0 of the NERC Standard Processes Manual provides: “All Reliability Standards shall be
reviewed at least once every ten years from the effective date of the Reliability Standard or the date of the latest
Board of Trustees adoption to a revision of the Reliability Standard, whichever is later.”
20
The review team also recommended to delay the review of Reliability Standards FAC-010-2.1, FAC-011-2,
and FAC-014-2. WECC separately reviewed and affirmed regional Reliability Standard FAC-501-WECC-1.

7

document Facility interconnection requirements and to make them available so that entities
seeking to interconnect will have the necessary information.
1.

Procedural Background

Reliability Standard FAC-001-0 was accepted by the Commission in Order No. 693.21 In
order to expand its applicability to Generator Owners and to modernize the formatting of FAC001-0, FAC-001-1 was developed by NERC and was approved by the Commission on
September 19, 2013,22 with an effective implementation date for Transmission Owners on
November 25, 2013 and for Generation Owners on January 1, 2015.
2.

Requirement-by-Requirement Justification

Proposed Reliability Standard FAC-001-2—Facility Interconnection Requirements
consists of four requirements and is applicable to Transmission Owners and Generator Owners
with a fully executed Agreement to conduct a study on the reliability impact of interconnecting a
third party Facility to the Generator Owner’s existing Facility that is used to interconnect to the
Transmission System (i.e., an applicable Generator Owner). Proposed Requirements R1 and R3
apply to Transmission Owners, and proposed Requirements R2 and R4 apply to applicable
Generator Owners. Proposed Requirements R2 and R4 are identical, except for its applicability.
Proposed FAC-001-2, Requirement R1
R1. Each Transmission Owner shall document Facility interconnection
requirements, update them as needed, and make them available upon request. Each
Transmission Owner’s Facility interconnection requirements shall address
interconnection requirements for:
1.1. generation Facilities;
1.2. transmission Facilities; and
1.3. end-user Facilities

21
22

Order No. 693 at P 680.
Order No. 785 at P 19.

8

Proposed Requirement R1 of FAC-001-2 requires Transmission Owners to document
Facility interconnection requirements, to update them, and to provide them upon request. This
requirement is substantively unchanged from the currently-effective Requirement R1 of FAC001-1, which requires Transmission Owners to document, maintain and publish Facility
connection requirements. The proposed changes are intended to clarify the actions required and
are designed to achieve the same reliability goals, while providing responsible entities with
flexibility regarding how they fulfill the actions required.
Proposed FAC-001-2, Requirement R2
R2. Each applicable Generator Owner shall document Facility interconnection
requirements and make them available upon request within 45 calendar days of full
execution of an Agreement to conduct a study on the reliability impact of
interconnecting a third party Facility to the Generator Owner’s existing Facility
that is used to interconnect to the Transmission system.
Proposed Requirement R2 of FAC-001-2 requires applicable Generator Owners with a
fully executed Agreement to conduct a study on the reliability impact of interconnecting a third
party Facility to the Generator Owner’s existing Facility to document Facility interconnection
requirements and to make them available upon request within 45 calendar days of full execution.
This requirement is substantively identical to Requirement R2 of currently-effective Reliability
Standard FAC-001-1. For example, the publishing of interconnection requirements has been
replaced with the requirement to make interconnection requirements available upon request.
This proposed change is designed to achieve the same reliability goal of ensuring that Facility
interconnection requirements are public and available in a manner that provides more flexibility
to entities regarding how to maintain (such as on a website) or provide such information.

9

Proposed FAC-001-2, Requirement R3
R3. Each Transmission Owner shall address the following items in its
Facility interconnection requirements:
3.1. Procedures for coordinated studies of new or materially modified
existing interconnections and their impacts on affected system(s).
3.2. Procedures for notifying those responsible for the reliability of
affected system(s) of new or materially modified existing
interconnections.
Proposed Requirement R3 is applicable to Transmission Owners and requires
Transmission Owners to include procedures for coordination and communication regarding new
or materially modified existing interconnections.
The currently-effective Requirement R3 of FAC-001-1 requires entities to include
additional elements in their interconnection procedures, such as breaker duty and surge
protection, system protection and coordination, etc. These elements have been moved to the
Guideline and Technical Basis section of the standard as some items included in Parts 3.1.3
through 3.1.16 are not applicable to all entities and this is not an exhaustive list. This proposed
change is designed to provide entities with the flexibility to determine which Facility
interconnection requirements are technically appropriate for their respective Facilities. The
information included in the Guideline and Technical Basis section can be used as a starting point
for each Transmission Owner to consider in the development of Facility interconnection
requirements. The proposed changes to Requirement R3 are designed to achieve the same
reliability goal of ensuring that entities specify their procedures for coordination and
communication in their interconnection requirements, while providing entities with flexibility.

10

Proposed FAC-001-2, Requirement R4
R4. Each applicable Generator Owner shall address the following items in its
Facility interconnection requirements:
4.1. Procedures for coordinated studies of new interconnections and
their impacts on affected system(s).
4.2. Procedures for notifying those responsible for the reliability of
affected system(s) of new interconnections.
Proposed Requirement R4 of FAC-001-2 applies to applicable Generator Owners and
requires Generator Owners to include procedures for coordination and communication regarding
new or materially modified existing interconnections. Proposed Requirement R4 is identical to
proposed Requirement R3 except for its applicability, and as such, the justification for
Requirement R3 of FAC-001-2 applies with due weight to Requirement R4.
B.

Reliability Standard FAC-002-2 –Facility Interconnection Studies

The purpose of FAC-002 is to study the impact of interconnecting new or materially
modified Facilities on the Bulk Electric System. Proposed Reliability Standard FAC-002-2
consists of five requirements and is applicable to: Planning Coordinators; Transmission Planners;
Transmission Owners; Distribution Providers; Generator Owners; applicable Generator Owners;
and Load-Serving Entities. Applicable Generator Owners are Generator Owners with a fully
executed Agreement to conduct a study on the reliability impact of interconnecting a third party
Facility to the Generator Owner’s existing Facility that is used to interconnect to the
Transmission System. Proposed Requirement R5 applies to “applicable Generator Owners.”
The currently-effective Reliability Standards FAC-002-1 consists of one requirement
with five Parts. The proposed Reliability Standard FAC-002-2 consists of five requirements
which clarifies the actions required of the applicable entities.

11

1.

Procedural Background

Reliability Standard FAC-002-0 was accepted by the Commission in Order No. 693.23 In
response to a Commission directive in Order No. 693, the FAC-002-0 Reliability Standard was
modified, and these modifications were accepted as FAC-002-1 in an order issued on January 10,
2011.24 Requirement R2 of FAC-002-1 was approved for retirement by the Commission on
November 21, 2013.25
2.

Requirement-by-Requirement Justification

Proposed Requirement R1 requires Transmission Planners and Planning Coordinators to
study the reliability impact of certain interconnections and sets forth a minimum criteria to be
evaluated in Parts 1.1 through 1.4. Proposed Requirements R2 through R5 require the applicable
entities to coordinate and cooperate in these studies and to provide the data described in Parts 1.1
through 1.4 of Requirement R1.

Proposed FAC-002-2, Requirement R1
R1. Each Transmission Planner and each Planning Coordinator shall study the
reliability impact of: (i) interconnecting new generation, transmission, or
electricity end-user Facilities and (ii) materially modifying existing
interconnections of generation, transmission, or electricity end-user
Facilities. The following shall be studied:
1.1. The reliability impact of the new interconnection, or materially modified
existing interconnection, on affected system(s);
1.2. Adherence to applicable NERC Reliability Standards; regional and
Transmission Owner planning criteria; and Facility interconnection
requirements;
1.3. Steady-state, short-circuit, and dynamics studies, as necessary, to
evaluate system performance under both normal and contingency
conditions; and

23

Order No. 693 at P 693.
North American Electric Reliability Corp., 134 FERC ¶ 61,015 (2011).
25
See Electric Reliability Organization Proposal to Retire Requirements in Reliability Standards, Order No.
788, 145 FERC ¶ 61,147 (2013).
24

12

1.4. Study assumptions, system performance, alternatives considered, and
coordinated recommendations. While these studies may be performed
independently, the results shall be evaluated and coordinated by the
entities involved.
Proposed Requirement R1 is applicable to Transmission Planners and Planning
Coordinators and requires the study of the reliability impact of interconnecting new Facilities.
Parts 1.1 through 1.4 specify a minimum set of considerations that must be studied.
Proposed FAC-002-2, Requirement R2
R2.

Each Generator Owner seeking to interconnect new generation Facilities, or
to materially modify existing interconnections of generation Facilities, shall
coordinate and cooperate on studies with its Transmission Planner or
Planning Coordinator, including but not limited to the provision of data as
described in R1, Parts 1.1-1.4.

Proposed Requirement R2 is applicable to Generator Owners and requires coordination
and cooperation on studies with their Transmission Planner or Planning Coordinator when
Generator Owners are seeking to interconnect new generation Facilities or to materially modify
existing interconnections. Generator Owners must also provide, at a minimum, the data in Parts
1.1 through 1.4 of Requirement R1 of FAC-002-2.

Proposed FAC-002-2, Requirement R3
R3.

Each Transmission Owner, each Distribution Provider, and each LoadServing Entity seeking to interconnect new transmission Facilities or
electricity end-user Facilities, or to materially modify existing
interconnections of transmission Facilities or electricity end-user Facilities,
shall coordinate and cooperate on studies with its Transmission Planner or
Planning Coordinator, including but not limited to the provision of data as
described in R1, Parts 1.1-1.4.

Proposed Requirement R3 is applicable to Transmission Owners, Distribution Providers
and Load Serving Entities and requires coordination and cooperation on studies with their
Transmission Planner or Planning Coordinator when Transmission Owners, Distribution

13

Providers and Load-Serving Entities are seeking to interconnect new transmission Facilities or to
materially modify existing interconnections or end-user Facilities. Transmission Owners,
Distribution Providers and Load-Serving Entities must also provide, at a minimum, the data in
Parts 1.1 through 1.4 of Requirement R1 of FAC-002-2.

Proposed FAC-002-2, Requirement R4
R4.

Each Transmission Owner shall coordinate and cooperate with its
Transmission Planner or Planning Coordinator on studies regarding
requested new or materially modified interconnections to its Facilities,
including but not limited to the provision of data as described in R1, Parts
1.1-1.4.

Proposed Requirement R4 is applicable to Transmission Owners and requires
coordination and cooperation regarding studies for new or materially modified interconnections
to their Facilities. Transmission Owners must also provide, at a minimum, the data in Parts 1.1
through 1.4 of Requirement R1 of FAC-002-2.

Proposed FAC-002-2, Requirement R5
R5.

Each applicable Generator Owner shall coordinate and cooperate with its
Transmission Planner or Planning Coordinator on studies regarding
requested interconnections to its Facilities, including but not limited to the
provision of data as described in R1, Parts 1.1-1.4.

Proposed Requirement R5 is applicable to Generator Owners and is parallel to
Requirement R4. Proposed Requirement R5 requires Generator Owners to coordinate and
cooperate regarding studies for new or materially modified interconnections to their Facilities.
Generator Owners must also provide, at a minimum, the data in Parts 1.1 through 1.4 of
Requirement R1 of FAC-002-2.

14

3.

Commission Directives Addressed

In Order No. 693, the Commission directed NERC to consider a suggestion to include a
reference to Reliability Standard TPL-004-0 in FAC-002.26 The drafting team considered this
suggestion and did not incorporate such a reference for several reasons. Reliability Standard
TPL-004-0 has been superseded by Reliability Standard TPL-001-04. Further, the drafting team
removed references to the TPL Reliability Standards to eliminate redundancy with Reliability
Standard FAC-002-2, Requirement R1, Part 1.2, which requires entities to study adherence with
all NERC Reliability Standards.
In Order No. 693, the Commission also directed NERC to consider the comments of
various entities regarding suggestions to improve the wording and organization of Reliability
Standard FAC-002-0. The drafting team considered these suggestions and this information is
included in Exhibit F.
C.

Enforceability of Proposed Reliability Standards FAC-001-2 and FAC-002-2

The proposed Reliability Standards include Violation Risk Factors (“VRFs”) and
Violation Severity Levels (“VSLs”). The VSLs provide guidance on the way that NERC will
enforce the Requirements of the proposed Reliability Standards. The VRFs are one of several
elements used to determine an appropriate sanction when the associated Requirement is violated.
The VRFs assess the impact to reliability of violating a specific Requirement. The VRFs and
VSLs for the proposed Reliability Standards comport with NERC and Commission guidelines
related to their assignment. For a detailed review of the VRFs, the VSLs, and the analysis of
how the VRFs and VSLs were determined using these guidelines, please see Exhibit E.

26

Order No. 693 at P 692.

15

The proposed Reliability Standards also include Measures that support each Requirement
by clearly identifying what is required and how the Requirement will be enforced. These
Measures help ensure that the Requirements will be enforced in a clear, consistent, and nonpreferential manner and without prejudice to any party.27

27

Order No. 672 at P 327 (“There should be a clear criterion or measure of whether an entity is in compliance
with a proposed Reliability Standard. It should contain or be accompanied by an objective measure of compliance
so that it can be enforced and so that enforcement can be applied in a consistent and non-preferential manner.”).

16

IV.

CONCLUSION
For the reasons set forth above, NERC respectfully requests that the Commission:
•

approve the proposed Reliability Standards and associated elements included in Exhibit
A, effective as proposed herein;

•

approve the implementation plan included in Exhibit B as proposed herein.
Respectfully submitted,
/s/ Stacey Tyrewala
Charles A. Berardesco
Senior Vice President and General Counsel
Holly A. Hawkins
Associate General Counsel
Stacey Tyrewala
Senior Counsel
North American Electric Reliability
Corporation
1325 G Street, N.W., Suite 600
Washington, D.C. 20005
(202) 400-3000
(202) 644-8099 – facsimile
charlie.berardesco@nerc.net
holly.hawkins@nerc.net
stacey.tyrewala@nerc.net
Counsel for the North American Electric
Reliability Corporation

Date: August 22, 2014

17