FERC: North American Electric Reliability Corporation; Order Approving Extreme Cold Weather Reliability Standards and Directing Modification of Reliability Standard (Part 2 of 3)

WASHINGTON, March 11 -- The Federal Energy Regulatory Commission has issued a notice, published in the Federal Register on March 10, 2023, entitled "North American Electric Reliability Corporation; Order Approving Extreme Cold Weather Reliability Standards EOP-011-3 and EOP-012-1 and Directing Modification of Reliability Standard EOP-012-1."

Here are excerpts:

(Continued from Part 1 of 3)

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3. The Allowance of Exceptions for Generator Owner-Defined Technical, Commercial, or Operational Constraints

a. NERC Petition

61. Requirement R1 of EOP-012-1 requires a generator owner to either implement freeze protection measures on its existing units that provide capability to operate for a period of not less than 12 continuous hours at the Extreme Cold Weather Temperature for the unit or "[e]xplain in a declaration any technical, commercial, or operational constraints that preclude the ability" to comply with the requirement.[95] Similarly, Requirement R7 mandates that a generator owner implement each corrective action plan developed pursuant to Requirements R2, R4, or R6 "or explain in a declaration why corrective actions are not being implemented due to any technical, commercial, or operational constraint as defined by the Generator Owner."[96]

b. Comments

62. Several commenters assert that the Requirements R1 and R7 in Reliability Standard EOP-012-1 could benefit from increased clarity. EPSA/PJM Group, NEPGA, and the ISO/RTO Council assert that the generator owner declaration of constraints outlined in Requirement R1 and Requirement R7 are overly broad and that there is no explanation of what technical, commercial, or operational constraints would be permissible for generator owners to avoid both the implementation of freeze protection measures and a corrective action plan.[97] Specifically, EPSA/PJM Group contend that the broad discretion towards generator owners to identify constraints in Requirements R1 and R7 may lead to generator owners avoiding the implementation of freeze protection measures (to lower their costs), thereby negatively interfering with competition.[98] The ISO/RTO Council states that this generator owner discretion to determine what constraints are valid without oversight could make enforcement difficult.[99] Similarly, Invenergy argues that this discretion could lead to uneven implementation and enforcement.[100] TCPA also requests that the Commission clarify that a lack of cost recovery is a commercial constraint to implementing Requirement R1 and R7.[101] Finally, commenters point out that there is no indication in the Standard of which entity should receive the declaration of constraints from the generator owner, if any.[102]

63. NERC, in its reply comments, states that provisions criticized by commenters including the "constraints" provision represents a balancing of competing opinions raised in the standards development process. NERC opines that the petition provides a sound technical basis for approving the Standards as filed, and reiterates that during the second phase project, "NERC may propose further changes to enhance the clarity or effectiveness of the EOP-012 standard."[103]

c. Commission Determination

64. We share commenters' concerns regarding the uncertainty created by the proposed technical, commercial, or operational constraint provisions in Requirements R1 and R7, and that without criteria to guide the generator owners, or guardrails on what constitutes a legitimate technical, commercial, or operational constraint, entities may either benefit financially by avoiding the purpose of the Standard altogether or have declarations without auditable elements.[104] Indeed, instead of implementing freeze protection measures, Requirement R1 allows an entity to explain in a declaration the constraints that preclude the ability to comply. Requirement R7 allows an entity to explain in a declaration any technical, commercial, or operational constraints as defined by the generator owner that prevent its implementation of corrective actions set forth in a corrective action plan pursuant to Requirements R2, R4 and R6. We are also concerned that a generator owner may make the determination without informing planning and operational entities ( i.e., the reliability coordinator or balancing authority) that are expecting the reliable operation of the generating unit to its Extreme Cold Weather Temperature.

65. The Commission has previously encountered similar concerns regarding the vagueness and enforceability of Reliability Standards language. For example, in Order No. 693 the Commission approved Reliability Standards while also expressing concern that the term "sabotage" was too ambiguous.[105] Similarly, in Order No. 791 (approving Version 5 of the CIP Standards), the Commission raised concerns with vague language that required entities to "identify, assess, and correct" deficiencies. The Commission determined that the ambiguities resulted in an "unacceptable amount of uncertainty" and directed NERC to remove the ambiguous language and develop modifications within one year.[106] In both Order No. 693 and Order No. 791, the Commission approved NERC's proposed Reliability Standards as an improvement to reliability, while directing NERC to submit modifications to the Standards addressing the Commission's concern regarding vagueness of particular language. We conclude that a similar approach is appropriate in the immediate proceeding, given the improvements offered by Reliability Standard EOP- 012-1 in addressing Bulk-Power System reliability during extreme cold weather events.

66. Accordingly, we direct NERC, pursuant to section 215(d) of the FPA, to develop and submit modifications to Reliability Standard EOP-012-1 Requirements R1 and R7 to address concerns related to the ambiguity of generator-defined declarations of technical, commercial, or operational constraints that preclude a generator owner from implementing the appropriate freeze protection measures and to ensure that the constraint declarations may not be used to opt-out of compliance with the Standard or obligations set forth in a corrective action plan. Specifically, we direct NERC to include auditable criteria on permissible constraints and to identify the appropriate entity that would receive the generator owners' constraint declarations under EOP-012-1 Requirements R1 and R7. We direct NERC to submit the revised Reliability Standard no later than 12 months after the date of issuance of this order.

67. TCPA requests that the Commission clarify that a "lack of cost recovery" is a commercial constraint to implementing Requirement R1 and R7.[107] TCPA argues that the ability of transmission service providers and others to receive regulated rates of return creates an uneven playing field for independent generation.[108] We decline to grant TCPA's proposed clarification. Granting TCPA's requested clarification would be tantamount to a blanket waiver for all generators that do not currently recover their costs through cost-of-service rates.[109] We believe it would be inappropriate to allow entities participating in competitive wholesale electric markets to simply opt-out of reliability improvements offered by NERC's proposal because they lack a dedicated cost recovery mechanism.

68. Additionally, to provide the Commission with an ongoing assessment of the risk to the Bulk-Power System, we direct that NERC assess the implementation of the declarations through annual informational data submittals filed with the Commission, discussed in more detail in section 8.

4. The Calculation of the Extreme Cold Weather Temperature at Which a Generating Unit Must Be Capable of Performing

a. NERC Petition

69. NERC proposes to define the term Extreme Cold Weather Temperature as equal to the lowest 0.2 percentile of the hourly temperatures measured in December, January, and February from January 1, 2000, through the date the temperature is calculated.[110] According to NERC, a statistical approach using modern weather data would advance the reliability of the Bulk-Power System while also avoiding being overly burdensome for those responsible for compliance.[111]

b. Comments

70. Some commenters express concern with the Extreme Cold Weather Temperature definition.[112] The ISO/RTO Council argues that only examining historical data from the year 2000 forward risks unnecessarily limiting the range of possible cold weather scenarios that the Standard is intended to address, and proposes an alternate calculation method.[113] NEPGA/EPSA/PJM Group counters that the ISO/RTO Council's proposed revisions materially change Reliability Standard EOP-012-1, and should the Commission adopt the ISO/RTO proposal, then efforts to comply with EOP-012-1 "as drafted" could be potentially futile.[114] Invenergy asserts that the Extreme Cold Weather Temperature definition is arbitrary because NERC did not measure the definition against any objective standard to ensure reliable operation.[115] Invenergy adds that the Extreme Cold Weather Temperature should be calculated by NERC and its Regional Entities to prevent uneven implementation and enforcement.[116] Invenergy also argues that it is unreasonable that the proposed Extreme Cold Weather Temperature "will be heavily influenced by the colder nighttime temperatures, when there is no solar generation."[117]

c. Commission Determination

71. As noted above, the Extreme Cold Weather Temperature is equal to the lowest 0.2 percentile of the hourly temperatures measured in December, January, and February from January 1, 2000, through the date the temperature is calculated.[118] This method of determining the Extreme Cold Weather Temperature is a statistical approach, using the cumulative distribution of historical temperatures to determine the 0.2 percentile historical temperature. NERC's petition explains it relied on the Modernization and Associated Restructuring from the National Weather Service, which has higher quality and more granular temperature data in more locations, being completed in the year 2000 to justify the elimination of all pre-2000 historical weather data from consideration.[119]

72. We find that NERC's Extreme Cold Weather Temperature definition represents a reasonable starting point for reducing the level of risk. The use of the Extreme Cold Weather Temperature to establish a specific level of required freeze protection for resources is also a significant improvement over the current cold weather Reliability Standards, which contain no minimum temperature operating requirements.[120] With respect to the 0.2 threshold, we believe that NERC reasonably balanced a number of competing factors in setting the Extreme Cold Weather Temperature.[121] Similarly, while we agree with the ISO/RTO Council that additional data sources may be available, we find that NERC's consideration of data availability and its determination to rely on meteorological data starting in the year 2000 is reasonable. Similarly, as the Extreme Cold Weather Temperature definition is meant to apply uniformly regardless of generation type, we do not find it unreasonable that solar generators would need to meet an Extreme Cold Weather Temperature based on 24-hour-temperature data.[122]

73. Although we agree that NERC could have adopted other, potentially more robust approaches to defining the Extreme Cold Weather Temperature, we believe that other factors such as application, inspection, and maintenance of the freeze protection measures and the associated training of generator owners or generator operators that perform these actions (all of which are requirements in the proposed Standard) should reasonably improve reliable operation of the Bulk-Power System. Further, recognizing that extreme cold weather temperatures could drop below the Extreme Cold Weather Temperature during future events, the need for periodic Extreme Cold Weather Temperature review[123] and updates[124] based on the new cold weather temperatures will help mitigate freezing issues over time, which could lessen the risk of freeze-related outages not being subject to corrective action plans.

74. Accordingly, we are not persuaded by commenters that modification to NERC's Extreme Cold Weather Temperature definition is warranted at this time. Nevertheless, based on the concerns expressed above, we direct that NERC assess the implementation of the definition through event-based informational data submittals filed with the Commission, discussed in more detail in section 8. Based on the results of NERC's informational data submittals to the Commission, the Commission will determine whether future modification to the Extreme Cold Weather Temperature definition is warranted.

5. The Absence of a Deadline by Which Generator Owners Must Implement the New or Modified Freeze Protection Measures Required by Their Corrective Action Plans

a. NERC Petition

75. Requirement R7 of EOP-012-1 mandates that a generator owner implement each corrective action plan developed pursuant to Requirements R2, R4, or R6, or "explain in a declaration why corrective actions are not being implemented due to any technical, commercial, or operational constraint as defined by the Generator Owner."[125] Requirement R7 also requires that the generator owner update each corrective action plan if the actions or timetables change, until the corrective action plan implementation is completed. But Reliability Standard EOP-012-1 does not include a deadline for the implementation completion of such plans.

b. Comments

76. Some commenters express concern with Requirement R7 and the implementation timeline for generator owner-developed corrective action plans.[126] Specifically, the ISO/RTO Council requests modification because Requirement R7 does not explain when the implementation of the developed corrective action plans should occur.[127] The ISO/RTO Council also argues that it is unclear to which entity or entities the generator owner is supposed to provide its corrective action plan.[128] TCPA asserts that it is unclear from EOP-012-1 when the corrective actions outlined in the developed corrective action plans should be completed.[129]

c. Commission Determination

77. The NERC Glossary defines a "corrective action plan" as used in EOP-012-1 as a "list of actions and an associated timetable for implementation to remedy a specific problem."[130] As such, the "corrective action plan[s]" in EOP-012-1 are required to contain a timetable for implementation completion and entities are required to implement actions consistent with the timelines defined in the corrective action plan under Requirement R7. While entities are required to adhere to the timelines as defined in their corrective action plans, some Reliability Standards establish a maximum time for completion while others do not. For example, the Commission directed NERC to add specific timelines for the completion of corrective action plans to mitigate geomagnetic disturbances in Reliability Standard TPL-007-1 (Transmission System Planned Performance for Geomagnetic Disturbance Events).[131] In contrast, the Commission has approved other Reliability Standards requiring a corrective action plan that do not require a specific deadline for the completion of the corrective action plan.[132]

78. In this instance, despite the lack of a deadline for completion, we find it appropriate to approve the Standard while also directing modification. We are persuaded that modifying the Standard to include a maximum time for implementation completion is reasonable for several reasons. First, having a requirement to implement a corrective action plan by a date certain will provide a significant level of risk reduction compared to the status quo. Second, the requirement to implement a corrective action plan and to identify any temporary operating limitations or effects to the cold weather preparedness plan that would apply to entities until the execution of the corrective actions by a date certain is an improvement to the Reliability Standards.[133] Finally, we do not find persuasive NERC's explanation that competition for expert resources and supply chain challenges may make setting a specific, uniform corrective action plan timeline for all generating units difficult. The November 2021 Report recommends that NERC's standard drafting team establish a maximum date that corrective action plans must be completed.[134] Otherwise, without a maximum time for implementation, we are concerned that the time it takes to complete the corrective action plans could allow identified issues to remain unresolved for a significant period.

79. Accordingly, we direct NERC pursuant to FPA section 215(d)(5) to modify Reliability Standard EOP-012-1 to address concerns related to the lack of an implementation timeframe for corrective action plans. Specifically, we direct NERC to include in the Standard a deadline or maximum period for the implementation completion of corrective action plans under the Standard. We direct NERC to submit the revised Reliability Standard no later than 12 months after the date of issuance of this order.

6. Cost Recovery Mechanisms

a. NERC Petition

80. Reliability Standard EOP-012-1 does not address cost recovery mechanisms. However, NERC's petition recognizes that generator owners can recover costs through markets or cost recovery mechanisms approved by the state public utility commissions.[135]

b. Comments

81. Some commenters assert that Reliability Standard EOP-012-1 should address cost recovery.[136] TCPA asserts that the lack of a cost recovery for competitive generators is a commercial constraint to compliance with EOP-012-1 and requests that the Commission say so in its order.[137] The ISO/RTO Council asks the Commission to remove the commercial constraint option from EOP-012-1 altogether.[138] Invenergy argues that the November 2021 Report recognized that generators should be compensated for retrofits and that, while the NERC Reliability Standards process may not be the appropriate forum to address cost recovery, it is now incumbent on the Commission to address cost recovery for generators required to comply with EOP-012-1.[139] NEPGA contends that a market change or other cost recovery mechanism must be in place by the effective date of Reliability Standard EOP-012-1 and asks the Commission to recognize the FPA's cost recovery allowances.[140] EPSA/PJM Group ask that the Commission begin a proceeding under section 206 to address cost recovery for compliance with Reliability Standards.[141]

82. NERC and APPA/TAPS assert that cost recovery is outside the scope of what Reliability Standards can address.[142] Specifically, APPA/TAPS contend that the Commission should not act in this proceeding to provide competitive generators with a mechanism to recover cold weather Standard compliance costs because the FPA does not mandate special cost recovery mechanisms for competitive generators' section 215 compliance costs.[143] APPA/TAPS state that adopting a separate cost recovery mechanism for competitive generators' reliability compliance costs would be inconsistent with the Commission's market-based framework and could risk undercutting competitive markets.[144]

c. Commission Determination

83. We find that the question of whether existing market mechanisms provide an opportunity to recover the prudently incurred costs of compliance with the proposed Standard and the request to initiate a proceeding under FPA 206 are outside the scope of the instant proceeding.

7. Other Technical Matters

a. Comments

84. Commenters raise other technical concerns touching on a variety of elements of the Standard. For example, the ISO/RTO Council argues that NERC's implementation plan may "discourage earlier compliance" and that the Commission should enact a shorter implementation plan along with an exception process for generator owners that may "legitimately need more time."[145] The ISO/RTO Council recommends revising the "Generator Cold Weather Reliability Event" definition to account for generating units rated at or below 200 MW.[146] The ISO/RTO Council also expresses concern that corrective action plans under the Standard only apply when the unit is unable to operate at or above the Extreme Cold Weather Temperature.[147] Additionally, the ISO/RTO Council questions how EOP-012-1 interacts with tariff requirements.[148]

85. EPSA/PJM Group requests that Requirements R1 and R2 be removed from EOP-012-1 and be replaced with a requirement that balancing authorities instead ensure weather-resilient generation.[149] For Reliability Standard EOP-012-1 Requirement R1, TAPS requests that compliance with the phrase "provide the capability to operate" be based on sound engineering judgment, meaning subsequent failures during cold weather not automatically lead to a violation since cold weather events cannot be simulated ahead of time.[150]

86. TCPA requests clarification of when the five-year clock in Requirement R4 begins and explanation how Requirement R7 requirement for corrective action plans could be effective 18 months after government approval when the standards for which the corrective action plans would address ( i.e., Requirements R2 and R4) are not effective until 60 and 78 months after government approval.[151] TCPA suggests that generator owners only be required to provide annual compliance progress reports.[152] TCPA also raises issue with EOP-012-1's violation severity level's lack of differentiation between single and multiple facilities.[153] Invenergy suggests revising NERC's "Generator Cold Weather Reliability Event" definition to align better with the bulk electric system definition to ensure that corrective action plans are only required when an actual Cold Weather Reliability Event occurs.[154] Invenergy and TCPA recommend eliminating the term "continuous" from EOP-012-1 Requirement R1 to reflect variable generation and that solar and wind plants are unable to operate continuously.[155]

87. NERC asserts that it is presently in phase two of its standard development process and that its standard drafting team is presently considering many of the issues raised in connection with this proceeding.[156] NERC encourages commenters in this proceeding to continue participating in NERC's standard development process so that their issues and concerns can be addressed.

b. Commission Determination

88. We share concerns with commenters regarding the implementation period of Reliability Standard EOP-012-1, although we acknowledge NERC's assertion that the time is necessary for generator owners to calculate the Extreme Cold Weather Temperature for each generating unit, to identify Generator Cold Weather Critical Components, and to perform the necessary engineering studies and analyses to identify and implement freeze protection measures that would provide for the required performance capability or to explain why such measures are precluded by technical, commercial, or operational constraints. To address these concerns, we direct NERC to revise EOP-012 to require a shorter implementation period and staggered implementation for unit(s) in a generator owner's fleet.[157] Such an approach will reduce reliability risks more quickly. Although we are giving NERC the discretion to determine what the effective date should be shortened to, we also emphasize that industry has been aware of and alerted to the need to prepare their generating units for cold weather since at least 2011. NERC should consider the amount of time that industry has already had to implement freeze protection measures when determining the appropriate shorter implementation period. We direct NERC to submit the revised implementation to Reliability Standard EOP-012-1 no later than 12 months after the date of issuance of this order.

89. For comments related to the "continuous" operation requirements of EOP-012-1, the Reliability Standard is clear that it requires generating units to be "capable" of operating continuously for 12 hours, and not that the units must actually operate when they would otherwise not be expected to operate. NERC states in its petition that the 12-hour requirement is a minimum.[158] However, we find the phrase "continuous operation" to be confusing and subject to conflicting interpretations. We also note that it creates confusion as to whether certain generating units can ever be capable of compliance. As Invenergy states, "solar generators are not capable of operating in a 12-hour period that extends beyond daylight hours, and, typically when there are freezing temperatures, the sun does not even shine for 12 hours."[159] And while Invenergy states that the "Standard Drafting Team indicated that the freeze protection measures must provide the level of protection that would allow for 12 continuous hours if the sun were to shine or the wind were to blow for the period,"[160] the Reliability Standard Requirements in EOP-012-1 do not specify that.[161] Thus, we direct NERC to modify the Standard to clarify Reliability Standard EOP-012-1 Requirement R1 to ensure that generators that are technically incapable of operating for 12 continuous hours ( e.g., solar facilities during winter months with less than 12 hours of sunlight) are not excluded from complying with the Standard. We direct NERC to submit the revised Reliability Standard no later than 12 months after the date of issuance of this order.

90. We also find that the one-hour continuous operations requirement in Reliability Standard EOP-012-1 Requirement R2 is too short of a period to adequately meet the purpose of the Standard to ensure generating units "mitigate the reliability impacts of extreme cold weather."[162] Thus, we direct NERC to modify the one-hour continuous operations requirement of Reliability Standard EOP-012-1 Requirement R2 to better align with the stated purpose of the Reliability Standard EOP-012-1. We direct NERC to submit the revised Reliability Standard no later than 12 months after the date of issuance of this order.

91. We find that it is premature to address TCPA's recommendation that generator owners only submit annual progress reports on compliance.[163] Nothing in proposed Reliability Standard EOP-012-1 mandates the submission of compliance reports and we are already directing NERC to address periodic data submittals in this order.

92. Finally, for suggested revisions to NERC's "Generator Cold Weather Reliability Event" definition to align better with the bulk electric system definition, and requests that Requirements R1 and R2 be removed from EOP-012-1 and be replaced with a requirement that balancing authorities instead ensure weather-resilient generation,[164] we decline to direct such modifications at this time.

8. Annual and Event-Based Data Submittals

93. NERC states that it plans to address data submittal requirements in phase two of its standard development process.[165] We find that such data submittals are essential to assess the performance of the Standards towards assuring the reliability of the Bulk-Power System. Specifically, we find that additional data and analysis is necessary to address the uncertainty created by the proposed technical, commercial, or operational constraint provisions, as discussed above in section 3. This data and analysis are essential to assess how the generating units' freeze protection measures (implemented to provide capability to operate at the Extreme Cold Weather Temperature) perform in future extreme cold weather events, as discussed above in section 4.

94. Accordingly, we direct that NERC, pursuant to section 39.2(d) of the Commission's regulations, work with Commission staff to develop and submit a plan within 12 months of the issuance of this order explaining how it will gather data and submit an analysis that will allow the Commission to understand the efficacy of, and monitor the ongoing risk posed by: (1) proposed technical, commercial, or operational constraint provisions in EOP-012-1, Requirements R1, R6, and R7; and (2) actual performance of freeze protection measures during future extreme cold weather events.

95. Regarding the proposed technical, commercial, or operational constraint provisions in EOP-012-1, Requirements R1, R6, and R7, NERC should work with Commission staff on the details of timing and what to include in its plan, which, at a minimum, should include collection of the following data: (1) the generating units that have declared constraints under EOP-012-1 and the megawatts of generation that they represent, organized by fuel type; (2) the megawatts of generation for which declarations have been made for each type of constraint (technical, commercial, or operational), organized by fuel type; (3) the rationale(s) for each declaration; (4) the megawatts of generation within the generation owner/operator's fleet currently capable of operating at each unit's Extreme Cold Weather Temperature; (5) the projected megawatts for which the generator owner/operator expects to complete corrective action plans for each year; (6) the projected megawatts for which the generator owner/operator expects to implement corrective action plans for each year; and (7) the megawatts of generating units identified as "similar equipment"[166] to which the generator owner has determined that the cause(s) for the Generator Cold Weather Reliability Event are also applicable, under R6.2, while also identifying any similar equipment that will receive a declaration. To provide the Commission with an ongoing assessment of the risk to the Bulk-Power System, NERC's plan should include an annual informational filing to the Commission beginning 12 months after the mandatory and enforceable date of the Standard. The informational filing should include data on the seven foregoing categories aggregated at an appropriate level ( e.g., Regional Entity, balancing authority, etc.), and an analysis of the efficacy of the requirements of the Standard based on the data. Depending on the results of NERC's data collection and analysis, the Commission will determine whether further modifications are needed to the Standard.

96. NERC's plan should also include how it will analyze the performance of generating units' freeze protection measures (implemented to provide capability to operate at the Extreme Cold Weather Temperature) in future extreme cold weather events. Depending on the results of NERC's data collection and analysis, the Commission will determine whether further modifications are needed to the definitions or the Standard.

IV. Information Collection Statement

97. The information collection requirements contained in this Final Rule are subject to review by the Office of Management and Budget (OMB) under section 3507(d) of the Paperwork Reduction Act of 1995.[167] OMB's regulations require approval of certain information collection requirements imposed by agency rules.[168] Upon approval of a collection of information, OMB will assign an OMB control number and expiration date. Comments on the collection of information are due within 60 days of the date this order is published in the Federal Register . Respondents subject to the filing requirements of this rule will not be penalized for failing to respond to these collections of information unless the collections of information display a valid OMB control number. The Commission solicits comments on the Commission's need for this information, whether the information will have practical utility, the accuracy of the burden estimates, ways to enhance the quality, utility, and clarity of the information to be collected or retained, and any suggested methods for minimizing respondents' burden, including the use of automated information techniques.

98. The EOP 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-011-1, EOP-004-4, EOP 005-3, EOP-006-3, EOP-008-2 (Table 1). In Docket No. RD23-1-000, the Commission proposes to replace the current OMB approved Reliability Standard EOP-011-1[169] with Reliability Standard EOP-011-3 (Table 2) and add a new information collection line item for Reliability Standard EOP-012-1 (Table 3).

99. The number of respondents below is based on an estimate of the NERC compliance registry for balancing authorities, transmission operators, generator operators, generator owners, and reliability coordinators. Reliability Standards EOP-011-3 and EOP-012-1 apply to balancing authorities, transmission operators, generator operators, and reliability coordinators. The Commission based its paperwork burden estimates on the NERC compliance registry as of November 4, 2022. According to the registry, there are 98 balancing authorities, 168 transmission operators, 981 generator operators, 1,107 generator owners, and 12 reliability coordinators. The estimates in the tables below are based on the change in burden from the current EOP Reliability Standards to the Reliability Standards approved in this order. The Commission based the burden estimates in the tables below on staff experience, knowledge, and expertise.

100. The estimates in the tables below are based, in combination, on one-time (years 1 and 2) and ongoing execution (year 3) obligations to follow the revised EOP Reliability Standards.

101. The Reliability Standard EOP-011-3 modifications transfer Requirements R7 and R8 to Reliability Standard EOP-012-1, as described below. For Reliability Standard EOP-011-3, transmission operators and to a much lesser extent, balancing authorities, still have a one-time cost to modify existing operating plans based on revisions to Reliability Standard EOP-011-3 (Requirements R1 and R2) and to mitigate operating emergencies related to cold weather conditions. Additionally, reliability coordinators will need to review the modified operating plans of the transmission operators. In year three and ongoing, the transmission operator and reliability coordinator estimates are lower to reflect lower paperwork burden for upkeep and review of the operating plans for emergencies based on the modified Reliability Standard EOP-011-3 to ensure that the new requirements are in place and that applicable entities are following those plans.

102. The new Reliability Standard EOP-012-1, which is applicable to 1,107 generator owners and 981 generator operators, contains several new requirements and two requirements from Reliability Standard EOP-011-2 that have been moved to Reliability Standard EOP-012-1. In year three and ongoing, the estimates are lower to reflect that the implementation plan(s) to mitigate the reliability effects of extreme cold weather conditions on generating units are in place and that entities are familiar with the EOP-012-1 requirements.

103. Burden Estimates: The Commission estimates the changes in the annual public reporting burden and cost as indicated in the tables below:

Titles: FERC-725S, Mandatory Reliability Standards for the Bulk-Power System; EOP Reliability Standards.

Action: Modifications to Existing Collections of Information in FERC-725S.

OMB Control Nos: 1902-0270 (FERC-725S).

Respondents: Business or other for profit, and not for profit institutions.

Frequency of Responses: On occasion (and proposed for deletion).

Necessity of the Information: Reliability Standards EOP-011-3 (Emergency Operations), and EOP-012-1 (Extreme Cold Weather Preparedness and Operations) 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 and new Reliability Standards ensure that generating resources are prepared for local cold weather events and that entities will effectively communicate the information needed for operating the Bulk-Power System.

Internal review: The Commission has reviewed NERC's proposal and determined that its action is necessary to implement section 215 of the FPA.

104. Interested persons may obtain information on the reporting requirements by contacting the Federal Energy Regulatory Commission, Office of the Executive Director, 888 First Street NE, Washington, DC 20426 [Attention: Ellen Brown, email: DataClearance@ferc.gov, phone: (202) 502-8663, fax: (202) 273-0873].

105. Comments concerning the information collections and requirements approved for retirement in this Final Rule and the associated burden estimates, should be sent to the Commission in this docket and may also be sent to the Office of Management and Budget, Office of Information and Regulatory Affairs [Attention: Desk Officer for the Federal Energy Regulatory Commission]. For security reasons, comments should be sent by email to OMB at the following email address: oira_submission@omb.eop.gov.

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(Continues with Part 3 of 3)

The document was published in the Federal Register: https://www.federalregister.gov/documents/2023/03/10/2023-04875/north-american-electric-reliability-corporation-order-approving-extreme-cold-weather-reliability

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