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EPAct 2005 & FERC: Reliability Responsibilities

Joe McClelland, Director Division of Reliability Joint NRC/FERC Meeting April 24, 2006. EPAct 2005 & FERC: Reliability Responsibilities. The Electric Reliability Organization (ERO). Order No. 672 set rules for certification. NERC filed the only application on April 4.

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EPAct 2005 & FERC: Reliability Responsibilities

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  1. Joe McClelland, Director Division of Reliability Joint NRC/FERC Meeting April 24, 2006 EPAct 2005 & FERC:Reliability Responsibilities

  2. The Electric Reliability Organization (ERO) • Order No. 672 set rules for certification. • NERC filed the only application on April 4. • ERO responsibilities include development and enforcement of standards, reliability assessment, and reliability enhancement. • Some functions may be delegated to regional entities.

  3. A Reliability Standard: • Is any requirement to provide for reliable operation of the bulk-power system; • May address operations or cybersecurity; • May address the design of planned facilities, if necessary to protect operations; and • May not require the enlargement or new construction of facilities.

  4. The Bulk-Power System: • Includes facilities and control systems necessary for operating an interconnected electricity transmission network; • Includes electricity from generation facilities needed to maintain transmission system reliability; and • Does not include distribution facilities.

  5. Setting Standards • Standards apply to all users, owners, and operators. • ERO develops and FERC establishes. • Development must be open and balanced. • FERC may approve or remand. • FERC may order ERO to develop a new standard or modify an existing one.

  6. Enforcing Standards • ERO or RE audit compliance are primary means of enforcing standards. • Remedial actions do not have force of law but do not require FERC approval. • Penalties may be monetary or non-monetary but are subject to FERC review. • One appeal is allowed before FERC review. • Some violations are not made public.

  7. ERO Governance • Membership is not required. • ERO must seek certification in Canada and Mexico. • Rules are subject to FERC approval. • Periodic performance assessments are required. • FERC audits performance and approves annual budget.

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