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FERC Remands Proposed Regional Reliability Standard, Approves NERC Budget

The Federal Energy Regulatory Commission (FERC) has remanded a proposed regional Reliability Standard to the nation’s Electric Reliability Organization (ERO) over concerns it does not ensure adequate resources to maintain the integrity of the bulk power system in the Western United States.

The proposed Reliability Standard addressed in the order is meant to ensure that adequate resources are available at all times to maintain scheduled frequency and avoid loss of firm load following transmission or generation contingencies.

FERC sent the standard back to the North American Electric Reliability Corp., which had proposed it on behalf of the Western Electricity Coordinating Council (WECC), out of concern that WECC has not provided adequate technical support to demonstrate that extending the reserve restoration period from 60 to 90 minutes is sufficient to ensure reliable operation of the bulk power system. However, FERC accepted WECC’s proposal with regard to calculation of the minimum contingency reserves.

NERC is responsible for developing and enforcing mandatory Reliability Standards.

Separately, FERC approved the 2011 business plans and budgets for NERC, the regional reliability entities and the Western Interconnection Regional Advisory Board (WIRAB).
The total funding requirement for 2011 for reliability activities in the United States, Canada and Mexico is $147 million. This includes $41.1 million for NERC funding, $105 million for Regional Entity funding and $319,363 for WIRAB.

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