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Dave Andrejcak and Mark Hegerle Federal Energy Regulatory Commission March 11, 2009

RIC 2009 Nuclear Power Plant/Electric Grid Regulatory Coordination and Cooperation Electric Grid Regulators Perspectives. Dave Andrejcak and Mark Hegerle Federal Energy Regulatory Commission March 11, 2009. Foundational for reliability legislation and regulation: FPA section 215

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Dave Andrejcak and Mark Hegerle Federal Energy Regulatory Commission March 11, 2009

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  1. RIC 2009 Nuclear Power Plant/Electric Grid Regulatory Coordination and CooperationElectric Grid Regulators Perspectives Dave Andrejcak and Mark Hegerle Federal Energy Regulatory Commission March 11, 2009

  2. Foundational for reliability legislation and regulation: FPA section 215 Identifies Causes of 2003, other blackouts Key Recommendations: Strengthen and make reliability standards mandatory and enforceable (1,16,27) Establish an ERO (independent reliability management) (2,3,7) Strengthen NERC compliance program (17) Ensure cost recovery for reliability expenses (4) Correct direct causes of August 14, 2003 blackout (15-17, 19-24) 2003 Blackout Report

  3. Jurisdiction and Applicability Certification Reliability Standards Enforcement Changes in ERO Rules Federal Power Act - Section 215

  4. Order No. 672 Certification of NERC as the ERO Order No. 693 Mandatory Reliability Standards Order No. 706 Critical Infrastructure Protection Order No. 716 Nuclear Plant Interface Coordination Key Orders and Rulemakings

  5. Office of Electric Reliability Office of the Director Division of Reliability Standards Division of Compliance Division of Bulk-Power System Analysis Division of Reliability & Engineering Services Division of Logistics and Security

  6. Approve, Remand, Direct Modification Standards Development Process National standards Regional standards Commission Approval Process Division of Reliability Standards

  7. 83 Standards approved in Order No. 693 8 WECC Regional Standards 8 additional CIP Standards 3 additional FAC Standards 1 NUC Standard 5 Modifications to INT Standards 4 Interpretations Approved (BAL and VAR) Approved Reliability Standards

  8. Work with Office of Enforcement to ensure compliance with the Reliability Standards and ERO compliance with statutory and regulatory requirements for certification Violations Incident analysis Audits Notices of Penalty Registry Appeals Division of Compliance

  9. Approved Penalties 42 of 51 NOPs with zero penalty 3 monetary penalties for FAC-003 violations: BGE ($180,000) MidAmerican ($75,000 settlement plus mitigation measures) Duke ($50,000 settlement plus mitigation measures) 6 other monetary penalties (all settlements): $235,000 – EOP-008 R1/FAC-001 (1 NOP); $3,000 – TOP-002 R15 (1 NOP); $10,000 – FAC-008 &-009 R1 (4 NOPs) Notices of Penalty

  10. Critical Infrastructure Protection Standards (CIP) ERO Process Filings Budget Rules of Procedure Delegation Agreements Division of Logistics and Security

  11. Review rate filings and market rule changes for reliability and engineering issues Technical and policy analysis Division of Reliability and Engineering Services

  12. Monitoring Reliability Monitoring Center Regional Planning Assessments Division of Bulk-Power System Analysis

  13. NRC participation in FERC cases NRC-FERC MOA (2004) Quarterly meetings Joint Commission Meeting Interface with NRC

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