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NERC Today and Tomorrow

Living in the new world of mandatory reliability standards.

Fortnightly Magazine - March 2010

Electric Grid from Physical and Cyber Attacks : Hearing on H.R. 2195 Before the House Comm. on Homeland Security, Subcommittee on Emerging Threats, Cybersecurity, and Science and Technology, 111th Cong. 1st Sess. (2009) (Testimony of Joseph McClelland, Director, Office of Electric Reliability, Federal Energy Regulatory Commission) .

22. N. American Electric Reliability Corp., NERC Compliance Monitoring and Enforcement Program 2008 Annual Report 8 (2009).

23. Id. at 10, 12.

24. Crowe Horwath LLP for N. American Electric Reliability Corp., Compliance Enforcement, Registration, and Certification Program, Process Evaluation Report , 5 (2009) .

25. 2008Annual Report at 3.

26. N. American Electric Reliability Corp., NERC Compliance Monitoring and Enforcement Program: 2009 Implementation Plan , 20 (2008) .

27. Letter from Southwest Power Pool Inc. , Comments on NERC’s 3-Year Assessment (May 29, 2009) (last visited Jan. 26, 2010).

28. See Section 215 (b) Jurisdiction and Applicability, (“The Commission shall have jurisdiction, within the United States over the ERO […] any regional entity, and all users, owners and operators of the bulk-power system […] for purposes of approving reliability standards established under this section and enforcing compliance with this section.”) Energy Policy Act of 2005 , 42 U.S.C. § 1211 (2005).

29. Telephone Interview with Joseph Kelliher, former Chairman, Federal Electric Regulatory Commission (July 27, 2009).

30. N. American Electric Reliability Corp., NERC Compliance Monitoring and Enforcement Program: 2009 Implementation Plan, 1-3 (2008).

31. Guidance Order on Compliance Audits Conducted by the Elec. Reliability Org. and Reg’l. Entities , 126 FERC ¶ 61,038 at 2 (2009).

32. Id., see also 2008 Annual Report at 27.

33. 126 FERC ¶ 61038 at 4.

34. 2009 Implementation Plan at 17.

35. Id. at 18.

36. Id. at 19.

37. 2008 Annual Report at 14-15.

38. Id. at 20

39. Id at 1.

40. Statement of Administrative Policy on Processing Reliability Notices of Penalty and Order Revising Statement in Order No. 672 , 123 FERC ¶ 61,046 at 2-3, 9-10 (2008).

41. Id. at 3

42. Telephone Interview with Joseph Kelliher, former Chairman, Federal Electric Regulatory Commission (July 27, 2009).

43. Id., see also 126 FERC ¶ 61,046 at 3.

44. Id at 9-10.

45. The latest NERC Compliance Monitoring and Enforcement Program and Annual Report is for 2008. The 2009 report has not yet been posted on the Web site. (last visited 1-26-10).

46. Compare N. American Electric Reliability Corp., NERC Compliance Monitoring and Enforcement Program 2007 Annual Report , 8 (2008) with 2008 Annual Report at 13-14.

47. N. American Electric Reliability Corp., System Performance Indicators: Reliability Performance Gap (last visited Jan. 26, 2010).

48. Compare 2007 Annual Report at 8 with 2008 Annual Report at 13-14.

49. Compare 2007 Annual Report at 11 with N. American Electric Reliability Corp., Vegetation Management: Vegetation Management Grow-In Data 2008 (last visited Jan. 26, 2010).

50. N. American Electric Reliability Corp.,  Vegetation-Related Transmission Outage Report , Third Quarter, 2009 1 (2009) .

51. Three-Year ERO Performance Assessment Report at 32.

52. Florida Blackout Order Approving Stipulation and Consent Agreement , 129 FERC ¶