Analysis of NERC Compliance Registry & Registration Appeals
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1 Electric Reliability Organization (ERO) Compliance Analysis Report NERC Compliance Registry and Registration Appeals May 2011
2 Table of Contents ERO Compliance Analysis Report... 2 Background Information... 3 Summary of NERC Compliance Registry (NCR) and NCR Appeals... 5 Analysis of NCR... 6 Analysis of NCR Appeals... 9 Conclusions May
3 ERO Compliance Analysis Report The Electric Reliability Organization (ERO) is comprised of the North American Reliability Corporation (NERC) and eight Regional Entities (REs). The REs include: Florida Reliability Coordinating Council (FRCC), Midwest Reliability Organization (MRO), Northeast Power Coordinating Council (NPCC), ReliabilityFirst Corporation (RFC), SERC Reliability Corporation (SERC), Southwest Power Pool (SPP), Texas Reliability Entity (TRE), and Western Electricity Coordinating Council (WECC). This is the first analysis report on the NERC Compliance Registration (NCR) and the NCR appeals process (appeals). This report provides a quantitative assessment of the NCR as of November 19, 2010, including the 94 appeals processed from June 2007 to December 31, May
4 Background Information As described in the NERC Statement of Compliance Registry Criteria, NERC will include in its compliance registry each entity that it determines can materially impact the reliability of the bulk power system (BPS). NERC wishes to identify as many organizations as possible that may need to be listed in its compliance registry. Identifying these organizations is necessary and prudent at this time for the purpose of determining resource needs, both at the NERC and RE level, and to begin the process of communication with these entities regarding their potential responsibilities and obligations. Registration Process Flow Overview: Any entity (i.e. entity, NERC, RE) submits registration form to each region in which the applicable entity operates (21 Days) NERC coordination as required for multiple Regions No RE(s): Does the entity require certification? RE(s): Notifies entity to correct registration information No RE(s): Is the data correct (CFR etc)? Yes Yes RE(s): Notifies entities to initiate the certification process per Section IV RE(s): Forwards registration information to NERC No NERC: Provide RE(s) proposed changes to the NCR for threeday review RE(s): Is the data correct? Entity may appeal the registration in accordance with the Rules of Procedure and Appendix 5 Yes NERC: Updates the NCR and notifies the entity when listed in the NCR May
5 As described in the NERC Rules of Procedure Appendix 5A Organization Registration and Certification Manual, NERC has established documented procedures to ensure a fair and impartial appeals process. No one with a direct interest in a dispute may participate in the appeals process except as a party or witness. Registration Appeals Process Flow Overview Entity appeals to NERC in writing with details of appeal (21 Days) * NERC notifies entity and Region(s) on receipt of appeal with appeal expectations Entity response to RE(s) assessment to NERC & the Region(s) (*30 Days) Entity provides NERC and RE(s) additional data regarding the appeal (*10 Days) Hearings and rulings by NERC Board of Trustees CC (BOTCC) RE(s) provides entity and NERC its assessment regarding the appeal (*20 Days) At any time through this appeals process, an entity may withdraw its appeal. BOTCC: Uphold the appeal? Yes No NERC notifies the entity and the RE(s) that the appeal was denied NERC notifies the entity and RE(s) that the appeal was granted and any changes to the NCR; NERC updates the NCR Entity may appeal to applicable governmental agency (21 Days) May
6 Summary of NERC Compliance Registry (NCR) and Registration Appeals This summary presents a quantitative representation of the NCR and NCR appeals. The chart below provides some essential elements of the NCR as of November 19, 2010 and appeals submitted from June 2007 to December 31, 2010 by registered entities. NCR Total Functions registered in the NCR as of November 19, 2010: 4,721 Total entities registered in the NCR: 1,939 Total entities registered FRCC: 73 Total entities registered MRO: 123 Total entities registered NPCC: 315 Total entities registered RFC: 374 Total entities registered SERC: 246 Total entities registered SPP: 128 Total entities registered TRE: 221 Total entities registered WECC: 459 NCR Appeals Total Appeals processed by the ERO since June 2007: 94 Total Appeals settled by the REs since June 2007: 65 Total Appeals processed through BOTCC since June 2007: 29 Of the 29 Appeals processed by the BOTCC, number appealed to FERC: 13 May
7 Analysis of NCR May
8 Below is a graph of the three certifiable functions (BAs, RCs, and TOPs). May
9 May
10 Analysis of Registration Appeals May
11 May
12 May
13 Conclusion From June 2007 to December 31, 2010, the ERO processed 94 appeals. Three of the 94 are still active (two at FERC for final determination and one at NERC). The Regional Entities have settled 65 appeals, and the BOTCC has processed 29. Of those 29, 13 were submitted to FERC, and a final determination has been made by FERC with the following results: Upheld (4) Docket Nos. RC07-1, RC07-2, RC08-7 and RC08-5 Overturned (3) Docket Nos. RC07-4, RC07-6, and RC07-7 Remanded (4) Docket Nos. RC07-3, RC07-5, RC08-1 and RC08-4 Pending (2) Docket Nos. RC11-1 and RC11-2 Regarding the 65 registration appeals settled by the Regional Entity with the Registered Entity, 54 were upheld. Therefore, 83% of the appeals settled by the Regional Entity were settled in favor of the Registered Entity. This provides affirmation that the Regional Entity does work closely with, and listens to, the Registered Entity regarding the accuracy of the NERC Compliance Registry. The total number of users, owners, and operators of the BPS registered in the NERC compliance registry is 1, Therefore, with respect to the 94 appeals received, the appeal rate is 5%. Furthermore, three appeals were overturned by FERC, indicating a 97% ERO success rate. 2 Contact Information Mike Moon Director of Compliance Operations Michael.Moon@nerc.net Jim Hughes Manager, Registration and Certification Jim.Hughes@nerc.net was a snapshot taken from the NERC Compliance Registry November 19, This was calculated from the 91 appeals that are completed not the three that are still active. May
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