18 CFR Part 40

Federal Energy Regulatory Commission
(b) Where a state takes action to ensure the safety, adequacy, or reliability
of electric service, the Electric Reliability Organization, a Regional Entity
or other affected person may apply to
the Commission for a determination of
consistency of the state action with a
Reliability Standard.
(1) The application shall:
(i) Identify the state action;
(ii) Identify the Reliability Standard
with which the state action is alleged
to be inconsistent;
(iii) State the basis for the allegation
that the state action is inconsistent
with the Reliability Standard; and
(iv) Be served on the relevant state
agency and the Electric Reliability Organization, concurrent with its filing
with the Commission.
(2) Within ninety (90) days of the application of the Electric Reliability Organization, the Regional Entity, or
other affected person, and after notice
and opportunity for public comment,
the Commission will issue a final order
determining whether the state action
is inconsistent with a Reliability
Standard, taking into consideration
any recommendation of the Electric
Reliability Organization and the state.
(c) The Commission, after consultation with the Electric Reliability Organization and the state taking action,
may stay the effectiveness of the state
action, pending the Commission’s
issuance of a final order.
§ 39.13 Regional Advisory Bodies.
(a) The Commission will establish a
Regional Advisory Body on the petition of at least two-thirds of the states
within a region that have more than
one-half of their electric load served
within the region.
(b) A petition to establish a Regional
Advisory Body shall include a statement that the Regional Advisory Body
is composed of one member from each
participating state in the region, appointed by the governor of each state,
and may include representatives of
agencies, states and provinces outside
the United States.
(c) A Regional Advisory Body established by the Commission may provide
advice to the Electric Reliability Organization or a Regional Entity or the
Commission regarding:

§ 40.2
(1) The governance of an existing or
proposed Regional Entity within the
same region;
(2) Whether a Reliability Standard
proposed to apply within the region is
just, reasonable, not unduly discriminatory or preferential, and in the public interest;
(3) Whether fees for all activities
under this part proposed to be assessed
within the region are just, reasonable,
not unduly discriminatory or preferential, and in the public interest; and
(4) Any other responsibilities requested by the Commission.
(d) The Commission may give deference to the advice of a Regional Advisory Body established by the Commission that is organized on an Interconnection-wide basis.

PART 40—MANDATORY RELIABILITY
STANDARDS FOR THE BULKPOWER SYSTEM
Sec.
40.1 Applicability.
40.2 Mandatory Reliability Standards.
40.3 Availability of Reliability Standards.
AUTHORITY: 16 U.S.C. 824o.
SOURCE: Order 693, 72 FR 16598, Apr. 4, 2007,
unless otherwise noted.

§ 40.1

Applicability.

(a) This part applies to all users,
owners and operators of the BulkPower System within the United
States (other than Alaska or Hawaii),
including, but not limited to, entities
described in section 201(f) of the Federal Power Act.
(b) Each Reliability Standard made
effective by § 40.2 must identify the
subset of users, owners and operators
of the Bulk-Power System to which a
particular Reliability Standard applies.
§ 40.2 Mandatory
ards.

Reliability

Stand-

(a) Each applicable user, owner or operator of the Bulk-Power System must
comply with Commission-approved Reliability Standards developed by the
Electric Reliability Organization.
(b) A proposed modification to a Reliability Standard proposed to become

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§ 40.3

18 CFR Ch. I (4–1–14 Edition)

effective pursuant to § 39.5 of this Chapter will not be effective until approved
by the Commission.
§ 40.3 Availability of Reliability Standards.
The Electric Reliability Organization
must post on its Web site the currently
effective Reliability Standards as approved and enforceable by the Commission. The effective date of the Reliability Standards must be included in
the posting.

PART 41—ACCOUNTS, RECORDS,
MEMORANDA AND DISPOSITION
OF CONTESTED AUDIT FINDINGS
AND PROPOSED REMEDIES
DISPOSITION OF CONTESTED AUDIT FINDINGS
AND PROPOSED REMEDIES
Sec.
41.1
41.2
41.3
41.4
41.5
41.6
41.7
41.8

Notice to audited person.
Response to notification.
Shortened procedure.
Form and style.
Verification.
Determination.
Assignment for oral hearing.
Burden of proof.
CERTIFICATION OF COMPLIANCE WITH
ACCOUNTING REGULATIONS

41.10
41.11
41.12

Examination of accounts.
Report of certification.
Qualifications of accountants.

AUTHORITY: 16 U.S.C. 791a–825r, 2601–2645; 42
U.S.C. 7101–7352.
SOURCE: Order 141, 12 FR 8500, Dec. 19, 1947,
unless otherwise noted.
CROSS REFERENCE: For rules of practice
and procedure, see part 385 of this chapter.

DISPOSITION OF CONTESTED AUDIT
FINDINGS AND PROPOSED REMEDIES
§ 41.1 Notice to audited person.
(a) Applicability. This part applies to
all audits conducted by the Commission or its staff under authority of the
Federal Power Act except for Electric
Reliability Organization audits conducted pursuant to the authority of
part 39 of the Commission’s regulations.
(b) Notice. An audit conducted by the
Commission’s staff under authority of
the Federal Power Act may result in a
notice of deficiency or audit report or

similar document containing a finding
or findings that the audited person has
not complied with a requirement of the
Commission with respect to, but not
limited to, the following: A filed tariff
or tariffs, contracts, data, records, accounts, books, communications or papers relevant to the audit of the audited person; matters under the Standards of Conduct or the Code of Conduct;
and the activities or operations of the
audited person. The notice of deficiency, audit report or similar document may also contain one or more
proposed remedies that address findings of noncompliance. Where such
findings, with or without proposed
remedies, appear in a notice of deficiency, audit report or similar document, such document shall be provided
to the audited person, and the finding
or findings, and any proposed remedies,
shall be noted and explained. The audited person shall timely indicate in a
written response any and all findings
or proposed remedies, or both, in any
combination, with which the audited
person disagrees. The audited person
shall have 15 days from the date it is
sent the notice of deficiency, audit report or similar document to provide a
written response to the audit staff indicating any and all findings or proposed
remedies, or both, in any combination,
with which the audited person disagrees, and such further time as the
audit staff may provide in writing to
the audited person at the time the document is sent to the audited person.
The audited person may move the Commission for additional time to provide
a written response to the audit staff
and such motion shall be granted for
good cause shown. Any initial order
that the Commission subsequently may
issue with respect to the notice of deficiency, audit report or similar document shall note, but not address on the
merits, the finding or findings, or the
proposed remedy or remedies, or both,
in any combination, with which the audited person disagreed. The Commission shall provide the audited person 30
days to respond to the initial Commission order concerning a notice of deficiency, audit report or similar document with respect to the finding or
findings or any proposed remedy or

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