Rd17-1 Dlo

FEDERAL ENERGY REGULATORY COMMISSION

WASHINGTON, D.C. 20426

OFFICE OF ELECTRIC RELIABILITY

North American Electric Reliability Corporation

Docket No. RD17-1-000

January 18, 2017

North American Electric Reliability Corporation

1325 G Street N.W., Suite 600

Washington, D.C. 20005

Attention: Candice Castaneda

Counsel for North American Electric Reliability Corporation

Reference: Petition of the North American Electric Reliability Corporation for Approval of retirement of currently-effective Reliability Standard BAL-004-0

Dear Ms. Castaneda:

On November 10, 2016, the North American Electric Reliability Corporation (NERC) filed a petition for Commission approval of retirement, pursuant to section 215(d)(1) of the Federal Power Act (FPA)¹ and Section 39.5 of the Commission’s regulations,² of currently-effective Reliability Standard BAL-004-0 (Time Error Correction). NERC also seeks approval to retire Reliability Standard BAL-004-0 effective on the later of: (i) the first day of the first calendar quarter after the effective date of the Commission’s order approving retirement; or (ii) the effective date of retirement/reservation³ of North American Energy Standard Board (“NAESB”) WEQ-006 Manual Time Error Correction Business Practice Standard (“NAESB WEQ-006”). NERC’s proposal is conditioned upon retirement of NAESB WEQ-006 to avoid uncoordinated manual Time Error Correction. NERC understands that NAESB’s effort regarding proposed retirement of NAESB WEQ-006 is underway and NAESB will make an informational filing following the completion of its standards development process.

The purpose of Reliability Standard BAL-004-0 is to ensure that Time Error Correction is conducted in a manner that does not adversely affect the reliability of the Interconnection. Reliability Standard BAL-004-0 establishes a process to invoke a Time Error Correction, if necessary, that would be overseen by reliability coordinators and implemented by balancing authorities.⁴ NERC states that manual Time Error Correction places the Interconnection closer to the appropriate frequency through an offset to the frequency schedule as requested by an Interconnection Time Monitor (one of many roles of the reliability coordinator). ⁵ NERC explains that since Reliability Standard BAL-004-0 became effective, improvements have been made to mandatory Reliability Standards (such as the development of Reliability Standards BAL-003-1.1 and BAL-001-2 and the Interconnection Reliability Operations and Coordination (IRO) Standards) that help ensure continued adherence to frequency approximating 60 Hertz over long-term averages and make Reliability Standard BAL-004-0 redundant.

As part of the support for the retirement of Reliability Standard BAL-004-0, the NERC Operating Committee approved Manual Time Error Correction Reference Document⁶ which is “intended to help ease the transition upon retirement of BAL-004-0 and assure the Commission and potential non-utility industry that if [Time Error Correction] is determined necessary, it will be performed in a coordinated and reliable manner.”⁷

NERC’s filing was noticed on November 18, 2016, with interventions, comments and protests due on or before December 19, 2016. No interventions, comments or protests were received.

NERC’s uncontested petition is hereby approved pursuant to the relevant authority delegated to the Director, Office of Electric Reliability under 18 C.F.R. § 375.303 (2016), effective as set forth in NERC’s implementation plan.

This action shall not be construed as approving any other application, including proposed revisions of Electric Reliability Organization or Regional Entity rules or procedures pursuant to 18 C.F.R. § 375.303(a)(2)(i). Such action shall not be deemed as recognition of any claimed right or obligation associated therewith and such action is without prejudice to any findings or orders that have been or may hereafter be made by the Commission in any proceeding now pending or hereafter instituted by or against the Electric Reliability Organization or any Regional Entity.

This order constitutes final agency action. Requests for rehearing by the Commission may be filed within 30 days of the date of issuance of this order, pursuant to 18 C.F.R. § 385.713 (2016).

Sincerely,

Michael Bardee, Director

Office of Electric Reliability

1 16 U.S.C. § 824o (2012).

2 18 C.F.R. § 39.5 (2016).

3 The NAESB process uses the term reservation, in lieu of retirement.

4 The NERC Glossary of Terms defines Time Error Correction as, “An offset to the Interconnection’s scheduled frequency to return the Interconnection’s Time Error to a predetermined value.”

5 NERC Petition at 3.

6 NERC Petition, Exhibit C-3 (Manual Time Error Correction Reference Document).

7 NERC Petition at 18.