Commission Letter RD17-5-000

FEDERAL ENERGY REGULATORY COMMISSION

WASHINGTON, D.C. 20426

OFFICE OF ELECTRIC RELIABILITY

North American Electric Reliability Corporation

Docket No. RD17-5-000

April 28, 2017

North American Electric Reliability Corporation

1325 G Street N.W., Suite 600

Washington, D.C. 20005

Attention: Shamai Elstein

Senior Counsel for North American Electric Reliability Corporation

Reference: Petition of the North American Electric Reliability Corporation and Western Electricity Coordinating Council for Approval of Proposed Regional Reliability Standard VAR-501-WECC-3

Dear Mr. Elstein:

On March 10, 2017, the North American Electric Reliability Corporation (NERC) and Western Electricity Coordinating Council (WECC) filed a joint petition seeking approval of proposed regional Reliability Standard VAR-501-WECC-3. NERC and WECC also requested approval of the associated implementation plan for the proposed regional Reliability Standard, the associated violation risk factors and violation severity levels, and the retirement of regional Reliability Standard VAR-501-WECC-2. The proposed regional Reliability Standard establishes the performance criteria for power system stabilizers to help ensure the Western Interconnection is operated in a coordinated manner under normal and abnormal conditions.¹

Proposed regional Reliability Standard VAR-501-WECC-3 includes requirements providing transmission operators with procedures or other documents that inform the transmission operator of when a power system stabilizer will be out of service; having the power system stabilizer in service at all times except during specific circumstances; tuning power system stabilizers to stated criteria; installing and completing start-up testing of a power system stabilizer; and repairing or replacing a power system stabilizer within a specified time period. NERC and WECC state that proposed regional Reliability Standard VAR-501-WECC-3 improves upon the existing regional Reliability Standard by focusing the in-service requirement on performance of the power system stabilizers rather than counting the hours they are online; incorporating the power system stabilizer policies and guidelines into a mandatory standard; and reducing administrative requirements with little benefit to reliability.²

NERC’s and WECC’s joint filing was noticed on March 20, 2017, with interventions, comments and protests due on or before April 19, 2017. 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 of the date of this order.

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 Petition at 1.

2 Id. at 3.