[Federal Register Volume 90, Number 38 (Thursday, February 27, 2025)]
[Rules and Regulations]
[Pages 10787-10797]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-03085]
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DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
18 CFR Parts 2 and 38
[Docket No. RM05-5-031; Order No. 676-K]
Standards for Business Practices and Communication Protocols for
Public Utilities
AGENCY: Federal Energy Regulatory Commission, Department of Energy.
ACTION: Final rule.
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SUMMARY: The Federal Energy Regulatory Commission amends its
regulations to incorporate by reference, with certain exceptions, the
latest version (Version 004) of the Standards for Business Practices
and Communication Protocols for Public Utilities adopted by the
Wholesale Electric Quadrant (WEQ) of the North American Energy
Standards Board (NAESB). The revisions made by NAESB in the WEQ Version
004 standards are designed to aid public utilities with the consistent
and uniform implementation of requirements promulgated by the
Commission as part of the pro forma Open Access Transmission Tariff
(OATT).
DATES:
Effective date: This rule is effective April 28, 2025.
Incorporation by reference: The incorporation by reference of
certain publications listed in this rule is approved by the Director of
the Federal Register as of April 28, 2025.
Compliance dates: Public utilities whose tariffs do not
automatically incorporate by reference all new NAESB standards without
modification must submit compliance filings to comply with the
requirements in the final rule no later than June 27, 2025.
Implementation dates: Public utilities must implement the
cybersecurity standards in WEQ Version 004 by February 27, 2026. Public
utilities must implement the remainder of the standards in WEQ Version
004 adopted in this final rule by August 27, 2026.
FOR FURTHER INFORMATION CONTACT: John O. Sillin (Technical Issues),
Office of Energy Policy and Innovation, Federal Energy Regulatory
Commission, 888 First Street NE, Washington, DC 20426, (202) 502-6548,
[email protected]. Veronica Norman (Legal Issues), Office of the
General Counsel, Federal Energy Regulatory Commission, 888 First Street
NE, Washington, DC 20426, (202) 502-8751, [email protected].
SUPPLEMENTARY INFORMATION:
Table of Contents
Paragraph
Nos.
I. Overview................................................. 1
II. Background.............................................. 3
III. Comments on the NOPR................................... 9
IV. Discussion.............................................. 12
A. The NAESB WEQ Version 004 Standards.................. 12
B. Specific Standards Incorporated by Reference......... 16
1. Modifications in Response to Commission Order 17
Nos. 676-I and 676-J...............................
2. Modifications To Support Cybersecurity for the 21
Wholesale Electric Industry........................
3. Modifications To Complement NERC Reliability 23
Standards..........................................
4. Modifications to the WEQ OASIS Business Practice 24
Standards..........................................
5. Modifications To Coordinate Interchange Standards 34
6. Modifications to Abbreviations, Acronyms, and 36
Defined Terms......................................
7. Minor Corrections................................ 37
[[Page 10788]]
8. New Set of Cybersecurity Standards............... 38
C. Standards That Will Not Be Incorporated by Reference. 39
D. Implementation Procedures............................ 43
V. Notice of Use of Voluntary Consensus Standards........... 51
VI. Incorporation by Reference.............................. 52
VII. Information Collection Statement....................... 80
VIII. Environmental Analysis................................ 85
IX. Regulatory Flexibility Act.............................. 86
X. Document Availability.................................... 89
XI. Effective Date and Congressional Notification........... 92
I. Overview
1. In this final rule, the Federal Energy Regulatory Commission
(Commission) amends its regulation at 18 CFR 2.27 and 38.1(b) to
incorporate by reference, with certain exceptions, the latest version
(Version 004) of the Standards for Business Practices and Communication
Protocols for Public Utilities adopted by the Wholesale Electric
Quadrant (WEQ) of the North American Energy Standards Board (NAESB)
(WEQ Version 004 Standards) applicable to the wholesale electric
industry. This final rule requires public utilities whose tariffs do
not automatically incorporate by reference all new NAESB standards
without modification to submit compliance filings to comply with the
requirements in the final rule no later than June 27, 2025. Public
utilities must implement the cybersecurity standards in WEQ Version 004
by February 27, 2026. Public utilities must implement the remainder of
the standards in WEQ Version 004 adopted in this final rule by August
27, 2026.
2. The implementation of these standards will promote greater
efficiency and reliability of public utilities' operations and
consolidate and strengthen cybersecurity protections provided within
the NAESB standards.\1\
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\1\ NAESB has developed and adopted, in response to
recommendations from the U.S. Department of Energy (DOE) and Sandia
National Laboratories (Sandia Labs), a new set of business practice
standards to strengthen cybersecurity protections.
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II. Background
3. NAESB is an American National Standards Institute-accredited,
non-profit standards development organization formed for the purpose of
developing voluntary standards and model business practices that
promote more competitive and efficient natural gas and electric
markets.
4. Since 2006, in the Order No. 676 series of orders,\2\ the
Commission has incorporated by reference into its regulations NAESB's
business practice standards and communication protocols for public
utilities. As the Commission found in Order No. 676, adoption of
consensus standards is appropriate because the consensus process helps
ensure the reasonableness of the standards by requiring that the
standards draw support from a broad spectrum of all segments of the
industry. Moreover, since the industry itself conducts business under
these standards, the Commission's regulations should reflect those
standards that have the widest possible support.
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\2\ This series of orders began with the Commission's issuance
of Standards for Bus. Practices & Commc'n Protocols for Pub. Utils.,
Order No. 676, 71 FR 26199 (May 4, 2006), 115 FERC ] 61,139 (2021).
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5. The WEQ Version 004 Standards will replace the currently
incorporated versions (Version 003.3) of those business practice
standards.
6. On July 31, 2023, NAESB filed a report informing the Commission
(Informational Report) that it had approved and published the WEQ
Version 004 Standards. The WEQ Version 004 Standards include newly
created standards, as well as modifications to existing standards,
developed through the NAESB standards development process. The WEQ
Version 004 Standards build upon the WEQ Version 003.3 Standards and
include standards developed in response to the directives from Order
Nos. 676-I and 676-J,\3\ business practice standards developed to
support cybersecurity for the wholesale electric industry,
modifications to complement the North American Electric Reliability
Corporation (NERC) Reliability Standards, the new NAESB Base Contract
for Sale and Purchase of Voluntary Renewable Energy Certificates (NAESB
REC Contract), and standards to identify definitions for common grid
services to support distributed energy resource interactions in
response to a request submitted by the DOE, Lawrence Berkeley National
Laboratory (Berkeley Lab), and Pacific Northwest National Laboratory
(PNNL). Additionally, the WEQ Version 004 Standards include
modifications applied to Open Access Same-Time Information Systems
(OASIS) Business Practice Standards, the Coordinate Interchange
Business Practice Standards, and the Abbreviations, Acronyms, and
Defined Terms.
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\3\ Standards for Bus. Practices & Commc'n Protocols for Pub.
Utils., Order No. 676-I, 85 FR 1051 (Feb. 25, 2020), 170 FERC ]
61,062 (2020); Standards for Bus. Practices & Commc'n Protocols for
Pub. Utils., No. 676-J, 86 FR 29491 (Jun. 2, 2021), 175 FERC ]
61,139 (2021).
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7. The Informational Report includes an overview of all standard
additions, modifications, and reservations applied to Version 004 of
the WEQ Business Practice Standards and summarizes the deliberations
that led to the changes. It also identifies changes to the existing
standards that were considered but not adopted.
8. On April 25, 2024, the Commission issued a notice of proposed
rulemaking (NOPR) proposing to amend its regulations to incorporate by
reference, with certain enumerated exceptions, the WEQ Version 004
Standards applicable to public utilities.\4\
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\4\ Standards for Bus. Pracs. & Commc'n Protocols for Pub.
Utils., notice of proposed rulemaking, 89 FR 37147 (May 6, 2024),
187 FERC ] 61,033 (2024) (NOPR).
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III. Comments on the NOPR
9. On July 2, 2024, Idaho Power Company (Idaho Power) submitted
comments on the NOPR noting three discrepancies between the Version
Notes for the WEQ Version 004 Standards and the noticed WEQ Version 004
Standards, which it asserts require correction.\5\ First, Idaho Power
requests ``clarification regarding whether Transmission Providers `may'
or `may not' impose restrictions regarding the submission times and/or
service duration of a Consolidation.'' \6\ Specifically, Idaho Power
notes that ``[i]n the Version Notes for Version 004, NAESB states that
for standard WEQ 001-24.2.4 the intent was to replace `OASIS shall'
with `may' and did not include removing the word `not' which follows
`shall.' '' \7\ Idaho Power asserts
[[Page 10789]]
that the word ``not'' was removed in Version 004, which ``provides the
opposite meaning of the standard and further clarification is needed to
resolve whether the Version Notes description of the change or Version
004 is correct.'' \8\ Second, Idaho Power notes that ``Version Notes
for 004 regarding standard WEQ 001-24.2.4 states that the word
`consistent' is to be added to the standard, yet the word `consent' was
added instead, which appears to be a typographical error.'' \9\ Thus,
Idaho Power's comments sought clarification that the new standards
establish that restrictions imposed by Transmission Providers are to be
consistent with regulations and filed tariff provisions. Third and
finally, Idaho Power notes that there was a ``misnumbering that
occurred with the addition of two new standards, [specifically]
[s]tandards WEQ 002-101.2.10.3.3 and WEQ 002-101.2.10.3.4 are new
standards that were placed after WEQ 022-101.2.10.4,'' rather than
before.\10\
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\5\ Idaho Power Comments at 1.
\6\ Id.
\7\ Id. at 2.
\8\ Id.
\9\ Id.
\10\ Id.
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10. On July 5, 2024, in response to Idaho Power's comments, NAESB
proposed to its members Minor Correction MC24004 (Minor Correction) and
identified publication errors that did not impact standards
language.\11\ In response to Idaho Power's first concern, NAESB states
that Minor Correction MC24004 corrects an inadvertent typographical
error to standards changes that were adopted and ratified by NAESB that
included the addition of a new phrase ``consistent with regulations and
filed tariffs'' at the end of the WEQ-001-24.2.4. However, it notes
that in applying the ratified changes, the word ``consistent'' was
inadvertently replaced with the word ``consent.'' The minor correction
addresses this error and modifies the language to be consistent with
the language ratified by NAESB membership on November 18, 2022.\12\
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\11\ NAESB July 5 Minor Correction Filing at 1.
\12\ Id.
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11. To address Idaho Power's other concerns, NAESB states that WEQ
Version 004--WEQ-002-101.2.10.3.3 and WEQ-002-101.2.10.3.4--were
ordered incorrectly and also notes that the WEQ Version 004 Notes for
the changes made to WEQ-001-24.2.4 mistakenly omitted that ``not'' was
deleted from the standard. NAESB further states that as these changes
do not modify standards language, a minor correction is not needed, and
it has taken administrative action to correct the errors.\13\
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\13\ NAESB July 5 Minor Correction Filing at 2.
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IV. Discussion
A. The NAESB WEQ Version 004 Standards
12. We adopt the NOPR proposal to amend Commission regulations at
18 CFR 2.27 and 38.1(b) to incorporate by reference, with certain
enumerated exceptions, the WEQ Version 004 Standards. The Commission is
incorporating by reference into the Commission's regulations at 18 CFR
38.1(b) the WEQ Version 004 Standards, with certain enumerated
exceptions, which include modifications, reservations, and/or additions
to the following set of existing standards that the Commission
previously incorporated by reference, as well as one new standard (WEQ-
024) relating to cyber-security:
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Standard No. Business practice standards
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WEQ-000........................... Abbreviations, Acronyms, and
Definition of Terms.
WEQ-001........................... OASIS.
WEQ-002........................... OASIS Standards and Communication
Protocol (S&CP).
WEQ-003........................... OASIS Data Dictionary.
WEQ-004........................... Coordinate Interchange.
WEQ-005........................... Area Control Error Equation Special
Cases.
WEQ-006........................... Manual Time Error Correction.
WEQ-008........................... Transmission Loading Relief (TLR)--
Eastern Interconnection.
WEQ-012........................... Public Key Infrastructure (PKI).
WEQ-013........................... OASIS Implementation Guide.
WEQ-015........................... Measurement and Verification of
Wholesale Electricity Demand
Response.
WEQ-021........................... Measurement and Verification of
Energy Efficiency Products.
WEQ-022........................... Electric Industry Registry.
WEQ-023........................... Modeling.
WEQ-024........................... Cybersecurity Business Practice
Standards.
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13. The request for clarification presented by Idaho Power with
regard to WEQ-001-24.2.4 has been addressed via NAESB Minor Correction
MC24004. We are incorporating this revision.
14. Consistent with its past practice, as discussed further below,
the Commission is not incorporating by reference WEQ-010 Contracts
Related Business Practice Standards, WEQ-025 Grid Services Supporting
Wholesale Electric Interactions, the WEQ-009 Standards of Conduct for
Electric Transmission Providers, and the WEQ-014 WEQ/WGQ eTariff
Related Business Practice Standards.\14\
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\14\ Furthermore, WEQ-016, WEQ-017, WEQ-018, WEQ-019, and WEQ-
020 are listed informationally in Commission regulations as non-
mandatory guidance.
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15. The WEQ Version 004 Standards include standards that were
unchanged from previous Version 003.3 standards incorporated by
reference: WEQ-007 Inadvertent Interchange Payback Business Practice
Standards and WEQ-011, Gas/Electric Coordination. Likewise, the WEQ
Version 004 Standards include standards that were unchanged from the
previous Version 003.3 standards previously included in Commission
regulations as non-mandatory guidance: WEQ-016, Specifications for
Common Electricity Product and Pricing Definition; WEQ-017,
Specifications for Common Schedule Communication Mechanism for Energy
Transactions; WEQ-018, Specifications for Wholesale Standard Demand
Response Signals; WEQ-019, Customer Energy Usage Information
Communication; and WEQ-020, Smart Grid Standards Data Element
Table.\15\
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\15\ NOPR, 187 FERC ] 61,033 at PP 68-73.
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B. Specific Standards Incorporated by Reference
16. The following section summarizes the NAESB standards that the
Commission is incorporating by reference in this final rule. The
standards are further described in section VI.
[[Page 10790]]
1. Modifications in Response to Commission Order Nos. 676-I and 676-J
17. The WEQ Version 004 Standards contain modifications, prompted
by directives in Order Nos. 676-I and 676-J and related industry-
submitted standards requests, related to standards for redirection of
transmission service, time error correction, and contract path
management. Collectively, the revisions are designed to increase
flexibility for transmission providers so they can maximize use of the
transmission system while still preventing the provision of firm
transmission service that exceeds transfer capability.
a. Standards for Redirection of Transmission Service
18. NAESB revised the WEQ-001, WEQ-003, and WEQ-013 standards to
provide greater specificity regarding the transmission service
reservation process that applies to redirection of transmission service
(redirects) on a firm and non-firm basis.
b. Time Error Correction
19. NAESB revised WEQ-006 Manual Time Error Correction Business
Practice Standards to address commercial requirements for entities
calling for manual time error corrections in accordance with the NERC
Time Monitoring Reference Document Version 5.\16\
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\16\ Order No. 676-I, 170 FERC ] 61,062 at P 46.
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c. Contract Path Management
20. NAESB modified the WEQ-023 Modeling Business Practice Standards
to allow the contract path limit to be exceeded for a certain period of
time prior to the start of flow.\17\ Specifically, the revisions to
WEQ-023-1.4 and WEQ-023-1.4.1 will better accommodate individual
transmission provider business practices that may, for scheduling
efficiency purposes, allow a contract path limit to be exceeded for a
certain period prior to the implementation of the interchange
schedule.\18\
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\17\ Informational Report at 8.
\18\ Informational Report at 8.
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2. Modifications To Support Cybersecurity for the Wholesale Electric
Industry
21. In addition to proposing a new set of standards, WEQ-024
Cybersecurity Business Practice Standards, NAESB made modifications to
WEQ-012 to support the issuance of server-side or transport layer
security certificates by NAESB Authorized Certification Authorities
(ACA).
22. The modifications to WEQ-012 standards incorporate best
industry practices regarding the issuance of server-side or transport
layer security server certificates by a certificate authority and allow
a NAESB ACA to issue code-signing certificates that can be used to
verify software and other executables in support of the NERC CIP-010
Security--Configuration Change Management and Vulnerability Assessments
Reliability Standard.
3. Modifications To Complement NERC Reliability Standards
23. WEQ Version 004 Standards include revisions to the NAESB
standards to complement the NERC Reliability Standards, including
modifications to be consistent with the NERC Glossary. The changes were
made to provide further clarity on the incorporation of jointly owned
units into the Area Control Error (ACE) equation and to ensure
consistency in the use of terminology between the WEQ Business Practice
Standards and the NERC Dynamic Transfer Reference Document, which
provides reliability guidance on the use of pseudo-ties and dynamic
schedules in a balancing authority's ACE equations.
4. Modifications to the WEQ OASIS Business Practice Standards
24. In addition to the OASIS modifications referenced previously,
NAESB completed nine final actions modifying the OASIS suite of
Business Practice Standards.
a. Eligibility and Treatment of Rollover Rights
25. NAESB developed modifications to the WEQ OASIS suite of
Business Practice Standards to address the eligibility and treatment of
rollover rights \19\ as part of the standards supporting Network
Integration Transmission Service (NITS).\20\ The new and revised
standards define if, and when, rollover rights are assigned, update
posting requirements and establish supporting template structures, and
create dynamic notifications within OASIS for rollover rights.
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\19\ A Rollover Right is the option held by an existing firm
transmission service customer to continue to take transmission
service after a contract term expires. The contract ``rolls over''
or is, in effect, renewed. Promoting Wholesale Competition Through
Open Access Non-Discriminatory Transmission Servs. by Pub. Utils.;
Recovery of Stranded Costs by Pub. Utils. & Transmitting Utils.,
Order No. 888, 61 FR 21540 at 21604 (May 10, 1996), FERC Stats. &
Regs. ] 31,036 (1996) (cross-referenced at 75 FERC ] 61,080), order
on reh'g, Order No. 888-A, 62 FR 12274 (Mar. 14, 1997), FERC Stats.
& Regs. ] 31,048 (cross-referenced at 78 FERC ] 61,220), order on
reh'g, Order No. 888-B, 81 FERC ] 61,248 (1997), order on reh'g,
Order No. 888-C, 82 FERC ] 61,046 (1998), aff'd in relevant part sub
nom. Transmission Access Pol'y Study Grp. v. FERC, 225 F.3d 667
(D.C. Cir. 2000), aff'd sub nom. New York v. FERC, 535 U.S. 1
(2002).
\20\ The standards addressing rollover rights for point-to-point
transmission service were included in the WEQ Version 003.2
Standards, which were incorporated by reference in Order No. 676-I,
85 FR 10571 (February 25, 2020).
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b. Submission of Variables Associated with NITS
26. Several modifications were made to WEQ-002 and WEQ-003 to give
users the ability to submit specific lists of variables associated with
NITS as part of the query/response functionality in OASIS templates.
c. Provide Consistency Between Standards Language
27. Modifications were made to WEQ-001 to provide greater
consistency between the standards language included in WEQ-001-9.2 and
WEQ-001-9.4.3 and WEQ-001-B Appendix B--Redirect Business Practice
Standards Examples.
d. Improvements for OASIS Node Users
28. NAESB revised WEQ-002, WEQ-003, and WEQ-013 to establish a
mechanism that enables OASIS node users to identify--in a single
location--all service modifications made to an original transmission
service request reservation.
e. Better Support Posting Requirements
29. NAESB developed modifications to WEQ-001 to better support
transmission service posting requirements, included as part of 18 CFR
37.6, by adding specificity regarding the treatment of consolidations
of transmission service requests. The revisions to the standards are
designed to ensure parity between consolidated and non-consolidated
transmission service requests and to eliminate the potential for a
service increment to be created through consolidation that would
otherwise be unavailable under a transmission provider's existing
tariff processes.
f. Provide Greater Clarity Regarding Priorities Between a Firm
Transmission Service Request and a Previously Queued Non-Firm Request
30. NAESB modified WEQ-001 by modifying Table 25-3, Priorities for
Competing Reservations or Requests, to better describe how a
competition is conducted between a firm transmission service request
and a previously queued non-firm request or reservation.
[[Page 10791]]
g. Response Timing Standards
31. To extend response times for some functions to account for
human performance, NAESB modified the timing tables included in WEQ-
001-4.13, WEQ-001-25.1.8, and WEQ-001-105.1.5 to extend specific timing
criteria for instances in which systems are not fully automated. These
changes will be available for transmission providers and operators who
do not have automated systems for responding to transmission service
requests and will extend timing requirements that are deemed
unreasonably strict for non-automated implementations.
h. Provide Greater Clarity for Transmission Customers
32. NAESB modified the WEQ OASIS suite of Business Practice
Standards to provide greater clarity for transmission customers on
which redirect requests would qualify for the conveyance of rollover
rights. As part of the revisions, transmission customers are required
to explicitly indicate their intent to convey rollover rights to the
redirect path by expressly opting-in or opting-out of the conveyance,
eliminating the possibility that rollover rights could be
unintentionally redirected.
i. Improve Efficiencies by Creating a Tracking and Audit Mechanism for
Transmission Service Reservations
33. NAESB revised the WEQ OASIS suite of Business Practice
Standards to improve efficiencies by creating a tracking and audit
mechanism for transmission service reservations that allows
transmission providers and customers to easily assess changes that
occur as a result of the preemption and right-of-first-refusal process.
5. Modifications to Coordinate Interchange Standards
34. NAESB revised the WEQ-004 Coordinate Interchange Business
Practice Standards to promote efficiency by streamlining the procedures
that entities should follow in the event of a system failure of the
primary communication method used to manage interchange transactions--
electronic tags (e-Tags).
35. NAESB also modified the WEQ-000 and WEQ-004 standards. The
revisions add a new appendix to WEQ-004 to provide guidance and best
practices to entities in the Eastern Interconnection that automate the
net scheduled interchange checkout process.
6. Modifications to Abbreviations, Acronyms, and Defined Terms
36. In addition to the consistency changes described above
regarding WEQ-000, the WEQ Version 004 Standards publication includes a
new cross-reference column displaying the abbreviations, acronyms, and
definition of terms with their corresponding NAESB WEQ Standards.
Additional changes to ensure consistency in the use of abbreviations,
acronyms, and defined terms were made to the WEQ OASIS Suite of
Standards, WEQ-004 Coordinate Interchange Business Practice Standards,
WEQ-008 TLR--Eastern Interconnection Business Practice Standards, WEQ-
012 PKI Business Practice Standards, WEQ-022 Electric Industry Registry
(EIR) Business Practice Standards, and WEQ-023 Modeling Business
Practice Standards.
7. Minor Corrections
37. Since the publication of WEQ Version 003.3 standards, NAESB
processed ten minor corrections applicable to the WEQ Business Practice
Standards through its Minor Correction Process and incorporated them
into the WEQ Version 004 Standard. The Commission also is incorporating
by reference WEQ-001,Version 004, which includes Minor Correction
MC24004 to standard WEQ-001-24.2.4 approved by the WEQ on August 9,
2024, as discussed above.
8. New Set of Cybersecurity Standards
38. In the WEQ Version 004 Standards, NAESB established a new set
of cybersecurity-related business practice standards in WEQ-024. This
new set of standards reorganizes existing NAESB cybersecurity business
practice standards into a new suite of NAESB standards. NAESB made this
change in response to an informal recommendation from the DOE and
Sandia Labs that arose from the 2019 Surety Assessment of cybersecurity
elements contained in the NAESB Business Practice Standards.
C. Standards That Will Not Be Incorporated by Reference
39. This final rule adopts the NOPR proposal to decline to
incorporate by reference WEQ-009, WEQ-010, WEQ-014, and WEQ-025.
40. Declining to adopt WEQ-010 is consistent with our past practice
of not incorporating by reference into our regulations any optional
model contracts and related documents because we do not require the use
of such contracts.
41. As stated in the NOPR, although we support NAESB's standards
development for grid services, we decline to incorporate the WEQ-025
standards. We note that the proposed NAESB standards use terms that are
similar to, but different from, terms in the pro forma OATT that could
introduce confusion if the Commission were to incorporate these
standards by reference.
42. Additionally, we decline to incorporate by reference the WEQ-
009 Standards of Conduct for Electric Transmission Providers, which
NAESB has eliminated as they duplicate the Commission's regulations. We
also decline to incorporate by reference the WEQ-014 WEQ/WGQ eTariff
Related Business Practice Standards, which provide an implementation
guide describing the various mechanisms, data tables, code values/
reference tables, and technical specifications used in the submission
of electronic tariff filings to the Commission, because such
submissions are governed by the Commission's eTariff regulations.
D. Implementation Procedures
43. In the NOPR, the Commission proposed that public utilities \21\
whose tariffs do not automatically incorporate by reference all new
NAESB standards without modification must submit compliance filings on
the proposed NAESB standards nine months after publication of a final
rule in the Federal Register.\22\ The Commission stated that those
compliance filings must reflect the requirements of the final rule, any
new waiver requests to comply with a part of the final rule, and any
request to preserve any existing waivers. The Commission also proposed
separate implementation schedules for the NAESB cybersecurity standards
in WEQ Version 004 and for the remainder of the WEQ Version 004
standards.\23\ In particular, the Commission proposed to require
transmission providers to implement the NAESB cybersecurity standards
in WEQ Version 004 within 12 months from the date of publication in the
Federal Register of any final rule. The Commission proposed to require
transmission providers to implement the remainder of the WEQ Version
004 standards adopted in this final rule within 18 months from the date
of publication in the Federal Register of any final rule.
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\21\ We continue to require those entities with reciprocity
tariffs to modify their tariffs to include the WEQ Version 004
standards that we are incorporating by reference.
\22\ NOPR, 187 FERC ] 61,033 at P 45.
\23\ Id. P 46.
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44. We adopt the proposed implementation procedures in the NOPR
with one modification. We direct
[[Page 10792]]
public utilities whose tariffs do not automatically incorporate by
reference all new NAESB standards without modification to submit their
compliance filings no later than one hundred twenty (120) days after
the date of publication of the final rule in the Federal Register,
rather than the nine-month timeframe proposed in the NOPR. We believe
that the detailed guidance that we provide below concerning the
compliance filing process will simplify that process and will
significantly reduce the work required to submit these compliance
filings and, thus, supports the shortened timeframe to file the
compliance filings.
45. To reflect the staggered implementation schedule, public
utilities whose tariffs do not automatically incorporate by reference
all new NAESB standards without modification must submit a single
compliance filing that includes two separate tariff records in eTariff
to comply with the requirements of this final rule.\24\ Appendices 1
and 2 provide examples of the tariff records that should be filed
through eTariff. The first tariff record must contain a proposed
effective date 12 months after the date of publication of the final
rule in the Federal Register. This tariff record requires the
implementation of WEQ-024, Cybersecurity (Version 004, July 31, 2023)
while continuing in effect the prior Version 003.3 standards. The
second tariff must contain a proposed effective date effective date 18
months after the date of publication of the final rule in the Federal
Register. This tariff record will require implementation of all the WEQ
Version 004 standards adopted in the final rule.\25\
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\24\ The compliance filings should be filed electronically in
Tariff portal using Filing Code 80.
\25\ Both tariff records must be filed using the same record ID
as the currently effective tariff record, but with different
proposed effective dates as described above.
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46. In their compliance filings, public utilities must specify in
the tariff records a list of all the NAESB standards incorporated by
reference by the Commission, and also must include: (a) whether the
standard is incorporated by reference by the public utility; (b) for
those standards not incorporated by reference, the tariff provision
that complies with the standard; and (c) a statement identifying any
standards for which the public utility has been granted a waiver,
extension of time, or other variance with respect to compliance with
the standard.
47. In such a compliance filing, a public utility that makes any
new waiver requests to comply with a part of the final rule or that
makes any request to preserve any existing waivers must include such
requests in its compliance filing. We encourage public utilities with
waiver requests to submit their compliance filings early. Public
utilities that are granted new or continued waiver(s) of any WEQ
Version 004 standard(s) must make a second compliance filing to include
the citation to the Commission order granting the waiver(s) of the
relevant WEQ Version 004 standards no later than sixty (60) days after
the waiver(s) are granted.
48. Those public utilities who have previously revised their
tariffs to incorporate the complete set of NAESB standards without
modification must implement: (1) the NAESB cybersecurity standards in
WEQ Version 004 12 months after the date of publication of the final
rule in the Federal Register; and (2) the remainder of the WEQ Version
004 standards adopted in this final rule 18 months after the date of
publication of the final rule in the Federal Register.
49. Public utilities that now wish to comply with the final rule by
incorporating the complete set of NAESB standards into their tariffs
without modification may do so by submitting compliance filings that
include the following language in their tariffs: ``The current versions
of the NAESB WEQ Business Practice Standards incorporated by reference
into the Commission's regulations as specified in Part 38 of the
Commission's regulations (18 CFR Part 38) are incorporated by reference
into this tariff.''
50. Public utilities that submit this compliance filing to
incorporate the complete set of NAESB standards into their tariffs
without modification and public utilities that have previously
incorporated the complete set of NAESB standards into their tariffs
without modification must implement: (1) the NAESB cybersecurity
standards in WEQ Version 004 12 months after the date of publication of
the final rule in the Federal Register; and (2) the remainder of the
WEQ Version 004 standards adopted in this final rule 18 months after
the date of publication of the final rule in the Federal Register.
V. Notice of Use of Voluntary Consensus Standards
51. Office of Management and Budget Circular A-119 (section 11)
(Feb. 10, 1998) provides that when a Federal agency issues or revises a
regulation containing a standard, the agency should publish a statement
in the final rule stating whether the adopted standard is a voluntary
consensus standard or a government-unique standard. In this final rule,
the Commission is incorporating by reference voluntary consensus
standards developed by NAESB's WEQ. In section 12(d) of the National
Technology Transfer and Advancement Act of 1995, Congress affirmatively
requires Federal Agencies to use technical standards developed by
voluntary consensus standards organizations, such as NAESB, as a means
of carrying out policy objectives or activities unless use of such
standards would be inconsistent with applicable law or otherwise
impractical.\26\
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\26\ Public Law 104-113, 12(d), 110 Stat. 775 (1996), 15 U.S.C.
272 note (1997).
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VI. Incorporation by Reference
52. The Office of the Federal Register requires agencies
incorporating material by reference in final rules to discuss, in the
preamble of the final rule, the ways that the materials it incorporates
by reference are reasonably available to interested parties and how
interested parties can obtain the materials.\27\ We do so below.
---------------------------------------------------------------------------
\27\ 1 CFR 51.5. See Incorporation by Reference, 79 FR 66267
(Nov. 7, 2014).
---------------------------------------------------------------------------
53. The regulations also require agencies to summarize, in the
preamble of the final rule, the material it incorporates by
reference.\28\ We summarize that material below. The standards we are
incorporating by reference in this final rule consist of suites of
NAESB WEQ Version 004 business practice standards that address a
variety of topics and are designed to aid public utilities with the
consistent and uniform implementation of requirements promulgated by
the Commission as part of the pro forma Open Access Transmission
Tariff. The standards we are incorporating by reference in this final
rule can be summarized as follows:
---------------------------------------------------------------------------
\28\ Id.
---------------------------------------------------------------------------
54. The WEQ-000 Abbreviations, Acronyms, and Definition of Terms
Business Practice Standards provide a single location for all
abbreviations, acronyms, and defined terms referenced in the WEQ
Business Practice Standards. These standards provide common
nomenclature for terms within the wholesale electric industry, thereby
reducing confusion and opportunities for misinterpretation or
misunderstandings among industry participants.
55. The OASIS suite of business practice standards (WEQ-001 Open
Access Same-Time Information Systems (OASIS), WEQ-002 OASIS Standards
and Communication Protocols, WEQ-003 OASIS Data Dictionary, and WEQ-013
OASIS Implementation Guide)
[[Page 10793]]
support the FERC posting and reporting requirements that provide
information about each transmission provider's performance of the
requirements of its pro forma OATT. The OASIS system is used for
scheduling transmission on the bulk power system, comprises the
computer systems and associated communications facilities that public
utilities are required to provide for the purpose of making available
to all transmission users comparable interactions, and provides
transmission service information and any back-end supporting systems or
user procedures that collectively perform the transaction processing
functions for handling requests on OASIS. These standards establish
business practices and communication protocols that provide for
consistent implementation across OASIS sites as well as consistent
methods for posting to OASIS.
56. The WEQ-001 OASIS Business Practice Standards define the
general and specific transaction processing requirements and related
business processes required for OASIS. The standards detail
requirements related to standard terminology for transmission and
ancillary services, attribute values defining transmission service
class and type, ancillary and other services definitions, OASIS
registration procedures, procurement of ancillary and other services,
path naming, next-hour market service, identical transmission service
requests, redirects, resales, transfers, OASIS postings, procedures for
addressing Available Transfer Capability or Available Flowgate
Capability methodology questions, rollover rights, conditional
curtailment option reservations, auding usage of Capacity Benefit
Margin, coordination of requests for service across multiple
transmission systems, consolidation, the preemption and right-of-first
refusal process, and NITS requests.
57. The WEQ-002 OASIS Business Practice Standards and Communication
Protocol (S&CP) define the technical standards for OASIS. These
standards detail network architecture requirements, information access
requirements, OASIS and point-to-point interface requirements,
implementation, and NITS interface requirements.
58. The WEQ-003 OASIS Data Dictionary Business Practice Standards
define the data element specifications for OASIS.
59. The WEQ-004 Coordinate Interchange Business Practice Standards
define the commercial processes necessary to facilitate interchange
transactions via Request for Interchange and specify the arrangements
and data to be communicated by the entity responsible for authorizing
the implementation of such transactions (the entities responsible for
balancing load and generation).
60. The WEQ-005 Area Control Error (ACE) Equation Special Cases
Business Practice Standards define commercial-based requirements
regarding the obligations of a balancing authority to manage the
difference between scheduled and actual electrical generation within
its control area. Each balancing authority manages its ACE in
accordance with the NERC Reliability Standards. These standards detail
requirements for jointly owned utilities, supplemental regulation
service, and load or generation transfer by telemetry.
61. The WEQ-006 Manual Time Error Correction Business Practice
Standards specifies the Manual Time Error Correction procedures to be
used for reducing the frequency drifting error to within acceptable
limits of true time.
62. The WEQ-007 Inadvertent Interchange Payback Business Practice
Standards define the methods in which inadvertent energy is paid back,
mitigating the potential for financial gain through the misuse of
paybacks for inadvertent interchange. Inadvertent interchange is
interchange that occurs when a balancing authority cannot fully balance
generation and load within its area. The standards allow for the
repayment of any imbalances through bilateral in-kind payback,
unilateral in-kind payback, or other methods as agreed to. WEQ-007 was
not modified by the WEQ Version 004 Standards.
63. The WEQ-008 Transmission Loading Relief (TLR)-Eastern
Interconnection Business Practice Standards define the business
practices for cutting transmission service during a TLR event. These
standards detail requirements for the use of interconnection-wide TLR
procedures, interchange transaction priorities for use with
interconnection-wide TLR procedures, and the Eastern Interconnection
procedure for physical curtailment of interchange transactions.
64. The WEQ-011 Gas/Electric Coordination Business Practice
Standards define communication protocols intended to improve
coordination between the gas and electric industries in daily
operational communications between transportation service providers and
gas-fired power plants. The standards include requirements for
communicating anticipated power generation fuel for the upcoming day as
well as any operating problems that might hinder gas-fired power plants
from receiving contractual gas quantities. WEQ-011 was not modified by
the WEQ Version 004 Standards.
65. The WEQ-012 Public Key Infrastructure (PKI) Business Practice
Standards establish the cybersecurity framework for parties partaking
in transactions via a transmission provider's OASIS or e-Tagging
system. The NAESB PKI framework secures wholesale electric market
electronic commercial communications via encryption of data and the
electronic authentication of parties to a transaction using a digital
certificate issued by a NAESB certified certificate authority. The
standards define the requirements for parties utilizing the digital
certificates issued by the NAESB certificate authorities.
66. The WEQ-013 OASIS Implementation Guide Business Practice
Standards detail the implementation of the OASIS Business Practice
Standards. The standards detail requirements related to point-to-point
OASIS transaction processing, OASIS template implementation, preemption
and right-of-first-refusal processing, NITS application and
modification of service processing, and secondary network transmission
service.
67. The WEQ-015 Measurement and Verification (M&V) of Wholesale
Electricity Demand Response (DR) Business Practice Standards define a
common framework for transparency, consistency, and accountability
applicable to the measurement and verification of wholesale electric
market demand response practices. The standards describe performance
evaluation methodology and criteria for the use of equipment,
technology, and procedures to quantify the demand reduction value--the
measurement of reduced electrical usage by a demand resource.
68. The WEQ-021 Measurement and Verification (M&V) of Energy
Efficiency Products Business Practice Standards define a common
framework for transparency, consistency, and accountability applicable
to the measurement and verification of wholesale electric market energy
efficiency practices. The standards establish energy efficiency
measurement and verification criteria and define requirements for
energy efficiency resource providers for the measurement and
verification of energy efficiency products and services offered in the
wholesale electric markets.
69. The WEQ-022 Electric Industry Registry Business Practice
Standards define the business requirements for entities utilizing
NAESB-managed Electric Industry Registry (EIR), a wholesale electric
industry tool that
[[Page 10794]]
serves as the central repository for information needed in the
scheduling of transmission through electronic transactions. The
standards describe the roles within EIR, registration requirements, and
cybersecurity.
70. The WEQ-023 Modeling Business Practice Standards provide
technical details concerning the calculation of ATC for wholesale
electric transmission services. The WEQ-023 standards are intended to
address the aspects of certain of the NERC MOD A Reliability Standards
relating to modeling, data, and analysis that are included in NERC's
proposed retirement of its MOD A Reliability Standards.
71. The WEQ-024 Cybersecurity Business Practice Standards is a new
suite of standards established to include and maintain all
cybersecurity related requirements not included within the PKI business
standards.
72. The following standards are incorporated as non-mandatory
guidance: WEQ-016, Specifications for Common Electricity Product and
Pricing Definition standards address the business objectives and
context for capturing the attributes associated with electricity price
and product signals as part of the Smart Grid implementation, which is
called for by National Institute of Standards and Technology (NIST)
standards.
73. WEQ-017, Specifications for Common Schedule Communication
Mechanism standards contain a set of specifications relating to the use
of date- and time-based data elements that are commonly used in
transactions for Demand Response programs.
74. WEQ-018, Specifications for Wholesale Standard Demand Response
Signals standards address the business objectives and context for
standardizing signals for demand response and distributed energy
resources as part of the Smart Grid implementation, which is called for
by NIST standards.
75. WEQ-019, Customer Energy Usage Information Communication
standards establish the Business Practice Standards for end-use energy
usage information communication.
76. WEQ-020, Smart Grid Standards Data Element Table standards
contain the list of data elements used in Business Practice Standards
WEQ-016 and WEQ-018.
77. As required by the Office of Federal Register regulations, the
NAESB standards we incorporate by reference are reasonably available to
interested parties and under the Commission's regulations, copies of
the standards incorporated by reference may be obtained through
purchase or otherwise from the North American Energy Standards Board,
801 Travis Street, Suite 1675, Houston, TX 77002, Phone: (713) 356-
0060, website: https://www.naesb.org/. The standards can also be
reviewed without purchasing them.
78. The procedures used by NAESB make its standards reasonably
available to those affected by Commission regulations, which generally
is comprised of entities that have the means to acquire the information
they need to effectively participate in Commission proceedings.
Participants can join NAESB, for an annual membership cost of $8,000,
which entitles them to full participation in NAESB and enables them to
obtain these standards at no additional cost. Non-members may obtain
any of the ten individual standards manuals for $250 per manual, which
in the case of these standards would total $2,500 for all ten manuals.
Non-members also may obtain the complete set of Standards Manuals for
$2,000.
79. NAESB provides ample opportunities for non-members, including
agents, subsidiaries, and affiliates of NAESB members, to obtain access
to the copyrighted standards through a no-cost limited copyright
waiver. The limited copyright waivers are issued by the NAESB office
and are granted to non-members on a case-by-case basis for the purpose
of evaluating standards prior to purchase and/or reviewing the
standards to prepare comments to a regulatory agency. Following the
granting of a limited copyright waiver, the non-member is provided with
read-only access to the standards through the end of the comment period
or some other set period of time via Locklizard Safeguard Secure
Viewer.\29\ NAESB will grant one limited copyright wavier per company
for each set of standards or final actions. Any entity seeking a
limited copyright waiver should contact the NAESB office.
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\29\ For more information on Locklizard, please refer to the
company's website: www.locklizard.com.
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VII. Information Collection Statement
80. The following collection of information contained in this final
rule is subject to review by the Office of Management and Budget (OMB)
under section 3507(d) of the Paperwork Reduction Act of 1995, 44 U.S.C.
3507(d).\30\ OMB's regulations require approval of certain information
collection requirements imposed by agency rules.\31\ Upon approval of a
collection(s) of information, OMB will assign an OMB control number and
an expiration date. Respondents subject to the filing requirements of
this rule will not be penalized for failing to respond to these
collections of information unless the collections of information
display a valid OMB control number.
---------------------------------------------------------------------------
\30\ 44 U.S.C. 3507(d).
\31\ 5 CFR 1320.11.
---------------------------------------------------------------------------
81. The Commission solicited comments on the Commission's need for
this information, whether the information will have practical utility,
the accuracy of the provided burden estimates, ways to enhance the
quality, utility, and clarity of the information to be collected, and
any suggested methods for minimizing respondents' burden, including the
use of automated information techniques.
82. The following burden estimate is based on the projected costs
for the industry to implement the new and revised business practice
standards adopted by NAESB and proposed to be incorporated by reference
in the final rule.\32\ The NERC Compliance Registry, as of December
2023 identifies approximately 216 entities in the United States that
are subject to this final rule.
---------------------------------------------------------------------------
\32\ Commission staff estimated that industry is similarly
situated in terms of hourly cost (wages plus benefits). Based on the
Commission average cost (wages plus benefits) for 2024, $100.00 is
used.
Docket Nos. RM05-5-031
----------------------------------------------------------------------------------------------------------------
Average burden Total annual
Number of Annual number of Total number (hrs.) & cost burden hrs. &
respondents responses per of responses ($) per total annual
respondent response cost ($)
(1) (2) (1) * (2) = (4)............ (3) * (4) = (5)
(3)
----------------------------------------------------------------------------------------------------------------
FERC-516E................... 216 1 216 6 hrs.; $600... 1,296 hrs.;
$129,600.
FERC-717.................... 216 1 216 30 hrs.; $3,000 6,480 hrs.;
$648,000.
-----------------------------------------------------------------------------------
[[Page 10795]]
Total................... .............. ................ .............. $3,600......... 7,776 hrs.;
$777,600.
----------------------------------------------------------------------------------------------------------------
Costs to Comply with Paperwork Requirements:
The estimated annual costs are as follows:
FERC-516E: 216 entities x 1 response/entity x (6 hours/response x
$100.00/hour) =$129,600
FERC-717: 216 entities x 1 response/entity x (30 hours/response x
$100.00/hour) = $648,000
Titles: FERC-516E, Electric Rate Schedule and Tariff Filings and
FERC-717, Standards for Business Practices and Communication Protocols
for Public Utilities.
Action: Proposed amendment to regulations pertaining to the
existing collections of information FERC-516E and FERC-717.
OMB Control Nos: 1902-0290 (FERC-516E) and 1902-0173 (FERC-717).
Respondents: Business or other for-profit, and not-for-profit
institutions.
Frequency of Responses: On occasion.
Necessity of the Information: This final rule will amend the
Commission's regulations to incorporate by reference, with certain
enumerated exceptions, the NAESB WEQ Version 004 Standards. The
standards include those that were developed in accordance with
recommendations of the DOE-sponsored cybersecurity surety assessment of
the NAESB Business Practice Standards that was conducted in 2019.
Additional standards were developed in response to the directives from
Order Nos. 676-I and 676-J. NAESB undertook two standards development
efforts to update the WEQ-004 Coordinate Interchange Standards in the
WEQ Version 004 Standards publication. The first set of modifications
clarify existing back-up procedures for e-Tagging, improve efficiencies
by removing requirements that supported outdated methods of
communication, and streamline the processes following system
communication failures. Through the second effort, NAESB modified WEQ-
004 to provide guidance to balancing authorities in the Eastern
Interconnection seeking to automate their net scheduled interchange
checkout process. The revisions made by NAESB in the WEQ Version 004
Standards are designed to aid public utilities with the consistent and
uniform implementation of requirements promulgated by the Commission as
part of the pro forma Open Access Transmission Tariff.
Internal review: The Commission has reviewed NAESB's proposal and
has made a preliminary determination that the Version 004 standards
that the Commission incorporates by reference are both necessary and
useful. In addition, the Commission has determined through internal
review that there is specific, objective support for the burden
estimates associated with the information requirements.
83. Interested persons may obtain information on the reporting
requirements by contacting the Federal Energy Regulatory Commission,
Office of the Executive Director, 888 First Street NE, Washington, DC
20426; attention: Kayla Williams, email: [email protected], phone:
(202) 502-8663.
84. Comments concerning the collection of information(s) and the
associated burden estimate(s) should be sent to the Commission at this
docket and be emailed to the Office of Management and Budget, Office of
Information and Regulatory Affairs; attention: Desk Officer for the
Federal Energy Regulatory Commission. For security reasons, comments
should be sent by email to OMB at the following email address:
[email protected]. Please refer to Docket No. RM05-5-031, and
OMB Control Nos. 1902- 0290 (FERC-516E) and 1902-0173 (FERC-717), in
your submission.
VIII. Environmental Analysis
85. The Commission is required to prepare an Environmental
Assessment or an Environmental Impact Statement for any action that may
have a significant adverse effect on the human environment.\33\ The
actions that we take here fall within categorical exclusions in the
Commission's regulations for rules that are clarifying, corrective, or
procedural, for information gathering, analysis, and dissemination, and
for sales, exchange, and transportation of electric power that requires
no construction of facilities.\34\ Therefore, an environmental
assessment is unnecessary and has not been prepared in this final rule.
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\33\ Regulations Implementing the National Environmental Policy
Act, Order No. 486, 52 FR 47897 (Dec. 17, 1987), FERC Stats. & Regs.
Preambles 1986-1990 ] 30,783 (1987) (cross-referenced at 41 FERC ]
61,284).
\34\ See 18 CFR 380.4(a)(2)(ii) and (a)(5) and (27) (2022).
---------------------------------------------------------------------------
IX. Regulatory Flexibility Act
86. The Regulatory Flexibility Act of 1980 (RFA) \35\ generally
requires a description and analysis of final rules that will have
significant economic impact on a substantial number of small entities.
The Commission is not required to make such an analysis if proposed
regulations would not have such an effect.
---------------------------------------------------------------------------
\35\ 5 U.S.C. 601-612.
---------------------------------------------------------------------------
87. The Small Business Administration (SBA) revised its size
standards (effective January 22, 2014) for electric utilities from a
standard based on megawatt hours to a standard based on the number of
employees, including affiliates. Under SBA's standards, some
transmission owners will fall under the following category and size
threshold: electric bulk power transmission and control, at 500
employees.\36\ The Commission estimates that 24 of the 216 respondents
are small or 11.1 percent of the respondents affected by this final
rule.
---------------------------------------------------------------------------
\36\ 13 CFR 121.201, Sector 22 (Utilities0, NAICS code 221121
(Electric Bulk Transmission and Control).
---------------------------------------------------------------------------
88. The Commission estimates that the impact on these entities is
consistent with the paperwork burden of $3,600 per entity used
above.\37\ The Commission does not consider $3,600 to be significant
economic impact. Based on the above, the Commission certifies that
implementation of the proposed Business Practice Standards will not
have a significant impact on a substantial number of small entities.
Accordingly, no initial regulatory flexibility analysis is required.
---------------------------------------------------------------------------
\37\ 36 hours at $100.00/hour=$3,600.
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X. Document Availability
89. In addition to publishing the full text of this document in the
Federal Register, the Commission provides all interested persons an
opportunity to
[[Page 10796]]
view and/or print the contents of this document via the internet
through the Commission's Home Page (www.ferc.gov/).
90. From the Commission's Home Page on the internet, this
information is available on eLibrary. The full text of this document is
available on eLibrary in PDF and Microsoft Word format for viewing,
printing, and/or downloading. To access this document in eLibrary, type
the docket number excluding the last three digits of this document in
the docket number field.
91. User assistance is available for eLibrary and the Commission's
website during normal business hours from FERC Online Support at 202-
502-6652 (toll free at 1-866-208-3676) or email at
[email protected], or the Public Reference Room; (202) 502-
8371, TTY (202)502-8659; email: [email protected].
XI. Effective Date and Congressional Notification
92. These regulations are effective April 28, 2025. Compliance
dates: Public utilities whose tariffs do not automatically incorporate
by reference all new NAESB standards without modification must submit a
compliance filing to comply with the requirements of this final rule
through eTariff no later than June 27, 2025.
93. Implementation dates: Public utilities must implement the
cybersecurity standards in WEQ Version 004 by February 27, 2026. Public
utilities must implement the remainder of the standards in WEQ Version
004 adopted in this final rule by August 27, 2026.
94. Incorporation by reference: The incorporation by reference of
certain publications listed in this rule is approved by the Director of
the Federal Register as of April 28, 2025.
95. The Commission has determined, with the concurrence of the
Administrator of the Office of Information and Regulatory Affairs of
OMB, that this rule is not a ``major rule'' as defined in section 351
of the Small Business Regulatory Enforcement Fairness Act of 1996. The
final rule will be submitted to the Senate, House, and Government
Accountability Office.
List of Subjects
18 CFR Part 2
Electric utilities, Natural gas, Pipelines, Reporting and
recordkeeping requirements.
18 CFR Part 38
Business practice standards, Electric utilities, Incorporation by
reference, Reporting and recordkeeping requirements.
By the Commission.
Issued: February 19, 2025.
Debbie-Anne A. Reese,
Secretary.
In consideration of the foregoing, the Commission amends 18 CFR
parts 2 and 38 as follows:
PART 2--GENERAL POLICY AND INTERPRETATIONS
0
1. The authority citation for part 2 continues to read as follows:
Authority: 5 U.S.C. 601; 15 U.S.C. 717-717z, 3301-3432; 16
U.S.C. 792-828c, 2601-2645; 42 U.S.C. 4321-4370h, 7101-7352.
0
2. Revise and republish Sec. 2.27 to read as follows:
Sec. 2.27 Availability of North American Energy Standards Board
(NAESB) Smart Grid Standards as non-mandatory guidance.
The Commission informationally lists the following NAESB Business
Practices Standards as non-mandatory guidance:
(a) WEQ-016, Specifications for Common Electricity Product and
Pricing Definition, (WEQ Version 004, July 31, 2023);
(b) WEQ-017, Specifications for Common Schedule Communication
Mechanism for Energy Transactions (WEQ Version 004, July 31, 2023);
(c) WEQ-018, Specifications for Wholesale Standard Demand Response
Signals (WEQ Version 004, July 31, 2023);
(d) WEQ-019, Customer Energy Usage Information Communication (WEQ
Version 004, July 31, 2023); and
(e) WEQ-020, Smart Grid Standards Data Element Table (WEQ Version
004, July 31, 2023).
(f) Copies of the standards in this section may be obtained from
the North American Energy Standards Board, 801 Travis Street, Suite
1675, Houston, TX 77002, Tel: (713) 356-0060. NAESB's website is at
https://www.naesb.org/.
PART 38--STANDARDS FOR PUBLIC UTILITY BUSINESS OPERATIONS AND
COMMUNICATIONS
0
3. The authority citation for part 38 continues to read as follows:
Authority: 16 U.S.C. 791-825r, 2601-2645; 31 U.S.C. 9701; 42
U.S.C. 7101-7352.
0
4. Amend Sec. 38.1 by revising paragraph (b) to read as follows:
Sec. 38.1 Incorporation by reference of North American Energy
Standards Board Wholesale Electric Quadrant standards.
* * * * *
(b) The material listed in this paragraph (b) is incorporated by
reference into this section with the approval of the Director of the
Federal Register under 5 U.S.C. 552(a) and 1 CFR part 51. All approved
material is available for inspection at the Federal Energy Regulatory
Commission and at the National Archives and Records Administration
(NARA). For assistance in viewing the material, contact the Federal
Energy Regulatory Commission at: 888 First Street NE, Washington, DC
20426; phone: 202-502-8371; email: [email protected];
website: www.ferc.gov. For information on the availability of this
material at NARA, visit www.archives.gov/federal-register/cfr/ibr-locations or email [email protected]. The material also may be
obtained from the North American Energy Standards Board at: 801 Travis
Street, Suite 1675, Houston, TX 77002; phone: (713) 356-0060; website:
www.naesb.org/:
(1) WEQ-000, Abbreviations, Acronyms, and Definition of Terms,
Version 004, July 31, 2023).
(2) WEQ-001, Open Access Same-Time Information Systems (OASIS),
Version 004, July 31, 2023, (including Minor Correction MC24002 applied
August 9, 2024).
(3) WEQ-002, Open Access Same-Time Information Systems (OASIS)
Business Practice Standards and Communication Protocol (S&CP), Version
004, July 31, 2023.
(4) WEQ-003, Open Access Same-Time Information Systems (OASIS) Data
Dictionary, Version 004, July 31, 2023.
(5) WEQ-004, Coordinate Interchange, Version 004, July 31, 2023.
(6) WEQ-005, Area Control Error (ACE) Equation Special Cases,
Version 004, July 31, 2023.
(7) WEQ-006, Manual Time Error Correction, Version 004, July 31,
2023.
(8) WEQ-007, Inadvertent Interchange Payback, Version 004, July 31,
2023.
(9) WEQ-008, Transmission Loading Relief (TLR)--Eastern
Interconnection, Version 004, July 31, 2023.
(10) WEQ-011, Gas/Electric Coordination, Version 004, July 31,
2023.
(11) WEQ-012, Public Key Infrastructure (PKI), Version 004, July
31, 2023.
(12) WEQ-013, Open Access Same-Time Information Systems (OASIS)
Implementation Guide, Version 004, July 31, 2023.
(13) WEQ-015, Measurement and Verification (M&V) of Wholesale
Electricity Demand Response (DR), Version 004, July 31, 2023.
[[Page 10797]]
(14) WEQ-021, Measurement and Verification (M&V) of Energy
Efficiency Products, Version 004, July 31, 2023.
(15) WEQ-022, Electric Industry Registry, Version 004, July 31,
2023.
(16) WEQ-023, Modeling, Version 004, July 31, 2023.
(17) WEQ-024, Cybersecurity, Version 004, July 31, 2023.
Note: The following appendices will not appear in the Code of
Federal Regulations.
Appendix 1: Tariff Record Incorporating the NAESB cybersecurity
standards, WEQ Version 004
The NAESB WEQ Business Practice Standards; Standards and Models
the Commission incorporates by reference, effective February 27,
2026, are as follows:
(i) WEQ-000, Abbreviations, Acronyms, and Definition of Terms
(WEQ Version 003.1, September 30, 2015) (including only the
definitions of Interconnection Time Monitor, Time Error, and Time
Error Correction);
(ii) WEQ-000, Abbreviations, Acronyms, and Definition of Terms
(WEQ Version 003.3, March 30, 2020);
(iii) WEQ-001, Open Access Same-Time Information Systems
(OASIS), (WEQ Version 003.3, March 30, 2020);
(iv) WEQ-002, Open Access Same-Time Information Systems (OASIS)
Business Practice Standards and Communication Protocols (S&CP), (WEQ
Version 003.3, March 30, 2020);
(v) WEQ-003, Open Access Same-Time Information Systems (OASIS)
Data Dictionary, (WEQ Version 003.3, March 30, 2020);
(vi) WEQ-004, Coordinate Interchange (WEQ Version 003.3, March
30, 2020);
(vii) WEQ-005, Area Control Error (ACE) Equation Special Cases
(WEQ Version 003.3, March 30, 2020);
(viii) WEQ-006, Manual Time Error Correction (WEQ Version 003.1,
Sept. 30, 2015);
(ix) WEQ-007, Inadvertent Interchange Payback (WEQ Version
003.3, March 30, 2020);
(x) WEQ-008, Transmission Loading Relief (TLR)--Eastern
Interconnection (WEQ Version 003.3, March 30, 2020);
(xi) WEQ-011, Gas/Electric Coordination (WEQ Version 003.3,
March 30, 2020);
(xii) WEQ-012, Public Key Infrastructure (PKI) (WEQ Version
003.3, March 30, 2020);
(xiii) WEQ-013, Open Access Same-Time Information Systems
(OASIS) Implementation Guide, (WEQ Version 003.3, March 30, 2020);
(xiv) WEQ-015, Measurement and Verification of Wholesale
Electricity Demand Response (WEQ Version 003.3, March 30, 2020);
(xv) WEQ-021, Measurement and Verification of Energy Efficiency
Products (WEQ Version 003.3, March 30, 2020);
(xvi) WEQ-022, Electric Industry Registry (WEQ Version 003.3,
March 30, 2020);
(xvii) WEQ-023, Modeling. (WEQ Version 003.3, March 30, 2020);
(xviii) WEQ-024, Cybersecurity, Version 004, July 31, 2023.
Appendix 2: Tariff Record Incorporating the NAESB standards, WEQ
Version 004
The NAESB WEQ Business Practice Standards; Standards and Models
the Commission incorporates by reference, effective August 27, 2026,
are as follows:
(i) WEQ-000, Abbreviations, Acronyms, and Definition of Terms,
Version 004, July 31, 2023.
(ii) WEQ-001, Open Access Same-Time Information Systems (OASIS),
Version 004, July 31, 2023, (including Minor Correction MC24002
applied August 9, 2024).
(iii) WEQ-002, Open Access Same-Time Information Systems (OASIS)
Business Practice Standards and Communication Protocol (S&CP),
Version 004, July 31, 2023.
(iv) WEQ-003, Open Access Same-Time Information Systems (OASIS)
Data Dictionary, Version 004, July 31, 2023.
(v) WEQ-004, Coordinate Interchange, Version 004, July 31, 2023.
(vi) WEQ-005, Area Control Error (ACE) Equation Special Cases,
Version 004, July 31, 2023.
(vii) WEQ-006, Manual Time Error Correction, Version 004, July
31, 2023.
(viii) WEQ-007, Inadvertent Interchange Payback, Version 004,
July 31, 2023.
(ix) WEQ-008, Transmission Loading Relief (TLR)--Eastern
Interconnection, Version 004, July 31, 2023.
(x) WEQ-011, Gas/Electric Coordination, Version 004, July 31,
2023.
(xi) WEQ-012, Public Key Infrastructure (PKI), Version 004, July
31, 2023.
(xii) WEQ-013, Open Access Same-Time Information Systems (OASIS)
Implementation Guide, Version 004, July 31, 2023.
(xiii) WEQ-015, Measurement and Verification (M&V) of Wholesale
Electricity Demand Response (DR), Version 004, July 31, 2023.
(xiv) WEQ-021, Measurement and Verification (M&V) of Energy
Efficiency Products, Version 004, July 31, 2023.
(xv) WEQ-022, Electric Industry Registry, Version 004, July 31,
2023.
(xvi) WEQ-023, Modeling, Version 004, July 31, 2023.
(xvii) WEQ-024, Cybersecurity, Version 004, July 31, 2023.
[FR Doc. 2025-03085 Filed 2-26-25; 8:45 am]
BILLING CODE 6717-01-P