NERC Enforces Compliance with Electric Reliability Standards; Reliability Improvements Underway

June 23, 2008 // Published as a news service by IHS

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The North American Electric Reliability Corp. (NERC) submitted the first set of violation notices in the U.S. to the Federal Energy Regulatory Commission (FERC) for approval under Section 215 of the Federal Power Act.

These notices document which reliability standards were violated and the actions taken by the companies involved to assure future compliance and improve reliability.

NERC reliability standards are designed to ensure that the right practices are in place so the likelihood and severity of future bulk power system disturbances are substantially reduced.

The majority of the violations are documentation-related and do not include a financial penalty. The total value of financial penalties assessed equals $255,000.

These violations are already being addressed by the companies involved, who are required to take immediate corrective action in addition to any financial penalties.

Financial penalties are related to violations of the NERC FAC-003-1 standard titled "Vegetation Management."

Improper vegetation clearance on transmission lines was a causal factor of the Aug. 14, 2003 blackout, where 50 million people across the Northeast U.S. and Southeast Canada lost power.

Proper vegetation management within transmission rights-of-way continues to be one of NERC's primary reliability concerns. The companies involved in these notices are taking important steps to resolve vegetation management violations and improve reliability of the bulk power system, said NERC.

"Generally we are seeing a very positive response to the 'new era' of mandatory compliance enforcement," said Rick Sergel, NERC president and CEO. "In fact, more than half of the 1400 violations reported to NERC after June 18 were self-reported, meaning that bulk power system users, owners and operators voluntarily disclosed an issue and proposed a way to address it.

"This is a strong indication that the mandatory enforcement program put in place through the formation of the international Electric Reliability Organization, NERC, is driving a culture of compliance, but more importantly reinforcing reliability standards, throughout the electricity industry."

More information can be found on the NERC web site.

Source: North American Electric Reliability Corporation (NERC).