Power & Pipes

FERC, CFTC, and State Energy Law Developments

On June 15, 2011, NERC filed with FERC for approval of the revised Reliability Standard FAC-008-3 (Facility Ratings), which would replace the currently effective FAC-008-1 and FAC-009-1 Reliability Standards. The central revisions to the Standard include the following:

  • Requiring TOs and GOs to document the underlying assumptions and methods used to determine Facility Ratings.
  • Requiring that a Facility Ratings methodology establish ratings consistent with (a) equipment manufacturer ratings or specifications, (b) industry standards developed through an open process such as IEEE or CIGRE, or (c) a practice verified By testing, performance history, or engineering analysis.
  • Permitting certain entities to request from TOs and certain GOs the identity of the next most limiting equipment in a facility, for any facility with (a) a thermal rating that limits the use of any facilities under the requesting entity’s authority By causing an IROL, (b) a TTC limit, (c) an impediment to generator deliverability, or (d) an impediment to service to a major load center.

If approved, FAC-008-3 would become effective on the first day of the first calendar quarter 12 months after the effective date of the relevant Final Rule.