Filing reminds generators with significant high-voltage tie lines that they can be subject to Reliability Standards typically applied to transmission owners and transmission operators.
On June 27, the North American Electric Reliability Corporation (NERC) submitted a Notice of Penalty regarding Milford Wind Corridor Phase I, LLC, a Utah-based generator that provides intermittent wind generation, assessing a penalty of $81,000 for 15 alleged Reliability Standards violations. Milford's generation connects to the bulk-power system through a 345 kV tie line that was found to qualify as a transmission line, despite its radial nature. As the owner and operator of this transmission line, Milford is a transmission owner and transmission operator and is therefore subject to compliance with transmission-related Reliability Standards.
Through its compliance enforcement process, Western Electricity Coordinating Council (WECC), the Regional Entity responsible for enforcing compliance with Reliability Standards in the Western Interconnection, identified the following violations:
WECC determined that the violations posed a minimal risk to the bulk power system due to the nature of Milford's facilities. Milford's generation is not base-load generation, and its transmission facilities are limited in use. For all of the violations noted above, WECC determined that, in the event Milford is unable to deliver its generation, the Balancing Authority could find replacement generation without adversely affecting the reliability of the bulk power system.
Milford and WECC entered into a settlement agreement on April 29, 2013, under which Milford agreed to pay a penalty of $81,000 for violations of these Reliability Standards. Milford did not admit or deny the alleged violations.
Generators with significant lead lines may be subject to registration as a transmission owner or transmission operator and, following registration, would be subject to enforcement for noncompliance with Reliability Standards typically applied to transmission owners and transmission operators.
If you have any questions or would like more information on the issues discussed in this LawFlash, please contact any of the following Morgan Lewis attorneys:
. NERC Full Notice of Penalty regarding Milford Wind Corridor Phase I, LLC, Docket No. NP13-40-000 (June 27, 2013).
. Cedar Creek Wind Energy, LLC and Milford Wind Corridor Phase I, LLC, 139 FERC ¶ 61,241 (2012).