LexisNexis® CLE On-Demand features premium content from partners like American Law Institute Continuing Legal Education and Pozner & Dodd. Choose from a broad listing of topics suited for law firms, corporate legal departments, and government entities. Individual courses and subscriptions available.
On September 28, 2015, the North American Electric Reliability Corporation (“NERC”) submitted to FERC its annual analysis on the use of Technical Feasibility Exceptions (“TFEs”). TFEs are exceptions from strict compliance with NERC Critical Infrastructure Protection (“CIP”) Reliability Standards that Registered Entities may apply for, pursuant to a process established in the NERC Rules of Procedure.
On January 18, 2008, the Commission issued Order No. 706, in which it approved eight CIP Reliability Standards, and, among other things, directed NERC to develop a procedural mechanism by which entities could seek TFEs. The Commission also required NERC to submit an annual report that provides a wide-area analysis of the use of TFEs, and their associated impact on Bulk-Power System reliability.
In its September 28, 2015 report, NERC presented data indicating that, for the 2015 reporting period of July 1, 2014 through June 30, 2015, a total of 342 new TFE requests were submitted and approved across all eight NERC Regional Entities within the United States, with the largest number of new requests (116) coming from the ReliabilityFirst Corporation region—a significantly higher number than the next-highest region, the Western Electricity Coordinating Council (“WECC”), which accounted for only 70. Only two new TFE requests were disapproved across all eight Regions. The data also indicated that 911 amendments to existing TFEs were requested and approved during the reporting period across all eight Regions, with ReliabilityFirst Corporation again accounting for a significantly higher total (287) than the next-highest region, WECC, which had 187. Only three amendments to existing TFE requests were disapproved across all eight regions. The report noted that, as of September 28, 2015, over 4,300 TFEs remain active across all eight Regions, within the United States.
Importantly, the report specifically identified the active TFEs that will be administratively terminated as of April 1, 2016—the date that the CIP Version 5 Reliability Standards become mandatory and enforceable. According to NERC, on that date, over 82 percent of the currently active TFEs will become obsolete and no longer accountable in the program, because there are no comparable requirements in the CIP Version 5 Reliability Standards that authorize TFEs. NERC noted, however, that there will be some TFEs from the currently-effective CIP Version 3 Reliability Standards that will remain active, because there are comparable requirements in the CIP Version 5 Reliability Standards.
A copy of NERC’s report may be found here.
About Troutman Sanders
Troutman Sanders is an international law firm with offices in North America, Europe and Asia. Founded in 1897, the firm’s heritage of extensive experience, exceptional responsiveness and an unwavering commitment to service has garnered strong, long-standing relationships with clients across the globe. These clients range from multinational corporations to individual entrepreneurs, federal and state agencies to foreign governments, and non-profit organizations to businesses representing virtually every sector and industry.
Troutman Sanders lawyers provide counsel and advice in practically every aspect of civil and commercial law related to the firm’s core practice areas: Corporate, Finance, Litigation, Public Law and Real Estate. With more than 50 practice groups focused on specific aspects of these areas, the firm is defined by its considerable knowledge base and proactive approach to addressing legal and business challenges.
For more information about LexisNexis products and solutions, connect with us through our corporate site.