NERC Commends FERC's Proposed Electric Reliability Organization Rule

The North American Electric Reliability Council commended the rule proposed by the Federal Energy Regulatory Commission (FERC) to certify an Electric Reliability Organization (ERO) and establish procedures for the establishment, approval, and enforcement of electric reliability standards (Docket No. RM05-30-000). Congress authorized the creation of an ERO and the adoption of enforceable electric reliability standards as part of the Electricity Modernization Act of 2005.

"The rule proposed by the Commission embodies all of the necessary themes and lays out the required principles, responsibilities, and authorities needed to create and oversee a strong and effective electric reliability organization," said Rick Sergel, NERC president and chief executive officer. "I am confident that, working with the Commission, we can successfully implement the final rule and become the ERO authorized in the legislation."

"The Commission has done a commendable job of establishing the needed framework in the United States and for working cooperatively with Canada and Mexico to create a North American electric reliability organization," stated NERC Chairman Richard Drouin. "We look forward to working in close partnership with the Commission and the regulatory authorities in Canada and Mexico, with stakeholders, and with the regional reliability councils to develop a truly international ERO."

NERC intends to apply to FERC for recognition and certification as the ERO once the rule is finalized. NERC is already working with applicable government agencies to achieve comparable recognition and regulatory backstop in Canada. A small portion of Mexico is also interconnected with the United States and additional interconnections are contemplated, therefore, NERC will also work with Mexican authorities to establish effective oversight and coordination as appropriate.

SOURCE: North American Electric Reliability Council