What they mean to you.

FERC & NERC Alert.

What is FERC?

The Federal Energy Regulatory Commission (FERC) is the United States federal agency with jurisdiction over interstate electricity sales, wholesale electric rates, hydroelectric licensing, natural gas pricing, and oil pipeline rates.

FERC also reviews and authorizes liquefied natural gas (LNG) terminals, interstate natural gas pipelines and non-federal hydropower projects.

The North American Electric Reliability Corporation (NERC), a nonprofit corporation based in Princeton, NJ, was formed on March 28, 2006 as the successor to the North American Electric Reliability Council (also known as NERC).

The original NERC was formed on June 1, 1968 by the electric utility industry to promote the reliability and adequacy of bulk power transmission in the electric utility systems of North America. NERC's mission states that it is to "ensure that the bulk power system in North America is reliable.“

What is NERC?

NERC oversees eight regional reliability entities and encompasses all of the interconnected power systems of the contiguous United States, Canada and a portion ofBaja California in Mexico.

Entities in the U.S. found to be in violation of a standard can be subject to fines of up to $1 million per day per violation.

NERC Authority

FERC/NERC STRUCTURE

FERC

NERC

Reliability Standards

FAC 003(Vegetation)

FAC 009(Establish Facility Rating)

FAC 008 (Facility Rating Method)

To ensure that Facility Ratings used in the reliable planning

and operation of the Bulk Electric System (BES) are

determined based on an established methodology or

methodologies.

To improve the reliability of the electric transmission systems by

preventing outages from vegetation located

on transmission rights-of-way (ROW) and minimizing

outages from vegetation.

To ensure that Facility Ratings used in the reliable planning and

operation of the Bulk Electric System (BES) are

determined based on an established methodology or

methodologies.