Procedures and Forms 2008 FRCC Compliance Workshop April 8-9, 2008.

Procedures and Forms

2008 FRCC Compliance Workshop

April 8-9, 2008

2

The Eight (8) Compliance Monitoring Processes

• Process to collect information in order to make assessments of compliance:

1. Compliance Audits

2. Self-Certification

3. Spot Checking

4. Self-Reporting

5. Exception Reporting

6. Complaint

7. Compliance Violation Investigations

8. Periodic Data Submittals

3

Compliance Audits

• A systematic, objective review and examination of records and activities to determine whether a Registered Entity meets the requirements of applicable Reliability Standards.

• On-site• Off-site

4

Compliance Audit Process (Regularly Scheduled or Random)

FE

RC

NE

RC

Aud

itor(

s)R

egis

tere

d E

ntity

FR

CC

Notice and Schedule Audit

Review Documents

Review Findings with Entity

Complete Audit Package

Write Audit Report

AllegedViolation

Yes

Assemble Team/Send Audit Package to

Registered Entity

See NERC Compliance

Monitoring and Enforcement

Program *

Issue Final Report

Report

Conduct Onsite Audit

Notice and Schedule

Notice and Schedule

* Processes merge at Step 3 (Violation Level and Sanction Determination) in the Compliance Monitoring & Enforcement Program Process Diagram located in the Compliance Enforcement Authority Functional Band

No

Registered Entity Reviews and

Comments on the Report

Report

Review and Evaluate Audit

Report

Notice and Schedule

Audit Team Reviews Entity

Comments

5

Compliance Audits

• The compliance audit scope will include all Reliability Standards applicable to the Registered Entity monitored in the NERC/FRCC Implementation Plans.

• The scope may also include other Reliability Standards and FRCC Regional Reliability Standards that have been approved by FERC.

6

Compliance Audits

• If the data retention requirements of a Reliability Standard does not cover the full period of the compliance audit, the audit will only be applicable to the data retention period specified in the Reliability Standard.

• Audit team members are required to sign and return FRCC Non-Disclosure Agreements.

7

Compliance Audits

• FRCC compliance staff notifies the registered entity of the audit, identifies the audit team members, and sends Pre-Audit Questionnaire and request for data.

• The registered entity completes and returns Pre-audit Questionnaire and requested documentation to the FRCC by the required data.

8

Compliance Audits

• FRCC compliance staff distributes completed Pre-Audit Questionnaire and documentation to the audit team for review.

• Compliance audit is conducted.

• Audit team drafts report, sends to registered entity for review, submits final audit report to FRCC compliance staff.

9

Compliance Audits

• FRCC compliance staff determines alleged violations.

• FRCC compliance committee reviews FRCC compliance staff determination.

• FRCC compliance staff determines applicable penalties and sanctions and sends notice of violation and penalty and/or sanctions to registered entity.

10

Self-Certification

• Attestation by a Registered Entity of compliance or non-compliance with Reliability Standards for which Self-Certification is required by the FRCC and that are included for monitoring in the FRCC Implementation Plan.

11

Self-Certification

• FRCC requires all registered entities to self-certify annually.

• FRCC sends the self-certification forms to the registered entities generally in the first week in November.

• FRCC compliance staff reviews the information provided by the registered entity to determine compliance with the reliability standards and may request additional data and /or information, if necessary.

12

Self-Certification

• FRCC compliance staff will provide a summary report of the self-certification results to the FRCC compliance committee for review.

13

Self Certification ProcessR

eg

iste

red

En

tity

FR

CC

Provide Forms And Instructions

Complete Self Certification Forms

And Instructions

Information Complete

Review Returned Forms and data

(if data was requested)

File Forms In Accordance With

Document Retention Policy

Yes

Request Clarification

No

Alleged Violation

Yes

Process Complete

No

ClarifyIncomplete Submittals

See NERC Compliance


Program *


14

Spot Checking

• A process in which the FRCC requests a Registered Entity to provide information to support the Registered Entity’s Self-Certification, Self-Reporting, or Periodic Data Submittal and to assess whether the Registered Entity complies with Reliability Standards. Spot Checking may also be random or initiated in response to events, as described in the Reliability Standards, or by operating problems or system events. Spot Checking may require an on-site review to complete.

15

Spot Checking

• Spot checks may be initiated at any time to verify or confirm compliance status.

• FRCC compliance staff sends notice of Spot Check and data request to the registered entity.

• Registered entity returns requested documentation to the FRCC compliance staff.

16

Spot Checking

• FRCC compliance staff selects the Spot Check review team members and schedules the review. Spot Check reviews are normally conducted at the FRCC office.

• The Spot Check review team will provide a report of findings to the FRCC compliance staff.

• Registered entities will have opportunity to review draft report to correct any errors.

17

Spot Checking

• FRCC compliance committee reviews FRCC compliance staff determination.

• Same process for final determination of alleged violation and applicable penalty and/or sanction.

18

Spot Checking ProcessA

ud

ito

r(s)

Re

gis

tere

d

En

tity

FR

CC

Inform Registered Entity of Spot

Check & Request Information

Conduct Review

Provide Information

YesAllegedViolation

See NERC Compliance


Program *

Write inital report

Approve and File Report and Send

Copies

Initial Report

Review Initial Report

No

Registered Entity Reviews and

Comments on the Report

End Process and Notifications


19

Compliance Violation Investigations

• A comprehensive investigation, which may include an on-site visit with interviews of the appropriate personnel, to determine if a violation of a Reliability Standard has occurred.

20


• Can be initiated at any time in response to a disturbance, complaint, or notification of possible violation.

• FRCC compliance staff selects the investigation review team members.

• FRCC compliance staff will notify the registered entity and NERC within 2 business days of the decision to conduct a Compliance Violation Investigation.

21


• FRCC will provide at least 20 calendar days notice for data request.

• The investigation review team members will review preliminary information or data and determine if additional data or on-site inspections are needed.

• On-site inspection is scheduled, if needed.

22


• Registered entity returns requested data in the required format to the FRCC compliance staff.

• Investigation review team identifies a finding of compliance or non-compliance.

• Investigation review team provides a report of the findings to the FRCC compliance staff.

23


• FRCC compliance staff will provide the determination of alleged violation to the FRCC compliance committee.


24

Investigation ProcessN

ER

CFE

RC

FRC

CR

egis

tere

d E

ntity

Investigation Triggered

Notifications Parties

Contact Registered Entity

andRequest Data

Provide Data to

Regional Entity

Conduct Investigation and Develop Report

Alleged Violation

Yes

No

Governmental AuthoritiesNotification

Governmental AuthoritiesNotification

ERO NotificationERO Notification




See NERC Compliance

and Enforcement

Program *

* Processes merge at Step 3 (Violation Level & Sanction Determination) box in the Compliance Monitoring & Enforcement Program Process Diagram located in the Compliance Enforcement Authority Functional Band

Report

Report

ReportNotification

25

Self-Reporting

• A report by a Registered Entity of a violation of a Reliability Standard, based on its own assessment, in order to provide prompt reports of any Reliability Standard violation and the actions that were taken or will be taken to resolve the violation.

26

Self-Reporting

• Self-reporting is encouraged any time a registered entity becomes aware:– Of their violation of a reliability standard, or– A change in the violation severity level of a

previously reported violation.

• Self reporting may be considered as a mitigating factor during the determination of a penalty and/or sanction.

27

Self-Reporting

The process steps of self-reporting are as follows:

• Download the Self-reporting submittal form from the FRCC website at: http://ww.frcc.com/

• Fill out the Self-reporting information and forward the applicable mitigation plan to the FRCC Compliance Manager at: [email protected]

• The FRCC compliance staff will review the information to determine compliance and may request the registered entity to provide clarification or additional data and/or information.

http://ww.frcc.com/

mailto:[email protected]

28

Self-Reporting

• The FRCC compliance staff completes the assessment of the registered entity.


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Self Reporting

NE

RC

FR

CC

Reg

iste

red

Ent

ity

Make Self -Reporting Forms

Available

Complete Forms and Submit to Compliance Enforcement

Authority

Review Forms and Determine If a

Violation Occurred

Alleged Violation

Yes

See NERC Compliance Monitoriong Enforcement

Program *


No


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Periodic Data Submittals

• Modeling, studies, analyses, documents, procedures, methodologies, operating data, process information or other information to demonstrate compliance with Reliability Standards and provided by Registered Entities to the FRCC on a time frame required by a Reliability Standard or an ad hoc basis.

31


• In 2008, the FRCC requires monthly reporting for the following standards;

BAL-001-0 BAL-002-0 BAL-006-1

EOP-002-2 FAC-003-1 INT-001-2

IRO-004-1 IRO-006-3 PER-003-0

PER-004-1 PRC-004-1 PRC-016-0

TOP-005-1 TOP-007-0

• Reporting forms are located on the FRCC compliance website at: http://ww.frcc.com/

http://ww.frcc.com/

http://ww.frcc.com/

http://ww.frcc.com/

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• Reports are due to the FRCC by the 10th of each month. Submit to [email protected]

• Each report will be for the calendar month preceding the 10th of the month that it is submitted.

• Not applicable, fully compliant, or a violation severity level (level of non-compliance) must be indicated for each standard and requirement.

mailto:[email protected]

33


• For reliability standard FAC-003-1, requirement 3 requires reporting of vegetation caused outages.– If during the reporting period you had an

actual reportable vegetation caused outage, compete the Vegetation Management Report and outage details.

• For ALL reports of non-compliance, a mitigation plan is required. Please submit the mitigation plan to FRCC along with the monthly report.

34

Data Submittal

Re

gis

tere

d E

ntity

FR

CC

Obtain and Review Data

Alleged Violation

Yes

Process Complete

No

Makes Forms Available

Download Forms and Load Data

See NERC Compliance


Program *


35

Exception Reporting

• Information provided to the FRCC by a Registered Entity indicating that a violation of a Reliability Standard has occurred (e.g., a system operating limit has been exceeded). Some Reliability Standards require Exception Reporting.

36

Exception Reporting

• Some reliability standards require reporting of exceptions to compliance with the reliability standard as a form of compliance monitoring.

• FRCC requires registered entities to provide reports identifying any exceptions to the extent required by any reliability standard.

• FRCC requires registered entities to confirm the number of exceptions that have occurred in a given time period identified by NERC, even if the number of exceptions is zero.

37

Complaints

• An allegation that a Registered Entity violated a Reliability Standard.

38

Complaints

Either NERC or FRCC may receive complaints alleging violations of a reliability standard.– FRCC will conduct a review of each complaint it receives to

determine if the complaint provides sufficient basis for a compliance violation investigation.

– NERC will conduct a review of each complaint• That is related to FRCC.• Where the FRCC determines it cannot conduct the review.• If the complainant wished to remain anonymous.• If the complainant specifically requests NERC to conduct a

review of a complaint.

39

Complaints

• The complainant notifies NERC or the FRCC by using the NERC hotline, submitting a NERC complaint reporting form, or by other means.– A link to the complaint form is posted on the NERC

and FRCC websites.• The complainant should include sufficient information to

enable NERC or the FRCC to make an assessment of whether the initiation of a compliance violation investigation is warranted.– NERC or FRCC may not act on a complaint if the complaint is

incomplete and does not include sufficient information.

40

Complaint Process

Reg

iste

red

Ent

ityN

ER

CF

RC

C

No

Inve

stig

atin

g E

ntity

(F

RC

C o

r N

ER

C)

Com

plai

nant

Make Complaint Forms Available

Complete Forms and Submit to

Regional Entity or ERO

Initial ReviewComplaint

Merited

Notification

No

Alleged Violation

Investigation and Report

Yes

Notification

Statement to Complainant

Notification

Notification Notification

Notification

Notification

No

See NERC Compliance


Program*


Yes

Notification

+ Anonymous complainant identities will be withheld

41

NERC Compliance Monitoring and Enforcement Program Overview

Reg

iste

red

Ent

ityF

ER

CN

ER

CF

RC

CData Submission

Complete

More Data

Needed

yes

Accepts

Rejects

Violation

Accepts

Rejects

Notice to Governmental

Authorities

Step 1 - Sources of Violations:

Compliance Audits, Self Certifications,

Spot Checks, Event Investigations, Self

Reporting, or Periodic Data

Submittal

Registered Entity Accepts or Rejects Hearing Outcome

Notice of Penalty

Review of Violation and

Sanction Determination by Registered Entity

ERO Appeal Process

Registered Entity Accepts

or Rejects Findings

*Settlement

Settlement negotiations may occur at any time until a Notice of Penalty is filed with FERC

Notice of Penalty

Sanction Imposed

Notice of Alleged Violation and

Sanction

See Complaint Process

Complete?

Notice of Alleged Violation

Notice of Penalty

Resolution: Agreement or Settlement*

Complaints

Step 2 - Staff Review & Determination of Alleged Violation


No

Remedial Action

Process

Step 3 Violation Level and Sanction

Determination

Initial Notice of Alleged Violation

Yes

Violation

Hearing

No Violation

No Violation

Mitigation Plan Process

Accepts

42

?

Questions

Procedures and Forms 2008 FRCC Compliance Workshop April 8-9, 2008.

Documents

Transcript of Procedures and Forms 2008 FRCC Compliance Workshop April 8-9, 2008.