NERC Named Reliability Head

NAW Staff, Monday 24 July 2006 - 01:00:00

The Federal Energy Regulatory Commission (FERC) certified the North American Electric Reliability Corp. (NERC) as the nation's electric reliability organization (ERO) - the official reliability watch dog - pursuant to the Energy Policy Act of 2005.

FERC accepted, with some modifications and clarifications, NERC's proposed governance structure, funding, reliability standards development process, enforcement program and pro-forma Regional Entity delegation agreement.

As the ERO, NERC will be responsible for developing and enforcing mandatory electric reliability standards under the Commission's oversight. The standards will apply to all users, owners and operators of the bulk-power system.

"There are three necessary elements to a strong reliability regime. First, it is critical that the Electric Reliability Organization be a strong organization. That much is broadly recognized - more so now than perhaps a year ago. Second, we need mandatory reliability standards that meet the statutory test. Third, we need strong and consistent regional enforcement. Today, we certify the Electric Reliability Organization. We will soon act to approve mandatory reliability standards and provide for strong national and regional enforcement. We have made a lot of progress, and are continuing to move ahead," says FERC Chairman Joseph T. Kelliher.



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