NERC reliability standards

On June 4, 2007, mandatory reliability standards adopted by the Federal Energy Regulatory Commission (FERC) and administered by the North American Electric Reliability Corporation(NERC) and the Western Electricity Coordinating Council (WECC) for the bulk power system will become effective. Instances of non-compliance with these standards can result in monetary penalties levied against the party causing the standard violation. As part of the standards implementation process, the California ISO and a stakeholder working group have developed clarifying tariff language and a pro forma agreement addressing both the allocation of compliance tasks and responsibilities between the California ISO and the transmission owners/operators, and the recovery of penalties stemming from non-compliance situations.