1. NERC Data Collection & Coordination

2. Rules of Procedure: Section 1600 Overview  NERC’s authority to issue a mandatory data request in the U.S. is contained in FERC’s rules. Volume 18 C.F.R. Section 39.2(d) states: “Each user, owner or operator of the Bulk-Power System within the United States (other than Alaska and Hawaii) shall provide the Commission, the Electric Reliability Organization and the applicable Regional Entity such information as is necessary to implement section 215 of the Federal Power Act as determined by the Commission and set out in the Rules of Procedure of the Electric Reliability Organization and each applicable Regional Entity.” 1

3. Rules of Procedure: Section 1600 Request Details  A complete data request includes: a description of the data or information to be requested, how the data or information will be used, and how the availability of the data or information is necessary for NERC to meet its obligations under applicable laws and agreements a description of how the data or information will be collected and validated a description of the entities (by functional class and jurisdiction) that will be required to provide the data or information (“reporting entities”) the schedule or due date for the data or information a description of any restrictions on disseminating the data or information (e.g., “confidential,” “critical energy infrastructure information,” “aggregating” or “identity masking”) an estimate of the relative burden imposed on the reporting entities to accommodate the data or information request 2

4. NERC Approval Committees Acting Subgroup Rules of Procedure: Section 1600 Procedure Draft Data Request Submit Data Request to DCS Submit Data Request to PC Not Approved Submit Data Request FERC Comment Period File Data Request (21 Days) Public Comment Period Post Data Request (45 Days) Collect, Respond, & Post Comments Finalize Data Request NERC Board of Trustees Submit Final Data Request Data Rule In Effect Affected Parties Appeal (30 Days) Approved Not Approved No Appeal 3

5. Rules of Procedure: Section 1600 Limitations  NERC Registered Entities  Subject to FERC Rules Data Request does not carry the same penalties to non-U.S. entities. However, all NERC Registered Entities, regardless of their country of origin, must comply with the NERC Rules of Procedure, and as such, are required to comply with Section 1600 4

6. What If a GO Doesn’t Comply?  Possible NERC actions: From Rule 1603: “Owners, operators, and users of the bulk power system registered on the NERC Compliance Registry shall comply with authorized requests for data and information.” The data request must identify which functional categories are required to comply with the request. In this case, it presumably would be Generation Owners. 5

7. What If a GO Doesn’t Comply?  Possible NERC actions: NERC will audit the GADS data submittals through logical evaluations of the data reported and that previously reported by the entity. Reconciliation findings will be reviewed with the reporting entity. 6

8. What If a GO Doesn’t Comply?  Possible NERC actions: NERC may resort to a referral to FERC for only United States entities, not Canadian entities. NERC will make use of the mechanisms it has available for both U.S. and Canadian entities (notices, letters to CEO, requests to trade associations for assistance, peer pressure) to gain compliance with the NERC Rules. A failure to comply with NERC Rules could also be grounds for suspension or disqualification from membership in NERC. Whether or not NERC chooses to use that mechanism will likely depend on the facts and circumstances of the case. NERC cannot impose penalties for a failure to comply with a data request. 7

9. What If a GO Doesn’t Comply?  Possible FERC actions: All members of NERC (US and Canadian) are bound by their membership agreement with NERC to follow NERC’s Reliability Standards and Rules of Procedure, including section 1600. Under section 215 of the Federal Power Act, FERC has jurisdiction over all users, owners, and operators of the bulk power system within the United States. FERC could treat a failure by a U.S. entity to comply with an approved data request as a violation of a rule adopted under the Federal Power Act using its enforcement mechanisms in Part III of the FPA. 8

10. What If a GO Doesn’t Comply?  What about Canada? Canadian provinces who have signed agreements stating they recognize NERC’s ERO status, will be compliant with the NERC approved standards and Rules of Procedure issued by the NERC Board. The obligation arises for the Canadian utilities if they are members of NERC. For example, if Canadian Utility “A” is a member of NERC, then it must go by the Rules of Procedure, standards, etc. If Canadian Utility “X” is not a NERC member but its providence recognizes NERC as their ERO, then Utility “X” is not under obligation to follow the rules. 9

11. Questions?