{"id":1715,"date":"2020-12-04T19:13:00","date_gmt":"2020-12-04T19:13:00","guid":{"rendered":"https:\/\/www.trccompanies.com\/insights\/nerc-and-ferc-take-action-on-facilities-ratings\/"},"modified":"2025-02-17T13:45:48","modified_gmt":"2025-02-17T13:45:48","slug":"nerc-and-ferc-take-action-on-facilities-ratings","status":"publish","type":"news-and-insights","link":"https:\/\/www.trccompanies.com\/fr\/insights\/nerc-and-ferc-take-action-on-facilities-ratings\/","title":{"rendered":"NERC and FERC Take Action on Facilities Ratings"},"content":{"rendered":"<!-- Start Block: acf\/wysiwyg -->\n\n<section class=\"wysiwyg section-padding bg-white\">\n    <div class=\"container-fluid\">\n        \n        <div class=\"row\">\n                            <div class=\"col-lg-8 columns js-animated-content animated-content\">\n                                        <p>NERC\u2019s mandatory FAC-008-3 standard sets out requirements for transmission asset owners to ensure that facility ratings used in the reliable planning and operation of the Bulk Electric System (BES) are determined based on technically sound principles. \u00a0Facility ratings are essential for determining system operating limits. Violations are often seen in compliance audits, sometimes due to lack of internal controls.<\/p>\n<p>Over the past ten years, there has been significant work across the electric industry to improve facility ratings related processes, programs, frameworks, internal controls and best practices. Yet this continues to be a challenging area for utilities, particularly from an asset management and regulatory compliance perspective. A single substation or generating plant can be comprised of hundreds of AC current carrying elements which need to be tracked. Inadequate asset change management controls (or complete lack of) often result in compliance violations.<\/p>\n<p><a class=\"btn btn-primary\" href=\"https:\/\/www.trccompanies.com\/contact-us\/\">Contact Us<\/a><\/p>\n                <\/div>\n                <div class=\"col-lg-4 columns js-animated-content animated-content\">\n                                        <div class=\"wysiwyg__links js-animated-content animated-content\">\n                        <div class=\"wysiwyg__links__top \">\n                                                        <h4>Related Services<\/h4>\n                                                                                    <ul class=\"js-animated-content animated-content\">\n                                                                <li><a href=\"https:\/\/www.trccompanies.com\/markets\/power-and-utilities\/electric-utilities\/\" target=\"_self\">Electric Utilities<\/a><\/li>\n                                                                <li><a href=\"https:\/\/www.trccompanies.com\/services\/regulatory-compliance\/federal-energy-regulatory-commission-ferc\/\" target=\"_self\">Federal Energy Regulatory Commission (FERC)<\/a><\/li>\n                                                                <li><a href=\"https:\/\/www.trccompanies.com\/services\/emergency-management-and-response\/physical-security-and-emergency-management\/\" target=\"_self\">Physical Security and Emergency Management<\/a><\/li>\n                                                                <li><a href=\"https:\/\/www.trccompanies.com\/markets\/power-and-utilities\/\" target=\"_self\">Power and Utilities<\/a><\/li>\n                                                            <\/ul>\n                                                    <\/div>\n                                                                                                            <div class=\"wysiwyg__links__bottom\">\n                                    <a href=\"https:\/\/www.trccompanies.com\/services\" target=\"_self\">View All Services<\/a>\n                                <\/div>\n                                                                                                <\/div>\n                <\/div>\n                    <\/div>\n\n            <\/div>\n<\/section>\n<!-- End Block: acf\/wysiwyg -->\n\n<!-- Start Block: acf\/wysiwyg -->\n\n<section class=\"wysiwyg section-padding bg-white-fog\">\n    <div class=\"container-fluid\">\n                    <div class=\"wysiwyg__wrapper\">\n        \n        <div class=\"row\">\n                        <div class=\"col-lg-12\">\n                                                                                \n                                                <\/div>\n\n                            <div class=\"col-lg-12 js-animated-content animated-content\">\n                    <h2>The Current Regulatory Requirements<\/h2>\n<p>During development of FAC-008, NERC was directed to implement numerous standard changes including a requirement to identify the second most limiting facilities in order to improve understanding of limitations on the delivery of electricity due to transmission constraints. NERC endorsed a FAC-008-3 Application Guide that addressed these issues<\/p>\n<p>For example, to comply with Requirement 6 of FAC-008-3 , the guidance recommends the ratings of each BES Facility should be maintained in a process that allows the company to:<\/p>\n<ul>\n<li>Identify each BES Facility<\/li>\n<li>Identify the rating of each Element<\/li>\n<li>Identify the most limiting and the next most limiting Element identified by the owner<\/li>\n<li>Identify most limiting and the next most limiting Element identified by joint owner<\/li>\n<li>Identify the overall most limiting and the next most limiting Element overall determining the Facilities Normal and Emergency Ratings<\/li>\n<\/ul>\n                <\/div>\n                                <\/div>\n\n                    <\/div>\n            <\/div>\n<\/section>\n<!-- End Block: acf\/wysiwyg -->\n\n<!-- Start Block: acf\/wysiwyg -->\n\n<section class=\"wysiwyg section-padding bg-light-gradient\">\n    <div class=\"container-fluid\">\n        \n        <div class=\"row\">\n                        <div class=\"col-lg-12\">\n                                    <div class=\"wysiwyg__columns-text-top\">\n                        <div class=\"row js-animated-content animated-content\">\n                            <div class=\"col-lg-8 js-animated-content animated-content\">\n                                <div class=\"option-links\">\n                                    <ul>\n                                                                            <\/ul>\n                                <\/div>\n                                <h3>FERC Joins the Facility Ratings Discussion Again<\/h3>\n                                \n                            <\/div>\n                            <div class=\"col-lg-4\">\n                                                            <\/div>\n                        <\/div>\n                    <\/div>\n                            <\/div>\n\n                                                                        <div class=\"col-lg-4 \">\n                                                        <div class=\"js-animated-content animated-content\">\n                                <p>On\u00a0November 19, 2020 FERC released a Notice of Proposed Rulemaking (NOPR) suggesting a broad, industry wide move from seasonal static to dynamic facility ratings to maximize the capability of delivery facilities. This NOPR and the potential changes it will cause if implemented impacts the already complex issue of facility ratings management. This makes it even more critical for technical experts to become involved in the evaluation of current facility rating internal controls, processes, procedures, oversight.<\/p>\n                            <\/div>\n                        <\/div>\n                                                                                <div class=\"col-lg-4 columns\">\n                                                        <div class=\"js-animated-content animated-content\">\n                                <p>FERC is taking an interest in this subject to promote greater utilization of existing delivery facilities. In its NOPR FERC identifies that under typical practices today, as implemented in the FAC-008-3 ratings methodologies, facility ratings are frequently seasonal or non-changing static ratings. FERC notes that these ratings are often also based on conservative assumptions about the worst-case, long-term ambient conditions that power delivery equipment might face. The ratings are typically updated only when equipment is changed, or ambient condition assumptions are revised. While some utilities already implement ambient-adjusted ratings (AARs) and dynamic line ratings (DLRs). Many utilities do not use AAR and DLR facility rating methods.<\/p>\n                            <\/div>\n                        <\/div>\n                                                                                <div class=\"col-lg-4 columns\">\n                                                        <div class=\"js-animated-content animated-content\">\n                                <p>The FERC NOPR proposes to require implementation of AARs and seasonal line ratings. Transmission providers would use AARs for evaluating requests for near-term transmission service, and would use seasonal ratings for evaluating other, longer-term transmission service requests. Any ratings would have to be tracked using the methods which support compliance verification for FAC-008-3 purposes.<\/p>\n<p>If your company does not already use AAR or DLR facility ratings processes, you should consider exploring the implications of the FERC NOPR (if it is adopted as a rule) for your company. TRC can help by independently reviewing your ratings methods, data management practices and the interactions with the planning and operating processes within your company. An independent review will help your company stay ahead of this changing regulatory environment.<\/p>\n                            <\/div>\n                        <\/div>\n                                                                    <\/div>\n\n            <\/div>\n<\/section>\n<!-- End Block: acf\/wysiwyg -->\n\n<!-- Start Block: acf\/innerpage-promotion-blocks -->\n\n<section class=\"cta-right-image-text\">\n    <div class=\"cta-right-image-text__wrap\">\n        <div class=\"cta-right-image-text__text\">\n            <div class=\"cta-right-image-text__text__wrap js-animated-content animated-content\">\n                <h2>Next Steps<\/h2>\n<p>TRC clients are advised to carefully review their FAC-008-3 compliance programs in light of the FERC NOPR and assess whether an independent review might be beneficial. NERC and FERC\u2019s future direction will likely impact compliance for both transmission and generation companies.\u00a0 TRC can assist by providing an independent review of your company\u2019s FAC-008-3 standard compliance internal controls and asset management processes along with any related implementation issues.<\/p>\n<p><a class=\"btn btn-primary\" href=\"https:\/\/www.trccompanies.com\/contact-us\/\">Contact Us<\/a><\/p>\n            <\/div>\n        <\/div>\n        <div class=\"cta-right-image-text__image\">\n            <img decoding=\"async\" width=\"746\" height=\"468\" src=\"https:\/\/www.trccompanies.com\/wp-content\/uploads\/2024\/10\/GettyImages-1320798079.jpg\" class=\"object-fit\" alt=\"GettyImages-1320798079\" srcset=\"https:\/\/www.trccompanies.com\/wp-content\/uploads\/2024\/10\/GettyImages-1320798079.jpg 746w, https:\/\/www.trccompanies.com\/wp-content\/uploads\/2024\/10\/GettyImages-1320798079-300x188.jpg 300w\" sizes=\"(max-width: 746px) 100vw, 746px\" \/>            <span class=\"top\"><\/span>\n            <span class=\"bottom\"><\/span>\n            <span class=\"left\"><\/span>\n            <span class=\"right\"><\/span>\n        <\/div>\n    <\/div>\n<\/section>\n\n<!-- End Block: acf\/innerpage-promotion-blocks -->\n\n<!-- Start Block: acf\/innerpage-related-materials -->\n<section class=\"material-cards bg-purple-gradient\">\n    <div class=\"container-fluid js-animated-content animated-content\">\n        <div class=\"material-cards__headlines  js-animated-content animated-content\">\n            <div class=\"material-card__content js-animated-content animated-content\">\n                <h3>Resources<\/h3>\n            <\/div>\n            <div class=\"material-card__link\">\n                            <\/div>\n        <\/div>\n        <div class=\"row js-related-material-slider js-related-marterial-container \" data-item=\"3\">\n                        <div class=\"col-xxs-12 col-lg-4 material-card-item\">\n                <div class=\"material-card\">\n                                            <div class=\"material-card__details \">\n                            <h5 class=\"material-card__title\">\n                                <img decoding=\"async\" width=\"30\" height=\"30\" src=\"https:\/\/www.trccompanies.com\/wp-content\/uploads\/2024\/08\/picture_as_pdf_24dp-black.svg\" class=\"attachment-full size-full\" alt=\"picture_as_pdf_24dp-black\" \/>                                NERC Facilities Ratings Standard FAC-008-3                            <\/h5>\n                            <p class=\"material-card__description\">Publi\u00e9 <\/p>\n                        <\/div>\n                        <div class=\"material-card__bttn\">\n                                                        <a href=\"https:\/\/www.nerc.com\/_layouts\/15\/PrintStandard.aspx?standardnumber=FAC-008-3&#038;title=Facility%20Ratings&#038;jurisdiction=United%20States\" target=\"_blank\"><span>t\u00e9l\u00e9charger le fichier<\/span><img decoding=\"async\" width=\"28\" height=\"28\" src=\"https:\/\/www.trccompanies.com\/wp-content\/uploads\/2024\/08\/sim_card_download_24dp-black.svg\" class=\"attachment-full size-full\" alt=\"sim_card_download_24dp-black\" \/><\/a>\n                        <\/div>\n                                    <\/div>\n            <\/div>\n                        <div class=\"col-xxs-12 col-lg-4 material-card-item\">\n                <div class=\"material-card\">\n                                            <div class=\"material-card__details \">\n                            <h5 class=\"material-card__title\">\n                                <img decoding=\"async\" width=\"30\" height=\"30\" src=\"https:\/\/www.trccompanies.com\/wp-content\/uploads\/2024\/08\/picture_as_pdf_24dp-black.svg\" class=\"attachment-full size-full\" alt=\"picture_as_pdf_24dp-black\" \/>                                NERC Facilities Rating Standard Application Guide                            <\/h5>\n                            <p class=\"material-card__description\">Publi\u00e9 mars 21, 2017<\/p>\n                        <\/div>\n                        <div class=\"material-card__bttn\">\n                                                        <a href=\"https:\/\/www.trccompanies.com\/wp-content\/uploads\/2024\/10\/FAC-008-3-Standard-Application-Guide.pdf\" target=\"_blank\"><span>t\u00e9l\u00e9charger le fichier<\/span><img decoding=\"async\" width=\"28\" height=\"28\" src=\"https:\/\/www.trccompanies.com\/wp-content\/uploads\/2024\/08\/sim_card_download_24dp-black.svg\" class=\"attachment-full size-full\" alt=\"sim_card_download_24dp-black\" \/><\/a>\n                        <\/div>\n                                    <\/div>\n            <\/div>\n                        <div class=\"col-xxs-12 col-lg-4 material-card-item\">\n                <div class=\"material-card\">\n                                            <div class=\"material-card__details \">\n                            <h5 class=\"material-card__title\">\n                                <img decoding=\"async\" width=\"30\" height=\"30\" src=\"https:\/\/www.trccompanies.com\/wp-content\/uploads\/2024\/08\/picture_as_pdf_24dp-black.svg\" class=\"attachment-full size-full\" alt=\"picture_as_pdf_24dp-black\" \/>                                FERC Notice of Proposed Rulemaking \u2013 Managing Transmission Line Ratings                            <\/h5>\n                            <p class=\"material-card__description\">Publi\u00e9 novembre 19, 2020<\/p>\n                        <\/div>\n                        <div class=\"material-card__bttn\">\n                                                        <a href=\"https:\/\/www.ferc.gov\/media\/rm20-16-000\" target=\"_blank\"><span>t\u00e9l\u00e9charger le fichier<\/span><img decoding=\"async\" width=\"28\" height=\"28\" src=\"https:\/\/www.trccompanies.com\/wp-content\/uploads\/2024\/08\/sim_card_download_24dp-black.svg\" class=\"attachment-full size-full\" alt=\"sim_card_download_24dp-black\" \/><\/a>\n                        <\/div>\n                                    <\/div>\n            <\/div>\n                        <div class=\"col-xxs-12 col-lg-4 material-card-item\">\n                <div class=\"material-card\">\n                                            <div class=\"material-card__details \">\n                            <h5 class=\"material-card__title\">\n                                <img decoding=\"async\" width=\"30\" height=\"30\" src=\"https:\/\/www.trccompanies.com\/wp-content\/uploads\/2024\/08\/picture_as_pdf_24dp-black.svg\" class=\"attachment-full size-full\" alt=\"picture_as_pdf_24dp-black\" \/>                                TRC Transmission Engineering Services                            <\/h5>\n                            <p class=\"material-card__description\">Publi\u00e9 <\/p>\n                        <\/div>\n                        <div class=\"material-card__bttn\">\n                                                        <a href=\"https:\/\/www.trccompanies.com\/services\/engineering\/electrical-power\/transmission-engineering\/\" target=\"_blank\"><span>t\u00e9l\u00e9charger le fichier<\/span><img decoding=\"async\" width=\"28\" height=\"28\" src=\"https:\/\/www.trccompanies.com\/wp-content\/uploads\/2024\/08\/sim_card_download_24dp-black.svg\" class=\"attachment-full size-full\" alt=\"sim_card_download_24dp-black\" \/><\/a>\n                        <\/div>\n                                    <\/div>\n            <\/div>\n                        <div class=\"col-xxs-12 col-lg-4 material-card-item\">\n                <div class=\"material-card\">\n                                            <div class=\"material-card__details \">\n                            <h5 class=\"material-card__title\">\n                                <img decoding=\"async\" width=\"30\" height=\"30\" src=\"https:\/\/www.trccompanies.com\/wp-content\/uploads\/2024\/08\/picture_as_pdf_24dp-black.svg\" class=\"attachment-full size-full\" alt=\"picture_as_pdf_24dp-black\" \/>                                TRC NERC Compliance Services                            <\/h5>\n                            <p class=\"material-card__description\">Publi\u00e9 <\/p>\n                        <\/div>\n                        <div class=\"material-card__bttn\">\n                                                        <a href=\"https:\/\/www.trccompanies.com\/services\/regulatory-environmental-consulting\/regulatory-compliance\/nerc\/\" target=\"_blank\"><span>t\u00e9l\u00e9charger le fichier<\/span><img decoding=\"async\" width=\"28\" height=\"28\" src=\"https:\/\/www.trccompanies.com\/wp-content\/uploads\/2024\/08\/sim_card_download_24dp-black.svg\" class=\"attachment-full size-full\" alt=\"sim_card_download_24dp-black\" \/><\/a>\n                        <\/div>\n                                    <\/div>\n            <\/div>\n                        <div class=\"col-xxs-12 col-lg-4 material-card-item\">\n                <div class=\"material-card\">\n                                            <div class=\"material-card__details \">\n                            <h5 class=\"material-card__title\">\n                                <img decoding=\"async\" width=\"30\" height=\"30\" src=\"https:\/\/www.trccompanies.com\/wp-content\/uploads\/2024\/08\/picture_as_pdf_24dp-black.svg\" class=\"attachment-full size-full\" alt=\"picture_as_pdf_24dp-black\" \/>                                TRC Electric Utilities Services                            <\/h5>\n                            <p class=\"material-card__description\">Publi\u00e9 <\/p>\n                        <\/div>\n                        <div class=\"material-card__bttn\">\n                                                        <a href=\"https:\/\/www.trccompanies.com\/markets\/power-and-utilities\/electric-utilities\/\" target=\"_blank\"><span>t\u00e9l\u00e9charger le fichier<\/span><img decoding=\"async\" width=\"28\" height=\"28\" src=\"https:\/\/www.trccompanies.com\/wp-content\/uploads\/2024\/08\/sim_card_download_24dp-black.svg\" class=\"attachment-full size-full\" alt=\"sim_card_download_24dp-black\" \/><\/a>\n                        <\/div>\n                                    <\/div>\n            <\/div>\n                    <\/div>\n\n        <div class=\"material-cards__bottom text-right hidden-lg\">\n                    <\/div>\n    <\/div>\n<\/section>\n<!-- End Block: acf\/innerpage-related-materials -->\n\n<!-- Start Block: acf\/innerpage-promotion-blocks -->\n\n<section class=\"image-cta\">\n    <img decoding=\"async\" width=\"2309\" height=\"1299\" src=\"https:\/\/www.trccompanies.com\/wp-content\/uploads\/2024\/10\/GettyImages-1387344460-1.jpg\" class=\"image-cta-bg object-fit\" alt=\"GettyImages-1387344460-1\" srcset=\"https:\/\/www.trccompanies.com\/wp-content\/uploads\/2024\/10\/GettyImages-1387344460-1.jpg 2309w, https:\/\/www.trccompanies.com\/wp-content\/uploads\/2024\/10\/GettyImages-1387344460-1-300x169.jpg 300w, https:\/\/www.trccompanies.com\/wp-content\/uploads\/2024\/10\/GettyImages-1387344460-1-1024x576.jpg 1024w, https:\/\/www.trccompanies.com\/wp-content\/uploads\/2024\/10\/GettyImages-1387344460-1-768x432.jpg 768w, https:\/\/www.trccompanies.com\/wp-content\/uploads\/2024\/10\/GettyImages-1387344460-1-1536x864.jpg 1536w, https:\/\/www.trccompanies.com\/wp-content\/uploads\/2024\/10\/GettyImages-1387344460-1-2048x1152.jpg 2048w, https:\/\/www.trccompanies.com\/wp-content\/uploads\/2024\/10\/GettyImages-1387344460-1-1067x600.jpg 1067w\" sizes=\"(max-width: 2309px) 100vw, 2309px\" \/>    <div class=\"image-cta-back-curve\">\n        <span class=\"top\"><\/span>\n        <span class=\"bottom\"><\/span>\n        <span class=\"left\"><\/span>\n        <span class=\"right\"><\/span>\n    <\/div>\n    <div class=\"image-cta-front-curve\">\n        <span class=\"top\"><\/span>\n        <span class=\"bottom\"><\/span>\n        <span class=\"left\"><\/span>\n        <span class=\"right\"><\/span>\n    <\/div>\n    <div class=\"image-cta-overlay\">\n        <div class=\"image-cta-content js-animated-content animated-content\">\n            <h2>About TRC<\/h2>\n<p>TRC\u2019s approach to power system planning, design and operations balances solutions that incorporate appropriate standards, regulatory requirements, best practices, operational goals and budgets. Our work for public and private sector clients is a testament to our understanding of power system operations and planning and our successful application of technological solutions in a constantly evolving business and regulatory landscape.<\/p>\n<p>This regulatory update is a service to TRC\u2019s utility clients, helping keep you informed of issues that impact your company\u2019s electric system security risks along with related topics regarding future regulatory developments to help you achieve your company\u2019s business goals.<\/p>\n<p><a class=\"btn btn-primary\" href=\"https:\/\/www.trccompanies.com\/contact-us\/\">Contact Us<\/a><\/p>\n        <\/div>\n    <\/div>\n<\/section>\n\n<!-- End Block: acf\/innerpage-promotion-blocks -->","protected":false},"excerpt":{"rendered":"<p>There has been significant work across the electric industry to improve facility ratings related processes, programs, frameworks, internal controls and best practices. Yet this continues to be a challenging area for utilities, particularly from an asset management and regulatory compliance perspective.<\/p>\n","protected":false},"featured_media":6879,"template":"","tags":[596,207,251,280],"news-and-insights-category":[360],"services-category":[994],"custom_category":[1010],"class_list":["post-1715","news-and-insights","type-news-and-insights","status-publish","has-post-thumbnail","hentry","tag-electric-utility","tag-ferc","tag-nerc","tag-power-and-utilities","news-and-insights-category-regulatory-updates","services-category-regulatory-compliance","custom_category-power-utilities-markets"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Guidance on FAC-008-3 : NERC and FERC Take Action<\/title>\n<meta name=\"description\" content=\"There has been significant work across the electric industry to improve facility ratings related processes, programs, frameworks, internal controls and best practices. 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