1. NERC Entity Registration and Certification in the ERCOT Region
S. A. “Tony” Shiekhi, PE
November 2, 2007
NERC Compliance Workshop

2. Current Registration in ERCOT
Objectives
Current Registration in ERCOT
Identify and register entities who qualify
Correlate NERC functional model to ERCOT market participants
State the obligation that comes with registration
Appeals
Describe which entities must obtain NERC organizational certification
Register entities as Joint Registration Organizations (JRO)
Get familiar with various forms (Registration, JRO)
NERC Compliance Workshop
November 2, 2007

3. See NERC Rules of Procedure – Section 500:
Compliance Registry
NERC shall establish and maintain a compliance registry of the bulk power system owners, operators, and users that are subject to approved reliability standards (Energy Policy Act).
Texas RE has been delegated the task of organization registration and certification by NERC.
Texas RE will perform the registration and certification activities in accordance to NERC organization registration and certification procedures, which are incorporated into the Rules of Procedure as Appendix 5.
See NERC Rules of Procedure – Section 500:
NERC Compliance Workshop
November 2, 2007

4. Who Must Comply?
Any entity responsible for any part of bulk power system reliability
Historically defined as control areas and reliability coordinators
Functional entities
Aligns reliability requirements with functional unbundling
Entities that fall under the FERC Rule
All entities subject to the Commission’s reliability jurisdiction… (users, owners, and operators of the Bulk Power System) shall comply with applicable Reliability Standards …
NERC Compliance Workshop
November 2, 2007

5. Registration Process
For all geographical or electrical areas of the bulk power system, the registration process shall ensure that
No areas are lacking any entities to perform the duties and tasks identified in and required by the reliability standards to the fullest extent practical (no gaps in the registration), and
There is no duplication of such coverage or of required oversight of such coverage (no overlaps in the coverage).
NERC shall maintain publicly available process documentation.
NERC shall maintain the compliance registry of organizations responsible
for meeting the requirements of the reliability standards currently in effect
on its Web site and shall update the compliance registry monthly.
NERC Compliance Workshop
November 2, 2007

6. Who Is Registered in the ERCOT Region?
In ERCOT region, there are 166 entities with 222 functional responsibilities.*
94 Generator Owners (GO)
47 Generator Operators (GOP)
30 Transmission Owners (TO)
26 Transmission Planners (TP)
25 Distribution Providers (DP)*
There will be at least 33 Purchasing Selling Entities (PSE)*
There is ONLY one Balancing Authority (BA), Transmission Operators (TOP), one Reliability Coordinator (RC), Planning Authority (PA), Resource Planner (RP), and Transmission Service Provider (TSP)
*The number of entities will increase.
Refer to NERC Compliance Entity Registration List document on
NERC Entity Registration page of ERCOT.com:
NERC Compliance Workshop
November 2, 2007

7. NERC Entity Registration Steps
The following organization registration activities shall be performed by the Texas RE (NERC Rules of Procedure, Appendix 5).
Entities seeking registration shall contact the Texas RE to become registered and, if necessary, certified. However, Texas RE can register the entities by filling out the NERC Registration Form.
Texas RE will review the submitted form by the entity.
Texas RE will contact the entity to get clarification or needed information, if needed.
After the final review, Texas RE will submit the entity information to NERC.
NERC will send a notification through a registered mail to the registered entity.
Refer to NERC Registration Form – New Entity form on
NERC Entity Registration page of ERCOT.com:
NERC Compliance Workshop
November 2, 2007

8. NERC Entity Registration page of ERCOT.com:
Any Changes?
Each entity identified in the registry shall notify Texas RE of any changes in ownership, corporate structure, or similar matters that affect the entity’s responsibilities with respect to the reliability standards.
Failure to notify will not relieve the entity from any responsibility to comply with the reliability standards or shield it from any penalties or sanctions associated with failing to comply with such standards.
Please send any changes for your entity by end of each month
See the NERC Registration Form – Revisions to Entity’s Current Registration form on the
NERC Entity Registration page of ERCOT.com:
NERC Compliance Workshop
November 2, 2007

9. Typical ERCOT Entity Registrations
NERC Function ERCOT Entity Type
_____________________ ____________________________
Generator Owner (GO) Resource Entity with Generators
Generator Operator (GOP) QSE level 3 and 4
Transmission Owner (TO) TDSP
Transmission Owner (TP) TDSP
Distribution Provider (DP) TDSP
Purchasing Selling Entity (PSE) QSE level 1 and 2 with TSIN #
Load Serving Entity (LSE) UNDER REVIEW (QSE level 1 & 2)
These are typical, not absolute!
NERC Compliance Workshop
November 2, 2007

10. NERC GO/GOP Registration Criteria
Generator Owner/Operator (GO/GOP):
Individual generating unit > 20 MVA and directly connected to the bulk power system
Generating plant/facility > 75 MVA
A black start unit
Any generator that is material to the reliability of the bulk power system
NERC Compliance Workshop
November 2, 2007

11. GO/GOP Exclusions
A generator owner/operator will not be registered based on these criteria if responsibilities for compliance have been transferred by written agreement to another entity (ROP section 500).
As a general matter, entity may be excluded as a candidate for registration based on these criteria if
(i) the net capacity provided to the bulk power system does not exceed the criteria above or the Texas RE determines the generator is not material to the bulk power system;
(ii) standby, back-up and maintenance power services are provided to the generator (under approval of Texas RE or FERC).
NERC Compliance Workshop
November 2, 2007

12. NERC DP Registration Criteria
Distribution Provider (DP):
System serving >25 MW of peak load that is directly connected to the bulk power system
Registered entity that owns, controls, or operates facilities that are part of any of the following protection systems or programs designed, installed, and operated for the protection of the bulk power system:
a required under-frequency load-shedding (UFLS) program
a required under-voltage load-shedding (UVLS) program
a required special protection system
a required transmission protection system
NERC Compliance Workshop
November 2, 2007

13. NERC TO Registration Criteria
Transmission Owner (TO):
Owns an integrated transmission element associated with the bulk power system 100 kV and above OR
Owns a transmission element below 100 kV associated with a facility that is included on a critical facilities list that is defined by the ERCOT ISO
NERC Compliance Workshop
November 2, 2007

14. NERC LSE Registration Criteria
Load-Serving Entity (LSE):
Peak load at >25 MW
Connected to the bulk power (>100 kV) system OR
Required for UFLS program
Required for UVLS program
NERC Compliance Workshop
November 2, 2007

15. NERC PSE Registration Criteria
Purchasing-Selling Entity (PSE):
113 entities in the OATI (Open Access Technology International, Inc.) list
This list trimmed to 33 entities
OATI active DC tie Scheduling QSE list with the TSIN name (Transmission Service Information Network)
Operates as a QSE in the ERCOT market
NERC Compliance Workshop
November 2, 2007

16. ERCOT ISO NERC Registration
The ERCOT ISO is registered for the following NERC functions:
Reliability Coordinator (RC)
Transmission Operator (TOP)
Balancing Authority (BA)
Planning Authority (PA)
Transmission Service Provider (TSP)
Resource Planner (RP)
Some of the Standards Requirements for the above functions may be delegated by the ERCOT ISO to other ERCOT entities such as TOs.
NERC Compliance Workshop
November 2, 2007

17. NERC Entity Registration Appeal Process
Texas RE or the entity will register the entity for a NERC function.
NERC shall notify each organization of its registration through registered mail.
Any organization receiving such a notice may challenge the decision to include it on the compliance registry; it shall contact Texas RE and file its written objection with NERC’s director of compliance within 21 days stating the reasons it believes it should not be considered a bulk power system owner, operator, or user.
NERC Compliance Workshop
November 2, 2007

18. NERC Entity Registration Appeal Process (cont.)
Texas RE will work with the entity to resolve the issue. If no agreement is reached, Texas RE will respond to NERC with its response.
NERC will place the Texas RE’s response on the agenda for review.
The Compliance Committee of the Board of Trustees will promptly issue a written decision on the challenge, including the reasons for the decision.
The decision of the Compliance Committee shall be final unless, within 21 days, the organization appeals the decision to the applicable governmental authority (FERC).
NERC Compliance Workshop
November 2, 2007

19. Current Appeals
Texas RE has three appeals from entities under review and has to respond to NERC.
Two are from GOPs.
One is from a GO.
NERC Compliance Workshop
November 2, 2007

20. NERC Entity Certification in ERCOT Region
NERC/Texas RE shall provide for certification of all entities with primary reliability responsibilities requiring certification as established in the NERC reliability standards.
Entities expected to be certified include reliability coordinators, transmission operators, and balancing authorities. Other entities may be added as required by approved reliability standards.
The NERC program shall:
Evaluate and certify the competency of entities performing reliability functions.
Certify each entity’s ability to meet the minimum requirements established by the NERC reliability standards for each function.
Maintain process documentation.
Maintain records of currently certified entities.
NERC Compliance Workshop
November 2, 2007

21. Joint Registration Organizations
The Joint Registration Organization (JRO) registers as the entity responsible for all functions that a JRO performs itself, and on the behalf of one or more of its members or related entities for one or more functions (GO, GOP, DP, etc.).
JRO agrees to perform any or all requirements identified in the reliability standards that would otherwise be the responsibility of one or more of its members or related entities.
Joint registration is pursuant to a written agreement.
The JRO and its members or related entities agree (in a written agreement that clearly specifies their respective responsibilities) to register and divide the responsibility among themselves to a particular function, for one or more requirements within particular NERC reliability standard/s.
NERC Compliance Workshop
November 2, 2007

22. Joint Registration Organizations (cont.)
Texas RE or NERC may request clarification of any list submitted or additional information on the joint registration.
Texas RE shall notify NERC of each joint registration that it accepts.
NERC shall maintain and post on its website a JRO registry listing of all joint registrations that have been accepted by NERC or Texas RE with the listing of the reliability standards and its requirement associated to each entity.
Annually, following submission of a joint registration, the JRO shall submit a form (specified by Texas RE) with a list to Texas RE:
Any changes from prior year (i.e., the contact information)
The functions for which the entities have registered
NERC Compliance Workshop
November 2, 2007

23. Joint Registration Organizations (cont.) – NERC Standards Violations
In the event of a violation, the JRO or its member or related entity identified in the JRO registry as responsible for such reliability standard or requirement shall be identified in the notice of alleged violation and shall be assessed the sanction or penalty for the violation.
Texas RE will follow the NERC Sanctions Guidelines for a violation that is attributable to a member or related entity that is registered under the joint registration.
NERC Compliance Workshop
November 2, 2007

24. Joint Registration Organizations (cont
Joint Registration Organizations (cont.) – Individual Member Registration
Nothing in Section 507 shall preclude a member of a JRO, a related entity, or any other entity, from registering on its own behalf and undertaking full compliance responsibility, including reporting requirements, for the reliability standards applicable to the function(s) for which the member or other entity is registering.
A JRO member or related entity that registers as responsible for any reliability standard or requirement of a reliability standards shall inform the JRO of its registration.
NERC Compliance Workshop
November 2, 2007

25. Where to Find NERC Entity Registration Info
NERC Compliance Workshop
November 2, 2007

26. Important Links Texas RE landing page on ERCOT.com
NERC Entity Registration page on ERCOT.com
NERC Entity Registration Forms
NERC Entity Registration List for ERCOT Region
Reliability Standards page on ERCOT.com
FERC-Approved Mandatory NERC Standards by Function with Violation Risk Factors
NERC website
BOT Approved Reliability Standards
NERC Statement of Registry Criteria Rev3-1
(found on Organization Registration and Certification,
NERC Functional Model Version 3
(found in Reliability Standards,
NERC Compliance Workshop
November 2, 2007

27. Registration
Questions?
NERC Compliance Workshop
November 2, 2007