FERC and NERC: NERC

Overseen by the FERC is the electric reliability organization (ERO) called the North American Electric Reliability Council (NERC). Together, NERC and FERC ensure the reliability of the grid. Under Section 215 of the Federal Power Act, owners, operators, and users of the Bulk-Power System (generation and transmission) are required to meet reliability standards, which include Operations and Planning reliability standards as well as Critical Infrastructure Protection reliability standards as well. While FERC reviews the standards set fourth by NERC, NERC is made up of representatives from private utilities, RTO’s, and ISO’s who themselves write the standards for the bulk power grid. In reviewing standards, NERC is responsible for creating standards that are “just, reasonable, not unduly discriminatory or preferential, and in the public interest.”

NERC oversees 8 interconnections displayed below:

Within these interconnection areas designated by NERC, regional transmission organizations, or RTOs, operate the transmission system from day to day. Regional Transmission Systems are similar to ISOs, or independent system operators, however, RTOs are likely to operate across state lines whereas ISOs are more localized.

In conclusion, the Federal Energy Regulatory Commission designated the North American Electric Reliability Council to create standards for the operation of the bulk power system comprised of generation and transmission resources. While NERC writes the enforced standards, FERC is ultimately responsible for reviewing and affirming them. Within each interconnection are regional transmission operators and independent system operators that actually regulate the grid and oversee it. In this way, the bulk power system is independently monitored and regulated for continuous, reliable, and safe energy.