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UNITED STATES OF AMERICA
BEFORE THE
FEDERAL ENERGY REGULATORY COMMISSION
Communication of Operational Information )
Between Natural Gas Pipelines and Electric )
Transmission Operators
)
Docket No. RM13-17-000
REQUEST FOR CLARIFICATION OF PEAK RELIABILITY
Peak Reliability (“Peak”) respectfully requests clarification of the Orders in this
proceeding addressing communication of operational information between natural gas
pipelines and electric transmission operators1 to ensure that a Reliability Coordinator that
is not a Transmission Operator is not prohibited from receiving non-public operational
information, subject to any appropriate non-disclosure agreements.
Access to such
information would allow Peak to better evaluate options to ensure reliability throughout
its Reliability Coordinator Area (“RC Area”). Because the West Coast will face specific
challenges this summer season, Peak is seeking clarification that such information can be
shared with the Reliability Coordinator to have a more complete view of the reliability
constraints and challenges faced by the Balancing Authority and Transmission Operator
within its RC Area to maintain compliance with the Reliability Standards. Because of the
coming summer may pose unprecedented challenges, particularly with natural gas storage
issues in Southern California, Peak seeks expedited consideration of this request.
1
Communication of Operational Information Between Natural Gas Pipelines and Electric Transmission
Operators, Order No. 787, FERC Stats. & Regs. ¶ 31,350 (2013), order on reh’g, Order No. 787-A, 147
FERC ¶ 61,228 (2014).
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I.
BACKGROUND
With the exception of Alberta, Canada, Peak is the Reliability Coordinator (“RC”)
for the Western Interconnection. Peak was formed as a result of the bifurcation of the
Western Electricity Coordinating Council (“WECC”) into a Regional Entity (WECC) and
a Reliability Coordinator (Peak). The bifurcation of WECC received final approval from
the Commission on February 12, 2014.2 Peak, a company wholly independent of WECC,
performs the Reliability Coordinator function in its RC Area in the Western
Interconnection.
As a Reliability Coordinator, Peak ensures reliable operation of the Bulk Electric
System in its RC Area, which spans approximately 1.6 million square miles, from British
Columbia to Northern Mexico and includes all or portions of the 14 Western states
between. In concert with the Balancing Authorities and Transmission Operators, Peak
works to ensure that the Bulk Electric System is operated within specified limits, and that
system conditions are stable within its RC Area.
As a NERC-registered Reliability Coordinator, Peak is subject to FERC
jurisdiction for compliance with the NERC Reliability Standards under Section 215 of the
Federal Power Act, but Peak is not a Transmission Operator, Owner or public utility as
defined in the FERC regulations. Peak is rather unique in its structure, as it does not
perform additional functions that qualify it for jurisdiction under other areas of FERC
regulation.
2
North American Electric Reliability Corp., 145 FERC ¶ 61,202 (2013), order on compliance, 146 FERC ¶
61,092, at ordering para. (C), reh’g denied, 147 FERC ¶ 61,064 (2014).
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At least one region in the West, Southern California, is facing particularly difficult
challenges this summer relating to natural gas and electric coordination for reliability. As
the Commission is aware, in October 2015, the Aliso Canyon natural gas storage facility
in Southern California experienced a large gas leak significantly affecting gas markets
and many of the people that live and work in the area. The facility is a key part of the gas
system, serving gas customers in the Los Angeles Basin, including gas-fired power
plants. The leak was plugged in February 2016, but the Aliso Canyon facility will be
available for only limited service during the summer months (and beyond). According
to a joint action plan released by the California Energy Commission, the California
Public Utilities Commission, the California Independent System Operator (“California
ISO”) and the Los Angeles Department of Water and Power, California may experience
electric service interruptions for up to two weeks during the coming summer.3 On May
4, 2016, the California ISO’s Board of Governors approved a proposal to improve gaselectric coordination and reduce risks of electric delivery issues associated with the
limitations on the Aliso Canyon facility.4
Peak is actively following activities in
California to address these conditions.
3
Aliso Canyon Action Plan to Preserve Gas and Electric Reliability for the Los Angeles Basin, prepared by
the Staff of the California Public Utilities Commission, California Energy Commission, the California
Independent System Operator and the Los Angeles Department of Water and Power, issued April 8, 2016,
at p. 3. This report can be found at the following link:
http://www.energy.ca.gov/2016_energypolicy/documents/2016-0408_joint_agency_workshop/Aliso_Canyon_Action_Plan_to_Preserve_Gas_and_Electric_Reliability_for_th
e_Los_Angeles_Basin.pdf.
4
California ISO News Release, ISO Board accepts proposal to improve gas-electric coordination, issued
May 5, 2016. http://www.caiso.com/Documents/ISOBoardAcceptsProposalToImproveGasElectricCoordination.pdf
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II.
REQUEST FOR CLARIFICATION
Due to the critical nature of natural gas storage in Southern California, and the
resulting reliability impacts, Peak has determined that it requires access to a broader
scope of information to fulfill its duties to monitor real-time and forecasted reliability
issues for this region. Peak’s ability to anticipate and respond to reliability challenges
would be enhanced with access to transportation and outage data from natural gas
pipelines. As the Commission has acknowledged, the interdependence of the electric and
natural gas industries is greater than ever before. However, as a unique entity that
performs reliability coordination but does not own, operate or control any FERCjurisdictional assets, Peak does not have a FERC-jurisdictional tariff to provide a
mechanism to share data with its members or other industry participants. Peak engages
data sharing under a multi-party agreement with the Balancing Authorities and
Transmission Operators in its RC Area, but currently does not have an alternative
mechanism to facilitate data exchange with other entities.
Peak here is seeking
clarification from the Commission that the regulations established under Order No. 787
permit entities to share information with Peak, as the RC, in order to enhance reliability.
In Order No. 787, the Commission amended its existing regulations to provide
authority to natural gas pipelines and public utilities that “own, operate or control
facilities used in the transmission of electric energy in interstate commerce” to share nonpublic information. The Commission explained that such sharing would “promote the
reliability and operational integrity of both the electric transmission and pipeline
systems.” Order No. 787 at P 41. Among other revisions, the Commission amended Part
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284 of its regulations to permit natural gas pipelines “to share non-public, operational
information with a public utility . . . for the purpose of promoting reliable service or
operational planning.” 18 C.F.R. § 284.12(b)(4)(i). The Commission also included a
prohibition on the sharing of non-public, operational information obtained from a public
utility with a third party to maintain confidentiality of the information. See 18 C.F.R.
§ 284.12(b)(4)(ii). Because Peak does not fall within the definition of a “public utility”
as defined in 18 C.F.R. § 38.2, a narrow reading of revised Part 284 would appear to
prohibit natural gas pipelines from sharing of this non-public information with Peak,
regardless of the reliability benefits from doing so.
However, in its review of entities covered under the rule, the Commission notes
that the regulatory restrictions under Order No. 787 do not otherwise affect the ability to
exchange operational information among physically interconnected natural gas entities,
and between an electric utility and Local Distribution Company “if otherwise permitted
under its tariff.” Order No. 787 at P 56. In fact, the purpose behind the rule was to
provide a mechanism to share this non-public operational information for enhanced
reliability. As the Commission has recognized, reliability of the Bulk Power System is
impacted by the interdependence between natural gas and electric industries and the
interaction between the natural gas and electric transmission systems. See Order No. 787
at P 2 (citing the Southwest Cold Weather Event as demonstrating the critical interaction
and need for communication between of these two industries). Because Peak does not
own or operate any generation or transmission assets, nor natural gas transportation
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facilities, there are no competitive concerns to address with the provision of this
information for evaluation of reliability concerns.
In Order No. 787, the Commission notes that transmission operators are not
prohibited from “sharing their own operational information with other interconnecting
entities involved in ensuring the reliability of system operations,” only the subsequent
disclosure of this information to third parties. Order No. 787 at P 97. Therefore, Peak
does not understand the regulations to prohibit transmission operators from sharing their
own non-public, operational information directly with Peak for use in reliability analysis,
subject to appropriate non-disclosure agreements.
The Commission provides an
alternative mechanism to permit communications, stating that case-by-case tariff
revisions that establish acceptable procedures for handling and protecting this non-public
information could be filed for review. Order No. 787 at P 57. However, as an entity that
does not own or operate jurisdictional assets, Peak has no tariff mechanism to facilitate
provision of non-public operational information from natural gas pipelines within its RC
Area.
Peak simply requests clarification that it may obtain non-public operational
information from natural gas pipelines to enhance its ability to evaluate the reliable
operation of the bulk electric system within its RC Area. Peak notes that applying the
regulations to the RC function supports the Commission’s stated goal to “help maintain
the reliability of pipeline and public utility transmission service.” Order No. 787 at P 1.
As noted above, Peak currently employs a specific data sharing agreement with
the Balancing Authorities and Transmission Operators in its RC Area to allow for realtime, non-public, operational information to be provided from these members. However,
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Peak does not have access to natural gas pipeline operational information, which may be
critical for reliability evaluation in the coming summer months, and beyond. Therefore,
Peak seeks clarification that it is not prohibited under the regulations from gaining access
to this information from natural gas pipelines, subject to appropriate non-disclosure
agreements.
III.
CONCLUSION
Consistent with the intent of Order No. 787, Peak requests clarification that the
Commission would allow sharing of information with Peak to enhance its ability to
perform its Reliability Coordinator duties. Given the challenges faced by the West in
coming summer months, Peak seeks expedited consideration of this request.
Respectfully submitted,
/s/ Matthew Yates
Matthew Yates
Associate General Counsel
Peak Reliability
7600 NE 41st Street, Suite 201
Vancouver, WA
Phone: 360-567-4070
Email: myates@peakrc.com
Dated: May 12, 2016
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Document Content(s)
Peak_Clarification.PDF................................................1-7