Compliance Under Order No. 787: Communications Between RTOs, Pipelines and LDCs. Seventh Annual Market Regulation Conference October 9, 2014 Christopher Barr Post & Schell , P.C. Summary and overview Development of Order No. 787 Implementation and LDC Compliance Issues.
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Compliance Under Order No. 787:Communications Between RTOs, Pipelines and LDCs
Seventh Annual Market Regulation Conference
October 9, 2014
Post & Schell, P.C.
Development of Order No. 787
Part of broader gas-electric coordination efforts.
Part of a broader range of gas/electric initiatives (cont.)
“In an effort to provide certainty to the industry and remove barriers–real or perceived—to the sharing of non-public, operational information, the Commission proposes to revise its regulations to authorize expressly the exchange of non-public, operational information between electric transmission operators and interstate natural gas pipelines. The Commission intends to remove any barriers to the sharing of non-public, operational information, not just during emergencies, but also for day-to-day operations, planned outages, and scheduled maintenance.”
“[I]n consideration of the concerns regarding the exchange of non-public operational information, the Commission also proposes to adopt a No-Conduit Rule which prohibits recipients of the non-public, operational information from subsequently disclosing or being a conduit for subsequently disclosing that information to any other entity.”
“is authorized to share non-public, operational information with a pipeline, as defined in §284.12(b)(4) of this chapter, or another public utility covered by this section for the purpose of promoting reliable service or operational planning.”
“a pipeline is authorized to share non-public, operational information with a public utility, as defined in §38.2(a) of this chapter or another pipeline covered by this section, for the purpose of promoting reliable service or operational planning.
(ii) Except as permitted in paragraph (b)(4)(i) of this section, a pipeline and its employees, contractors, consultants, and agents are prohibited from disclosing, or using anyone as a conduit for the disclosure of, non-public, operational information received from a public utility pursuant to §38.2 of this chapter to a third party or to its marketing function employees as that term is defined in §358.3(d) of this chapter.”
“that information which they find relevant to promote reliable service or operational planning on their systems. As explained in the NOPR, and reaffirmed here, the Commission is providing flexibility to transmission operators—who have the most insight and knowledge of their systems—to determine what non-public, operational information, if any, they deem valuable to maintain the reliability and integrity of their systems.”
“prohibits recipients of non-public, operational information pursuant to the Final Rule from subsequently disclosing that information to a third party or a marketing function employee, as that term is defined in section 358.3(d) of the Commission’s regulations.”
“to the extent that an electric transmission operator or interstate natural gas pipeline has a tariff provision which precludes a communication that would otherwise be authorized under the Final Rule, it will have to make a filing under section 205 of the FPA or section 4 of the NGA to revise that tariff provision to allow the exchanges of information permitted by this Final Rule.”
“[T]he No-Conduit Rule adopted in this Final Rule does not otherwise affect the ability of interstate natural gas pipelines to exchange operational information among themselves or with LDCs regarding actual or potential pipeline or distribution system operational conditions affecting the gas flow between these physically interconnected parties.
“affect the ability of an electric transmission
operator to share its own information with
an LDC, if otherwise permitted under its tariff.”
See P 56, also fn. 27.
“Electric transmission operators that see the need for such communication given the circumstances on their systems may develop tariff provisions that establish acceptable procedures for the handling and protection from inappropriate disclosure or use of such information.”
Granted two of four requested waivers, permitting shared LDC employees in the gas control center to receive and share non-public operational data from electric utilities via the pipeline, subject to conditions.
Denied the other two waiver requests, including a request for authority to share notice of impending power outages, concerned that access to confidential, customer-specific data could result in preferential access by marketing personnel in the affiliates.
Granted a protested waiver request as to shared employees of intrastate pipelines operationally involved in providing services to the interstate pipeline, subject to the same conditions as were imposed in National Fuel.
Granted a waiver request as to employees shared between Transco and its intrastate pipeline affiliate Cardinal, because of their joint work on gas control, customer service and operations, subject to similar conditions as in National Fuel and Enable.
Implementation and LDC Compliance Issues
“38. PERMITTED SHARING OF NON-PUBLIC INFORMATION
Pursuant to FERC Order No. 787 and subject to the requirements of FERC Order No. 787, Transporter shall have the right to share, from time to time on a voluntary basis, non-public operational information with an independent System Operator, Regional Transmission Organization or public utility that owns, operates, or controls facilities used
for transmission of electric energy in interstate commerce (collectively “Electric Transmission Operator”) for the purpose of promoting reliable service or operational planning on either the Transporter’s or Electric Transmission Operator’s system. Transporter’s primary point of contact and the protocols for the sharing of such nonpublic information will be provided to each Electric Transmission Operator in Transporter’s service territory. All such sharing of non-public operational or planning
information will be in accordance with those protocols. A list of the Electric Transmission Operators who have agreed to the protocols will be maintained on Transporter’s Informational Postings website.”
“Further, the Office of the Interconnection shall be permitted to share non-public, operational information with natural gas local distribution companies and/or intrastate natural gas pipeline operators, as appropriate, for the purpose of promoting reliable service or operational planning, provided that such party has acknowledged, in writing, that it shall not disclose, or use anyone as a conduit for disclosure of, non-public, operational information received from the Office of Interconnection to a third party or in an unduly discriminatory or preferential manner or to the detriment of any natural gas and/or electric market. Such non-public, operational information received from natural gas local distribution companies and/or intrastate natural gas pipeline operators pursuant to this section will be subject to the confidentiality provisions set forth in this Section 18.17 of the Operating Agreement.”
“communication of non-public, operational information concerning natural gas-fueled generation from resources located within the New York Control Area between the ISO and the operating personnel of natural gas local distribution companies and/or intrastate natural gas pipeline operators for the purpose of promoting reliable service or operational planning, provided that such party has acknowledged, in writing, that it is prohibited from disclosing, or using anyone as a conduit for disclosure of, non-public, operational information received from the ISO to an affiliate or third party.”