Feb. 21, 2002 — NERC’s independent Board of Trustees on Wednesday voted to continue to set, monitor, and enforce compliance with reliability standards for the interconnected North American electric grid, while agreeing not to pursue the development of wholesale electric business practice standards.
NERC Board Chairman Richard Drouin stated “a reliable bulk power system in North America is of paramount public interest.” Because NERC has the technical expertise, experience, credibility, staff, and independent governance to serve the broad public interest, as well as the clear responsibility to set, monitor, and enforce compliance with reliability standards, “NERC’s principal mission must be reliability,” he emphasized.
The Board also pledged to work with all interested parties to create a workable process to coordinate NERC’s standards with the development of related industry standards. Further, the Board committed to work with the industry to develop a joint filing by March 15 in response to the Federal Energy Regulatory Commission’s (FERC) December 19 order.
That order stated FERC would develop standard market design principles and directed the industry to establish a single industry-wide organization to develop wholesale electric business practice standards and communication protocols to complement those principles. FERC’s order also stated that the industry should adopt a process to coordinate between wholesale electric business practice standards and reliability standards.
“NERC looks forward to being an active participant in shaping the industry response to the Commission by March 15,” stated Michehl R. Gent, NERC President and CEO.
The board underscored that it is committed to developing reliability standards that enable and encourage market solutions to the maximum extent possible throughout North America.
NERC is a not-for-profit company formed as a result of the Northeast blackout in 1965 to promote the reliability of the bulk electric systems that serve North America. It works with all segments of the electric industry as well as customers to “keep the lights on” by developing and encouraging compliance with rules for the reliable operation of these systems. NERC comprises ten Regional Reliability Councils that account for virtually all the electricity supplied in the United States, Canada, and a portion of Baja California Norte, Mexico.