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Statement: June 19, 2008 Print this page
Docket No: RR08-4-000

Commissioner Kelly's statement on order on violation severity levels proposed by the electric reliability organization

  • Last may we accepted NERC's proposal to tie the penalty range it will impose for reliability standard violations to risk that a violation of a particular reliability standard poses to the bulk power system's reliability.

  • Today's order accepts, with certain conditions, NERC's proposed violation severity levels, or "VSLS," for requirements and sub-requirements in the 83 reliability standards approved last year.

  • These orders provide a framework for enforcement of NERC's reliability standards that will promote consistency and fairness in enforcement actions, as well as greater certainty for the regulated community

  • NERC's comprehensive proposal reflects a painstaking process that appears to have left no stone unturned: it contains almost 3,000 proposed VSL assignments for the 83 reliability standards.

  • Clearly an enormous amount of thought and effort went into NERC's proposal, as has been the case throughout its huge and daunting task of establishing monetary and non-monetary penalties for violations of the reliability standards.

  • NERC's efforts are all the more remarkable given that it has been only one year-almost to the day-(June 18) since the 83 reliability standards went into effect. That NERC has made so much progress in such a short period of time reflects its commitment to promote a culture of compliance.

  • We share that commitment. Accordingly, I am pleased to vote out this order.

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