Related Files
Status
A 30-day informal comment period for the Cost Effectiveness Pilot is available until 8 p.m. Eastern, Thursday, May 26, 2016.
BackgroundFederal, state and provincial regulatory authorities, the NERC Board of Trustees, Regional Entities, and many industry stakeholders have expressed interest in the identification of the costs incurred from implementing NERC Reliability Standards compared to risks addressed. The desire is to balance costs and risks during the standards development and revision process.
In the past, determination of the costs from the implementation of NERC Reliability Standards was implicitly considered throughout the standards development process. Through this process, detailed comments are sought and modifications to proposed standards are made based on input from the standards ballot pool, which represents a cross-section of interested participants. However, some entities have requested a more direct assessment of costs, citing a number of different reasons. For example, registered entities have identified the need to estimate implementation costs for budgeting and rate case development. Further, many state regulators would like this information to determine consumer costs implications.
Standard(s) Affected: TPL-001-4
Purpose/Industry Need
A voluntary questionnaire will be provided to industry participants in order to obtain sufficient information to develop a high level analysis of the risk reduction to the BES under consideration, as well as the potential costs (e.g. monetary and societal) of not addressing the reliability risks.
