NERC Case Notes: Reliability Standard BAL-003-0a


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Northern Indiana Public Service Company, FERC Docket NP10-115-000 (June 2, 2010)

Reliability Standard: BAL-003-0a

Requirement: R1, R2

Violation Risk Factor: R1 (Lower), R2 (Medium)

Violation Severity Level: Not provided

Region: RFC

Issue: During a compliance audit, ReliabilityFirst identified a violation because NIPSCo could not provide evidence that it had recalculated the Frequency Bias Setting since January 1, 2001, and in fact had been using the same Frequency Bias Setting since 2001. This Frequency Bias Setting had not been calculated in the manner required by the standard.

Finding: Duration of violations from June 18, 2007, when the standards became enforceable, through January 6, 2009 when NIPSCo's Balancing Authority Area functions were taken over by the Midwest ISO. The violations did not pose a serious or substantial risk to the reliability of the bulk power system because NIPSCo's Frequency Bias comprised less than one (1) percent of the total Eastern Interconnection Frequency Bias, and when the Frequency Bias Settings were eventually recalculated, they turned out to be less than the previous Frequency Bias Setting. These were also NIPSCo's first violations of the standard.

Penalty: $5,000 (aggregate for multiple violations)

FERC Order: Issued July 2, 2010 (no further review)