Common use of Commission Determination Clause in Contracts

Commission Determination. 48. The Commission accepts ▇▇▇▇’s proposed revisions to section 6.5, subject to the following conditions. First, we note that the first paragraph of section 6.5 contemplates that a Registered Entity may submit a mitigation plan initially either to a Regional Entity or to NERC. This is so because, by definition, a Regional Entity or NERC may be a “compliance enforcement authority.” We understand that Registered Entities generally submit mitigation plans initially to Regional Entities. However, there are instances in Docket No. RR06-1-016, et al. -18- which it is appropriate that NERC initially review a mitigation plan. For example, NERC may initially receive a mitigation plan from a Registered Entity because NERC is conducting a compliance violation investigation of the Registered Entity. NERC may also receive a mitigation plan from a Regional Entity for a violation of a Reliability Standard applicable to the Regional Entity.24 Accordingly, we construe the first paragraph of section 6.5 to apply to the initial review of a mitigation plan, either by a Regional Entity or by NERC. 25 49. The Commission rejects TANC’s request that section 6.5 be revised to provide for a 30-day de facto approval when a compliance enforcement authority refers a mitigation plan to NERC. The second paragraph of section 6.5 would state, as proposed by ▇▇▇▇, that within 30 days of receipt of a mitigation plan from a Regional Entity, NERC will either approve or disapprove the plan. The 65-day de facto approval period that TANC seeks for NERC’s referral of a mitigation plan to a Regional Entity is not necessary because section 6.5 does not contemplate such a referral. Nor do we agree that the term “compliance enforcement authority” should be deleted from the first paragraph of section 6.5, given our interpretation of this provision. Finally, we reject TANC’s proposal to amend that paragraph to require that a Regional Entity notify NERC and the relevant Registered Entity within 30 days of receipt of a mitigation plan that the Regional Entity either accepts or rejects the plan. This proposal would remove the Regional Entity’s appropriate discretion, already established in the first paragraph of section 6.5, to extend the period for review of a mitigation plan beyond 30 days after its receipt. 50. However, we agree with TANC that a Registered Entity that submits a mitigation plan should receive some certainty about the time period for the plan’s initial consideration. Accordingly, we direct NERC to amend the first paragraph of section 6.5 to provide that if a compliance enforcement authority extends the period for initial review of a mitigation plan, it must, within 30 days of the date of receipt of the mitigation plan: (i) notify the Registered Entity (and NERC, if NERC is not itself acting as the 24 See section 404.2 of the NERC Rules of Procedure.

Commission Determination. 48. The Commission accepts ▇▇▇▇’s proposed revisions to section 6.5, subject to the following conditions. First, we note that the first paragraph of section 6.5 contemplates that a Registered Entity may submit a mitigation plan initially either to a Regional Entity or to NERC. This is so because, by definition, a Regional Entity or NERC may be a “compliance enforcement authority.” We understand that Registered Entities generally submit mitigation plans initially to Regional Entities. However, there are instances in 23 Section 6.4 provides that a Registered Entity must submit a mitigation plan within 30 days after being served a notice of alleged violation, if it does not contest the alleged violation. Docket No. RR06-1-016, et al. -18- which it is appropriate that NERC initially review a mitigation plan. For example, NERC may initially receive a mitigation plan from a Registered Entity because NERC is conducting a compliance violation investigation of the Registered Entity. NERC may also receive a mitigation plan from a Regional Entity for a violation of a Reliability Standard applicable to the Regional Entity.24 Accordingly, we construe the first paragraph of section 6.5 to apply to the initial review of a mitigation plan, either by a Regional Entity or by NERC. 25 49. The Commission rejects TANC’s request that section 6.5 be revised to provide for a 30-day de facto approval when a compliance enforcement authority refers a mitigation plan to NERC. The second paragraph of section 6.5 would state, as proposed by ▇▇▇▇, that within 30 days of receipt of a mitigation plan from a Regional Entity, NERC will either approve or disapprove the plan. The 65-day de facto approval period that TANC seeks for NERC’s referral of a mitigation plan to a Regional Entity is not necessary because section 6.5 does not contemplate such a referral. Nor do we agree that the term “compliance enforcement authority” should be deleted from the first paragraph of section 6.5, given our interpretation of this provision. Finally, we reject TANC’s proposal to amend that paragraph to require that a Regional Entity notify NERC and the relevant Registered Entity within 30 days of receipt of a mitigation plan that the Regional Entity either accepts or rejects the plan. This proposal would remove the Regional Entity’s appropriate discretion, already established in the first paragraph of section 6.5, to extend the period for review of a mitigation plan beyond 30 days after its receipt. 50. However, we agree with TANC that a Registered Entity that submits a mitigation plan should receive some certainty about the time period for the plan’s initial consideration. Accordingly, we direct NERC to amend the first paragraph of section 6.5 to provide that if a compliance enforcement authority extends the period for initial review of a mitigation plan, it must, within 30 days of the date of receipt of the mitigation plan: (i) notify the Registered Entity (and NERC, if NERC is not itself acting as the 24 See section 404.2 of the NERC Rules of Procedure.. 25 NERC may consult with the relevant Regional Entity when NERC receives a mitigation plan for initial review, or transfer the mitigation plan to a Regional Entity for initial review if NERC concludes that a transfer would be appropriate. However, section

Commission Determination. 48. The Commission accepts ▇▇▇▇’s proposed revisions to section 6.5, subject to the following conditions. First, we note that the first paragraph of section 6.5 contemplates that a Registered Entity may submit a mitigation plan initially either to a Regional Entity or to NERC. This is so because, by definition, a Regional Entity or NERC may be a “compliance enforcement authority.” We understand that Registered Entities generally submit mitigation plans initially to Regional Entities. However, there are instances in Docket No. RR06-1-016, et al. -18- which it is appropriate that NERC initially review a mitigation plan. For example, NERC may initially receive a mitigation plan from a Registered Entity because NERC is conducting a compliance violation investigation of the Registered Entity. NERC may also receive a mitigation plan from a Regional Entity for a violation of a Reliability Standard applicable to the Regional Entity.24 Accordingly, we construe the first paragraph of section 6.5 to apply to the initial review of a mitigation plan, either by a Regional Entity or by NERC. 25 49. The Commission rejects TANC’s request that section 6.5 be revised to provide for a 30-day de facto approval when a compliance enforcement authority refers a mitigation plan to NERC. The second paragraph of section 6.5 would state, as proposed by ▇▇▇▇, that within 30 days of receipt of a mitigation plan from a Regional Entity, NERC will either approve or disapprove the plan. The 65-day de facto approval period that TANC seeks for NERC’s referral of a mitigation plan to a Regional Entity is not necessary because section 6.5 does not contemplate such a referral. Nor do we agree that the term “compliance enforcement authority” should be deleted from the first paragraph of section 6.5, given our interpretation of this provision. Finally, we reject TANC’s proposal to amend that paragraph to require that a Regional Entity notify NERC and the relevant Registered Entity within 30 days of receipt of a mitigation plan that the Regional Entity either accepts or rejects the plan. This proposal would remove the Regional Entity’s appropriate discretion, already established in the first paragraph of section 6.5, to extend the period for review of a mitigation plan beyond 30 days after its receipt. 50. However, we agree with TANC that a Registered Entity that submits a mitigation plan should receive some certainty about the time period for the plan’s initial consideration. Accordingly, we direct NERC to amend the first paragraph of section 6.5 to provide that if a compliance enforcement authority extends the period for initial review of a mitigation plan, it must, within 30 days of the date of receipt of the mitigation plan: (i) notify the Registered Entity (and NERC, if NERC is not itself acting as the 24 See section 404.2 of the NERC Rules of Procedure.

Commission Determination. 48. The Commission accepts ▇▇▇▇NERC’s proposed revisions to section 6.5, subject to the following conditions. First, we note that the first paragraph of section 6.5 contemplates that a Registered Entity may submit a mitigation plan initially either to a Regional Entity or to NERC. This is so because, by definition, a Regional Entity or NERC may be a “compliance enforcement authority.” We understand that Registered Entities generally submit mitigation plans initially to Regional Entities. However, there are instances in 23 Section 6.4 provides that a Registered Entity must submit a mitigation plan within 30 days after being served a notice of alleged violation, if it does not contest the alleged violation. Docket No. RR06-1-016, et al. -18- which it is appropriate that NERC initially review a mitigation plan. For example, NERC may initially receive a mitigation plan from a Registered Entity because NERC is conducting a compliance violation investigation of the Registered Entity. NERC may also receive a mitigation plan from a Regional Entity for a violation of a Reliability Standard applicable to the Regional Entity.24 Accordingly, we construe the first paragraph of section 6.5 to apply to the initial review of a mitigation plan, either by a Regional Entity or by NERC. 25 49. The Commission rejects TANC’s request that section 6.5 be revised to provide for a 30-day de facto approval when a compliance enforcement authority refers a mitigation plan to NERC. The second paragraph of section 6.5 would state, as proposed by ▇▇▇▇, that within 30 days of receipt of a mitigation plan from a Regional Entity, NERC will either approve or disapprove the plan. The 65-day de facto approval period that TANC seeks for NERC’s referral of a mitigation plan to a Regional Entity is not necessary because section 6.5 does not contemplate such a referral. Nor do we agree that the term “compliance enforcement authority” should be deleted from the first paragraph of section 6.5, given our interpretation of this provision. Finally, we reject TANC’s proposal to amend that paragraph to require that a Regional Entity notify NERC and the relevant Registered Entity within 30 days of receipt of a mitigation plan that the Regional Entity either accepts or rejects the plan. This proposal would remove the Regional Entity’s appropriate discretion, already established in the first paragraph of section 6.5, to extend the period for review of a mitigation plan beyond 30 days after its receipt. 50. However, we agree with TANC that a Registered Entity that submits a mitigation plan should receive some certainty about the time period for the plan’s initial consideration. Accordingly, we direct NERC to amend the first paragraph of section 6.5 to provide that if a compliance enforcement authority extends the period for initial review of a mitigation plan, it must, within 30 days of the date of receipt of the mitigation plan: (i) notify the Registered Entity (and NERC, if NERC is not itself acting as the 24 See section 404.2 of the NERC Rules of Procedure.. 25 NERC may consult with the relevant Regional Entity when NERC receives a mitigation plan for initial review, or transfer the mitigation plan to a Regional Entity for initial review if NERC concludes that a transfer would be appropriate. However, section