NERC and Enforcement Issues: NERC Provides New Definition of Bulk Electric System

Section 215 of the Federal Power Act (FPA) broadly defines the Bulk-Power System (BPS) as “(A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof); and (B) electric energy from generating facilities needed to maintain transmission system reliability.” Defining the extent of the BPS is important because the Federal Energy Regulatory Commission (FERC) requires each user, owner, and operator of the BPS to register with the North American Electric Reliability Corporation (NERC), and it is this registration that dictates the reliability standards with which the entity must comply.