Certrec’s NERC Penalties

Constellation Assessed $90,000 Penalty for PRC-023-4 R1, R3, and R4 Violations

October 11, 2024

Summary of NERC Penalties

REGION	WHEN?	ENTITY	COMPLIANCE AREA	VIOLATION	REASON	PENALTY AMOUNT
NPCC	Quarter 4 - October 2024	Constellation	NERC, FERC	PRC-023-4 (R1,R3, R4)	Constellation self-reported a violation of PRC-023-4 R3 for failing to obtain Planning Coordinator agreement on two 115kV lines at NMP2. Additional violations of R1 and R4 were identified, requiring coordination with Transmission and Reliability Coordinators.	$90,000

Summary:

Constellation submitted a Self-Report to NPCC stating that it was potentially in violation of PRC-023-4 R3 because it failed to obtain agreement with its Planning Coordinator on two 115kV lines at Nine Mile Point, Unit 2 (“NMP2”) that use R1, criterion 8. The Standard requires Constellation to obtain the agreement of the Planning Coordinator, Transmission Operator, and Reliability Coordinator regarding its use of the calculated circuit capability. The violation started on April 1, 2017, when Constellation failed to remain compliant with PRC-023-4 R3. The violation ended on November 19, 2019, when Constellation made the written R3 notification to the Planning Coordinator and the Planning Coordinator confirmed the agreement.

Additional Discussion:

NPCC considered the following factors in its penalty determination:

1) Compliance History

When assessing the penalty for the violations at issue in this Agreement, NPCC considered whether the facts of the violations constitute repetitive infractions and determined that Constellation had no relevant prior noncompliance with PRC-023-4.

2) Cooperation

Constellation was cooperative throughout the entire enforcement process and provided requested information to NPCC that was detailed, organized, and thorough.

3) Self-Disclosure

Constellation self-reported the violations described in this Agreement. Effective oversight of the BPS reliability depends on Registered Entities self-reporting. As such, NPCC seeks to encourage self-reporting of violations, and therefore, is applying mitigating credit in the instant case.

4) Settlement

Constellation agreed to settle this matter. A willingness to resolve cases without the need for a trial-type hearing reduces the amount of time and resources that NPCC, NERC, and the Federal Energy Regulatory Commission would otherwise expend to resolve the R1 violation. Additionally, it is important to promote prompt resolution of enforcement actions so that Constellation can focus on mitigation and reducing risks to reliability.

Cause

The root cause was ineffective preventative controls, including Constellation’s failure to recognize the previous owner’s inadequate preventative controls when purchasing the generation plants.

Cause

The root cause was ineffective preventative controls, including Constellation’s failure to recognize the previous owner’s inadequate preventative controls when purchasing the generation plants.

Penalty

$90,000 (for NPCC2020023661, 2024-01241, and 2024-01242) The two other violations were for PRC-023-4 R1 and R4.

About Certrec:
Certrec is a leading provider of regulatory compliance solutions for the energy industry with the mission of helping ensure a stable, reliable, bulk electric supply. Since 1988, Certrec’s SaaS applications and consulting expertise have helped hundreds of power-generating facilities manage their regulatory compliance and reduce their risks.

Certrec’s engineers and business teams bring a cumulative 1,500 years of working experience in regulatory areas of compliance, engineering, and operations, including nuclear, fossil, solar, wind facilities, and other Registered Entities generation and transmission.

Certrec has helped more than 200 generating facilities establish and maintain NERC Compliance Programs. We manage the entire NERC compliance program for 80+ registered entities in the US, Canada, and Mexico that trust us to decrease their regulatory and reputational risk. Certrec is ISO/IEC 27001:2013 certified and has successfully completed annual SOC 2 Type 2 examinations.

For press and media inquiries, please contact marketing@certrec.com.