FERC Approves New Cold Weather Reliability Standards

FERC approves new NERC Cold Weather Reliability Standards that seek to enhance the reliability of the grid in preparation for extreme winter weather events.

On August 24, 2021, the Federal Energy Regulatory Commission ("FERC") approved new cold weather electric reliability standards proposed by the North American Electric Reliability Corporation ("NERC"). The standards will apply to a wide range of industry participants including power generators (traditional and renewable), transmission operators, and other entities responsible for ensuring the overall reliability of the electric grid (balancing authorities and reliability coordinators). Unlike previously existing guidelines or recommendations, FERC and NERC can enforce these new standards through significant civil penalties authorized under the Federal Power Act.