NERC NERC Compliance and Enforcement 2 — Questions and Answers
Question 1: NERC's 'spot check' compliance monitoring method is best described as:
- A scheduled annual audit of all reliability standards
- An unannounced or targeted review of specific standards triggered by events or risk factors (Correct answer)
- A review conducted only after a major blackout
- A quarterly financial audit of transmission owners
Correct answer: An unannounced or targeted review of specific standards triggered by events or risk factors
Spot checks are targeted, often unannounced compliance reviews focused on specific standards or triggered by events or risk-based factors.
Question 2: Under the NERC registration process, which entity type is responsible for the reliable operation of the interconnected bulk electric system in real time?
- Transmission Owner
- Balancing Authority
- Reliability Coordinator (Correct answer)
- Planning Coordinator
Correct answer: Reliability Coordinator
The Reliability Coordinator has the widest area view and is responsible for real-time reliability of the interconnected transmission system.
Question 3: What is the typical duration of a NERC compliance audit cycle for most registered entities?
- Every year
- Every 3 years
- Every 6 years (Correct answer)
- Every 10 years
Correct answer: Every 6 years
NERC's compliance audit cycle is generally every 6 years for most registered entities, though risk-based factors can alter frequency.
Question 4: Which NERC standard requires registered entities to maintain an Evidence Retention period for compliance documentation?
- FAC-001
- PRC-005
- Every applicable reliability standard (Correct answer)
- CIP-003 only
Correct answer: Every applicable reliability standard
Each NERC reliability standard specifies evidence retention requirements, meaning every applicable standard requires entities to retain documentation.
Question 5: What is the role of NERC's Electricity Information Sharing and Analysis Center (E-ISAC)?
- Conducting financial audits of electricity markets
- Collecting and sharing cybersecurity and physical security threat information across the electricity sector (Correct answer)
- Approving new generation interconnection requests
- Setting wholesale electricity market prices
Correct answer: Collecting and sharing cybersecurity and physical security threat information across the electricity sector
E-ISAC gathers, analyzes, and shares security threat intelligence to help the electricity sector prepare for and respond to cyber and physical threats.
Question 6: A 'Notice of Penalty' (NOP) in NERC enforcement is issued when:
- A violation is resolved through the FFT process
- NERC or a Regional Entity proposes a penalty for a confirmed reliability standard violation (Correct answer)
- A utility requests a waiver from a reliability standard
- A new standard is filed with FERC for approval
Correct answer: NERC or a Regional Entity proposes a penalty for a confirmed reliability standard violation
A NOP is the formal document proposing a civil penalty against an entity for a confirmed violation, submitted to FERC for approval.
NERC NERC Compliance and Enforcement 2
NERC's 'spot check' compliance monitoring method is best described as: