NERC NERC Compliance and Enforcement

Question 1

Which body has primary authority to enforce NERC reliability standards in the United States?

Accepted Answer

Regional Entities under delegation from NERC

Answer

NERC directly

Answer

The US Department of Energy

Answer

State public utility commissions

Question 2

What is the maximum civil penalty FERC can impose on entities violating NERC reliability standards?

Accepted Answer

$1,000,000 per day per violation

Answer

$100,000 per day per violation

Answer

$500,000 per day per violation

Answer

$250,000 per day per violation

Question 3

What is a 'Find, Fix, Track and Report' (FFT) process in NERC compliance?

Accepted Answer

A streamlined method for handling less serious, self-reported violations

Answer

A method for tracking physical security inspections

Answer

A market surveillance tool used by RTOs

Answer

An emergency response coordination process

Question 4

In NERC's compliance framework, what does 'self-report' mean?

Accepted Answer

A utility reports its own potential violation before being discovered by a Regional Entity

Answer

A utility files annual reliability reports with FERC

Answer

An operator reports an outage to NERC within one hour

Answer

A generator reports its capacity to the RTO

Question 5

Which NERC document establishes the rules for conducting compliance audits?

Accepted Answer

Compliance Monitoring and Enforcement Program (CMEP)

Answer

Rules of Procedure

Answer

Operating Manual

Answer

Functional Model

Question 6

What is the purpose of a Mitigation Plan in NERC compliance?

Accepted Answer

To document how a violating entity will correct a violation and prevent recurrence

Answer

To reduce wildfire risk near transmission corridors

Answer

To establish interconnection agreements between utilities

Answer

To fund grid hardening projects after major storms