The Federal Energy Regulatory Commission (FERC) issued its Order on Smart Grid Interoperability Standards,and it has concluded that there is "insufficient consensus" on the initial five families of standards that were sent by NIST for FERC adoption in accordance with the Energy Independence and Security Act of 2007.  Furthermore, the FERC encouraged stakeholders to actively participate in the NIST interoperability framework process to develop standards for interoperability and to refer to that process for guidance on smart grid standards.  Finally, FERC terminated its proceeding in docket RM11-2-000.

In reaching its conclusion not to institute a rulemaking proceeding to adopt the standards, the Commission agreed with comments that registered concerns about cyber security deficiencies and potential unintended consequences from premature adoption of individual standards.  The Commission did express its support for the NIST process and did encourage active participation by stakeholders, citing planned improvements to the NIST process including "an enhanced SGIP role in reviewing existing as well as new smart grid interoperability standards, the establishment of a preliminary testing process, the establishment of a process to identify cyber security design principles, and efforts to better address reliability and implementation concerns within the SGIP process."

For more information, contact the UTC Legal/Regulatory Department.