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116-390 Village Blvd. Princeton, NJ 08540 609.452.8060 | www.nerc.com

November 30, 2010 Ms. Kimberly Bose Secretary Federal Energy Regulatory Commission 888 First Street, N.E. Washington, DC 20426 Re: NERC Abbreviated Notice of Penalty regarding Wellhead Power Panoche, LLC,

FERC Docket No. NP11-__-000 Dear Ms. Bose: The North American Electric Reliability Corporation (NERC) hereby provides this Abbreviated Notice of Penalty (NOP) regarding Wellhead Power Panoche, LLC (WHPP),1 with information and details regarding the nature and resolution of the violation2 discussed in detail in the Disposition Documents attached hereto (Attachment a), in accordance with the Federal Energy Regulatory Commission’s (Commission or FERC) rules, regulations and orders, as well as NERC Rules of Procedure including Appendix 4C (NERC Compliance Monitoring and Enforcement Program (CMEP)).3

This NOP is being filed with the Commission because WHPP does not dispute the violations of PRC-005-1 R1, PRC-005-1 R2/2.1 and FAC-008-1 R1 and the assessed fifty thousand dollar ($50,000) penalty. Accordingly, the violations identified as NERC Violation Tracking Identification Numbers WECC201001814, WECC201001854 and WECC201001825 are Confirmed Violations, as that term is defined in the NERC Rules of Procedure and the CMEP. 1 Also concurrently being filed is a Notice of Penalty designated as NOC-541 regarding a Notice of Confirmed Violation for Wellhead Services, Inc.’s VAR-002-1 R1 violation. WECC determined that the concurrently filed violation of the entity’s affiliate should not serve as a basis for aggravating the penalty because they involved an unrelated standard and the associated Mitigation Plan would not have resolved or prevented the instant violations. Moreover, there was nothing in the record to suggest that broader corporate issues were implicated. 2 For purposes of this document, each violation at issue is described as a “violation,” regardless of its procedural posture and whether it was a possible, alleged or confirmed violation. 3 Rules Concerning Certification of the Electric Reliability Organization; and Procedures for the Establishment, Approval, and Enforcement of Electric Reliability Standards (Order No. 672), III FERC Stats. & Regs. ¶ 31,204 (2006); Notice of New Docket Prefix “NP” for Notices of Penalty Filed by the North American Electric Reliability Corporation, Docket No. RM05-30-000 (February 7, 2008). See also 18 C.F.R. Part 39 (2010). Mandatory Reliability Standards for the Bulk-Power System, FERC Stats. & Regs. ¶ 31,242 (2007) (Order No. 693), reh’g denied, 120 FERC ¶ 61,053 (2007) (Order No. 693-A). See 18 C.F.R § 39.7(c)(2).

NERC Abbreviated Notice of Penalty Wellhead Power Panoche, LLC November 30, 2010

Statement of Findings Underlying the Violations This NOP incorporates the findings and justifications set forth in the Notices of Confirmed Violation and Proposed Penalty or Sanction (NOCV) issued on March 31, 2010 and April 21, 2010, by Western Electricity Coordinating Council (WECC). The details of the findings and the basis for the penalty are set forth in the Disposition Documents. This NOP filing contains the basis for approval of this NOP by the NERC Board of Trustees Compliance Committee (BOTCC). In accordance with Section 39.7 of the Commission’s Regulations, 18 C.F.R. § 39.7, NERC provides the following summary table identifying each violation of a Reliability Standard at issue in this NOP.

NOC ID NERC Violation ID

Reliability Std.

Req. (R) VRF Duration

Total Penalty

($)

NOC-532

WECC201001814 PRC-005-1 1 High4 6/18/07-2/2/10

50,000 WECC201001854 PRC-005-1 2/2.1 High5 6/18/07-3/8/10

WECC201001825 FAC-008-1 1 Medium6 6/18/07-2/2/10

The text of the Reliability Standards at issue and further information on the subject violations are set forth in the Disposition Documents. PRC-005-1 R1 - OVERVIEW On February 2, 2010, WHPP self-reported a violation of PRC-005-1 R1. WECC determined that WHPP, as a Generator Owner, failed to include maintenance and testing intervals and their basis or a summary of maintenance and testing procedures for voltage and current sensing devices, and station batteries in its maintenance and testing program. 4 When NERC filed VRFs for PRC-005-1, NERC originally assigned a “Medium” VRF to PRC-005-1 R1. In the Commission’s May 18, 2007 Order on Violation Risk Factors, the Commission approved the VRF as filed but directed modifications. On June 1, 2007, NERC filed a modified “High” VRF for PRC-005 R1 for approval. On August 9, 2007, the Commission issued an Order approving the modified VRF. Therefore, the “Medium” VRF was in effect from June 18, 2007 until August 9, 2007 and the “High” VRF has been in effect since August 9, 2007. 5 PRC-005-1 R2 has a “Lower” Violation Risk Factor (VRF); R2.1 and R2.2 each have a “High” VRF. During a final review of the standards subsequent to the March 23, 2007 filing of the Version 1 VRFs, NERC identified that some standards requirements were missing VRFs; one of these include PRC-005-1 R2.1. On May 4, 2007, NERC assigned PRC-005 R2.1 a “High” VRF. In the Commission’s June 26, 2007 Order on Violation Risk Factors, the Commission approved the PRC-005-1 R2.1 “High” VRF as filed. Therefore, the “High” VRF was in effect from June 26, 2007. In the context of this case, WECC determined that the violation related to 2.1, and therefore a “High” VRF is appropriate in this case. 6 FAC-008-1 R1, R1.3 and R1.3.5 each have a “Lower” VRF; R1.1, R1.2, R1.2.1, R1.2.2, R1.3.1 through R1.3.4 each have a “Medium” VRF. When NERC filed VRFs it originally assigned FAC-008-1 R1.1, R1.2, R1.2.1 and R1.2.2 “Lower” VRFs. The Commission approved the VRFs as filed; however, it directed NERC to submit modifications. NERC submitted the modified “Medium” VRFs and on February 6, 2008, the Commission approved the modified “Medium” VRFs. Therefore, the “Lower” VRFs for FAC-008-1 R1.1, R1.2, R1.2.1 and R1.2.2 were in effect from June 18, 2007 until February 6, 2008 when the “Medium” VRFs became effective.


PRC-005-1 R2/2.1 - OVERVIEW On March 8, 2010, WHPP self-reported a violation of PRC-005-1 R2/2.1. WECC determined that WHPP, as a Generator Owner, failed to maintain and test its current transformers (CTs) and potential transformers (PTs) within the defined intervals of its Protection System maintenance and testing program. FAC-008-1 R1 - OVERVIEW On February 2, 2010, WHPP self-reported a violation of FAC-008-1 R1. WECC determined that WHPP, as a Generator Owner, failed to (1) state the method by which it determined its facility ratings; and (2) address protective relays, terminal equipment, shunt compensation devices, transmission lines, and conductors. Statement Describing the Assessed Penalty, Sanction or Enforcement Action Imposed7

Basis for Determination Taking into consideration the Commission’s direction in Order No. 693, the NERC Sanction Guidelines and the Commission’s July 3, 2008, October 26, 2009 and August 27, 2010 Guidance Orders,8

the NERC BOTCC reviewed the NOCV and supporting documentation on October 12, 2010. The NERC BOTCC approved the NOCV and the assessment of a fifty thousand dollar ($50,000) financial penalty against WHPP based upon WECC’s findings and determinations, the NERC BOTCC’s review of the applicable requirements of the Commission-approved Reliability Standards and the underlying facts and circumstances of the violations at issue.

In reaching this determination, the NERC BOTCC considered the following factors:9

1. the violations constituted WHPP’s first occurrence of violations of the subject NERC Reliability Standards;

2. WHPP self-reported the violations;

3. WECC reported that WHPP was cooperative throughout the compliance enforcement process;

4. there was no evidence of any attempt to conceal a violation nor evidence of intent to do so;

5. WECC determined that the violations did not pose a serious or substantial risk to the reliability of the bulk power system, as discussed in the Disposition Documents; and

6. WECC reported that there were no other mitigating or aggravating factors or extenuating circumstances that would affect the assessed penalty.

7 See 18 C.F.R § 39.7(d)(4). 8 North American Electric Reliability Corporation, “Guidance Order on Reliability Notices of Penalty,” 124 FERC ¶ 61,015 (2008); North American Electric Reliability Corporation, “Further Guidance Order on Reliability Notices of Penalty,” 129 FERC ¶ 61,069 (2009); North American Electric Reliability Corporation, “Notice of No Further Review and Guidance Order,” 132 FERC ¶ 61,182 (2010). 9 WHPP did not receive credit for having a compliance program because it was not reviewed by WECC.


For the foregoing reasons, the NERC BOTCC believes that the assessed penalty of fifty thousand dollars ($50,000) is appropriate for the violations and circumstances at issue, and is consistent with NERC’s goal to promote and ensure reliability of the bulk power system. Pursuant to 18 C.F.R. § 39.7(e), the penalty will be effective upon expiration of the 30 day period following the filing of this NOP with the Commission, or, if the Commission decides to review the penalty, upon final determination by the Commission. Attachments to be included as Part of this Notice of Penalty The attachments to be included as part of this NOP are the following documents:

a) Disposition for Common Information, included as Attachment a;

i. Disposition for PRC-005-1 R1 and R2.1; ii. Disposition for FAC-008-1 R1;

b) Record Documents for PRC-005-1 R1, included as Attachment b;

i. WHPP’s Self-Report dated February 2, 2010;

ii. WHPP’s Mitigation Plan submitted February 2, 2010;10

iii. WHPP’s Certification of Mitigation Plan Completion dated February 2, 2010;

11

iv. WECC’s Verification of Mitigation Plan Completion dated February 9, 2010.

and

c) Record Documents for PRC-005-1 R2.1, included as Attachment c;

i. WHPP’s Self-Report dated March 8, 2010;

ii. WHPP’s Mitigation Plan submitted March 8, 2010;

iii. WHPP’s Certification of Mitigation Plan Completion dated March 8, 2010; and

iv. WECC’s Verification of Mitigation Plan Completion dated March 18, 2010.

d) Record Documents for FAC-008-1 R1, included as Attachment d;

i. WHPP’s Self-Report dated February 2, 2010;

ii. WHPP’s Mitigation Plan submitted February 2, 2010;12

iii. WHPP’s Certification of Mitigation Plan Completion dated February 2, 2010;

13

iv. WECC’s Verification of Mitigation Plan Completion dated February 19, 2010.

and

A Form of Notice Suitable for Publication14

A copy of a notice suitable for publication is included in Attachment f.

10 The Mitigation Plan is incorrectly dated February 2, 2009. 11 The Certification of Completion is incorrectly dated February 2, 2009. 12 The Mitigation Plan is incorrectly dated February 2, 2009. 13 The Certification of Completion is incorrectly dated February 2, 2009. 14 See 18 C.F.R. § 39.7(d)(6).


Notices and Communications Notices and communications with respect to this filing may be addressed to the following:

Gerald W. Cauley President and Chief Executive Officer David N. Cook* Sr. Vice President and General Counsel North American Electric Reliability Corporation 116-390 Village Boulevard Princeton, NJ 08540-5721 (609) 452-8060 (609) 452-9550 – facsimile [email protected] Christopher Luras*

Manager of Compliance Enforcement Western Electricity Coordinating Council 155 North 400 West, Suite 200 Salt Lake City, UT 84103 (801) 883-6887 (801) 883-6894 – facsimile [email protected] Grant McDaniel Operations Manager Wellhead Services 650 Bercut Drive, Suite C Sacramento, CA 95811 (916) 447-5171 (916) 447-7602 - facsimile [email protected] *Persons to be included on the Commission’s service list are indicated with an asterisk. NERC requests waiver of the Commission’s rules and regulations to permit the inclusion of more than two people on the service list.

Rebecca J. Michael* Assistant General Counsel North American Electric Reliability Corporation 1120 G Street, N.W. Suite 990 Washington, DC 20005-3801 (202) 393-3998 (202) 393-3955 – facsimile [email protected] Louise McCarren* Chief Executive Officer Western Electricity Coordinating Council 155 North 400 West, Suite 200 Salt Lake City, UT 84103 (801) 883-6868 (801) 582-3918 – facsimile [email protected] Constance White* Vice President of Compliance Western Electricity Coordinating Council 155 North 400 West, Suite 200 Salt Lake City, UT 84103 (801) 883-6885 (801) 883-6894 – facsimile [email protected] Sandy Mooy* Senior Legal Counsel Western Electricity Coordinating Council 155 North 400 West, Suite 200 Salt Lake City, UT 84103 (801) 819-7615 (801) 582-3918 – facsimile [email protected]


Conclusion Accordingly, NERC respectfully requests that the Commission accept this NOP as compliant with its rules, regulations and orders.

Respectfully submitted, /s/ Rebecca J. Michael Gerald W. Cauley President and Chief Executive Officer David N. Cook Sr. Vice President and General Counsel North American Electric Reliability Corporation 116-390 Village Boulevard Princeton, NJ 08540-5721 (609) 452-8060 (609) 452-9550 – facsimile [email protected]

Rebecca J. Michael Assistant General Counsel North American Electric Reliability

Corporation 1120 G Street, N.W. Suite 990 Washington, DC 20005-3801 (202) 393-3998 (202) 393-3955 – facsimile [email protected]

cc: Wellhead Power Panoche, LLC Western Electricity Coordinating Council Attachments

Attachment a

Disposition for Common Information

Attachment a

Wellhead Power Panoche, LLC Page 1 of 4

DISPOSITION OF VIOLATION1

INFORMATION COMMON TO INSTANT VIOLATIONS

Dated October 12, 2010

REGISTERED ENTITY NERC REGISTRY ID NOC# Wellhead Power Panoche, LLC (WHPP)

NCR05456 NOC-532

REGIONAL ENTITY Western Electricity Coordinating Council (WECC)

I. REGISTRATION INFORMATION

ENTITY IS REGISTERED FOR THE FOLLOWING FUNCTIONS: BA DP GO GOP IA LSE PA PSE RC RP RSG TO TOP TP TSP

X

6/17

/07

DESCRIPTION OF THE REGISTERED ENTITY WHPP is subsidiary of Wellhead Power, LLC, is located in Firebaugh, California and provides back up power, with a primary goal of enhancing reliability, in the Pacific Gas & Electric (PG&E) service territory. Capacity and energy are sold to the California Department of Water Resources under long term power purchase agreements. Wellhead Power’s corporate headquarters is located in Sacramento, California. WHPP is a simple cycle peaking unit, rated at 56 MW and generating at 13.8 KV. WHPP has a single 115 KV interconnection point with PG&E that is located at the site’s property line. Wellhead Services, Inc. performs the Generator Operator function for WHPP’s generator.

IS THERE A SETTLEMENT AGREEMENT YES NO WITH RESPECT TO THE VIOLATION(S), REGISTERED ENTITY

NEITHER ADMITS NOR DENIES IT (SETTLEMENT ONLY) YES ADMITS TO IT YES DOES NOT CONTEST IT (INCLUDING WITHIN 30 DAYS) YES

1 For purposes of this document and attachments hereto, each violation at issue is described as a “violation,” regardless of its procedural posture and whether it was a possible, alleged or confirmed violation.

Attachment a


WITH RESPECT TO THE ASSESSED PENALTY OR SANCTION, REGISTERED ENTITY ACCEPTS IT/ DOES NOT CONTEST IT YES

II. PENALTY INFORMATION TOTAL ASSESSED PENALTY OR SANCTION OF $50,000 FOR THREE VIOLATIONS OF RELIABILITY STANDARDS. (1) REGISTERED ENTITY’S COMPLIANCE HISTORY

PREVIOUSLY FILED VIOLATIONS OF ANY OF THE INSTANT RELIABILITY STANDARD(S) OR REQUIREMENT(S) THEREUNDER YES NO LIST VIOLATIONS AND STATUS

ADDITIONAL COMMENTS

PREVIOUSLY FILED VIOLATIONS OF OTHER RELIABILITY STANDARD(S) OR REQUIREMENTS THEREUNDER YES NO

LIST VIOLATIONS AND STATUS

ADDITIONAL COMMENTS

(2) THE DEGREE AND QUALITY OF COOPERATION BY THE REGISTERED ENTITY (IF THE RESPONSE TO FULL COOPERATION IS “NO,” THE ABBREVIATED NOP FORM MAY NOT BE USED.) FULL COOPERATION YES NO

IF NO, EXPLAIN (3) THE PRESENCE AND QUALITY OF THE REGISTERED ENTITY’S COMPLIANCE PROGRAM

Attachment a


IS THERE A DOCUMENTED COMPLIANCE PROGRAM YES NO UNDETERMINED

EXPLAIN WECC did not review WHPP’s compliance program and therefore did not consider it a factor in assessing the penalty.

EXPLAIN SENIOR MANAGEMENT’S ROLE AND INVOLVEMENT WITH RESPECT TO THE REGISTERED ENTITY’S COMPLIANCE PROGRAM, INCLUDING WHETHER SENIOR MANAGEMENT TAKES ACTIONS THAT SUPPORT THE COMPLIANCE PROGRAM, SUCH AS TRAINING, COMPLIANCE AS A FACTOR IN EMPLOYEE EVALUATIONS, OR OTHERWISE.

(4) ANY ATTEMPT BY THE REGISTERED ENTITY TO CONCEAL THE VIOLATION(S) OR INFORMATION NEEDED TO REVIEW, EVALUATE OR INVESTIGATE THE VIOLATION.

YES NO IF YES, EXPLAIN (5) ANY EVIDENCE THE VIOLATION(S) WERE INTENTIONAL (IF THE RESPONSE IS “YES,” THE ABBREVIATED NOP FORM MAY NOT BE USED.)

YES NO IF YES, EXPLAIN (6) ANY OTHER MITIGATING FACTORS FOR CONSIDERATION

YES NO IF YES, EXPLAIN (7) ANY OTHER AGGRAVATING FACTORS FOR CONSIDERATION

YES NO IF YES, EXPLAIN

Attachment a


(8) ANY OTHER EXTENUATING CIRCUMSTANCES

YES NO IF YES, EXPLAIN OTHER RELEVANT INFORMATION:

NOTICE OF ALLEGED VIOLATION AND PROPOSED PENALTY OR SANCTION ISSUED DATE: 2/19/10 OR N/A SETTLEMENT DISCUSSIONS COMMENCED DATE: OR N/A NOTICE OF CONFIRMED VIOLATION ISSUED DATE: 3/31/10 OR N/A SUPPLEMENTAL RECORD INFORMATION DATE(S) OR N/A REGISTERED ENTITY RESPONSE CONTESTED FINDINGS PENALTY BOTH NO CONTEST HEARING REQUESTED YES NO DATE OUTCOME APPEAL REQUESTED

Disposition for PRC-005-1 R1 and R2.1

Attachment a-i


DISPOSITION OF VIOLATION Dated October 12, 2010

NERC TRACKING NO.

REGIONAL ENTITY TRACKING NO.

WECC201001814 WECC201001854

WHPP_WECC20102048 WHPP_WECC20102103

I. VIOLATION INFORMATION RELIABILITY STANDARD

REQUIREMENT(S) SUB-REQUIREMENT(S)

VRF(S) VSL(S)

PRC-005-1 1 1.1, 1.2 High1 Severe PRC-005-1 2 2.1 High2 Severe

VIOLATION APPLIES TO THE FOLLOWING FUNCTIONS: BA DP GO GOP IA LSE PA PSE RC RP RSG TO TOP TP TSP

X PURPOSE OF THE RELIABILITY STANDARD AND TEXT OF RELIABILITY STANDARD AND REQUIREMENT(S)/SUB-REQUIREMENT(S) The purpose statement of PRC-005-1 provides: “To ensure all transmission and generation Protection Systems[3

] affecting the reliability of the Bulk Electric System (BES) are maintained and tested.”

PRC-005-1 R1 provides: R1: Each Transmission Owner and any Distribution Provider that owns a transmission Protection System and each Generator Owner that owns a generation Protection System shall have a Protection System maintenance

1 When NERC filed VRFs for PRC-005-1, NERC originally assigned a “Medium” VRF to PRC-005-1 R1. In the Commission’s May 18, 2007 Order on Violation Risk Factors, the Commission approved the VRF as filed but directed modifications. On June 1, 2007, NERC filed a modified “High” VRF for PRC-005 R1 for approval. On August 9, 2007, the Commission issued an Order approving the modified VRF. Therefore, the “Medium” VRF was in effect from June 18, 2007 until August 9, 2007 and the “High” VRF has been in effect since August 9, 2007. 2 PRC-005-1 R2 has a “Lower” Violation Risk Factor (VRF); R2.1 and R2.2 each have a “High” VRF. During a final review of the standards subsequent to the March 23, 2007 filing of the Version 1 VRFs, NERC identified that some standards requirements were missing VRFs; one of these include PRC-005-1 R2.1. On May 4, 2007, NERC assigned PRC-005 R2.1 a “High” VRF. In the Commission’s June 26, 2007 Order on Violation Risk Factors, the Commission approved the PRC-005-1 R2.1 “High” VRF as filed. Therefore, the “High” VRF was in effect from June 26, 2007. 3 The NERC Glossary of Terms Used in Reliability Standards defines Protection System as “Protective relays, associated communication systems, voltage and current sensing devices, station batteries and DC control circuitry.”

Attachment a-i


and testing program for Protection Systems that affect the reliability of the BES. The program shall include:

R1.1: Maintenance and testing intervals and their basis. R1.2: Summary of maintenance and testing procedures.

PRC-005-1 R2 provides:

R2. Each Transmission Owner and any Distribution Provider that owns a transmission Protection System and each Generator Owner that owns a generation Protection System shall provide documentation of its Protection System maintenance and testing program and the implementation of that program to its Regional Reliability Organization[4

] on request (within 30 calendar days). The documentation of the program implementation shall include:

R2.1. Evidence Protection System devices were maintained and tested within the defined intervals. R2.2. Date each Protection System device was last tested/maintained.

VIOLATION DESCRIPTION On February 2, 2010, WHPP self-reported a violation of PRC-005-1 R1 because its Protection System maintenance and testing program did not give specific testing intervals and their basis or a summary of the testing procedures for the current transformers, potential transformers, and battery systems. WHPP discovered the subject violation during an internal audit conducted by a third party. WHPP did not self-report a violation of PRC-005-1 R2 at this time because maintenance and testing of WHPP’s devices applicable to the subject Standards requirement was up to date as of December 2009. On March 8, 2010, WHPP, after further reviewing its maintenance and testing records, self-reported a violation of PRC-005-1 R2/2.1 for its failure to conduct maintenance and testing on its current transformers (CTs) and potential transformers (PTs) in accordance with the subject Standards requirement. WHPP discovered that, prior to the maintenance and testing conducted in December 2009, it had not conducted maintenance and testing on its CTs and PTs since they were installed in 2001. WECC reviewed the self-reports and the findings of its subject matter expert and concluded that the facts and evidence supported a finding that WHPP violated R1 and R2/2.1 of NERC Reliability Standard PRC-005-1 because the evidence reviewed showed (1) that WHPP failed to include maintenance and testing intervals and their basis or a summary of maintenance and testing procedures for CTs and PTs, and

4 Consistent with applicable FERC precedent, the term ‘Regional Reliability Organization’ in this context refers to WECC.

Attachment a-i


station batteries in its maintenance and testing program; and (2) that WHPP failed to conduct maintenance and testing on its applicable CTs and PTs.. RELIABILITY IMPACT STATEMENT- POTENTIAL AND ACTUAL WECC determined that the violations of PRC-005-1 R1 and R2/2.1 did not pose a serious or substantial risk to the bulk power system because WHPP is a small generator and any loss of supply resulting from the failure of any of the applicable devices not included in WHPP’s maintenance and testing program would be small relative to generation available in WHPP’s area. WHPP is a simple cycle peaking unit, rated at 56 MW and generating at 13.8 KV. WHPP has a single 115 KV interconnection point with PG&E that is located at the site’s property line.

II. DISCOVERY INFORMATION METHOD OF DISCOVERY

SELF-REPORT 5

SELF-CERTIFICATION

COMPLIANCE AUDIT COMPLIANCE VIOLATION INVESTIGATION SPOT CHECK COMPLAINT PERIODIC DATA SUBMITTAL EXCEPTION REPORTING

DURATION DATE(S) R1: 6/18/07 (when the Standard became mandatory and enforceable) through 2/2/10 (Mitigation Plan completion) R2/2.1: 6/18/07 (when the Standard became mandatory and enforceable) through 3/8/10 (Mitigation Plan completion)

DATE DISCOVERED BY OR REPORTED TO REGIONAL ENTITY

R1: 2/2/10 R2/2.1: 3/8/10

5 On February 2, 2010, WHPP self-reported a violation of PRC-005-1 R1 for its failure to include maintenance and testing intervals and their basis or a summary of maintenance and testing procedures for voltage and current sensing devices, and station batteries in its Protection System maintenance and testing program. At the time, WHPP did not self-report a violation of PRC-005-1 R2 because, as of December, 2009, its maintenance and testing on the applicable devices was up to date. Upon further review, WHPP discovered that, prior to the maintenance and testing conducted in December, 2009, it had not conducted maintenance and testing on its CTs and PTs since they were installed in 2001. On March 8, 2010, WHPP self-reported a violation of PRC-005-1 R2.1 for its failure to conduct maintenance and testing on its CTs and PTs in accordance with the subject Standards requirement.

Attachment a-i


IS THE VIOLATION STILL OCCURRING YES NO IF YES, EXPLAIN

REMEDIAL ACTION DIRECTIVE ISSUED YES NO PRE TO POST JUNE 18, 2007 VIOLATION YES NO

III. MITIGATION INFORMATION FOR FINAL ACCEPTED MITIGATION PLAN for PRC-005-1 R1:

MITIGATION PLAN NO. MIT-07-2309 DATE SUBMITTED TO REGIONAL ENTITY 2/2/106

DATE ACCEPTED BY REGIONAL ENTITY 2/4/10

DATE APPROVED BY NERC 2/9/10 DATE PROVIDED TO FERC 2/11/10

IDENTIFY AND EXPLAIN ALL PRIOR VERSIONS THAT WERE ACCEPTED OR REJECTED, IF APPLICABLE MITIGATION PLAN COMPLETED YES NO

EXPECTED COMPLETION DATE Submitted as complete EXTENSIONS GRANTED N/A

ACTUAL COMPLETION DATE 2/2/10

DATE OF CERTIFICATION LETTER 2/2/107

CERTIFIED COMPLETE BY REGISTERED ENTITY AS OF 2/2/10

DATE OF VERIFICATION LETTER 2/9/10

VERIFIED COMPLETE BY REGIONAL ENTITY AS OF 2/2/10

FOR FINAL ACCEPTED MITIGATION PLAN for PRC-005-1 R2.1: MITIGATION PLAN NO. MIT-07-2418 DATE SUBMITTED TO REGIONAL ENTITY 3/8/10 DATE ACCEPTED BY REGIONAL ENTITY 3/12/10 DATE APPROVED BY NERC 3/25/10 DATE PROVIDED TO FERC 3/25/10

IDENTIFY AND EXPLAIN ALL PRIOR VERSIONS THAT WERE ACCEPTED OR REJECTED, IF APPLICABLE

6 The Mitigation Plan is incorrectly dated February 2, 2009. 7 The Certification of Completion is incorrectly dated February 2, 2009.

Attachment a-i


MITIGATION PLAN COMPLETED YES NO EXPECTED COMPLETION DATE Submitted as complete EXTENSIONS GRANTED N/A ACTUAL COMPLETION DATE 3/8/10 DATE OF CERTIFICATION LETTER 3/8/10 CERTIFIED COMPLETE BY REGISTERED ENTITY AS OF 3/8/10 DATE OF VERIFICATION LETTER 3/18/10 VERIFIED COMPLETE BY REGIONAL ENTITY AS OF 3/8/10 ACTIONS TAKEN TO MITIGATE THE ISSUE AND PREVENT RECURRENCE

1. WHPP conducted testing of the PTs and CTs in December of 2009; 2. WHPP updated its site Protective Relay Testing Guidance Procedure

to include the intervals, basis for intervals, and testing summaries for CTs, PTs, and battery systems as required by the subject Standard;

3. WHPP added the testing intervals to its Protective Relay Testing Guidance Procedure and Computerized Maintenance Management System (CMMS); and

4. WHPP updated the site CMMS to include the updated test frequencies.

LIST OF EVIDENCE REVIEWED BY REGIONAL ENTITY TO EVALUATE COMPLETION OF MITIGATION PLAN OR MILESTONES (FOR CASES IN WHICH MITIGATION IS NOT YET COMPLETED, LIST EVIDENCE REVIEWED FOR COMPLETED MILESTONES)

1. WHPP’s Protective Relay Testing Guidelines (dated January 5, 2010)

EXHIBITS:

SOURCE DOCUMENT WHPP’s Self-Report for PRC-005-1 R1, dated February 2, 2010 WHPP’s Self-Report for PRC-005-1 R2, dated March 3, 2010 MITIGATION PLAN WHPP’s Mitigation Plan for PRC-005-1 R1, dated February 2, 20108

WHPP’s Mitigation Plan for PRC-005-1 R2, dated March 8, 2010

8 The Mitigation Plan is incorrectly dated February 2, 2009.

Attachment a-i


CERTIFICATION BY REGISTERED ENTITY WHPP’s Certification of Mitigation Plan Completion for PRC-005-1 R1, dated February 2, 20109

WHPP’s Certification of Mitigation Plan Completion for PRC-005-1 R2, dated March 8, 2010

VERIFICATION BY REGIONAL ENTITY WECC’s Verification of Mitigation Plan Completion for PRC-005-1 R1, dated February 9, 2010 WECC’s Verification of Mitigation Plan Completion for PRC-005-1 R2, dated March 18, 2010

9 The Certification of Completion is incorrectly dated February 2, 2009.

Disposition for FAC-008-1 R1

Attachment a-ii


DISPOSITION OF VIOLATION Dated October 12, 2010

NERC TRACKING NO.

REGIONAL ENTITY TRACKING NO.

WECC201001825 WHPP_WECC20102059

I. VIOLATION INFORMATION

RELIABILITY STANDARD

REQUIREMENT(S) SUB-REQUIREMENT(S)

VRF(S) VSL(S)

FAC-008-1 1 1.2, 1.2.1 Medium1 Severe

VIOLATION APPLIES TO THE FOLLOWING FUNCTIONS: BA DP GO GOP IA LSE PA PSE RC RP RSG TO TOP TP TSP

X PURPOSE OF THE RELIABILITY STANDARD AND TEXT OF RELIABILITY STANDARD AND REQUIREMENT(S)/SUB-REQUIREMENT(S) The purpose statement of FAC-008-1 provides: “To ensure that Facility Ratings used in the reliable planning and operation of the Bulk Electric System (BES) are determined based on an established methodology or methodologies.” FAC-008-1 R1 provides:

R1. The Transmission Owner and Generator Owner shall each document its current methodology used for developing Facility Ratings (Facility Ratings Methodology) of its solely and jointly owned Facilities. The methodology shall include all of the following:

R1.1. A statement that a Facility Rating shall equal the most limiting applicable Equipment Rating of the individual equipment that comprises that Facility. R1.2. The method by which the Rating (of major BES equipment that comprises a Facility) is determined.

R1.2.1. The scope of equipment addressed shall include, but not be limited to, generators, transmission conductors,

1 FAC-008-1 R1, R1.3 and R1.3.5 each have a “Lower” VRF; R1.1, R1.2, R1.2.1, R1.2.2, R1.3.1 through R1.3.4 each have a “Medium” VRF. When NERC filed VRFs it originally assigned FAC-008-1 R1.1, R1.2, R1.2.1 and R1.2.2 “Lower” VRFs. The Commission approved the VRFs as filed; however, it directed NERC to submit modifications. NERC submitted the modified “Medium” VRFs and on February 6, 2008, the Commission approved the modified “Medium” VRFs. Therefore, the “Lower” VRFs for FAC-008-1 R1.1, R1.2, R1.2.1 and R1.2.2 were in effect from June 18, 2007 until February 6, 2008 when the “Medium” VRFs became effective.

Attachment a-ii


transformers, relay protective devices, terminal equipment, and series and shunt compensation devices. R1.2.2. The scope of Ratings addressed shall include, as a minimum, both Normal and Emergency Ratings.

VIOLATION DESCRIPTION On February 2, 2010, WHPP self-reported a violation of FAC-008-1 R1 because (1) its approved facility rating methodology did not document or include in its documentation the method that WHPP used to determine facility ratings; (2) its facility rating scope of equipment did not include the protective relays or terminal equipment because it was generally known that these were rated for fault conditions and not normal operation for generation facilities; and (3) its facility rating methodology did not include an explicit statement that WHPP “did not have any shunt compensation devices, transmission lines and/or conductors and therefore these components would not be considered.” WHPP discovered the subject violation during an internal audit conducted by a third party. WECC reviewed the self-report and the findings of its subject matter expert and agreed that WHPP’s facility rating methodology did not, in accordance with the subject Standard, include “the method by which the rating…is determined” nor did it address the devices applicable to R1.2.1 of the subject Standard. WECC concluded that the facts and evidence supported a finding that WHPP violated R1 of NERC Reliability Standard FAC-008-1 because the evidence reviewed showed that WHPP failed to (1) state the method by which it determined its facility ratings; and (2) address protective relays, terminal equipment, shunt compensation devices, transmission lines, and conductors. RELIABILITY IMPACT STATEMENT- POTENTIAL AND ACTUAL

WECC determined that the violation of FAC-008-1 R1 did not pose a serious or substantial risk to the BPS because:

1. WHPP rated its protective relays and terminal equipment for fault conditions;

2. WHPP had documented its current methodology used for developing its Facility Ratings; and

3. WHPP’s failure to include shunt compensation devices, transmission lines and conductors in its methodology is an administrative issue as WHPP does not own such devices.

Attachment a-ii


II. DISCOVERY INFORMATION METHOD OF DISCOVERY

SELF-REPORT SELF-CERTIFICATION COMPLIANCE AUDIT COMPLIANCE VIOLATION INVESTIGATION SPOT CHECK COMPLAINT PERIODIC DATA SUBMITTAL EXCEPTION REPORTING

DURATION DATE(S) 6/18/07 (when the Standard became mandatory and enforceable) through 2/2/10 (Mitigation Plan completion) DATE DISCOVERED BY OR REPORTED TO REGIONAL ENTITY 2/2/10 IS THE VIOLATION STILL OCCURRING YES NO IF YES, EXPLAIN

REMEDIAL ACTION DIRECTIVE ISSUED YES NO PRE TO POST JUNE 18, 2007 VIOLATION YES NO

III. MITIGATION INFORMATION FOR FINAL ACCEPTED MITIGATION PLAN:

MITIGATION PLAN NO. MIT-07-2346 DATE SUBMITTED TO REGIONAL ENTITY 2/2/102

DATE ACCEPTED BY REGIONAL ENTITY 2/6/10

DATE APPROVED BY NERC 3/3/10 DATE PROVIDED TO FERC 3/3/10

IDENTIFY AND EXPLAIN ALL PRIOR VERSIONS THAT WERE ACCEPTED OR REJECTED, IF APPLICABLE MITIGATION PLAN COMPLETED YES NO

EXPECTED COMPLETION DATE Submitted as complete EXTENSIONS GRANTED N/A

ACTUAL COMPLETION DATE 2/2/10 2 The Mitigation Plan is incorrectly dated February 2, 2009.

Attachment a-ii


DATE OF CERTIFICATION LETTER 2/2/103

CERTIFIED COMPLETE BY REGISTERED ENTITY AS OF 2/2/10

DATE OF VERIFICATION LETTER 2/19/10

VERIFIED COMPLETE BY REGIONAL ENTITY AS OF 2/2/10

ACTIONS TAKEN TO MITIGATE THE ISSUE AND PREVENT RECURRENCE WHPP updated its Facility Rating Methodology to clearly specify the approved methodology, and include all components as required by the standard. Where the facility does not have components listed in the standard, a statement will be made that those components will not be considered because the facility does not have those components.

LIST OF EVIDENCE REVIEWED BY REGIONAL ENTITY TO EVALUATE COMPLETION OF MITIGATION PLAN OR MILESTONES (FOR CASES IN WHICH MITIGATION IS NOT YET COMPLETED, LIST EVIDENCE REVIEWED FOR COMPLETED MILESTONES)

1. WHPP’s Facility Ratings Methodology OMS-056 (dated January 5, 2010)

EXHIBITS:

SOURCE DOCUMENT WHPP’s Self-Report, dated February 2, 2010 MITIGATION PLAN WHPP’s Mitigation Plan, dated February 2, 20104

CERTIFICATION BY REGISTERED ENTITY WHPP’s Certification of Mitigation Plan Completion, dated February 2, 20105

VERIFICATION BY REGIONAL ENTITY WECC’s Verification of Mitigation Plan Completion, dated February 19, 2010

3 The Certification of Completion is incorrectly dated February 2, 2009. 4 The Mitigation Plan is incorrectly dated February 2, 2009. 5 The Certification of Completion is incorrectly dated February 2, 2009.

Attachment b Record Documents for PRC-005-1 R1

i. WHPP’s Self-Report dated February 2, 2010

ii. WHPP’s Mitigation Plan submitted February 2, 2010

iii. WHPP’s Certification of Mitigation Plan Completion dated February 2, 2010

iv. WECC’s Verification of Mitigation Plan Completion dated February 9, 2010

Non-Public and CONFIDENTIAL

Self-Reporting Form

Date Submitted by Registered Entity: 02/02/10

NERC Registry 10: NRC05456

Joint Registration Organization ORO) 10:

Registered Entity: Wellhead Power Panoche, LLC

Registered Entity Contact: Grant McDaniel

Function(s) Applicable to Self-Report:

DBA

D DP

D RSG

o TOP

D PSE

D RC

Standard: PRC-005-1

Requirement: Rl, Rl.l, Rl.2

D TO

D TSP

o IA

IXI GO

D PA

o GOP

D RP

Has this violation previously been reported or discovered: 0 Yes If Yes selected: Provide NERC Violation 10 (iflmown):

Date violation occurred: 06/18/07

Date violation discovered: 01/04/10

Is the violation still occurring? 0 Yes IXI No

D LSE

D TP

IXI No

Detailed explanation and cause of violation: Violation was discovered during a third party independent auit of our programs. The protective system maintenance program did not give specific testing intervals and their basis nor a summary of the testing procedures for the current transformers, potential transformers, and battery systems.

Potential Impact to the Bulk Power System (minimal, moderate, or severe): minimal

Detailed explanation of Potential Impact: The impact to the BES was minimal to none since there have been no protective system misoperations at Wellhead Power Panoche and the actual maintenance has been completed in accordance with our agreeement with PG&E; however the program lacked the appropriate documentation.

Additional Comments:

WECC CME? - Self-Reporting Form Dated: April 13, 2009, Version 1

Page 1

For Public Release - November 30, 2010


NOTE: While submittal af a mitigation plan is not required until after a determination of a violation is confirmed, early submittal of a mitigation plan to address and remedy an identified deficiency is encouraged. Submittal of a mitigation plan shall not be deemed an admission of a violation. {See NERC Rules of Procedure, Appendix 4[, Section 6.4.}

WECC CMEP - Self-Reporting Form Dated: April 13, 2009, Version 1

Page 2


Western Electricity Coordinating Council

NERC &.fl%·!.1CiZ?I~/-"i;

~IOr:;.TH AMERICf',l;I ELECTRIC RELI,o..GILITY CORPOr-lAT1CIN

Mitigation Plan Submittal Form New IZl or Revised 0

Date this Mitigation Plan is being submitted: 02/02/2009

If this Mitigation Plan has already been completed: • Check this box IZl and • Provide the Date of Completion of the Mitigation Plan: 02/02/2009 • Submit Certification of Mitigation Plan Completion Form along with

evidence supporting full compliance

Section A: Compliance Notices & Mitigation Plan Reguirements

A.1 Notices and requirements applicable to Mitigation Plans and this Submittal Form are set forth in "Attachment A - Compliance Notices & Mitigation Plan Requirements" to this form. Review Attachment A and check this box IZl to indicate that you have reviewed and understand the information provided therein. This Submittal Form and the Mitigation Plan submitted herein are incomplete and cannot be accepted unless the box is checked.

Section B: Registered Entity Information

8.1 Identify your organization:

Registered Entity Name: Wellhead Power Panache, LLC Registered Entity Address: 650 Bereut Drive, Suite C, Sacramento CA 95811 NERC Compliance Registry ID: NRC05456

8.2 Identify the individual in your organization who will be the Entity Contact regarding this Mitigation Plan. Please see Section 6.2 of the WECC Compliance Monitoring and Enforcement Program (CMEP) for a description of the qualifications required of the Entity Contact.1

Name: Grant Mcdaniel

1 A copy of the WECC CMEP is posted on WECC's website at: http://compliance. wecc.bizl Application/DocumentsfHomef20090 1 01 %20-%20C M E P .pdf. Registered Entities are responsible for following all applicable WECC CMEP procedures. WECC strongly recommends that registered entities become familiar with the WECC CMEP and its requirements, as they may be amended from time to time.

Rev. 01/19/10, v5

FOR PUBLIC RELEASE - NOVEMBER 30, 2010

~;;:;a.:rrc: Coordinating Council Title: Operations Manager Email: [email protected] Phone: 916-447-5171

NERC * &_w~C';:§:· :. NCH=<TH AMERICI'~H ELECTPIC RELlf~GILITY CORPOPATIO~j

Section C: Identity of Alleged or Confirmed Reliability Standard Violations Associated with this Mitigation Plan

This Mitigation Plan is associated with the alleged or confirmed violation(s) of the reliability standard/requirements listed below:

C.1 Standard: PRC-005-1 [Identify by Standard Acronym (e.g. FAG-OOt-t)]

C.2 Requirement(s) violated and violation dates: [Enter information in the following Table]

NERC Violation WECC Requirement Violation ID# Violation ID Violated Risk

[if known] # (e.g. R3) Factor [if known]

Rl Hirrh RU Hirrh R1.2 High

Alleged or Method of confirmed Detection Violation (e.g. audit,

Datel') self-report, (MM/DDNY) investigation)

self-report self-report self-report

(') Note: The Alleged or Confirmed Violation Date shall be: (i) the date the violation occurred; (ii) the date that the violation was self-reported; or (iii) the date upon which WECC has deemed the violation to have occurred. Please contact WECC if you have questions regarding which date to use.

C.3 Identify the cause of the alleged or confirmed violation(s) identified above:

The protecive system maintenance program did not specify intervals, basis for intervals, or testing summaries for current transformers, potential transformers, and battery systems as required by the standard. [Provide your response here; additional detailed information may be provided as an attachment as necessary]

C.4 [Optional] Provide any relevant additional information regarding the alleged or confirmed violations associated with this Mitigation Plan:

Rev. 01/19/10, v5


Council

NERC ill i #,J'.'TI.I;S;;S;::;::7."<"'"''''

NOr-lTH AMEr--<ICAN ELECTPiC RELIABILITY CORPOR .... ..,TION

The battery system main ten ace has been in the CMMS system, but was not specified in the site's Protective Relay Testing Guidance Procedure. The site was aware that the CUlTent and potential transformers needed to be tested to conform to the NERC standard and the testing was conducted in December of 2009; however, the site's Protective Relay Testing Guidance Procedure did not include this information. [Provide your response here; additional detailed information may be provided as an attachment as necessary]

Section D: Details of Proposed Mitigation Plan

Mitigation Plan Contents

D.1 Identify and describe the action plan, including specific tasks and actions that your organization is proposing to undertake, or which it undertook if this Mitigation Plan has been completed, to correct the violations identified above in Part C.2 of this form:

Update the site Protective Relay Testing Guidance Procedure to include the intervals, basis for intervals, and testing summaries for CUlTent transformers, potential transformers, and battery systems as required by the standard. Update the site CMMS to include the updated test frequencies .. [Provide your response here; additional detailed information may be provided as an attachment as necessary]

Check this box IZJ and proceed to Section E of this form if this Mitigation Plan, as set forth in Part 0.1, has already been completed; otherwise respond to Part 0.2, 0.3 and, optionally, Part 0.4, below.

Mitigation Plan Timeline and Milestones

D.2 Provide the timetable for completion of the Mitigation Plan, including the completion date by which the Mitigation Plan will be fully implemented and the alleged or confirmed violations associated with this Mitigation Plan corrected:

D.3 Enter Milestone Activities, with completion dates, that your organization is proposing for this Mitigation Plan:

Milestone Activity Proposed Completion Date* (milestones cannot be more than 3 months

Rev. 01/19/10, v5


NERC @(p;k,',,,£Y'TiS.i2£'Z'::,"""

NORTH AMERICAi': ELECTRIC RELIAGILITY CORPOR}l,TIOI'J

apart)

(*) Note: Implementation milestones should be no more than three (3) months apart for Mitigation Plans with expected completion dates more than three (3) months from the date of submission. As set forth in CMEP section 6.6, adverse consequences could result from failure to complete, on a timely basis, all required actions in this Mitigation Plan, including implementation of milestones. A request for an extension of the completion date of any milestone or of the Mitigation Plan must be received by WECC at least five (5) business days before the relevant milestone or completion date.

[Note: Provide your response here; additional detailed information may be provided as an attachment as necessary]

Additional Relevant Information (Optional)

0.4 If you have any relevant additional information that you wish to include regarding the Mitigation Plan, milestones, milestones dates and completion date proposed above you may include it here:

[Provide your response here; additional detailed information may be provided as an attachment as necessary]

Rev. 01/19/10, v5



Section E: Interim and Future Reliability Risk

NERC HORTH F~MERIC"\N ELECTr-lIC Rf;LIAGILITV CORPORATION

Check this box ~ and proceed and respond to Part E.2, below, if this Mitigation Plan, as set forth in Part 0.1, has already been completed.

Abatement of Interim BPS Reliability Risk

E.1 While your organization is implementing the Mitigation Plan proposed in Part D of this form, the reliability of the Bulk Power System may remain at higher risk or be otherwise negatively impacted until the plan is successfully completed. To the extent they are known, reasonably suspected or anticipated: (i) identify any such risks or impacts; and (ii) discuss any actions that your organization is planning to take or is proposing as part of the Mitigation Plan to mitigate any increased risk to the reliability of the bulk power system while the Mitigation Plan is being implemented:


Prevention of Future BPS Reliability Risk

E.2 Describe how successful completion of the Mitigation Plan as laid out in Part D of this form will prevent or minimize the probability that your organization will incur further violations of the same or similar reliability standards requirements in the future:

The updated Protective Relay Testing Guidance Procedure will ensure administrative compliance with this standard and the updated CMMS will produce a work order promting the actual maintenance to be completed when required. [Provide your response here; additional detailed information may be provided as an attachment as necessary]

E.3 Your organization may be taking or planning other action, beyond that listed in the Mitigation Plan, as proposed in Part D.1, to prevent or minimize the probability of incurring further violations of the same or similar standards requirements listed in Part C.2, or of other reliability standards. If so, identify and describe any such action, including milestones and completion dates:

Rev. 01/19/10, v5



Rev. 01/19/10, v5



Section F: Authorization

NERC NORTH F~MEP.ICr,N ELECTRIC R5LIA81L1TY CORPORATiON

An authorized individual must sign and date this Mitigation Plan Submittal Form. By doing so, this individual, on behalf of your organization:

a) Submits the Mitigation Plan, as laid out in Section D of this form, to WECC for acceptance by WECC and approval by NERC, and

b) If applicable, certifies that the Mitigation Plan, as laid out in Section D of this form, was completed (i) as laid out in Section D of this form and (ii) on or before the date provided as the 'Date of Completion of the Mitigation Plan' on this form, and

c) Acknowledges:

1. I am Paul Cummins of Wellhead Power Panoche,LLC.

2. I am an officer, employee, attomey or other person authorized to sign this Mitigation Plan on behalf of Wellhead Power Panoche,LLC.

3. I understand Wellhead Power Panoche,LLC obligations to comply with Mitigation Plan requirements and WECC or ERO remedial action directives and I have reviewed the WECC and ERO documents related to these obligations, including, but not limited to, the WECC CMEP and the NERC Rules of Procedure.

4. I have read and am familiar with the contents of the foregoing Mitigation Plan.

5. Wellhead Power Panoche,LLC agrees to be bound by, and comply with, the Mitigation Plan, including the timetable completion date, as approved by WECC and approved by NERC.

Autho';~d Slgn.,",.,(f a-J' fj 11~ __ (Electronic signatures are acceptable; see CMEP Section 3.0)

Name (Print):Paul Cummins Title: Vice President Date: 2/2/2010

Rev. 01/19/10, v5



Section G: Comments and Additional Information

NERC t ~ ii!f0r2d!K2':J2?;S"---

NOf::lTH AMERICAt-J ELECTPiC RELIAGIUTY CORPORATIQt~

You may use this area to provide comments or any additional relevant information not previously addressed in this form.


Section H: WECC Contact and Instructions for Submission

Please direct any questions regarding completion of this form to: Mike Wells, Sr. Compliance Engineer Email: [email protected] Phone: (801) 883-6884

For guidance on submitting this form, please refer to the "WECC Compliance Data Submittal Policy". This policy can be found on the WECC Compliance Website at:

http://compliance.wecc.biziAppl ication/Documents/FormslWECC%20Com pliance%20Data%20Submittal%20Policy.pdf

Rev. 01/19/10, v5


NERC i§@ &f,~,o/'L "Z:Z:''SI:?;::':'':'':'

HORTH I'..,MER1CAH ELECTPIC RELIABILITY CQRPQRi .... TIOhl

Attachment A - Compliance Notices & Mitigation Plan Requirements

I. Section 6.2 of the WECC CMEP sets forth the information that must be included in a Mitigation Plan. The Mitigation Plan must include:

(1) The Registered Entity's point of contact for the Mitigation Plan, who shall be a person (i) responsible for filing the Mitigation Plan, (ii) technically knowledgeable regarding the Mitigation Plan, and (iii) authorized and competent to respond to questions regarding the status of the Mitigation Plan. This person may be the Registered Entity's point of contact described in Section 2.0.

(2) The Alleged or Confirmed Violation(s) of Reliability Standard(s) the Mitigation Plan will correct.

(3) The cause of the Alleged or Confirmed Violation(s).

(4) The Registered Entity's action plan to correct the Alleged or Confirmed Violation(s).

(5) The Registered Entity's action plan to prevent recurrence of the Alleged or Confirmed violation(s).

(6) The anticipated impact of the Mitigation Plan on the bulk power system reliability and an action plan to mitigate any increased risk to the reliability of the bulk power-system while the Mitigation Plan is being implemented.

(7) A timetable for completion of the Mitigation Plan including the completion date by which the Mitigation Plan will be fully implemented and the Alleged or Confirmed Violation(s) corrected.

(8) Implementation milestones no more than three (3) months apart for Mitigation Plans with expected completion dates more than three (3) months from the date of submission.

(9) Any other information deemed necessary or appropriate.

(10) The Mitigation Plan shall be signed by an officer, employee, attorney or other authorized representative of the Registered Entity, which if applicable, shall be the person that signed the Self-Certification or Self Reporting submittals.

II. This submittal form may be used to provide a required Mitigation Plan for review and approval by WECC and NERC.

Rev. 01/19/10, v5



NERC f5§%·*gb£G0;\::"~" ':,"

NO~TH AMERICAN ELECTRIC RELIAGILITY CORPORATIO~I

III. The Mitigation Plan shall be submitted to the WECC and NERC as confidential information in accordance with Section 9.3 of the WECC CMEP and Section 1500 of the NERC Rules of Procedure.

IV. This Mitigation Plan form may be used to address one or more related Alleged or Confirmed Violations of one Reliability Standard. A separate Mitigation Plan is required to address violations with respect to each additional Reliability Standard, as applicable.

V. If the Mitigation Plan is approved by WECC and NERC, a copy of the Mitigation Plan will be provided to the Federal Energy Regulatory Commission in accordance with applicable Commission rules, regulations and orders.

VI. Either WECC or NERC may reject a Mitigation Plan that it determines to be incomplete or inadequate. If the Mitigation Plan is rejected by either WECC or NERC, the Registered Entity will be notified and required to submit a revised Mitigation Plan.

VII. In accordance with Section 7.0 of the WECC CMEP, remedial action directives also may be issued as necessary to ensure reliability of the bulk power system.

Rev. 01/19/10, v5




Certification of Mitigation Plan Completion Form

Submittal of a Certification of Mitigation Plan Completion shall include data or information sufficient for Western Electricity Coordinating Council (WECC) to verify completion of the Mitigation Plan. WECC may request additional data or information and conduct follow-up assessments, on-site or other Spot Checking, or Compliance Audits as it deems necessary to verify that all required actions in the Mitigation Plan have been completed and the Registered Entity is in compliance with the subject Reliability Standard. (CMEP Section 6.6)


NERC Registry 10: NRCOS4S6

Date of Submittal of Certification: 2/2/2009

NERC Violation 10 No(s) (if known):

Standard: PRC-OOS-l

Requirement(s): Rl, Rl.l, Rl.2

Date Mitigation Plan was scheduled to be completed per accepted Mitigation Plan: 2/2/2009

Date Mitigation Plan was actually completed: 2/2/2009

Additional Comments (or List of Documents Attached):

I certify that the Mitigation Plan for the above named violation has been completed on the date shown above and that all submitted information is complete and correct to the best of my knowledge.

Name: Paul Cummins

Title: Vice President

Email: [email protected]

Phone: 916-447-5171

WECC CMEP - Certification of Mitigation Plan Completion Form Dated: May 20, 2009, Version 1


CONFIDENTIAL

W E S T E R N E L E C T R I C I T Y C O O R D I N A T I N G C O U N C I L • W W W . W E C C . B I Z6 1 5 A R A P E E N D R I V E • S U I T E 2 1 0 • S A L T L A K E C I T Y • U T A H • 8 4 1 0 8 - 1 2 6 2 • P H 8 0 1 . 5 8 2 . 0 3 5 3 • F X 8 0 1 . 5 8 2 . 3 9 1 8

VIA COMPLIANCE WEB PORTAL

February 9, 2010

Grant McDaniel Operations Manager Wellhead Power Panoche, LLC 650 Bercut Drive Sacramento, California 95814

NERC Registration ID: NCR05456 NERC Violation ID: WECC201001814

Subject: Notice of Completed Mitigation Plan Acceptance Reliability Standard PRC-005-1 Requirement 1

Dear Grant,

The Western Electricity Coordinating Council (WECC) received the Certification of Completion and supporting evidence for Wellhead Power Panoche, LLC (WHPP) on 2/2/2010 for the alleged violation of Reliability Standard PRC-005-1 Requirement 1.

WECC has accepted the Certification of Completion for Requirement 1 of the Reliability Standard PRC-005-1 and has found this requirement to be fully mitigated. No further mitigation of this requirement will be required at this time.

If you have any questions or concerns, please contact Mike Wells at [email protected]. Thank you for your assistance in this effort.

Sincerely,

Laura Scholl Managing Director of Compliance

LS:rhcc: Andy Robertson, WHPP Plant Manager Lisa Milanes, WECC Manager of Compliance Program Administration Mike Wells, WECC Senior Compliance Engineer

Laura SchollManaging Director of Compliance

[email protected]


Attachment c Record Documents for PRC-005-1 R2.1

i. WHPP’s Self-Report dated March 8, 2010 ii. WHPP’s Mitigation Plan submitted

March 8, 2010 iii. WHPP’s Certification of Mitigation Plan

Completion dated March 8, 2010 iv. WECC’s Verification of Mitigation Plan

Completion dated March 18, 2010



Self-Reporting Form


NERC Registry ID: NRC05456

Joint Registration Organization ORO) ID:




DBA

D DP

D RSG

D TOP

D PSE

D RC

Standard: PRC-005-1

Requirement: R2

o TO

o TSP

o IA

IXI GO

o PA

D GOP

D RP

Has this violation previously been reported or discovered: DYes If Yes selected: Provide NERC Violation ID (if known):



Is the violation still occurring? 0 Yes k8J No

o LSE

o TP

IXI No

Detailed explanation and cause of violation: On 02/02/10 we submitted a Self Report, Mitigation Plan and Mitiagtion Completion Plan (all of which were approved by WECC) for PRC-005 Rl because we did not specify the intervals, basis for intervals, or testing summaries for current transformers, potential transformers, and battery systems as required by the standard. We stated in our mitigation plan that the battery system maintenace had been in our the CMMS system, but was not specified in the site's Protective Relay Testing Guidance Procedure. We also stated that the site was aware that the current and potential transformers needed to be tested to conform to the NERC standard and that the testing was conducted in December of 2009; however, the site's Protective Relay Testing Guidance Procedure did not include this information. It has been brought to our attention that, for an abundance of caution, we should also Self Report this viloation under R2 since the CT and PT maintenance had not been conducted prior to December of 2009.

Potential Impact to the Bull, Power System (minimal, moderate, or severe): minimal Page 1





Detailed explanation of Potential Impact: The impact to the BES was minimal to none since there have been no protective system misoperations at Wellhead Power Panoche.


NOTE: While submittal of a mitigation plan is not required until after a determination of a violatian is canfirmed, early submittal of a mitigation plan to address and remedy an identified deficiency is encouraged. Submittal of a mitigation plan shall not be deemed an admission of a violation. (See NERC Rules of Procedure, Appendix 4C, Section 6.4.)


Page 2


NERC i'lOr~TH AMERfCAH ELECTRIC R!::LIAGILlTY CORPORI',TION

Mitigation Plan Submittal Form New ~ or Revised D

Date this Mitigation Plan is being submitted: 03/08/2010

If this Mitigation Plan has already been completed: • Check this box ~ and • Provide the Date of Completion of the Mitigation Plan: 03/08/2010 • Submit Certification of Mitigation Plan Completion Form along with



A.1 Notices and requirements applicable to Mitigation Plans and this Submittal Form are set forth in "Attachment A - Compliance Notices & Mitigation Plan Requirements" to this form. Review Attachment A and check this box ~ to indicate that you have reviewed and understand the information provided therein. This Submittal Form and the Mitigation Plan submitted herein are incomplete and cannot be accepted unless the box is checked.


B.1 Identify your organization:

Registered Entity Name: Wellhead Power Panache. LLC Registered Entity Address: 650 Bercut Drive. Suite C, Sacramento CA 95811 NERC Compliance Registry 10: NRC05456

B.2 Identify the individual in your organization who will be the Entity Contact regarding this Mitigation Plan. Please see Section 6.2 of the WECC Compliance Monitoring and Enforcement Program (CMEP) for a description of the qualifications required of the Entity Contact. 1


I A copy of the WECC CMEP is posted on WECC's website at: http://compliance.wecc.biziApplication/Documents/Home/20090101 %20-%20CMEP.pdf. Registered Entities are responsible for following all applicable WECC CMEP procedures. WECC strongly recommends that registered entities become familiar with the WECC CMEP and its requirements, as they may be amended from time to time.

Rev. 01/19/10, v5


Title: Email: Phone:

Council Operations Manager [email protected] 9J6-447-5171



C.1 Standard: PRC-005-1 [Identify by Standard Acronym (e.g. FAG-DOl-I)]


NERC Violation WECC Requirement Violation ID # Violation ID Violated Risk


R2 Hicrh

Alleged or Method of confirmed Detection Violation (e.g. audit, Daten self-report,

(MM/DDIYY) investiqation) self-report



The site had not conducted any routine testing of the protection system PTs or CTs since installation in 2001. [Provide your response here; additional detailed information may be provided as an attachment as necessary]

CA [Optional1 Provide any relevant additional information regarding the alleged or confirmed violations associated with this Mitigation Plan:

Rev. 01/19/10, v5



NERC ~~""~'W~ •.•• ,,? •. ,,·· .. NORTH AMERICAN ELECTRIC RELIAGILITY COr-<PORATIOI'l

On 02/02/10 we submitted a Self Report, Mitigation Plan and Mitiagtion Completion Plan (all of which were approved by WECC) for PRC-005 R1 because we did not specify the intervals, basis for intervals, or testing summaries for current transformers, potential transformers, and battery systems as required by the standard. We stated in our mitigation plan that the battery system maintenace had been in our the CMMS system, but was not specified in the site's Protective Relay Testing Guidance Procedure. We also stated that the site was aware that the current and potential transformers needed to be tested to conform to the NERC standard and that the testing was conducted in December of 2009; however, the site's Protective Relay Testing Guidance Procedure did not include this information. It has been brought to our attention that, for an abundance of caution, we should also Self Report this viloation under R2 since the CT and PT maintenance had not been conducted prior to December of 2009. [Provide your response here; additional detailed information may be provided as an attachment as necessary]



D.1 Identify and describe the action plan, including specific tasks and actions that your organization is proposing to undertake, or which it undertook if this Mitigation Plan has been completed, to correct the violations identified above in Part C.2 of this form:

The site conducted testing of the PTs and CTs in December of 2009 and the testing is now included in the site's Protective Relay Testing Guidance Procedure and CMMS [Provide your response here; additional detailed information may be provided as an attachment as necessary]

Check this box ~ and proceed to Section E of this form if this Mitigation Plan, as set forth in Part 0.1, has already been completed; otherwise respond to Part 0.2, 0.3 and, optionally, Part 0.4, below.


D.2 Provide the timetable for completion of the Mitigation Plan, including the completion date by which the Mitigation Plan will be fully implemented

Rev. 01/19/10, v5



NERC " 0 i.)\,"",Y:::;Vfi":,7,;'/::::;" -

NORTH AMEt=lIC/\N ELECTRIC RE:.L!AGILITY CORPORATIOr-J

and the alleged or confirmed violations associated with this Mitigation Plan corrected:

0.3 Enter Milestone Activities, with completion dates, that your organization is proposing for this Mitigation Plan:

Milestone Activity Proposed Completion Date* (milestones cannot be more than 3 months

apart)

(*) Note: Implementation milestones should be no more than three (3) months apart for Mitigation Plans with expected completion dates more than three (3) months from the date of submission. As set forth in CMEP section 6.6, adverse consequences could result from failure to complete, on a timely basis, all required actions in this Mitigation Plan, including implementation of milestones. A request for an extension of the completion date of any milestone or of the Mitigation Plan must be received by WECC at least five (5) business days before the relevant milestone or completion date.





Rev. 01/19/10, v5



NERC iii*l(;;;",~~F?:\;";"::;-:-;-

NORTH /'~MEr-lICJ\hl ELECTRIC RE;::Lli ... GILITY CORPORA.TIO!4







The updated Protective Relay Testing Guidance Procedure and the updated CMMS will produce a work order to test the PTs and CTs on a routine basis [Provide your response here; additional detailed information may be provided as an attachment as necessary]

E.3 Your organization may be taking or planning other action, beyond that listed in the Mitigation Plan, as proposed in Part D.1, to prevent or minimize the probability of incurring further violations of the same or similar standards requirements listed in Part C.2, or of other reliability standards. If so, identify and describe any such action, including milestones and completion dates:

Rev. 01/19/10, v5


NERC APt> ;_;::;:~' ",,-~ -

l'lORTH AMERICAN ELECTRIC RELIAGILlTY CORPORATIOU


Rev. 01/19/10, v5




NERC ~IORTH AMERICA~1 ELECTRIC RELIAI3ILITY CORPORATlor'-l




c) Acknowledges:


2. I am an officer, employee, attomey or other person authorized to sign this Mitigation Plan on behalf of Wellhead Power Panoche ,LLC.




Authorized Signature: Vctv.JLg~ (Electronic signatu are acceptable; see CMEP Section 3.0)

Name (Print):Pau! Cummins Title: Vice President Date: 3/8/2010

Rev. 01/19/10, vS


Western EledricityCoordinatlng Council


NERC # ~:'."2r;i",'c:: NORTH AMERICAN ELECTRIC RELIPd31L1TY CORr.>ORATION






http://compliance.wecc.biziApplication/Documents/FormsIWECC%20Com pliance%20Data%20Submittal%20Policy.pdf

Rev. 01/19/10, v5


NERC '* 4!Z!SI;,:<~' NOPTH ,".MERICAN ELECTRIC RELIAGILITY CORPORATIOI-J



(1) The Registered Entity's point of contact for the Mitigation Plan, who shall be a person (i) responsible for filing the Mitigation Plan, (ii) technically knowledgeable regarding the Mitigation Plan, and (iii) authorized and competent to respond to questions regarding the status of the Mitigation Plan. This person may be the Registered Entity's pOint of contact described in Section 2.0.











Rev. 01/19/10, v5



NERC &. ~ S;"'''''''',F,2!:Z::;'C:-' -

NORTH Af,AERIC/,H ELECTRIC REUA81LlTY CORPORATION






Rev. 01/19/10, v5







NERC Registry ID: NRC05456


NERC Violation ID No(s) (iflmown):

Standard: PRC-005-1

Requirement(s): R2




[ certify that the Mitigation Plan for the above named violation has been completed on the date shown above and that all submitted information is complete and correct to the best of my knowledge.

Name: Paul Cummins



Phone: 916-447-5171

Authorized Signature9a...JL?~ Date: 3/8/10

WECC CMEP- Certification of Mitigation Plan Completion Form Dated: May 20, 2009. Version 1


CONFIDENTIAL

W E S T E R N E L E C T R I C I T Y C O O R D I N A T I N G C O U N C I L • W W W . W E C C . B I Z 6 1 5 A R A P E E N D R I V E • S U I T E 2 1 0 • S A L T L A K E C I T Y • U T A H • 8 4 1 0 8 - 1 2 6 2 • P H 8 0 1 . 5 8 2 . 0 3 5 3 • F X 8 0 1 . 5 8 2 . 3 9 1 8

VIA COMPLIANCE WEB PORTAL March 18, 2010 Grant McDaniel Operations Manager Wellhead Power Panoche, LLC 650 Bercut Drive Sacramento, California 95814 NERC Registration ID: NCR05456 NERC Violation ID: Not Yet Assigned Subject: Notice of Mitigation Plan and Completed Mitigation Plan Acceptance Reliability Standard PRC-005-1 Requirement 2.1 Dear Grant, The Western Electricity Coordinating Council (WECC) has received the Mitigation Plan and the Certification of Completion and supporting evidence submitted by Wellhead Power Panoche, LLC (WHPP) on 3/8/2010 for the alleged violation of Reliability Standard PRC-005-1 Requirement 2.1. WECC has accepted the Mitigation Plan and the Certification of Completion for Requirement 2.1 of the Reliability Standard PRC-005-1 and has found this requirement to be fully mitigated. No further mitigation of this requirement will be required at this time. If you have any questions or concerns, please contact Mike Wells at [email protected]. Thank you for your assistance in this effort. Sincerely, Laura Scholl Managing Director of Compliance LS:rh cc: Andy Robertson, WHPP Plant Manager John McGhee, WECC Director of Audits and Investigations Lisa Milanes, WECC Manager of Compliance Program Administration Mike Wells, WECC Senior Compliance Engineer


801-819-7619

[email protected]


Attachment d Record Documents for FAC-008-1 R1

i. WHPP’s Self-Report dated February 2, 2010

ii. WHPP’s Mitigation Plan submitted February 2, 2010

iii. WHPP’s Certification of Mitigation Plan Completion dated February 2, 2010

iv. WECC’s Verification of Mitigation Plan Completion dated February 19, 2010



Self-Reporting Form



Joint Registration Organization ORO) 10:




DBA o TOP o TO [SJ GO o GOP

o DP o PSE o TSP o PA o RP

o RSG o RC o IA

Standard: FAC-008-1

Requirement: Rl.2, Rl.2.1

Has this violation previously been reported or discovered: 0 Yes If Yes selected: Provide NERC Violation 10 (iflmown):



Is the violation still occurring? 0 Yes IXl No

o LSE

o TP

[SJ No

Detailed explanation and cause of violation: Violation was discovered during a third party independent auit of our programs. Rl.2 - The approved facility rating methodology was implied, rather than clearly stated as required by the standard. R1.2.1 - The facility rating scope of equipment did not include the protective relays or terminal equipment because it was generaly Imown that these were rated for fault condtions and not normal opel·ation for generation facilites; however, the standard does require that these be considered. Furthermore the facility rating methodology did not include a negative statement that the facility did not have any shunt compensation devices, transmission lines and/or conductors and therefore these components would not be considered.

Potential Impact to the Bulk Power System (minimal, moderate, or severe): None


Page 1



Western Electricity Coordinating Council Detailed explanation of Potential Impact: There is no impact to the BES since the violations are administrative in nature and strict compliance with the standard will not effect the actual faciltiy rating


NOTE: While submittal of a mitigation plan is not required until after a determination of a violation is confirmed, early submittal of a mitigation plan to address and remedy an identified deficiency is encouraged. Submittal ofa mitigation plan shall not be deemed an admission ofa violation. {See NERC Rules of Pracedure, Appendix 4C, Section 6.4.}

WECC CMEP - Self· Reporting Form Dated: April 13. 2009, Version 1

Page 2


NERC i!i&+&""C~:";h~' ",,\'>";

HORTH AMERICI''''I ELECTRIC RSLfA81LlTY CORPORft.Tlon

Mitigation Plan Submittal Form New !SI or Revised 0

Date this Mitigation Plan is being submitted: 02102/2009

If this Mitigation Plan has already been completed: • Check this box !SI and • Provide the Date of Completion of the Mitigation Plan: 02/0212009 • Submit Certification of Mitigation Plan Completion Form along with



A.1 Notices and requirements applicable to Mitigation Plans and this Submittal Form are set forth in "Attachment A - Compliance Notices & Mitigation Plan Requirements" to this form. Review Attachment A and check this box !SI to indicate that you have reviewed and understand the information provided therein. This Submittal Form and the Mitigation Plan submitted herein are incomplete and cannot be accepted unless the box is checked.


B.1 Identify your organization:

Registered Entity Name: Wellhead Power Panoche, LLC Registered Entity Address: 650 Bercut Drive, Suite C, Sacramento CA 95811 NERC Compliance Registry ID: NRC05456

B.2 Identify the individual in your organization who will be the Entity Contact regarding this Mitigation Plan. Please see Section 6.2 of the WECC Compliance Monitoring and Enforcement Program (CMEP) for a description of the qualifications required of the Entity Contact.1


1 A copy of the WECC CMEP is posted on WECC's website at: htlp:llcompliance.wecc.biziApplication/Documents/Home/20090101 %20-%20CMEP.pdf. Registered Entities are responsible for following all applicable WECC CMEP procedures. WECC strongly recommends that registered entities become familiar with the WECC CMEP and its requirements, as they may be amended from time to time.

Rev. 01/19/10, v5


Western Electricity Coordinating Council Title: Operations Manager Email: [email protected] Phone: 916-447-5171

NERC '" "MV='Bd~'2;i::r:"-"; :"'"

HORTH AMERICAH ELECTRIC RELIAGILITY COr-lPORATIOU



C.1 Standard: FAC-008-1 [Identify by Standard Acronym (e.g. FAG-DOl-I)]


NERC Violation WECC Requirement Violation ID# Violation ID Violated Risk


R1.2 Medium R1.2.1 Medium

Alleged or Method of confirmed Detection Violation (e.g. audit,

Date{') self-report, (MM/DD/yy) investigation)

self -report self-report



Violation was discovered during a third party independent auit of our programs. RI.2 - The approved facility rating methodology was implied, rather than clearly stated as required by the standard. R 1.2.1 - The facility rating scope of equipment did not include the protective relays or terminal equipment because it was generaly known that these were rated for fault condtions and not normal operation for generation facilites; however, the standard does require that these be considered. Furthermore the facility rating methodology did not include a statement that the facility did not have any shunt compensation devices,

Rev. 01/19/10, v5


Western Electricity Coordinating Council transmission lines and/or conductors and therefore these components would not be considered. [Provide your response here; additional detailed information may be provided as an attachment as necessary]

C.4 [Optional] Provide any relevant additional information regarding the alleged or confirmed violations associated with this Mitigation Plan:




0.1 Identify and describe the action plan, including specific tasks and actions that your organization is proposing to undertake, or which it undertook if this Mitigation Plan has been completed, to correct the violations identified above in Part C.2 of this form:

Update the Facilty Rating Methodology to clearly specify the approved methodology, and include all components as required by the standard. Where the facilty does not have components listed in the standard. a statement will be made that those components will not be considered because the facility does not have those components. [Provide your response here; additional detailed information may be provided as an attachment as necessary]

Check this box [S] and proceed to Section E of this form if this Mitigation Plan, as set forth in Part 0.1, has already been completed; otherwise respond to Part 0.2, 0.3 and, optionally, Part 0.4, below.


0.2 Provide the timetable for completion of the Mitigation Plan, including the completion date by which the Mitigation Plan will be fully implemented and the alleged or confirmed violations associated with this Mitigation Plan corrected:

0.3 Enter Milestone Activities, with completion dates, that your organization is proposing for this Mitigation Plan:

Rev. 01/19/10, v5


Milestone Activity

NERC P0iiS.'0,' ·",,,E"':'.;.'>O';',::--:

HOr"TH AMERICAN EL.ECTRIC R;;;Llr~GILITY CQRPor=lATION

Proposed Completion Date* (milestones cannot be more than 3 months

apart)

n Note: Implementation milestones should be no more than three (3) months apart for Mitigation Plans with expected completion dates more than three (3) months from the date of submission. As set forth in CMEP section 6.6, adverse consequences could result from failure to complete, on a timely basis, all required actions in this Mitigation Plan, including implementation of milestones. A request for an extension of the completion date of any milestone or of the Mitigation Plan must be received by WECC at least five (5) business days before the relevant milestone or completion date.





Rev. 01/19/10, v5



NERC &!W07ia:§t?T;,~,,-_

NORTH AMERICAN EL.ECTPIC R",LIAGILITY CORPORATIOt~







The updated Faciltiy Rating methodology will ensure that all applicable components of the system are considered as required by the standard. [Provide your response here; additional detailed information may be provided as an attachment as necessary]

E.3 Your organization may be taking or planning other action, beyond that listed in the Mitigation Plan, as proposed in Part 0.1, to prevent or minimize the probability of incurring further violations of the same or similar standards requirements listed in Part C.2, or of other reliability standards. If so, identify and describe any such action, including milestones and completion dates:

Rev. 01/19/10, v5



NERC NORTH i\MERICAH ELECTPIC RELIAGILITY CQRPORi..,TIOtJ


Rev. 01/19/10, v5




NERC NORTH AMERICAN ELf:'CTRIC REL1A8ILIT',' CORPORATIOH




c) Acknowledges:


2. I am an officer, employee, attorney or other person authorized to sign this Mitigation Plan on behalf of Wellhead Power Panoche,LLC.




Authorized Signature: (Electronic signat

Name (Print):Paul Cummins Title: Vice President Date: 2/2/2010

are acceptable; see CMEP Section 3.0)

Rev. 01/19/10, vS




NERC HORTI"r AMERICI',t" ELECTRIC RELli ... GILITY CORPORATlor"






http://compliance.wecc.biziApplication/Documents/FormsIWECC%20Com pliance%20Data%20Submittal%20Policy.pdf

Rev. 01/19/10, v5


NERC ~ ~#90'" ",{,'!?'::';'P;IE':>"'" -

NOPTH AMERICAI'< ELECTRIC RELIAGILITY CORPOPATIOH



(1) The Registered Entity's point of contact for the Mitigation Plan, who shall be a person (i) responsible for filing the Mitigation Plan, (ii) technically knowledgeable regarding the Mitigation Plan, and (iii) authorized and competent to respond to questions regarding the status of the Mitigation Plan. This person may be the Registered Entity's point of contact described in Section 2.0.











Rev. 01/19/10, v5



NERC NORTH AMERIC"\~l ELECTPjC RELIAG1LITY CORPORATIClH






Rev. 01/19/10, v5








NERC Violation 10 No(s) (iflmown):

Standard: FAC-008-1

Requirement(s): R1.2, R1.2.1




I certify that the Mitigation Plan for the above named violation has been completed on the date shown above and that all submitted information is complete and correct to the best of my knowledge.

Name: Paul Cummins



Phone: 916-447-5171

Autholl'ized SignatureNM S"--L~ Date: 2/Z/;D

WECC CMEP - Certification of Mitigation Plan Completion Form Dated: May 20,2009, Version 1


CONFIDENTIAL

W E S T E R N E L E C T R I C I T Y C O O R D I N A T I N G C O U N C I L • W W W . W E C C . B I Z6 1 5 A R A P E E N D R I V E • S U I T E 2 1 0 • S A L T L A K E C I T Y • U T A H • 8 4 1 0 8 - 1 2 6 2 • P H 8 0 1 . 5 8 2 . 0 3 5 3 • F X 8 0 1 . 5 8 2 . 3 9 1 8

VIA COMPLIANCE WEB PORTAL

February 19, 2010

Grant McDaniel Operations Manager Wellhead Power Panoche, LLC 650 Bercut Drive Sacramento, California 95814

NERC Registration ID: NCR05456 NERC Violation ID: WECC201001825

Subject: Notice of Completed Mitigation Plan Acceptance Reliability Standard FAC-008-1 Requirement 1

Dear Grant,

The Western Electricity Coordinating Council (WECC) received the Certification of Completion and supporting evidence for Wellhead Power Panoche, LLC (WHPP) on 2/2/2010 for the alleged violation of Reliability Standard FAC-008-1 Requirement 1.

WECC has accepted the Certification of Completion for Requirement 1 of the Reliability Standard FAC-008-1 and has found this requirement to be fully mitigated. No further mitigation of this requirement will be required at this time.

If you have any questions or concerns, please contact Jay Loock at [email protected]. Thank you for your assistance in this effort.

Sincerely,

Laura Scholl Managing Director of Compliance

LS:rhcc: Andy Robertson, WHPP Plant Manager Lisa Milanes, WECC Manager of Compliance Program Administration Jay Loock, WECC Senior Compliance Engineer


[email protected]


Attachment e

Response to the Notice of Alleged Violation and Proposed Penalty or Sanction dated March 26,

2010

Attachment f

Notice of Filing

UNITED STATES OF AMERICA FEDERAL ENERGY REGULATORY COMMISSION

Wellhead Power Panoche, LLC Docket No. NP11-___-000

NOTICE OF FILING November 30, 2010

Take notice that on November 30, 2010, the North American Electric Reliability

Corporation (NERC) filed a Notice of Penalty regarding Wellhead Power Panoche, LLC in the Western Electricity Coordinating Council region.

Any person desiring to intervene or to protest this filing must file in accordance with Rules 211 and 214 of the Commission’s Rules of Practice and Procedure (18 CFR 385.211, 385.214). Protests will be considered by the Commission in determining the appropriate action to be taken, but will not serve to make protestants parties to the proceeding. Any person wishing to become a party must file a notice of intervention or motion to intervene, as appropriate. Such notices, motions, or protests must be filed on or before the comment date. On or before the comment date, it is not necessary to serve motions to intervene or protests on persons other than the Applicant.

The Commission encourages electronic submission of protests and interventions

in lieu of paper using the “eFiling” link at http://www.ferc.gov. Persons unable to file electronically should submit an original and 14 copies of the protest or intervention to the Federal Energy Regulatory Commission, 888 First Street, N.E., Washington, D.C. 20426.

This filing is accessible on-line at http://www.ferc.gov, using the “eLibrary” link and is available for review in the Commission’s Public Reference Room in Washington, D.C. There is an “eSubscription” link on the web site that enables subscribers to receive email notification when a document is added to a subscribed docket(s). For assistance with any FERC Online service, please email [email protected], or call (866) 208-3676 (toll free). For TTY, call (202) 502-8659. Comment Date: [BLANK]

Kimberly D. Bose, Secretary