November 14, 2011

VIA ELECTRONIC FILING

The Honorable Kimberly D. Bose Secretary

Federal Energy Regulatory Commission 888 First Street, N.E.

Washington, DC 20426

Re: North American Electric Reliability Corporation, Supplemental Comments of the

ISO/RTO Council on the Petition of the North American Electric Reliability

Corporation Requesting Approval of New Enforcement Mechanisms and Submittal of Initial Informational Filing Regarding NERC’s Efforts to Refocus
Implementation of its Compliance Monitoring and Enforcement Program; Docket No. RC11-6-000

Dear Secretary Bose:

Transmitted electronically for filing in the referenced docket are the Supplemental Comments of the ISO/RTO Council on the Petition of the North American Electric Reliability Corporation
Requesting Approval of New Enforcement Mechanisms and Submittal of Initial Informational
Filing Regarding NERC’s Efforts to Refocus Implementation of its Compliance Monitoring and Enforcement Program.

If there are any questions concerning this filing, please call me at (202) 661-2205. Respectfully submitted,

/s/ Howard H. Shafferman

Howard H. Shafferman

Counsel for ISO New England Inc.
On behalf of the ISO/RTO Council

DMEAST #14216889 v1

UNITED STATES OF AMERICA
BEFORE THE

FEDERAL ENERGY REGULATORY COMMISSION

North American Electric Reliability Corporation)Docket No. RC11-6-000

SUPPLEMENTAL COMMENTS OF THE ISO/RTO COUNCIL

The ISO/RTO Council (“IRC”)1 respectfully submits these supplemental comments on the Petition of the North American Electric Reliability Corporation (“NERC”) Requesting
Approval of New Enforcement Mechanisms and Submittal of Initial Informational Filing
Regarding NERC’s Efforts to Refocus Implementation of its Compliance Monitoring and
Enforcement Program (the “Petition”). The IRC’s initial motion to intervene and comments was submitted to the Federal Energy Regulatory Commission (“FERC” or the “Commission”) on
October 21, 2011 (the “Initial Comments”).

I.INTRODUCTION

Two elements of the Petition were addressed in the Initial Comments. As relevant here, the IRC commented on the Petition’s references to the conduct of a risk assessment for
Registered Entities. Specifically, the IRC urged the Commission to remand the entity risk
assessment to NERC for additional work with the stakeholders, and that the Commission direct NERC to engage in a stakeholder process with instructions to add reasonably detailed objective criteria and transparency to the assessment’s components and processes. Further, the Initial
Comments requested the Commission to require the addition of an opportunity for Registered Entities to challenge their assigned risk levels.

1 The IESO is not subject to the Commission’s jurisdiction, and these supplemental comments do not constitute agreement or acknowledgement that it can be subject to the Commission’s jurisdiction. The AESO and NBSO are also non-jurisdictional members of the IRC, but are not joining in these
supplemental comments.

DMEAST #14216889 v1

II.SUPPLEMENTAL COMMENTS

Since the filing of the Initial Comments, NERC representatives have been in

communication with IRC contacts and has filed an Answer in this proceeding to clarify that the
registered entity assessment description was provided in the Petition for informational purposes
only, and is not within the scope of the matters for which NERC requested approval in the
Petition. Nonetheless, in the Answer, NERC is also committing to provide opportunity for
stakeholder input on the components of the risk assessment discussed on page 36 of the Petition,
and on the refinement of criteria used to evaluate these components. In addition, NERC intends
on developing an entity risk assessment template, which is a risk profile tool that was referenced
in the Petition for informational purposes only. The Answer states that NERC is similarly
committed to seeking further stakeholder input on this template, and that NERC will develop a
deliberate and methodical plan to involve stakeholders in developing a risk assessment template
and criteria and present the plan at the February 2012 BOTCC Open meeting in Phoenix. NERC
will solicit initial input from the NERC Compliance and Certification Committee.
Based on NERC’s commitment to voluntarily undertake stakeholder processes to address the IRC’s concerns, the IRC believes that that it is appropriate to withdraw its request for the Commission to direct through an order the return of the entity risk assessment to a NERC
stakeholder process. In concert with that withdrawal, the Commission should also release the ex
parte communication restrictions that are currently in place with respect to the Petition, in order
to facilitate NERC, FERC and industry discussions.

DMEAST #14216889 v1

/s/ Craig Glazer

Craig Glazer

Vice President - Federal Government Policy Steven R. Pincus

Assistant General Counsel

PJM Interconnection, LLC

1200 G Street, N.W. Suite 600 Washington, D.C. 20005

/s/ Stephen G. Kozey

Stephen G. Kozey

Vice President, General Counsel, and Secretary

Midwest Independent Transmission System Operator, Inc.

P.O. Box 4202

Carmel, Indiana 46082-4202

/s/ Anthony Ivancovich

Anthony Ivancovich

Assistant General Counsel-Regulatory

California Independent System Operator Corporation

151 Blue Ravine Road
Folsom, California 95630

DMEAST #14216889 v1

/s/ Raymond W. Hepper

Raymond W. Hepper
Vice President, General
Counsel, and Secretary
Theodore J. Paradise

Assistant General Counsel - Operations and Planning

ISO New England, Inc.

One Sullivan Road

Holyoke, Massachusetts 01040

/s/ Brian Rivard

Brian Rivard

Manager, Regulatory Affairs

Ontario’s Independent Electricity System Operator

655 Bay Street, Suite 410 Toronto, Ontario

M5G 2K4

/s/ Carl F. Patka

Carl F. Patka

Assistant General Counsel Raymond Stalter

Director, Regulatory Affairs

New York Independent System Operator,
Inc.

10 Krey Blvd

Rensselaer, New York 12144

/s/ Heather Starnes

Heather Starnes

Manager, Regulatory Policy

Southwest Power Pool

415 North McKinley #140 Plaza West

Little Rock, Arkansas 72205

Date: November 14, 2011

DMEAST #14216889 v1

/s/ Matthew Morais

Matthew Morais

Assistant General Counsel

Electric Reliability Council of Texas

7620 Metro Center Drive Austin, Texas 78744

DMEAST #14216889 v1