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Federal Register / Vol. 73, No.

82 / Monday, April 28, 2008 / Proposed Rules 22849

proposed amendment provides By direction of the Commission. Kay Morice (technical issues), Office of
guidance on how to mark or describe Energy Market Regulation, Federal
Donald S. Clark,
non-deceptively products that contain at Energy Regulatory Commission, 888
Secretary. First Street, NE., Washington, DC
least 500 parts per thousand, but less
[FR Doc. E8–9171 Filed 4–25–08: 8:45 am] 20426, (202) 502–6507.
than 850 parts per thousand, pure
platinum and do not contain at least 950 [Billing Code 6750–01–S] Ryan M. Irwin (technical issues), Office
parts per thousand platinum group of Energy Market Regulation, Federal
metals. The Commission also sought Energy Regulatory Commission, 888
DEPARTMENT OF ENERGY First Street, NE., Washington, DC
comment on whether it should revise
20426, (202) 502–6454.
the Guides to provide guidance on how Federal Energy Regulatory SUPPLEMENTARY INFORMATION:
to mark or describe platinum-clad, Commission 1. The Federal Energy Regulatory
filled, plated, or overlay products. The Commission (Commission) proposes to
notice designated May 27, 2008 as the 18 CFR Part 38 amend its regulations under the Federal
deadline for filing public comments. Power Act 1 to incorporate by reference
[Docket No. RM05–5–005]
Two trade associations that represent the latest version (Version 001) of
jewelry industry members, Platinum Standards for Business Practices and certain business practice standards
Guild International (PGI) and Jewelers Communication Protocols for Public concerning the Open Access Same-Time
Vigilance Committee (JVC), request a 90- Utilities Information Systems (OASIS) and four
day extension of the comment period. business practice standards relating to
Issued April 21, 2008. reliability issues adopted by the
The associations explain that the
AGENCY: Federal Energy Regulatory Wholesale Electric Quadrant (WEQ) of
Commission requested responses to 19
Commission, DOE. the North American Energy Standards
questions, that include over 20 subparts,
and expressly requested submission of ACTION: Notice of proposed rulemaking. Board (NAESB). These revised
standards update earlier versions of
empirical data.3 PGI states that the SUMMARY: The Federal Energy these standards that the Commission
current deadline does not provide Regulatory Commission (Commission) previously incorporated by reference
sufficient time to develop its comments proposes to incorporate by reference in into its regulations at 18 CFR 38.2 in
and generate data to address the its regulations the latest version Order Nos. 676 and 676–B.2 In addition,
questions. JVC explains that the current (Version 001) of certain standards we propose to incorporate by reference
period does not allow sufficient time for adopted by the Wholesale Electric NAESB’s new standards on
its Platinum Task Force 4 to collect the Quadrant (WEQ) of the North American transmission loading relief for the
information required to fully address Energy Standards Board (NAESB). Eastern Interconnection and public key
the issues. NAESB’s standards revise its Open infrastructure, and add a new OASIS
Karat Platinum LLC, a marketer of Access Same-Time Information Systems implementation guide.
platinum/base metal alloys, filed a (OASIS) business practice standards and
four business practice standards relating I. Background
comment opposing the request for
extension. Karat Platinum asserts that to reliability issues, add new standards NAESB
additional time is not needed in order on transmission loading relief for the 2. NAESB is a non-profit standards
Eastern Interconnection and public key development organization established in
to fully and completely respond to the
infrastructure, and add a new OASIS January 2002 that serves as an industry
Commission’s request for comment and
implementation guide. forum for the development and
that a delay will perpetuate market
DATES: Comments on the proposed rule promotion of business practice
confusion. Karat Platinum states that the
issues surrounding the appropriate are due May 28, 2008. standards that promote a seamless
terminology for this alloy are not new ADDRESSES: You may submit comments marketplace for wholesale and retail
and many of the questions in the request identified by Docket No. RM05–5–005, natural gas and electricity.3 Since 1995,
for comment overlap with those posed by one of the following methods: NAESB and its predecessor, the Gas
in the Commission’s 2005 FRN • Agency Web site: http://ferc.gov. Industry Standards Board, have been
requesting comment on this issue.5 Follow the instructions for submitting accredited members of the American
comments via the eFiling link found in National Standards Institute (ANSI),
The Commission is mindful of the the Comment Procedures Section of the complying with ANSI’s requirements
need to deal with this matter preamble. that its standards reflect a consensus of
expeditiously. However, the • Mail: Commenters unable to file the affected industries.4
Commission also recognizes that its comments electronically must mail or 3. NAESB’s standards include
proposal raises complex issues and hand deliver an original and 14 copies business practices that streamline the
believes that extending the comment of their comments to the Federal Energy
period to facilitate the creation of a Regulatory Commission, Secretary of the 1 16 U.S.C. 791a, et seq.
2 Standards for Business Practices and
more complete record outweighs any Commission, 888 First Street, NE.,
Communication Protocols for Public Utilities, Order
harm that might result from any delay. Washington, DC 20426. Please refer to No. 676, 71 FR 26199 (May 4, 2006), FERC Stats.
Accordingly, the Commission has the Comment Procedures Section of the & Regs., Regulations Preambles ¶ 31,216 (Apr. 25,
decided to extend the comment period preamble for additional information on 2006), reh’g denied, Order No. 676–A, 116 FERC
to August 25, 2008. how to file paper comments. ¶ 61,255 (2006), Order No. 676–B, 72 FR 21095
(Apr. 30, 2007), FERC Stats. & Regs. ¶ 31,246 (Apr.
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FOR FURTHER INFORMATION CONTACT: 19, 2007).


3 The notice includes 19 questions that have 27
Gary D. Cohen (legal issues), Office of 3 See Standards for Business Practices and
sub-parts. Id. Communication Protocols for Public Utilities,
4 The JVC co-chairs this task force with two other
the General Counsel, Federal Energy
Notice of Proposed Rulemaking, 72 FR 8318 (Feb.
industry trade associations, Manufacturing Jewelers Regulatory Commission, 888 First 27, 2007), FERC Stats. & Regs. ¶ 32,612 at P 3 (Feb.
and Suppliers of America and Jewelers of America. Street, NE., Washington, DC 20426, 20, 2007).
5 70 FR 38836 (July 6, 2005). (202) 502–8321. 4 Id.

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22850 Federal Register / Vol. 73, No. 82 / Monday, April 28, 2008 / Proposed Rules

transactional processes of the natural 7. In Order No. 676–B, the • Area Control Error (ACE) Equation
gas and electric industries, as well as Commission incorporated by reference Special Cases (WEQ–005);
communication protocols and related into its regulations at 18 CFR 38.2 the • Manual Time Error Correction
standards designed to improve the revised Coordinate Interchange (WEQ–006);
efficiency of communication within Standards adopted by NAESB in June • Inadvertent Interchange Payback
each industry. NAESB supports all four 2005. (WEQ–007);
quadrants of the gas and electric • Transmission Loading Relief—
industries—wholesale gas, wholesale NAESB’s Version 001 Report Eastern Interconnection (WEQ–008); 11
electric, retail gas, and retail electric. All 8. On December 26, 2007, NAESB • Standards of Conduct for Electric
participants in the gas and electric filed a report informing the Commission Transmission Providers (WEQ–009);
industries are eligible to join NAESB that the NAESB WEQ had ratified WEQ • Contracts Related Standards (WEQ–
and participate in standards Version 001 of its standards. These 010);
development.5 standards include several modifications • Gas/Electric Coordination (WEQ–
4. NAESB’s procedures are designed to the existing business practice 011); 12
to ensure that all industry members can standards that the Commission • Public Key Infrastructure (PKI)
have input into the development of a incorporated by reference in Order Nos. (WEQ–012); and
standard, whether or not they are 676 and 676–B, as well as creating new • Business Practices for Open Access
members of NAESB, and each standard standards to provide additional Same-Time Information Systems
NAESB adopts is supported by a functionality for OASIS transactions, (OASIS) Implementation Guide, Version
consensus of the relevant industry transmission loading relief for the 1.4 (WEQ–013).
segments.6 Eastern Interconnection, and public key
II. Discussion
Order Nos. 676 and 676–B infrastructure. Some of the standards
subsequently were corrected by the 9. We propose generally to
5. In Order No. 676, with certain WEQ and these minor corrections were incorporate by reference the NAESB
specified exceptions, the Commission applied to the Version 001 standards on WEQ standards.13 While many of the
incorporated by reference into its November 16, 2007.8 NAESB’s WEQ standards simply revise or update
regulations at 18 CFR 38.2 the Version Version 001 includes the following existing standards, some of the
000 OASIS Business Practice Standards standards: standards address new business
adopted by NAESB in January 2005. In • Business Practices for Open Access practices. For example, NAESB adopted
Order No. 676, the Commission also Same-Time Information Systems new business practice standards for
incorporated by reference into its (OASIS), Version 1.4 (WEQ–001); 9 Resales and Transfers to standardize
regulations at 18 CFR 38.2 NAESB’s • Business Practices for Open Access
OASIS Standards & Communication Same-Time Information Systems for approval by the North American Electric
Protocols, OASIS Data Dictionary and (OASIS) Standards & Communications Reliability Corporation (NERC). In the proceeding
four business practice standards related Protocols, Version 1.4 (WEQ–002);
in Docket No. RM08–7–000, the Commission is
to reliability issues. Specifically, the addressing modified Reliability Standards, while in
• OASIS Data Dictionary, Version 1.4 the instant proceeding, in Docket No. RM05–5–005,
business practice standards related to (WEQ–003); the Commission is addressing, among other matters,
reliability issues are: Coordinate • Coordinate Interchange (WEQ– the business practice standards related to these
Interchange, WEQ–004, Version 000; 004); 10
Reliability Standards. Five of the modified
Area Control Error (ACE) Equation Reliability Standards being addressed in the
proceeding in Docket No. RM08–7–000 pertain to
Special Cases, WEQ–005, Version 000; process was replaced by the more formal NAESB interchange scheduling and coordination and one
Manual Time Error Correction, WEQ– process, where NAESB, as an ANSI-approved pertains to transmission loading relief procedures.
006, Version 000; and Inadvertent standards development organization, adopted In addition, the Commission proposes, in the NOPR
Interchange Payback, WEQ–007, standards and requirements that were then reported being issued in RM08–7–000, to approve NERC’s
to the Commission to consider and, following proposed interpretation of five specific
Version 000. public comment, incorporate by reference into its Requirements of Commission-approved Reliability
6. In Order No. 676, the Commission regulations, where appropriate. Standards.
not only adopted business practice 8 The Version 001 standards do not include 11 Id.

standards and communication protocols modifications of existing standards or new 12 These standards are identical to the standards

for the wholesale electric industry, it standards to support Order No. 890, the the Commission incorporated by reference into its
Commission’s Final Rule amending the regulations at 18 CFR 38.2 in Order No. 698.
also established a formal ongoing Commission’s pro forma Open Access Transmission Standards for Business Practices for Interstate
process for reviewing and upgrading the Tariff, Preventing Undue Discrimination and Natural Gas Pipelines; Standards for Business
Commission’s OASIS standards and Preference in Transmission Service, 72 FR 12266 Practices for Public Utilities, Order No. 698, 72 FR
other wholesale electric industry (Mar. 15, 2007), FERC Stats. & Regs. ¶ 31,241 (Feb. 38757 (July 16, 2007), FERC Stats. & Regs.,
16, 2007), order on reh’g, Order No. 890–A, 73 FR Regulations Preambles 2006–2007 ¶ 31,251 (June
business practice standards.7 2984 (Jan. 16, 2008), FERC Stats. & Regs. ¶ 31,261 25, 2007), order on clarification and reh’g, Order
(Dec. 28, 2007), reh’g pending, with the exception No. 698–A, 121 FERC ¶ 61,264 (2007).
5 Id.at P 4. of modifications to resales and transfers to address 13 We do not propose to incorporate by reference
6 Id.at P 5. the Commission’s rules for resales described in in the Commission’s regulations the following
7 In developing the original OASIS standards and Order No. 890 in P 815 and footnote 496. standards: Standards of Conduct for Electric
9 The WEQ Version 001 package of standards
communications protocols adopted in Order No. Transmission Providers (WEQ–009) and Contracts
889, and revised in subsequent orders, the includes Version 1.4 of the OASIS Standards. The Related Standards (WEQ–010). We do not propose
Commission enlisted the assistance of two ad hoc reference to Version 1.4 is based on the fact that this to incorporate these standards into the
industry working groups (the ‘‘How’’ Group and the is the fourth set of revisions to the Version 1.0 Commission’s regulations because WEQ–009
‘‘What’’ Group) that developed proposals for OASIS OASIS Standards that the Commission adopted in contains no substantive standards and merely
standards and communications protocols that the Order No. 889. The Version 1.4 reference appears serves as a placeholder for future standards while
in Standards WEQ–001, WEQ–002, WEQ–003, and
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Commission reviewed, modified where appropriate, WEQ–010 contains an optional NAESB contract
and ultimately adopted as Commission regulations WEQ–013. regarding funds transfers. The Commission does not
and requirements. See Open Access Same-Time 10 In a Notice of Proposed Rulemaking (NOPR), require utilities to use such contracts and thus, the
Information System (OASIS) and Standards of being issued contemporaneously by the Commission does not propose to incorporate this
Conduct, Order No. 889, 61 FR 21737 (May 10, Commission in Docket No. RM08–7–000, the standard by reference. In addition, as discussed
1996), FERC Stats. & Regs., Regulations Preambles Commission proposes, pursuant to section 215 of more specifically in note 22, infra, we do not
January 1991–June 1996 ¶ 31,035 at 31,588–89 & n. the Federal Power Act, to approve six modified propose to incorporate by reference certain portions
13 (Apr. 24, 1996). In Order No. 676, this informal Reliability Standards submitted to the Commission of WEQ–001.

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Federal Register / Vol. 73, No. 82 / Monday, April 28, 2008 / Proposed Rules 22851

secondary transmission service on by reference in its OATT. We are not, Standard WEQ–002 divides the OASIS
OASIS. These standards also however, requiring a separate tariff Standards and Communications
standardize how Resales and Transfers filing to accomplish this change. Protocols Document (S&CP Document)
are conducted off OASIS. NAESB also Consistent with our prior practice, we into two documents, thus separating the
adopted public key infrastructure are proposing to give public utilities the technical requirements (which remain
standards to create greater security for option of including these changes as in WEQ–002) from the business
business transactions taking place over part of an unrelated tariff filing.17 requirements (now found in WEQ–013).
the Internet. In addition, NAESB has However, consistent with our prior The WEQ’s Standard WEQ–003 revises
revised and added standards practice, we propose that, once the the OASIS Data Dictionary to include
establishing business practices related Commission incorporates these minor clarifications or corrections to the
to the NERC reliability standards.14 In standards by reference into its format, appearance, or descriptions of
particular, NAESB has adopted regulations, public utilities must abide standards in standards documentation,
standards governing transmission by these standards even before they as well as corrections and minor
loading relief (TLR) that specify have updated their tariffs to incorporate revisions that did not materially change
business practices for cutting these changes. a standard.
transmission services in the event of a 15. The WEQ’s Standard WEQ–013
TLR, consistent with the NERC A. OASIS Standards contains a new OASIS Implementation
reliability standards. These standards 12. In Standards WEQ–001, WEQ– Guide. While this Standard condenses
are described more fully in the 002, and WEQ–003, NAESB revises the and incorporates the various OASIS
discussion below. OASIS Standards currently incorporated S&CP Document business practices and
10. NAESB approved the standards by reference by the Commission. More requirements that formerly were found
under its consensus procedures.15 specifically, in Standard WEQ–001, in WEQ–002 into a separate
Adoption of consensus standards is NAESB adopts new standards Implementation Guide, it makes no
appropriate because the consensus addressing Resale and Transfer significant substantive changes to the
process helps ensure the reasonableness transactions 18 that are consistent with prior standard.
of the standards by requiring that the the Commission’s policies articulated in 16. In this NOPR, we propose to
standards draw support from a broad Order No. 890.19 incorporate by reference all four of these
spectrum of all segments of the 13. In Order No. 890, the Commission OASIS-related business practice
industry. Moreover, since the industry adopted reforms to its underlying rules standards, as revised (i.e., Standards
itself has to conduct business under governing capacity reassignments. WEQ–001, WEQ–002, WEQ–003, and
these standards, the Commission’s Specifically, the Commission required WEQ–013).22
regulations should reflect those that all sales or assignments of capacity B. Public Key Infrastructure
standards that have the widest possible be conducted through or otherwise
support. In § 12(d) of the National 17. In Version 001, NAESB has
posted on the transmission provider’s
Technology Transfer and Advancement adopted new standards for secure
OASIS on or before the date the communications over the public
Act of 1995 (NTT&AA), Congress reassigned service commences.20 The
affirmatively requires federal agencies to internet, Public Key Infrastructure
Commission directed transmission (PKI) 23 (WEQ–012). These standards
use technical standards developed by providers (working through NAESB) to
voluntary consensus standards describe the requirements that
develop the appropriate OASIS Certification Authorities (CAs) 24 must
organizations, like NAESB, as a means functionality to allow such postings and
to carry out policy objectives or meet to claim the electronic certificate
stated that transmission providers need that a CA issues meets the NAESB WEQ
activities.16 not implement this new OASIS
11. The Commission is also
functionality and any related business Descriptions, Common Employees, Potential Merger
proposing, consistent with our
practices until NAESB develops Partners, Transfers, Information Disclosure,
regulation at 18 CFR 35.28(c)(vi), to
appropriate standards. These business Voluntary Consent to Share Non-Affiliated
require each electric utility to revise its Customer Information, Discretionary Actions Under
practices and functionality have now
open access transmission tariff (OATT) Tariff, Discounts, Chief Compliance Officer, and
been adopted by NAESB in Standard Written Procedures for Implementation.
to include the Version 001 WEQ
WEQ–001. 22 As we stated in Order No. 676, we are not
standards we are proposing to
14. The WEQ’s Standard WEQ–002 proposing to incorporate by reference WEQ
incorporate by reference herein. For standards 001–0.1, 001–0.9 through 001–0.13, 001–
creates a new business practice standard
standards that do not require 1.0 through 001–1.8, and 001–9.7, because these
requiring a Standards of Conduct link
implementing tariff provisions, the standards merely restate Commission regulations
Commission is proposing to permit the on the OASIS in response to the and because standard 001–9.7 is not consistent with
utility to incorporate the WEQ standard Commission’s NOPR that preceded the Commission’s policy on redirects.
23 This PKI mechanism occurs through the use of
Order No. 676.21 In addition, WEQ
extremely long prime numbers, called keys. Two
14 See note 10, supra. keys are involved—a private key, which only the
17 See Order No. 676 at P 100.
15 The WEQ’s procedures ensure that all industry user has access to, and a public key, which can be
18 NAESB defines a ‘‘Resale’’ as ‘‘[t]he request to
members can have input into the development of accessed by anyone. The two keys work together so
a business practice standard, whether or not they convey scheduling rights associated with a a message scrambled with the private key can only
are members of NAESB, and each standard it adopts reservation for Point-to-Point Transmission Service be unscrambled with the public key and vice versa.
is supported by a consensus of the five industry from a Reseller to an Assignee.’’ Standard WEQ– The more digits in these keys, the more secure the
segments: transmission, generation, marketer/ 001.0.19. NAESB defines ‘‘Transfer’’ as a ‘‘[r]equest process. Similar to proving an identity through a
brokers, distribution/load serving entities, and end to convey all rights and obligations associated with handwritten signature offline, a digital signature is
users. Under the WEQ process, for a standard to be a reservation for Point-to-Point Transmission used to prove an identity online.
approved, it must receive a super-majority vote of Service from a Reseller to an Assignee.’’ Standard
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24 A Certification Authority is a third-party entity


67 percent of the members of the WEQ’s Executive WEQ–001–0.20. that issues digital certificates used to create digital
19 See Order No. 890, P 815 and n.496.
Committee with support from at least 40 percent of signatures and public-private key pairs. A
each of the five industry segments. For final 20 Id.
Certification Authority plays a critical role in data
approval, 67 percent of the WEQ’s general 21 The types of information accessible from this security and electronic commerce since it is
membership must ratify the standards. link include Emergency Circumstances Deviations, entrusted to guarantee that the two parties
16 Public Law No. 104–113, 12(d), 110 Stat. 775 Marketing and Energy Affiliate List, Shared exchanging information are really who they claim
(1996), 15 U.S.C. 272 note (1997). Facilities, Organizational Charts and Job to be.

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22852 Federal Register / Vol. 73, No. 82 / Monday, April 28, 2008 / Proposed Rules

PKI Standards and to conform to the comment on two aspects of these standard in lieu of the current version
NAESB Certification Program and, thus, standards. Standard 004–3.1 states that of this standard.
be considered an Authorized ‘‘[f]or Interchange where the sink is in
5. Transmission Loading Relief
Certification Authority (Authorized the Western Interconnection for same
CA).25 Providing security for day transactions, the last Purchasing- 25. In Version 001, NAESB has
transactions across the public internet is Selling Entity before the DC Tie in the adopted new standards for
an important part of supporting energy Eastern Interconnection shall be Transmission Loading Relief—Eastern
markets and system reliability responsible for submitting the e-Tag.’’ Interconnection (WEQ–008). NAESB
functions. Therefore, we propose to This standard identifies only the last states that these business practice
update our regulations at 18 CFR 38.2 to Purchasing-Selling Entity before the DC standards are intended to be
incorporate by reference Standard Tie in the Eastern Interconnection as complementary to the NERC reliability
WEQ–012. being responsible for submitting the e- standards INT–004–1—Reliability
Tag Interchange when the sink is in the Coordination—Operations Planning and
C. Business Standards to Coordinate INT–006–4—Reliability Coordination—
Western Interconnection. However, we
With Reliability Standards Transmission Loading Relief.27 NAESB
request comment on whether, based on
18. The WEQ has also adopted the NERC standards, this standard also reports that its Transmission Loading
revisions to business practice standards should address whether a Generator Relief (TLR) business practice standards
addressing the business ramifications of Owner or Load Serving Entity may are the result of a multi-year joint effort
certain reliability-related issues. schedule directly to the DC Tie owner. of the NERC Transmission Loading
21. Additionally, Standard 004–6.1.2 Relief Drafting Team and the NAESB
1. Coordinate Interchange
states that ‘‘[i]f the PSE, LSE, and GPE WEQ Business Practices Subcommittee
19. In Version 001 standards for do not respond to a request from the to split the existing NERC Transmission
Coordinate Interchange (WEQ–004), Interchange Authority, the Interchange Loading Relief reliability standards into
NAESB has made additional is considered passively approved.’’ reliability and business practice
modifications to the Coordinate While confirmation by silence is a components. In addition, NAESB states
Interchange standards that the common business practice eliminating that the NAESB WEQ TLR standards
Commission incorporated by reference unnecessary communications, we have been further modified to allow for
into its regulations in Order No. 676– request comment on whether this is regional differences for market flows.28
B.26 These modifications were made to appropriate for a business practice The NAESB WEQ TLR standards
account for a regional difference in the intended to complement a reliability include general requirements regarding
Western Electricity Coordinating standard. the use of Interconnection-wide TLR
Council regarding acceptable backup procedures; 29 Interchange
methods for creating a Request for 2. Area Control Error (ACE) Equation Transaction 30 priorities for use with
Interchange, to provide for Purchasing- Special Cases Interconnection-wide TLR procedures;
Selling Entity optional approval rights, 22. In the Version 001 standards for the Eastern Interconnection procedure
to explain the terms ‘‘correctable’’ and Area Control Error (ACE) Equation for physical curtailment of Interchange
‘‘required,’’ to clarify that tag data Special Cases (WEQ–005), NAESB has Transactions; appendices with various
elements may be ‘‘not correctable’’ or made only minor modifications to the
‘‘not required,’’ and to make the element standards to number the definitions and 27 NERC filed a petition seeking approval of its

of ‘‘Energy Product Type’’ required. make other minor edits. We propose to related proposed reliability standards, IRO–006–4—
These modifications were made as a Reliability Coordination—Transmission Loading
update our regulations at 18 CFR 38.2 to Relief, with the Commission in Docket No. RM08–
result of a joint effort of NERC and incorporate by reference this revised 7–000. We believe that NAESB’s reference to INT–
NAESB via the Joint Interchange standard in lieu of the current version 006–4 should be a reference to IRO–006–4. We also
Scheduling Working Group which is a of this standard. believe that the proper subject of INT–004–1 is
committee of both NERC and NAESB ‘‘Dynamic Interchange Transaction Modifications,’’
3. Manual Time Error Correction rather than ‘‘Reliability Coordination—Operations
participants. Planning.’’
20. We propose to update our 23. In the Version 001 standards for 28 Market flows are the calculated energy flows on

regulations at 18 CFR 38.2 to Manual Time Error Correction (WEQ– a specified Flowgate as a result of the dispatch of
incorporate by reference the Coordinate generating resources within a Market-Based
006), NAESB has made changes to Operating Entity’s market. NAESB defines
Interchange Standard WEQ–004, remove references to the Electric ‘‘Flowgate’’ as a ‘‘designated point of the
Version 001. However, we seek Reliability Council of Texas (ERCOT), to transmission system through which the Interchange
make minor corrections to the standards Distribution Calculator calculates the power flow
25 On achieving NAESB certification, NAESB will from Interchange Transactions.’’ The treatment of
for the Western Interconnection, and to the market flows of regional transmission
provide NERC with the names of Authorized CAs.
The Authorized CA may immediately display the make other minor modifications organizations compared with the treatment of
NAESB certification mark and will be authorized to including numbering the definitions. generation-to-load impacts of non-market entities as
claim compliance with NAESB WEQ PKI We propose to update our regulations at they relate to the use of TLRs has been addressed
Standards. All industry applications (e.g., OASIS) by the Commission in a number of cases, including
18 CFR 38.2 to incorporate by reference Order No. 693, FERC Stats. & Regs. ¶ 31,242 at P
secured under these PKI Standards must permit
access to any legitimate user that presents a valid this revised standard in lieu of the 987, Alliance Companies, 100 FERC ¶ 61,137 (2002)
electronic certificate issued by an Authorized CA. current version of this standard. and Midwest Independent Transmission System
26 The revised Coordinate Interchange standards Operator, Inc. and PJM Interconnection, L.L.C., 106
were designed to facilitate the transfer of electric 4. Inadvertent Interchange Payback FERC ¶ 61,251 (2004).
29 NAESB defines ‘‘Transmission Loading Relief’’
energy between entities responsible for balancing 24. In the Version 001 standards for
load and generation. Also, the revised Coordinate (TLR) as ‘‘[a] procedure used in the Eastern
Inadvertent Interchange Payback (WEQ– Interconnection to relieve potential or actual
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Interchange standards were intended to be


compatible with the NERC Interchange Scheduling 007), NAESB has made changes to loading on a Constrained Facility or Flowgate.’’
and Coordination Reliability Standards that the remove references to ERCOT and make Standard WEQ–008–0.40.
Commission approved in Order No. 693, Mandatory other minor modifications including 30 NAESB defines an ‘‘Interchange Transaction’’

Reliability Standards for the Bulk-Power System, 72 as ‘‘[a] transaction that crosses one or more
FR 16416 (Apr. 4, 2007), FERC Stats. & Regs. ¶
numbering the definitions. We propose Balancing Authorities’ boundaries. The planned
31,242, at P 961–65 (2007), order on reh’g, Order to update our regulations at 18 CFR 38.2 energy exchange between two adjacent Balancing
No. 693–A, 120 FERC ¶ 61,053 (2007). to incorporate by reference this revised Authorities.’’ Standard WEQ–008–0.19.

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examples; and an appendix specifying NERC TLR reliability standard 27. While we understand that NAESB
regional differences for PJM complement each other and can be and NERC have worked collaboratively
Interconnection, L.L.C./Midwest implemented together harmoniously. to coordinate their standard
Independent System Operator, Inc. and Therefore, we propose to update our development efforts, there appear to be
for Southwest Power Pool. regulations at 18 CFR 38.2 to several occasions in the TLR standards
26. The Commission seeks to ensure incorporate by reference Standard in which the definitions used by the two
that the NAESB WEQ TLR business WEQ–008. We invite comment on this depart. The following are some
practice standards and the proposed proposal. examples:

NAESB definition NERC definition 31

Balancing Authority Area: [a]n electrical system bounded by Inter- Balancing Authority Area: [t]he collection of generation, transmission,
connection (tie-line) metering and telemetry, where the Balancing Au- and loads within the metered boundaries of the Balancing Authority.
thority controls (either directly or by contract) generation to maintain The Balancing Authority maintains load-resource balance within this
its Interchange Schedule with other Balancing Authority Areas and area.
contributes to frequency regulation of the Interconnection.
Interchange Transaction: [a] transaction that crosses one or more Bal- Interchange Transaction: [a]n agreement to transfer energy from a sell-
ancing Authorities’ boundaries. The planned energy exchange be- er to a buyer that crosses one or more Balancing Authority Area
tween two adjacent Balancing Authorities. boundaries.
Reliability Coordinator: [a]n entity that provides the security assessment Reliability Coordinator: [t]he entity that is the highest level of authority
and emergency operations coordination for a group of Balancing Au- who is responsible for the reliable operation of the Bulk Electric Sys-
thorities, Transmission Service Providers, and Transmission Opera- tem, has the Wide Area view of the Bulk Electric System, and has
tors. the operating tools, processes and procedures, including the author-
ity to prevent or mitigate emergency operating situations in both
next-day analysis and real-time operations. The Reliability Coordi-
nator has the purview that is broad enough to enable the calculation
of Interconnection Reliability Operating Limits, which may be based
on the operating parameters of transmission systems beyond any
Transmission Operator’s vision.

28. There also appear to be some of the standards by requiring that the rule have been submitted to the Office
instances in various NAESB standards standards draw support from a broad of Management and Budget (OMB) for
where the same term is defined spectrum of all segments of the review under section 3507(d) of the
differently. For example, the definition industry. Moreover, since the industry Paperwork Reduction Act of 1995, 44
of Balancing Authority in Standard itself has to conduct business under U.S.C. 3507(d). The Commission solicits
WEQ–004–0.3 is not identical to the these standards, the Commission’s comments on the Commission’s need for
definition of that same term in Standard regulations should reflect those this information, whether the
WEQ–008–0.4. As the Commission standards that have the widest possible information will have practical utility,
stated in Order No. 676, the standards support. In section 12(d) of the National the accuracy of the provided burden
relating to reliability would be clearer if Technology Transfer and Advancement
estimates, ways to enhance the quality,
a single definition were used. Although Act of 1995, Congress affirmatively
utility, and clarity of the information to
in Order No. 676 the Commission requires federal agencies to use
technical standards developed by be collected, and any suggested methods
generally found that NERC should take for minimizing respondents’ burden,
the lead in defining reliability-related voluntary consensus standards
organizations, like NAESB, as a means including the use of automated
terms, 32 we recognize that good reasons information techniques. Respondents
may exist in certain cases for some to carry out policy objectives or
activities.34 subject to the filing requirements of this
differences in these terms. We therefore
30. Office of Management and Budget rule will not be penalized for failing to
request comment on whether the
Circular A–119 (section 11) (February respond to these collections of
differences in definitions are significant
10, 1998) provides that Federal information unless the collections of
and whether a single definition for
Agencies should publish a request for information display a valid OMB
reliability-related terms should be
comment in a NOPR when the agency Control number.
adopted in future standards.
is seeking to issue or revise a regulation 32. The following burden estimate is
III. Notice of Use of Voluntary proposing to adopt a voluntary
based on the projected costs for the
Consensus Standards consensus standard or a government-
industry to implement revisions to the
unique standard. In this NOPR, the
29. The NAESB WEQ standards were WEQ Standards currently incorporated
Commission is proposing to incorporate
adopted pursuant to NAESB’s by reference a voluntary consensus by reference into the Commission’s
consensus procedures.33 As the standard developed by the WEQ. regulations at 18 CFR 38.2 and to
Commission found in Order No. 676, implement the new standards adopted
adoption of consensus standards is IV. Information Collection Statement by NAESB that we propose here to
appropriate because the consensus 31. The following collection(s) of incorporate by reference.
process helps ensure the reasonableness information contained in this proposed
rwilkins on PROD1PC63 with PROPOSALS

31 Glossary of Terms Used in Reliability 32 Order No. 676 at P 40. 34 Public Law 104–113, 12(d), 110 Stat. 775

Standards, ftp://www.nerc.com/pub/sys/all_updl/ 33 This process is described in note 15, supra. (1996), 15 U.S.C. 272 note (1997).
standards/rs/Glossary_02Aug06.pdf.

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22854 Federal Register / Vol. 73, No. 82 / Monday, April 28, 2008 / Proposed Rules

Number of re-
Nunber of Hours per Total number
Data collection sponses per
respondents response of hours
respondent

FERC–516 ....................................................................................................... 176 1 6 1056


FERC–717 ....................................................................................................... 176 1 10 1760

Totals ............................................................................................................... ........................ ........................ ........................ 2816

Total Annual Hours for Collection: Information Collection Costs: The requirements. It has projected the
(Reporting and Recordkeeping, (if Commission seeks comments on the average annualized cost for all
appropriate)) = 2816 hours. costs to comply with these respondents to be the following: 35

FERC–516 FERC–717

Annualized Capital/Startup Costs ............................................................................................................................ $337,920 $563,200


Annualized Costs (Operations & Maintenance) ...................................................................................................... N/A

Total Annualized Costs .................................................................................................................................... 337,920 563,200

33. OMB regulations 36 require OMB practices will ensure that potential Office of the Executive Director, 888
to approve certain information customers of open access transmission First Street, NE., Washington, DC 20426,
collection requirements imposed by service receive access to information Tel: (202) 502–8415 / Fax: (202) 273–
agency rule. The Commission is that will enable them to obtain 0873, E-mail: michael.miller@ferc.gov.
submitting notification of this proposed transmission service on a non- 37. Comments concerning the
rule to OMB. These information discriminatory basis and will assist the
collection of information(s) and the
collections are mandatory requirements. Commission in maintaining a safe and
Title: Standards for Business Practices associated burden estimate(s), should be
reliable infrastructure and also will
and Communication Protocols for assure the reliability of the interstate sent to the contact listed above and to
Public Utilities (formerly Open Access transmission grid. The implementation the Office of Management and Budget,
Same Time Information System) (FERC– of these standards and regulations is Office of Information and Regulatory
717); Electric Rate Schedule Filings necessary to increase the efficiency of Affairs, Washington, DC 20503
(FERC–516). the wholesale electric power grid. [Attention: Desk Officer for the Federal
Action: Proposed collection. 34. The information collection Energy Regulatory Commission, phone:
OMB Control No.: 1902–0096 (FERC– requirements of this proposed rule are (202) 395–7856, fax: (202) 395–7285].
516); 1902–0173 (FERC–717). based on the transition from
V. Environmental Analysis
Respondents: Business or other for transactions being made under the
profit, (Public Utilities—Not applicable Commission’s existing business practice 38. The Commission is required to
to small businesses.) standards to conducting such prepare an Environmental Assessment
Frequency of Responses: One-time transactions under the proposed or an Environmental Impact Statement
implementation (business procedures, revisions to these standards and to for any action that may have a
capital/start-up). account for the burden associated with significant adverse effect on the human
Necessity of the Information: This the new standard(s) being proposed here
proposed rule, if implemented would environment.37 The Commission has
(i.e., WEQ–008 and WEQ–012). categorically excluded certain actions
upgrade the Commission’s current 35. Internal Review: The Commission
business practice and communication has reviewed the revised business from these requirements as not having a
standards. Specifically, these standards practice standards and has made a significant effect on the human
include several modifications to the preliminary determination that the environment.38 The actions proposed
existing business practice standards as proposed revisions are necessary to here fall within categorical exclusions
well as creating new standards to maintain consistency between the in the Commission’s regulations for
provide additional functionality for business practice standards and rules that are clarifying, corrective, or
OASIS transactions, transmission reliability standards on this subject. The procedural, for information gathering,
loading relief and public key Commission has assured itself, by analysis, and dissemination, and for
infrastructure. The standards will assist means of its internal review, that there sales, exchange, and transportation of
in providing greater security for is specific, objective support for the electric power that requires no
business transactions over the Internet, burden estimate associated with the construction of facilities.39 Therefore,
identify the business practices to be information requirements. an environmental assessment is
used to relieve potential or actual 36. Interested persons may obtain unnecessary and has not been prepared
loading on a constrained facility and information on the reporting in this NOPR.
facilitate the transfer of electric energy requirements by contacting the
between entities responsible for following: Federal Energy Regulatory
rwilkins on PROD1PC63 with PROPOSALS

balancing load and generation. These Commission, Attn: Michael Miller,


35 The total annualized costs for the information and support staff rates, $200 + $95 + $25=$320), (Dec. 17, 1987), FERC Stats. & Regs., Regulations
collection is $901,120. This number is reached by 2,816 hours × $320/hour= $901,120. Preambles 1986–1990 ¶30,783 (1987).
multiplying the total hours to prepare responses 36 5 CFR 1320.11. 38 18 CFR 380.4.

(2,816) by an hourly wage estimate of $320 (a 37 Order No. 486, Regulations Implementing the 39 See 18 CFR 380.4(a)(2)(ii), 380.4(a)(5),

composite estimate that includes legal, technical National Environmental Policy Act, 52 FR 47897 380.4(a)(27).

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Federal Register / Vol. 73, No. 82 / Monday, April 28, 2008 / Proposed Rules 22855

VI. Regulatory Flexibility Act most standard word processing formats I, Title 18, part 38 of the Code of Federal
Certification and commenters may attach additional Regulations, as follows:
39. The Regulatory Flexibility Act of files with supporting information in
certain other file formats. Commenters PART 38—BUSINESS PRACTICE
1980 (RFA) 40 generally requires a
filing electronically do not need to make STANDARDS AND COMMUNICATION
description and analysis of final rules
a paper filing. Commenters that are not PROTOCOLS FOR PUBLIC UTILITIES
that will have significant economic
impact on a substantial number of small able to file comments electronically 1. The authority citation for part 38
entities. The regulations proposed here must send an original and 14 copies of continues to read as follows:
impose requirements only on public their comments to: Federal Energy
Authority: 16 U.S.C. 791–825r, 2601–2645;
utilities, which are not small businesses, Regulatory Commission, Secretary of the 31 U.S.C. 9701; 42 U.S.C. 7101–7352.
and, these requirements are, in fact, Commission, 888 First Street, NE.,
Washington, DC 20426. 2. In § 38.2, paragraphs (a)(1) through
designed to benefit all customers,
43. All comments will be placed in (8) are revised, and paragraphs (a)(9)
including small businesses.
40. The Commission has followed the the Commission’s public files and may through (11) are added to read as
provisions of both the RFA and the be viewed, printed, or downloaded follows:
Paperwork Reduction Act on potential remotely as described in the Document § 38.2 Incorporation by reference of North
impact on small business and other Availability section below. Commenters American Energy Standards Board
small entities. Specifically, the RFA on this proposal are not required to Wholesale Electric Quadrant standards.
directs agencies to consider four serve copies of their comments on other (a) * * *
regulatory alternatives to be considered commenters. (1) Business Practices for Open
in a rulemaking to lessen the impact on VIII. Document Availability Access Same-Time Information Systems
small entities: Tiering or establishment (OASIS), Version 1.4 (WEQ–001,
of different compliance or reporting 44. In addition to publishing the full Version 001, October 31, 2007, with
requirements for small entities, text of this document in the Federal minor corrections applied on November
classification, consolidation, Register, the Commission provides all 16, 2007) with the exception of
clarification or simplification of interested persons an opportunity to Standards 001–0.1, 001–0.9 through
compliance and reporting requirements, view and/or print the contents of this 001–0.13, 001–1.0 through 001–1.8, and
performance rather than design document via the Internet through 001–9.7;
standards, and exemptions. As the FERC’s Home Page (http://www.ferc.gov) (2) Business Practices for Open
Commission originally stated in Order and in FERC’s Public Reference Room Access Same-Time Information Systems
No. 889, the OASIS regulations now during normal business hours (8:30 a.m. (OASIS) Standards & Communication
known as Standards for Business to 5 p.m. Eastern time) at 888 First Protocols, Version 1.4 (WEQ–002,
Practices and Communication Protocols Street, NE., Room 2A, Washington, DC Version 001, October 31, 2007, with
for Public Utilities, apply only to public 20426. minor corrections applied on November
utilities that own, operate, or control 45. From FERC’s Home Page on the 16, 2007);
transmission facilities subject to the Internet, this information is available in (3) Open Access Same-Time
Commission’s jurisdiction and should a the eLibrary. The full text of this Information Systems (OASIS) Data
small entity be subject to the document is available in the eLibrary Dictionary, Version 1.4 (WEQ–003,
Commission’s jurisdiction, it may file both in PDF and Microsoft Word format Version 001, October 31, 2007, with
for waiver of the requirements. This is for viewing, printing, and/or minor corrections applied on November
consistent with the exemption downloading. To access this document 16, 2007);
provisions of the RFA. Accordingly, in eLibrary, type the docket number (4) Coordinate Interchange (WEQ–
pursuant to section 605(b) of the RFA,41 excluding the last three digits of this 004, Version 001, October 31, 2007,
the Commission hereby certifies that the document in the docket number field.42 with minor corrections applied on
regulations proposed herein will not 46. User assistance is available for November 16, 2007);
have a significant adverse impact on a eLibrary and the FERC’s web site during (5) Area Control Error (ACE) Equation
substantial number of small entities. our normal business hours. For Special Cases (WEQ–005, Version 001,
assistance contact FERC Online Support October 31, 2007, with minor
VII. Comment Procedures at FERCOnlineSupport@ferc.gov or toll- corrections applied on November 16,
41. The Commission invites interested free at (866) 208–3676, or for TTY, 2007);
persons to submit comments on the contact (202) 502–8659. (6) Manual Time Error Correction
matters and issues proposed in this (WEQ–006, Version 001, October 31,
List of Subjects in 18 CFR Part 38
notice to be adopted, including any 2007, with minor corrections applied on
related matters or alternative proposals Conflict of interests, Electric power November 16, 2007);
that commenters may wish to discuss. plants, Electric utilities, Incorporation (7) Inadvertent Interchange Payback
Comments are due May 28, 2008. by reference, Reporting and (WEQ–007, Version 001, October 31,
Comments must refer to Docket No. recordkeeping requirements. 2007, with minor corrections applied on
RM05–5–005, and must include the By direction of the Commission. November 16, 2007);
commenter’s name, the organization Commissioner Wellinghoff concurring with
(8) Transmission Loading Relief—
they represent, if applicable, and their a separate statement attached. Eastern Interconnection (WEQ–008,
address. Comments may be filed either Kimberly D. Bose, Version 001, October 31, 2007, with
in electronic or paper format. minor corrections applied on November
Secretary.
42. Comments may be filed 16, 2007);
rwilkins on PROD1PC63 with PROPOSALS

In consideration of the foregoing, the (9) Gas/Electric Coordination (WEQ–


electronically via the eFiling link on the
Commission proposes to amend Chapter 011, Version 001, October 31, 2007,
Commission’s Web site at http://
www.ferc.gov. The Commission accepts 42 NAESB’s Dec. 26, 2007, submittal is also
with minor corrections applied on
available for viewing in eLibrary. The link to this November 16, 2007);
40 5 U.S.C. 601–612. file is as follows: http://elibrary.ferc.gov:0/idmws/ (10) Public Key Infrastructure (PKI)
41 5 U.S.C. 605(b). doc_info.asp?document_id=13566661. (WEQ–012, Version 001, October 31,

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22856 Federal Register / Vol. 73, No. 82 / Monday, April 28, 2008 / Proposed Rules

2007, with minor corrections applied on I write separately to note that in Order SUMMARY: Pursuant to section 215 of the
November 16, 2007); No. 890, the Commission determined Federal Power Act, the Federal Energy
(11) Business Practices for Open that many ancillary services may be Regulatory Commission proposes to
Access Same-Time Information Systems provided by generating units as well as approve six modified Reliability
(OASIS) Implementation Guide, Version other non-generation resources such as Standards submitted to the Commission
1.4 (WEQ–013, Version 001, October 31, demand resources where appropriate.45 for approval by the North American
2007, with minor corrections applied on Nothing in WEQ–001 precludes such a Electric Reliability Corporation (NERC).
November 16, 2007). role for demand resources, but the Five modified Reliability Standards
* * * * * definition of certain ancillary services in pertain to interchange scheduling and
the standard also does not specifically
Note: The following statement will not coordination and one pertains to
appear in the Code of Federal Regulations. reflect that possible role.
To remove any confusion between the transmission loading relief procedures.
pro forma tariff that the Commission In addition, the Commission proposes to
DEPARTMENT OF ENERGY approve NERC’s proposed
adopted in Order No. 890 and the
Federal Energy Regulatory Commission business practice standards for offering interpretations of five specific
[Docket No. RM05–5–005] and procuring ancillary services on requirements of Commission-approved
OASIS, I encourage NAESB and its Reliability Standards.
Standards for Business Practices and stakeholders to amend WEQ–001, as
Communication Protocols for Public DATES: Comments are due June 12, 2008.
soon as possible, to reflect that the
Utilities above-noted ancillary services may be ADDRESSES: You may submit comments,
April 21, 2008. provided by non-generation resources identified by docket number by any of
WELLINGHOFF, Commissioner, such as demand resources. This will the following methods:
concurring: facilitate implementation of this aspect • Agency Web Site: http://
Today, the Commission issues a of the pro forma OATT. www.ferc.gov. Documents created
For this reason, I concur with this
Notice of Proposed Rulemaking (NOPR) electronically using word processing
NOPR.
proposing to amend its regulations software should be filed in native
under the Federal Power Act 43 to Jon Wellinghoff, applications or print-to-PDF format and
incorporate by reference, among other Commissioner.
not in a scanned format.
matters, the latest version of certain [FR Doc. E8–9046 Filed 4–25–08; 8:45 am]
• Mail/Hand Delivery: Commenters
business practice standards concerning BILLING CODE 6717–01–P
the Open Access Same-Time unable to file comments electronically
Information Systems (OASIS) adopted must mail or hand deliver an original
by the Wholesale Electric Quadrant DEPARTMENT OF ENERGY and 14 copies of their comments to:
(WEQ) of the North American Energy Federal Energy Regulatory Commission,
Federal Energy Regulatory Secretary of the Commission, 888 First
Standards Board (NAESB).44 I
Commission Street, NE., Washington, DC 20426.
appreciate NAESB’s leadership and the
work of the industry in developing these FOR FURTHER INFORMATION CONTACT:
18 CFR Part 40
business practice standards.
One of the business practice standards [Docket No. RM08–7–000] Patrick Harwood (Technical
addressed in this NOPR, WEQ–001 Information), Office of Electric
Version 1.4, revises NAESB’s Business Modification of Interchange and Reliability, Federal Energy Regulatory
Practices for OASIS and, among other Transmission Loading Relief Reliability Commission, 888 First Street, NE.,
matters, addresses the information that Standards; and Electric Reliability Washington, DC 20426.
is to be posted on OASIS. This Organization Interpretation of Specific Christopher Daignault (Legal
information includes posting of Requirements of Four Reliability
Information), Office of the General
ancillary service offerings and prices Standards
Counsel, Federal Energy Regulatory
and the process for customers to procure Commission, 888 First Street, NE.,
Issued April 21, 2008.
ancillary services.
AGENCY: Federal Energy Regulatory Washington, DC 20426.
Commission, DOE.
43 16 U.S.C. 791a, et. seq. SUPPLEMENTARY INFORMATION:
44 Inaddition, the Commission proposes in this ACTION: Notice of proposed rulemaking.
NOPR to incorporate by reference NAESB’s new
business practices standards on transmission
45 See Order No. 890 at P 888 (addressing the
loading relief (TLR) for the Eastern Interconnection.
I note my concurrence to the separate, concurrently following ancillary services: Reactive Supply and
issued NOPR in Docket No. RM08–7–000, in which Voltage Control, Regulation and Frequency
the Commission proposes to approve, among other Response, Energy Imbalances, Spinning Reserves,
matters, modified Reliability Standard IRO–006–4 Supplemental Reserves, and Generator Imbalances
pertaining to TLR procedures to which the NAESB (Schedules 2, 3, 4, 5, 6, and 9, respectively, of the
business practice we address herein relates. pro forma OATT)).
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