Revisions to Electric Reliability Organization Definition of Bulk Electric System and Rules of Procedure

The Commission denies rehearing in part, grants rehearing in part and otherwise reaffirms its determinations in Order No. 773. In addition, the Commission clarifies certain provisions of the Final Rule. Order No. 773 approved the modifications to the currently- effective definition of "bulk electric system" developed by the North American Electric Reliability Corporation (NERC), the Commission- certified Electric Reliability Organization. Order No. 773 also approved NERC's revisions to its Rules of Procedure, which create an exception process to add elements to, or remove elements from, the bulk electric system on a case-by-case basis and established a process pursuant to which an entity can seek a determination by the Commission whether facilities are "used in local distribution" as set forth in the Federal Power Act.