AICPA SOC Service Organizations - Certrec

Duke Energy Renewable Services’ (DERS) NOTWIN001 Noncompliant with MOD-025-2 R1; R1.2 Resulting in $20,000 Penalty

Summary of NERC Penalties









Quarter 4 - December 2023

Duke Energy Renewable Services (DERS)

SERC's Regulations

MOD-025-2 R1; R1.2

Duke Energy Renewable Services (DERS), a leading renewable energy services provider, faced a compliance issue stemming from a deficient fleet-wide management approach to MOD-025. They failed to submit a completed Attachment 2, or a form containing the same information, to its Transmission Planner within 90 calendar days of the date the data was recorded for a staged test thus violating the requirements of MOD-025-2 R1; R1.2 which are mandatory parts of SERC's regulations.


NOTWIN001 notified SERC that it was noncompliant with MOD-025-2 R1; R1.2. NOTWIN001 failed to submit a completed Attachment 2, or a form containing the same information, to its Transmission Planner (TP) within 90 calendar days of the date the data was recorded for a staged test.  On October 6, 2022, while gathering historical MOD-025 compliance evidence for an upcoming audit, Duke Energy Renewable Services’ (DERS) NERC Compliance discovered it did not submit the Attachment 2 information to its TP, as required. On October 19, 2021, NOTWIN001 performed the required five-year staged verification of its Real Power Capability. As such, it was required to submit the Attachment 2 information to the TP on or before January 17, 2022. However, NOTWIN001 did not submit the results to the TP until December 19, 2022, 426 days after the staged test.  During the extent of condition review, an additional six registered entities within DERS also did not meet the compliance requirements. This fleet-wide issue ultimately resulted in a penalty of $20,000.

For the extent-of-condition (EOC) assessment, DERS reviewed MOD-025-2 documentation across the DERS fleet from 2016 through March 2023. DERS confirmed initial Real Power verification test dates and secondary test dates, where applicable, for all MRRE Group #15b Generator Owners, and verified whether submission of the verification data occurred within 90 days of the Real Power verification test. The EOC identified six additional registered entities that did not meet the compliance requirements, all of which were individually self-reported to SERC. As part of its mitigation, DERS will also conduct an Enterprise-wide EOC on evidence submitted to TPs/Planning Coordinators (PCs) including registration date and implementation date information and report any additional findings to SERC.

The cause of this noncompliance was an inadequate fleet-wide compliance management approach to MOD-025. Personnel responsible for the oversight of the compliance activities lacked training and awareness on MOD-025, which resulted in the deficient procedures, unmaintained controls, and inadequate compliance training across multiple Generator Owners. The MOD-025 procedure did not have clearly defined roles and responsibilities for all groups involved in producing and submitting MOD‑025 model data. Additionally, there was a deficient compliance tracking tool that included a narrative reminding personnel of upcoming submission deadlines and the requirement to notify the TP, but did not include a follow-up method to make sure all compliance activities were completed. This resulted in the tool being effective for performing the MOD-025 testing, but deficient in ensuring personnel communicated those test results to the TP within 90 days.

This noncompliance started on January 18, 2022, when NOTWIN001 exceeded the 90-calendar day submission requirement, and ended on December 19, 2022, when NOTWIN001 submitted the results to the TP.


SERC reviewed NOTWIN00’s internal compliance program and considered it to be a neutral factor in the penalty determination due to a lack of annual reviews of the program and lack of training for mandatory compliance requirements. NOTWIN001 was assessed a $20,000 penalty.

About Certrec:
Certrec is a leading provider of regulatory compliance solutions for the energy industry with the mission of helping ensure a stable, reliable, bulk electric supply. Since 1988, Certrec’s SaaS applications and consulting expertise have helped hundreds of power-generating facilities manage their regulatory compliance and reduce their risks.

Certrec’s engineers and business teams bring a cumulative 1,500 years of working experience in regulatory areas of compliance, engineering, and operations, including nuclear, fossil, solar, wind facilities, and other Registered Entities generation and transmission.

Certrec has helped more than 120 generating facilities establish and maintain NERC Compliance Programs. We manage the entire NERC compliance program for 60+ registered entities in the US and Canada that trust us to decrease their regulatory and reputational risk. Certrec is ISO/IEC 27001:2013 certified and has successfully completed annual SOC 2 Type 2 examinations.

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