What is a NERC audit?
Compliance Audits provide objective analysis that is used to facilitate decision making and improve performance and operations in Registered Entities, and the reliability of the Bulk Power System (BPS). The three goals of NERC Compliance Audits are: quality, consistency, and credibility
NERC audits can be important to the reputation and the valuation of a power plant and the credibility of its management team.
Why do you need to prepare for an audit?
NERC Fines can be up to $1M per day, per violation. Audit failures mean that NERC can require extensive remediation to be done to bring these systems back into compliance. This can result in lost revenues and a productivity hit. NERC is an international regulatory body (North America – USA, Canada, Mexico) whose goal is to reduce risks that threaten power grid infrastructures. NERC allies with business stakeholders to develop standards for power systems, as well as monitoring compliance and enforcing reliability of these standards.
A NERC violation is also public information. That means other organizations, including prospective investors and acquirers will have access to the information.
How often do NERC audits take place?
According to NERC, each Regional Entity Compliance Monitoring and Enforcement Program shall be audited at least once every five years. At least sixty (60) days prior to the on-site audit, the NERC ATL shall send a notification of intent to audit letter to the CEO of the Regional Entity to be audited, containing the scope of the audit and key audit dates; and shall send to the audited Regional Entity: (i) pre-audit questionnaire(s), and (ii) request(s) for information. The audited Regional Entity returns a complete questionnaire to NERC, along with the requested reports and other documentation, thirty (30) days prior to the on-site audit.
How can Certrec help?
Certrec is the leading provider of NERC regulatory compliance programs and SaaS apps for the energy industry. 90% of the nuclear plants trust us today. Our complete NERC compliance program costs a fraction of a full-time equivalent. We have a team of 50+ members who delivered zero fines in 350+ client audits.
For tips on how to prepare for a NERC audit, click here.
