Compliance Monitoring

Compliance monitoring is accomplished through several compliance monitoring methods:  Audits, Spot Checks, Self-Certifications, Compliance Investigations, Self-Reports, Periodic Data Submittals, and Complaints. Multi-Region Registered Entities (MRRE) are subject to monitoring based on collaboration between the Lead Regional Entity (LRE) and the Affected Regional Entity (ARE). More information can be found on the Coordinated Oversight (MRRE) page.

With the implementation of the Risk-based Compliance Monitoring and Enforcement Program, SERC determines the type and frequency of the compliance monitoring tools (i.e., off-site or on-site audits, spot checks or self-certifications) that are warranted for a particular registered entity based on reliability risks. The determination of the appropriate CMEP tools will be adjusted, as needed, within a given implementation year.

The Compliance Oversight Plan (COP) tailors compliance monitoring activities, such as Compliance Audits, Spot Checks, and Self-Certifications, based on entity-specific risks and associated NERC Reliability Standards. The COP is dynamic, which will require updating from time to time, as it identifies and prioritizes risks considering risk mitigation activities, such as an entity’s internal controls, and determines the interval of monitoring and depth of testing. The COP considers Risk Elements, IRA results, and other risk inputs and regional considerations. Considerations may include, but are not limited to, the following:

  • ERO Enterprise Risk Elements, identified in the Annual ERO Enterprise CMEP Implementation Plan
  • Regional Risk Elements identified by the Compliance Enforcement Authority (CEA)
  • Regional Risk Assessments conducted by the CEA
  • NERC Reliability Issues Steering Committee (RISC)
  • Event Analysis
  • NERC Alerts
  • Evaluations of internal controls and mitigating activities
  • Additional qualitative and performance related factors (e.g. compliance history)

Additional documents about the annual Compliance Monitoring program, including the SERC Annual Implementation Plan and Filing Due Dates matrix,are listed in the Documents section.

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