Common use of NERC’s Compliance Proposal Clause in Contracts

NERC’s Compliance Proposal. NERC, in its compliance filing, states that its proposed Uniform Compliance Program, at section 3.1, describes the procedures each Regional Entity will be required to use in carrying out a compliance audit.33 The procedures state that the guidelines for conducting compliance will be established for those reliability standards included in the audit and that such guidelines will be consistent with accepted auditing guidelines as approved by NERC and consistent with GAO Standards. NERC adds that because it must operate under the jurisdiction of Canadian governmental authorities and, eventually, Mexican governmental authorities, it will also consider standards established by these authorities in developing audit guidelines and training materials.