On September 15, 2011, the Federal Energy Regulatory Commission (“FERC”) issued a Notice of Proposed Rulemaking (“NOPR”) in which it proposed approving Reliability Standard PRC-023-2 – Transmission Relay Loadability. PRC-023-2 requires transmission owners, generator owners, and distribution providers to set relays according to specific criteria in order to ensure that the relays reliably detect and protect the electric network from fault conditions, but do not limit transmission loadability or interfere with system operators’ ability to protect system reliability. This NOPR also proposed changes that would (1) extend the Reliability Standard’s coverage to communication-assisted supervising elements and out-of-step blocking schemes; (2) require that a uniform test is applied consistently by planning coordinators utilizing their judgment to identify sub-200 kV circuits to which the Reliability Standard must apply; (3) require that load responsive transformer fault protection relays be set to reflect the transformer’s mechanical withstand capability; and (4) ensure communication regarding the ratings used to verify transmission facility relay loadability.