In terms of compliance review, what is a primary function of NERC?

The primary function of NERC, which stands for the North American Electric Reliability Corporation, centers on monitoring adherence to reliability standards. NERC's main role is to ensure the reliability and security of the bulk power system in North America. This involves developing and enforcing reliability standards that electricity providers must follow to maintain a stable and reliable power system.

By monitoring compliance with these standards, NERC helps to prevent outages and ensure that the electrical grid operates efficiently and safely. This function is crucial for maintaining the trust of stakeholders—including utilities, regulators, and consumers—in the reliable supply of electric power. It positions NERC as a key entity in safeguarding the electrical infrastructure, which is vital for both economic stability and public safety.

While cost reduction, competition, and consumer education are important aspects within the energy sector, they do not define the core responsibilities of NERC. Instead, the organization's focus on reliability standards is singularly important to mitigate risks and enhance the overall performance of the electric grid.