What does the phrase "self-reporting" mean in the context of NERC compliance?

In the context of NERC compliance, the phrase "self-reporting" refers specifically to entities taking the initiative to report to NERC any compliance violations they have identified within their own operations. This is an important aspect of the regulatory framework that promotes transparency and accountability.

By self-reporting, entities demonstrate their commitment to maintaining high operational standards and adhering to compliance requirements. This practice is beneficial not only for the entity itself, as it can mitigate potential penalties and foster a culture of compliance, but also for the industry as a whole, as it helps NERC to monitor and enhance the overall reliability of the electric grid.

The other options address different actions that entities might undertake but do not align with the specific definition of self-reporting. Evaluating performance metrics and conducting audits are internal processes focused on assessing efficiency and compliance, while submitting applications for new projects involves regulatory procedures but does not pertain to reporting compliance violations.