Meeting Minutes Operating Committee March 10–11, 2015 Hyatt Regency Jacksonville Riverfront Jacksonville, FL A regular meeting of the NERC Operating Committee (OC) was held on March 10−11, 2015, in Jacksonville, Florida. The meeting agenda and the attendance list are affixed as Exhibits A and B, respectively; and individual statements and minority opinions as Exhibits C and D, respectively. The meeting presentations are posted in a separate file at OC Presentations. OC Chair Jim Castle convened the meeting at 1:00 p.m. EDT. Secretary Larry Kezele announced that a quorum was present, read the Notice of Public Meeting and referred the committee to the NERC Antitrust Compliance Guidelines. Chair’s Opening Remarks Chair Castle welcomed the OC to Jacksonville and noted that the OC has another full agenda of material to consider and debate. He drew the OC’s attention to the following agenda items:

1. ERSTF Status Report

2. Generator Loss of Communications Reliability Guideline

3. Operating Committee Strategic Plan

4. Eastern Interconnection Frequency Response Initiative and NERC’s Industry Advisory Generator Governor Frequency Response

Consent Agenda By consent, the committee approved the minutes of the December 9–10, 2014 meeting. Vice Chair’s Remarks Vice Chair Case summarized his verbal report of OC activities to the Board at its February 11, 2015 meeting. He highlighted:

1. Essential Reliability Services Task Force – The OC approved four measures identified in the ERSTF Phase 2 document.

Meeting Highlights 1. Approved the revised OC Strategic Plan 2015-2019. 2. Approved the revised SPP Reliability Coordinator

Reliability Plan, dated June 1, 2015. 3. Approved posting the revised Event Analysis Process for

industry comment. 4. Endorsed ERSTF Measure 7 (Reactive Capability on the

System). 5. Endorsed revised M-16 (Element Availability and

Unavailability Percentage).

2. Lesson Learned – The OC received a report from Northeast Utilities regarding a transmission event that resulted in the loss of all transmission lines at the Millstone plant, which in turn resulted in the tripping of Millstone units 2 and 3. This was a loss of approximately 2,100 MW of generation.

3. AC Substation Equipment Task Force – The OC endorsed the ACSETF final report, subject to refining the recommendations into actionable recommendations.

OC Action Item Review Chair Castle reviewed the list of action items and reported that several have been completed or are on the agenda for this meeting. The revised action item list is attached as Exhibit E. OC and Subcommittee Work Plans Chair Castle reviewed the draft OC work plan, which was, from a format standpoint, based upon the work plan developed by the Personnel Subcommittee. The work plan also includes preliminary work plans from the Resources, the Operating Reliability, and the Events Analysis subcommittees. The work plan will allow the OC and its subcommittee to focus their efforts on achieving their goals in support of the OC’s strategic plan. The work plan will also keep the committee focused on documents (e.g., reliability guidelines and reference documents) that are in need of review in accordance with the requirements of the OC Charter. Chair Castle also informed the OC that he charged the ORS to review and enhance the annual process of transitioning the Time Error Monitor responsibilities between reliability coordinators, and place the milestones as a standing item on the ORS annual plan. Further, Chair Castle also informed the OC that he charged the RS to review the usefulness of the currently undocumented monthly report that has historically been prepared by the Time Error Monitor. If the monthly report is useful, the RS needs to document its use, format and desired information so the incoming Time Error Monitor can properly prepare to develop a good report. Operating Reliability Subcommittee (ORS) ORS Chair Joel Wise summarized the subcommittee’s status report, which was included in the OC agenda packet. He highlighted the subcommittee’s work 1) with the IDC Tools Association on the Parallel Flow Visualization project, 2) on geomagnetic event reporting, 3) effort to revise the Time Monitoring Reference Document, and 4) regarding the future of the Data Exchange Working Group.

SPP Reliability Coordinator Reliability Plan – Bruce Rew, SPP, provided an overview of the SPP Reliability Coordinator Reliability Plan (Presentation 6.a.i). The revised reliability plan essentially adds North and South Dakota to the SPP reliability footprint. Following a brief discussion, Todd Lucas moved to approve the revised SPP Reliability Coordinator Reliability Plan, dated June 1, 2015. The committee approved the motion.

Eastern Interconnection Data Sharing Network – Rich Mandes provided a summary of the EIDSN’s effort to implement EInet, which is intended to replace NERCnet (Presentation 6.a.ii). The mission of EIDSN is to establish a network by which operational data can be shared securely, consistently and efficiently among the Eastern Interconnection reliability coordinators and other appropriate entities. EInet is scheduled to be in service in May 2015. Mr. Mandes noted that NERC has indicated that it expects to turn off NERCnet on June 30, 2015.

Operating Committee Minutes – March 10-11, 2015 2

Resources Subcommittee (RS) RS Chair Gerry Beckerle provided an overview of subcommittee activities, including:

1. Eastern Interconnection Frequency Response Initiative

2. RS Support of BAL-003-1 Implementation Effort Event Analysis Subcommittee (EAS) EAS Vice Chair Hassan Hamdar provided an overview of subcommittee activities (Presentation 6.c). He noted that four lessons learned have been released thus far in 2015 and he reported that the EMS Working Group is preparing for the fall 2015 EMS conference. Vice Chair Hamdar reported that the EAS is developing a revision to the Event Analysis Process. Following a brief discussion of the proposed revisions, Jerry Rust moved to approve posting the revised Event Analysis Process for industry comment. The committee approved the motion. Vice Chair Hassan Hamdar also reviewed the four lessons learned that have been published to date in 2015 (Presentation 5.c.i). These lessons learned are posted at 2015 Lessons Learned. Personnel Subcommittee (PS) Laurel Hennebury, chair of the PS, reviewed the subcommittee’s status report drawing the OC’s attention to the Future Initiatives/Deliverables section of the status report. Chair Hennebury also reviewed the PS’s 2015 initiatives and deliverables which constitutes its 2015 work plan. Reliability Issues Steering Committee (RISC) Vice Chair Case provided a brief overview of RISC activities and informed the OC that the RISC is aware that the committee is taking steps to formalize an annual work plan. Rhetorically he asked if the OC is helping to move the needle on the reliability gauge. The RISC is sponsoring the annual Reliability Summit in Washington, DC this summer. One topic of discussion at the summit will be resiliency. Operating Reliability Coordination Agreement (ORCA) Implementation Chair Castle noted that the ORCA is expiring in April 2015, however, a new ORCA has been approved. The new ORCA has a one-year term. Essential Reliability Services Task Force (ERSTF) Ken McIntyre, co-chair of the ERSTF, summarized the task force’s recent activities (Presentation 8.b). The draft ERSTF Measures Framework Report, dated January 2015, is posted at Draft ERSTF Framework Report. While the OC approved four measures at its December 2014 meeting, the ERSTF continues work on five additional measures. He reviewed Measure 7 (Reactive Capability on the System). Measure 7 tracks rotating and non-rotating dynamic reactive capability per total megawatt load on the system at a balancing authority level for various areas at critical load levels (e.g., peak, shoulder and light load). Following a brief discussion, Jerry Mosier moved to endorse Measure 7 (Reactive Capability on the System). The committee

Operating Committee Minutes – March 10-11, 2015 3

approved the motion. The ERSTF anticipates presenting the draft ERSTF Measures Framework Report to the OC at its June 2015 meeting. Performance Analysis Subcommittee (PAS) PAS Chair Melinda Montgomery provided an overview of PAS activities (Presentation 8.c). She presented the proposed schedule for the development of the 2015 State of Reliability Report. The PAS and NERC staff are drafting the report and Chair Montgomery asked for volunteers from the OC to review and comment on the draft report. Chair Castle tasked Hassan Hamdar, Doug Peterchuck and Todd Lucas with reviewing the draft SOR. Chair Montgomery reviewed a revision to ALR6-15 (Element Availability and Unavailability Percentage). She noted that ALR6-15 is now being referred to as M-16. Richard Kinas moved to endorse revised M-16 (Element Availability and Unavailability Percentage). The committee approved the motion. Chair Montgomery reviewed draft compliance metrics CP-1 (Risk Focus) and CP-2 (Impact Focus). CP-1 is a quarterly count of newly reported potential violations initially determined by compliance enforcement staff at the regions to be a serious or likely serious risk violation. CP-2 is a quarterly count of the number of newly reported compliance exceptions or potential violations by impact tier level. She reviewed the CP-2 data collection effort potentially needed to support this metric. She also reported that the Compliance Metric White Paper was reviewed and finalized by the PAS and that the PAS is asking for OC endorsement of the white paper. Following her review of the white paper, she addressed each of the paper’s four recommendations. Following a brief discussion, Chair Castle asked for more time for the OC to fully grasp the concepts being presented in the white paper and the compliance metrics. Chair Montgomery will be available at the committee’s June 2015 meeting to further address this topic. Reliability Guideline: Generating Unit Operations during Complete Loss of Communications Peter Brandien provided a summary of the comments received during the posting of the Reliability Guideline: Generating Unit Operations during Complete Loss of Communications (Presentation 8.e). He noted that 19 entities provided comments and that there were approximately 180 comments submitted, although many of those comments addressed grammatical corrections. The task group reviewing the comments (Peter Brandien, Ken McIntyre, Jerry Mosier and Pierre Paquet) will continue developing a response to the comments and a revision to the reliability guideline for presentation to the OC at its June 2015 meeting. Approving a Field Test Associated with a Reliability Standard Chair Castle reported that the Standards Committees is drafting a revision to the Standard Process Manual (SPM) and to the Standards Committee Charter to better identify the role of the Technical Committees in reviewing, approving and stopping field tests. The SPM is part of NERC’s Rules of Procedure, therefore, the OC’s role in approving, monitoring and terminating a field test will be more clearly defined.

Operating Committee Minutes – March 10-11, 2015 4

Transmission and Frequency Performance with High Levels of Renewables Nick Miller, General Electric, reviewed the key findings of the recently completed National Renewable Energy Laboratory (NREL) study Transient Stability and Frequency Response of the US Western Interconnection under conditions of High Wind and Solar Generation (See Study’s Executive Summary) (Presentation 8.j). The key points addressed in the study include:

1. What – Stability, for the first minute after a big disturbance, is critically important limitation in the Western Interconnection.

2. Why – Widespread worry that lots of wind and solar, especially combined with lots of coal retirements will irreparably disrupt grid stability. (In the context of ERSTF, will essential reliability services be affected (i.e., depleted, altered or enhanced)?)

3. What Study Determined – The Western Interconnection can be made to work well with both high wind and solar and substantial coal displacement, using good, established planning and engineering practice and commercially available technologies.

Mr. Miller reviewed the frequency response resulting from several generation scenarios (e.g., high renewables or distributed generation). In conclusion, system-wide frequency response can be maintained with high levels of wind and solar generation. The transient stability analysis illustrated that heavy power transfers affects frequency response more than high wind and solar. Operating Committee Strategic Plan 2015-2019 Alan Bern summarized proposed revisions to the OC’s existing Strategic Plan (Presentation 8.d). The OC Strategic Plan task team began by reviewing the ERO Enterprise Strategic Plan and the RISC priorities. Mr. Bern reviewed each of the four OC goals identified in the revised strategic plan and their associated action plans. Following this review, the OC formed four breakout sessions, one each to, in more depth, discuss a specific goal and its associated action plan. At the conclusion of the breakout session, each breakout group provided an overview of its conclusions and recommendations for consideration. Adjourn and Reconvene The committee adjourned at 5:16 p.m. EDT and reconvened the following morning at 8:00 a.m. EDT. Operating Committee Strategic Plan 2015-2019 (cont’d) Based on the task team’s review of the recommendations provided during the breakout sessions, Alan Bern presented a revised OC Strategic Plan (Exhibit F). Todd Lucas moved to approve the revised OC Strategic Plan 2015-2019. The committee approved the motion. ERO Enterprise Data Use and Administration Dr. James Merlo, Senior Director – Reliability Risk Management, summarized the strategic vision of the ERO Enterprise reporting and data warehouse (Presentation 8.g). The core focus for 2015 will be on master data and line of business inventories, data definitions and standards, data conformation and integrity assurance and data collection improvements and the development of a master data model. Dr. Merlo presented the following problem statement: Legacy application architecture led to vertical data silos, which

Operating Committee Minutes – March 10-11, 2015 5

resulted in that fact that data is difficult to access, difficult to integrate across the enterprise and of limited enterprise analytical value. He also presented a pictorial overview of the current state of NERC’s data configuration. Critique of 2014 Frequency Response Annual Analysis Report Bob Cummings, Director – Reliability Initiatives and System Analysis, explained that his original intent was to have the OC review and endorse the 2014 Frequency Response Annual Analysis in September 2014 (Presentation 8.h). However, while analyzing the data for the 2014 report, it was noted that data skews started occurring in July 2013. While some of this data was used in the 2013 report the data discrepancies became more pronounced in the 2014 analysis. To address these data issues in the future and to prevent them from reoccurring, Mr. Cummings recommends the creation of a dependable, commercial grade data source and frequency data calculation to ensure quality of data. The committee asked what is driving the preparation of the annual frequency response analysis reports. Is it NERC staff, NERC compliance or FERC? Mr. Cummings responded that the Interconnection Frequency Response Obligation is required by FERC, however, the report is primarily a NERC staff report that is filed with FERC for informational purposes. The RS and its Frequency Working Group, as subject matter experts, weigh in on the report’s development. NERC FAC-003 Vegetation Management Research Work with EPRI Bob Cummings, Director – Reliability Initiatives and System Analysis, provided an overview of the FAC-003 research project that addressed the validation testing of minimum vegetation clearance distances (Presentation 8.p). In March 2013, FERC Order 777 directed NERC to conduct testing to support appropriate minimum vegetation clearance distances. The FERC order led to a NERC and Electric Power Research Institute (EPRI) project to determine MVCDs. Project testing was completed in October 2014. FAC-003-3 uses a gap factor of 1.3, while the results of this project indicate that a gap factor of 1.0 may be more appropriate. Use of a gap factor of 1.0 would increase the MCVD by one foot at 230 kV and by 3.4 feet at 765 kV. Mr. Cummings noted that NERC would be informing industry of the results of the project by issuing a NERC alert and by NERC sponsored webinars. The Research Project report is expected to be available on May 1, 2015. Vice Chair Case and Darrel Yohnk volunteered to review the report when it becomes available. The report will also be filed with FERC. Eastern Interconnection Frequency Response Initiative Troy Blalock, vice chair of the Resources Subcommittee, provided a status report of the Eastern Interconnection Frequency Response Initiative (Presentation 8.i). On February 5, 2015, NERC issued an Industry Advisory – Generator Governor Frequency Response. The purpose of the Advisory is to alert the industry of recommended governor dead band and droop settings that will enable generators to provide better frequency response to support the reliable operation of the bulk electric system. Since issuance of the Advisory, representatives of NERC staff and the RS have met with several original equipment manufacturers to review and discuss its content. Vice Chair Blalock reviewed what has been learned since the Advisory was issued. In response to the Advisory, the OEMs have distributed technical guidance to their customers describing what actions that can be taken to improve a unit’s frequency response. He also noted

Operating Committee Minutes – March 10-11, 2015 6

that NERC staff and the RS will host two webinars in early April 2015 to further discuss industry response to the Advisory. GridEx III Bill Lawrence, Senior Manager of CIP Awareness, briefed the OC on activities being undertaken by CIPC’s Grid Exercise Working Group to support Grid Exercise III (Presentation 8.k). He noted that most reliability coordinator organizations are participating in the exercise as an active participant. However, many other entities are participating as an observing organization. The structure of this exercise will be reliability coordinator centric (i.e., planning details and exercise injects are transmitted to the RC for tailoring and distribution to entities in their footprint). On an exception basis, the planning details and exercise injects will be transmitted to up to 50 individual entities. Mr. Lawrence also reviewed the timeline of activities leading up to the November 18-19, 2015 GridEx III exercise. AC Substation Equipment Task Force (ACSETF) Michael Lombardi, chair of the ACSETF, provided an overview of the task force’s prioritization of the recommendations presented in its final report (Presentation 8.l). At their December 2014 meetings, the OC and Planning Committee approved the ACSETF report and directed the task force to identify the high priority recommendations, refine the high priority recommendations to be actionable and to provide a status report on the high priority recommendations at the March 2015 meetings. Chair Lombardi reviewed each recommendation and provided a refined recommendation. He also noted the current status of the recommendation. The slide at right provides an example of the process used by the task force in this effort related to the recommendation that addressed Bus Configuration. Note that the status of this recommendation is “Complete.” The medium and low priority recommendations will either be tabled at this time or revisited or reconsidered based on the results and information obtained through implementation of high priority items. Finally, Chair Lombardi informed the OC that at the conclusion of his report to the Planning Committee, the PC terminated the ACSETF. Department of Energy Research and Development Program Status Report Dr. Emmanuel Taylor, Department of Energy, reviewed DOE’s goals and objectives of its Research and Development program regarding operating reliability (Presentation 8.m). DOE’s Energy Infrastructure Modeling and Analysis (EIMA) Division within its Office of Electricity Delivery and Energy Reliability drives electric grid modernization by improving energy system reliability, security and resiliency. Dr. Taylor noted that the EIMA Division addresses dynamics, complexity, and uncertainty, through measurement, modeling,

Operating Committee Minutes – March 10-11, 2015 7

and risk assessment to improve energy infrastructure decision making. He highlighted the following research project: Frequency Responsive Demand – Provide a framework to facilitate large-scale deployment of frequency responsive end-use devices. Test and validate control strategy using large-scale simulations and field demonstrations. The significance of this project is that it allows for load side frequency control, which may be helpful under conditions of high renewable penetration. Vice Chair Case asked if DOE has done any research on system operator cognitive overload. He noted that the Personnel Subcommittee has discussed some methods used to assess cognitive overload. Dr. Taylor will review this subject area with others at DOE. Project 2014-03 (Revisions to TOP/IRO Reliability Standards) David Souder, chair of the TOP/IRO Reliability Standards SDT, provided a status and timeline update of Project 2014-03 (IRO/TOP standards), which is scheduled to be filed with FERC in March 2015 (Presentation 8.n). The implementation timeline of Project 2014-03 is dependent on FERC approving COM-001-2 and the Operating Instruction definition. Individual Standards become effective 9-12 months after FERC approval. Integration of Variable Generation Task Force Final Summary Report Status Update (IVGTF) Noha Abdel-Karim, Senior Engineer, Reliability Assessment, reported that the draft IVGTF Final Report recognizes the accomplishments of the twelve IVGTF efforts that address broader and detailed aspects of integration of large amounts of variable generation (Presentation 8.o). Upon acceptance of the IVGTF Final Report by the OC and PC, the IVGTF’s work will be complete and the task force can be disbanded. The report will address transitioning the IVGTF’s recommendations to the LTRA, to special assessments, to NERC staff and to the ERSTF. The final report is expected to be available for OC and PC review at their June 2015 meetings. Next Meeting The next meeting of the Operating Committee will be on June 9–10, 2015 in Atlanta, Georgia. Adjourn There being no further business before the Operating Committee, Chair Castle adjourned the meeting on Wednesday, March 11, 2015 at 10:55 a.m. EDT.

Larry Kezele Larry Kezele Secretary

Operating Committee Minutes – March 10-11, 2015 8

Agenda Operating Committee March 10, 2015 | 1:00–5:00 p.m. (EDT) March 11, 2015 | 8:00 a.m.–Noon (EDT)

Hyatt Regency Jacksonville Riverfront 225 East Coastline Drive Jacksonville, Florida

Introductions and Chair’s Opening Remarks

NERC Antitrust Compliance Guidelines and Public Announcement

Agenda

1. Administrative - Secretary

a. Arrangements

i. Safety Briefing and Identification of Exits

b. Announcement of Quorum

c. Background Information

i. Operating Committee (OC) Membership

ii. OC Roster*

iii. OC Organizational Chart

iv. OC Charter

v. Parliamentary Procedures*

vi. Participant Conduct Policy

d. Future Meetings

2015 Meeting Dates Time Location Hotel June 9, 2015

June 10, 2015 1:00 to 5:00 p.m. (Eastern) 8:00 a.m. to Noon (Eastern) Atlanta, GA Westin Buckhead

September 15, 2015 September 16, 2015

1:00 to 5:00 p.m. (Eastern) 8:00 a.m. to Noon (Eastern) TBD TBD

December 15, 2015 December 16, 2015

1:00 to 5:00 p.m. (Eastern) 8:00 a.m. to Noon (Eastern) Atlanta, GA Westin Buckhead

2. Consent Agenda – Chair Castle

a. December 9–10, 2014 Draft OC Meeting Minutes*

Exhibit A

Action: Approve Objective: Approve consent agenda. Presentation: No

Duration: 5 minutes Background Items: December 9-10, 2014 OC Meeting Minutes

3. Vice Chair’s Remarks

a. Report on February 11, 2015 Member Representatives Committee Meeting and the February 12, 2014 Board of Trustees Meeting*

4. OC Action Items Review* – Chair Castle

Action: None Objective: Review and discuss open action items from prior OC meetings.

OC Strategic Plan Goal: None, this is an administrative item. Background: The OC Action Item list will be reviewed near the beginning of each OC meeting, with the intent to reach prompt resolution. Presentation: No

Duration: 10 minutes Background Items: Revised OC Action Item List

Notes:

5. OC and Subcommittee Work Plans – Chair Castle Action: Approve Objective: Review and discuss the need to create a work

plan for the OC and each of its subcommittees. OC Strategic Plan Goal: None, this is an administrative item. Action Item Number: None Background: The OC leadership team believes that it would be a good idea for the OC and its subcommittees to create annual work plans. However, the structure and content of those work plans remains under consideration. The Personnel Subcommittee created a work plan which is included as part of its report to the OC for this meeting (see OC agenda item 6.d). Some of the topics or items that could be included in a work plan include: periodic reviews of Reliability Plans, expected publishing of Lessons Learned and event reports, periodic reviews of reliability guidelines and reference documents, time monitor transitions and the publication of the annual frequency response analysis report. Presentation: No

Duration: 25 minutes Background Items: See OC agenda item 6.d for an example of a work plan developed by the Personnel Subcommittee

Notes:

6. Subcommittee Status Reports

a. Operating Reliability Subcommittee* – Chair Joel Wise

i. SPP Reliability Coordinator Reliability Plan* – Bruce Rue, SPP

ii. Eastern Interconnection Data Sharing Network – Rich Mandes Action: None Objective: Review and discuss the EIDSN’s plans to install

a data sharing network (EInet), which will replace NERCnet.

Agenda – Operating Committee Meeting – March 10-11, 2015 2

In addition, ORS Chair Wise will discuss the on-going activities of the Data Exchange Working Group.

OC Strategic Plan Goal: To investigate emergent issues that impact the reliability of the BES. Action Item Number: 1403-12 Background: Mr. Mandes will brief the OC on the current status of the EIDSN project to develop a fully redundant data sharing network. Presentation: Yes

Duration: 20 minutes Background Items: None

Notes:

b. Resources Subcommittee* – Chair Gerry Beckerle

c. Event Analysis Subcommittee* – Chair Sam Holeman

d. Personnel Subcommittee* – Chair Laurel Hennebury

7. Reliability Issues Steering Committee Status Report – Vice Chair Case

8. Committee Matters

a. Operating Reliability Coordination Agreement (ORCA) Implementation – David Zwergel, MISO

Action: None Objective: Review a status report related to the implementation of the ORCA.

OC Strategic Plan Goal: To investigate emergent issues that impact the reliability of the BES. Action Item Number: None Background: At its June 20, 2013 webinar meeting, the Parties (MISO, SPP, TVA, Southern, AECI, PowerSouth, Louisville Gas and Electric, and Kentucky Utilities) informed the OC that they had entered into an Operating Reliability Coordination Agreement (ORCA). The ORCA provides a long term road map for coordination and study between the Parties to ensure reliability in the consolidated MISO BA that stretches from the gulf coast through middle America to the US Canadian border. Given that the Parties have executed the ORCA, the Parties support and recommend approval of the revised MISO Reliability Plan. The Operating Committee approved the MISO Reliability Plan. MISO agreed to keep the OC informed of the progress of items outlined within the ORCA. Presentation: Yes

Duration: 15 minutes Background Items: None

Notes:

b. Essential Reliability Services Task Force (ERSTF) – Ken McIntyre, ERSTF Co-Chair

Action: None Objective: Review and discuss recent ERSTF activities. OC Strategic Plan Goal: To investigate emergent issues that impact the reliability of the BES. Action Item Number: None Background: The ERSTF had 4 measures endorsed by the OC and PC in December for framework pilot effort. The task force received data from the entities and analyzed the measures. In addition, the task force also continued evaluating other 5 measures simultaneously. The Framework Report Version 1 was finalized and posted in January 2015. This presentation will review the results obtained from the framework pilot, the status of the remaining 5 measures, and way ahead for the task force.

Agenda – Operating Committee Meeting – March 10-11, 2015 3

Presentation: Yes

Duration: 25 minutes Background Item: ERSTF Framework Report

Notes:

c. Performance Analysis Subcommittee* – Melinda Montgomery, PAS Chair

Action: Endorse Objective: Endorse a revision to ALR6-15 (Element Availability Percentage and Unavailability Percentage) and a white paper that contains recommendations for compliance metrics ALR CP-1 and ALR CP-2. Provide update on State of Reliability Report and request reviewers.

OC Strategic Plan Goal: To investigate emergent issues that impact the reliability of the BES. Action Item Number: 1312-06 Background: At its December 2014 meeting, Chair Montgomery informed the OC of the PAS’s efforts to develop ALR compliance metrics. The compliance metrics are intended to track impactful compliance violations and potential compliance violations. Presentation: Yes

Duration: 30 minutes Background Items: 1. Revised ALR6-15 (Element Availability Percentage and

Unavailability Percentage) 2. Draft Compliance Metric White Paper 3. Compliance Metrics Consideration of Comments 4. Draft ALR CP-1 5. Draft ALR CP-2

Notes:

d. Draft Operating Committee Strategic Plan 2015-2019* – Alan Bern

Action: Endorse Objective: Review, discuss and endorse a revised draft of the OC strategic plan.

OC Strategic Plan Goal: None, this is an administrative item. Action Item Number: 1412-04 Background: At its December 2014 meeting, Chair Castle tasked Alan Bern (chair), Jerry Rust, Don Watkins, and Todd Lucas with reviewing and revising the current OC strategic plan. Chair Bern will lead the OC in a review of the revised strategic plan. Procedural Arrangements: Towards the end of day one of the OC meeting, Chair Bern will provide an overview of the revised OC strategic plan. The OC will form four break-out groups with each group discussing one of the four goals identified in the revised strategic plan for approximately 20 minutes. The goal of the break-out sessions is to evaluate each goal and its associated action plan to assure that the goal is clear and crisp and that the goal provides strategic direction to the OC. At the conclusion of the break-out session, the leaders of each group will report their recommendations to the entire OC. This will allow Chair Bern and his team to assess the comments provided and to make revisions to the strategic plan as deemed appropriate. On the morning of day two of the OC meeting, Chair Bern will present the final draft of the revised OC strategic plan to the committee for endorsement.

Agenda – Operating Committee Meeting – March 10-11, 2015 4

Presentation: Yes

Duration: 60 minutes Background Items: Draft revised OC Strategic Plan 2015-2019

Notes:

e. Reliability Guideline: Generating Unit Operations During Complete Loss of Communications – Peter Brandien, ISO-NE

Action: None Objective: Review and discuss the comments received during the 45-day posting of the Reliability Guideline: Generating Unit Operations During Complete Loss of Communications.

OC Strategic Plan Goal: To investigate emergent issues that impact the reliability of the BES. Action Item Number: 1406-10 Background: At its December 2014 meeting, the OC approved posting the revised draft of the Reliability Guideline: Generating Unit Operations During Complete Loss of Communications for a 45-day comment period. The comment period ended on January 29, 2015 and an OC task team (Peter Brandien, Keith Carman, Ken McIntyre, Pierre Paquet and Jerry Mosier) is developing responses to the comments received. Presentation: Duration: 20 minutes Background Items: Notes:

f. Approving a Field Test Associated with a Reliability Standard – Chair Castle

Action: None Objective: Discuss the status of NERC’s effort to revise the guidelines for approving a field test and the involvement of the Technical Committee in that process.

OC Strategic Plan Goal: The OC will be proactive in leading the focus on the prioritization of Reliability Standards development and improvement. Action Item Number: None Background: For Field Tests, the Standards Committee Charter states: “When authorizing any field test that modifies or supports NERC Reliability Standard requirement development, it is strongly recommended that the Committee, with input from the applicable drafting team, first receive acceptance from the relevant technical committee (e.g., Operating Committee, Planning Committee, or Critical Infrastructure Protection Committee) that the field test would not be expected to adversely impact BES reliability. Further, if BES reliability is or is expected to be adversely impacted during the course of any field test, the relevant technical committee may request the Standards Committee to suspend the field test until such time that the situation can be reviewed by the relevant technical committee and, if necessary, the field test be modified by the relevant technical committee, as appropriate. When authorizing a drafting team to collect and analyze data or to conduct a field test of one or more requirements, the Committee may also request the assistance of the Compliance Monitoring and Enforcement Program.” Presentation: No

Duration: 10 minutes Background Items: None

Notes:

Agenda – Operating Committee Meeting – March 10-11, 2015 5

g. ERO Enterprise Data Use and Administration – James Merlo, Senior Director, Reliability Risk Management and Howard Gugel, Director, Performance Analysis

Action: None Objective: Discuss the ERO’s need for data from a strategic and tactical perspective.

OC Strategic Plan Goal: None, this is an administrative item. Action Item Number: None Background: At its December 2014 meeting, the OC discussed the volume of data being requested from reliability entities to support various ERO projects. Presentation: Yes

Duration: 15 minutes Background Items: None

Notes:

h. Critique of 2014 Frequency Response Annual Analysis Report* – Bob Cummings, Director of Reliability Initiatives and System Analysis

Action: None Objective: Critique the process used in the preparation and approval of the 2014 Frequency Response Annual Analysis Report

OC Strategic Plan Goal: To investigate emergent issues that impact the reliability of the BES. Action Item Number: None Background: NERC staff drafted the 2014 Frequency Response Annual Analysis Report, which was reviewed and accepted by the Resources Subcommittee and its Frequency Working Group at their January 2015 meetings. The OC accepted the report by email ballot on February 19, 2015. Presentation: Yes

Duration: 15 minutes Background Items: 2014 Frequency Response Annual Analysis Report

Notes:

i. Eastern Interconnection Frequency Response Initiative and NERC’s Industry Advisory Generator Governor Frequency Response* – Troy Blalock, Vice Chair, Resources Subcommittee

Action: None Objective: Review and discuss the status of the Eastern Interconnection Frequency Response Initiative and the status of the NERC Alert titled Generator Governor Frequency Response Industry Advisory.

OC Strategic Plan Goal: To investigate emergent issues that impact the reliability of the BES. Action Item Number: 1403-07 Background: On February 5, 2015, NERC issued the Industry Advisory Generator Governor Frequency Response. Presentation: Yes

Duration: 30 minutes Background Items: Industry Advisory Generator Governor Frequency Response

Notes:

j. Transmission and Frequency Performance with High Levels of Renewables – Nick Miller, General Electric

Agenda – Operating Committee Meeting – March 10-11, 2015 6

Action: None Objective: Review and discuss the key findings of the recently-completed National Renewable Energy Laboratory (NREL) study Transient Stability and Frequency Response of the US Western Interconnection under conditions of High Wind and Solar Generation (See Study’s Executive Summary).

OC Strategic Plan Goal: To investigate emergent issues that impact the reliability of the BES. Action Item Number: None Background: The National Renewable Energy Laboratory study results show the necessity of carefully engineering the integration of renewables to maintain transmission system voltage and stability performance. The study also provides insights to areas of analysis for successful integration. Key findings include:

1. Ability of Western Interconnection to meet NERC frequency response obligation under high (>30% annual energy) from wind and solar

2. Efficacy of alternatives to synchronous generation (wind, solar, storage, demand based controls) to mitigate frequency response concerns

3. Impact on large-scale (e.g., California-Oregon Interface) and regional (e.g., eastern Wyoming/Colorado) transient stability

4. Stability impacts of high and very high levels of displacement of thermal (especially coal) generation

Presentation: Yes

Duration: 20 minutes Background Items: None

Notes:

k. GridEx III – Bill Lawrence, Senior Manager of CIP Awareness

Action: None Objective: Review and discuss the coordination of activities between the CIPC Grid Exercise Working Group and the OC.

OC Strategic Plan Goal: To investigate emergent issues that impact the reliability of the BES. Action Item Number: None Background: GridEx III is scheduled for November 18-19, 2015. Some reliability coordinator members of the OC’s Operating Reliability Subcommittee have volunteered to become active participants on the Grid Exercise Working Group. Presentation: Yes

Duration: 15 minutes Background Items: None

Notes:

l. AC Substation Equipment Task Force Status Update – Michael Lombardi, ACSETF Chair

Action: None Objective: To provide a status update as directed by the OC to prioritize ACSETF recommendations and make them actionable.

OC Strategic Plan Goal: To investigate emergent issues that impact the reliability of the BES. Action Item Number: 1409-02

Agenda – Operating Committee Meeting – March 10-11, 2015 7

Background: The AC Substation Equipment Task Force (ACSETF) was formed to analyze one of NERC’s top priority reliability issues – AC Substation Equipment Failures. As reported in the NERC 2013 State of Reliability Report, AC substation equipment failures have been observed to be a significant contributor to disturbance events, and have a positive correlation to increased transmission severity for outages associated with them. The task force developed a report for the industry which summarizes trends in disturbance events resulting from AC substation equipment failure, identification of root and contributing causes and recommendations for actions which was presented at the December 2014 Planning Committee and Operating Committee meetings. The OC endorsed the ACSETF final report, subject to the ACSETF refining the recommendations into actionable recommendations with a business plan to help prioritize implementation of each recommendation. Presentation: Yes

Duration: 20 minutes Background Items: ACSETF documents, including its scope and final report, are posted at ACSETF.

Notes:

m. Department of Energy Research and Development Program Status Report – Dr. Emmanuel Taylor, U.S. Department of Energy

Action: None Objective: Review and discuss the DOE’s goals and objectives of its Research and Development program regarding operating reliability.

OC Strategic Plan Goal: To investigate emergent issues that impact the reliability of the BES. Action Item Number: None. Background: Dr. Taylor, Department of Energy, will provide an overview of DOE’s research and development efforts. Presentation: Yes

Duration: 15 minutes Background Items: None

Notes:

n. Project 2014-03 (Revisions to TOP/IRO Reliability Standards) – David Souder

Action: None Objective: Review and discuss the status of proposed revisions to TOP and IRO Reliability Standards.

OC Strategic Plan Goal: The OC will be proactive in leading the focus on the prioritization of Reliability Standards development and improvement. Action Item Number: None Background: The primary goal of Project 2014-03 (Revisions to TOP/IRO Reliability Standards) is to address the concerns identified in the FERC NOPR proposing to remand IRO standards developed in Project 2006-06 (Reliability Coordination) and TOP standards developed in Project 2007-03 (Real-time Operations). On April 16, 2013, NERC submitted two petitions requesting Commission approval of TOP and IRO standards. One petition addresses three revised TOP Reliability Standards: TOP-001-2 (Transmission Operations), TOP-002-3 (Operations Planning), TOP-003-2 (Operational Reliability Data), and one Protection Systems (PRC) Reliability Standard, PRC-001-2 (System Protection Coordination) (collectively, the “TOP Standards”) to replace the eight currently-effective TOP standards. The second petition addresses four revised IRO Reliability Standards: IRO-001-3 (Responsibilities and Authorities),

Agenda – Operating Committee Meeting – March 10-11, 2015 8

IRO-002-3 (Analysis Tools), IRO-005-4 (Current Day Operations), and IRO-014-2 (Coordination Among Reliability Coordinators) (collectively, the “IRO Standards”) to replace six currently-effective IRO standards. On November 21, 2013, the Commission issued a NOPR proposing to remand these TOP and IRO Standards, stating that NERC “has removed critical reliability aspects that are included in the currently-effective standards without adequately addressing these aspects in the proposed standards.” For example, the Commission cites the fact that the proposed TOP Standards do not require Transmission Operators to plan and operate within all System Operating Limits (“SOLs”), which is a requirement in the currently effective standards. Project 2014-03 Background Information Presentation: Yes

Duration: 10 minutes Background Items: None

Notes:

o. Integration of Variable Generation Task Force Final Summary Report Status Update – Noha Abdel-Karim, Senior Engineer, Reliability Assessment

Action: Endorse Objective: Review and discuss an overview of the Final IVGTF Summary Report and a transition work plan. Endorse a motion to disband the IVGTF.

OC Strategic Plan Goal: To investigate emergent issues that impact the reliability of the BES. Action Item Number: 1409-03 Background:

1. OC review of the IVGTF transition plan, which delegates the effort to the NERC Long-Term Reliability Assessment, Special Assessments, and to the Essential Reliability Services Task Force.

2. NERC staff requests disbanding the IVGTF. 3. NERC staff will continue to monitor the progress of the IVGTF recommendations.

Presentation: Yes

Duration: 10 minutes Background Items: IVGTF reports and related documents are posted at IVGTF. IVGTF Final Summary report will be sent to the OC toward the end of February 2015.

Notes:

p. NERC FAC-003 Vegetation Management Research Work with EPRI – Neil Burbure, Senior Engineer, Reliability Initiatives and Systems Analysis

Action: None Objective: To provide an update on: 1. Preliminary results from research work conducted by

NERC and EPRI to empirically validate the gap factor used in the calculation of the Minimum Vegetation Clearance Distances specified in the currently enforceable version of the NERC vegetation management Reliability Standard, FAC-003-3, which is designed to avoid flashovers between conductors and vegetation. The work is being completed to fulfill the

Agenda – Operating Committee Meeting – March 10-11, 2015 9

directive in paragraph 59 of Revisions to Reliability Standard for Transmission Vegetation Management, Order No. 777, 142 FERC ¶ 61,208 (2013).

2. Future steps.

OC Strategic Plan Goal: To investigate emergent issues that impact the reliability of the BES. Action Item Number: None Background: None Presentation: Yes

Duration: 20 minutes Background Items: None

Notes: *Background materials included.

Agenda – Operating Committee Meeting – March 10-11, 2015 10

EXHIBIT B

ATTENDEES Operating Committee Meeting

March 10−11, 2015 OFFICERS

Chair Jim Castle Vice Chair Jim Case Secretary and Staff Coordinator Larry Kezele

MEMBERS

VOTING MEMBERS Cooperative Jeff Harrison

Keith Carman Electricity Marketer Federal/Provincial Tom Irvine

Don Watkins Tony Nguyen (proxy for Martin Huang) Pierre Paquet

IOU Todd Lucas Gerry Beckerle ISO/RTO David Souder Ken McIntyre Leonard Kula Large End-use Tom Siegrist Customer State/Municipal Doug Peterchuck Richard Kinas Transmission Dennis Florom Dependent Utility Merchant Generator Tom Leeming

VOTING MEMBERS (cont’d) State Government Patricia Poli Bill Chambliss Small End-use Kevin Conway Customer TRE Alan Bern FRCC Ron Donahey MRO Lloyd Linke NPCC Jerry Mosier RF John Idzior SERC Stuart Goza WECC Jerry Rust SPP Jim Useldinger NON-VOTING MEMBER U.S. Federal Thanh Luong

ATTENDEES — Operating Committee Meeting (cont’d) March 10–11, 2015

REGIONAL ENTITY MRO Dan Schoenecker FRCC Hassan Hamdar SERC Devan Hoke SERC Steve Corbin SERC Kim Thomas SPP Bruce Rew ERCOT Yvette Landin Texas RE Bob Collins WECC Paul Rice

NERC STAFF Sandy Shiflett James Merlo Jule Tate Bob Cummings Mark Olson Darrel Richardson

GUESTS Mike Oatts Southern Paul Roehr ATC Ben Engelby ACES Joel Wise TVA Nicholas Miller General Electric ChaRee DiFabio NWPP Rich Hydzik Avista Laurel Hennebury ISO-NE Lauri Jones PG&E Don Badley NWPP Peter Brandien ISO-NE Richard Mandes EIDSN Kevin Berent NATF John Powell Tri-State G&T Darrel Yohnk ITC Emmanuel Taylor Department of Energy Troy Blalock SCE&G Tony Jankowski We Energies Melinda Montgomery Entergy Paul Johnson AEP Will Franklin Xcel Energy

2

Exhibit C

Individual Statements Operating Committee Meeting March 10–11, 2015

There were none.

Exhibit D

Minority Opinions Operating Committee Meeting March 10–11, 2015

No minority opinions were offered for the record.

Exhibit E

NERC Operating Committee Action Items

Dated: March 20, 2015

December 2012 Meeting Action Items

OC meeting and item number

Assignment Description Due Date Progress Status

1212-21 BARC SDT (Jerry Rust and Gerry Beckerle)

BARC Final Report of Field Trial – lay out the analysis – lessons learned from field trial structure and testing

Dec 2013 Need information from Drafting Team Facilitator. BARC SDT provided an overview of the field trial at the June 2014 and September 2014 meetings. SDT developed a Preliminary Report. Board approved BAL-001-2 and it was filed at FERC on 4/2/14. The OC expects the field trial to remain in place until its FERC approved compliance enforcement date, after which a final field trail report will be developed and presented to the OC.

In Progress

NERC Operating Committee Action Items Page 1 of 5

December 2013 Meeting Action Items

OC meeting and item number

Assignment Description Due Date Progress Status

1312-06 PAS ALR-C1 (i.e., reliability metric derived from compliance reporting) – Support NERC staff on working through this to develop a meaningful metric for reliability.

Waiting on PAS and CCC December 2014 – PAS is developing an ALR metric called ALR CP-2. This metric would track impactful compliance violations and potential violations by quarter. March 2015 – The PAS presented a draft of compliance metrics CP-1 and CP-2. Following its discussion the PAS will refine and present at the June 2015 meeting.

In Progress

March 2014 Meeting Action Items

OC meeting and item number

Assignment Description Due Date Progress Status

1403-12 EIDSN (Rich Mandes)

Keep the OC informed of the progress of:

1. The transition of NERCnet to EIDSN

2. The development of a replacement to NERCnet data sharing network

September 2014

Meeting

NERCnet to remain with NERC until replacement network becomes available, which is currently scheduled for 2nd quarter 2015. March 2015 – EInet expected to be in service in May 2015.

In progress

June 2014 Meeting Action Items

OC meeting and item number

Assignment Description Due Date Progress Status

1406-07 Resources Subcommittee

Eastern Interconnection Frequency Response Initiative

December Meeting

RS managing the survey and collecting the data. December 2014 – RS Recommends pursuing development of a NERC Advisory Alert. The draft Alert was issued to the OC for comments

In Progress

NERC Operating Committee Action Items Page 2 of 5

and it is expected that the Alert will be issued in early February 2015. March 2015 – NERC Alert Issued. Webinars to be scheduled to inform industry.

1406-08 Resources Subcommittee

Establishment of a data repository by NERC for the generator survey data

September Meeting

NERC staff to address. December 2014 – No progress to date. March 2015 – No progress to date.

In Progress

1406-10 Resources Subcommittee

Reassigned to OC

Subgroup

Revisit the Reliability Guideline: Generating Unit Operations during Complete Loss of Communications

September Meeting

RS tasked with considering revisions to the reliability guideline identified in the motion to table and the concerns raised by the OC during its debate of that motion at the June 2014 meeting. Pete Brandien to develop a guideline revision to address transmission concerns. December 2014 – OC approved revised guideline for 45-day comment period. March 2015 – OC task group reviewing comments received. Expect to have response to comments developed and revised guideline by June 2015 meeting.

In Progress

September 2014 Meeting Action Items

OC meeting and item number

Assignment Description Due Date Progress Status

1409-01 ORS Maintain liaison with the CIPC Grid Exercise Working Group

December Meeting

At its September 2014 meeting the OC discussed the status of development of GridEx III. March 2015 – OC received a status report of exercise planning.

In Progress

NERC Operating Committee Action Items Page 3 of 5

1409-02 ACSETF Review and endorse ACSETF Final Report

December Meeting

March 2015

Meeting

Chair Castle tasked Rust, Bern, and Lucas to review and provide comments on the draft report. December 2014 – OC endorsed the ACSETF final report, subject to the ACSETF refining the recommendations into actionable recommendations with a business plan to help prioritize implementation of each recommendation. The ACSETF will present prioritized actionable recommendations, including a business plan, to the OC at its March 2015 meeting. March 2015 – OC received final report from the ACSETF. Recommendations were prioritized.

Complete

1409-03 IVGTF Review and endorse IVGTF Final Report December Meeting

IVGTF developing a drafting the final report. December 2014 – No progress. Expect final report at the March 2015 OC meeting. March 2015 – Expect final report at the June 2015 OC meeting.

In Progress

1409-04 ORS Review and approve for posting the Real-Time Tools Degradation reliability guideline.

December Meeting

ORS developing draft guideline. December 2014 – ORS presented draft guideline to the OC. OC approved for 45-day comment period. March 2015 – In progress.

In Progress

December 2014 Meeting Action Items

OC meeting and item number

Assignment Description Due Date Progress Status

1412-01 Chair Castle Field Tests – Work with NERC staff to determine a path for strengthening the Rules of Procedure.

March 2015 The topic will be addressed by the OC Leadership team and the OC Strategic Plan subgroup.

In Progress

NERC Operating Committee Action Items Page 4 of 5

March 2015 – The Standards Committee is working on a revision to the Standards Process Manual to address field tests. The SPM is part of the Rules of Procedure.

1412-02 Kezele Updating of OC Reference Documents and Reliability Guidelines

March 2015 March 2015 – OC and its subcommittee are beginning to prepare work plans.

In Progress

1412-03 NERC Staff Present Version 4.3 of the Continuing Education Program Administrative Manual to Board for approval

February 2015

March 2015 – NERC staff determined that presenting this to the Board was not necessary.

Complete

1412-04 OC Strategic Plan Subgroup

Chair Castle tasked Alan Bern (chair), Jerry Rust, Don Watkins and Todd Lucas along with Chair Castle and Vice Chair Case with reviewing and revising the OC’s strategic plan.

March 2015 March 2015 – The OC approved a revised Strategic Plan.

Complete

March 2015 Meeting Action Items

OC meeting and item number

Assignment Description Due Date Progress Status

1503-01 OC Vice Chair Case and Darrel Yohnk to review the FAC-003 Project report.

June 2015 The topic was addressed by the OC at its March 2015 meeting. The draft FAC-003 Project report is expected to be available for review on May 1, 2015.

In Progress

1503-02 PS System Operator cognitive overload June 2015 Dr. Overbye, U of Illinois may attend the June OC meeting to discuss this topic.

In Progress

NERC Operating Committee Action Items Page 5 of 5

NERC | Operating Committee 2015 – 2019 Strategic Plan | March 2015 1 

Operating Committee 2015 – 2019 Strategic Plan

March 2015

Exhibit F

 

NERC | Operating Committee 2015 – 2019 Strategic Plan | March 2015 2 

Table of Contents Table of Contents ......................................................................................................................................................................... 2 

Introduction ................................................................................................................................................................................. 3 

Operating Committee Strategic Plan ........................................................................................................................................... 4 

Purpose of Strategic Plan ..................................................................................................................................................... 4 

Guiding Principles ................................................................................................................................................................ 4 

Operating Committee Goals ........................................................................................................................................................ 5 

Goal – OC 1 .............................................................................................................................................................................. 5 

Action Plan – OC 1................................................................................................................................................................ 5 

Goal – OC 2 .............................................................................................................................................................................. 5 

Action Plan – OC 2................................................................................................................................................................ 5 

Goal – OC 3 .............................................................................................................................................................................. 6 

Action Plan – OC 3................................................................................................................................................................ 6 

Goal – OC 4 .............................................................................................................................................................................. 6 

Action Plan – OC 4................................................................................................................................................................ 6 

 

 

NERC | Operating Committee 2015 – 2019 Strategic Plan | March 2015 3 

Introduction  

The North American Electric Reliability Corporation (NERC) Operating Committee (OC) is a stakeholder committee chartered by the NERC Board of Trustees (Board) to proactively support the NERC Enterprise mission.  This strategic plan provides the OC with a clearly focused five‐year road map for enhanced Bulk Electric System (BES) reliability, including alignment with the NERC top priorities as they continue to evolve over time.  This plan was developed by a task force of OC members.  It is intended to guide the functions and core mission of the OC over the next five years, providing a sustainable set of expectations and deliverables.  Further, it is not the intent of the task force for this strategic plan to remain static throughout the five‐year timeframe.  Rather, it is crucial that the plan retain the flexibility to address emerging issues and incorporate them as necessary to properly resolve them.  The task force met in a working session to assess the current state of the OC and its responsibilities to industry, to cogitate on its future state, and to develop an understanding of the strengths and weaknesses of the OC.  Further, the task force will identify opportunities for the OC to enhance operational reliability and will assess challenges the OC may have in carrying out its mission.  Based on this work the task force developed strategic goals with action plans and measures of success to incorporate into the plan.  The task force will finalize the plan for presentation to, and to get approval from, the entire OC and ultimately the Board.  It is expected that this plan, along with its goals and measures, will be reviewed during OC meetings, and enhancements to the plan will be made as required to achieve goals and ultimately reach the anticipated future state of the committee.  The OC and its subgroups will be actively engaged in promoting operational reliability excellence.  Recognized as industry experts, the OC should be sought for expertise in Training and Guidance Documents and assessments of system events and causal analyses, as well as standards recommendations, reviews, interpretations, and assessments.  OC focus will be centered on operating and maintaining the BES within secure limits during the operational planning and real‐time periods on an actual and projected post‐contingent basis to preserve the efficacy of the BES.  

 

NERC | Operating Committee 2015 – 2019 Strategic Plan | March 2015 4 

Operating Committee Strategic Plan  

Purpose of Strategic Plan The purpose of NERC OC’s Strategic Plan is to establish strategic direction for the NERC OC, in conjuction with the ERO’s vision.   The Plan seeks to focus the OC onto operational reliability matters and outlines the Guiding Principles under which the NERC OC will operate over the next five years.    

Guiding Principles

Coordinate with the Reliability Issues Steering Committee (RISC) identified priorities and align the OC strategic plan with ERO’s strategic plan. 

Continually strive for excellence in event analysis (EA), emerging cause code trending and information sharing.  

Maintain the structure, processes and relationships with other NERC standing committees, and foster relationships with other forums, to achieve high levels of reliability for the BES. 

Maintain and enhance reliability through the pursuit of clear NERC Reliability Standards, reliability guidelines, NERC Alerts, interpretations, lessons learned, and other operational compliance clarifications. 

Maintain high levels of expertise to provide sound conclusions and opinions on operational issues. 

 

 

 

NERC | Operating Committee 2015 – 2019 Strategic Plan | March 2015 5 

Operating Committee Goals Goal – OC 1 Investigate, review, and assess emergent issues to identify gaps impacting the reliability of the BES and associated NERC Reliability Standards.  

Action Plan – OC 1 The OC will actively participate, recommend emergent operating issues, and help establish the priorities and 

coordinate with RISC, while engaging with the appropriate parties to develop the necessary mitigation process or proposed solutions, such as revisions to standards to eliminate the identified gaps.  

The OC will review the issues at each standing committee meeting for status and progress and re‐prioritize (as necessary) with assignments to the appropriate sub‐committees.  

The OC will assess and inform the industry on the evolving reliability impacts of the continuous changes in the topology of the Intereconnection which leads to the identified gaps.  

The OC will continue to identify gaps, operating challenges, reliability impacts, and operating trends associated with generation and demand‐side resource changes and proposed solutions. 

The OC will continue to assess and inform the industry on the reliability impacts of natural gas/electric generation interdependences and provide recommendations where appropriate. 

The OC will assess, evaluate, and inform the industry on the evolving reliability impacts of the fundamental changes to interconnected operations, such as changes to the footprints of reliability coordinators, balancing authorities, transmission operators, Interconnections, and HVDC ties, etc. When appropriate, approve the associated changes that address the identified gaps. 

The OC will assess and inform, and where appropriate,  provide solutions to the industry on the reliability impacts from possible high‐impact, low‐frequency events that could have unacceptable operational consequences on the BES. 

 

Goal – OC 2 Utilize the results of the Event Analysis Process to improve the reliable operation of the BES.  Accomplishing this goal requires a two‐pronged approach.  First, the OC will focus on event prevention by providing industry with information associated with good industry practices and emerging tools, technology and techniques.  Hence, information can be shared with the intended benefit of avoiding events.  Second, the OC will continue to champion and enhance the EA program and use it to rapidly disseminate lessons learned, from which industry may profit through enhanced operational reliability.    

Action Plan – OC 2

The OC will assure the Events Analysis Subcommittee (EAS) is staffed with technical leaders allowing EAS to inform the industry of good industry practices as well as emerging trends identified through the EA process. 

Through emerging lessons learned, the EAS may recommend: 

o Development of reliability guidelines 

o Development of NERC Alerts 

o Improvements to existing Reliability Standards  

o New Reliability Standards 

Operating Committee Goals 

 

NERC | Operating Committee 2015 – 2019 Strategic Plan | March 2015 6 

The EAS will present root causes and lessons learned at OC meetings with the objective of sharing information on industry improvement opportunities. 

The EAS will leverage industry groups (such as the North American Transmission Forum and Generation Forum) in the development of quality lessons learned. 

The EAS, in coordination with the Personnel Subcommittee, will recommend training and education as a result of lessons learned and emerging cause code trends. 

The EAS will annually survey the Regional Entities to determine if recommendations associated with lessons learned are being implemented and if not why. The EAS will report the survey results to the OC. 

The EAS will develop a communication strategy in coordination with the appropriate parties to encourage the use of Lessons Learned and to inform the industry of current and past lessons learned and good industry practices. 

 

Goal – OC 3 The OC will be proactive in the review of the proposed Reliability Standards under development or improvement.  

Action Plan – OC 3

The OC will: 

Engage the chair of the Standards Committee and the Standards Drafting Team Chairs to update the OC on the associated standards to allow the OC to provide early review, discussion and guidance on  recommendations. 

Recommend to Standards Committee revisions to standards or the retirement of existing standards as appropriate 

Encourage OC involvement in the informal standards development process 

Prepare responses to requests for interpretations 

Establish and maintain a method for active management of field trials associated with standards development, including the leadership of the field trial (as necessary). 

 

Goal – OC 4 Improve the depth of NERC reports to include operations perspectives.  The OC will be proactively engaged in the development of NERC reports by assigning subcommittees or appointing representatives to groups in which operations reliability perspectives will be beneficial.   Key findings and recommendations within NERC reports serve as the technical basis for NERC Reliability Standards, project prioritization, compliance improvement, assessments, and critical infrastructure protection, as well as a roadmap into the future.  By providing early input into NERC efforts, the OC can provide a valuable service to the industry, as well as support NERC in addressing its top priorities.   

Action Plan – OC 4

The OC will direct the Resources Subcommittee to coordinate with the NERC Performance Analysis Subcommittee to provide reports and information as needed. The OC will direct the Operating Reliability Subcommittee to coordinate with the NERC Reliability Assessment Subcommittee to provide reports and information as needed.The OC will review and endorse NERC’s annual State of Reliability report. 

Operating Committee Goals 

 

NERC | Operating Committee 2015 – 2019 Strategic Plan | March 2015 7 

The OC will assure OC representation, and will collaborate, with the appropriate subgroups on issues such as: 

Reliability metrics 

Operational Security 

Interconnection frequency response  

Performance analysis  

Essential Reliability Services