Agenda Operating Committee **Joint Session: Operating Committee (OC)/Planning Committee (PC)/ Critical Infrastructure Protection Committee (CIPC): December 13, 2016 | 10:00 a.m. – Noon EST**

December 13, 2016 | 1:00 – 5:00 p.m. ESTDecember 14, 2016 | 8:00 a.m. – Noon EST

The Ritz-Carlton Buckhead3434 Peachtree StreetAtlanta, Georgia(404) 237-2700

Introductions and Chair’s Opening Remarks

NERC Antitrust Compliance Guidelines and Public Announcement

Agenda1. Administrative - Secretary

a. Arrangements

i. Safety Briefing and Identification of Exits (Ritz-Carlton Staff)

b. Announcement of Quorum

c. Background Information

d. OC Membership 2016-2018*

i. OC Roster*

ii. 30T32T32T30TUU OC Organizational Chart UU30T30T32T32T iii. 30T32T32T30T OC Charter 30T30T32T32T iv. Parliamentary Procedures*

v. 30T32T32T30T Participant Conduct Policy 30T30T32T32T e. Future Meetings

i. Please note that Joint OC/PC/CIPC meetings will be scheduled from 10:00 a.m. to Noon on the first day of the Committee meetings.

2017 Meeting Dates Time Location Hotel

March 7, 2017March 8 2017

1:00 to 5:00 p.m.8:00 a.m. to Noon Atlanta, GA Ritz-Carlton

June 6, 2017 1:00 to 5:00 p.m. TBD TBD

2017 Meeting Dates Time Location Hotel

June 7, 2017 8:00 a.m. to NoonSeptember 12, 2017September 13, 2017

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

December 12, 2017December 13, 2017

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

2. Consent Agenda – Chair Jim Case

a. September 13-14, 2016 Draft OC Meeting Minutes*

Action: Approve Objective: Approve consent agenda. Background: None Presentation: No

Duration: 5 minutes Background Items: September 13-14, 2016 Draft OC Meeting Minutes

3. Chair’s Remarks

a. Report on November 1, 2016 Member Representatives Committee (MRC) Meeting and the November 2, 2016 Board of Trustees (Board) Meeting*

b. Discussion of upcoming 2017 OC Work Plan development

4. OC Action Items Review* – Vice Chair Lloyd Linke

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

OC Strategic Plan Goal: 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. Subcommittee Status Reports

a. Operating Reliability Subcommittee (ORS) – Chair Eric Senkowicz

b. Resources Subcommittee (RS) – Chair Troy Blalock

c. Event Analysis Subcommittee (EAS)* – Chair Hassan Hamdar

i. Revised ERO Event Analysis Process* – Chair Hassan Hamdar

Action: Approve Objective: Approve the revisions to the ERO Event Analysis Process.

OC Strategic Plan Guiding Principle: Continually strive for excellence in event analysis (EA), emerging cause code trending, and information sharing.Action Item Number: None

Agenda – Operating Committee Meeting – December 13-14, 2016 2

Background: The EAS drafted a revised Event Analysis Process (EAP) redline and a justification letter for the suggested changes to Category 1g and 3a of the ERO EAP. The revisions were posted for a 45-day comment period which ended on November 14, 2016. The EAS has made final revisions to the ERO EAP and is seeking approval from the OC with an effective date of January 1, 2017.Presentation: Yes

Duration: 10 minutes Background Items: Revised ERO Event Analysis Process (red-line)

Notes:

d. Personnel Subcommittee (PS)* – Chair Lauri Jones

e. Reliability Assessment Subcommittee (RAS)

i. 2016 Long-Term Reliability Assessment – David Calderon, Engineer

Action: None Objective: Review and discuss the 2016 LTRAOC Strategic Plan Guiding Principle: 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. Action Item Number: NoneBackground: Mr. Calderon will provide an overview of the 2016 LTRA report, which focuses on:

Resource Adequacy

Single Fuel Dependency

Nuclear Uncertainty

Probabilistic Analysis

Essential Reliability Services

Distributed Energy ResourcesIt is expected that the NERC Board will review and consider acceptance of the 2016 LTRA on December 14, 2016. The targeted release date for the report is December 15, 2016.Presentation: Yes

Duration: 15 minutes Background Items: None

Notes:

f. Essential Reliability Services Working Group (ERSWG) – Co-Chair Todd Lucas

g. Distributed Energy Resources Task Force (DERTF) – Chair Rich Hydzik

6. Reliability Issues Steering Committee (RISC) Status Report – Vice Chair Linke

7. Past Chairs Roundtable

Action: Information Objective: Share insights on the evolution and work of the OC.

OC Strategic Plan Guiding Principle: Maintain and enhance reliability through the pursuit of clear NERC Reliability Standards, reliability guidelines, NERC Alerts, interpretations, lessons learned, and other operational compliance clarifications.

Agenda – Operating Committee Meeting – December 13-14, 2016 3

Action Item Number: NoneBackground: Past OC Chairs Tom Bowe, Sam Holeman, and Jim Castle along with past OC Secretary Larry Kezele will share their insights regarding the evolution and work of the OC.Presentation: No

Duration: 60 minutes Background Items: None

Notes:

8. Committee Matters

a. PAS request for OC reviewers of State of Reliability report – Paul Kure, PAS chair

Action: None Objective: Solicit volunteers to review various report chapters as they are being developed,

OC Strategic Plan Guiding Principle: Maintain and enhance reliability through the pursuit of clear NERC Reliability Standards, reliability guidelines, NERC Alerts, interpretations, lessons learned, and other operational compliance clarifications.Action Item Number: NoneBackground: Mr. Kure, Chair of the Performance Analysis Subcommittee, will solicit volunteers to review various chapters of the State of Reliability Report as they are being developed by the subcommittee to facilitate timely development of the report.Presentation: Yes

Duration: 10 minutes Background Item: None

Notes:

b. Reliability Guideline: Inadvertent Interchange* – Jerry Rust

Action: Approve Objective: Approve a Reliability Guideline: Inadvertent Interchange.

OC Strategic Plan Guiding Principle: Maintain and enhance reliability through the pursuit of clear NERC Reliability Standards, reliability guidelines, NERC Alerts, interpretations, lessons learned, and other operational compliance clarifications.Action Item Number: 1512-04Background: At its September 2016 meeting, the OC authorized posting the guidance document for a 45-day comment period which was jointly developed by the Project 2010-14.2.1 Standard Drafting Team and the Resources Subcommittee. Mr. Rust will provide an overview of the team’s final draft Reliability Guideline: Inadvertent Interchange for the OC’s approval.Presentation: Yes

Duration: 10 minutes Background Items: 1) Reliability Guideline: Inadvertent Interchange (clean) 2) Reliability Guideline: Inadvertent Interchange (redline) 3) Comment Responses

Notes:

c. Reliability Guideline: Integrating Reporting ACE with the NERC Reliability Standards* – Jerry Rust

Action: Approve Objective: Approve a Reliability Guideline: Integrating Reporting ACE with the NERC Reliability Standards.

Agenda – Operating Committee Meeting – December 13-14, 2016 4

OC Strategic Plan Guiding Principle: Maintain and enhance reliability through the pursuit of clear NERC Reliability Standards, reliability guidelines, NERC Alerts, interpretations, lessons learned, and other operational compliance clarifications.Action Item Number: 1512-05Background: At its September 2016 meeting, the OC authorized posting the guidance document for a 45-day comment period which was jointly developed by the Project 2010-14.2.1 Standard Drafting Team and the RS. Mr. Rust will provide an overview of the team’s final draft Reliability Guideline: Integrating Reporting ACE with the NERC Reliability Standards for the OC’s approval.Presentation: Yes

Duration: 10 minutes Background Items: 1) Reliability Guideline: Integrating Reporting ACE with the NERC Reliability Standards (clean) 2) Reliability Guideline: Integrating Reporting ACE with the NERC Reliability Standards (redline) 3) Comment Responses

Notes:

d. Reliability Guideline: Area Control Error Diversity Interchange (ADI) Process* – Don Badley

Action: Approve Objective: Approve posting the Reliability Guideline: Area Control Error Diversity Interchange (ADI) Process for a 45-day comment period.

OC Strategic Plan Guiding Principle: Maintain and enhance reliability through the pursuit of clear NERC Reliability Standards, reliability guidelines, NERC Alerts, interpretations, lessons learned, and other operational compliance clarifications.Action Item Number: NoneBackground: The RS has made revisions to the Reliability Guideline: Area Control Error Diversity Interchange (ADI) Process. The RS is requesting that the OC authorize posting the revised guideline for a 45-day comment period.Presentation: No

Duration: 15 minutes Background Items: Reliability Guideline: Area Control Error Diversity Interchange (ADI) Process.

Notes:

e. System Operator Certification and Continuing Education Database (SOCCED) – Trion King, Manager of Personnel Certification

Action: None Objective: Review and discuss SOCCED.OC Strategic Plan Guiding Principle: Maintain high levels of expertise to provide sound conclusions and opinions on operational issues.Action Item Number: NoneBackground: The OC will be briefed on the revisions and updates to SOCCED.Presentation: Yes

Duration: 15 minutes Background Items: None

Notes:

f. NERC Standards Development Update – Mark Olson, Senior Standards Developer

Agenda – Operating Committee Meeting – December 13-14, 2016 5

Action: None Objective: Review and discuss the development of Geomagnetic Disturbance (GMD) standard.

OC Strategic Plan Guiding Principle: Maintain high levels of expertise to provide sound conclusions and opinions on operational issues.Action Item Number: NoneBackground: The OC will be briefed on the development of GMD standards under Project 2013-03. On September 22, 2016, FERC issued Order No. 830 approving Reliability Standard TPL-007-1 - Transmission System Planned Performance for GMD Events. In the Order, FERC directed NERC to develop certain modifications to the standard, or to develop other new or revised standards. The revisions include:

Modify the benchmark GMD event definition used for GMD Vulnerability Assessments;

Make related modifications to requirements pertaining to transformer thermal impact assessments;

Require collection of GMD-related data. NERC is directed to make data available; and

Require deadlines for Corrective Action Plans (CAPs) and GMD mitigating actions.

FERC established a deadline of 18 months from the effective date of Order No. 830 for completing the revisions, which is May 2018.Presentation: Yes

Duration: 15 minutes Background Items: None

Notes:

g. NERC Standards Development Update and Request for SOL/IROL Assistance* – Ryan Quint, Senior Engineer/Lacey Ourso, Standards Developer

Action: Authorize Objective: Review and discuss the development of SOL/IROL standards and authorize assistance.

OC Strategic Plan Guiding Principle: Maintain high levels of expertise to provide sound conclusions and opinions on operational issues.Action Item Number: NoneBackground: The OC will be briefed on the development of IROL/SOL standards and the request for assistance from the NERC Standards Committee (SC). In order to facilitate the development of a team of technical experts to assess the issue and develop technical materials regarding the IROL issues outlined herein, the SC is requesting technical assistance from the OC and PC. Specifically, the SC is seeking the formation of a joint task force, comprised of both operating and planning subject matter experts, for the purpose of developing technical material for the IROL-related issues identified above. The technical material developed by the joint task force can be used by industry as a resource to enhance the manner in which certain interconnection limits are established, and also, by the SDT (or other future standard drafting team addressing the IROL issue) as revisions are developed to the related Reliability Standards. Presentation: Yes

Duration: 15 minutes Background Items: Request for Assistance from the OC and PC for Development of Technical Materials related to

Agenda – Operating Committee Meeting – December 13-14, 2016 6

the Establishment of IROLNotes:

h. 2015 Long-Term Reliability Assessment (LTRA) Task Team Recommendation 1 (DER Planning, Forecasting, Visibility, Lessons Learned) and Recommendation 4 (Dynamic and Static System Modelling Accuracy). – Amir Najafzadeh, Senior Engineer

Action: Approve Objective: Close OC action item associated with 2015 LTRA Task Team Recommendation 1 (DER Planning, Forecasting, Visibility, Lessons Learned) and Recommendation 4 (Dynamic and Static System Modeling Accuracy).

OC Strategic Plan Guiding Principle: Maintain and enhance reliability through the pursuit of clear NERC Reliability Standards, reliability guidelines, NERC Alerts, interpretations, lessons learned, and other operational compliance clarifications.Action Item Number: 1603-13Background: At the March 2016 OC meeting, Recommendations 1 and 4 from the 2015 LTRA were assigned to the DERTF. An update will be provided on the disposition of these two recommendations. Presentation: No

Duration: 15 minutes Background Items: LTRA Task Team Recommendation 1 (DER Planning, Forecasting, Visibility, Lessons Learned) and Recommendation 4 (Dynamic and Static System Modeling Accuracy).

Notes:

i. Determine the continued need for Reliability Coordinator reliability plans. Consider standards IRO-001 and IRO-014. – James Merlo, Vice President, Reliability Risk Management

Action: Endorse Objective: Discuss proposal regarding the continued need for reliability coordinator reliability plans.

OC Strategic Plan Guiding Principle: Maintain high levels of expertise to provide sound conclusions and opinions on operational issues.Action Item Number: 1606-01Background: At the September 2016 OC meeting, the OC tabled a second recommendation from the ORS and asked NERC Staff to further evaluate the ORS proposal, since it involves a Rules of Procedure change. NERC staff is not supportive of reverting to the old standard language and is working on an alternative solution to the second motion. NERC is supportive of the OC endorsing the continued voluntary submission of reliability plans and welcomes the feedback from review of same. These plans and the OC endorsement of these plans could be considered in the registration and certification process.Presentation: No

Duration: 10 minutes Background Items: None

Notes:

j. ORS Recommendation Related to the Disposition of the Data Exchange Working Group (DEWG) – Eric Senkowicz, ORS Chair

Agenda – Operating Committee Meeting – December 13-14, 2016 7

Action: Approve Objective: Review, discuss and approve the ORS recommendation related to the disposition of the DEWG and the Telecommunications Working Group (TWG).

OC Strategic Plan Guiding Principle: Maintain high levels of expertise to provide sound conclusions and opinions on operational issues.Action Item Number: NoneBackground: At its February 2016 meeting, ORS Chair Senkowicz tasked reliability coordinator subcommittee members with contacting their DEWG members to determine the continued need for the DEWG and the TWG. If the DEWG should remain in existence, should it continue to report to the ORS or should it report to another organization such as the Eastern Interconnection Data Sharing Network?Presentation: No

Duration: 10 minutes Background Items: None

Notes:

k. OC Charter Revisions* – Jerry Rust

Action: Approve Objective: Review, discuss and approve proposed revisions to the OC Charter.

OC Strategic Plan Guiding Principle: This is an administrative item.Action Item Number: 1603-01Background: At its March 2016 meeting, Chair Case tasked Jerry Rust (chair), Keith Carman, Lloyd Linke and Todd Lucas with reviewing and updating the OC strategic plan and Charter. The revised charter was presented at the September 2016 OC meeting for review.Presentation: No

Duration: 15 minutes Background Items: Revised Draft of the OC Charter (Red-line)

Notes:

l. Electric System Restoration Reference Document | Archive/Retire – Erik Senkowicz, ORS Chair

Action: Archive Objective: Archive Electric System Restoration Reference Document

OC Strategic Plan Guiding Principle: Maintain and enhance reliability through the pursuit of clear NERC Reliability Standards, reliability guidelines, NERC Alerts, interpretations, lessons learned, and other operational compliance clarifications.Action Item Number: Background: The ORS has completed its review of the Electric System Restoration Reference Document. The ORS does not believe that this reference document provides significant reliability benefit and is requesting that the OC archive/retire the reference document.Presentation: No

Duration: 5 minutes Background Item: None

Notes:

m. Distributed Energy Resources (DER) Report | Acceptance* - Rich Hydzik, DERTF Chair

Agenda – Operating Committee Meeting – December 13-14, 2016 8

Action: Approve Objective: Approve the DER ReportOC Strategic Plan Guiding Principle: Maintain and enhance reliability through the pursuit of clear NERC Reliability Standards, reliability guidelines, NERC Alerts, interpretations, lessons learned, and other operational compliance clarifications.Action Item Number: Background: The DERTF deliverables for 2016 include: 1) identifying and assessing distributed energy resource impacts and 2) developing a DERTF final report by year end. The DERTF final report is being presented to the OC for approval.Presentation: No

Duration: 5 minutes Background Item: DER Report

Notes:

n. Essential Reliability Services Sufficiency Guidelines White Paper – Brian Evans-Mongeon

Action: Accept Objective: Accept the Essential Reliability Services Sufficiency Guidelines White Paper.

OC Strategic Plan Guiding Principle: Maintain and enhance reliability through the pursuit of clear NERC Reliability Standards, reliability guidelines, NERC Alerts, interpretations, lessons learned, and other operational compliance clarifications.Action Item Number: Background: The ERSWG deliverables for 2016 include: 1) assisting in the development of approved measures and 2) developing a whitepaper on the methodology for Essential Reliability Services measures sufficiency guidelines. The Sufficiency Guideline whitepaper is being presented to the OC for acceptance.Presentation: No

Duration: 5 minutes Background Item: Essential Reliability Services Sufficiency Guidelines White Paper

Notes:

o. Overview of Entergy project to operate with two primary control centers – Jim Case

Action: None Objective: Provide overview of Entergy project to operate with two primary control centers

OC Strategic Plan Guiding Principle: Continually strive for excellence in event analysis (EA), emerging cause code trending, and information sharing.Action Item Number: NoneBackground: Entergy has developed two primary control centers which share responsibility for the operation of the Balancing Authority (BA) and Transmission Operator (TOP) functions for Entergy. Chair Case will discuss the development of this control approach and its features.Presentation: No

Duration: 30 minutes Background Item: None

Notes:

Agenda – Operating Committee Meeting – December 13-14, 2016 9

p. Update of Reliability Guideline: Generating Unit Winter Weather Readiness – Jim Case

Action: Assign Objective: Assign the EAS to review and, if necessary, update the Reliability Guideline: Generating Unit Winter Weather Readiness.

OC Strategic Plan Guiding Principle: Maintain and enhance reliability through the pursuit of clear NERC Reliability Standards, reliability guidelines, NERC Alerts, interpretations, lessons learned, and other operational compliance clarifications.Action Item Number: Background: Per the OC Charter, Reliability Guidelines are to be reviewed every three years. The Reliability Guideline: Generating Unit Winter Weather Readiness was last approved by the OC in March 2012 and is due for review. Chair Case will request that the review of this guideline be assigned to the EAS.Presentation: No

Duration: 10 minutes Background Item: None

Notes:

q. Update from Idaho National Laboratory - Jake Gentle

Action: None Objective: Update the OC on the latest activities of the Idaho National Laboratory.

OC Strategic Plan Guiding Principle: Maintain and enhance reliability through the pursuit of clear NERC Reliability Standards, reliability guidelines, NERC Alerts, interpretations, lessons learned, and other operational compliance clarifications.Action Item Number: NoneBackground: Mr. Gentle will present an overview of current research at Idaho National Laboratory, including Dynamic Line Rating and Human Performance work for overhead transmission lines with System Planning and Operations; solar, microgrid, dynamic and transient studies; and full scale test and R&D efforts.Presentation: Yes

Duration: 20 minutes Background Item: None

Notes:

*Background materials included.

Agenda – Operating Committee Meeting – December 13-14, 2016 10