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Standards

Howard Gugel, Senior Director of Engineering and Standards Board of Trustees MeetingNovember 7, 2018

Supply Chain

RELIABILITY | ACCOUNTABILITY3

• Approved Supply Chain Standards• Approved implementation plan• Two directives Address Electronic Access Control or Monitoring Systems File final supply chain report

• Modified standard due in 24 months

FERC Order 850


• Support effective and efficient implementation (e.g. CIP V5 transition)

• Supply chain risk study• Communicate supply chain risks to industry • Forum and Association white papers• Plan to evaluate effectiveness of supply chain standards

Board Resolution


• NERC created a supply chain standard webpage• Critical Infrastructure Protection Committee (CIPC) established

advisory task force• Small group advisory sessions• Outreach and readiness evaluations

Effective and Efficient Implementation


• NERC used Electric Power Research Institute to conduct risk study Assessment of product/manufacturer types used on the Bulk Electric

System (BES) Analysis and applicability to BES Cyber Assets Analysis of best practices and standards in other industries to mitigate

supply chain risks Analysis of generalized vendor practices and approaches used to mitigate

supply chain risks

• NERC and CIPC preparing recommend actions• Final report in February 2019

Interim Supply Chain Risk Study


• NERC Alerts to communicate supply chain risks• E-ISAC included supply chain risk topic in GridEx IV• NERC and Regions have included supply chain in workshops• CIPC developing supply chain security guidelines

Communicate Supply Chain Risks


• Forums and Associations developed white papers• White papers posted on webpage• NERC, Forums and Associations to jointly present papers to

industry

Forums and Associations


• NERC and Regions to develop effectiveness evaluation plan in Q4 2018

• CIPC advisory task force to provide feedback• NERC and Regions to continue small group advisory sessions • ERO Enterprise auditor observations and feedback on standard

effectiveness

Plan to Evaluate Standard Effectiveness

Standards Efficiency Review


Two-Phase Project Approach

Phase 1:• Focused primarily on retirements• More straight-forward retirements• Draft Standard Authorization Request (SAR) posted for informal

industry comment proposed ~114 requirements for retirement• Phase 1 work complete for team upon submitting SAR Phase 2:• Alternatives to retirement• Consolidation of requirements• Modifications of requirement or dependent on another• Compliance and Certification Committee (CCC) and Standards

Committee (SC) members to supplement Standards Efficiency Review team(SER)


Phase 1

• Revised SAR submitted to SC (complete)• SAR posted for formal comment (complete) • Appoint Project 2018-03 SER Drafting Team – (October 17, 2018

SC)• Industry ballots on proposed retirements to standards (2018 Q4

– 2019 Q1)• Propose balloted standards to NERC Board of Trustees – 2019

Q2 to 2019 Q3 (changes to standards to focus on retirement)


Phase 2

• Form SER Phase 2 team by supplementing with new CCC & SC members (complete)

• Clarify scope of work for Phase 2 (complete)• Identify key issues to address with Advisory Group (complete)• Review alternatives and concepts proposed by Phase 1 (2018 Q4)• Develop new efficiency concepts (2018 Q4 to 2019 Q2)• Evaluate and identify best efficiency concepts (2019 Q2-Q3)• Draft SAR(s) or implement concepts (2019 Q4)

Standards Actions


• Response to FERC Order No. 786• Update references to Modeling, Data and Analysis (MOD)

Reliability Standards in TPL-001• Reliability Benefits Assessment of single points of failure Assessment of known outages Stability studies for spare equipment strategy

• Minority Issues Additional clarification of Footnote 13 Overlap of assessment of known outages in time horizons

Transmission Planning Standard


• Cost Effectiveness Concern about the signification cost related to addressing single points of

failure (Footnote 13) Majority of stakeholders believe the proposed draft can be met in a cost

effective manner

• Action Adopt TPL-001-5 – Transmission System Planning Performance

Requirements

Transmission Planning Standard


• Background Regional requirements covered in continent-wide Reliability Standards

• Action Retire IRO-006-TRE-1 – Interconnection Reliability Operating Limits (IROL)

and System Operating Limits (SOL) Mitigation in the ERCOT Region

Texas RE – IROL and SOL Mitigation in the ERCOT Region


• Status Posted for industry comment from August 8 - 31, 2018 Endorsed by Standards Committee on September 13, 2018

• Action Approve the 2019-2021 Reliability Standards Development Plan

2019-2021 Reliability Standards Development Plan

Revisions to the NERC Rules of ProcedureHoward Gugel, Senior Director of Engineering and StandardsLauren Perotti, CounselNERC Board of TrusteesNovember 7, 2018


• Revisions proposed to: Section 600 (Personnel Certification) Section 900 (Training and Education) Appendix 3A (Standard Processes Manual)

• Action: Approve proposed revisions Authorize staff to file with applicable governmental authorities for

approval

Summary


• Proposed revisions respond to FERC directives from July 19, 2018 Order In the Order, FERC approved some of the revisions to Sections 600 and 900

approved by the Board in May 2017 and directed NERC to restore certain sections, consistent with FERC’s denial of their removal, and to correct certain typographical errors

Sections 600 & 900


• Restored Sections: Section 603 (Examination and Maintenance of NERC System Operator

Certification Credentials) Section 604 (Dispute Resolution Process) Section 605 (Disciplinary Action)

• Typographical Corrections: Sections 600 (Personnel Certification) and 900 (Training and Education)

Sections 600 & 900


• Revisions developed to: Improve certain standard processes Clarify and streamline language Make necessary updates and corrections

• Approved by ballot pool on October 29, 2018 81.61% approval 85.96% quorum

Appendix 3A – Standard Processes Manual


• Improvements to standard processes Section 6.0: Process for Conducting Field Tests Section 7.0: Process for Developing an Interpretation Section 8.0: Process for Appealing an Inaction or Inaction Section 11.0: Process for Posting Supporting Technical Documents

Alongside an Approved Reliability Standard



• Clarifications Section 1.0: Introduction Section 3.0: Reliability Standards Program Organization Section 4.0: Process for Developing, Modifying, Withdrawing or Retiring a

Reliability Standard Section 7.0: Process for Developing an Interpretation Section 9.0: Process for Developing a Variance Section 10.0: Processes for Developing a Reliability Standard Related to a

Confidential Issue Section 13.0: Process for Conducting Periodic Reviews of Reliability

Standards



Necessary updates made Section 2.0: Elements of a Reliability Standard Section 16.0: Waiver

• Corrections throughout



• Submit to applicable governmental authorities for approval• Pursue appropriate steps with American National Standards

Institute (ANSI) to maintain standards developer accreditation

Next Steps

Reliability Issues SteeringCommittee Report on Resilience

Peter Brandien, Chair, RISCBoard of Trustees MeetingNovember 7, 2018


• On November 9, 2017, the NERC Board of Trustees directed the RISC to submit a report on resilience.

• This directive was based on NERC assessments and the August 2017 DOE Grid Report regarding reliability and resilience.

• Pursuant to the Board’s directive, the RISC initiated activity to: Develop a framework examining resilience Examine the definition of resilience Examine NERC activities contributing to resilience Identify any additional NERC activities and Standard enhancements

Directive To Examine Resilience


RISC Resilience Report Outline

• The RISC’s Commitment to Evaluate Resilience• RISC Evaluation of Resilience and Development of the Resilience

Framework• Resilience Proceedings by Governmental Authorities• Assessing Risks Associated with Natural Gas• Standing Committee Feedback• Conclusions


RISC Resilience Report

• Consistent with NERC comments in regulatory proceedings and testimony at the FERC Reliability Technical Conference of 2018, the RISC Report concludes: Resilience has consistently been, and should continue to be, a central

component of NERC’s mission to “assure the effective and efficient reduction of risks to the reliability and security of the grid.”

• RISC report was included in the Board of Trustees’ Policy Input Letter and received strong support for the conclusions; the Committee as part of its 2019 Work Plan will evaluate items of recommendation.

• The RISC seeks acceptance of the report by the Board of Trustees.

Reliability Coordination in the Western Interconnection

Melanie Frye

President and Chief Executive Officer

W E S T E R N E L E C T R I C I T Y C O O R D I N A T I N G C O U N C I L

RC Footprints

2


Regional Variance to IRO-002-5

• The Variance Drafting Team includes a representative from Peak and each of the future RCs

• Drafting Team determined original scope of the SAR was too narrow and would not be effective– Identified an alternate approach

• First draft posted for industry comments (comment period closes 11/8/2018)

• Does not require specific model• Identifies what must be achieved by and included in

the model– Validation against the West-wide System Model

3


WECC/NERC Technical Analysis

• WECC and NERC staff jointly working on technical analysis of potential seams issues

– SOL Methodology & Congestion Management

– Coordinated Operations of Phase Shifting Transformers

– Outage Coordination

– RAS Coordination

– Blackstart Restoration

4


RC Initiatives

• RC-to-RC Coordination Group

– Meet twice monthly

– WECC and NERC staff participate

• Industry Transition and Peak Wind Down tracking

• WECC RC Forum

– Held three webinars and one in person for stakeholders to discuss RC issue

– Next Forum tentatively planned for December

5


Key Dates

• CAISO (California footprint) – July 1, 2019

• CAISO (Expanded footprint) – November 1, 2019

• BC Hydro (BC province) – September 2, 2019

• SPP – December 1, 2019

• Peak closure – December 31, 2019

6


Reliability AssessmentsPlan to Address Recommendations from 2017 Reports

Brian Evans-Mongeon, Planning Committee ChairBoard of Trustees MeetingNovember 7, 2018


• Key assessments from 2017 2017 Long-Term Reliability Assessment Special Reliability Assessment: Potential Bulk Power System Impacts Due

to Severe Disruptions on the Natural Gas System

• Recommendations aligned with RISC priorities

Evaluating Emerging Risks Through Assessments


• Objective of Report: Review, assess, and report on the overall electric generation and transmission reliability of the bulk power system (BPS)

• Recommendation: NERC should conduct a comprehensive evaluation of its Reliability Standards to ensure compatibility with nonsynchronous and distributed energy resources as well as for completeness related to essential reliability services, generator performance, system protection and control, and balancing functions

2017 Long-Term Reliability Assessment


• Significant activity in progress Revisions planned for MOD-032 to address data sharing Inverter-Based Resources Task Force (Reliability Guideline and Alert) Standard Authorization Request (SAR) in place to address frequency

control and balancing Planning Committee (PC) assessment of the Bulk Electric System (BES)-

connected dynamic reactive devices

• Next Steps Standing Committee Coordinating Group monitoring progress across

technical committees

2017 Long-Term Reliability Assessment


• Objective of report: Evaluate disruptions of key natural gas facilities and their impact to BPS reliability

• Recommendation: NERC, with industry’s support, should enhance its Reliability Guidelines and/or Standards as necessary to include additional planning and operating requirements for analyzing disruptions to the natural gas infrastructure and their impacts on the reliable operation of the BPS

Special Reliability Assessment


• Steps being taken The PC will oversee the development of a new Reliability Guide that

focuses on including fuel assurance and fuel disruption risk into BPS planning studies. The PC will form a task force to for the creation of a new guide.

The PC will oversee the creation of a Standard Authorization Request (SAR) if appropriate based on the feedback of the task force.

The PC will form a new working group to study and assist with the development of tools and other resources on natural gas interoperability concerns.

NERC will work with Generator Availability Data System Working Group to enhance data collection to provide more granular data around unit availability.

Special Reliability Assessment