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NERC. Formed in 1968 Mission: To improve the reliability of the North American bulk power system Named the Electric Reliability Organization in July 2006 in the U.S. Working to gain similar recognition in Canada. “Improve Reliability” through…. Standards Enforcement Readiness Program
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NERC • Formed in 1968 • Mission: To improve the reliability of the North American bulk power system • Named the Electric Reliability Organization in July 2006 in the U.S. • Working to gain similar recognition in Canada
“Improve Reliability” through… • Standards • Enforcement • Readiness Program • Situation Awareness • Training • Assessments
…and through the “Virtuous Circle” • Standards • Enforcement • Readiness Program • Situation Awareness • Training • Assessments
The ERO’s FirstLong-Term Reliability Assessment 2006 - 2015
NERC’s Reliability Assessment Is… • A compilation of 8 regional forecasts Plus…
NERC’s Reliability Assessment Is… • A compilation of 8 regional forecasts • Self assessments • Peer review • Independent judgment • Key findings • Actions needed
Four Key Findings Slow Transmission Expansion Declining Capacity Margins Uncertain Fuel Supply & Delivery Aging Workforce
Capacity Capacity: U.S.
Capacity Capacity: Canada
Capacity Demand Increasing Faster Than Capacity
Capacity Capacity Margins
Capacity Capacity: Action • Utilities: • Commit to more resources • Pursue demand response programs • Coordinate capacity and transmission plans • NERC: • Review weather experience
Transmission Demand Increasing Faster Then Transmission Construction
Transmission Transmission: Action • DOE: Designate National Interest Electric Transmission Corridors • RTOs and transmission owners: Create longer-term vision for transmission grid • Regulators: • Remove barriers • Encourage investment • NERC: Develop standards for assessing transmission performance
Fuel Fuels • Critical to electric supply reliability • Almost 50% is natural gas-fired • Growing dependence on gas in Texas, Florida, Midwest, Northeast, and West • Gas supply can be interrupted in favor of home heating needs • Mid-west coal delivery improving
Fuel Fuels: Action • Utilities: • Evaluate fuel supply and delivery reliability • Assess the impact of fuel transportation interruptions • Strengthen fuel contracts • Improve communications between electricity and gas pipeline operators
Workforce Workforce • Retiring “boomers” • Fewer engineering students • Fewer universities offering power system education
Workforce Workforce: Action • Utilities: • Retain aging personnel and establish mentoring programs to transfer knowledge • Encourage students to pursue engineering careers • Sponsor colleges and universities to offer power system studies