February 13, 2019 | westborough, ma

1. February 13, 2019 | westborough, ma Michael I. Henderson Director, regional planning and coordination Planning Advisory Committee Meeting Interregional Planning Update

2. Purpose and Summary • Purpose: Summarize ISO New England’s interregional planning activities • Activities • Department of Energy Studies • Eastern Interconnection Planning Collaborative (EIPC) • Electric Reliability Organization (ERO-NERC) • Northeast Power Coordinating Council (NPCC) • ISO/RTO Council (IRC) • Northeastern ISO/RTO Planning Coordination Protocol and Order 1000

3. InterregionalPlanningandCoordinationActivities Eastern Interconnection Planning Collaborative(EIPC) U.S. Departmentof Energy (DOE) ElectricReliability Organization(ERO-NERC) Northeastern ISO/RTOPlanning Coordination Protocol NortheastPower Coordinating Council(NPCC) ISO/RTOCouncil (IRC)

4. National Planning Activities • Department of Energy conducts studies that advance the technical state of the art and inform stakeholders • The DOE conducts studies examining the technical effects of large scale development of variable energy resources • Eastern Interconnection Planning Collaborative (EIPC) coordinates data and performs studies by regional Planning Authorities • Power flow “roll-up” modeling and analysis of combined Eastern Interconnection Planning Coordinator system plans • Stability modeling for frequency response analysis • Possible assumption of Eastern Interconnection network modeling responsibilities • Production cost model of the Eastern Interconnection (EI) developed • Support to EISPC/NCEP and DOE • Issued “State of the Eastern Interconnection” report

5. Electric Reliability Organization • FERC established the North American Electric Reliability Corporation (NERC) as the ERO for developing reliability standards and enforcing them • The ISO complies with applicable standards • NERC issues reports on the reliability and security of the North American electric power system covering • Resource adequacy • Supply and demand • Key issues • Special studies

6. Electric Reliability Organization LTRA • The 2018 NERC Long Term Reliability Assessment (LTRA) - a report that provides a wide-area perspective on the adequacy of the generation, demand-side resources, and transmission systems necessary to meet system reliability needs over the next decade • Key findings: • ERCOT, MRO-MISO, and NPCC-Ontario are projected to be below the Reference Reserve Margin Level; probabilistic assessments of future conditions can highlight additional reliability challenges • Reliance on natural gas generation increases in some areas with continuing resource mix changes, and fuel assurance mechanisms are being developed • Frequency response is expected to remain adequate through 2022 • Increasing solar and wind resources requires more flexible capacity to support ramp requirements • Over 30 GW of new distributed solar photovoltaic is expected by the end of 2023 impact system planning, forecasting, and modeling needs

7. Electric Reliability Organization LTRA, cont. • Based on the assessment’s key findings, NERC recommendations include: • Enhance NERC’s Reliability Assessment Process • Develop Guidelines to Assess Fuel Limitations and Disruption Scenarios • Improve Interconnection Frequency Response Modeling • Ensure System Studies Incorporate DERs • Flexible Ramping Resources Needed to Offset Variable Energy Production

8. Electric Reliability Organization LTRA, cont. • NERC evaluated the following emerging issues that have the potential to impact reliability in the 10-year horizon • Bulk power storage • Reliability coordination in the Western Interconnection • Potential risk of significant electricity demand growth • Reactive power requirements for transmission-connected devices • System restoration • Potential impact to system strength and fault current contributions • Please see the LTRA report online at: https://www.nerc.com/pa/RAPA/ra/Reliability%20Assessments%20DL/NERC_LTRA_2018_12202018.pdf

9. NERC’s Seven Reliability Regions

10. Northeast Power Coordinating Council • NPCC is one of seven regional reliability entities under NERC covering New England, New York, Ontario, Quebec and the Maritime provinces • NPCC develops regional reliability standards, assesses compliance and coordinates planning, design and operation of the systems in its region, and assesses resource adequacy • ISO-NE participates fully in NPCC interregional tasks and studies • System planning assessments are well coordinated • Regional improvements do not adversely affect neighbors • The ISO has certified that it met the requirements of NPCC Directory #1 for both resource adequacy and transmission adequacy

11. ISO/RTO Council

12. ISO/RTO Council, cont. • Industry group of ISO/RTOs representing the US and Canada • Works collaboratively to develop processes, tools and standard methods for improving system planning techniques and competitive electric markets in North America • Discusses challenges of integrating demand resources, wind generation and photovoltaics • Coordinates on regulatory filings • NERC task forces and committees • Leverages the efforts of NERC standards and studies addressing key issues, including grid transformation

13. Northeastern ISO/RTOs Planning Coordination Protocol • ISO-NE, NYISO and PJM follow a joint planning protocol to coordinate planning and address planning seams • The Joint ISO Planning Committee (JIPC) performs planning studies through an open stakeholder process • The Inter-Area Planning Stakeholder Advisory Committee (IPSAC) reviews study scopes of work, assumptions, and draft results • PAC members are all considered members of the IPSAC

14. Northeastern ISO/RTOs Planning Coordination Protocol – Achievements and Ongoing Activities • Comply with interregional requirements of the Planning Protocol • Continue coordinating and exchanging databases • Review transmission needs and solutions proposed by neighboring systems • Continue coordination of Interconnection Queue, Long Term Firm Transmission Service, and Transmission Projects that potentially affect interregional system performance • Identify opportunities for interregional system improvements and advise the IPSAC • To date, the interregional planning process has not identified the need for new interregional transmission projects through the Northeastern ISO/RTO Planning Coordination Protocol • Coordinate studies across ISO/RTO boundaries • Continue Interregional Planning activities and issue the next Northeast Coordinated System Plan 2nd Quarter 2020

15. Summary • ISO New England planning activities are closely coordinated with its neighbors and across the Eastern Interconnection • Interregional planning and coordination activities have been discussed with stakeholders • Interregional planning and coordination activities include: • Assessing interregional system performance • Coordinating system plans • Sharing planning methods and tools • Conducting interregional production cost studies • Assessing the effects of proposed resource additions and potential generator retirements • Identifying and addressing variable resource integration issues • Examining interregional fuel diversity issues