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Protecting Grid Reliability

Protecting Grid Reliability. North American Electric Reliability Council. NERC Regions. NERC’s History. Formed in 1968 as a VOLUNTARY organization to promote reliability of bulk power systems throughout North America Members are 10 Regional Councils

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Protecting Grid Reliability

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  1. Protecting Grid Reliability

  2. North American Electric Reliability Council NERC Regions

  3. NERC’s History • Formed in 1968 as a VOLUNTARY organization to promote reliability of bulk power systems throughout North America • Members are 10 Regional Councils • Canadian utilities are members of three Regional Councils • NERC sets reliability standards for the high voltage electric grids • Standards MANDATORY but not ENFORCEABLE

  4. Apr ‘96 – FERC Orders Open Access More players, more transactions: a 100-fold increase over last 5 years Transmission everywhere highly loaded Economic pressure to bend reliability rules Violations of rules going unpunished Reliability of grids at risk Beginnings of Change

  5. Self-Regulated Reliability Org. • Sufficient authority to enforce compliance. • Recognition needed as a self-regulatory organization (SRO) by government bodies in Canada, the U.S. and Mexico. • Authority to collect funds to support its SRO function. • Use NASD as a model.

  6. Mission and Functions • Develop and enforce reliability standards for high voltage grids in North America • Assess and report on supply adequacy • International scope and perspective • Only organization with this responsibility for North America

  7. Regional Relationships • Regional organizations essential part of implementation and enforcement function. • Strong positive working relations and shared responsibilities with regional organizations, including evolving ISOs and RTOs. • Delegation agreements between NAERO and each regional organization.

  8. Industry Participation & Excellence • Voluntary participation by technical personnel is indispensable. • Encourage voluntary efforts of the industry’s best technical experts. • Ensure “balanced” representation on all NERC committees. • Government regulators and other agencies encouraged to participate.

  9. Public Participation • Transparency, openness and accessibility essential to success. • Maximize participation among members and the public. • Board and Committee meetings open to the public. • Minutes of all meetings made public. • Independent review every 5 years.

  10. 100 MW 7:00 7:20 7:40 8:00 Operating Committee • Develop Operating Standards • Ensure security or short-term reliability of interconnected transmission grids

  11. www.nerc.com/~/oc/opermanl.html

  12. Develop Planning Standards • Ensure future reliability of interconnected transmission grids • Assess and report on long-term adequacy Planning Committee

  13. Separate and independent from Standing Committees • Three key functions: • Compliance review process • Enforcement process (including a penalty structure) • System Operator Certification Process Compliance Enforcement Program

  14. Board of Trustees • Board of Trustees • Nine independent members • NERC President • Standing Committees • Broad Sector representation • Subcommittees • Working Groups • Task Forces Stakeholders Staff Operating Committee Planning Committee Operating Committee CIP Committee NERC Organization

  15. 14 RC 3 RC 1 RC Communications Network

  16. Montreal Montreal Ottawa Toronto Detroit Boston Buffalo Boston Cleveland New York City & Long Island New York City & Long Island Columbus BLACKOUT 2003 – August 14 ~ 4:15 PM EDT August 14 – 8:14 PM ~ 4 hours AFTER August 13 – 8:29 PM ~ 20 hours BEFORE Defense Meteorological Satellite Program Images, courtesy of the United States Air Force Weather Agency

  17. Questions ???

  18. Legislation Needed in U.S. • FERC jurisdiction over reliability in U.S. • Designate new ERO to set and enforce reliability standards in the U.S. • Approve delegation to regional entities • Define role for States • Coordination with RTOs • Coordination with Canada and Mexico • Antitrust protection

  19. International Arrangements • Industry SRO develops standards to apply throughout North America • Government role to approve standards, hear appeals • International framework to assure coordination between U.S., Canada, and Mexico • Avoid dominance by FERC

  20. The Right Path = NAERO • Legislation (U.S.) to provide grant of authority • Similar grants from Canadian governments • Industry SRO with an independent board can do the best job • Emphasis on openness and due process • Everyone plays by the same rules • Send best people to do their best job

  21. Issues Ahead… • Adequacy and Performance • Coordination & Control Activities • Infrastructure Security • Monitoring, Assessing, & Enforcement • Congestion Management • Data Interchange • Send best people to do their best job

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