NERC Operating Committee Activities Update December 2013 and March 2014 Mtg

1. NERC Operating Committee Activities UpdateDecember 2013 and March 2014 Mtg

2. Current Activity Summary 2 • Items of Interest • New NERC Reliability Guidelines – “Generating Unit Operations during Complete Loss of Communications” and Geomagnetic Disturbances Planning Guide • Synchrophasers – Now and in the future • NERC Alerts • NERC defines SPS and RAS • GridEX II – who is participating? • Seasonal Assessment Changes – variable generation performance • Performance Assessments • ERO Top Priority Reliability Risks • Essential Reliability Services Task Force • Lessons Learned Cold Weather Event • BPS Element Outage Coordination and Governor Frequency Response • NERC Monthly News Letter

3. Current Activity Summary 3 • Items of Interest • NERC FRR Standard BAL-003-1 Implementation Status • NERC Standard BAL-001-2 Update • NERC Standard BAL-002-2 Update • Periodic Review BAL-004, 005, & 006 Update

4. Current Activity Summary 4 • Items of Interest • NERC Reliability Guideline • Generating Unit Operations during Complete Loss of Communications • Posted for 45 day Industry Comment • Anticipate NERC OC approval mid 2014 • Geomagnetic Disturbance Planning Guideline • A Reliability Standard has been developed and submitted to FERC that requires the development of operating procedures to mitigate a space weather event. Currently, the standard drafting team is attempting to define the size of the space weather event to plan for through the development of a guideline.

5. Current Activity Summary 5 • Items of Interest • SynchroPhasor Initiative • ~ 1,700 networked phasor measurement units on the BES • Provides on-line, wide-area visualization and oscillation detection • Provides off-line model validation and frequency analysis • What’s ahead • Base lining and data mining • Alarm and alert settings • Calibrating state estimators • Congestion Management • Operator training using synchrophasor data in simulators • What is the value of SunchroPhasor to you?

6. Current Activity Summary 6 • Items of Interest • NERC Alerts • The OC is concerned that the right message is being communicated on a timely base. In addition, the OC expressed a concern that the alerts are typically issued to compliance representatives and not to operations management. Registered entities can have several representatives who receive the alert. • NERC Defines SPS and RAS • A report titled “Special Protection Systems (SPS) and Remedial Action Schemes (RAS) Assessment of Definition, Regional Practices, and Application of Related Standards” was issued dated April 2013. The special RAS/SPS Assessment was a result of a Standards Committee Report Request for Research and will be used to support the Reliability Standards Project 2010-05.2 drafting team, scheduled to begin work in Q1 of 2014. • GridEX II • Approximately 200 organizations participated in the GridEX II exercise (approximately 1900 participants) (more than doubles Grid EX I). The objectives of the exercise were to: 1) Communicate with each other, 2) walk through crisis response and 3) gather lessons learned

7. Current Activity Summary 7 • Items of Interest • Seasonal Assessments • The amount of distributed generation is increasing there have been disconnection during frequency events • Short-term – NERC should engage in current efforts to revise Interconnection standards with, at minimum, adopting minimum tolerance thresholds for variable resources. • Long-Term – develop guidelines as a reference with specific requirements. • Performance Assessments • NERC should develop a new approach and framework for the long-term assessment of essential reliability services to supplement existing resource adequacy assessments. • NERC should develop a technical reference document on essential reliability services, which include frequency response, inertia, voltage stability, ramping capability, and other operational requirements needed to ensure BPS reliability.

8. Current Activity Summary 8 • Items of Interest • ERO Top Priority Reliability Risks • Summary of Recommendations 1. Continue collaboration between NERC, the RISC, and Standing Committee leadership to develop a data‐driven reliability risk strategy development process that integrates with overall electric reliability organization (ERO) planning (currently being developed as the “Reliability Risk Control Process”). 2. Continue existing NERC efforts to control the risk associated with the high‐ and medium‐priority issues, as the efforts are well aligned and appropriately scoped relative to the priorities assigned. 3. Continue collaboration between NERC and the Technical Committees to develop measures for use in determining the success and ongoing performance of those existing risk control efforts.

9. Current Activity Summary 9 • Items of Interest • ERO Top Priority Reliability Risks - Continue • Summary of Recommendations 4. A new high‐priority issue based on consolidating several other related issues (entitled “Adaptation and Planning for Change”) should be processed through the post‐prioritization steps of the “Reliability Risk Control Process.” 5. Additionally, the set of issues contained in “Operational Modeling and Model Inputs” should also be processed through the post‐prioritization steps of the “Reliability Risk Control Process.”

10. Current Activity Summary 10 • Items of Interest • Essential Reliability Services Task Force (ERSTF) • The mix of generation is expected to change considerably as federal policies and regulation are developed and implemented by the states and provinces in North America. • It is imperative that operators and planners understand the potential and cumulative reliability impacts associated with the resource change and mix, potential capacity reductions, increase in demand-side resources and distributed generation, and more reliance on natural gas-fired generation. • The ERSTF has a multi-faceted purpose that includes technical foundation to the Essential Reliability Service (ERS), educate and inform industry, regulators and the public about ERS for both real-time operations and planning horizons. • Specifically, the ERSTF will reconcile a collection of analytical approaches for understanding potential reliability impacts as a result of the change in generation mix (additional renewable, retirements of large scale generation, etc) and how those impacts can affect system configuration, composition and ERS.

11. Current Activity Summary 11 • Items of Interest • Lessons Learned Cold Weather Event • Guideline impact • New lessons learned have been posted to the NERC website under the “Event Analysis – Lessons Learned” tab.

12. Current Activity Summary 12 • Items of Interest • BPS Element Outage Coordination and Governor Frequency Response • NERC Monthly News Letter

13. Current Activity Summary 13 • Items of Interest • BAL-003-1 Implementation Status • Awaiting Rulemaking Order from FERC • Here are the words for implementing BAL-003-1 • Compliance with BAL-003-1 shall be implemented over a two-year period, as follows:  • In those jurisdictions where regulatory approval is required, Requirements R2, R3 and R4 of this standard shall become effective the first calendar day of the first calendar quarter 12 months after applicable regulatory approval.  In those jurisdictions where no regulatory approval is required, Requirements R2, R3 and R4 of this standard shall become effective the first calendar day of the first calendar quarter 12 months after Board of Trustees adoption.  • In those jurisdictions where regulatory approval is required, Requirements R1 of this standard shall become effective the first calendar day of the first calendar quarter 24 months after applicable regulatory approval. In those jurisdictions where no regulatory approval is required, Requirements R1 of this standard shall become effective the first calendar day of the first calendar quarter 24 months after Board of Trustees adoption.  • Requirement R1 cannot be implemented prior to the addition of Frequency Response Sharing Group to the Compliance Registry.  

14. Current Activity Summary 14 • Items of Interest • BAL-001-2 Status Update • To be filed ~ April 2, 2014 • BAL-002-2 Status Update • Next posting for 45 day review with concurrent vote ~ March 31, 2014 • Periodic Review Team BAL-004, 005, & 006 Status Update • PRT recommendation to eliminate BAL-004 • PRT recommendations on BAL-005 and BAL-006 currently posted for comments

15. Questions