Major Changes in NERC Operating Policies

1. Major Changes in NERC Operating Policies 1999 SERC System Operators Conference

2. Terms Used in the Policies • Adjacent Control Areas: A OR B Pool Directly Interconnected Interconnected via multi-party agreement or transmission tariff 1999 SERC System Operators Conference

3. Terms Used in the Policies • Interchange Distribution Calculator For the Eastern Interconnection: Security Coordinator can estimate how much of transaction ABC is flowing across interface (flowgate) XYZ All Interchange Transactions iIDC PTDFs 1999 SERC System Operators Conference

4. Terms Used in the Policies • Intermediary Control Area A C D B A is the Source Control Area and D is the Sink Control Area and B and C are Intermediary Control Areas 1999 SERC System Operators Conference

5. Terms Used in the Policies • Power Transfer Distribution Factor A PTDF (A-B) = 28% B C 1999 SERC System Operators Conference

6. Terms Used in the Policies • Interchange Schedule - The planned interchange between two adjacent control areas that results from implementation of one or more interchange transaction(s). • Interchange Transaction - A transaction that crosses a Control Area boundary • Sink Control Area - The control area in which the sink (load) is located for an interchange transaction (This will be the Receiving Control Area for the resulting interchange schedule) • Source Control Area- The control area in which the source (generation) is located for an interchange transaction. 1999 SERC System Operators Conference

7. Policy 1F Changes • Not Significant!!!!!! Added sheets for years 1999 and 2000 showing each year’s respective holidays as off-peak days and showing each year’s begin and end dates for daylight savings time. 1999 SERC System Operators Conference

8. Policy 3 Changes • Transaction A deal has been made between a buyer and a seller to deliver the goods for $ XXXX.xx • Schedule The dates and times for the deliveries to get the goods from the seller to the buyer are on the calendar and the scheduled deliveries will take place at those dates and times…… if conditions permit of course! 1999 SERC System Operators Conference

9. Policy 3 Changes A C B An interchange transaction with Control Area A as the source and Control Area C as the sink requires two interchange schedules to be implemented: Schedule A-B where Control Area A is the sending control area (SCA) and Control Area B is the receiving control area (RCA) and Schedule B-C where Control Area B is the SCA and Control Area C is the RCA. 1999 SERC System Operators Conference

10. Policy 3 Changes TransCo A C B However an interchange transaction with Control Area A as the source and Control Area C as the sink where Control Areas A, B, and C are parties to a transmission agreement or tariff (e.g. TRANSCO agreement) only requires one interchange schedule to be implemented: Schedule A-C where Control Area A is the sending control area (SCA) and Control Area C isthe receiving control area (RCA) 1999 SERC System Operators Conference

11. " Policy 3 Changes • Curtailing Interchange Transactions Source and Sink must quickly contact each other, confirm the curtailment, and immediately begin adjusting their corresponding interchange schedules with their adjacent control areas. A B 1999 SERC System Operators Conference

12. " Policy 3 Changes • Curtailing Interchange Transactions If initiated by the Security Coordinator, SC must notify the Sink who must in turn contact the Source and the PSE that submitted the tag to directly implement and confirm the curtailment A B 1999 SERC System Operators Conference

13. Policy 3 Changes • Canceling Interchange Transactions For Interchange Transactions in progress, the PSE shall contact the Sink to which it submitted the tag. The Sink then contacts the Source and the Sink’s Security Coordinator. If the Source and Sink are not adjacent, they contact the Adjacent Control Areas also. 1999 SERC System Operators Conference

14. Policy 3A Changes • Tagging The PSE serving the load shall be responsible for providing the interchange transaction tag. 1999 SERC System Operators Conference

15. Policy 3A Changes • Tagging All transactions using point-to-point transmission service and certain interchange schedules shall be tagged. • Interchange Transactions • Transactions that are entirely within a Control Area • Dynamic Interchange Schedules (Sink responsibility) • Bilateral Inadvertent Interchange payback schedules (Sink responsibility) 1999 SERC System Operators Conference

16. Policy 3A Changes • Interchange Transactions used to supply Operating Reserves Interchange transactions used to handle disturbances via reserve sharing agreements or other arrangements are exempt from tagging for 60 minutes from the time at which the reserves are requested. 1999 SERC System Operators Conference

17. Policy 3A Changes • To whom do I provide the tag? • Eastern Interconnection • Control Areas and Transmission Providers on the Scheduling Path • Western Interconnection • Control Areas and Transmission Providers on the Scheduling Path • PSEs who are parties to the transaction 1999 SERC System Operators Conference

18. Policy 3A Changes • Electronic Tagging Effective May ???, 1999, the PSE shall submit the tag in electronic format so that: 1) Tag correctness can be confirmed within ten minutes…..and thus, 2) The TSPs can assess the transaction request within a timely manner. Note that the Control Area must provide an alternate means of tag receipt should electronic tag receipt become unavailable 1999 SERC System Operators Conference

19. Policy 3A Changes • Waiver to the 20 minute rule for Interchange Transaction request submission: Waived if immediate changes to the interchange transactions are required to mitigate an Operating Security Limit violation or meet the NERC Disturbance Control Standard 1999 SERC System Operators Conference

20. Policy 3A Changes • Confirmation of Tag Receipt < 10 minutes <=> the time alloted for the Sink to confirm with the PSE that he has received the tag Confirmation = Approval if no notification of denial 1999 SERC System Operators Conference

21. Policy 3A Changes • Transaction Confirmation The Sink shall initiate the confirmation of each Interchange Transaction tag I.D. with the corresponding Source before the transaction is implemented. 1999 SERC System Operators Conference

22. Policy 3A Changes • Transaction Implementation The Sink initiates implementation of the Interchange Transaction by by incorporating it into the Sink Control Area’s Interchange Schedule that it establishes with the Adjacent Control Area. 1999 SERC System Operators Conference

23. Policy 3B Changes • Control Areas must be adjacent • SCA and RCA must provide details of their schedules via ISN • The Sink shall provide its Security Coordinator with the information from the Interchange Transaction tag electronically for each approved Interchange Transaction. 1999 SERC System Operators Conference

24. Policy 3B Changes • Bilateral Inadvertent Interchange Payback Sink and Source must agree on magnitude, scheduling path, start and end times, ramp start time and duration of all interchange schedules intended to pay back inadvertent interchange bilaterally Note that the Sink shall provide this information to its SecurityCoordinator 1999 SERC System Operators Conference

25. Policy 3B Changes • Dynamic Schedules Sink, Source, and Intermediary Control Areasmust agree on average energy profile, scheduling path, start and end times, and duration of all dynamic schedules. Note that the Sink shall provide this information to its SecurityCoordinator 1999 SERC System Operators Conference

26. Policy 8A Changes • Operating Authority definition: An entity which: • has the primary responsibility and authority for the reliable, real-time generation control and/or real-time operation of the interconnected bulk electric transmission system, and • is accountable to NERC and its Regional Councils for complying with the NERC Operating Policies and Regional Policies Examples: Control Areas, Security Coordinators, ISOs 1999 SERC System Operators Conference

27. Policy 8B Changes Old Policy 8B Selection and Staffing New Policy 8B Training 1999 SERC System Operators Conference

28. New Policy 8B • NERC requires each Control Area and Purchasing-Selling EntityOperating Authority to provide its System Operators and System Personnel with a coordinated training program designed to promote reliable operation. I wish they had left Purchasing- Selling Entity in the requirement 1999 SERC System Operators Conference

29. New Policy 8B • Added: “Operating Authorities should include disturbance reports and reports of other unusual occurrences in their training program” • This is cool …… promotes use of operating experience feedback. Nuclear Plants use this practice to a great advantage 1999 SERC System Operators Conference

30. New Policy 8C NERC System Operator Certification 1999 SERC System Operators Conference

31. Certification Scope • The certification exam will test the operator’s core competencies with respect to the NERC Operating Policies and the basic principles of interconnected systems operation Introduction to the NERC Policies1999 SERC System Operators Conference

32. Compliance • December 31, 1999 each Operating Authority must have 1 Certified Operator on shift continuously • December 31, 2000 each Operating Authority must staff all operating positions with Certified Operators (unless the operator is working in a non-independent position under direct authority of a Certified Operator) Introduction to the NERC Policies1999 SERC System Operators Conference

33. ? CLUE QUESTIONS?