NERC Policy 9: Security Coordinator Procedures

1. NERC Policy 9:Security Coordinator Procedures Greg Stone Duke Power A Duke Energy Company

2. NERC Policy 9: Security Coordinator Procedures • Definitions • Origins • History • Recent Developments • Review Policy Sections • Future

3. NERC Policy 9: Security Coordinator Procedures • Definitions: • CA: Control Areas • FERC: Federal Energy Regulatory Commission • NERC: North American Electric Reliability Council • PSE: Purchasing Selling Entity • TLR: Transmission Loading Relief • TP: Transmission Provider

4. NERC Policy 9: Security Coordinator Procedures • Origins: • Result of NERC Initiatives adopted to address rapidly evolving industry • Interim Policy adopted for summer, 1997 • Initially only addressed parallel flows • Prompted by several “near misses” in 1996

5. NERC Policy 9: Security Coordinator Procedures • History: • Summer 1997: Develop TLR procedures & tools for implementation - iIDC, TLR Client • Spring, 1998: FERC rules on NSP filing • June 5, 1998: NERC files TLR with FERC • June 12, 1998: FERC rules use OK, for now

6. NERC Policy 9: Security Coordinator Procedures • History (cont.): • September, 1998: Policy 9 becomes “official” • October, 1998: NERC refiles TLR with FERC • December 16, 1998: FERC TLR Order

7. NERC Policy 9: Security Coordinator Procedures • Recent Developments: • Policy 9 out for “Due Process” • FERC TLR Order: • NERC must “file” TLR • NERC must respond to fundamental questions • TPs must file intention to amend tariff to include TLR • TPs must file plans to address comparability issues for this summer

8. NERC Policy 9: Security Coordinator Procedures • Policy Review: • A. Next Day Operations • B. Current Day Operations - Generation • C. Current Day Operations - Transmission All subject to change

9. NERC Policy 9: Security Coordinator Procedures • Policy Review: • A. Next Day Operations • Exchange of operational information • System Studies • Communication of identified problems

10. NERC Policy 9: Security Coordinator Procedures • Policy Review: • B. Current Day Operations - Generation • Generation Deficiency Alerts • Level 1 - May not have required reserves • Level 2 - Emergency Procedures • Level 3 - Firm load curtailment

11. NERC Policy 9: Security Coordinator Procedures • Policy Review: • C. Current Day Operations - Transmission • Transmission Loading Relief • Share the Pain • Moving from “Weakest Link” to “Constrained Path” • Dependent on proper tags/tagging information/electronic tagging • Constrained Path due for implementation after all electronic tagging - June, 1999 • What is Constrained Path Methodology

12. NERC Policy 9: Security Coordinator Procedures • Policy Review (cont.): • C. Current Day Operations - Transmission • Transmission Loading Relief • Level 1: Warning of Potential Problem • Level 2: Approaching limit - Hold additional business • Level 3: Overload - Reduce non-firm business • Level 4: Overload - Redispatch or Reconfigure • Level 5: Overload - Reduce firm business • Level 6: Overload - Emergency Actions • Level 0: Return to Normal

13. NERC Policy 9: Security Coordinator Procedures • Policy Review (cont.): • C. Current Day Operations - Transmission • Publicly Available Information • Distribution Factor Viewer • “Real Time” Log • “Historical” Log • Market Redispatch Pilot