Branden Sudduth WECC Staff

1. Branden SudduthWECC Staff Bulk Electric System (BES) Definition Update January 31, 2013 JGC Meeting

2. Overview • Staff Points of Contact • “Core” BES Definition • FERC Order • BES Definition Processes • Definitional Exclusion Reporting Process • Rules of Procedure Exception Process • Local Distribution Process

3. WECC Staff Contacts • Application of “Core” Definition and Definitional Exclusion Submittals, De-registration Process • Richard Mabry: • Email: rmabry@wecc.biz, Phone: 801.883.6847 • Rules of Procedure Exception Process • Kenneth Wilson: • Email: ken@wecc.biz, Phone: 801.883.6886

4. BES Definition – Base “… all Transmission Elements operated at 100 kV or higher and Real and Reactive Power resources connected at 100 kV or higher. This does not include facilities used in the local distribution of electric energy.”

5. BES Definition – Definitional Inclusions and Exclusions • The BES Definition provides specific criteria for “definitional” inclusions and exclusions • I1 – I5, E1 – E4 • These do not need to be submitted through the Rules of Procedure (RoP) Exception Process

6. BES Definition - History • Approved by NERC Board of Trustees on January 19, 2012 • FERC proposed to approve definition and revisions to the Rules of Procedure in its June 22, 2012 Notice of Proposed Rulemaking • FERC final approval December 20, 2012

7. Effective Dates • Definition effective July 1, 2013 • Compliance for newly added facilities July 1, 2015

8. FERC Order Changes • Local Distribution • E1 and E3 do not apply to generation tie lines • 100 kV minimum on local networks removed • FERC can designate elements as part of the BES on their own • Registered Entities obligated to notify Regional Entity of elements which meet the definitional exclusion criteria

9. BES Definition Guidance Document • Provides guidance on application of new definition • Provides explanations and examples for each inclusion and exclusion.

10. BES Definition Guidance Document • Will be revised based on FERC order and comments received (expected in March) • NERC Informational webinar after release of document

11. Definitional Exclusion Reporting Process • Anticipated process to be communicated in coming months (Webinars, Special Outreach, etc.) • Plan to work with WICF Steering Committee on process • Plan to begin accepting notifications in Spring

12. BES Definition “ Elements may be included or excluded on a case-by-case basis through the Rules of Procedure exception process.”

13. RoP Exception Process • Entity submits request • Regional Entity accepts or rejects (submitting entity can appeal) • If accepted, Regional Entity performs substantive review • Regional Entity recommends approval or disapproval (if recommending disapproval, forward request to Technical Review Panel (TRP)) • NERC makes final decision (submitting entity can appeal)

14. Ongoing RoP Exception Process Activities • WECC and other Regional Entities working to develop software solution for handling RoP exception requests • Registered entity training/outreach to come • Submittal process • Acceptable file formats • Start dates • Guidance on detailed information for Section III

15. Local Distribution • Submit requests directly to FERC • FERC will use the 7 Factor Test (Order 888) to determine applicability

16. Branden Sudduth branden@wecc.biz 801.883.6888 Questions?