NERC Reliability Update Power System Reliability Regulation Overview

Transcription

1 NERC Reliability Update Power System Reliability Regulation Overview Herb Schrayshuen Principal Power Advisors, LLC November 3, 2014 CNY Engineering Expo 1

2 Learning Objectives By the conclusion of this session you will be able to understand and explain to others: The background of reliability regulation for electric utilities The purpose of the Electric Reliability Organization (ERO) The regulatory mechanisms used How this regulatory process works and responds to risks 2

3 The North America Power System 3

4 Change is often driven by bad events 1965 Blackout Other blackouts 2003 Blackout 2005 Energy Policy Act (section 215 of the FPA) Creation of the ERO 2007 NERC Standards become mandatory Blackouts since the introduction of mandatory standards 4

5 NERC the ERO The ERO s key programs, are based on four pillars of continued success: Reliability to address events and identifiable risks, Assurance to provide assurance to the public, industry, and government Learning to promote learning and continuous improvement Risk-based Approach to focus attention, resources, and actions on issues most important to bulk power system reliability. 5

6 NERC Support Structure Paid for by an assessment to customers Net Energy for Load (NEL) Budget approved by FERC Springs from the former voluntary approach to coordination among utilities Relies on the expertise of the industry In many ways is still a self-regulatory structure But with federal oversight 6

7 Risk Based Regulation Identify Risks Events Analysis Audits Focus standards requirements on the risks Audit to the risks identified Audit those entities that pose the greatest risk to reliability. Help utilities be compliant and mitigate risks. 7

8 The NERC Regions 8

9 Based on Standards The process is based on a standards driven regulation scheme Compliance with standards is mandatory 9

10 Standards Development Process NERC North American Reliability Standards are developed using an industry-driven, ANSI-accredited development process The purpose of the process is to ensure the process is open to all entities affected by the reliability of the bulk power system The process is transparent to the public Industry has the opportunity to comment and develop consensus regarding the content of each standard The process is intended to fairly balance the interests of all stakeholders 10

11 What is a Reliability Standard? A Standard is a group of specific, mandatory, results based, requirements in a specific topical area that are necessary for for the reliable operation of the Bulk Power System The scope of authority of a standard is based on the premise that the requirements are needed for the reliable operation of Bulk Power System Facilities (including cyber security protection) For future Facilities this includes the design of planned additions or modifications to such Facilities to the extent necessary for the reliable operation of the Bulk Power System 11

12 Constraints on Standards A Reliability Standard may not include any requirement to directly require the enlargement of Bulk Power System Facilities or to construct new transmission capacity or generation capacity. A Reliability Standard is effective in the United States after approval by the Federal Energy Regulatory Commission A Reliability Standard is not effective in other jurisdictions until made or allowed to become effective by the Applicable Governmental Authority (E.g. Canadian Provinces) 12

13 Parts of a Reliability Standard Title: A brief, description of the topical area Number: A unique identification number Purpose: The reliability outcome to be achieved through compliance with the Requirements of the Reliability Standard. Applicability: Identifies which functional entities are assigned reliability requirements. Effective Dates: Identification of the date or pre-conditions determining when each Requirement becomes effective. Requirement: An explicit statement that identifies the action or outcome that must be achieved, any conditions to achieving the action or outcome, and the reliability-related benefit of the action or outcome Compliance Elements: Elements to aid compliance monitoring and enforcement 13

14 Portions of a Reliability Standard Measure: Provides identification of the evidence or types of evidence that may demonstrate compliance with the associated requirement. Violation Risk Factors and Violation Severity Levels Violation Risk Factors -VRFs identify the potential reliability significance of noncompliance with each requirement. Violation Severity Levels - VSLs define the degree to which compliance with a requirement was not achieved. 14

15 Applicability Standards requirements apply based on functions Functions Generator Owner, Operator Transmission Owner, Operator Balancing Authority Reliability Coordinator Planning Authority 15

16 Standards Families Examples Balancing BAL Critical Infrastructure Protection (CIP) Communications (COM) Emergency Preparedness and Operations (EOP) Facility Design, Connection and Maintenance (FAC) Protection and Control (PRC) Transmission Operations (TOP) Transmission Planning (TPL) 16

17 The Update New Standards for: Physical Security Geomagnetic Disturbance Planning Critical Infrastructure protection Balancing Protection and Controls New Definition for what is included in the Bulk Electric System 17

18 Where to go for more information? (the reliability tabs) Regional links: Florida Reliability Coordinating Council (FRCC) Midwest Reliability Organization (MRO) Northeast Power Coordinating Council (NPCC) ReliabilityFirst (RF) SERC Reliability Corporation (SERC) Southwest Power Pool, RE (SPP) Texas Reliability Entity (TRE) Western Electricity Coordinating Council (WECC) 18

19 Questions 19