NPCC 2015 Corporate Goals Approved by Board of Directors 2/4/15

Transcription

1 NPCC 2015 Corporate Goals Approved by Board of Directors 2/4/15 NPCC collaborated with NERC Senior Management and the seven other Regional Entities in the development of a common strategic planning framework, the Electric Reliability Organization (ERO) Strategic Plan (November 13, 2014). Each of the NPCC 2015 corporate goals is presented in terms of its support of specific NERC goals identified in that framework to demonstrate complementary alignment. The 2015 goals are an expansion of the multitude of objectives outlined in the 2015 NPCC Business Plan and Budget, which was approved by the NPCC Board on June 26, 2014 and resubmitted to NERC on June 27, Threshold, Target and Stretch performance levels are identified. Attainment of a previous level is a pre-requisite for credit of attainment at a higher level Page 1

2 I Standards Weighting: 15% of Total 1. Clear, Reasonable, and Technically Sound 10% Threshold Target Stretch Promote and assist in the development of quality standards which establish reliability requirements for ensuring the Bulk Electric System is planned, operated, and maintained in a manner that minimizes risks of cascading failures, avoids damage to major equipment, or limits interruptions of bulk power supply. In support of ERO Enterprise Strategic Goal 1a: Standards are clear, responsive to reliability and security risks, practical to implement, and cost-effective In support of ERO Sub-Metric A: Percent of all board-approved standards meet quality criteria and results-based construct In support of ERO Sub-Metric B: Quality, up-to-date guidance developed for board-approved Reliability Standards related to risk elements to support riskbased compliance monitoring Develop NPCC for at least 85% of NERC Reliability Standards under development or revision, for quality criteria and content by Complete the development of NERC s Enhanced Periodic Review Template to assist in standards improvements identified in Standards Development Plan - by 6/15 Directly represent NPCC s reliability concerns in 75% of standards under development when there is a consensus RSC position by Develop NPCC for at least 90% of NERC Reliability Standards under development or revision, for quality criteria and content by Participate in 75% of periodic reviews of standards - by Directly represent NPCC s reliability concerns in 90% of standards under development when there is a consensus RSC position - by Develop NPCC for at least 95% of NERC Reliability Standards under development or revision, for quality criteria and content by Participate in 90% of periodic reviews of standards - by Directly represent NPCC s reliability concerns in 100% of standards under development when there is a consensus RSC position -by 2

3 2. Practical to Implement and Cost-Effective 5% Threshold Target Stretch Lead industry group for further development of NERC s Cost Effectiveness Analysis Procedure (CEAP), apply it on a broader basis and support ERO cost effective activities. Work with NERC Staff to consider further enhancements to the CEAP to propose addressing benefits of proposed standards for possible implementation in In support of ERO Enterprise Strategic Goal 1a: Standards are clear, responsive to reliability and security risks, practical to implement and cost effective. Participate in industry and NERC Staff groups to further develop cost effectiveness analysis - by 8/15 Participate in the completion of NERC s SDT training Modules - by II Compliance, Registration and Certification Weighting: 25% of total Participate in 100% of any cost effectiveness analysis efforts during standards development - by Participate in the completion of NERC s SDT training Modules - by 11/15 Work with RISC on 100% of their prestandard cost effectiveness activities - by 1. Registration - 5% Threshold Target Stretch Participate in the completion of NERC s SDT training Modules by 10/15 Complete Phase 1 Risk-Based Registration implementation after FERC approval. In support of Phase 2, conduct technical analysis that considers material impacts to reliability and material impacts among different functional categories of registered entities as a result of subsets of standards for TO,TOP, GO and GOP. In support of ERO Enterprise Goal 2: Be a strong enforcement authority, independent, without conflict of interest, objective, and fair and promote a culture of reliability excellence through risk-informed compliance monitoring. Complete and demonstrate full Phase 1 implementation - within nine months of FERC approval Complete Phase 2 analysis and present draft report summarizing results to NPCC Compliance Committee and NERC ECEMG - by 9/15 Complete and demonstrate full Phase 1 implementation - within six months of FERC approval Complete Phase 2 analysis and present draft report summarizing results to NPCC Compliance Committee and NERC ECEMG - by 8/15 Complete and demonstrate full Phase 1 implementation - within three months of FERC approval Complete Phase 2 analysis and present draft report summarizing results to NPCC Compliance Committee and NERC ECEMG - by 6/15 3

4 2. Promote a Culture of Compliance - 10% Threshold Target Stretch Develop Inherent Risk Assessment (IRA) and Internal Control Evaluation (ICE) templates based on registration type and impact. Conduct Internal Risk Assessments consistent with the NERC IRA Guidelines for all entities scheduled for audits and spot checks in Perform effective Internal Control Evaluations based on IRA output for registered entities scheduled for on-site audits. Offer entities expanded ICE based on overall registration and management practices. Design and implement a new Guided Self-Certification process In support of ERO Strategic Goal 3a: Promote a culture of compliance that supports reliability excellence within industry. Industry has effective procedures and programs to monitor, detect, correct, report, and prevent compliance, reliability, and security issues. Complete development of IRA and ICE templates - by 4/15 Conduct 42 IRAs and 8 ICEs - by Design and implement a guided selfcertification discovery method - by 3/15 Publish IRA and ICE templates to stakeholders - by 6/15 Design metrics to benchmark results of IRAs and ICEs - by 9/15 Benchmark results of the effectiveness of the guided self-certification discovery method - by Post generic from IRAs and ICEs performed - by Assess the value of maintaining the guided process in the future using a stakeholder survey - by 3. Enforcement - 10% Threshold Target Stretch Expand number of registered entities participating in self-logging program by establishing and applying consistent acceptance criteria that includes, but is not limited to, reviewing the IRA and in cases where an ICE was performed of a registered entity. Continue to reduce the triage time for the identification of processing methodologies for lower risk violations. In support of ERO Enterprise Strategic Goal 2: Be a strong enforcement authority, independent, without conflict of interest, objective, and fair and promote a culture of reliability excellence through risk-informed compliance monitoring. Establish and finalize criteria for registered entity inclusion in selflogging program - by 4/15 Average NPCC triage time will be less than 45 days - by Evaluate and identify 5 registered entities as eligible for participation in self-logging program - by 7/15 Average NPCC triage time will be less than 40 days - by Evaluate and identify 10 additional registered entities as eligible for participation in self logging program - by Average NPCC triage time will be less than 35 days - by 4

5 III Risks to Reliability Weighting; 40% of Total 1. BES Implementation - 5% Threshold Target Stretch Continue leadership of the Bulk Electric System (BES) Exception Process Working Group and consistently implement BES definition within NPCC. In support of ERO Enterprise Strategic Goal 2a: Continue to implement the BES definition. Participate in the activities of BES Exception Process Working Group through 2015 Analyze and provide NPCC on all submitted SDNs and ERs to NERC by Assess for comparability any reliability impacts resulting from the application and the implementation of the BES Definition by NPCC Canadian entities by Compare the NPCC electric power system against the approved BES SDNs and ERs to identify for completeness, and initiate ER(s) to correct any omissions by 2. Events Analysis and Accountability 10% Threshold Target Stretch Determine the frequency and severity of BPS events, excluding weather, flood, or earthquake. The objective is fewer, less severe events during ; no Category 4 and 5 events, and Category 1 3 events are trending down. Enhance risk analysis capability by integrating risk data sources, such as TADS, GADS, and relay misoperations. In support of NERC ERO Enterprise Strategic Goal 4b: Events and system performance are consistently analyzed for sequence, cause, and remediation to identify reliability risks and trends and lessons learned. Develop a program to integrate newly identified BES elements into the reporting of bulk power events and host a webinar addressing event reporting requirements by Correlate reliability data from TADS, GADS, relay misoperations, etc. by Assess all transmission events to identify gaps in NERC Reliability Standards and NPCC Criteria - by Extract data from different reliability data sources and integrate those to expand risk analysis capability by Perform what if analyses on lower Category events to identify and trend those near miss events which could escalate into a major system disturbance by Develop an enhanced NPCC process to perform risk analysis by 5

6 3. Reliability Physical and Cyber Security 10% Threshold Target Stretch Using NPCC expertise and NERC Guidance documents, develop a voluntary program of assessing registered entities transitioning to Physical Security standard CIP-014. Focus on the factors to include in the physical risk and vulnerability assessments for critical facilities. Target a cybersecurity outreach program on supporting registered entities efforts in transitioning to version 5 of the CIP standards. Develop and conduct two Physical Security Information Exchange sessions to facilitate NPCC s registered entities sharing of approaches towards enhanced physical security of their facilities. In support of ERO Strategic Goal 4c: ERO Enterprise supports system resiliency through industry situational awareness, physical security, and cybersecurity preparedness and provides independent reliability information to policy makers. Develop outreach program to advise registered entities on transition to CIP by 3/15 Develop outreach program to advise registered entities on transition to the CIP V5 standards - by 3/15 Engage Physical Security experts to present latest information to registered entities by 5/15 Complete CIP-014 outreach assessments for six (6) registered entities - by Complete CIP V5 outreach assessments for four (4) registered entities - by Prepare summary report, including input from informational session participants, for registered entities by 7/15 Post generic developed from CIP- 014 assessments to NPCC website - by Provide generic to assist registered entities transition to CIP V5 standards - by Conduct enhanced Physical Security Informational session by 11/15 4. Reliability Data - 5% Threshold Target Stretch Enhance reliability modelling accuracy within NPCC and Eastern Interconnection. In support of NERC ERO Enterprise Strategic Goal 4d: Reliability models and data accurately represent system behavior and are shared among stakeholder Complete the frequency response benchmark testing for all NPCC Eastern Interconnection generators larger than 400 MVA (about 50 total, approx. 36,000 MVA) by Complete the frequency response benchmark testing for 100 NPCC generators larger than 100 MVA and less than 400 MVA (out of a total of about 200 total approx. 50,000 MVA) by Complete the frequency response benchmark testing for 150 NPCC generators larger than 100 MVA and less than 400 MVA (out of a total of about 200 total approx. 50,000 MVA) by 6

7 5. Reliable Relay Operations - 5% Threshold Target Stretch Report on protection system misoperations and tract trends to determine causes and recommend possible remediation solutions. In support of NERC ERO Enterprise Metric 1: Reliability Results: Trend Misoperations related to industry actions recommended in 2014 to determine the effectiveness of the actions and develop metrics and benchmarks for relay Misoperation performance Provide the NPCC data needed to support the NERC requirements of reporting/ benchmarking protection system misoperations (including SPS) by Trend NPCC misoperations to identify causes and evaluate the effectiveness of associated corrective actions by Provide NPCC direction for the development of NERC protection system misoperation metrics by 6. Reliability Assessments - 5% Threshold Target Stretch Conduct expanded NPCC Overall Reliability Assessment. In support of ERO Enterprise Metric 1: Reliability Results: Evaluate impact of changing Resource Mix, complete the Essential Reliability Services Phase 2 effort, and conduct assessments for key reliability areas. Conduct an NPCC Overall Reliability Assessment to evaluate the steady state and dynamic performance of the NPCC Region, including the reliability impact of proposed major facilities in the adjacent Regions. Complete report and obtain RCC approval by Expand the NPCC Overall Reliability Assessment to include consideration of gaselectricity contingency interdependencies, as identified by the EIPC Gas-Electric System Interface analysis. Complete report and obtain RCC approval by Expand the NPCC Overall Reliability Assessment to also evaluate the reliability impact that may result from significant increases of distributed generation. Complete report and obtain RCC approval by 7

8 IV. Coordination and Collaboration. Weighting; 20% of Total 1. Incorporation of NPCC Policy Input 10% Threshold Target Stretch Develop and provide, from an international Regional Entity perspective, policy direction to NERC Board of Trustees, NERC senior management, stakeholders, other Regional Entities and industry executives. Influence financial policy to focus NERC on its core functions, and support common IT solutions across NERC/Regional Entities to defray costs and promote consistency. In support of ERO Strategic Goal 5 - Working with the Regional Entities and registered entities to ensure effective coordination, collaboration, and process improvements. Incorporation by NERC of at least 60% of NPCC Board approved policy input by Incorporation by NERC of at least 75% of NPCC Board approved policy input by Incorporation by NERC of at least 90% of NPCC Board approved policy input by 2. Financial 10% Threshold Target Stretch Develop annual business plan and budget that enables NPCC to fulfill its statutory duties and responsibilities as outlined in the Amended Regional Delegation Agreement and fully exercise its authorities. Develop a distinct criteria services division business plan and budget and allocate costs appropriately for regionally-specific functions and services among the ISO/BAAs. Smooth annual assessments to extent possible. Emphasize succession planning through employee development by providing opportunities for training in technical; management; communication; and team skills. Manage actual expenses within +/- budget amounts, excluding any significant unanticipated expenses to efficiently accomplish corporate goals and successfully achieve corporate objectives. In support of ERO Strategic Goal 5: The ERO Enterprise internal risks are understood and managed; ERO Enterprise processes are effective, efficient and continually improved. Reprioritize resources to achieve emerging requirements, operate within 103% of the initial 2015 Budget as well as any Board approved applications from operating cash reserves to Pension Trust for Plan termination by, if regulatory approvals of IRS and PBGC are timely. Reprioritize resources to achieve emerging requirements and operate within the initial 2015 Budget as well as applications approved by the Board from operating cash reserves to Pension Trust for Plan termination by, if regulatory approvals of IRS and PBGC are timely. Reprioritize resources to achieve emerging requirements, operate within 98% of the initial 2015 Budget as well as applications approved by the Board from operating cash reserves to Pension Trust for Plan termination by, if regulatory approvals of IRS and PBGC are timely. 8