SOL Methodology Revision Kick-off

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1 SOL Methodology Revision Kick-off Welcome - the webinar will begin shortly All participants will be muted during the webinar Peak will unmute phones at the end to take questions Peak will be recording the webinar Thank you in advance for your participation! 1

2 2016 SOL Methodology Revisions Kick-off Webinar May 2, 2016 Vic Howell Manager, Operations Engineering Support

3 Webinar Objectives 3 FERC Settlement Minor revision changes Goals for Major Revision o Review foundational principles Timeline Related NERC Project Discuss project approach Next Steps

4 Project Kick-off Two SOL Methodology revisions in 2016 Minor revision in May o Addresses specific issues in FERC Settlement o Address concerns related to WECC Path Rating caps during emergency operations o Immediate effective date Major revision in October o April 1, 2017 effective date 4

5 Minor Revision Minor revision in May with immediate effective date to address specific issues in FERC settlement (paragraph 41): Peak shall not exclude all load loss due to RAS/SPS actions for the purpose of determining whether an IROL exists, because to do so would have allowed the Coachella Valley transformers to elude recognition as an IROL; and Peak shall justify the reason for the 1,000 MW cut-off for SOLs to be IROLs or establish a cut-off with technical justification. 5

6 Minor Revision Minimal changes that are expected to have little to no impact on TOPs o Remove language related to load loss due to RAS/SPS action (item #51 in current SOL Methodology) o Clarify the 1000 MW threshold for IROL identification o Add provisions for operating above WECC Path Ratings during anticipated emergency conditions Review changes 6

7 Major Revision Major revision in October with April 1, 2017 effective date: Incorporation of NERC SOL White Paper concepts Better alignment with new TOP & IRO standards Implementation of Path Operator Task Force Recommendation 7

8 NERC SOL Whitepaper NERC SOL White Paper Link Industry effort to promote clarity, consistency, and a common understanding of the concepts associated with establishing SOLs, exceeding SOLs, and usage of Operating Plans to address SOL exceedance Takes into account the time-based nature of Facility Ratings Served as a conceptual basis for revisions in the latest FERC approved TOP/IRO Standards 8

9 NERC SOL Whitepaper 9 Some have interpreted the language in approved FAC-011-2, Requirement R2 to imply that the objective is to perform prior studies to determine a specific MW flow value (SOL) that ensures operation within the criteria specified in approved FAC , Requirement R2 sub-requirements, the assumption being that if the system is operated within this pre-determined SOL value, then all of the pre- and post-contingency requirements described in approved FAC-011-2, Requirement R2 will be met. The SDT believes this approach may not capture the complete intent of the SOL concept within approved FAC-011-2, which is both: 1. Know the Facility Ratings, voltage limits, transient Stability limits, and voltage Stability limits, and 2. Ensure that they are all observed in both the pre- and post-contingency state by performing a Real-time Assessment.

10 NERC SOL Whitepaper It is important to distinguish operating practices and strategies from the SOL itself. How an entity remains within these SOLs can vary depending on the planning strategies, operating practices, and mechanisms employed by that entity. For example, one Transmission Operator may utilize line outage distribution factors or other similar calculations as a mechanism to ensure SOLs are not exceeded, while another may utilize advanced network applications to achieve the same reliability objective 10

11 TOP/IRO Standards In the Operations Planning time horizon: Have an Operational Planning Analysis (OPA) to identify SOL exceedances (TOP R1, IRO R1) Have Operating Plan(s) to address potential SOL exceedances identified in the OPA (TOP R2, IRO R2) Notify entities identified in the Operating Plan(s) to their role in those plan(s) (TOP R3, IRO R3) Provide its Operating Plan(s) for next-day operations to its RC (TOP R6) 11

12 TOP/IRO Standards In the Real-time time horizon: Ensure that a Real-time Assessment (RTA) is performed at least once every 30 minutes (TOP R13, IRO R4) Initiate its Operating Plan to mitigate an SOL exceedance identified as part of its Real-time monitoring or RTA (TOP R14, IRO R5 RC to notify) 12

13 POTF Recommendation Approved by WECC Standing Committees in October 2014 Three implementation aspects: 13 o Retire TOP-007-WECC-1a o Review historical Path Operator responsibilities for each WECC Path o Revise the RC s SOL Methodology POTF => POITF o Path Operator Task Force (POTF) disbanded o Path Operator Implementation Task Force (POITF) created to implement POTF recommendation

14 POTF Recommendation Basic Principle Path Rating/SOL 14 Path TTC: Not an SOL Respects SOLs Respects three-phase rating process, commercial issues, contracts, and allocations SOLs: Facility Ratings Voltage limits Stability limits These are observed preand post-contingency This decoupling requires a change in study practices to identify stability limits

15 Total Transfer Capability (TTC) Definition from NERC Glossary of Terms: The amount of electric power that can be moved or transferred reliably from one area to another area of the interconnected transmission systems by way of all transmission lines (or paths) between those areas under specified system conditions. 15

16 POTF Foundational Concepts Distinguish Total Transfer Capability (TTC) from System Operating Limit (SOL) SOLs are Facility Ratings, voltage limits, and stability limits Facility Ratings and voltage limits are known nothing to establish through studies Need to make sure these are not exceeded in the pre- and post-contingency state many ways of doing that No instability? No uniquely monitored Path SOL 16

17 What about stability limits? Need to determine cascading and instability risks and establish stability limits Total Transfer Capability studies first reliability limitation System must be stressed further to identify cascading and instability risks How much further? WECC OC-approved stressing methodology intended to address this question 17

18 Stressing Methodology Summary Not a one-size-fits-all prescriptive method TOPs have the responsibility to determine how far to stress their system to identify practical and realistic instability risks Methodology provides guidelines to assist TOPs in making that decision Peak will incorporate the WECC OCapproved stressing methodology into its SOL Methodology 18

19 What about IROLs? Improved clarity and consistency Types of analysis and methods Assumptions Allow for real-time calculations Address localized, contained instability that does not warrant IROL establishment 19

20 Timeline Milestone Date Peak to issue minor SOL Methodology with immediate effective date Peak to issue major revision of SOL Methodology Expected effective date of retirement of TOP- 007-WECC-1a (based on FERC filing) 5/ /2016 4/1/2017 Major SOL Methodology revision effective date 4/1/2017 New TOP/IRO standards effective date 4/1/

21 Related NERC Project Project Establish and Communicate System Operating Limits Objectives per the SAR are: 21 o To address issues with establishing and communicating SOLs and Interconnection Reliability Operating Limits (IROLs) o To enhance consistency with Transmission Operations (TOP) and Interconnection Reliability Operations (IRO) standards o To eliminate planning horizon SOL requirements (in FAC-010 and FAC-014) that are redundant with TPL requirements SDT Direction well aligned with Peak s SOL Methodology Revision

22 Project Approach Same approach as IRO-017 Outage Coordination project Stakeholder list two representatives from each TOP identified Small team of to collaborate on revision development Stakeholder Engagement Plan Project page on peakrc.com (future) 22

23 Future Project Page on Peakrc.com 23 SOL Methodology Revision Page link will be here

24 Stakeholder Engagement Plan Peak s expects the [stakeholder] contacts to commit to being engaged during the development and implementation of the SOL Methodology revision as well as to serve as the contact(s) responsible for internal project status communication within their organizations. It is expected that Peak will host webinars about once or twice a month with the stakeholders. 24

25 Next Steps Peak to formally issue minor revision this week Peak to finalize small team members Peak to create project webpage and post docs Stakeholders encouraged to read: 25 o NERC SOL White Paper o POTF Recommendation o POITF Documents

26 Contact Info will be used as the primary communication method for this project For further information, please contact Vic Howell by or phone ( ) 26

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