ERO Business Planning and Budgeting Process

Transcription

1 ERO Business Planning and Budgeting Process Michael Walker, Senior Vice President and Chief Financial and Administrative Officer Member Representatives Committee August 14, 2013

2 RISC formed NERC & REs Update Strategic Plan Draft 215 Criteria Posted for comment Recap of 2014 Business Plan and Budget Development 215 Criteria filed Draft Strategic Plan posted 215 Criteria approved 2014 NERC and RE BP&Bs approval Q Q Q Q Q MRC BP&B Input Group formed Board Resolution Standard Reform Initiative NERC and REs collaborate on development of BP&Bs April May June July Meeting with Trades and MRC Input Group Strategic Plan approved FAC Webinar 1 st Draft NERC and RE BP&Bs posted FAC Webinar Coordination meeting NERC and RE Board Chairs and CEOs 2nd Draft NERC and RE BP&Bs posted Review with Trades, MRC Input Group Review with Trades and MRC Input Group 2 RELIABILITY ACCOUNTABILITY

3 2015 Business Plan and Budget Development Q4, 2013 NERC and Regional Entity Board Chairs, Vice Chairs and Chief Executive Officers cooperative planning session NERC and Regional Executives review goals and objectives for planning period and 2015 priorities Common framework of ERO Enterprise metrics Q1, ERO goals, objectives and performance metrics presented to NERC Board of Trustees for review and approval NERC and Regional Entity staffs commence work on 2015 BP&Bs 3 RELIABILITY ACCOUNTABILITY

4 2015 Business Plan and Budget Development Q1, 2014 Meeting with trades to seek input on 2015 BP&B Q2, 2014 First draft of NERC and Regional Entities 2015 BP&Bs posted for comment Remaining process through FERC filing similar to RELIABILITY ACCOUNTABILITY

5 ERO Priorities RISC Updates and Recommendations Chris Schwab RISC Chair Vice President and Chief Risk Officer, Dominion August 14, 2013

6 Summary of Activities and Findings Gap Analysis and Discussion All-Hazards Planning Collaboration Opportunities Adaptation and Planning for Change 2 RELIABILITY ACCOUNTABILITY

7 Key Discussion Items Industry is very focused on learning from experience All hazards planning is the foundation for reliability and for resiliency of the grid Increased, open, timely information sharing can only flourish in an atmosphere where that information will not lead to threat of enforcement Collaboration with best practice groups and other stakeholder bodies is vital to ensure that industry resources are used efficiently RISC priorities need to integrate into NERC Business Planning and Resource Allocation 3 RELIABILITY ACCOUNTABILITY

8 Results High-Priority Issues Cyber Attack Workforce Capability and Human Error Protection Systems Monitoring and Situational Awareness Adaptation and Planning for Change Well-scoped control activities underway and should continue Rapid pace of change underlies a new highpriority risk (Adaptation and Planning for Change) that warrants additional research 4 RELIABILITY ACCOUNTABILITY

9 Results Medium-Priority Issues Operational Modeling and Model Inputs Equipment Maintenance and Management Coordinated Attack on Multiple Facilities Generator Availability Well-scoped control activities underway and should continue Additional research needed in Operational Modeling and Model Inputs 5 RELIABILITY ACCOUNTABILITY

10 Results Low-Priority Issues Geomagnetic Disturbance Transmission Right-of-Way Extreme Weather/Acts of Nature Localized Physical Attack Electromagnetic Pulse Pandemic Well controlled or currently addressed by all-hazards planning 6 RELIABILITY ACCOUNTABILITY

11 Q4 Reliability Risk Control Process Q1 NOVEMBER Committee Risk Control Project Workshops DECEMBER/JANUARY BP&B Input Development (Committees and Staff) FEBRUARY 1. LTRA Presentation 2. SoR Recap 3. Leadership Summit Recap 4. Prioritization Update Kickoff OCTOBER Leadership Summit DEFINE SEPTEMBER Committee Gap Analyses Prioritization Update Activities as Needed AUGUST Prioritization Updates to Board Q3 7 JULY Finalize Prioritization Updates JUNE SoR Presentation Q2 RELIABILITY ACCOUNTABILITY

12 Reliability Risk Control Process Next Steps October 24, Washington, DC RISC 2013 Leadership Summit Interactive Panel Discussions Operations Challenges Infrastructure Protection from Malicious Attack High Impact Low Frequency Events Planning for Change Modeling and Analysis of System Behavior General Discussion 8 RELIABILITY ACCOUNTABILITY

13 Recommendations Continue collaboration between NERC, the RISC, and Standing Committee leadership to develop a data-driven reliability risk strategy development process that integrates with overall electric reliability organization (ERO) planning (currently being developed as the Reliability Risk Control Process ). Continue existing NERC efforts to control the risk associated with the high- and medium-priority issues, as the efforts are well aligned and appropriately scoped relative to the priorities assigned. 9 RELIABILITY ACCOUNTABILITY

14 Recommendations Continue collaboration between NERC and the Technical Committees to develop measures for use in determining the success and ongoing performance of those existing risk control efforts. A new high-priority issue based on consolidating several other related issues (entitled Adaptation and Planning for Change ) should be processed through the post-prioritization steps of the Reliability Risk Control Process. Additionally, the set of issues contained in Operational Modeling and Model Inputs should also be processed through the post-prioritization steps of the Reliability Risk Control Process. 10 RELIABILITY ACCOUNTABILITY

15 Requested Action Accept the ERO Priorities: RISC Updates and Recommendations report Endorse the recommendations in the report 11 RELIABILITY ACCOUNTABILITY

16 12 RELIABILITY ACCOUNTABILITY

17 2013 Long-Term Reliability Assessment: Emerging Issues and Potential Special Assessment Candidates Thomas Burgess, Vice President and Director, Reliability Assessment and Performance Analysis Member Representatives Committee Meeting August 14, 2013

18 Background Each year, the NERC Planning Committee identifies and assesses the impacts of key issues, trends, and risks that may affect Bulk-Power System (BPS) reliability over the next 10 years Reference case provides the industry plan Emerging issue assessment offers unique insights to shape improvements to long-term reliability strategy Determine methods to enhance planning and operations to accommodate an evolving electric system 2 RELIABILITY ACCOUNTABILITY

19 Risk Assessment of Emerging Issues Emerging issues is critical driver for: Assessment focus Scenario analysis and special assessments Risk ranking based on likelihood & severity: Industry experts to identify emerging issues Scenarios are selected from the resulting prioritization Platform to inform on technical considerations as input to policy debates Provide information to the RISC as technical input to risk prioritization and overall risk strategy 3 RELIABILITY ACCOUNTABILITY

20 Long-Term Reliability Issues The NERC Planning Committee has identified the following long-term challenges: Continued Integration of Variable Generation Increased Dependence on Natural Gas for Electric Power Fossil-Fired Retirements and Coordination of Outages for Environmental Control Retrofits Wide-Scale Nuclear Generation Retirements and/or Long-Term Outages Increased Use and Role of Demand-Side Management Increasing Uncertainty in Load Forecasts Transmission Siting, Permitting, and other Right-of-Way Issues Aging Infrastructure Others? 4 RELIABILITY ACCOUNTABILITY

21 Contact Survey was sent to the following committees: Member Representatives Committee Planning Committee Operating Committee Comments, questions, or feedback: 2013 Long-Term Reliability Assessment due out in late October Opportunities to comment on draft report in early October 5 RELIABILITY ACCOUNTABILITY

22 6 RELIABILITY ACCOUNTABILITY