Strategic Direction Outline

Transcription

1 Strategic Direction Outline December North 400 West, Suite 200 Salt Lake City, Utah

2 Strategic Direction Outline 1 Background This document outlines the Board s strategic direction for WECC. It was developed through a participative process with MAC and WIRAB leaderships, and shaped through stakeholder input obtained through an open comment period and two Town Hall meetings. It is intended to set strategic priorities for WECC staff and stakeholder committees that will be applicable over multiple businessplanning cycles. WECC s Role in the Western Interconnection WECC is a 501(c)(4) Social Welfare organization funded through Load Serving Entity (LSE) assessments authorized by the FERC under Section 215 of the Federal Power Act. WECC s purpose is to assure the public of the reliability and the security of the Western Interconnection s Bulk Electric System. WECC works with a broad community consisting of industry stakeholders and two advisory bodies the Member Advisory Committee (MAC) and the Western Interconnection Regional Advisory Body (WIRAB) to execute its mission. The Company is governed by a Board of Directors consisting of nine independent Directors and the Chief Executive Officer. WECC s value proposition is to enhance reliability and security through two measures. 1. Efficient and effective risk-based Compliance Monitoring and Enforcement of Reliability Standards: The majority of CMEP-related activities are driven by the approach and procedures developed by the ERO-Enterprise and governed by NERC and the FERC; WECC s principle regional strategic degrees of freedom lie in how it exercises discretion in its oversight activities. To that end, WECC will strive to be a fair and just regulator and exercise discretion in its regulatory activities consistent with the Company s Regulatory Philosophy as endorsed by the Board. WECC will focus on high-quality risk assessments and tailor its oversight activities accordingly, reducing administrative burdens on entities where possible while focusing on risks that could compromise the reliability or security of the Interconnection. WECC will further ensure Western interests are well represented in the Standards Development process at NERC, and focus its own regional standards development activities on meeting the unique conditions in the Western Interconnection.

3 Strategic Direction Outline 2 2. Informing the actions, practices, and decisions of industry participants, regulators, and policy-makers: WECC will focus on developing timely, influential, and high-quality assessments on key reliability issues and concerns. WECC will provide objective and independent analysis and information regarding reliability risk and security related challenges; WECC has no intention of lobbying or advocating for any particular policy outcomes. WECC will work collaboratively with stakeholders to identify risks and mitigation needs to Bulk Electric System (BES) reliability and security. Consistent with WECC s core delegated responsibilities (Standards Development and Compliance Monitoring and Enforcement), as well as its delegation-related activities (i.e., Reliability Assessment and Performance Analysis, Situation Awareness, and Training and Education), WECC will continue to engage with its staff and committees in two areas critical to supporting reliability. 1. Operations and Operating Practices While WECC is not an operator of the BES, it does conduct important efforts related to operating-practices aimed at improving the reliability and security of the Bulk Electric System. WECC identifies and shares best operational practices to improve the reliability and security of the BES. WECC conducts thorough event analyses to identify and share lessons learned from the BES events and near misses, as appropriate. 2. Transmission Planning Support and Coordination WECC provides guidance and support to Western entities engaged in Transmission Planning and Coordination, including stakeholders who provide oversight of those plans. WECC undertakes focused reliability assessment work, including scenario and sensitivity analyses, as well as adequacy and stability analyses. WECC develops and provides the necessary models, tools, and datasets for its own use in conducting reliability assessments and for the use of the Region s transmission planning and operating entities (consistent with WECC s designation as the MOD-032 Interconnection-wide Model Builder). WECC does not intend to assume any FERC Order 1000 Transmission Planning-related responsibilities, nor take on any NERC registered planning functions (e.g., Planning Coordination).

4 Strategic Direction Outline 3 Strategic Priorities The Board recognizes that the electric industry is undergoing profound changes nationally and here in the West, and that many institutions (e.g., NERC, Department of Energy) are involved in furthering the understanding of these changes. While WECC will not duplicate the efforts of other qualified entities, the Board does believe WECC should take initiative to address those issues where the impact to the Western Interconnection s reliability are less well understood (e.g., preservation of Essential Reliability Services in the context of rapid renewable energy deployment) or where WECC and its committees are positioned to make a significant contribution to Western reliability and security (e.g., operating practices). Therefore, in addition to its baseload work supporting ERO-Enterprise-driven programs, the Board has established the following strategic priorities for WECC: Monitor progress as proposals are developed for structural changes in the West (e.g., formation of one or more multi-state Independent System Operators) and be prepared to evaluate potential impacts on reliability (e.g., long-term resource adequacy, inadvertent flows, seams issues). Assess the reliability implications of the ongoing evolution of load composition and resource mix, and implications for fuel security, resource and transmission adequacy, and BES stability, such as: 1. expansion of variable energy resources; 2. issues related to the increasing dependence on weather dependent fuels and natural gas and associated infrastructure; or 3. preservation of Essential Reliability Services as traditional resources decline. WECC is not a resource planner; its role is to assess reliability implications of resource decisions and identify concerns for the region s resource planners and authorities to address. Identify key vulnerability issues and work with stakeholders to address them (e.g., physical and cyber security, situation awareness and coordination across neighboring systems, human performance, equipment misoperations/failures). Maximize sharing of operating and system data (within agreed parameters), and insights from Events Analysis, including near-misses, to: 1. deepen understanding of reliability issues; 2. promote operational excellence amongst the region s industry participants; 3. share best practices/lessons learned in a timely manner; and

5 Strategic Direction Outline 4 4. expand capabilities and resources applied to critical reliability issues by using external subject matter experts. Focus reliability assessment efforts on identifying the impacts and possible mitigation efforts surrounding a handful of future industry evolution scenarios or high-impact/low-probability events (e.g., Clean Power Plan, natural gas pipeline failure). The Board believes these strategic priorities will be applicable over multiple planning cycles. The specific initiatives taken on by WECC to address these topics will be developed in WECC s operating planning process and in its annual Business Plan and Budget with Board oversight. Organizational Priorities The Board also affirms its own role in setting strategic direction and providing oversight consistent with its skills and capabilities and the role of the WECC CEO and Executive Team in leading the Company and managing its day-to-day operations. To that end, two organizational priorities are also of strategic importance. 1. Ensuring WECC has the capacity (i.e., budget, staff, access to subject matter expertise) to deliver on its reliability and security mission. 2. Continuous improvement of the effectiveness and efficiency of WECC s business processes as well as the efficiency and effectiveness of its stakeholder committees. These Strategic Priorities, combined with other ERO-delegated activities, will guide the development of WECC s detailed operating and business plans in the coming years. In addition, the Board expects the various stakeholder committees to align their work with these priorities. * * *