NERC Organization Standards: What are they????
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1 NERC Organization Standards: What are they???? Northeast Power Coordinating Council General Meeting September 19, 2002 Stanley E. Kopman Director, Planning and Compliance Northeast Power Coordinating Council
2 Outline Brief History of NERC, Its Policies and Standards Why change? NERC Organization Standards Process Overview Role of NPCC Questions?
3 Abbreviations NOS - NERC Organization Standards WESM - Wholesale Electric Standards Model SAC- Standards Authorization Committee SAR - Standard Authorization Request SPM Standards Process Manager
4 History NERC formed in 1968 NERC Operating Policies Developed shortly after NERC s inception Constantly being reviewed and updated NERC Planning Standards Adopted by NERC Board of Trustees (BOT) in 1997 Field Tests, Not completed to date NERC Organization Standards Process Approved by NERC BOT in October, 2001
5 Why Change? Need to improve quality of Standards Need to develop Standards that don t unduly hamper open markets & innovative methods of operating markets Need to Open Standards development process to all who are interested
6 Why Change? (cont d) Contain numerous interrelated requirements - what s mandatory? Contain mix of how to and good utility practice information - overly prescriptive in places Developed for a different industry structure - vertically integrated utility Focused on reliability, sometimes at the expense of competitive markets
7 NOS Process Overview Purpose: Develop Set of Core Reliability Standards Material to Reliability Measurable NOS Process Description WESM Model Stakeholder-based Weighted Segment Voting Open participation Consensus-building NERC Functional Model
8 Reliability Principles 1. Plan and operate system reliably 2. Maintain frequency on schedule 3. Provide operating and planning information 4. Have emergency plans 5. Maintain communications facilities 6. Ensure personnel are qualified 7. Monitor and assess reliability for wide area
9 Market Interface Principles 1. Recognize that reliability is essential to our economy 2. Not provide unfair competitive advantage 3. Neither mandate nor prohibit specific market structure 4. Not preclude market solutions for compliance 5. Maintain data confidentiality or equal opportunity to access non-sensitive information
10 NOS Process Overview Submit SAR to to SAC Draft Standard Ballot Standard Post for for Comment Post for for Comment Board Adopts SAC Reevaluates SAR Trial Use Testing Authorize Drafting Standard Prepare to to Ballot
11 NOS Process Characteristics SAR Poses Question: Do we need a Standard? NOT THE STANDARD! Regional Differences Identified SAC Selects SAR Drafting Team Evaluates Initial SAR Posts for Public Comment Determines if SAR Moves Forward
12 NOS Process Characteristics (cont d) SPM Manages Process Liaison with SAC Standards Drafting Team Technically Proficient Appointed by SAC Recommended by SPM Limited in Size
13 NOS Process Characteristics (cont d) Trial Use Testing (May not be required) Recommended by NERC Compliance Director Working with Standards Drafting Team Authorized by SAC Balloting Proposed Standard (Use of WESM Model) Two Ballots Anticipated Registered Ballot Body Standard Ballot Pool Weighted- Sector Voting Adoption By NERC BOT
14 Elements of a SAR Supporting Documents Implementation Plan Regional Differences Related SARs & Standards Detailed Description Initial Data Required for Acceptance - Name & Contact Info - Purpose & Industry Need - Brief Description - Applicable Reliability Functions -Principles
15 Elements of a Standard Standard Compliance Administration Supporting Information Identification Number Title Effective Date and Status Purpose Who Must Comply Requirement(s) What not necessarily How Measure(s) Expected Performance or Outcomes Regional Differences
16 Elements of a Standard (cont.) Standard Compliance Administration Compliance Monitoring Process Levels of Non-Compliance Sanctions Supporting Information
17 Elements of a Standard (cont.) Interpretations Relationships Implementation Plan Standard Compliance Administration Supporting References Forms Reference Documents White Papers Supporting Information
18 WESM Model Being Incorporated into NOS Process Manual Weighted-segment voting Registered Ballot Pool Standard Ballot Pool 75% of Standard Ballot Pool for Quorum 2/3 Weighted Affirmative Vote Needed for Approval of Standard Re-defines role of NERC BOT, SAC, NERC Standing Committees
19 RTOs Stakeholder Segments and Ballot Body Registered Ballot Body Lg Cust Sm Cust LSEs Gov t Trans Owners Brokers, Marketers Trans Dep Utilities Elec Generators
20 Registered Ballot Body Registration Process Underway 296 Total Registrants to date All segments have registered members
21 SAC Under WESM Model 2 Representatives From Each Segments ISO, RTO, RRO Segment: One Representative from ISO/RTO One Representative from RRO Currently Being Formed
22 Bulk Electric System Adequacy Transmission Reliability and Resource Balance Recovery (Return to Normal Operations) Analysis Assess Transmission Future Needs and Develop Trans Plans Balance Resources and Demand Prepare for and Respond to Abnormal or Emergency Conditions Monitor and Analyze Disturbances, Event and Conditions Determine Facility Ratings, Op. Limits, & Transfer Capabilities Monitor and Assess Short Term Trans - Operate within Limits Prepare for and Respond to Blackout or Island Conditions Design, Install, and Coordinate Controls and Protection (G&T) Define Connection Requirements (GT&D) Coordinate Interchange Coordinate Trans. Outages, Operations and Reliability Initial SARS for Organization Standards
23 SAR Development 11 Total SARs Proposed All SARs Have Been Posted For Public Comment (Comment Period Ended May 3, 2002) One SAR (Balance Resources and Demand) Reviewed and Posted three times
24 SAR Development Three additional SAR Drafting Teams Formed: Monitor and Assess Short-term Transmission Reliability - Operate Within Limits Determine Facility Ratings, Operating Limits, and Transfer Capabilities Coordinate Interchange Remaining SAR Drafting Teams to Be Formed after New SAC is Created.
25 Role of NPCC Active Participation : in Development of Process in Development of Initial SARs On SAR and Standards Drafting Teams Provide Input During Public Comment Periods Identify Regional Differences
26 NERC Functional Model Compliance Monitor Service Functions Interchange Authority Reliability Authority Balancing Authority Trans Service Provider Planning Authority Planning & Operating Functions Generator Transmission Owner Load-Serving Entity Transmission Operator Purchase- Selling Entity Distribution Provider Merchant Functions
27 Questions?
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