Agenda Technology Committee Conference Call July 27, 2010 2:00-3:00 p.m. EDT Dial-In: 888-612-1053 (No Code Needed) Introductions and Chairman s Remarks NERC Antitrust Compliance Guidelines *1. Minutes May 4, 2010 *2. Reliability Tools Update Discussion (David Hilt and Lynn Costantini) 3. Operating Committee Chair Report on Tools-Related Activities Discussion (Sam Holeman) *4. Smart Grid Task Force Update Discussion (Mark Lauby) *5. Review of Technology Committee Mandate Discussion (Gerry Cauley) 6. Future Meetings November 3, 2010 Atlanta, GA *Background material included. 116-390 Village Blvd. Princeton, NJ 08540 609.452.8060 www.nerc.com
Antitrust Compliance Guidelines I. General It is NERC s policy and practice to obey the antitrust laws and to avoid all conduct that unreasonably restrains competition. This policy requires the avoidance of any conduct that violates, or that might appear to violate, the antitrust laws. Among other things, the antitrust laws forbid any agreement between or among competitors regarding prices, availability of service, product design, terms of sale, division of markets, allocation of customers or any other activity that unreasonably restrains competition. It is the responsibility of every NERC participant and employee who may in any way affect NERC s compliance with the antitrust laws to carry out this commitment. Antitrust laws are complex and subject to court interpretation that can vary over time and from one court to another. The purpose of these guidelines is to alert NERC participants and employees to potential antitrust problems and to set forth policies to be followed with respect to activities that may involve antitrust considerations. In some instances, the NERC policy contained in these guidelines is stricter than the applicable antitrust laws. Any NERC participant or employee who is uncertain about the legal ramifications of a particular course of conduct or who has doubts or concerns about whether NERC s antitrust compliance policy is implicated in any situation should consult NERC s General Counsel immediately. II. Prohibited Activities Participants in NERC activities (including those of its committees and subgroups) should refrain from the following when acting in their capacity as participants in NERC activities (e.g., at NERC meetings, conference calls and in informal discussions): Discussions involving pricing information, especially margin (profit) and internal cost information and participants expectations as to their future prices or internal costs. Discussions of a participant s marketing strategies. Discussions regarding how customers and geographical areas are to be divided among competitors. 116-390 Village Blvd. Princeton, NJ 08540 609.452.8060 www.nerc.com 1
Discussions concerning the exclusion of competitors from markets. Discussions concerning boycotting or group refusals to deal with competitors, vendors or suppliers. Any other matters that do not clearly fall within these guidelines should be reviewed with NERC s General Counsel before being discussed. III. Activities That Are Permitted From time to time decisions or actions of NERC (including those of its committees and subgroups) may have a negative impact on particular entities and thus in that sense adversely impact competition. Decisions and actions by NERC (including its committees and subgroups) should only be undertaken for the purpose of promoting and maintaining the reliability and adequacy of the bulk power system. If you do not have a legitimate purpose consistent with this objective for discussing a matter, please refrain from discussing the matter during NERC meetings and in other NERC-related communications. You should also ensure that NERC procedures, including those set forth in NERC s Certificate of Incorporation, Bylaws, and Rules of Procedure are followed in conducting NERC business. In addition, all discussions in NERC meetings and other NERC-related communications should be within the scope of the mandate for or assignment to the particular NERC committee or subgroup, as well as within the scope of the published agenda for the meeting. No decisions should be made nor any actions taken in NERC activities for the purpose of giving an industry participant or group of participants a competitive advantage over other participants. In particular, decisions with respect to setting, revising, or assessing compliance with NERC reliability standards should not be influenced by anti-competitive motivations. Subject to the foregoing restrictions, participants in NERC activities may discuss: Reliability matters relating to the bulk power system, including operation and planning matters such as establishing or revising reliability standards, special operating procedures, operating transfer capabilities, and plans for new facilities. Matters relating to the impact of reliability standards for the bulk power system on electricity markets, and the impact of electricity market operations on the reliability of the bulk power system. Proposed filings or other communications with state or federal regulatory authorities or other governmental entities. Matters relating to the internal governance, management and operation of NERC, such as nominations for vacant committee positions, budgeting and assessments, and employment matters; and procedural matters such as planning and scheduling meetings. Antitrust Compliance Guidelines 2
Item 2.a. Tools Update: North American SynchroPhasor Initiative (NASPI) Board of Trustees Technology Committee July 27, 2010 David W. Hilt
NAPSI Meeting June 2010 Focus on international efforts with SynchroPhasors Technology is moving forward rapidly Moving from monitoring space to control space Special protection systems to increase system capability Low frequency oscillation control Intelligent or adaptive islanding applications
North American Activity NERC funding of Grid Protection Alliance Maintain Open Source Code for Phasor Data Concentrators (PDCs) Maintain Phasor Measuring Unit (PMU) Registry Necessary for implementation of wide area SynchroPhasor applications Three Phasor Data Concentrators to be implemented
Department of Energy Advanced SynchroPhasor Research Projects $4.3 million awarded to four, three-year projects SynchroPhasor Adaptive Relaying SynchroPhasor Based State Estimator with Adaptive Islanding Real Time Distributed State Estimator for On-Line Generator Parameter Identification and Wide Area Stability Analysis Wide Area Real Time Visualization with On-Line Identification of System Events with Instant Replay
Smart Grid Investment Grant Awards Awardees installing PMUs and phasor data communications systems Florida Power and Light Midwest Independent System Operator Midwest Energy, Inc. Entergy ISO New England, Inc. Duke Energy Carolinas New York Independent System Operator PJM Interconnection Western Electric Coordinating Council American Transmission Company (2 grants) Center for Commercializing Energy Technology (ERCOT) Full list available at DOE (www.energy.gov/recovery/smartgrid.../sgigselections_state.pdf)
SynchroPhasor Projects DOE Funding Source U.S. Department of Energy
Vendor Community Over $8 million flowing into SynchroPhasor technology from DOE Vendors are developing technology and tools PMUs improving performance and interchangeability with higher sampling rates Data Concentrator Software regional (enhancing open source PDC) and local PDCs Many new planning, operations, and market applications using phasor data Improving operator interfaces, including displays Incorporating phasor data into EMS and State Estimation Technology
NERC Focus Infrastructure Getting multiple regional PDC data hubs established in each interconnection Assuring secure, production-quality phasor data communication networks Developing tools to accelerate phasor deployment, including PMU Registry, PDC Test Bench, and OpenPDC Facilitating research into what phasor data tells us about grid conditions Phasor data sharing
Questions
Item 2.b. Situation Awareness FERC,NERC and Regions (SAFNR): Update Board of Trustees Technology Committee July 27, 2010 Lynn P. Costantini
Situation Awareness Monitor conditions on the bulk power system Maintain an awareness of situations that impact or have the potential to impact reliable operations Understand conditions before, during, and after an event
Background June 2009: SAFNR I implemented; limited to best effort to provide initial situation awareness capability Common data/distributed architecture RC-specific displays and security models September 2009: SAFNR team defined next steps Perform needs assessment Document additional data, architecture, display requirements Prepare a budget and resource plan for 2011 November 2009: compliance filing submitted to FERC March 2010: SAFNR II activities included in NERC s 2011 Business Plan and Budget
SAFNR II: Principles Reliability focused Needs driven Responsive to FERC requirements Secure Cost effective
SAFNR II: FERC Needs Common displays are highest priority Second order wants include: Longer data retention period for historical analyses Drill-down to one-line diagrams (345 kv and above) Generator and transmission line outages Weather and other overlays Satisfied with phased approach to deliver improvements over time
SAFNR II: NERC/Region Needs Assessment in progress Initial requirements include: All RCs participate Provides North American view with drill-down capabilities and pan and zoom functionality Suite of tools is acceptable
SAFNR II: Rough Timeline Reconvene the SAFNR Project Team (FERC/NERC/Regions/RCs) (March 2010) Perform needs assessment (April-June 2010) Develop requirements document for SAFNR II (July-Sept 2010) Identify vendors to meet SAFNR II requirements (Oct.-Dec. 2010) Finalize budget (Nov.-Dec. 2010) Solicit Request for Proposals (January 2011) Select vendor (February 2011) Initiate SAFNR II development (March-April 2011) Implement (June 2011)
SAFNR II: Rough Budget Estimate included in NERC s 2011Business Plan and Budget Final needs/requirements will drive final technical design and budget Investigating off-the-shelf display products that may be customized to meet specific SAFNR needs Limiting Reliability Coordinators expense to data collection
Item 2.c. Reliability Tools Update: TSIN Board of Trustees Technology Committee July 27, 2010 Lynn P. Costantini
TSIN Registry Web-based software that enables industry participants to register information required to access OASIS nodes and to document information necessary to participate in the industry s electronic tagging process Key outputs: Master Registry Scheduling Desks and tagging service URLs Sources and Sinks
History 1996: FERC issues Order 889, Open Access Same-Time Information System and Standards of Conduct and mandates creation of TSIN registry 1997: NERC places TSIN registry in service 2008: BOT TC directs staff to identify an alternative sponsor 2009: NAESB agrees to TSIN transfer; with Joint Interchange Scheduling Working Group, prepares requirements documentation 2010: NAESB releases RFP for Electric Industry Registry (EIR)Administrator
EIR: Features and Functions Completely new interface design and back-end architecture Enhanced functionality to support registration of and association between physical, commercial, and reliability topology components Mapping commercial service points to network elements/flowgates Validating E-tag scheduling paths Baked-in Security 128-bit SSL encryption X.509 digital certificates Mandatory, auditable compliance to CIP Standards
Current Status NAESB/NERC evaluating responses to RFP Planned deployment of EIR by year-end 2010 Required 6-month parallel run with TSIN NAESB and NERC working closely to ensure smooth transition
Agenda Item 4 Technology Committee July 27, 2010 Update on Smart Grid Task Force Action Required None Background On July 30, 2009, the Planning Committee initiated the Smart Grid Task Force to examine bulk power system reliability impacts from integrating smart grid technology, identify existing NERC Reliability Standards that apply to smart grid elements, and make recommendations for further study and standard enhancement. Over 100 members joined this task force, creating a draft report provided to the NERC standing committees at their June 2010 meeting, entitled The Smart Grid and Reliability for comment. The following concepts are developed in this report: The smart grid concept is expansive with many current energy policy initiatives, but not all industry experts agree on its definition. Smart grid is developing at many levels in North America. Smart grid integration will impact bulk power system planning, design, and operations. Integration of smart grid must encompass cyber considerations, including the IT and control system interface, and dynamic system behavior. Research and development will be necessary to reliably and securely integrate smart grid into the existing system and may yield new reliability benefits. NERC Reliability Standards are applicable to the bulk power system aspects of smart grid, representing a baseline requirement for reliability. Enhancement and new standards may be required as more experience is gained. NERC and industry should monitor smart grid developments and remain engaged with ongoing smart grid industry efforts (Federal/State/Provincial efforts, ISO/RTO, IEEE/IEC, etc.) Comments from standing committees and stakeholders will be incorporated into the report and a final version will be submitted to the PC for approval in September 2010.
Review of Technology Committee Mandate Agenda Item 5 Technology Committee July 27, 2010 Action Required None Background NERC President and CEO Gerry Cauley will lead a discussion of the BOT TC responsibilities under its current mandate and potential opportunities for realignment to meet emerging needs of the Corporation.
Item 5 Attachment A Board of Trustees Technology Committee Mandate Approved by Board of Trustees: November 5, 2009 1. The Technology Committee (TC) shall be composed of not less than three and not more than six Trustees. 2. The members of the TC shall be appointed or reappointed by the Board at the regular Meeting of the Board immediately following each Annual Meeting of the Member Representatives Committee. Each member of the TC shall continue to be a member thereof until his/her successor is appointed, unless he/she shall resign or be removed or shall cease to be a Trustee of the Corporation. Where a vacancy occurs at any time in the membership of the TC, it may be filled by the Board of Trustees. 3. The Board of Trustees or, in the event of their failure to do so, the members of the TC, shall appoint a Chair from among their members. The TC shall also appoint a Secretary who need not be a Trustee. 4. The place of meeting of the TC and the procedures at such meeting shall be the same as for regular Board meetings of the Corporation, or as determined by the members of the TC, provided that: (a) A quorum for meetings shall be a majority of the number of members of the TC. (b) The TC shall meet as required and at least twice a year. 5. The compensation of the members of the TC and Chair shall be the same as established by the Board for its other committees. 6. The objectives of the TC are as follows: (a) To provide the board with a thorough evaluation of and recommendations for action on proposed NERC projects that employ new technology. Such projects could include, but not be limited to: real-time system monitoring and visualization tools, reliability performance analysis tools, information and data exchange networks, reliability performance data bases, etc. (b) To provide advice and recommendations to the board on any technical issue referred to it by the board. 116-390 Village Blvd. Princeton, NJ 08540 609.452.8060 www.nerc.com
7. To achieve its objectives, the TC shall: (a) Review all projects that employ new technology that may be proposed from time to time by the Corporation s staff or one of the Corporation s committees; (b) Thoroughly evaluate all such proposals from both technical and financial standpoints; (c) Make recommendations, as appropriate, to the board, including recommendations to include such projects in the NERC business plan and budget; (d) Respond to the board s requests for advice and recommendations on any technical issues referred to it by the board. (e) Review with management the corporation s computer systems, including procedures to keep the systems secure and contingency plans developed to deal with possible computer failures. (f) Provide oversight of NERC s implementation of the North American SynchroPhasor Project; (g) Review this mandate on an annual basis and recommend to the board Corporate Governance and Human Resources Committee any changes to it that the TC considers advisable; (h) Complete a self-assessment annually to determine how effectively the TC is meeting its responsibilities; and (i) Perform such other functions as may be delegated from time to time by the board. Board of Trustees Technology Committee Mandate Approved by Board of Trustees: November 5, 2009 2